Presented By:Pavan kumar Karuppaiah

Introduction
Employee Retention refers to the ability of an

organization to retain its employees. Employee retention can be represented by a simple statistic (for example, a retention rate of 80% usually indicates that an organisation kept 80% of its employees in a given period). However, many consider employee retention as relating to the efforts by which employers attempt to retain employees in their workforce. In this sense, retention becomes the strategies rather than the outcome.

Why to Retain Employees?

More than half of the employers retain workforce to avoid

associated costs of hiring and training. 51% - costs of hiring & training 24% - loss of productivity 19% - damaged morale of employees 6% - loss of business

Lack of Opportunities

Lack of Freedom

Career Development

Reasons for Leaving organization

Management Support

Monetary Rewards

Need and Importance of Retention

The employees working for a longer period of time are more familiar with the companys policies, guidelines and thus they adjust better An organization invests time and money in grooming an individual and make him ready to work and understand the corporate culture

Hiring is not an easy process

When an individual resigns from his present organization, it is more likely that he would join the competitors

Cont
It is essential for the organization to retain the valuable employees showing potential

It has been observed that individuals sticking to an organization for a longer span are more loyal towards the management and the organization

Every individual needs time to adjust with others

Focus On Team Building

Increase Employee Engagement

Employee Retention Techniques

Recognition of Performance

Motivate Employees

Retention Strategies
Employee engagement through better communication and

involvement is the key strategy for retention by most companies.

8%

16%
40%

BLUE- Employee engagement

RED- Growth opportunities/training GREEN- Improving monetary benefits BLUE- Change in job profile/job rotation

36%

Engage their mind. A learning , expanding mind, sticks around longer.

Praise, recognition is worth more than money, even if youd prefer the money yourself.

Give them the ownership of their unit, division, team, product division, or whole business unit.

Get their significant other involved. I cant tell you how many significant employees I have lost because I failed to engage the support of the spouse or the other.

Invest in them. Sometimes the things that cost you little, give them great value.

Listen to them. Find out about their personal goals. Be frank and honest with them at all times and expect the same back.

Top 7 Retention Strategies

Use Equity when you have a real winner.

Attracting & Retaining Star Employees

Organizations that are capable of retaining talented people

believe that the key to attract and retain employees lies in some non-monetary factors. Star performers stress more on the fundamental human needs which the organizations should oblige.

Underwater Stock Option

Employees stock option were once used to hire and retain

key talent. With bearish stock markets, most of these options have gone underwater and have become worthless. Companies are reworking on their stock options to make them more attractive and retain key employees.

Talent Retention- Make work Passionate

What makes employees remain loyal to employers, a

survey carried out by Watson Wyatt worldwide- identified the following factors which make employees remain loyal to organizations.

CONT

Particulars Percentage Chance to use skill on job 11% Trust in senior leadership 14% Competitiveness of rewards 14% Job security 11% Quality of companys products 10% and services Absence of work related stress 7% Honesty & integrity of companys 7% business conduct All other factors 26%

Article Retaining Talent (Times Ascent-16 Feb. 2011)

According to a timesjob.com survey- 80% HR managers

find retention a bigger challenge than scouting new talent.

Examples
1. CN TOWER Canadas Wonder of the World

EMPLOYEE RETENTION
Motivators and incentives: Investment in training, 2+days prior to first day Competitive compensation packages, or better Staff draws (baseball and attraction tickets, prizes) Marketing discounts (sporting goods, concert tickets, golf tournaments, scuba experiences) Department contests

EMPLOYEE RETENTION
Comprehensive benefits / compensation package Extensive employee recognition / rewards programs Nature of work Opportunities for knowledge and skill development Good interpersonal relations with co-workers Opportunity for advancement & permanent work Opportunity to be creative Geographic location
Relative distance to colleges and universities
Proximity to public transportation systems (union station)

Cont
2. ICICI one source had also introduced a career diversification program whereby employees who had been with the company for more than 18 months could switch to positions in the ICICI group after passing internal tests. 3. Noida- based firm EXL services had taken 125 flats in Noida, where for a nominal rent,it housed young staffers.

Cont
4. EXL Services & Mumbai-based call centers Epicenter were hiring older people and part timers to cope up with attrition. 5. Fed Ex courier services:- Employees who had left the company were allowed to join back if their new job did not match their expectations. The company devised an online exit interview to know about their new jobscompensations offer, job profile and more. Employees were asked why they left Fed Ex.