CASE STUDY ABC LIMITED

Headquartered in India, ABC Limited is a company that deals with financial products. The Organization culture is very open, informal and transparent. With branches all over India, the company is growing by leaps and bound in the last 5 years. The company has been blessed with a single digit attrition rate up to the last financial year. This year with the assumption of the markets are opening up, the organization has been witnessing an exodus of people parting ways with the organization. Introduction: The sustenance of the growth of economy is the primary factor for the development of the India's financial sector. The sector of finance is passing through a rapid phase of alteration. With a huge Competition in financial sector, ABC Limited too facing a lot of challenges with respect to the expectation of global economy, needs of the individual has raised to the sky and the same is applied to the other Industry of our nation. The financial sector took around 3 years to gain the speed after Recession. Now the industry is geared up. Competitors: With the growth of economy, competitors have increased in the financial sector. Huge Giants of Foreign nations are raising their foot steps to gain the profit ratio in India as well. Even the Local Giants want to spread across the nation to mark their profits at the highest peak. Challenges: ABC Limited has few Challenges in current scenario to handle the cost profit ratio. Any Organization in todays Indian Market will be facing these major challenges. Few of them are Attrition Talent Acquisition Talent Management User Friendly work atmosphere. Attrition plays one of the major challenge in current scenario for ABC Limited Attrition is dependent on the below points. Compensation Relationship with Supervisor Friendly Environment

In order to control attrition and employ effective retention measures in ABC Limited we need to find answers to the following questions:
i) Why people leave?

In any industry the work can often be monotonous and opportunities for career growth minimal. So when opportunities beckon, the high rate of attrition is not surprising. However, there are some common reasons that especially cause people to leave. Most common reasons are money, inability to handle various types of stress, monotonous work; company policies, lack of career growth, problems with those in senior positions etc ii) What is the cause? Have a survey among employees to find the reasons for attrition. Have exit interviews to know the reasons for resignations. If a key employee resigns, it should be taken up on a priority basis and the senior management should meet the employee to discuss his reasons for leaving and evaluate whether his issues bear merit and whether they can be resolved. Steps can be taken to avoid similar reasons from occurring in the case of others, in similar positions. We can also get the reasons for attrition from those who have already quit. iii) What can be done? Though, it is impossible to scrap problems totally, there are certain ways by which management can tackle attrition. Since the most corporate environments are unique, companies need to develop innovative ways to tackle them. Human Resources department must address these issues, and along with the management need to evolve strategies to retain employees at all levels. Retention of key employees is critical to the long-term health and success of any organization. Hence, failing to retain a key employee is a costly proposition for any organization

Now we re-define Retention:

Fundamental changes are taking place in the work force and the workplace that promise to radically alter the way companies relate to their employees. Hiring and retaining good employees have become the chief concerns of nearly every company in every industry.. Retention is all the more important because of the severe competition among employers for qualified workers. This fierce competition for qualified workers results from a number of workplace trends, including: A robust economy Shift in how people view their careers Changes in the unspoken "contract between employer and employee A new generation of workers

Changes in social mores Life balance

Retention tools required for changing times in ABC Limited:

1. Offer Compensation Attractive and Competitive. Fair compensation alone does not guarantee employee loyalty, but offering belowmarket salaries makes it much more likely that employees will look for greener pastures. Go for Employee Engagement Surveys / ESS, to find out what perks, benefits and forms of compensation other than money will help keep them motivated. 2. Benefits Need To Be Quantified And Qualitative. Although benefits are not a key reason why employees stick with a company, the benefits you offer can't be markedly worse than those offered by your competitors and like minded industries. Eg Medical insurances, Corporate Credit cards and Discount Coupons 3. Train your front-line, managers and administrators. It can't be said repeatedly that people stay or leave because of their bosses and not the companies. Improve managers' leadership, communication and interpersonal skills through coaching, training and feedback. Harp upon the competencies and substantially invest in human capital irrespective of ROI 4. Roles and responsibilities needs to be dovetailed. Make sure your employees know what is expected of them every day, every month and every year, what types of decisions they are allowed to make on their own, and to whom they are supposed to report. Provide clear vision, and consistent communication, teamwork and respect for human capital' efforts. 5. Enhancement, Advancement and Progression Opportunities. To foster employee loyalty, implement a career ladder and make sure employees know what they must do to earn and go in for progression. A clear professional development plan gives employees an incentive to stick around. Do away with you Performance Management System if it has turned to NOVA (Non Value Added Activity) and go in for instant performance rewards. Think out of the box! 6. Offer retention bonus. Employee longevity typically is rewarded with an annual raise and mandatory vacation time after three, five or ten years. But why not offer other seniority-based rewards such as a paid membership in the employee's professional association after one year, a paid membership to a local etc.

7. Retention strategies implementation needs to have a process owner. Measure your turnover rate and identify a process owner responsible for containing it. If customer returns, in-house rejections and non-confirming products can have a process owner as a countermeasure why not a process owner for implementation of retention strategies? 8. Go in for Employee Engagement Practices. You won't know what's wrong... or what's right unless you practice. To check the pulse of your organization, conduct employee satisfaction surveys on a regular basis. Go in for its analysis and implementation. One idea: Ask employees what they want more of and what they want less of Capture Voice of Employees 9. Teamwork and Cross Functional Teams. It takes effort to build an effective team, but the result is greater productivity, better use of resources, improved customer service and increased morale. Give great emphasis on cross functional approach as it endorses acceptance and accountability, 10. Fun Is Must. Celebrate successes and recognize when milestones are reached. Buffet lunches, birthday parties, employee picnics and creative contests will help remind people why an organization is a great place to work. Include fun elements at work like Parties, bashes, outings, picnics etc 11. Transparency in communication. Employees are more loyal to a company when they believe management or those at the helm of affairs keep them informed about key issues. That means that you regularly keep our people up to date with important events affecting the company. If November was good, let them know, and while you're at it, tell them what you expect to happen in December. 12. Encourage higher learning. Create opportunities for your key performers to grow and learn. Encourage every employee to learn at least one new thing every week, and you'll create a work force that is excited, motivated and committed. 13. Develop an effective induction program. Implement a formal orientation program that's at least a week long and includes a thorough overview of every area of your department and an introduction to other departments 14. Value your employees.

Recognize outstanding achievements promptly and publicly, but also take time to commend on the many small contributions your staff makes every day to the organization's vision, mission and growth.

DO NOT FORGET THESE ARE THE PEOPLE WHO MAKE YOU LOOK GOOD!

Conclusion:
As they say, welfare of the employee can be contagious. So make sure the work place is a happy one, which every employee would love to spend time. Human resources department along with senior management must take steps to make sure of this.

Effective human resource management must be practiced at both strategic and day-to-day levels. HR management practices must reflect company policy as to how it will manage and relate to its employees. The HR strategy should evolve from a transactional support role to partnering in the organizations business strategy. HR must take steps to be aware of employee problems and try to solve them, creatively.