Description
ABB COMPANY EMPLOYEE RETENTION PROJECT FILE
A
PROJECT REPORT
ON
EMPLOYEE RETENTION
Undertaken at
ABB LIMITED, FARIDABAD
Submitted toard! "artia# $u#$i##ment o$ t%e re&uirement $or
t%e aard o$ t%e de'ree o$
Master of Business Administration
O$
MAHARSHI DAYANAND UNIVERSITY, ROHTA
(Se!!ion )**+,*-.
Submitted to/ Submitted b0/
DR1 2ARIOM S2ARMA TARUNA 3ERMA
Fa4u#t0 (2R. MBA (5
RD
. Seme!ter
INSTITUTE O! MANA"EMENT # TE$HNOLO"Y
(A""ro6ed b0 AICTE, 7o6t1o$ India 8 A$$i#iated to M1 D1 Uni6er!it0, Ro%tak.
(AN NBA 9 ACCREDITED INSTITUTE.
Near Sai D%am, Ti'aon Road,
Faridabad ,
:**)
Te#/ *;9)5-*:> -ountries and
em+*o.s a9out 1>8,>>> +eo+*e&F
=
!A$TS ABOUT ABB02
• 2ead&uarter! / Furi4%, SitCer#and
• Order! in )**+ / G)51= bi##ion
• Re6enue! in )**+ / G))1E bi##ion
• Li!ted on Sto4k%o#m, Si!! 8 Ne Dork E>4%an'e!H traded on 3irt9I
15> YEARS O! TE$HNOLO"I$AL LEADERSHIP
T%e %i!tor0 o$ ABB 'oe! ba4k to t%e #ate nineteent% 4entur0, and i! a #on' and i##u!triou!
re4ord o$ inno6ation and te4%no#o'i4a# #eader!%i" in man0 indu!trie!1
2a6in' %e#"ed 4ountrie! a## o6er t%e or#d to bui#d, de6e#o" and maintain t%eir
in$ra!tru4ture!, ABB %a! in re4ent 0ear! 'one o6er $rom #ar'e9!4a#e !o#ution! to
a#ternati6e ener'0 and t%e ad6an4ed "rodu4t! and te4%no#o'ie! in "oer and automation
t%at 4on!titute it! Indu!tria# IT o$$erin'1
T%ere are man0 inno6ation! t%at ABB %a! brou'%t to t%e or#d in t%e "a!t* 0ear!1 T%e
4om"an0 ork! it% 4u!tomer! to en'ineer and in!ta## netork!, $a4i#itie! and "#ant!
it% "arti4u#ar em"%a!i! on en%an4in' e$$i4ien40 and "rodu4ti6it0 $or 4u!tomer! t%at
!our4e, tran!$orm, tran!mit and di!tribute ener'01
-
A BRIE! HISTORY O! ABB
ASEA G BB$ H ABB02
T%e AABB 7rou"B a! $ormed in :;"erti!e and !tron' #o4a# in!i'%t1
Inturn, 4u!tomerM! !u44e!! i! e4%oed a! 3a#ue $or t%eir !take%o#der! i1e1 !%are%o#der!,
em"#o0ee! and t%e 4ommunitie! in %i4% t%e0 o"erate&
ABB India !er6e! uti#it0 and indu!tr0 4u!tomer! it% t%e 4om"#ete ran'e o$ ABBK!
o$$erin'!1 T%e 4om"an0 %a! a 6a!t in!ta##ed ba!e, e>ten!i6e #o4a# manu$a4turin' at < unit!
and a 4ountr0ide marketin' and !er6i4e "re!en4e1 A! a !trate'i4 t%ru!t to !tandard
"rodu4t! bu!ine!!, ABB %a! a nationa# 4%anne# "artner netork, %i4% en!ure!
'eo'ra"%i4a# rea4% and "enetration o$ it! "rodu4t! and !er6i4e!1
K ABB -onsiders INDIA as a L(i
+riorit. fo-us -ountr.A and is -ommitted to
eC+andin: its a-ti'ities (ere& T(ere @i** 9e an in-reasin: -ost mi:ration from t(e
%est to -ountries su-( as India&F B. !red ind*e ,President # $EO, ABB "rou+/
In order to #e6era'e IndiaK! intrin!i4 te4%no#o'0 !tren't%! and t%e 6a!t "oo# o$
%i'%#0 &ua#i$ied !o$tare "ro$e!!iona#!, ABB %a! !et u" a '#oba# R8D Center in
Ban'a#ore, %i4% $o4u!e! on Indu!tria# IT de6e#o"ment and de"#o0ment1 It a#!o %e#"!
maintain and !u""ort ran'e o$ !o$tare inten!i6e "rodu4t! and a4t! a! a "artner $or t%e
ABB R8D 4enter! a! e## a! bu!ine!! area! it%in t%e 'rou"1
)*
ABB India %a! < manu$a4turin' unit!, )= marketin' o$$i4e!, < !er6i4e 4enter! and 5
trainin' 4enter! a4ro!! t%e 4ountr01 In addition to t%e!e, t%e 4om"an0 %a! a 4%anne#
"artner netork o$ around +** "artner! to $a4i#itate market "enetration $or it! $a!t
'roin' !tandard "rodu4t! and !er6i4e! bu!ine!!1 ABB IndiaK! 4a"ita# e>"enditure in
)**= in4#uded an in6e!tment o$ USG :*1; mi##ion1
):
BOARD OF DIRECTORS
Mr&Dines( Pa*i@a* Mr&Ra'i U++a* Mr&Peter Smits
,$(airman/ ,Vi-e2$(airman # ,Dire-tor/
Mana:in: dire-tor/
Mr&Peter Leu++ Mr&Nasser Mun;ee Mr&N&S&Raa'an
,Dire-tor/ ,ECterna* Dire-tor/ ,Dire-tor/
Mr&Tom Sioe)'ist
,Dire-tor/
))
ABB BUSINESS IN INDIA 02
ABB, t%e or#dM! no1 : in "oer te4%no#o'ie!, "ro6ide! uti#itie!, indu!trie! and 4%anne#
"artner! it% a44e!! to a ri4% "ort$o#io o$ te4%no#o'ie!1 Bu!ine!!e! are/9
:& PO%ER TE$HNOLO"Y
5& AUTOMATION TE$HNOLO"Y
7& BUILDIN" SYSTEMS
PO%ER TE$HNOLO"Y DIVISION IN INDIA
Poer Te4%no#o'0 Di6i!ion in India %a! t%e $o##oin' Produ4t and Pro?e4t Bu!ine!!e!/9
PROIE$T BUSINESSES02
• Po@er s.stems
T 8 D S0!tem!, Uti#it0 4on!u#tin' and "oer !0!tem !er6i4e! , 23DC 8 FACTS
• Uti*it. automation
Netork Mana'ement, Sub!tation Automation, P#ant Automation, Uti#it0
Communi4ation1
PRODU$T BUSINESSES02
• Hi Vo*ta:e Produ-ts
23 4ir4uit braker! , Di!4onne4tor!, 23 Ca"a4itor!, In!trument Tran!$ormer!1
• Medium Vo*ta:e Produ-ts
M3 Sit4% 7ear! and Sub!tation Automation Produ4t!1
• Transformers
Poer Tran!$ormer! and Di!tribution Tran!$ormer!
)5
AUTOMATIOM TECHNOLOGY DIVISION IN INDIA
Automation Te4%no#o'0 Di6i!ion in India %a! Produ4t Bu!ine!!e!, Pro?e4t Bu!ine!!e!
and Manu$a4turin' Automation1
PRODU$T BUSINESSES02
• Pro-ess Automation
Petro#eum, 4%emi4a#, Con!umer, Minera#!, Minin', Pa"er and Meta#! Indu!trie!1
• Automation +rodu-ts
Motor!, Dri6e!, Poer E#e4troni4!, In!trumentation!, 2T Ma4%ine!, E#e4tri4a# irin'
A44e!!orie! and ot%er #o 6o#ta'e "rodu4t!
• Manufa-turin: Automation
Roboti4! and re#ated !0!tem! $or Manu$a4turin', Con!umer and Automati6e
indu!trie!1
BUILDIN" SYSTEM DIVISION IN INDIA
ABB India o$$er! a !in'#e indo a""roa4% $or t%e entire !"e4trum o$ bui#din' !0!tem!1
Com"#ete bui#din' !o#ution! under one roo$9
• Commer4ia# 8 Indu!tria# Bui#din'!
• In$ra!tru4ture 8 Indu!trie!
• P%arma4euti4a#! , Biote4%no#o'0 and 2ea#t%4are
• Poer "#ant!, Marine and o$$!%ore
)E
LO$ATIONS IN INDIA02
)+
ABB PRODUCTS(BRANCHES) IN INDIA
)=
)-
)<
);
Mo'in: Around ABB J O9;e-ti'es
T(e main o9;e-ti'es of ABB -om+an. are02
• 3a#ue 4reation
• Strate'i4 Bu!ine!! ob?e4ti6e! o$ !u""#0in' !0!tem!, "rodu4t!, en'ineerin' 8
!er6i4e! to t%e re'iona# 4u!tomer!1
• Produ4t! de6e#o"ment( 4%an'e 8 im"ro6ement ba!ed on 4u!tomerK! need 8
e>"e4tation!.
• Re'u#ar !0!tem re6ie in a44ordan4e it% !tandard and bu!ine!! need! to en!ure
it! 4ontinuin' !uitabi#it0, ade&ua40 and e$$e4ti6ene!
• E$$i4ien40 'ain
• Im"ro6ed tran!"aren40 and re"ortin' &ua#it0
• En6ironment and o44u"ationa# %ea#t% 8 Sa$et0 ob?e4ti6e!
• En%an4ed 4om"etiti6ene!!
• Com"#ian4e and interna# 4ontro#!
• Ba!ed on a 'rou" , ide !%ared !trate'0 a!!i'nin' 4#ear ro#e! and re!"on!ibi#itie!
to ke0 !take %o#der!
• U!in' t%e internationa# a!!i'nment "ro4edure to $a4i#itate internationa# tran!$er!
b0 en!urin' 4on!i!ten40 and 4o%eren4e1
HEAD O!!I$E< RE"ISTERED O!!I$E02
)
ND
FLOOR, EAST @IN7
N2ANIJA B2A3AN
E;, RACE COURSE ROAD,
BAN7LORE9 +=***:
5*
INDIA
OR"ANIMATIONAL STRU$TURE
ABB $ULTURE
5:
$USTOMERS O! ABB 2 INDIA 02
• Re#ian4e Ener'0
• 20undai
• Dr1Redd0K!
5)
• Samte#
• DMRC
• 7ra!im
• ON7C
• Tata !tee#
• Ba#4o
• B%arat $or'e
• 2P In6ent
• Indian Oi#
• 2indu!tan Petro#eum
,a/ MAIOR HUMAN RESOUR$E !UN$TION IN ABB02
55
,9/ HR PRO$ESS02
PER!ORMAN$E MANA"EMENT SYSTEM02
ABBK! "er$orman4e mana'ement !0!tem i! a !trate'i4 too#, to $a4i#itate em"#o0ee! to
a#i'n t%eir "er!ona# ob?e4ti6e! and e$$ort! to t%e or'aniCationK! ob?e4ti6e!1 ItK! a "a"er#e!!
PMS, %i4% 4an be a44e!!ed t%rou'% Ca$O92R (Em"#o0ee !e#$ !er6i4e too#.
Ca$O92R %e#"! em"#o0ee! to 6ie, 4reate 8 maintain data an0 time, an0%ere
t%rou'% t%eir eb9bro!er1
TRAININ" AND EVENT MANA"EMENT SYSTEM02
ABBK! trainin' and e6ent mana'ement !0!tem i! a too# t%at %e#"! em"#o0ee! to
de6e#o" t%eir !ki##! and 4om"eten4ie! in #ine it% bu!ine!! need!1 T%e trainin' need! are
bot% mana'er! re4ommendation! a! e## a! em"#o0ee! !e#$ initiati6e!1 ABBK! trainin' 8
e6ent mana'ement i! a'ain an on#ine too# a44e!!ib#e t%rou'% Ca$O92R1
IN$ENTIVE S$HEMES02
5E
T%e 6ariab#e "a0 4om"onent (3CTC. o$ t%e tota# 4o!t to 4om"an0 (CTC. $or
mana'ement !ta$$, re$#e4t! ma>imum earnab#e amount t%at an em"#o0ee 4an earn ba!ed
on "er$orman4e 1T%e in4enti6e "#an!, ba!ed on %i4% t%e 6ariab#e "a0 i! "aid out are
$o##o!1 T%ere are t%ree kind! o$ in4enti6e "#an! t%at are a""#i4ab#e to mana'ement !ta$$/9
:1 Standard In4enti6e "#an
)1 Re'ion marketin' In4enti6e "#an
51 At Sa#e! In4enti6e "#an
E2RE$RUITMENT PRO$ESS IN ABB02
T%e !te"! in t%e e9Re4ruitment "ro4e!! in ABB are 6er0 mu4% re#0in' on t%e e>i!tin'
e92R a""#i4ation!H no in o"erationa# u!e in more t%en )+ 4ountrie!1
,9/ BUSINESS ETHI$S AND INTE"RITY02
5+
BUSINESS ETHI$S ARE AN INTE"RAL PART O! ABBAS %AY O! DOIN" BUSINESS 0
T%e bu!ine!! "rin4i"#e! o$ re!"on!ibi#it0, re!"e4t and determination ere $ormu#ated to
'uide t%e a0 ABB em"#o0ee! be%a6e toard! ea4% ot%er, toard! t%e 4u!tomer! and
bu!ine!! "artner!, and toard! !%are%o#der! and t%e 4ommunitie! %ere ABB doe!
bu!ine!!1
ABB BUSINESS ETHI$S AND INTE"RITY 0
T%e 4redibi#it0 and inte'rit0 de"end! on %i'% bu!ine!! et%i4! !tandard!1 A## ABB
4om"anie! and em"#o0ee! mu!t 4on$orm to t%e re#e6ant #a! and re'u#ation! o$ t%e
4ountrie! in %i4% t%e0 o"erate and $u#$i## t%eir ob#i'ation! in a re!"on!ib#e manner1 T%e0
mu!t in!i!t on %one!t0 and $airne!! in a## a!"e4t! o$ t%eir bu!ine!! and e>"e4t t%e !ame
$rom t%eir "artner!1
T%e ABB 7rou" !ub!4ribe! to t%e ba!i4 "rin4i"#e! in t%e Internationa# C%amber o$
Commer4e, ICC, Ru#e! o$ Condu4t, :;;; Re6i!ed Edition and t%e OECD Con6ention
$rom :;;-1
BUSINESS ETHI$S STANDARDS 0
ABB e>"e4t! a## it! em"#o0ee! to u"%o#d t%e %i'%e!t !tandard! o$ et%i4a# be%a6ior and
inte'rit01
"UIDELINES 02
A""#0 PCero to#eran4eP to en!ure !tri4t ad%eren4e to #o4a# and internationa# #a!
and re'u#ation!, a! e## a! to ABB 7rou" et%i4a# !tandard!1
En!ure a## ABB bu!ine!! tran!a4tion! are $u##0 and $air#0 re4orded a44ordin' to
t%e 4om"an0M! a44ountin' "rin4i"#e!1
5=
• En!ure 4ontinuou! trainin' and aarene!! $or em"#o0ee! on %o to %and#e et%i4a#
i!!ue!, a! e## a! time#0 ad6i4e and 'uidan4e1
• Re'u#ar#0 monitor et%i4a# 4ondu4t and en!ure t%at a44e!!ib#e !0!tem! are in "#a4e
$or em"#o0ee! or ot%er! to re"ort "otentia# 6io#ation!1
ABB e>"e4t! $rom it! em"#o0ee! a !ound #e6e# o$ a##e'ian4e to t%e 7rou"1 T%i! in4#ude!
ad%eren4e to t%e 7rou"K! non94om"etition "o#i40 b0 "er!on! "o!!e!!in' !i'ni$i4ant
4on$identia# in$ormation1
T(e Human Resour-es Team in India
T%eir 4u!tomer! are t%e em"#o0ee! o$ ABB and t%eir bu!ine!! i! to "ro6ide !o#ution! and
!er6i4e! to t%em ontime, e6er0time ,an0time and to #e6era'e t%e %uman 4a"ita#1
Pre!entin' t%e 2R Team in ABB India1
Vadodara
Ban:a*ore
$or+orate Resear-( $entre Ban:a*ore
Ne@ De*(i
• An;an $(atter;ee
• A9(i;eet Iain
• Mano; umar Pat(a)
• A;a. Himans(u
• Vi;ender Sin
• Vi;a. $(aud(ar.
• Ran;ani Man;unat(
Mum9ai
Nas(i)
5-
DEPARTMENTAS IN ABB !BD&02
:1 MCBS (23AC,IBMS.
)1 PTPS , PTPD, EBOP, PT23, PTUA
51 RN
E1 SOI AUDIT
+1 SER3ICES
=1 TURBO C2AR7ER
-1 INSTRUMENTATION
BUSINESS PRO$ESSES IN ABB !ARIDABAD02
• Market Strate'0 8 Ana#0!i!
• Sa#e! 8 Contra4t Mana'ement
• Pro4e!! "#annin'
• De!i'n and De6e#o"ment (E>4#uded in t%e !4o"e o$ 4erti$i4ation.
• Su""#0 Mana'ement
? "ur4%a!in'
• Pro?e4t Mana'ement
? Order %and#in'
? Pro4e!! 6a#idation
? Identi$i4ation and tra4eabi#it0
? Contro# o$ non4on$ormin' "rodu4t
• Ser6i4e
• Mea!urement and Monitorin' Q Produ4tJSer6i4e
? Produ4t and Jor !er6i4e "er$orman4e
? Contro# o$ mea!urement and monitorin' e&ui"ment
• Su""ort Pro4e!!e!
? Re!our4e Mana'ement (2RM, In$ormation, In$ra!tru4ture.
5<
? Communi4ation and Cu!tomer Fo4u!, Do4ument and re4ord 4ontro#
5;
INTRODU$TION02
Em"#o0ee retention i! a ma?or 4au!e o$ 4on4ern toda0 not on#0 in t%e de6e#o"ed
e4onomie! #ike t%e US (%ere a #ot o$ attention! de6oted to t%i! i!!ue.a#!o in de6e#o"in'
e4onomie! #ike INDIA1 It i! e>"e4ted t%at b0 )*:*, t%ere ou#d be around :* mi##ion
more ?ob! t%an t%e number o$ &ua#i$iedJ !ki##ed "eo"#e in t%e ?ob market1 Ana#0!t!
attribute a 4ombination o$ $a4tor! #ike retirement o$ bab0 boomer! and #e!! number o$
orker! in t%e a'e 'rou" o$ )+ to 5+ a! rea!on! $or t%i! !%orta'e1 In a !4enario %ere
'ettin' ne "eo"#e to $i## t%e ?ob 6a4an4ie! i! di$$i4u#t, retainin' t%e e>i!tin' em"#o0ee!
be4ome ! a## t%e more 4riti4a# $or t%e 2R Mana'er!1
O6er to9t%ird!(-*R. o$ 2R mana'er! !tate t%at em"#o0ee retention i! a "rimar0
bu!ine!! 4on4ern, %i#e E*R o$ 2R mana'er! re"ort an in4rea!e in orker turno6er
durin' t%e "a!t ei'%teen mont%!1 T%ou'% 2R mana'er! 4urrent#0 $ind em"#o0ee retention
a bu!ine!! 4%a##en'e, #on' term demo'ra"%i4 4%an'e!, !u4% a! t%e retirin' Bab0 boomer
"o"u#ation %a6e t%e "otentia# to a''ra6ate t%i! i!!ue1
@it% t%e 'rot% in t%e e4onom0, a4&ui!ition and retention o$ em"#o0ee!
%a6e be4ome t%e ke0 4%a##en'e! $or 2R mana'er! in INDIA1 T%i! i!!ue attributed to t%e
4%an'in' #i$e!t0#e!, deat% o$ moti6ation, in4rea!in' o""ortunitie! $or a!!i'nment! abroad
and de4rea!in' #o0a#t0 toard! t%e or'aniCation1 Retention o$ e>4e##ent em"#o0ee! i! one
o$ t%e mo!t im"ortant 4%a##en'e! in or'aniCation! toda01
In order to addre!! t%e!e i!!ue!, t%i! !tud0 de!i'ned to %e#" em"#o0er! to better
under!tand turno6er and retention 4%a##en'e!1 T%i! !tud0 4on$irm! t%at em"#o0er! 6ie
ork$or4e retention a! one o$ t%e mo!t 4riti4a# i!!ue! $a4in' t%em and identi$ie! !trate'ie!
8 te4%ni&ue! $or retainin' t%e be!t em"#o0ee! %i#e t%e 4om"etition $or %uman ta#ent
e!4a#ate!1
E*
OBIE$TIVES02
• To $ind out t%e root 4au!e o$ e>i!tin' em"#o0ee turno6er "rob#em and retention need! o$
to" ta#ent1
• To mea!ure t%e em"#o0ee o6era## !ati!$a4tion1
• To mea!ure 4urrent area! o$ 4on4ern and identi$ie! o""ortunit0 $or Im"ro6ement1
• Create an im"#ementation "#an (!trate'0. to im"ro6e em"#o0ee retention1
• To im"ro6e mana'ementS! abi#it0 to %ire, moti6ate and retain !ta$$1
S$OPE 02
T%i! "ro?e4t i## 'enerate/9
• Ne !trate'ie! and te4%ni&ue! $or retainin' t%e em"#o0ee! in ABB
• Identi$i4ation o$ t%e root 4au!e(!. o$ em"#o0ee turno6er
• A !ummar0 o$ retention !trate'0
• An im"#ementation "#an to im"ro6e em"#o0ee retention and retention matri4e!1
• In4rea!e t%e 4om"an0 "rodu4ti6it0JPro$it1
RATIONALE02
Bu!ine!! !u44e!! i! more de"endent t%an e6er be$ore on AMANPO@ERB1 In
Toda0K! !4enario, it i! not di$$i4u#t to !ear4% out t%e Man"oer but it S! mu4% more
di$$i4u#t to $ind 8 Nee" t%e Ata#ented 8 Ski##ed Man"oerB %i4% 4ou#d be more
"ro$itab#e $or t%e or'aniCation 1
In toda0K! turbu#ent, o$ten 4%aoti4 en6ironment, 4ommer4ia# !u44e!! de"end!
on em"#o0ee! u!in' t%eir $u## ta#ent1 No, e6er0 or'aniCation ant! to be4ome a
ALeadin' and Su44e!!$u# Or'aniCationB in t%e #on' run1 ItK! on t%e 'roomin' a01 E6er0
4or"oration ant! to retain t%e e>4e##ent 8 !ki##ed em"#o0ee, i!!ue! re#atin' to Se#e4tion,
retention 8 Com"en!ation %a6e be4ome a## t%e more im"ortant1 Be4au!e Em"#o0ee! are
E:
#ike t%e !tron'e!t ABrand Amba!!ador! A$or e6er0 4om"an01 Retention o$ e>4e##ent
em"#o0ee! i! one o$ t%e mo!t im"ortant 4%a##en'e in or'aniCation! toda01
2en4e t%e rationa#e be%ind doin' t%i! "ro?e4t i! to AIdenti$0 t%e root 4au!e o$
attrition o$ em"#o0ee! and mana'ementK! abi#it0 to %ire, moti6ate and retain t%e !ta$$1 So
t%at it 4ou#d be4ome t%e Market Leader it% !ki##ed teamork and 4ou#d im"ro6e t%e
"rodu4ti6it01
!O$US AREA02
T%i! in9 %ou!e "ro?e4t !%o! t%at em"#o0ee attitude! are a better "redi4tor o$ $uture
em"#o0ee be%a6ior t%an "a!t be%a6ior1 T%e Fo4u! area are a! $o##o!/9
• O6era## Em"#o0ee !ati!$a4tion toard! or'aniCation
• Em"#o0ee Lo0a#t0
• @ork En6ironment(TeamorkJRea# 4o##aborati6e ork.
• @ork$or4e Moti6ation and En'a'ement
• Cor"orate Cu#ture
• Pa0 , Bene$it! and Com"en!ation
• Su"er6i!orJ4oorker! Re#ation!
• Trainin' 8 De6e#o"ment
• Cor"orate 4ommuni4ation!
• Em"#o0ee Em"oermentJE4onomi4 Se4urit0JRe!"e4t and
Ad6an4ement et41
E)
LIMITATIONS02
:1 In!u$$i4ient data $or "ro?e4t ork/9
T%e !am"#e !iCe i! !ma## to re$#e4t t%e o"inion o$ %o#e or'aniCation1
)1 La4k o $ Time/9
T%e time "ro6ided $or 4ondu4tin' t%e !tud0 a#!o #imited it! !4o"e and 4o6era'e1
51 An!er! 'i6en b0 re!"ondent! %a6e been be#ie6ed to be taken $or 'ranted to tru#0 re$#e4t
t%eir de!ire1
E1 Sometime! re!"ondent ere &uite en'a'ed it% t%eir ?ob to "ro6ide t%e a!!i!tan4e1
+1 It a! di$$i4u#t to $ind out t%e root 4au!e o$ attrition rate o$ ot%er or'aniCation!
(4om"etitor!. due to t%e ab!en4e o$ re#iab#e !our4e $or 4o##e4tin' t%e data1
E5
LITERATURE REVIE%
1& Sub!e&uent re!ear4% %a! indi4ated t%at a4tua# a#ternati6e! are a better "redi4tor o$
indi6idua# turno6er t%an "er4ei6ed o""ortunitie!1 Re!ear4% on t%e im"a4t o$
unem"#o0ment rate! a! a "ro>0 $or a4tua# o""ortunitie! in em"#o0ee turno6er
re6ea#ed t%at unem"#o0ment rate! a$$e4ted t%e ?ob9!ati!$a4tionJturno6er intent
re#ation!%i" but not a4tua# turno6er ,irs-(en9aum # Mano2Ne:rin, 1===/&
)1 Tan: et a*Ns ,5>>>/ !tud0 4on$irmed t%e #ink beteen 4ommitment and a4tua#
turno6er and "riffet( et a*Ns,5>>>/ ana#0!i! !%oed t%at or'aniCationa#
4ommitment a! a better "redi4tor o$ turno6er t%an o6era## ?ob !ati!$a4tion1
51 A**en # Me.er ,1==>/ in6e!ti'ated t%e nature o$ t%e #ink beteen turno6er and
t%e t%ree 4om"onent! o$ attitudina# 4ommitment/ a$$e4ti6e 4ommitment
re$er! to em"#o0ee!M emotiona# atta4%ment to, identi$i4ation it% and in6o#6ement in
t%e or'aniCationH 4ontinuan4e 4ommitment re$er! to 4ommitment ba!e on 4o!t! t%at
em"#o0ee! a!!o4iate it% #ea6in' t%e or'aniCationH and normati6e 4ommitment re$er!
to em"#o0ee!M $ee#in'! o$ ob#i'ation to remain it% t%e or'aniCation1 Put !im"#0,
em"#o0ee! it% !tron' a$$e4ti6e 4ommitment !ta0 it% an or'aniCation be4au!e t%e0
ant, t%o!e it% !tron' 4ontinuan4e 4ommitment !ta0 be4au!e t%e0 need to, and t%o!e
it% !tron' normati6e 4ommitment !ta0 be4au!e t%e0 $ee# t%e0 ou'%t to1 A##en and
Me0erM! !tud0 indi4ated t%at a## t%ree 4om"onent! o$ 4ommitment ere a ne'ati6e
indi4ator o$ turno6er1
E& "riffet( et a* ,5>>>/ $ound t%at o6era## ?ob !ati!$a4tion mode!t#0 "redi4ted
turno6er1 In a re4ent Ne Fea#and !tud0, BoCa** et a* ,5>>7/ $ound t%e main rea!on b0
$ar $or "eo"#e #ea6in' t%eir em"#o0er a! $or more intere!tin' ork e#!e%ere1 It i!
EE
'enera##0 a44e"ted t%at t%e e$$e4t o$ ?ob !ati!$a4tion on turno6er i! #e!! t%an t%at o$
or'ani!ationa# 4ommitment1
HERTMBER" T%O !A$TOR THEORY02
Io9 Dissatisfa-tion Io9 satisfa-tion
? @orkin' 4ondition! ork 4ontent
? Pa0 Autonom0
? 2our! T%e 4%a##en'e
? Re#ati6it0 A4%ie6ement!
? Se4urit0 Prai!e 8 re4o'nition
? La4k o$ "ro!"e4t! Re!"on!ibi#it0
? Poor 4ommuni4ation 7ood re#ation!%i"
? Poor or'aniCationa# !tru4ture
? La4k o$ dire4tion
(20'iene $a4tor!. (Moti6ation $a4tor!.
? Neit%er to are re#ated1
? No amount o$ e$$ort in redu4in' e#ement! re#ated to ?ob di!!ati!$a4tion i## re!u#t
in an0 4%an'e! to ?ob !ati!$a4tion 8 6i4e , 6er!a1 E1'1 I$ 0ou in4rea!e "a0, 0ou i##
not im"ro6e ?ob di!!ati!$a4tion1
E+
E=
E-
THE EIAS EMPLOYEE RETENTION %HEEL02
T%e $ir!t !te" to im"ro6in' em"#o0ee retention i! to under!tand %0 em"#o0ee! !ta0 it%
t%eir 4urrent or'aniCation1 Man0 Pe>"ert!P de## on t%e rea!on! em"#o0ee! #ea6e, %i4%
i! not a! im"ortant or re6ea#in' a! t%e rea!on! t%e0 !ta01
NeiK! Em"#o0ee Retention @%ee# i! a too# to mea!ure t%e 4ore need! t%at kee" em"#o0ee!
!u44e!!$u# at t%eir ?ob!, t%u! redu4in' t%e %i'% 4o!t! a!!o4iated it% unanted em"#o0ee
turno6er1
A Contro##ab#e em"#o0ee turno6erB i! 4au!e b0 on#0 to t%in'!/ SBad %irin'K and SBad
treatment1K Em"#o0er! tr0 numerou! t%in'! to kee" 'ood em"#o0ee!1 2oe6er, !tudie!
!%o t%at t%e "ro'ram! in t%e outer to rin'! do not %a6e a! 'reat im"a4t on retainin'
em"#o0ee! a! t%e "ro4e!! identi$ied in t%e 4enter o$ NeiK! Em"#o0ee Retention @%ee#1
Em"#o0er! need to $o4u! on "ro6idin' !u"er6i!or! it% t%e too#! t%at im"#ement t%e
"ro4e!!e! at t%e 4enter o$ t%e %ee#1
E<
E;
EMPLOYEE RETENTION
MEANIN" O! RETENTION02
T%e a4t o$ retainin'Jkee"in' o$ a t%in' it%in oneK! "oer or "o!!e!!ion i!
ARETENTIONB1
MEANIN" O! EMPLOYEE RETENTION02
T%e %o#din'Jretention o$ em"#o0ee in t%eir or'aniCation i! knon a! AEm"#o0ee
RetentionB1 In toda0K! 4%an'in', 4om"etiti6e and o$ten 4%aoti4 en6ironment, t%e retention
o$ e>4e##ent em"#o0ee i! one o$ t%e mo!t im"ortant 4%a##en'e in t%e or'aniCation!1Det in
!"ite o$ t%e m0riad o$ a6ai#ab#e t%eorie! 8 "ra4ti4e!, mana'er! o$ten 6ie em"#o0ee
moti6ation a! !omet%in' o$ a m0!ter01
EMPLOYEE RETENTION !A$T /
Em"#o0ee retention i! ob6iou!#0 im"ortant in a bu!ine!!M!
abi#it0 to kee" t%e mo!t ta#ented "eo"#e in t%e or'aniCation and a6oid unanted turno6er1
+*
NEED O! EMPLOYEE RETENTION02
BUSINESS !u44e!! i! more de"endent t%an e6er be$ore on "eo"#e1 Strate'ie! 4an be
4o"ied1 Te4%no#o'0 4an 'et outdated1 T%u!, t%e %uman 4a"ita# i! 'ettin' to be t%e rea#
4urren40 o$ t%e ne e4onom01
Com"anie! are 4%a##en'ed to ork doub#0 %ard to remain 4om"etiti6e to !ur6i6e1 In
meetin' t%i! 4%a##en'e, t%ere$ore, or'aniCation! need to retain t%eir %i'% "er$ormer! and
$or !ome, %ire indi6idua#! %o 4an %e#" brin' t%e or'aniCation 4#o!er to it! 'oa#!1 T%u!,
t%e Par $or ta#entP mi'%t e6en be more a""arent in t%e!e tou'% 4ondition!1
In toda0K! turbu#ent,o$ten 4%aoti4 en6ironment, it i! 'ettin' more di$$i4u#t to $ind and
kee" ta#ented orker!1Ea4% and e6er0 da0 'ood em"#o0ee! &uit t%eir em"#o0er! $or better
?ob! e#!e%ere1 U1S1 bu!ine!!e! !"end o6er G)** bi##ion annua##0 re4ruitin' and re"#a4in'
t%eir em"#o0ee!1 A6era'e or'aniCation! !"end more mone0 on re4ruitment and
re"#a4ement "ro'ram!, %i#e 'ood or'aniCation! in6e!t in em"#o0ee retention1 No,
more t%an e6er, it i! im"ortant to be4ome an em"#o0er o$ 4%oi4e or'aniCation1
Su44e!!$u# or'aniCation! rea#iCe em"#o0ee retention and ta#ent mana'ement are inte'ra#
to !u!tainin' t%eir #eader!%i" and 'rot% in t%e market"#a4e1 Be4omin' an Em"#o0er o$
C%oi4e b0 retainin' %i'%94a#iber em"#o0ee! in toda0M! #abor market !%ou#d be t%e %i'%e!t
"riorit01
THE EMPLOYEE RETENTION J $HALLEN"E02
In a or#d %ere te4%no#o'ie!, "ro4e!!e! and "rodu4t! are &ui4k#0 du"#i4ated
b0 4om"etitor! and t%e "a4e o$ 4%an'e and #e6e# o$ 4om"etition are 4on!tant#0 in4rea!in'1
Peo"#e are t%e ke0 to t%e mo!t re#iab#e !our4e o$ ad6anta'e , better !er6i4e, in4rea!ed
re!"on!i6ene!!, !tron' 4u!tomer re#ation!%i"! , 4reati6it0 and inno6ation t%at kee" a
4om"an0 one !te" a%ead 1
At t%e !ame time, %oe6er, itK! 'ettin' tou'%er to %o#d on to t%o!e em"#o0ee!1
Unem"#o0ment i! at it! #oe!t "oint in a &uarter o$ a 4entur01 Retirement i! e>"e4ted to
+:
redu4e mana'ement rank! b0 )*R or moreo6er t%e ne>t + 0ear!1 Doun'er, %i'%#0 mobi#e
orker! are brin'in' ne 6a#ue! and e>"e4tation! to t%e ork"#a4e, 4om"#i4atin'
retention e$$ort!1 And a$ter 0ear! o$ turn moi# in bu!ine!!, t%e traditiona# !en!e o$
4om"an0 #o0a#t0 %a! di!a""eared amon' 6irtua##0 a## em"#o0ee!1
T%u! t%e "rob#em o$ em"#o0ee retention i! %a6in' an im"a4t $ar be0ond $ront
#ine mana'er! and be0ond e6en t%e 2R de"artment1 It a$$e4t! t%e "er$orman4e o$ t%e
entire 4om"an0 , meanin' t%at t%e abi#it0 to kee" 'ood em"#o0ee! i! ra"id#0 be4omin' a
4riti4a# 4om"etiti6e ea"on1
%HY EMPLOYEES DUIT THEIR IOB02
Em"#o0ee #ea6e t%e or'aniCation $or man0 rea!on!/9
? Some #ea6e $or better "a0in' ?ob! e#!e%ere1
? Di!!ati!$a4tion in t%eir "re!ent ?ob to !eek a#ternati6e em"#o0ment1
? Due to "oor orkin' 4ondition!, La4k o$ o""ortunitie!JSu""ort $or ad6an4ement,
4on$#i4t, 2ea#t% %aCard!1
? Re!o#6e "er$orman4e and attitude "rob#em!, inade&uate 4om"en!ation1
? Ot%er! de"art be4au!e t%e0 do not $it t%e 4u#ture1
? Man0 more e>it be4au!e t%eir mana'er! and !u"er6i!or! are not "ro"er#0 trained1
2oe6er, t%ere are $i6e im"ortant area! t%at moti6ate "eo"#e to #ea6e t%eir ?ob!1
:1 Poor mat4% beteen t%e "er!on and t%e ?ob
)1 Poor $it it% t%e or'aniCationa# 4#imate and 4u#ture
51 Poor a#i'nment beteen "a0 and "er$orman4e
E1 Poor 4onne4tion! beteen t%e indi6idua#, t%eir 4oorker!, and t%e !u"er6i!or
+1 Poor o""ortunitie! $or 'rot% and ad6an4ement
T%e!e $i6e PM! 4an be addre!!ed !u44e!!$u##01 Em"#o0ee retention be'in! b0 "a0in'
attention to %at 4au!e! #o ?ob !ati!$a4tion a! e## a! %at attra4t! and retain! 0our
ork$or4e1
EMPLOYEE TURNOVER IS EOPENSIVE02
+)
A 4ontinua# e$$ort to re"#a4e de"artin' orker!Qto kee" t%e re6o#6in' door $u##,
in!tead o$ !to""in' it a#to'et%erQi! b#eedin' or'aniCation! dr01 ItK! e>"en!i6e to
4on!tant#0 re"#a4e "eo"#e t%at turno6er1 T%e 4o!t o$ attra4tin', re4ruitin', %irin', trainin',
and 'ettin' ne "eo"#e u" to !"eed i! tremendou!#0 more 4o!t#0 a! e## a! tremendou!#0
more a!te$u# t%an mo!t rea#iCe1 Ju!t 4on!ider t%e!e 4o!t!/
ASAP determined i! 4o!t G=-"erien4ed !a#e! "er!on &uit1B
AA t0"i4a# medi4a# 4enter !"end! o6er G) mi##ion ea4% 0ear re"#a4in' !ta$$ member!1B
2i'% em"#o0ee turno6er i! a $a4t o$ #i$e t%e!e da0! in man0 indu!trie!1 Det t%e 4o!t! to
re4ruit and train ne em"#o0ee! eat aa0 at bottom #ine1 To !ta0 4om"etiti6e, it! not
on#0 ne4e!!ar0 to attra4t t%e be!t "o!!ib#e em"#o0ee! $or t%e ?ob, but de6e#o" a 4#ear94ut
!trate'0 to retain t%em1
PRODU$TIVITY AND PRO!ITABILITY IS DIRE$TLY TIED TO EMPLOYEE RETENTION02
A Studie! $rom t%e 7a##u" or'aniCation !%o t%at em"#o0ee! %o %a6e an abo6e9
a6era'e attitude toard t%eir ork i## 'enerate/9
? 5< "er4ent %i'%er 4u!tomer !ati!$a4tion !4ore!
? )) "er4ent %i'%er "rodu4ti6it0
? )- "er4ent %i'%er "ro$it! $or t%eir 4om"anie!B1
+5
T%atK! %0 t%e retention o$ !ki##ed and ta#ented em"#o0ee! i! 6er0 e!!entia# in
or'aniCation! toda01
+E
EToda.As @or) for-e 9rin:s man. t(in:s to t(e ta9*e, -reati'e t(in)in:, ne@ ideas,
9ound*ess ener:. and some issues t(at (a'e not 9een dea*t @it( in t(e +ast&
$ontinua**. it is made a++arent t(at em+*o.ees are not @i**in: to fo**o@ in t(e
footste+s of +rior :enerations&F Donna I& Mur+(., Senior Vi-e +resident, Iefferson
Ban)
%HEN DOES EMPLOYEE TURNOVER BE$OME PROBLEMATI$P
T%ere i! no !et #e6e# o$ em"#o0ee turno6er abo6e %i4% e$$e4t! on t%e em"#o0in'
or'aniCation be4ome dama'in'1 E6er0t%in' de"end! on t%e t0"e o$ #abour market! in
%i4% e 4om"ete1 @%ere it i! re#ati6e#0 ea!0 to $ind and train ne em"#o0ee! &ui4k#0
and at re#ati6e#0 #itt#e 4o!t (i1e %ere t%e #abour market i! #oo!e., it i! "o!!ib#e to !u!tain
%i'% &ua#it0 #e6e#! o$ !er6i4e "ro6i!ion de!"ite %a6in' a %i'% turno6er rate1 B0 4ontra!t,
%ere !ki##! are re#ati6e#0 !4ar4e, %ere re4ruitment i! 4o!t#0 or %ere it take! !e6era#
eek! to $i## a 6a4an40, turno6er i! #ike#0 to be "rob#emati4 $rom a mana'ement "oint o$
6ie1 T%i! i! e!"e4ia##0 true o$ !ituation! in %i4% t%e0 #o!e !ta$$ to dire4t 4om"etitor! or
%ere 4u!tomer! %a6e de6e#o"ed re#ation!%i"! it% indi6idua# em"#o0ee! a! i! t%e 4a!e in
man0 "ro$e!!iona# !er6i4e! or'aniCation!1
Some em"#o0ee turno6er "o!iti6e#0 bene$it! or'aniCation!1 T%i! %a""en! %ene6er a "oor
"er$ormer i! re"#a4ed b0 a more e$$e4ti6e em"#o0ee, and 4an %a""en %en a !enior
retirement a##o! t%e "romotion or a4&ui!ition o$ e#4ome M$re!% b#oodM1 Moderate #e6e#!
o$ !ta$$ turno6er 4an a#!o %e#" to redu4e !ta$$ 4o!t! in or'aniCation! %ere bu!ine!! #e6e#!
are un"redi4tab#e mont% on mont%1 In !u4% !ituation! %en bu!ine!! i! !#a4k it i!
!trai'%t$orard to %o#d o$$ $i##in' re4ent#0 4reated 6a4an4ie! $or !ome eek!1
@%en e>e4uti6e! attem"t Em"#o0ee Se#e4tion interna##0, t%e0 o$ten $o4u! on !%ort term
'oa#!, #ike !a#e! &uota!, rate! o$ return, and t%e #ike1 Un$ortunate#0, t%i! m0o"i4
4on4e"tion o$ Em"#o0ee Se#e4tion o$ten #ead! e>e4uti6e! don t%e ron' "at%1 T%e trut%
i! t%at bui#din' a ti'%t !%i" mean! %irin' t%e ri'%t "eo"#e1 A! t%e !a0in' 'oe!, E"o*d in,
"o*d out&F
++
EMPLOYEE RETENTION0A VITAL STRATE"Y02
Em"#o0ee retention i! mo!t 4riti4a# i!!ue $a4in' 4or"orate #eader! a! a re!u#t o$ t%e
!%orta'e o$ !ki##ed #abor, e4onomi4 'rot% and em"#o0ee turno6er1 T%i! "ro?e4t e>"#ore!
a## a!"e4t! o$ t%e ork$or4e !tabi#it0 i!!ue in t%e $a4e o$ un"re4edented 4%urnin' in t%e
em"#o0ment market it% a $o4u! on retainin' t%eir em"#o0ee!1 T%i! i! one o$ t%e %otte!t
to"i4! $or 4or"orate #eader! in a## $ie#d! in t%e %o#e or#d1
Retainin' em"#o0ee! mean! #oer trainin' 4o!t! and a $ami#iar e## e!tab#i!%ed
ork$or4e1 Retention re&uire! kee"in' em"#o0ee! %a""0, %i4% %a! ot%er bene$it! a!
e##1
7ood "a0 and bene$it! 4an, in man0 indu!trie!, be a in9in !ituation1 Em"#o0ee! 'et
more o$ %at t%e0 ant, and b0 minimiCin' turno6er, 4u!tomer! 'et better !er6i4e and
!%are%o#der! 'et more "ro$it!1
PAST AND $URRENT S$ENARIO O! EMPLOYEE RETENTION
T(e @a. it @asTTTIn t%e "a!t, t%e ?ob! ere 4on!idered de!irab#e and !u$$i4ient
4andidate! 4ou#d be $ound to $i## mo!t 4riti4a# ?ob!1 Moreo6er, on4e em"#o0ed, orker!
ou#d o$ten !"end t%eir entire 4areer! in State Ser6i4e1 In area! %ere t%ere a! turno6er,
ne em"#o0ee! 4ou#d be re4ruited ea!i#01
T(e @a. it isTTT1toda0 t%ere i! a %i'% demand in t%e "ub#i4 and "ri6ate !e4tor! $or
orker! in 4riti4a# area! !u4% a! %ea#t% 4are, in$ormation te4%no#o'0, en'ineerin',
a44ountin' and auditin'1 T%e !u""#0 o$ &ua#i$ied orker! i! #imited and 'ood ork$or4e
"#annin' re&uire! a to$o#d a""roa4% o$ a''re!!i6e re4ruitment and inno6ati6e retention
!trate'ie!1 Retention "o#i4ie! need to $o4u! on e#imination o$ unanted turno6er1
+=
EMPLOYEE RETENTION IN THE NE% MILLENIUM
Toda0M! #abour $or4e i! di$$erent1 Su"er6i!or! mu!t take re!"on!ibi#it0 $or t%eir on
em"#o0ee retention1 I$ t%e0 donMt, t%e0 4ou#d be #e$t it%out enou'% 'ood em"#o0ee!1 A
i!e em"#o0er i## #earn %o to attra4t and kee" 'ood em"#o0ee!, be4au!e in t%e #on'
run, t%i! ork$or4e i## make or break a 4om"an0M! re"utation1
Ne !u"er6i!or! mu!t be "re"ared to be 4o##aborati6e, !u""orti6e, and nurturin' o$ t%eir
"eo"#e1 T%e o#d !t0#e o$ Pm09a09or9t%e9%i'%a0P !t0#e o$ mana'ement i! a t%in' o$ t%e
"a!t1 Mo!t ne !u"er6i!or! need trainin' to under!tand %at it rea##0 take! to retain
em"#o0ee!1
Em"#o0ee retention in6o#6e! bein' !en!iti6e to "eo"#eM! need! and demon!tratin' t%e
6ariou! !trate'ie! in t%e $o##oin' $i6e $ami#ie! (Nee"in' 7ood Peo"#e.
:1 En6ironmenta#
)1 Re#ation!%i"
51 Su""ort
E1 7rot%
+1 Com"en!ation
Em"#o0ee retention take! e$$ort, ener'0, and re!our4e!111and t%e re!u#t! are ort% it1
+-
STEPS !OR KEMPLOYEE RETENTION PRO"RAMF02
T%ere are ei'%t !te"! $or "er$e4tin' "ro'ram! to kee" t%e mo!t ta#ented em"#o0ee!/
• Mea!ure and monitor turno6er and retention dataH
• De6e#o" $u##0 #oaded 4o!t! o$ turno6erH
• Dia'no!e 4au!e! and need! $or retention im"ro6ementH
• E>"#ore ran'e o$ !o#ution!H
• Mat4% !o#ution! to need!H
• Fore4a!t 6a#ue o$ retention !o#ution!H
• Ca#4u#ate ROI o$ retention !o#ution!H and
Make ad?u!tment! and 4ontinue1
USIN" BENE!ITS AS AN EMPLOYEE RETENTION TOOL
Em"#o0ee bene$it! "ro6ide a "oer$u# too# $or attra4tin' and retainin' to"9not4%
em"#o0ee!1 To de!i'n a retention9oriented bene$it! "ro'ram, u!e t%e $o##oin' !te"!/
:1 Create a bene$it! mi!!ion !tatement1
)1 Identi$0 0our audien4e and t%eir !"e4i$i4 bene$it! ant! and need!1
51 De$ine a bene$it! bud'et t%at $it! it%in t%e $inan4ia# 4on!traint! o$ t%e 4om"an01
E1 7i6e em"#o0ee! a! mu4% 4ontro# a! "o!!ib#e o6er t%eir bene$it!1
Communi4ate t%e "#an1
BENE!ITS O! KEMPLOYEE RETENTION PRO"RAMF02
? Sa6e mone0
? Le!! unanted tur
+<
? 2i'%er mora#e it%in a !"e4i$i4 de"artment
? En!ure 4ontinuit0 o$ 4u!tomer !er6i4e and !ati!$a4tion bK4oC turno6er di!ru"t! t%e
4onne4tion beteen 4u!tomer! and t%e 4om"an0
? Im"ro6e &ua#it0 (!ati!$ied em"#o0ee! de#i6er %i'%er &ua#it0 "rodu4t! and
!er6i4e!.and remain 4om"etiti6e
? Better under!tandin' o$ %atK! needed to e$$e4ti6e#0 mana'e a "arti4u#ar team
? 2i'% 6a#ue $or a #o 4o!t mean! t%at it% #e!! turno6er, $eer "rob#em! and more
Produ4ti6it0 o44ur!1 T%e mone0 !a6ed i! !i'ni$i4ant#0 'reater t%an t%e 4o!t1
K Satisfied em+*o.ees -ontri9ute to :reater 9usiness 9enefits for t(e em+*o.er&
!oremost, 9usinesses @ou*d eC+erien-e an in-rease in +rodu-ti'it.& Ha++.
em+*o.ees +erform 9etter t(an dis:runt*ed and stressed ones& Businesses @ou*d a*so
see im+ro'ed re-ruitment and retention& Additiona**., t(ere @ou*d 9e *o@er rates of
a9senteeism and im+ro'ed -ustomer ser'i-e& O'era**, t(ere @ou*d eCist a more
moti'ated, satisfied and eQuita9*e @or)for-e,FNELSON,5>>>
RETAININ" EY EMPLOYEES02
B0 $o4u!in' on ke0 "#a0er! %o tru#0 make or break t%e bu!ine!!, e 4an 'et t%e mo!t
#e6era'e $rom our em"#o0ee retention e$$ort!1 Retainin' ke0 em"#o0ee! re&uire! a $i6e9
!te" "ro4e!!/
:1 Identi$0 ke0 em"#o0ee! and "o!ition!1
)1 Nno %at moti6ate! 0our ke0 em"#o0ee! on an indi6idua# #e6e#1
51 Pro6ide a de$erred 4om"en!ation "#an1
E1 Monitor and mana'e ke0 em"#o0ee "er$orman4eJRe6ie ke0 em"#o0ee! annua##01
+;
STRATE"IES !OR RETAININ" THE EMPLOYEES
Toda0M! orker! are no #on'er in4#ined to !ta0 at one 4om"an0 $or t%e duration o$ t%eir
4areer!1 T%e mo!t ta#ented "ro$e!!iona#! o$ten are 4ourted b0 ot%er bu!ine!!e!, and t%e
e$$e4t! o$ turno6er 4an be 4o!t#01 T%e time and mone0 it take! to re4ruit, re%ire and retain
4an &ui4k#0 4ut into a $irmM! bottom #ine1 Em"#o0ee Retention Strate'ie! %e#"!
or'aniCation! "ro6ide e$$e4ti6e em"#o0ee 4ommuni4ation to im"ro6e 4ommitment and
en%an4e ork$or4e !u""ort $or ke0 4or"orate initiati6e!1
MAIN !IVE STRATE"IES !OR RETAININ" EMPLOYEES02
Retainin' em"#o0ee! and de6e#o"in' a !tab#e ork $or4e in6o#6e! a to9!te" "ro4e!! 9
under!tandin' %0 em"#o0ee! #ea6e in t%e $ir!t "#a4e, and de6e#o"in' and im"#ementin'
!trate'ie! to 'et t%em to !ta01
O6er4omin' t%e!e rea!on! re&uire! t%e im"#ementation o$ $i6e di!tin4t 4ate'orie! o$
retention !trate'ie!/
:1 En'ironmenta* !trate'ie! 4reate and maintain a ork"#a4e t%at attra4t!, retain!
and nouri!%e! 'ood "eo"#e1
)1 Re*ations(i+ !trate'ie! $o4u! on %o 0ou treat 0our "eo"#e and %o t%e0 treat
ea4% ot%er1
51 Su++ort !trate'ie! in6o#6e 'i6in' "eo"#e t%e too#!, e&ui"ment and in$ormation to
'et t%e ?ob done1
E1 "ro@t( !trate'ie! dea# it% "er!ona# and "ro$e!!iona# 'rot%1
+1 $om+ensation !trate'ie! 4o6er t%e broad !"e4trum o$ tota# 4om"en!ation, not ?u!t
ba!e "a0 and !a#ar01
=*
BEST PRA$TI$ES0 EMPLOYEE RETENTION
In bui#din' retention "ro'ram!, t%ere are !ome more im"ortant !trate'ie! %i4% e>i!t a!
be#o /9
? A $HAN"IN" %OR !OR$E AND %ORPLA$E
Fundamenta# 4%an'e! are takin' "#a4e in t%e ork $or4e and t%e ork"#a4e t%at "romi!e
to radi4a##0 a#ter t%e a0 4om"anie! re#ate to t%eir em"#o0ee!1 2irin' and retainin' 'ood
em"#o0ee! %a6e be4ome t%e 4%ie$ 4on4ern! o$ near#0 e6er0 4om"an0 in e6er0 indu!tr01
Com"anie! t%at under!tand %at t%eir em"#o0ee! ant and need in t%e ork"#a4e and
make a !trate'i4 de4i!ion to "roa4ti6e#0 $u#$i## t%o!e need! i## be4ome t%e dominant
"#a0er! in t%eir re!"e4ti6e market!1
T%e $ier4e 4om"etition $or &ua#i$ied orker! re!u#t! $rom a number o$ ork"#a4e trend!,
in4#udin'/
• A robu!t e4onom0
• S%i$t in %o "eo"#e 6ie t%eir 4areer!
• C%an'e! in t%e un!"oken P4ontra4tP beteen em"#o0er and em"#o0ee
• Cor"orate 4o4oonin'
• A ne 'eneration o$ orker!
• Bab0 boomer! !trikin' out on t%eir on a$ter %ittin' 4or"orate 4ei#in'!
• C%an'e! in !o4ia# more!
• Li$e ba#an4e
=:
Con4urrent it% t%e!e trend!, t%e emer'in' ork $or4e i! de6e#o"in' 6er0 di$$erent
attitude! about t%eir ro#e t%e ork"#a4e1 Toda0M! em"#o0ee! "#a4e a %i'% "riorit0 on t%e
$o##oin'/
• Fami#0 orientation and Autonom0
• Sen!e o$ 4ommunit0
• Lua#it0 o$ #i$e i!!ue!
• 3o#unteeri!m
• F#e>ibi#it0 and non4on$ormit0
To %o#d t%e "eo"#e (em"#o0ee., itK! ne4e!!ar0 to ork 4ounter to "re6ai#in' trend!
4au!in' t%e ?ob 4%urnin'1
? $AREER < SEL! DEVELOPMENT02
It i! !o im"ortant BK4oC em"#o0ee! ant to "ro're!!1 Career de6e#o"ment i! t%e
re!"on!ibi#it0 o$ em"#o0ee, but 'i6in' a 4#ear #ine o$ !i'%t $or 4areer 'rot% to t%e
em"#o0ee i! t%e em"#o0erK! re!"on!ibi#it01 T%e e>tent to %i4% t%e em"#o0er a!!i!t! in
t%e "ro4e!! im"ro6e! bot% t%e re!"on!ibi#it0 beteen t%e em"#o0ee and em"#o0er and
4reate! more 6a#ue $or bot% "artie!1
T(e -om+an. -an en-oura:e t(is +ro-ess 9.02
? S%arin' in$ormation about $uture bu!ine!! 6i!ion and t%e !ki## !et! t%at i## be
needed1
? Mentorin' t%e em"#o0ee, 'i6in' 'uidan4e and !u''e!tion!1
? Fa4i#itatin' t%e trainin' t%at i## be "aid $or b0 t%e 4om"an01
=)
? $ULTURE AND ENVIRONMENT02
It ma0 !eem ob6iou! t%at em"#o0ee! i## tend to !ta0 it% an or'aniCation t%at make!
t%em $ee# 4om$ortab#e9 %ere !tre!! i! minimiCed , $u## !a$et0 mea!urementJe##ne!!
o44urred1 And t%e0 $ee# 6a#ued and re!"e4ted1 2oe6er , too man0 4om"anie! !ti##
o"erate it% a 4u#ture ba!ed on 4ontro# and $ear, rat%er t%an one t%at "ro6ide! e##
de$ined dire4tion and 6a#ue!, and em"%a!iCe! 4are $or 4u!tomer! and em"#o0ee! a#ike1
T%e im"#i4ation i! 4#ear/ AT%e more enri4%in' t%e ork en6ironment, t%e more #ike#0
to retain a !ta$$ o$ !ati!$ied, "rodu4ti6e em"#o0ee!1B
To maintain #o #e6e#! o$ turno6er and %i'% #e6e# o$ em"#o0ee !ati!$a4tion, $our t0"e!
o$ 4u#ture e>i!t!/9
? Cu#ture o$ 4%oi4e
? Cu#ture o$ ba#an4e
? Cu#ture o$ 4are
? Cu#ture o$ de6e#o"ment
? RE%ARDS AND RE$O"NITION PRO"RAMS02
,Moti'ate and retain t(e most 'a*ua9*e assets/
Em"#o0ee! ant to be re4o'niCed $or a ?ob e## done1 Reard! and re4o'nition
re!"ond to t%i! need b0 6a#idatin' "er$orman4e and moti6atin' em"#o0ee! toard
4ontinuou! im"ro6ement1 Reardin' and re4o'niCin' "eo"#e $or "er$orman4e not
on#0 a$$e4t t%e "er!on bein' re4o'niCed, but ot%er! in t%e or'aniCation a! e##1
@%en t%e reard !0!tem i! 4redib#e, reard! are meanin'$u#H %oe6er, i$ t%e reard
!0!tem i! broken, t%e o""o!ite e$$e4t i## o44ur1Unre4o'niCed and non6a#ued
"er$orman4e 4an 4ontribute to turno6er1 Re4o'nition $or a ?ob e## done $i##! t%e
em"#o0ee!M need to re4ei6e "o!iti6e, %one!t $eedba4k $or t%eir e$$ort!1
Mana:er must K offer t(e tan:i9*e intrinsi- re@ards t(at :i'e 'a*ue eC+erien-e,F
NELSON,5>>>&
=5
Re4o'nition !%ou#d be "art o$ t%e or'aniCationM! 4u#ture be4au!e it
4ontribute! to bot% em"#o0ee !ati!$a4tion and retention1 Reard! are one o$ t%e ke0! to
a6oidin' turno6er, e!"e4ia##0 i$ t%e0 are immediate, a""ro"riate, and "er!ona#1 A 2ar6ard
Uni6er!it0 !tud0 4on4#uded t%at or'aniCation! 4an a6oid t%e di!ru"tion 4au!ed b0
em"#o0ee turno6er b0 a6oidin' %irin' mi!take! and !e#e4tin' and retainin' to"
"er$ormer!1
? PAY , BENE!ITS AND IN$ENTIVES02
Mo!t em"#o0ee! $ee# t%at t%e0 are ort% more t%an t%e0 are a4tua##0 "aid1 T%ere i! a
natura# di!"arit0 beteen %at "eo"#e t%ink t%e0 !%ou#d be "aid and %at or'aniCation!
!"end in 4om"en!ation1 @%en t%e di$$eren4e be4ome! too 'reat and anot%er o""ortunit0
o44ur!, turno6er 4an re!u#t1 Pa0 i! de$ined a! t%e a'e!, !a#ar0, or 4om"en!ation 'i6en to
an em"#o0ee in e>4%an'e $or !er6i4e! t%e em"#o0ee "er$orm! $or t%e or'aniCation1
T%e em"#o0ee in4enti6e "ro'ram! %e#" 4om"anie! to /
? Promote em"#o0ee #o0a#t0 and retention
? Reard out!tandin' em"#o0ee "er$orman4e
? Moti6ate ke0 em"#o0ee be%a6ior!/ !a$et0, 4o!t !a6in'!, e##ne!!, 4u!tomer
!ati!$a4tion, &ua#it0, attendan4e and more
? Mea!ure "er$orman4e im"ro6ement
? EMPO%ERMENT02
T%e em"#o0ee need! to $ee# a !en!e t%at t%e0 are in 4ontro# o$ t%eir or#"#a4e o"tion!
!u4% a! $#e>ib#e ork !4%edu#e! to 'i6e t%e "oer o$ de4i!ion makin' et41
? LEADERSHIP02
To a 'reat e>tent , an em"#o0eeK! e>"erien4e at a 4om"an0 i! !%a"ed b0 %i! or %er Bo!!/
em"#o0ee! re#0 on !u"er6i!or! $or e6er0t%in' $rom 4ommuni4ation to "romotion! and
reard!1 Not !ur"ri!in'#0, a number o$ !tudie! !%o t%at ine$$e4ti6e !u"er6i!or! , t%at i!,
A bad bo!!e!B9are t%e #ar'e!t !in'#e $a4tor dri6in' em"#o0ee turno6er1 Com"anie! need to
=E
!e#e4t t%e ri'%t "eo"#e $or !u"er6i!or0 "o!ition!, and t%en o$$er t%em de6e#o"ment
o""ortunitie! to make !ure t%e0 4ontinue to en%an4e t%eir #eader!%i" and 4ommuni4ation
!ki##!1
? PRO!ESSIONAL "RO%TH,TRAININ" AND DEVELOPMENT/02
Toda0K! em"#o0ee kno t%at a !u44e!!$u# 4areer de"end! on 4on!tant
#earnin' and on "i4kin' u" !ki##! and e>"erien4e t%at i## make t%em more em"#o0ab#e in
t%e o"en market1 T%at mean! t%at a44e!! to on'oin' trainin' and de6e#o"ment i!
im"ortant to t%em, and a !tron' in4enti6e to !ta0 it% a 4om"an01
T%e!e "ro'ram! "ro6ide a "o!iti6e "er4e"tion to em"#o0ee! t%at t%eir em"#o0er i! i##in'
to in6e!t in t%eir 4ontinued "ro$e!!iona# 'rot%, %i4% i## not on#0 %a6e a "o!iti6e
im"a4t on "rodu4ti6it0 and e$$e4ti6ene!! in t%eir re!"e4ti6e ro#e!, but a#!o on t%e
em"#o0erM! abi#it0 to retain indi6idua# em"#o0ee!1T%i! i! a $undamenta# "arado> o$
em"#o0ee retention1 B0 "re"arin' "eo"#e to #ea6e, a 4om"an0 4an a4tua##0 en4oura'e
t%em to !ta01
? MEANIN"!UL %OR AND O%NERSHIP02
Peo"#e need to kno t%e0 are makin' a di$$eren4e and bein' e$$e4ti6e in t%eir ?ob!1
E>"e4tation! and ?ob re!"on!ibi#itie!Jde!4ri"tion need to be 4#ear#0 de$ined !o t%at
em"#o0ee! 4an under!tand t%eir ro#e!and !ee %o t%eir ?ob! are #inked to t%e
or'aniCationK! o6era## !u44e!!1 Em"#o0ee! mu!t a#!o be in6o#6ed in determinin' %o
ork i! done, !o t%at t%e0 %a6e a !en!e o$ oner!%i" and an o""ortunit0 to 4ontribute to
im"ro6ement! in t%e 4om"an0K! "er$orman4e1
? !AMILY !RIENDLY BENE!ITS 02
Bene$it! t%at make it ea!ier $or em"#o0ee! to ba#an4e ork it% $ami#0 ob#i'ation! %a6e
been !%on to in4rea!e "rodu4ti6it0, redu4e ab!enteei!m and #oer turno6er rate!1
=+
HR UPDATE
A! t%e #eadin' ed'e o$ bab0 , boomer! be4ome e#i'ib#e $or retirement, e>"ert! be#ie6e
t%at a## bu!ine!! !e4tor! i## need to be4ome more !trate'i4 about Identi$0in' , 4u#ti6atin'
and kee"in' !ta$$ it% 6ita# !ki##!1
TOOLS TO TUNE J UP RETENTION E!!ORTS02
E>"ert! !u''e!t $o##oin' ti"!/9
? FIND OUT @2AT EMPLODEES T2INN/
A e## 4ra$ted !ur6e0, admini!tered b0 an out!ide "ro6ider to en!ure 4on$identia#it0
4an be e## ort% t%e in6e!tment to %e#" a 4om"an0 "in"oint re4urrin' i!!ue! t%at
4ontribute to em"#o0ee turno6er or di!!ati!$a4tion1 A more $o4u!ed a""roa4% on t%i!
t%eme i! to identi$0 to" "er$ormer! and in6ite t%em to indi6idua# di!4u!!ion! on ?ob
!ati!$a4tion and 4areer "#annin'1
? SET A CLEAR AND CONSISTENT TONE FROM TOP/
In a )**+ S2RM (So4iet0 $or 2RM. ork"#a4e $ore4a!t
R o$ e>e4uti6e! !aid
em"#o0ee a#i'nment it% bu!ine!! 'oa#! a! im"ortant to o6era## !u44e!!1 2oe6er ,
man0 o$ t%o!e !ame #eader! do not e$$e4ti6e#0 4ommuni4ate ke0 bu!ine!! ob?e4ti6e! or
t%e non $inan4ia# e#ement! t%at make! t%e 4om"an0 di!tin4ti6e1 T%e e$$e4ti6ene!! o$ t%i!
!te" 4an be mea!ured in re'u#ar em"#o0ee en'a'ement !ur6e0! or in !ma##er $o4u! 'rou"!
%e#d on an annua# or !emi annua# ba!i!1
? STREN7T2EN T2E MANA7ER , EMPLODEE RELATIONS2IP/
Retention !tudie! 4on!i!tent#0 !%o t%at t%e !u"er6i!or , em"#o0ee re#ation!%i" i!
one o$ t%e bi''e!t $a4tor! in %et%er t%e orker 4%oo!e! to !ta0 or #ea6e a ?ob1
? CONSIDER FLEIIBLE @ORN ARRAN7EMENTS/
==
Near#0 =* R o$ em"#o0ee! in t%e S2RM !tud0 !aid A @ork J #i$e "ra4ti4e!B !u4% a!
$#e>time, te#e4ommutin' and 4om"re!!ed orkeek! , ere 6er0 im"ortant to ?ob
!ati!$a4tion1
? IN3EST IN A CULTURE OF LEARNIN7/
@%en time! 'et tou'%, 4om"anie! $re&uent#0 "u## ba4k !"endin' on 4on$eren4e!,
!eminar! and #earnin' o""ortunitie! to $o4u! !o#e#0 on da0 , to , da0 o"eration!1
2oe6er, t%at a""roa4% 4an !ti$#e ne idea!, 4reati6it0 and u#timate#0 #ead to orker
burnout1
B0 takin' t%e!e !te"!, t%e 4om"an0K! abi#it0 to kee" 'ood orker! 4an be im"ro6e
%en ne o""ortunitie! ari!e1
? CONDUCT EIIT INTER3IE@S @IT2 EMPLODEES @2O RESI7NS/
Feedba4k 4an be u!ed to make "o!iti6e 4%an'e!1
OR"ANIMATIONAL VISSION AND MISSION AS A $ORE DIMENSION IN
EMPLOYEE RETENTION02
Mi!!ion !tatement! are re4o'niCed a! a !tron' mana'ement too# t%at 4an moti6ate
em"#o0ee! and kee" t%em $o4u!ed on t%e "ur"o!e o$ t%e or'aniCation1 7i6en it!
!i'ni$i4ant and $undamenta# ro#e re#ati6e#0 #itt#e i! knon about %o mi!!ion are
"er4ei6ed b0 em"#o0ee! and %o t%o!e "er4e"tion! re#ate to ot%er or'aniCationa# attitude!
(e1'1 !ati!$a4tion. and be%a6ior! (e1'1 turno6er.
In 'enera#, t%e em"#o0ee! e>"re!!ed "o!iti6e attitude! toard! t%e mi!!ion o$ t%e
or'aniCation and t%o!e attitude! are re#ated to em"#o0ee !ati!$a4tion 8 intention! to
remain! it% t%e or'aniCation1
=-
REVIE% O! LITERATURE IN THIS RE"ARD02
ADe6e#o"in' 4om"re%en!i6e 6i!ion 8 mi!!ion !tatement! i! !een a! 4riti4a# to !u44e!! o$
or'aniCation in a## !e4tor! A,$OLLIUS # PORRAS,1==1/&
%i**iams ,5>>5/$urt%er !u''e!ted t%at Aor'aniCation it% a more 4om"re%en!i6e mi!!ion
!tatement do better $inan4ia##0 t%an t%o!e it% an ambi'uou! mi!!ion or no mi!!ion at
a##B1
AA mi!!ion !tatement identi$ie!, o"erationa# ob?e4ti6e!, a!!i!t! in 'oa# dire4ted be%a6ior
o$ !ta$$, de!4ribe! "er$orman4e !tandard! and !"eak! to or'aniCationa# !ur6i6a#B , Smit(,
Head., $arson # $arson ,5>>1/F
A 'ood mat4% beteen em"#o0ee and or'aniCationa# 6a#ue! i! re#ated to em"#o0ee
attra4tion, !ati!$a4tion and turno6er , %er9e* # "i**i*and ,1===/
=<
IN$REASIN" EMPLOYEE RETENTION THROU"H EMPLOYEE
EN"A"EMENT02
%HAT IS EMPLOYEE EN"A"EMENT02
It i! a! t%e #e6e# o$ 4ommitment and in6o#6ement t%at an em"#o0ee %a!
toard! t%e or'aniCation and it! 6a#ue!1 It i! 6ita# to an0 bu!ine!! or'aniCation t%at !eek!
not on#0 to retain it! em"#o0ee!, but a#!o to in4rea!e t%eir "er$orman4e #e6e#1
EN"A"AMENT i! not a one , time "ro4e!! or a !%ort , term initiati6e, itK! an on'oin'
and !tead0 "ro're!! %i4% re&uire! $o##oin' initiati6e! to be taken b0 or'aniCation to
bui#d %i'% #e6e#! o$ em"#o0ee en'a'ement/9
? In$ormin' em"#o0ee! about t%e 4%an'e
? In6itin' em"#o0ee!K !u''e!tion!
? In4or"oratin' 3a#uab#e !u''e!tion!
? Li!tenin' to "rob#em!
? Su""ortin' at e6er0 !ta'e o$ t%e im"#ementation "ro4e!!
%HY IS IT SO IMPORTANTP
A EMPLODEE EN7A7EMENT A en!ure! t%e !u44e!!$u# e>e4ution o$ an0 bu!ine!!
!trate'01 En'a'ed em"#o0ee! are t%e 4om"etiti6e ad6anta'e o$ an or'aniCation and "#a0
t%e mo!t im"ortant ro#e in t%e im"#ementation o$ t%eir or'aniCationK! bu!ine!! initiati6e!1
T%ere i! a !i'ni$i4ant #ink beteen em"#o0ee en'a'ement and "ro$itabi#it01
DRIVERS O! EMPLOYEE EN"A"EMENT02
T%e !ur6e0 4ondu4ted b0 A Bu!ine!! Toda0B identi$ie! $o##oin' dri6er!/
? PEOPLE J LUALITD
=;
? @ORN J COMPENSATION
? OPPORTUNITIES
!A$TORS O! EN"A"EMENT02
Man0 or'aniCationa# $a4tor! in$#uen4e em"#o0ee en'a'ement and retention !u4% a!/9
? Em"oerment
? Fair 8 a""ro"riate reard re4o'nition 8 in4enti6e !0!tem!
? A 4u#ture o$ Re!"e4t %ere out!tandin' ork i! 6a#ued1
? Se#$ de6e#o"ment 8 a4%ie6ement!
? Creati6it0 and a6ai#abi#it0 o$ 4on!tru4ti6e $eedba4k 8 mentorin'1
? Ad6an4ement 8 %i'% #e6e#! o$ moti6ation and #eader!%i"
? E4onomi4 !e4urit0 (or ea#t%.
? En?o0in' 4oorker re#ation!%i"! a$$e4t em"#o0ee en'a'ement !i'ni$i4ant#01
HO% TO DEVELOP EMPLOYEE EN"A"EMENT0
? To" mana'ement endor!ement
? A ork en6ironment to 4%eri!%
? Inno6ati6e #eader!%i"
? C#ear 'rot% tra?e4torie!
? Aone !te" u" A $rom 4ommitment
EMPLOYEE DISEN"A"EMENT0 THE DETERRENT EVIL02
It 4an re!u#t in/9
? In4rea!ed em"#o0ee ab!enteei!m
-*
? De4rea!ed !e#$ e!teem
? Tran!$errin' t%eir 'ained kno#ed'e and e>"erti!e to anot%er ork"#a4e
? Redu4ed ork "er$orman4e
? @ork #i$e imba#an4e
? @a!tin' time and mone0 in6e!ted in trainin' and de6e#o"ment "ro'ram! $or t%e
e>i!tin' orker!1
-:
MEASURIN" EMPLOYEE TURNOVER
Mo!t or'ani!ation! !im"#0 tra4k t%eir 4rude turno6er rate! on a mont% b0 mont% or 0ear
b0 0ear ba!i!1 T%e $ormu#a i! !im"#0/
Tota# number o$ #ea6er! o6er "eriod > :**
A6era'e tota# number em"#o0ed o6er "eriod
T%e tota# $i'ure in4#ude! a## #ea6er!, e6en "eo"#e %o #e$t in6o#untari#0 due to di!mi!!a#,
redundan40 or retirement1 It a#!o make! no di!tin4tion beteen $un4tiona# (i1e bene$i4ia#.
turno6er and t%at %i4% i! d0!$un4tiona#1
Crude turno6er $i'ure! are u!ed b0 a## t%e ma?or !ur6e0! o$ em"#o0ee turno6er, in4#udin'
t%e ma?or CIPD and CBI !ur6e0! t%at are 4arried out ea4% 0ear1 So t%e0 are ne4e!!ar0 $or
e$$e4ti6e ben4%markin' "ur"o!e!1 2oe6er, it i! a#!o u!e$u# to 4a#4u#ate a !e"arate $i'ure
$or 6o#untar0 turno6er and to 4on!ider !ome o$ t%e more 4om"#e> em"#o0ee turno6er
indi4e! %i4% take a44ount o$ 4%ara4teri!ti4! !u4% a! !eniorit0 and e>"erien4e1
A !tabi#it0 inde> indi4ate! t%e retention rate o$ e>"erien4ed em"#o0ee!1 Like turno6er
rate!, t%i! 4an be u!ed a4ro!! an or'aniCation a! a %o#e or $or a "arti4u#ar "art o$ it1 T%e
u!ua# 4a#4u#ation $or t%e !tabi#it0 inde> i!/
Number o$ #ea6er! it% one or more 0ear! !er6i4e > :**
Number em"#o0ed a 0ear a'o
-)
-5
RESEAR$H METHODOLO"Y02
1& NATURE AND TYPE O! STUDY02
T%e !tud0 o$ %uman re#ation! i! an e>treme#0 4om"#e> area %ere e>terna#
indu!tr0 en6ironment intera4t it% 4om"an0K! interna# "o#i4ie! and "ra4ti4e! in a 6ariet0
o$ a0!1 T%i! re!ear4% !tud0 a! ADe!4ri"ti6e t0"eB o$ re!ear4% !tud0 be4au!e it in4#ude!
!ur6e0! and $a4t9 $indin' en&uirie! o$ di$$erent kind! and de!4ri"tion o$ !tate o$ a$$air! a!
it a! e>i!t! at "re!ent1
5& TOOLS USED !OR RESEAR$H02
T%e &ua#it0 and re#iabi#it0 o$ re!ear4% !tud0 i! de"endent on t%e in$ormation
4o##e4ted in t%e !4ienti$i4 and met%odo#o'i4a# manner1 AEm"#o0ee !ati!$a4tion !ur6e0B i!
t%e be!t met%od $or Em"#o0ee retention "ro'ram1 T%e &uanti$iab#e (Em"#o0ee retention
!ur6e0. !ur6e0 &ue!tionnaire! and "er!ona# inter6ie! ere main ea"on to e>tra4t
in$ormation $rom t%e re!"ondent!1 T%e!e &ue!tionnaire! ere !"e4i$i4a##0 de!i'ned to
determine !ome ba!i4 $a4t! and o6era## mea!ure o$ em"#o0ee "er4e"tion, attitude!,
moti6ation, 4om"en!ation, ork en6ironment under#0in' 4au!e! o$ em"#o0ee
di!!ati!$a4tion toard! or'aniCation t%at a$$e4t rea# bu!ine!! metri4!, #ike , Em"#o0ee
retention rate! and turno6er1
SOUR$ES O! DATA02
,a/ NATURE O! DATA2
T%e main !our4e o$ data u!ed $or t%i! re!ear4% !tud0 a! APrimar0 !our4eB
be4au!e t%e data 4o##e4tion a! o44urred dire4t#0 to t%e ABB em"#o0eeK! t%rou'%
-E
&ue!tionnaire ($i##ed u". and "er!ona# Inter6ie!1 T%e !tru4ture o$ &ue!tionnaire a! o$
mu#ti"#e 4%oi4e o$ &ue!tion!1
SURVEY BASED ON THE EMPLOYEE SATIS!A$TION !ORM02
To a!!e!! ABB em"#o0eeK! "er4e"tion re'ardin' ork en6ironment, 4or"orate
4ommuni4ation, trainin' and de6e#o"ment "ro'ram, ork $or4e moti6ation and
en'a'ement, 4om"en!ation, "a0 and o6era## !ati!$a4tion toard! t%e or'aniCation and to
a44umu#ate t%e em"#o0eeK! !u''e!tion! re'ardin' t%e ARetention Pro'ramB(%o !%ou#d
retain t%e em"#o0ee! in ABB.1
A tota# o$ around :** !ur6e0 $orm! ere di!tributed to t%e ABB em"#o0eeK! o$
midd#e #e6e# mana'ement "#a4ed in 6ariou! de"artment!1 Some i!!ue! ere di!4u!!ed
it% !e6era# em"#o0ee! t%at ere re#e6ant to t%e re!ear4% !tud0 and a! a re!u#t ne idea!
ere $ramed1
,B/ METHODS O! DATA $OLLE$TON02
T%e met%od o$ data 4o##e4tion a! on AOb!er6ationa# ba!eB t%rou'% &ue!tionnaire
rat%er t%an 4ommuni4ationa# ba!e1 On#0 t%e "ur"o!e o$ t%e !tud0 a! e>"#ained to a##
re!"ondent! in order to 'et 'ood re!"on!e1
,$/ SAMPLIN" DESI"N,TE$HNIDUES O! SAMPLIN"/02
In t%i! !tud0, t%e Probabi#it0 (Random. !am"#in' i! u!ed1 In ASim"#e Random
Sam"#in'B met%od ,t%e 4%an4e! o$ an0 "arti4u#ar unit (item. in t%e "o"u#ation bein'
!e#e4ted i! knon, i1e, t%e !am"#in' o"eration i! 4ontro##ed1 T%e randomne!! i! in6o#6ed
in t%e !e#e4tion "ro4e!! t%u! t%e e!timate! o$ !am"#in' error 4an be made1
,D/ SAMPLE SIME02
-+
T%e !am"#e !iCe $or t%e !ur6e0 a! +* em"#o0ee! o$ ABB 4on!i!tin' o$ a## t%e
de"artment!1
DATA ANALYSIS AND INTERPRETATION02
In order to e>"re!! t%e 4om"#e> data into 4on4i!e and #o'i4a#
$orm t%e data 4o##e4ted a! tran!$ormed into t%e $orm o$ Atab#e! and Pie 4%art dia'ramB1
1& Measure o'era** em+*o.ee satisfa-tion to@ards or:ani?ation0
T%e $o##oin' &ue!tion! ere in4#uded in t%i! !e4tion/9
? U" to %at e>tent 0ou are !ati!$ied it% 0our ?ob and "o!t at 4om"an0 AABBBU
:.:**R ). -+R 5. +*R E. )+R
ANALYSIS0
? U" to %at e>tent 0ou are !ati!$ied it% 2RD a4ti6itie! 8 2R de"t1U
:. :**R ). -+R 5. +*R E. )+R
-=
1
22%
2
42%
3
30%
4
6%
1
2
3
4
ANALYSIS02
? U" to %at e>tent 0ou are a'ree it% or'aniCationa# 'oa#, 6i!ion 8 mi!!ionU
ANALYSIS0
$ON$LUSION02
? E) R o$ em"#o0ee! are -+R !ati!$ied it% 4urrent ?ob and "o!t
? 5< R o$ em"#o0ee! are +* R !ati!$ied it% 2RD a4ti6itie! and 2R de"t1
? += R o$ em"#o0ee! are a'ree it% or'aniCation 'oa#, 6i!ion and mi!!ion
It mean! t%at out o$ :**, #e!! t%an 5* R o$ em"#o0ee! are o6era## !ati!$ied toard!
or'aniCation and remainin' are di!!ati!$ied1
--
agree
56%
somewhat
agree
38%
ot
a!!"#$a%"e
5%
&#sagree
1%
agree
somewhat agree
ot a!!"#$a%"e
&#sagree
1
8%
2
30%
3
38%
4
24%
1
2
3
4
5& EMPLOYEE LOYALTY02
T%e $o##oin' &ue!tion! ere in4#uded in t%i! "art/9
? P#ea!e indi4ate t%e number o$ 0ear! 0ou %a6e orked in 0our 4urrent ?obU
ANALYSIS02
? 2o mu4% be#on' ne!! 0ou %a6e it% t%e or'aniCationU
:. )+R ). +*R 5. -+R E. :**R
-<
"ess
tha 1
'ear
32%
1(3
'ears
48%
4(5
'ears
4%
more
tha )#*e
'ears
16%
"ess tha 1 'ear
1(3 'ears
4(5 'ears
more tha )#*e
'ears
ANALYSIS0
? @ou#d 0ou #ike to ?oin anot%er or'aniCationU
ANALYSIS02
+ES
64%
,O
30%
,O
CO--E
,T
6%
+ES
,O
,O CO--E,T
$ON$LUSION02
? E< R O$ em"#o0ee! are orkin' in t%i! or'aniCation $rom #a!t :95 0ear!1
? Ma> +* R o$ em"#o0ee! %a6e -+R be#on'ne!! it% t%i! or'aniCation1
? =E R o$ em"#o0ee! ant to ?oin anot%er or'aniCation $or better 4areer 'rot% and
"ro!"e4t!1
It mean! t%at9
A""ro>imate#0 more t%an +* R o$ em"#o0ee! are #o0a# to t%e or'aniCation1
-;
1
12%
2
14%
3
50%
4
24%
1
2
3
4
7& %OR ENVIRONMENT02
? 2o i! 0our ork en6ironmentU
ANALYSIS02
.oo&
65%
Best
13%
/orst
2%
,ot
a$$or&#
g to 'o0
20%
.oo&
Best
/orst
,ot a$$or&#g to
'o0
$ON$LUSION02
On#0 -* R o$ ABB em"#o0ee! are !ati!$ied about t%eir ork en6ironment J
4u#ture1
8& %OR!OR$E MOTIVATION AND EN"A"EMENT02
T%e $o##oin' &ue!tion! ere e!timated durin' t%i! "ortion/9
? Doe! 0our mana'erJ!u"er6i!or 4#ear#0 de$ine 0our ?ob re!"on!ibi#itie!J?ob
de!4ri"tionU
ANALYSIS02
treme "re!!ure !ituationU
ANALYSIS02
imate#0 -*R ABB em"#o0ee! are a'reed about ork$or4e moti6ation and
en'a'ement "ro6ided b0 mana'er and !u"er6i!or!1
+1 $ORPORATE $ULTURE/9
$ON$LUSION02
"erien4e1 T%ere are !ome $o##oin' rea!on! to !ta0 in
t%i! or'aniCation 'i6en b0 ABB em"#o0ee!/9
:1 ABB brand and re"utation(MNC.
)1 Market #eader in "oer and automation
51 Be!t inter"er!ona# re#ation!%i", Et%i4! and 6a#ue!
E1 7ood ork en6ironmentJ 4u#ture1
+1 A6ai#abi#it0 $or 4areer 'rot% and ad6an4ement
=1 Po!iti6e !u""ort $rom !u"erior! and mana'er!
-1 F#at !tru4ture ( No %ierar4%0.
4e##ent Better 7ood Poor
ABB COMPANY EMPLOYEE RETENTION PROJECT FILE
A
PROJECT REPORT
ON
EMPLOYEE RETENTION
Undertaken at
ABB LIMITED, FARIDABAD
Submitted toard! "artia# $u#$i##ment o$ t%e re&uirement $or
t%e aard o$ t%e de'ree o$
Master of Business Administration
O$
MAHARSHI DAYANAND UNIVERSITY, ROHTA
(Se!!ion )**+,*-.
Submitted to/ Submitted b0/
DR1 2ARIOM S2ARMA TARUNA 3ERMA
Fa4u#t0 (2R. MBA (5
RD
. Seme!ter
INSTITUTE O! MANA"EMENT # TE$HNOLO"Y
(A""ro6ed b0 AICTE, 7o6t1o$ India 8 A$$i#iated to M1 D1 Uni6er!it0, Ro%tak.
(AN NBA 9 ACCREDITED INSTITUTE.
Near Sai D%am, Ti'aon Road,
Faridabad ,
:**)Te#/ *
;9)5-*:> -ountries andem+*o.s a9out 1>8,>>> +eo+*e&F
=
!A$TS ABOUT ABB02
• 2ead&uarter! / Furi4%, SitCer#and
• Order! in )**+ / G)51= bi##ion
• Re6enue! in )**+ / G))1E bi##ion
• Li!ted on Sto4k%o#m, Si!! 8 Ne Dork E>4%an'e!H traded on 3irt9I
15> YEARS O! TE$HNOLO"I$AL LEADERSHIP
T%e %i!tor0 o$ ABB 'oe! ba4k to t%e #ate nineteent% 4entur0, and i! a #on' and i##u!triou!
re4ord o$ inno6ation and te4%no#o'i4a# #eader!%i" in man0 indu!trie!1
2a6in' %e#"ed 4ountrie! a## o6er t%e or#d to bui#d, de6e#o" and maintain t%eir
in$ra!tru4ture!, ABB %a! in re4ent 0ear! 'one o6er $rom #ar'e9!4a#e !o#ution! to
a#ternati6e ener'0 and t%e ad6an4ed "rodu4t! and te4%no#o'ie! in "oer and automation
t%at 4on!titute it! Indu!tria# IT o$$erin'1
T%ere are man0 inno6ation! t%at ABB %a! brou'%t to t%e or#d in t%e "a!t
* 0ear!1 T%e4om"an0 ork! it% 4u!tomer! to en'ineer and in!ta## netork!, $a4i#itie! and "#ant!
it% "arti4u#ar em"%a!i! on en%an4in' e$$i4ien40 and "rodu4ti6it0 $or 4u!tomer! t%at
!our4e, tran!$orm, tran!mit and di!tribute ener'01
-
A BRIE! HISTORY O! ABB
ASEA G BB$ H ABB02
T%e AABB 7rou"B a! $ormed in :;"erti!e and !tron' #o4a# in!i'%t1
Inturn, 4u!tomerM! !u44e!! i! e4%oed a! 3a#ue $or t%eir !take%o#der! i1e1 !%are%o#der!,
em"#o0ee! and t%e 4ommunitie! in %i4% t%e0 o"erate&
ABB India !er6e! uti#it0 and indu!tr0 4u!tomer! it% t%e 4om"#ete ran'e o$ ABBK!
o$$erin'!1 T%e 4om"an0 %a! a 6a!t in!ta##ed ba!e, e>ten!i6e #o4a# manu$a4turin' at < unit!
and a 4ountr0ide marketin' and !er6i4e "re!en4e1 A! a !trate'i4 t%ru!t to !tandard
"rodu4t! bu!ine!!, ABB %a! a nationa# 4%anne# "artner netork, %i4% en!ure!
'eo'ra"%i4a# rea4% and "enetration o$ it! "rodu4t! and !er6i4e!1
K ABB -onsiders INDIA as a L(i
+riorit. fo-us -ountr.A and is -ommitted toeC+andin: its a-ti'ities (ere& T(ere @i** 9e an in-reasin: -ost mi:ration from t(e
%est to -ountries su-( as India&F B. !red ind*e ,President # $EO, ABB "rou+/
In order to #e6era'e IndiaK! intrin!i4 te4%no#o'0 !tren't%! and t%e 6a!t "oo# o$
%i'%#0 &ua#i$ied !o$tare "ro$e!!iona#!, ABB %a! !et u" a '#oba# R8D Center in
Ban'a#ore, %i4% $o4u!e! on Indu!tria# IT de6e#o"ment and de"#o0ment1 It a#!o %e#"!
maintain and !u""ort ran'e o$ !o$tare inten!i6e "rodu4t! and a4t! a! a "artner $or t%e
ABB R8D 4enter! a! e## a! bu!ine!! area! it%in t%e 'rou"1
)*
ABB India %a! < manu$a4turin' unit!, )= marketin' o$$i4e!, < !er6i4e 4enter! and 5
trainin' 4enter! a4ro!! t%e 4ountr01 In addition to t%e!e, t%e 4om"an0 %a! a 4%anne#
"artner netork o$ around +** "artner! to $a4i#itate market "enetration $or it! $a!t
'roin' !tandard "rodu4t! and !er6i4e! bu!ine!!1 ABB IndiaK! 4a"ita# e>"enditure in
)**= in4#uded an in6e!tment o$ USG :*1; mi##ion1
):
BOARD OF DIRECTORS
Mr&Dines( Pa*i@a* Mr&Ra'i U++a* Mr&Peter Smits
,$(airman/ ,Vi-e2$(airman # ,Dire-tor/
Mana:in: dire-tor/
Mr&Peter Leu++ Mr&Nasser Mun;ee Mr&N&S&Ra
a'an,Dire-tor/ ,ECterna* Dire-tor/ ,Dire-tor/
Mr&Tom Sioe)'ist
,Dire-tor/
))
ABB BUSINESS IN INDIA 02
ABB, t%e or#dM! no1 : in "oer te4%no#o'ie!, "ro6ide! uti#itie!, indu!trie! and 4%anne#
"artner! it% a44e!! to a ri4% "ort$o#io o$ te4%no#o'ie!1 Bu!ine!!e! are/9
:& PO%ER TE$HNOLO"Y
5& AUTOMATION TE$HNOLO"Y
7& BUILDIN" SYSTEMS
PO%ER TE$HNOLO"Y DIVISION IN INDIA
Poer Te4%no#o'0 Di6i!ion in India %a! t%e $o##oin' Produ4t and Pro?e4t Bu!ine!!e!/9
PROIE$T BUSINESSES02
• Po@er s.stems
T 8 D S0!tem!, Uti#it0 4on!u#tin' and "oer !0!tem !er6i4e! , 23DC 8 FACTS
• Uti*it. automation
Netork Mana'ement, Sub!tation Automation, P#ant Automation, Uti#it0
Communi4ation1
PRODU$T BUSINESSES02
• Hi
Vo*ta:e Produ-ts23 4ir4uit braker! , Di!4onne4tor!, 23 Ca"a4itor!, In!trument Tran!$ormer!1
• Medium Vo*ta:e Produ-ts
M3 Sit4% 7ear! and Sub!tation Automation Produ4t!1
• Transformers
Poer Tran!$ormer! and Di!tribution Tran!$ormer!
)5
AUTOMATIOM TECHNOLOGY DIVISION IN INDIA
Automation Te4%no#o'0 Di6i!ion in India %a! Produ4t Bu!ine!!e!, Pro?e4t Bu!ine!!e!
and Manu$a4turin' Automation1
PRODU$T BUSINESSES02
• Pro-ess Automation
Petro#eum, 4%emi4a#, Con!umer, Minera#!, Minin', Pa"er and Meta#! Indu!trie!1
• Automation +rodu-ts
Motor!, Dri6e!, Poer E#e4troni4!, In!trumentation!, 2T Ma4%ine!, E#e4tri4a# irin'
A44e!!orie! and ot%er #o 6o#ta'e "rodu4t!
• Manufa-turin: Automation
Roboti4! and re#ated !0!tem! $or Manu$a4turin', Con!umer and Automati6e
indu!trie!1
BUILDIN" SYSTEM DIVISION IN INDIA
ABB India o$$er! a !in'#e indo a""roa4% $or t%e entire !"e4trum o$ bui#din' !0!tem!1
Com"#ete bui#din' !o#ution! under one roo$9
• Commer4ia# 8 Indu!tria# Bui#din'!
• In$ra!tru4ture 8 Indu!trie!
• P%arma4euti4a#! , Biote4%no#o'0 and 2ea#t%4are
• Poer "#ant!, Marine and o$$!%ore
)E
LO$ATIONS IN INDIA02
)+
ABB PRODUCTS(BRANCHES) IN INDIA
)=
)-
)<
);
Mo'in: Around ABB J O9;e-ti'es
T(e main o9;e-ti'es of ABB -om+an. are02
• 3a#ue 4reation
• Strate'i4 Bu!ine!! ob?e4ti6e! o$ !u""#0in' !0!tem!, "rodu4t!, en'ineerin' 8
!er6i4e! to t%e re'iona# 4u!tomer!1
• Produ4t! de6e#o"ment( 4%an'e 8 im"ro6ement ba!ed on 4u!tomerK! need 8
e>"e4tation!.
• Re'u#ar !0!tem re6ie in a44ordan4e it% !tandard and bu!ine!! need! to en!ure
it! 4ontinuin' !uitabi#it0, ade&ua40 and e$$e4ti6ene!
• E$$i4ien40 'ain
• Im"ro6ed tran!"aren40 and re"ortin' &ua#it0
• En6ironment and o44u"ationa# %ea#t% 8 Sa$et0 ob?e4ti6e!
• En%an4ed 4om"etiti6ene!!
• Com"#ian4e and interna# 4ontro#!
• Ba!ed on a 'rou" , ide !%ared !trate'0 a!!i'nin' 4#ear ro#e! and re!"on!ibi#itie!
to ke0 !take %o#der!
• U!in' t%e internationa# a!!i'nment "ro4edure to $a4i#itate internationa# tran!$er!
b0 en!urin' 4on!i!ten40 and 4o%eren4e1
HEAD O!!I$E< RE"ISTERED O!!I$E02
)
ND
FLOOR, EAST @IN7
N2ANIJA B2A3AN
E;, RACE COURSE ROAD,
BAN7LORE9 +=***:
5*
INDIA
OR"ANIMATIONAL STRU$TURE
ABB $ULTURE
5:
$USTOMERS O! ABB 2 INDIA 02
• Re#ian4e Ener'0
• 20undai
• Dr1Redd0K!
5)
• Samte#
• DMRC
• 7ra!im
• ON7C
• Tata !tee#
• Ba#4o
• B%arat $or'e
• 2P In6ent
• Indian Oi#
• 2indu!tan Petro#eum
,a/ MAIOR HUMAN RESOUR$E !UN$TION IN ABB02
55
,9/ HR PRO$ESS02
PER!ORMAN$E MANA"EMENT SYSTEM02
ABBK! "er$orman4e mana'ement !0!tem i! a !trate'i4 too#, to $a4i#itate em"#o0ee! to
a#i'n t%eir "er!ona# ob?e4ti6e! and e$$ort! to t%e or'aniCationK! ob?e4ti6e!1 ItK! a "a"er#e!!
PMS, %i4% 4an be a44e!!ed t%rou'% Ca$O92R (Em"#o0ee !e#$ !er6i4e too#.
Ca$O92R %e#"! em"#o0ee! to 6ie, 4reate 8 maintain data an0 time, an0%ere
t%rou'% t%eir eb9bro!er1
TRAININ" AND EVENT MANA"EMENT SYSTEM02
ABBK! trainin' and e6ent mana'ement !0!tem i! a too# t%at %e#"! em"#o0ee! to
de6e#o" t%eir !ki##! and 4om"eten4ie! in #ine it% bu!ine!! need!1 T%e trainin' need! are
bot% mana'er! re4ommendation! a! e## a! em"#o0ee! !e#$ initiati6e!1 ABBK! trainin' 8
e6ent mana'ement i! a'ain an on#ine too# a44e!!ib#e t%rou'% Ca$O92R1
IN$ENTIVE S$HEMES02
5E
T%e 6ariab#e "a0 4om"onent (3CTC. o$ t%e tota# 4o!t to 4om"an0 (CTC. $or
mana'ement !ta$$, re$#e4t! ma>imum earnab#e amount t%at an em"#o0ee 4an earn ba!ed
on "er$orman4e 1T%e in4enti6e "#an!, ba!ed on %i4% t%e 6ariab#e "a0 i! "aid out are
$o##o!1 T%ere are t%ree kind! o$ in4enti6e "#an! t%at are a""#i4ab#e to mana'ement !ta$$/9
:1 Standard In4enti6e "#an
)1 Re'ion marketin' In4enti6e "#an
51 At Sa#e! In4enti6e "#an
E2RE$RUITMENT PRO$ESS IN ABB02
T%e !te"! in t%e e9Re4ruitment "ro4e!! in ABB are 6er0 mu4% re#0in' on t%e e>i!tin'
e92R a""#i4ation!H no in o"erationa# u!e in more t%en )+ 4ountrie!1
,9/ BUSINESS ETHI$S AND INTE"RITY02
5+
BUSINESS ETHI$S ARE AN INTE"RAL PART O! ABBAS %AY O! DOIN" BUSINESS 0
T%e bu!ine!! "rin4i"#e! o$ re!"on!ibi#it0, re!"e4t and determination ere $ormu#ated to
'uide t%e a0 ABB em"#o0ee! be%a6e toard! ea4% ot%er, toard! t%e 4u!tomer! and
bu!ine!! "artner!, and toard! !%are%o#der! and t%e 4ommunitie! %ere ABB doe!
bu!ine!!1
ABB BUSINESS ETHI$S AND INTE"RITY 0
T%e 4redibi#it0 and inte'rit0 de"end! on %i'% bu!ine!! et%i4! !tandard!1 A## ABB
4om"anie! and em"#o0ee! mu!t 4on$orm to t%e re#e6ant #a! and re'u#ation! o$ t%e
4ountrie! in %i4% t%e0 o"erate and $u#$i## t%eir ob#i'ation! in a re!"on!ib#e manner1 T%e0
mu!t in!i!t on %one!t0 and $airne!! in a## a!"e4t! o$ t%eir bu!ine!! and e>"e4t t%e !ame
$rom t%eir "artner!1
T%e ABB 7rou" !ub!4ribe! to t%e ba!i4 "rin4i"#e! in t%e Internationa# C%amber o$
Commer4e, ICC, Ru#e! o$ Condu4t, :;;; Re6i!ed Edition and t%e OECD Con6ention
$rom :;;-1
BUSINESS ETHI$S STANDARDS 0
ABB e>"e4t! a## it! em"#o0ee! to u"%o#d t%e %i'%e!t !tandard! o$ et%i4a# be%a6ior and
inte'rit01
"UIDELINES 02
A""#0 PCero to#eran4eP to en!ure !tri4t ad%eren4e to #o4a# and internationa# #a!
and re'u#ation!, a! e## a! to ABB 7rou" et%i4a# !tandard!1
En!ure a## ABB bu!ine!! tran!a4tion! are $u##0 and $air#0 re4orded a44ordin' to
t%e 4om"an0M! a44ountin' "rin4i"#e!1
5=
• En!ure 4ontinuou! trainin' and aarene!! $or em"#o0ee! on %o to %and#e et%i4a#
i!!ue!, a! e## a! time#0 ad6i4e and 'uidan4e1
• Re'u#ar#0 monitor et%i4a# 4ondu4t and en!ure t%at a44e!!ib#e !0!tem! are in "#a4e
$or em"#o0ee! or ot%er! to re"ort "otentia# 6io#ation!1
ABB e>"e4t! $rom it! em"#o0ee! a !ound #e6e# o$ a##e'ian4e to t%e 7rou"1 T%i! in4#ude!
ad%eren4e to t%e 7rou"K! non94om"etition "o#i40 b0 "er!on! "o!!e!!in' !i'ni$i4ant
4on$identia# in$ormation1
T(e Human Resour-es Team in India
T%eir 4u!tomer! are t%e em"#o0ee! o$ ABB and t%eir bu!ine!! i! to "ro6ide !o#ution! and
!er6i4e! to t%em ontime, e6er0time ,an0time and to #e6era'e t%e %uman 4a"ita#1
Pre!entin' t%e 2R Team in ABB India1
Vadodara
Ban:a*ore
$or+orate Resear-( $entre Ban:a*ore
Ne@ De*(i
• An;an $(atter;ee
• A9(i;eet Iain
• Mano; umar Pat(a)
• A;a. Himans(u
• Vi;ender Sin
• Vi;a. $(aud(ar.
• Ran;ani Man;unat(
Mum9ai
Nas(i)
5-
DEPARTMENTAS IN ABB !BD&02
:1 MCBS (23AC,IBMS.
)1 PTPS , PTPD, EBOP, PT23, PTUA
51 RN
E1 SOI AUDIT
+1 SER3ICES
=1 TURBO C2AR7ER
-1 INSTRUMENTATION
BUSINESS PRO$ESSES IN ABB !ARIDABAD02
• Market Strate'0 8 Ana#0!i!
• Sa#e! 8 Contra4t Mana'ement
• Pro4e!! "#annin'
• De!i'n and De6e#o"ment (E>4#uded in t%e !4o"e o$ 4erti$i4ation.
• Su""#0 Mana'ement
? "ur4%a!in'
• Pro?e4t Mana'ement
? Order %and#in'
? Pro4e!! 6a#idation
? Identi$i4ation and tra4eabi#it0
? Contro# o$ non4on$ormin' "rodu4t
• Ser6i4e
• Mea!urement and Monitorin' Q Produ4tJSer6i4e
? Produ4t and Jor !er6i4e "er$orman4e
? Contro# o$ mea!urement and monitorin' e&ui"ment
• Su""ort Pro4e!!e!
? Re!our4e Mana'ement (2RM, In$ormation, In$ra!tru4ture.
5<
? Communi4ation and Cu!tomer Fo4u!, Do4ument and re4ord 4ontro#
5;
INTRODU$TION02
Em"#o0ee retention i! a ma?or 4au!e o$ 4on4ern toda0 not on#0 in t%e de6e#o"ed
e4onomie! #ike t%e US (%ere a #ot o$ attention! de6oted to t%i! i!!ue.a#!o in de6e#o"in'
e4onomie! #ike INDIA1 It i! e>"e4ted t%at b0 )*:*, t%ere ou#d be around :* mi##ion
more ?ob! t%an t%e number o$ &ua#i$iedJ !ki##ed "eo"#e in t%e ?ob market1 Ana#0!t!
attribute a 4ombination o$ $a4tor! #ike retirement o$ bab0 boomer! and #e!! number o$
orker! in t%e a'e 'rou" o$ )+ to 5+ a! rea!on! $or t%i! !%orta'e1 In a !4enario %ere
'ettin' ne "eo"#e to $i## t%e ?ob 6a4an4ie! i! di$$i4u#t, retainin' t%e e>i!tin' em"#o0ee!
be4ome ! a## t%e more 4riti4a# $or t%e 2R Mana'er!1
O6er to9t%ird!(-*R. o$ 2R mana'er! !tate t%at em"#o0ee retention i! a "rimar0
bu!ine!! 4on4ern, %i#e E*R o$ 2R mana'er! re"ort an in4rea!e in orker turno6er
durin' t%e "a!t ei'%teen mont%!1 T%ou'% 2R mana'er! 4urrent#0 $ind em"#o0ee retention
a bu!ine!! 4%a##en'e, #on' term demo'ra"%i4 4%an'e!, !u4% a! t%e retirin' Bab0 boomer
"o"u#ation %a6e t%e "otentia# to a''ra6ate t%i! i!!ue1
@it% t%e 'rot% in t%e e4onom0, a4&ui!ition and retention o$ em"#o0ee!
%a6e be4ome t%e ke0 4%a##en'e! $or 2R mana'er! in INDIA1 T%i! i!!ue attributed to t%e
4%an'in' #i$e!t0#e!, deat% o$ moti6ation, in4rea!in' o""ortunitie! $or a!!i'nment! abroad
and de4rea!in' #o0a#t0 toard! t%e or'aniCation1 Retention o$ e>4e##ent em"#o0ee! i! one
o$ t%e mo!t im"ortant 4%a##en'e! in or'aniCation! toda01
In order to addre!! t%e!e i!!ue!, t%i! !tud0 de!i'ned to %e#" em"#o0er! to better
under!tand turno6er and retention 4%a##en'e!1 T%i! !tud0 4on$irm! t%at em"#o0er! 6ie
ork$or4e retention a! one o$ t%e mo!t 4riti4a# i!!ue! $a4in' t%em and identi$ie! !trate'ie!
8 te4%ni&ue! $or retainin' t%e be!t em"#o0ee! %i#e t%e 4om"etition $or %uman ta#ent
e!4a#ate!1
E*
OBIE$TIVES02
• To $ind out t%e root 4au!e o$ e>i!tin' em"#o0ee turno6er "rob#em and retention need! o$
to" ta#ent1
• To mea!ure t%e em"#o0ee o6era## !ati!$a4tion1
• To mea!ure 4urrent area! o$ 4on4ern and identi$ie! o""ortunit0 $or Im"ro6ement1
• Create an im"#ementation "#an (!trate'0. to im"ro6e em"#o0ee retention1
• To im"ro6e mana'ementS! abi#it0 to %ire, moti6ate and retain !ta$$1
S$OPE 02
T%i! "ro?e4t i## 'enerate/9
• Ne !trate'ie! and te4%ni&ue! $or retainin' t%e em"#o0ee! in ABB
• Identi$i4ation o$ t%e root 4au!e(!. o$ em"#o0ee turno6er
• A !ummar0 o$ retention !trate'0
• An im"#ementation "#an to im"ro6e em"#o0ee retention and retention matri4e!1
• In4rea!e t%e 4om"an0 "rodu4ti6it0JPro$it1
RATIONALE02
Bu!ine!! !u44e!! i! more de"endent t%an e6er be$ore on AMANPO@ERB1 In
Toda0K! !4enario, it i! not di$$i4u#t to !ear4% out t%e Man"oer but it S! mu4% more
di$$i4u#t to $ind 8 Nee" t%e Ata#ented 8 Ski##ed Man"oerB %i4% 4ou#d be more
"ro$itab#e $or t%e or'aniCation 1
In toda0K! turbu#ent, o$ten 4%aoti4 en6ironment, 4ommer4ia# !u44e!! de"end!
on em"#o0ee! u!in' t%eir $u## ta#ent1 No, e6er0 or'aniCation ant! to be4ome a
ALeadin' and Su44e!!$u# Or'aniCationB in t%e #on' run1 ItK! on t%e 'roomin' a01 E6er0
4or"oration ant! to retain t%e e>4e##ent 8 !ki##ed em"#o0ee, i!!ue! re#atin' to Se#e4tion,
retention 8 Com"en!ation %a6e be4ome a## t%e more im"ortant1 Be4au!e Em"#o0ee! are
E:
#ike t%e !tron'e!t ABrand Amba!!ador! A$or e6er0 4om"an01 Retention o$ e>4e##ent
em"#o0ee! i! one o$ t%e mo!t im"ortant 4%a##en'e in or'aniCation! toda01
2en4e t%e rationa#e be%ind doin' t%i! "ro?e4t i! to AIdenti$0 t%e root 4au!e o$
attrition o$ em"#o0ee! and mana'ementK! abi#it0 to %ire, moti6ate and retain t%e !ta$$1 So
t%at it 4ou#d be4ome t%e Market Leader it% !ki##ed teamork and 4ou#d im"ro6e t%e
"rodu4ti6it01
!O$US AREA02
T%i! in9 %ou!e "ro?e4t !%o! t%at em"#o0ee attitude! are a better "redi4tor o$ $uture
em"#o0ee be%a6ior t%an "a!t be%a6ior1 T%e Fo4u! area are a! $o##o!/9
• O6era## Em"#o0ee !ati!$a4tion toard! or'aniCation
• Em"#o0ee Lo0a#t0
• @ork En6ironment(TeamorkJRea# 4o##aborati6e ork.
• @ork$or4e Moti6ation and En'a'ement
• Cor"orate Cu#ture
• Pa0 , Bene$it! and Com"en!ation
• Su"er6i!orJ4oorker! Re#ation!
• Trainin' 8 De6e#o"ment
• Cor"orate 4ommuni4ation!
• Em"#o0ee Em"oermentJE4onomi4 Se4urit0JRe!"e4t and
Ad6an4ement et41
E)
LIMITATIONS02
:1 In!u$$i4ient data $or "ro?e4t ork/9
T%e !am"#e !iCe i! !ma## to re$#e4t t%e o"inion o$ %o#e or'aniCation1
)1 La4k o $ Time/9
T%e time "ro6ided $or 4ondu4tin' t%e !tud0 a#!o #imited it! !4o"e and 4o6era'e1
51 An!er! 'i6en b0 re!"ondent! %a6e been be#ie6ed to be taken $or 'ranted to tru#0 re$#e4t
t%eir de!ire1
E1 Sometime! re!"ondent ere &uite en'a'ed it% t%eir ?ob to "ro6ide t%e a!!i!tan4e1
+1 It a! di$$i4u#t to $ind out t%e root 4au!e o$ attrition rate o$ ot%er or'aniCation!
(4om"etitor!. due to t%e ab!en4e o$ re#iab#e !our4e $or 4o##e4tin' t%e data1
E5
LITERATURE REVIE%
1& Sub!e&uent re!ear4% %a! indi4ated t%at a4tua# a#ternati6e! are a better "redi4tor o$
indi6idua# turno6er t%an "er4ei6ed o""ortunitie!1 Re!ear4% on t%e im"a4t o$
unem"#o0ment rate! a! a "ro>0 $or a4tua# o""ortunitie! in em"#o0ee turno6er
re6ea#ed t%at unem"#o0ment rate! a$$e4ted t%e ?ob9!ati!$a4tionJturno6er intent
re#ation!%i" but not a4tua# turno6er ,irs-(en9aum # Mano2Ne:rin, 1===/&
)1 Tan: et a*Ns ,5>>>/ !tud0 4on$irmed t%e #ink beteen 4ommitment and a4tua#
turno6er and "riffet( et a*Ns,5>>>/ ana#0!i! !%oed t%at or'aniCationa#
4ommitment a! a better "redi4tor o$ turno6er t%an o6era## ?ob !ati!$a4tion1
51 A**en # Me.er ,1==>/ in6e!ti'ated t%e nature o$ t%e #ink beteen turno6er and
t%e t%ree 4om"onent! o$ attitudina# 4ommitment/ a$$e4ti6e 4ommitment
re$er! to em"#o0ee!M emotiona# atta4%ment to, identi$i4ation it% and in6o#6ement in
t%e or'aniCationH 4ontinuan4e 4ommitment re$er! to 4ommitment ba!e on 4o!t! t%at
em"#o0ee! a!!o4iate it% #ea6in' t%e or'aniCationH and normati6e 4ommitment re$er!
to em"#o0ee!M $ee#in'! o$ ob#i'ation to remain it% t%e or'aniCation1 Put !im"#0,
em"#o0ee! it% !tron' a$$e4ti6e 4ommitment !ta0 it% an or'aniCation be4au!e t%e0
ant, t%o!e it% !tron' 4ontinuan4e 4ommitment !ta0 be4au!e t%e0 need to, and t%o!e
it% !tron' normati6e 4ommitment !ta0 be4au!e t%e0 $ee# t%e0 ou'%t to1 A##en and
Me0erM! !tud0 indi4ated t%at a## t%ree 4om"onent! o$ 4ommitment ere a ne'ati6e
indi4ator o$ turno6er1
E& "riffet( et a* ,5>>>/ $ound t%at o6era## ?ob !ati!$a4tion mode!t#0 "redi4ted
turno6er1 In a re4ent Ne Fea#and !tud0, BoCa** et a* ,5>>7/ $ound t%e main rea!on b0
$ar $or "eo"#e #ea6in' t%eir em"#o0er a! $or more intere!tin' ork e#!e%ere1 It i!
EE
'enera##0 a44e"ted t%at t%e e$$e4t o$ ?ob !ati!$a4tion on turno6er i! #e!! t%an t%at o$
or'ani!ationa# 4ommitment1
HERTMBER" T%O !A$TOR THEORY02
Io9 Dissatisfa-tion Io9 satisfa-tion
? @orkin' 4ondition! ork 4ontent
? Pa0 Autonom0
? 2our! T%e 4%a##en'e
? Re#ati6it0 A4%ie6ement!
? Se4urit0 Prai!e 8 re4o'nition
? La4k o$ "ro!"e4t! Re!"on!ibi#it0
? Poor 4ommuni4ation 7ood re#ation!%i"
? Poor or'aniCationa# !tru4ture
? La4k o$ dire4tion
(20'iene $a4tor!. (Moti6ation $a4tor!.
? Neit%er to are re#ated1
? No amount o$ e$$ort in redu4in' e#ement! re#ated to ?ob di!!ati!$a4tion i## re!u#t
in an0 4%an'e! to ?ob !ati!$a4tion 8 6i4e , 6er!a1 E1'1 I$ 0ou in4rea!e "a0, 0ou i##
not im"ro6e ?ob di!!ati!$a4tion1
E+
E=
E-
THE EIAS EMPLOYEE RETENTION %HEEL02
T%e $ir!t !te" to im"ro6in' em"#o0ee retention i! to under!tand %0 em"#o0ee! !ta0 it%
t%eir 4urrent or'aniCation1 Man0 Pe>"ert!P de## on t%e rea!on! em"#o0ee! #ea6e, %i4%
i! not a! im"ortant or re6ea#in' a! t%e rea!on! t%e0 !ta01
NeiK! Em"#o0ee Retention @%ee# i! a too# to mea!ure t%e 4ore need! t%at kee" em"#o0ee!
!u44e!!$u# at t%eir ?ob!, t%u! redu4in' t%e %i'% 4o!t! a!!o4iated it% unanted em"#o0ee
turno6er1
A Contro##ab#e em"#o0ee turno6erB i! 4au!e b0 on#0 to t%in'!/ SBad %irin'K and SBad
treatment1K Em"#o0er! tr0 numerou! t%in'! to kee" 'ood em"#o0ee!1 2oe6er, !tudie!
!%o t%at t%e "ro'ram! in t%e outer to rin'! do not %a6e a! 'reat im"a4t on retainin'
em"#o0ee! a! t%e "ro4e!! identi$ied in t%e 4enter o$ NeiK! Em"#o0ee Retention @%ee#1
Em"#o0er! need to $o4u! on "ro6idin' !u"er6i!or! it% t%e too#! t%at im"#ement t%e
"ro4e!!e! at t%e 4enter o$ t%e %ee#1
E<
E;
EMPLOYEE RETENTION
MEANIN" O! RETENTION02
T%e a4t o$ retainin'Jkee"in' o$ a t%in' it%in oneK! "oer or "o!!e!!ion i!
ARETENTIONB1
MEANIN" O! EMPLOYEE RETENTION02
T%e %o#din'Jretention o$ em"#o0ee in t%eir or'aniCation i! knon a! AEm"#o0ee
RetentionB1 In toda0K! 4%an'in', 4om"etiti6e and o$ten 4%aoti4 en6ironment, t%e retention
o$ e>4e##ent em"#o0ee i! one o$ t%e mo!t im"ortant 4%a##en'e in t%e or'aniCation!1Det in
!"ite o$ t%e m0riad o$ a6ai#ab#e t%eorie! 8 "ra4ti4e!, mana'er! o$ten 6ie em"#o0ee
moti6ation a! !omet%in' o$ a m0!ter01
EMPLOYEE RETENTION !A$T /
Em"#o0ee retention i! ob6iou!#0 im"ortant in a bu!ine!!M!
abi#it0 to kee" t%e mo!t ta#ented "eo"#e in t%e or'aniCation and a6oid unanted turno6er1
+*
NEED O! EMPLOYEE RETENTION02
BUSINESS !u44e!! i! more de"endent t%an e6er be$ore on "eo"#e1 Strate'ie! 4an be
4o"ied1 Te4%no#o'0 4an 'et outdated1 T%u!, t%e %uman 4a"ita# i! 'ettin' to be t%e rea#
4urren40 o$ t%e ne e4onom01
Com"anie! are 4%a##en'ed to ork doub#0 %ard to remain 4om"etiti6e to !ur6i6e1 In
meetin' t%i! 4%a##en'e, t%ere$ore, or'aniCation! need to retain t%eir %i'% "er$ormer! and
$or !ome, %ire indi6idua#! %o 4an %e#" brin' t%e or'aniCation 4#o!er to it! 'oa#!1 T%u!,
t%e Par $or ta#entP mi'%t e6en be more a""arent in t%e!e tou'% 4ondition!1
In toda0K! turbu#ent,o$ten 4%aoti4 en6ironment, it i! 'ettin' more di$$i4u#t to $ind and
kee" ta#ented orker!1Ea4% and e6er0 da0 'ood em"#o0ee! &uit t%eir em"#o0er! $or better
?ob! e#!e%ere1 U1S1 bu!ine!!e! !"end o6er G)** bi##ion annua##0 re4ruitin' and re"#a4in'
t%eir em"#o0ee!1 A6era'e or'aniCation! !"end more mone0 on re4ruitment and
re"#a4ement "ro'ram!, %i#e 'ood or'aniCation! in6e!t in em"#o0ee retention1 No,
more t%an e6er, it i! im"ortant to be4ome an em"#o0er o$ 4%oi4e or'aniCation1
Su44e!!$u# or'aniCation! rea#iCe em"#o0ee retention and ta#ent mana'ement are inte'ra#
to !u!tainin' t%eir #eader!%i" and 'rot% in t%e market"#a4e1 Be4omin' an Em"#o0er o$
C%oi4e b0 retainin' %i'%94a#iber em"#o0ee! in toda0M! #abor market !%ou#d be t%e %i'%e!t
"riorit01
THE EMPLOYEE RETENTION J $HALLEN"E02
In a or#d %ere te4%no#o'ie!, "ro4e!!e! and "rodu4t! are &ui4k#0 du"#i4ated
b0 4om"etitor! and t%e "a4e o$ 4%an'e and #e6e# o$ 4om"etition are 4on!tant#0 in4rea!in'1
Peo"#e are t%e ke0 to t%e mo!t re#iab#e !our4e o$ ad6anta'e , better !er6i4e, in4rea!ed
re!"on!i6ene!!, !tron' 4u!tomer re#ation!%i"! , 4reati6it0 and inno6ation t%at kee" a
4om"an0 one !te" a%ead 1
At t%e !ame time, %oe6er, itK! 'ettin' tou'%er to %o#d on to t%o!e em"#o0ee!1
Unem"#o0ment i! at it! #oe!t "oint in a &uarter o$ a 4entur01 Retirement i! e>"e4ted to
+:
redu4e mana'ement rank! b0 )*R or moreo6er t%e ne>t + 0ear!1 Doun'er, %i'%#0 mobi#e
orker! are brin'in' ne 6a#ue! and e>"e4tation! to t%e ork"#a4e, 4om"#i4atin'
retention e$$ort!1 And a$ter 0ear! o$ turn moi# in bu!ine!!, t%e traditiona# !en!e o$
4om"an0 #o0a#t0 %a! di!a""eared amon' 6irtua##0 a## em"#o0ee!1
T%u! t%e "rob#em o$ em"#o0ee retention i! %a6in' an im"a4t $ar be0ond $ront
#ine mana'er! and be0ond e6en t%e 2R de"artment1 It a$$e4t! t%e "er$orman4e o$ t%e
entire 4om"an0 , meanin' t%at t%e abi#it0 to kee" 'ood em"#o0ee! i! ra"id#0 be4omin' a
4riti4a# 4om"etiti6e ea"on1
%HY EMPLOYEES DUIT THEIR IOB02
Em"#o0ee #ea6e t%e or'aniCation $or man0 rea!on!/9
? Some #ea6e $or better "a0in' ?ob! e#!e%ere1
? Di!!ati!$a4tion in t%eir "re!ent ?ob to !eek a#ternati6e em"#o0ment1
? Due to "oor orkin' 4ondition!, La4k o$ o""ortunitie!JSu""ort $or ad6an4ement,
4on$#i4t, 2ea#t% %aCard!1
? Re!o#6e "er$orman4e and attitude "rob#em!, inade&uate 4om"en!ation1
? Ot%er! de"art be4au!e t%e0 do not $it t%e 4u#ture1
? Man0 more e>it be4au!e t%eir mana'er! and !u"er6i!or! are not "ro"er#0 trained1
2oe6er, t%ere are $i6e im"ortant area! t%at moti6ate "eo"#e to #ea6e t%eir ?ob!1
:1 Poor mat4% beteen t%e "er!on and t%e ?ob
)1 Poor $it it% t%e or'aniCationa# 4#imate and 4u#ture
51 Poor a#i'nment beteen "a0 and "er$orman4e
E1 Poor 4onne4tion! beteen t%e indi6idua#, t%eir 4oorker!, and t%e !u"er6i!or
+1 Poor o""ortunitie! $or 'rot% and ad6an4ement
T%e!e $i6e PM! 4an be addre!!ed !u44e!!$u##01 Em"#o0ee retention be'in! b0 "a0in'
attention to %at 4au!e! #o ?ob !ati!$a4tion a! e## a! %at attra4t! and retain! 0our
ork$or4e1
EMPLOYEE TURNOVER IS EOPENSIVE02
+)
A 4ontinua# e$$ort to re"#a4e de"artin' orker!Qto kee" t%e re6o#6in' door $u##,
in!tead o$ !to""in' it a#to'et%erQi! b#eedin' or'aniCation! dr01 ItK! e>"en!i6e to
4on!tant#0 re"#a4e "eo"#e t%at turno6er1 T%e 4o!t o$ attra4tin', re4ruitin', %irin', trainin',
and 'ettin' ne "eo"#e u" to !"eed i! tremendou!#0 more 4o!t#0 a! e## a! tremendou!#0
more a!te$u# t%an mo!t rea#iCe1 Ju!t 4on!ider t%e!e 4o!t!/
ASAP determined i! 4o!t G=-"erien4ed !a#e! "er!on &uit1B
AA t0"i4a# medi4a# 4enter !"end! o6er G) mi##ion ea4% 0ear re"#a4in' !ta$$ member!1B
2i'% em"#o0ee turno6er i! a $a4t o$ #i$e t%e!e da0! in man0 indu!trie!1 Det t%e 4o!t! to
re4ruit and train ne em"#o0ee! eat aa0 at bottom #ine1 To !ta0 4om"etiti6e, it! not
on#0 ne4e!!ar0 to attra4t t%e be!t "o!!ib#e em"#o0ee! $or t%e ?ob, but de6e#o" a 4#ear94ut
!trate'0 to retain t%em1
PRODU$TIVITY AND PRO!ITABILITY IS DIRE$TLY TIED TO EMPLOYEE RETENTION02
A Studie! $rom t%e 7a##u" or'aniCation !%o t%at em"#o0ee! %o %a6e an abo6e9
a6era'e attitude toard t%eir ork i## 'enerate/9
? 5< "er4ent %i'%er 4u!tomer !ati!$a4tion !4ore!
? )) "er4ent %i'%er "rodu4ti6it0
? )- "er4ent %i'%er "ro$it! $or t%eir 4om"anie!B1
+5
T%atK! %0 t%e retention o$ !ki##ed and ta#ented em"#o0ee! i! 6er0 e!!entia# in
or'aniCation! toda01
+E
EToda.As @or) for-e 9rin:s man. t(in:s to t(e ta9*e, -reati'e t(in)in:, ne@ ideas,
9ound*ess ener:. and some issues t(at (a'e not 9een dea*t @it( in t(e +ast&
$ontinua**. it is made a++arent t(at em+*o.ees are not @i**in: to fo**o@ in t(e
footste+s of +rior :enerations&F Donna I& Mur+(., Senior Vi-e +resident, Iefferson
Ban)
%HEN DOES EMPLOYEE TURNOVER BE$OME PROBLEMATI$P
T%ere i! no !et #e6e# o$ em"#o0ee turno6er abo6e %i4% e$$e4t! on t%e em"#o0in'
or'aniCation be4ome dama'in'1 E6er0t%in' de"end! on t%e t0"e o$ #abour market! in
%i4% e 4om"ete1 @%ere it i! re#ati6e#0 ea!0 to $ind and train ne em"#o0ee! &ui4k#0
and at re#ati6e#0 #itt#e 4o!t (i1e %ere t%e #abour market i! #oo!e., it i! "o!!ib#e to !u!tain
%i'% &ua#it0 #e6e#! o$ !er6i4e "ro6i!ion de!"ite %a6in' a %i'% turno6er rate1 B0 4ontra!t,
%ere !ki##! are re#ati6e#0 !4ar4e, %ere re4ruitment i! 4o!t#0 or %ere it take! !e6era#
eek! to $i## a 6a4an40, turno6er i! #ike#0 to be "rob#emati4 $rom a mana'ement "oint o$
6ie1 T%i! i! e!"e4ia##0 true o$ !ituation! in %i4% t%e0 #o!e !ta$$ to dire4t 4om"etitor! or
%ere 4u!tomer! %a6e de6e#o"ed re#ation!%i"! it% indi6idua# em"#o0ee! a! i! t%e 4a!e in
man0 "ro$e!!iona# !er6i4e! or'aniCation!1
Some em"#o0ee turno6er "o!iti6e#0 bene$it! or'aniCation!1 T%i! %a""en! %ene6er a "oor
"er$ormer i! re"#a4ed b0 a more e$$e4ti6e em"#o0ee, and 4an %a""en %en a !enior
retirement a##o! t%e "romotion or a4&ui!ition o$ e#4ome M$re!% b#oodM1 Moderate #e6e#!
o$ !ta$$ turno6er 4an a#!o %e#" to redu4e !ta$$ 4o!t! in or'aniCation! %ere bu!ine!! #e6e#!
are un"redi4tab#e mont% on mont%1 In !u4% !ituation! %en bu!ine!! i! !#a4k it i!
!trai'%t$orard to %o#d o$$ $i##in' re4ent#0 4reated 6a4an4ie! $or !ome eek!1
@%en e>e4uti6e! attem"t Em"#o0ee Se#e4tion interna##0, t%e0 o$ten $o4u! on !%ort term
'oa#!, #ike !a#e! &uota!, rate! o$ return, and t%e #ike1 Un$ortunate#0, t%i! m0o"i4
4on4e"tion o$ Em"#o0ee Se#e4tion o$ten #ead! e>e4uti6e! don t%e ron' "at%1 T%e trut%
i! t%at bui#din' a ti'%t !%i" mean! %irin' t%e ri'%t "eo"#e1 A! t%e !a0in' 'oe!, E"o*d in,
"o*d out&F
++
EMPLOYEE RETENTION0A VITAL STRATE"Y02
Em"#o0ee retention i! mo!t 4riti4a# i!!ue $a4in' 4or"orate #eader! a! a re!u#t o$ t%e
!%orta'e o$ !ki##ed #abor, e4onomi4 'rot% and em"#o0ee turno6er1 T%i! "ro?e4t e>"#ore!
a## a!"e4t! o$ t%e ork$or4e !tabi#it0 i!!ue in t%e $a4e o$ un"re4edented 4%urnin' in t%e
em"#o0ment market it% a $o4u! on retainin' t%eir em"#o0ee!1 T%i! i! one o$ t%e %otte!t
to"i4! $or 4or"orate #eader! in a## $ie#d! in t%e %o#e or#d1
Retainin' em"#o0ee! mean! #oer trainin' 4o!t! and a $ami#iar e## e!tab#i!%ed
ork$or4e1 Retention re&uire! kee"in' em"#o0ee! %a""0, %i4% %a! ot%er bene$it! a!
e##1
7ood "a0 and bene$it! 4an, in man0 indu!trie!, be a in9in !ituation1 Em"#o0ee! 'et
more o$ %at t%e0 ant, and b0 minimiCin' turno6er, 4u!tomer! 'et better !er6i4e and
!%are%o#der! 'et more "ro$it!1
PAST AND $URRENT S$ENARIO O! EMPLOYEE RETENTION
T(e @a. it @asTTTIn t%e "a!t, t%e ?ob! ere 4on!idered de!irab#e and !u$$i4ient
4andidate! 4ou#d be $ound to $i## mo!t 4riti4a# ?ob!1 Moreo6er, on4e em"#o0ed, orker!
ou#d o$ten !"end t%eir entire 4areer! in State Ser6i4e1 In area! %ere t%ere a! turno6er,
ne em"#o0ee! 4ou#d be re4ruited ea!i#01
T(e @a. it isTTT1toda0 t%ere i! a %i'% demand in t%e "ub#i4 and "ri6ate !e4tor! $or
orker! in 4riti4a# area! !u4% a! %ea#t% 4are, in$ormation te4%no#o'0, en'ineerin',
a44ountin' and auditin'1 T%e !u""#0 o$ &ua#i$ied orker! i! #imited and 'ood ork$or4e
"#annin' re&uire! a to$o#d a""roa4% o$ a''re!!i6e re4ruitment and inno6ati6e retention
!trate'ie!1 Retention "o#i4ie! need to $o4u! on e#imination o$ unanted turno6er1
+=
EMPLOYEE RETENTION IN THE NE% MILLENIUM
Toda0M! #abour $or4e i! di$$erent1 Su"er6i!or! mu!t take re!"on!ibi#it0 $or t%eir on
em"#o0ee retention1 I$ t%e0 donMt, t%e0 4ou#d be #e$t it%out enou'% 'ood em"#o0ee!1 A
i!e em"#o0er i## #earn %o to attra4t and kee" 'ood em"#o0ee!, be4au!e in t%e #on'
run, t%i! ork$or4e i## make or break a 4om"an0M! re"utation1
Ne !u"er6i!or! mu!t be "re"ared to be 4o##aborati6e, !u""orti6e, and nurturin' o$ t%eir
"eo"#e1 T%e o#d !t0#e o$ Pm09a09or9t%e9%i'%a0P !t0#e o$ mana'ement i! a t%in' o$ t%e
"a!t1 Mo!t ne !u"er6i!or! need trainin' to under!tand %at it rea##0 take! to retain
em"#o0ee!1
Em"#o0ee retention in6o#6e! bein' !en!iti6e to "eo"#eM! need! and demon!tratin' t%e
6ariou! !trate'ie! in t%e $o##oin' $i6e $ami#ie! (Nee"in' 7ood Peo"#e.
:1 En6ironmenta#
)1 Re#ation!%i"
51 Su""ort
E1 7rot%
+1 Com"en!ation
Em"#o0ee retention take! e$$ort, ener'0, and re!our4e!111and t%e re!u#t! are ort% it1
+-
STEPS !OR KEMPLOYEE RETENTION PRO"RAMF02
T%ere are ei'%t !te"! $or "er$e4tin' "ro'ram! to kee" t%e mo!t ta#ented em"#o0ee!/
• Mea!ure and monitor turno6er and retention dataH
• De6e#o" $u##0 #oaded 4o!t! o$ turno6erH
• Dia'no!e 4au!e! and need! $or retention im"ro6ementH
• E>"#ore ran'e o$ !o#ution!H
• Mat4% !o#ution! to need!H
• Fore4a!t 6a#ue o$ retention !o#ution!H
• Ca#4u#ate ROI o$ retention !o#ution!H and
Make ad?u!tment! and 4ontinue1
USIN" BENE!ITS AS AN EMPLOYEE RETENTION TOOL
Em"#o0ee bene$it! "ro6ide a "oer$u# too# $or attra4tin' and retainin' to"9not4%
em"#o0ee!1 To de!i'n a retention9oriented bene$it! "ro'ram, u!e t%e $o##oin' !te"!/
:1 Create a bene$it! mi!!ion !tatement1
)1 Identi$0 0our audien4e and t%eir !"e4i$i4 bene$it! ant! and need!1
51 De$ine a bene$it! bud'et t%at $it! it%in t%e $inan4ia# 4on!traint! o$ t%e 4om"an01
E1 7i6e em"#o0ee! a! mu4% 4ontro# a! "o!!ib#e o6er t%eir bene$it!1
Communi4ate t%e "#an1
BENE!ITS O! KEMPLOYEE RETENTION PRO"RAMF02
? Sa6e mone0
? Le!! unanted tur
+<
? 2i'%er mora#e it%in a !"e4i$i4 de"artment
? En!ure 4ontinuit0 o$ 4u!tomer !er6i4e and !ati!$a4tion bK4oC turno6er di!ru"t! t%e
4onne4tion beteen 4u!tomer! and t%e 4om"an0
? Im"ro6e &ua#it0 (!ati!$ied em"#o0ee! de#i6er %i'%er &ua#it0 "rodu4t! and
!er6i4e!.and remain 4om"etiti6e
? Better under!tandin' o$ %atK! needed to e$$e4ti6e#0 mana'e a "arti4u#ar team
? 2i'% 6a#ue $or a #o 4o!t mean! t%at it% #e!! turno6er, $eer "rob#em! and more
Produ4ti6it0 o44ur!1 T%e mone0 !a6ed i! !i'ni$i4ant#0 'reater t%an t%e 4o!t1
K Satisfied em+*o.ees -ontri9ute to :reater 9usiness 9enefits for t(e em+*o.er&
!oremost, 9usinesses @ou*d eC+erien-e an in-rease in +rodu-ti'it.& Ha++.
em+*o.ees +erform 9etter t(an dis:runt*ed and stressed ones& Businesses @ou*d a*so
see im+ro'ed re-ruitment and retention& Additiona**., t(ere @ou*d 9e *o@er rates of
a9senteeism and im+ro'ed -ustomer ser'i-e& O'era**, t(ere @ou*d eCist a more
moti'ated, satisfied and eQuita9*e @or)for-e,FNELSON,5>>>
RETAININ" EY EMPLOYEES02
B0 $o4u!in' on ke0 "#a0er! %o tru#0 make or break t%e bu!ine!!, e 4an 'et t%e mo!t
#e6era'e $rom our em"#o0ee retention e$$ort!1 Retainin' ke0 em"#o0ee! re&uire! a $i6e9
!te" "ro4e!!/
:1 Identi$0 ke0 em"#o0ee! and "o!ition!1
)1 Nno %at moti6ate! 0our ke0 em"#o0ee! on an indi6idua# #e6e#1
51 Pro6ide a de$erred 4om"en!ation "#an1
E1 Monitor and mana'e ke0 em"#o0ee "er$orman4eJRe6ie ke0 em"#o0ee! annua##01
+;
STRATE"IES !OR RETAININ" THE EMPLOYEES
Toda0M! orker! are no #on'er in4#ined to !ta0 at one 4om"an0 $or t%e duration o$ t%eir
4areer!1 T%e mo!t ta#ented "ro$e!!iona#! o$ten are 4ourted b0 ot%er bu!ine!!e!, and t%e
e$$e4t! o$ turno6er 4an be 4o!t#01 T%e time and mone0 it take! to re4ruit, re%ire and retain
4an &ui4k#0 4ut into a $irmM! bottom #ine1 Em"#o0ee Retention Strate'ie! %e#"!
or'aniCation! "ro6ide e$$e4ti6e em"#o0ee 4ommuni4ation to im"ro6e 4ommitment and
en%an4e ork$or4e !u""ort $or ke0 4or"orate initiati6e!1
MAIN !IVE STRATE"IES !OR RETAININ" EMPLOYEES02
Retainin' em"#o0ee! and de6e#o"in' a !tab#e ork $or4e in6o#6e! a to9!te" "ro4e!! 9
under!tandin' %0 em"#o0ee! #ea6e in t%e $ir!t "#a4e, and de6e#o"in' and im"#ementin'
!trate'ie! to 'et t%em to !ta01
O6er4omin' t%e!e rea!on! re&uire! t%e im"#ementation o$ $i6e di!tin4t 4ate'orie! o$
retention !trate'ie!/
:1 En'ironmenta* !trate'ie! 4reate and maintain a ork"#a4e t%at attra4t!, retain!
and nouri!%e! 'ood "eo"#e1
)1 Re*ations(i+ !trate'ie! $o4u! on %o 0ou treat 0our "eo"#e and %o t%e0 treat
ea4% ot%er1
51 Su++ort !trate'ie! in6o#6e 'i6in' "eo"#e t%e too#!, e&ui"ment and in$ormation to
'et t%e ?ob done1
E1 "ro@t( !trate'ie! dea# it% "er!ona# and "ro$e!!iona# 'rot%1
+1 $om+ensation !trate'ie! 4o6er t%e broad !"e4trum o$ tota# 4om"en!ation, not ?u!t
ba!e "a0 and !a#ar01
=*
BEST PRA$TI$ES0 EMPLOYEE RETENTION
In bui#din' retention "ro'ram!, t%ere are !ome more im"ortant !trate'ie! %i4% e>i!t a!
be#o /9
? A $HAN"IN" %OR !OR$E AND %ORPLA$E
Fundamenta# 4%an'e! are takin' "#a4e in t%e ork $or4e and t%e ork"#a4e t%at "romi!e
to radi4a##0 a#ter t%e a0 4om"anie! re#ate to t%eir em"#o0ee!1 2irin' and retainin' 'ood
em"#o0ee! %a6e be4ome t%e 4%ie$ 4on4ern! o$ near#0 e6er0 4om"an0 in e6er0 indu!tr01
Com"anie! t%at under!tand %at t%eir em"#o0ee! ant and need in t%e ork"#a4e and
make a !trate'i4 de4i!ion to "roa4ti6e#0 $u#$i## t%o!e need! i## be4ome t%e dominant
"#a0er! in t%eir re!"e4ti6e market!1
T%e $ier4e 4om"etition $or &ua#i$ied orker! re!u#t! $rom a number o$ ork"#a4e trend!,
in4#udin'/
• A robu!t e4onom0
• S%i$t in %o "eo"#e 6ie t%eir 4areer!
• C%an'e! in t%e un!"oken P4ontra4tP beteen em"#o0er and em"#o0ee
• Cor"orate 4o4oonin'
• A ne 'eneration o$ orker!
• Bab0 boomer! !trikin' out on t%eir on a$ter %ittin' 4or"orate 4ei#in'!
• C%an'e! in !o4ia# more!
• Li$e ba#an4e
=:
Con4urrent it% t%e!e trend!, t%e emer'in' ork $or4e i! de6e#o"in' 6er0 di$$erent
attitude! about t%eir ro#e t%e ork"#a4e1 Toda0M! em"#o0ee! "#a4e a %i'% "riorit0 on t%e
$o##oin'/
• Fami#0 orientation and Autonom0
• Sen!e o$ 4ommunit0
• Lua#it0 o$ #i$e i!!ue!
• 3o#unteeri!m
• F#e>ibi#it0 and non4on$ormit0
To %o#d t%e "eo"#e (em"#o0ee., itK! ne4e!!ar0 to ork 4ounter to "re6ai#in' trend!
4au!in' t%e ?ob 4%urnin'1
? $AREER < SEL! DEVELOPMENT02
It i! !o im"ortant BK4oC em"#o0ee! ant to "ro're!!1 Career de6e#o"ment i! t%e
re!"on!ibi#it0 o$ em"#o0ee, but 'i6in' a 4#ear #ine o$ !i'%t $or 4areer 'rot% to t%e
em"#o0ee i! t%e em"#o0erK! re!"on!ibi#it01 T%e e>tent to %i4% t%e em"#o0er a!!i!t! in
t%e "ro4e!! im"ro6e! bot% t%e re!"on!ibi#it0 beteen t%e em"#o0ee and em"#o0er and
4reate! more 6a#ue $or bot% "artie!1
T(e -om+an. -an en-oura:e t(is +ro-ess 9.02
? S%arin' in$ormation about $uture bu!ine!! 6i!ion and t%e !ki## !et! t%at i## be
needed1
? Mentorin' t%e em"#o0ee, 'i6in' 'uidan4e and !u''e!tion!1
? Fa4i#itatin' t%e trainin' t%at i## be "aid $or b0 t%e 4om"an01
=)
? $ULTURE AND ENVIRONMENT02
It ma0 !eem ob6iou! t%at em"#o0ee! i## tend to !ta0 it% an or'aniCation t%at make!
t%em $ee# 4om$ortab#e9 %ere !tre!! i! minimiCed , $u## !a$et0 mea!urementJe##ne!!
o44urred1 And t%e0 $ee# 6a#ued and re!"e4ted1 2oe6er , too man0 4om"anie! !ti##
o"erate it% a 4u#ture ba!ed on 4ontro# and $ear, rat%er t%an one t%at "ro6ide! e##
de$ined dire4tion and 6a#ue!, and em"%a!iCe! 4are $or 4u!tomer! and em"#o0ee! a#ike1
T%e im"#i4ation i! 4#ear/ AT%e more enri4%in' t%e ork en6ironment, t%e more #ike#0
to retain a !ta$$ o$ !ati!$ied, "rodu4ti6e em"#o0ee!1B
To maintain #o #e6e#! o$ turno6er and %i'% #e6e# o$ em"#o0ee !ati!$a4tion, $our t0"e!
o$ 4u#ture e>i!t!/9
? Cu#ture o$ 4%oi4e
? Cu#ture o$ ba#an4e
? Cu#ture o$ 4are
? Cu#ture o$ de6e#o"ment
? RE%ARDS AND RE$O"NITION PRO"RAMS02
,Moti'ate and retain t(e most 'a*ua9*e assets/
Em"#o0ee! ant to be re4o'niCed $or a ?ob e## done1 Reard! and re4o'nition
re!"ond to t%i! need b0 6a#idatin' "er$orman4e and moti6atin' em"#o0ee! toard
4ontinuou! im"ro6ement1 Reardin' and re4o'niCin' "eo"#e $or "er$orman4e not
on#0 a$$e4t t%e "er!on bein' re4o'niCed, but ot%er! in t%e or'aniCation a! e##1
@%en t%e reard !0!tem i! 4redib#e, reard! are meanin'$u#H %oe6er, i$ t%e reard
!0!tem i! broken, t%e o""o!ite e$$e4t i## o44ur1Unre4o'niCed and non6a#ued
"er$orman4e 4an 4ontribute to turno6er1 Re4o'nition $or a ?ob e## done $i##! t%e
em"#o0ee!M need to re4ei6e "o!iti6e, %one!t $eedba4k $or t%eir e$$ort!1
Mana:er must K offer t(e tan:i9*e intrinsi- re@ards t(at :i'e 'a*ue eC+erien-e,F
NELSON,5>>>&
=5
Re4o'nition !%ou#d be "art o$ t%e or'aniCationM! 4u#ture be4au!e it
4ontribute! to bot% em"#o0ee !ati!$a4tion and retention1 Reard! are one o$ t%e ke0! to
a6oidin' turno6er, e!"e4ia##0 i$ t%e0 are immediate, a""ro"riate, and "er!ona#1 A 2ar6ard
Uni6er!it0 !tud0 4on4#uded t%at or'aniCation! 4an a6oid t%e di!ru"tion 4au!ed b0
em"#o0ee turno6er b0 a6oidin' %irin' mi!take! and !e#e4tin' and retainin' to"
"er$ormer!1
? PAY , BENE!ITS AND IN$ENTIVES02
Mo!t em"#o0ee! $ee# t%at t%e0 are ort% more t%an t%e0 are a4tua##0 "aid1 T%ere i! a
natura# di!"arit0 beteen %at "eo"#e t%ink t%e0 !%ou#d be "aid and %at or'aniCation!
!"end in 4om"en!ation1 @%en t%e di$$eren4e be4ome! too 'reat and anot%er o""ortunit0
o44ur!, turno6er 4an re!u#t1 Pa0 i! de$ined a! t%e a'e!, !a#ar0, or 4om"en!ation 'i6en to
an em"#o0ee in e>4%an'e $or !er6i4e! t%e em"#o0ee "er$orm! $or t%e or'aniCation1
T%e em"#o0ee in4enti6e "ro'ram! %e#" 4om"anie! to /
? Promote em"#o0ee #o0a#t0 and retention
? Reard out!tandin' em"#o0ee "er$orman4e
? Moti6ate ke0 em"#o0ee be%a6ior!/ !a$et0, 4o!t !a6in'!, e##ne!!, 4u!tomer
!ati!$a4tion, &ua#it0, attendan4e and more
? Mea!ure "er$orman4e im"ro6ement
? EMPO%ERMENT02
T%e em"#o0ee need! to $ee# a !en!e t%at t%e0 are in 4ontro# o$ t%eir or#"#a4e o"tion!
!u4% a! $#e>ib#e ork !4%edu#e! to 'i6e t%e "oer o$ de4i!ion makin' et41
? LEADERSHIP02
To a 'reat e>tent , an em"#o0eeK! e>"erien4e at a 4om"an0 i! !%a"ed b0 %i! or %er Bo!!/
em"#o0ee! re#0 on !u"er6i!or! $or e6er0t%in' $rom 4ommuni4ation to "romotion! and
reard!1 Not !ur"ri!in'#0, a number o$ !tudie! !%o t%at ine$$e4ti6e !u"er6i!or! , t%at i!,
A bad bo!!e!B9are t%e #ar'e!t !in'#e $a4tor dri6in' em"#o0ee turno6er1 Com"anie! need to
=E
!e#e4t t%e ri'%t "eo"#e $or !u"er6i!or0 "o!ition!, and t%en o$$er t%em de6e#o"ment
o""ortunitie! to make !ure t%e0 4ontinue to en%an4e t%eir #eader!%i" and 4ommuni4ation
!ki##!1
? PRO!ESSIONAL "RO%TH,TRAININ" AND DEVELOPMENT/02
Toda0K! em"#o0ee kno t%at a !u44e!!$u# 4areer de"end! on 4on!tant
#earnin' and on "i4kin' u" !ki##! and e>"erien4e t%at i## make t%em more em"#o0ab#e in
t%e o"en market1 T%at mean! t%at a44e!! to on'oin' trainin' and de6e#o"ment i!
im"ortant to t%em, and a !tron' in4enti6e to !ta0 it% a 4om"an01
T%e!e "ro'ram! "ro6ide a "o!iti6e "er4e"tion to em"#o0ee! t%at t%eir em"#o0er i! i##in'
to in6e!t in t%eir 4ontinued "ro$e!!iona# 'rot%, %i4% i## not on#0 %a6e a "o!iti6e
im"a4t on "rodu4ti6it0 and e$$e4ti6ene!! in t%eir re!"e4ti6e ro#e!, but a#!o on t%e
em"#o0erM! abi#it0 to retain indi6idua# em"#o0ee!1T%i! i! a $undamenta# "arado> o$
em"#o0ee retention1 B0 "re"arin' "eo"#e to #ea6e, a 4om"an0 4an a4tua##0 en4oura'e
t%em to !ta01
? MEANIN"!UL %OR AND O%NERSHIP02
Peo"#e need to kno t%e0 are makin' a di$$eren4e and bein' e$$e4ti6e in t%eir ?ob!1
E>"e4tation! and ?ob re!"on!ibi#itie!Jde!4ri"tion need to be 4#ear#0 de$ined !o t%at
em"#o0ee! 4an under!tand t%eir ro#e!and !ee %o t%eir ?ob! are #inked to t%e
or'aniCationK! o6era## !u44e!!1 Em"#o0ee! mu!t a#!o be in6o#6ed in determinin' %o
ork i! done, !o t%at t%e0 %a6e a !en!e o$ oner!%i" and an o""ortunit0 to 4ontribute to
im"ro6ement! in t%e 4om"an0K! "er$orman4e1
? !AMILY !RIENDLY BENE!ITS 02
Bene$it! t%at make it ea!ier $or em"#o0ee! to ba#an4e ork it% $ami#0 ob#i'ation! %a6e
been !%on to in4rea!e "rodu4ti6it0, redu4e ab!enteei!m and #oer turno6er rate!1
=+
HR UPDATE
A! t%e #eadin' ed'e o$ bab0 , boomer! be4ome e#i'ib#e $or retirement, e>"ert! be#ie6e
t%at a## bu!ine!! !e4tor! i## need to be4ome more !trate'i4 about Identi$0in' , 4u#ti6atin'
and kee"in' !ta$$ it% 6ita# !ki##!1
TOOLS TO TUNE J UP RETENTION E!!ORTS02
E>"ert! !u''e!t $o##oin' ti"!/9
? FIND OUT @2AT EMPLODEES T2INN/
A e## 4ra$ted !ur6e0, admini!tered b0 an out!ide "ro6ider to en!ure 4on$identia#it0
4an be e## ort% t%e in6e!tment to %e#" a 4om"an0 "in"oint re4urrin' i!!ue! t%at
4ontribute to em"#o0ee turno6er or di!!ati!$a4tion1 A more $o4u!ed a""roa4% on t%i!
t%eme i! to identi$0 to" "er$ormer! and in6ite t%em to indi6idua# di!4u!!ion! on ?ob
!ati!$a4tion and 4areer "#annin'1
? SET A CLEAR AND CONSISTENT TONE FROM TOP/
In a )**+ S2RM (So4iet0 $or 2RM. ork"#a4e $ore4a!t
R o$ e>e4uti6e! !aidem"#o0ee a#i'nment it% bu!ine!! 'oa#! a! im"ortant to o6era## !u44e!!1 2oe6er ,
man0 o$ t%o!e !ame #eader! do not e$$e4ti6e#0 4ommuni4ate ke0 bu!ine!! ob?e4ti6e! or
t%e non $inan4ia# e#ement! t%at make! t%e 4om"an0 di!tin4ti6e1 T%e e$$e4ti6ene!! o$ t%i!
!te" 4an be mea!ured in re'u#ar em"#o0ee en'a'ement !ur6e0! or in !ma##er $o4u! 'rou"!
%e#d on an annua# or !emi annua# ba!i!1
? STREN7T2EN T2E MANA7ER , EMPLODEE RELATIONS2IP/
Retention !tudie! 4on!i!tent#0 !%o t%at t%e !u"er6i!or , em"#o0ee re#ation!%i" i!
one o$ t%e bi''e!t $a4tor! in %et%er t%e orker 4%oo!e! to !ta0 or #ea6e a ?ob1
? CONSIDER FLEIIBLE @ORN ARRAN7EMENTS/
==
Near#0 =* R o$ em"#o0ee! in t%e S2RM !tud0 !aid A @ork J #i$e "ra4ti4e!B !u4% a!
$#e>time, te#e4ommutin' and 4om"re!!ed orkeek! , ere 6er0 im"ortant to ?ob
!ati!$a4tion1
? IN3EST IN A CULTURE OF LEARNIN7/
@%en time! 'et tou'%, 4om"anie! $re&uent#0 "u## ba4k !"endin' on 4on$eren4e!,
!eminar! and #earnin' o""ortunitie! to $o4u! !o#e#0 on da0 , to , da0 o"eration!1
2oe6er, t%at a""roa4% 4an !ti$#e ne idea!, 4reati6it0 and u#timate#0 #ead to orker
burnout1
B0 takin' t%e!e !te"!, t%e 4om"an0K! abi#it0 to kee" 'ood orker! 4an be im"ro6e
%en ne o""ortunitie! ari!e1
? CONDUCT EIIT INTER3IE@S @IT2 EMPLODEES @2O RESI7NS/
Feedba4k 4an be u!ed to make "o!iti6e 4%an'e!1
OR"ANIMATIONAL VISSION AND MISSION AS A $ORE DIMENSION IN
EMPLOYEE RETENTION02
Mi!!ion !tatement! are re4o'niCed a! a !tron' mana'ement too# t%at 4an moti6ate
em"#o0ee! and kee" t%em $o4u!ed on t%e "ur"o!e o$ t%e or'aniCation1 7i6en it!
!i'ni$i4ant and $undamenta# ro#e re#ati6e#0 #itt#e i! knon about %o mi!!ion are
"er4ei6ed b0 em"#o0ee! and %o t%o!e "er4e"tion! re#ate to ot%er or'aniCationa# attitude!
(e1'1 !ati!$a4tion. and be%a6ior! (e1'1 turno6er.
In 'enera#, t%e em"#o0ee! e>"re!!ed "o!iti6e attitude! toard! t%e mi!!ion o$ t%e
or'aniCation and t%o!e attitude! are re#ated to em"#o0ee !ati!$a4tion 8 intention! to
remain! it% t%e or'aniCation1
=-
REVIE% O! LITERATURE IN THIS RE"ARD02
ADe6e#o"in' 4om"re%en!i6e 6i!ion 8 mi!!ion !tatement! i! !een a! 4riti4a# to !u44e!! o$
or'aniCation in a## !e4tor! A,$OLLIUS # PORRAS,1==1/&
%i**iams ,5>>5/$urt%er !u''e!ted t%at Aor'aniCation it% a more 4om"re%en!i6e mi!!ion
!tatement do better $inan4ia##0 t%an t%o!e it% an ambi'uou! mi!!ion or no mi!!ion at
a##B1
AA mi!!ion !tatement identi$ie!, o"erationa# ob?e4ti6e!, a!!i!t! in 'oa# dire4ted be%a6ior
o$ !ta$$, de!4ribe! "er$orman4e !tandard! and !"eak! to or'aniCationa# !ur6i6a#B , Smit(,
Head., $arson # $arson ,5>>1/F
A 'ood mat4% beteen em"#o0ee and or'aniCationa# 6a#ue! i! re#ated to em"#o0ee
attra4tion, !ati!$a4tion and turno6er , %er9e* # "i**i*and ,1===/
=<
IN$REASIN" EMPLOYEE RETENTION THROU"H EMPLOYEE
EN"A"EMENT02
%HAT IS EMPLOYEE EN"A"EMENT02
It i! a! t%e #e6e# o$ 4ommitment and in6o#6ement t%at an em"#o0ee %a!
toard! t%e or'aniCation and it! 6a#ue!1 It i! 6ita# to an0 bu!ine!! or'aniCation t%at !eek!
not on#0 to retain it! em"#o0ee!, but a#!o to in4rea!e t%eir "er$orman4e #e6e#1
EN"A"AMENT i! not a one , time "ro4e!! or a !%ort , term initiati6e, itK! an on'oin'
and !tead0 "ro're!! %i4% re&uire! $o##oin' initiati6e! to be taken b0 or'aniCation to
bui#d %i'% #e6e#! o$ em"#o0ee en'a'ement/9
? In$ormin' em"#o0ee! about t%e 4%an'e
? In6itin' em"#o0ee!K !u''e!tion!
? In4or"oratin' 3a#uab#e !u''e!tion!
? Li!tenin' to "rob#em!
? Su""ortin' at e6er0 !ta'e o$ t%e im"#ementation "ro4e!!
%HY IS IT SO IMPORTANTP
A EMPLODEE EN7A7EMENT A en!ure! t%e !u44e!!$u# e>e4ution o$ an0 bu!ine!!
!trate'01 En'a'ed em"#o0ee! are t%e 4om"etiti6e ad6anta'e o$ an or'aniCation and "#a0
t%e mo!t im"ortant ro#e in t%e im"#ementation o$ t%eir or'aniCationK! bu!ine!! initiati6e!1
T%ere i! a !i'ni$i4ant #ink beteen em"#o0ee en'a'ement and "ro$itabi#it01
DRIVERS O! EMPLOYEE EN"A"EMENT02
T%e !ur6e0 4ondu4ted b0 A Bu!ine!! Toda0B identi$ie! $o##oin' dri6er!/
? PEOPLE J LUALITD
=;
? @ORN J COMPENSATION
? OPPORTUNITIES
!A$TORS O! EN"A"EMENT02
Man0 or'aniCationa# $a4tor! in$#uen4e em"#o0ee en'a'ement and retention !u4% a!/9
? Em"oerment
? Fair 8 a""ro"riate reard re4o'nition 8 in4enti6e !0!tem!
? A 4u#ture o$ Re!"e4t %ere out!tandin' ork i! 6a#ued1
? Se#$ de6e#o"ment 8 a4%ie6ement!
? Creati6it0 and a6ai#abi#it0 o$ 4on!tru4ti6e $eedba4k 8 mentorin'1
? Ad6an4ement 8 %i'% #e6e#! o$ moti6ation and #eader!%i"
? E4onomi4 !e4urit0 (or ea#t%.
? En?o0in' 4oorker re#ation!%i"! a$$e4t em"#o0ee en'a'ement !i'ni$i4ant#01
HO% TO DEVELOP EMPLOYEE EN"A"EMENT0
? To" mana'ement endor!ement
? A ork en6ironment to 4%eri!%
? Inno6ati6e #eader!%i"
? C#ear 'rot% tra?e4torie!
? Aone !te" u" A $rom 4ommitment
EMPLOYEE DISEN"A"EMENT0 THE DETERRENT EVIL02
It 4an re!u#t in/9
? In4rea!ed em"#o0ee ab!enteei!m
-*
? De4rea!ed !e#$ e!teem
? Tran!$errin' t%eir 'ained kno#ed'e and e>"erti!e to anot%er ork"#a4e
? Redu4ed ork "er$orman4e
? @ork #i$e imba#an4e
? @a!tin' time and mone0 in6e!ted in trainin' and de6e#o"ment "ro'ram! $or t%e
e>i!tin' orker!1
-:
MEASURIN" EMPLOYEE TURNOVER
Mo!t or'ani!ation! !im"#0 tra4k t%eir 4rude turno6er rate! on a mont% b0 mont% or 0ear
b0 0ear ba!i!1 T%e $ormu#a i! !im"#0/
Tota# number o$ #ea6er! o6er "eriod > :**
A6era'e tota# number em"#o0ed o6er "eriod
T%e tota# $i'ure in4#ude! a## #ea6er!, e6en "eo"#e %o #e$t in6o#untari#0 due to di!mi!!a#,
redundan40 or retirement1 It a#!o make! no di!tin4tion beteen $un4tiona# (i1e bene$i4ia#.
turno6er and t%at %i4% i! d0!$un4tiona#1
Crude turno6er $i'ure! are u!ed b0 a## t%e ma?or !ur6e0! o$ em"#o0ee turno6er, in4#udin'
t%e ma?or CIPD and CBI !ur6e0! t%at are 4arried out ea4% 0ear1 So t%e0 are ne4e!!ar0 $or
e$$e4ti6e ben4%markin' "ur"o!e!1 2oe6er, it i! a#!o u!e$u# to 4a#4u#ate a !e"arate $i'ure
$or 6o#untar0 turno6er and to 4on!ider !ome o$ t%e more 4om"#e> em"#o0ee turno6er
indi4e! %i4% take a44ount o$ 4%ara4teri!ti4! !u4% a! !eniorit0 and e>"erien4e1
A !tabi#it0 inde> indi4ate! t%e retention rate o$ e>"erien4ed em"#o0ee!1 Like turno6er
rate!, t%i! 4an be u!ed a4ro!! an or'aniCation a! a %o#e or $or a "arti4u#ar "art o$ it1 T%e
u!ua# 4a#4u#ation $or t%e !tabi#it0 inde> i!/
Number o$ #ea6er! it% one or more 0ear! !er6i4e > :**
Number em"#o0ed a 0ear a'o
-)
-5
RESEAR$H METHODOLO"Y02
1& NATURE AND TYPE O! STUDY02
T%e !tud0 o$ %uman re#ation! i! an e>treme#0 4om"#e> area %ere e>terna#
indu!tr0 en6ironment intera4t it% 4om"an0K! interna# "o#i4ie! and "ra4ti4e! in a 6ariet0
o$ a0!1 T%i! re!ear4% !tud0 a! ADe!4ri"ti6e t0"eB o$ re!ear4% !tud0 be4au!e it in4#ude!
!ur6e0! and $a4t9 $indin' en&uirie! o$ di$$erent kind! and de!4ri"tion o$ !tate o$ a$$air! a!
it a! e>i!t! at "re!ent1
5& TOOLS USED !OR RESEAR$H02
T%e &ua#it0 and re#iabi#it0 o$ re!ear4% !tud0 i! de"endent on t%e in$ormation
4o##e4ted in t%e !4ienti$i4 and met%odo#o'i4a# manner1 AEm"#o0ee !ati!$a4tion !ur6e0B i!
t%e be!t met%od $or Em"#o0ee retention "ro'ram1 T%e &uanti$iab#e (Em"#o0ee retention
!ur6e0. !ur6e0 &ue!tionnaire! and "er!ona# inter6ie! ere main ea"on to e>tra4t
in$ormation $rom t%e re!"ondent!1 T%e!e &ue!tionnaire! ere !"e4i$i4a##0 de!i'ned to
determine !ome ba!i4 $a4t! and o6era## mea!ure o$ em"#o0ee "er4e"tion, attitude!,
moti6ation, 4om"en!ation, ork en6ironment under#0in' 4au!e! o$ em"#o0ee
di!!ati!$a4tion toard! or'aniCation t%at a$$e4t rea# bu!ine!! metri4!, #ike , Em"#o0ee
retention rate! and turno6er1
SOUR$ES O! DATA02
,a/ NATURE O! DATA2
T%e main !our4e o$ data u!ed $or t%i! re!ear4% !tud0 a! APrimar0 !our4eB
be4au!e t%e data 4o##e4tion a! o44urred dire4t#0 to t%e ABB em"#o0eeK! t%rou'%
-E
&ue!tionnaire ($i##ed u". and "er!ona# Inter6ie!1 T%e !tru4ture o$ &ue!tionnaire a! o$
mu#ti"#e 4%oi4e o$ &ue!tion!1
SURVEY BASED ON THE EMPLOYEE SATIS!A$TION !ORM02
To a!!e!! ABB em"#o0eeK! "er4e"tion re'ardin' ork en6ironment, 4or"orate
4ommuni4ation, trainin' and de6e#o"ment "ro'ram, ork $or4e moti6ation and
en'a'ement, 4om"en!ation, "a0 and o6era## !ati!$a4tion toard! t%e or'aniCation and to
a44umu#ate t%e em"#o0eeK! !u''e!tion! re'ardin' t%e ARetention Pro'ramB(%o !%ou#d
retain t%e em"#o0ee! in ABB.1
A tota# o$ around :** !ur6e0 $orm! ere di!tributed to t%e ABB em"#o0eeK! o$
midd#e #e6e# mana'ement "#a4ed in 6ariou! de"artment!1 Some i!!ue! ere di!4u!!ed
it% !e6era# em"#o0ee! t%at ere re#e6ant to t%e re!ear4% !tud0 and a! a re!u#t ne idea!
ere $ramed1
,B/ METHODS O! DATA $OLLE$TON02
T%e met%od o$ data 4o##e4tion a! on AOb!er6ationa# ba!eB t%rou'% &ue!tionnaire
rat%er t%an 4ommuni4ationa# ba!e1 On#0 t%e "ur"o!e o$ t%e !tud0 a! e>"#ained to a##
re!"ondent! in order to 'et 'ood re!"on!e1
,$/ SAMPLIN" DESI"N,TE$HNIDUES O! SAMPLIN"/02
In t%i! !tud0, t%e Probabi#it0 (Random. !am"#in' i! u!ed1 In ASim"#e Random
Sam"#in'B met%od ,t%e 4%an4e! o$ an0 "arti4u#ar unit (item. in t%e "o"u#ation bein'
!e#e4ted i! knon, i1e, t%e !am"#in' o"eration i! 4ontro##ed1 T%e randomne!! i! in6o#6ed
in t%e !e#e4tion "ro4e!! t%u! t%e e!timate! o$ !am"#in' error 4an be made1
,D/ SAMPLE SIME02
-+
T%e !am"#e !iCe $or t%e !ur6e0 a! +* em"#o0ee! o$ ABB 4on!i!tin' o$ a## t%e
de"artment!1
DATA ANALYSIS AND INTERPRETATION02
In order to e>"re!! t%e 4om"#e> data into 4on4i!e and #o'i4a#
$orm t%e data 4o##e4ted a! tran!$ormed into t%e $orm o$ Atab#e! and Pie 4%art dia'ramB1
1& Measure o'era** em+*o.ee satisfa-tion to@ards or:ani?ation0
T%e $o##oin' &ue!tion! ere in4#uded in t%i! !e4tion/9
? U" to %at e>tent 0ou are !ati!$ied it% 0our ?ob and "o!t at 4om"an0 AABBBU
:.:**R ). -+R 5. +*R E. )+R
ANALYSIS0
? U" to %at e>tent 0ou are !ati!$ied it% 2RD a4ti6itie! 8 2R de"t1U
:. :**R ). -+R 5. +*R E. )+R
-=
1
22%
2
42%
3
30%
4
6%
1
2
3
4
ANALYSIS02
? U" to %at e>tent 0ou are a'ree it% or'aniCationa# 'oa#, 6i!ion 8 mi!!ionU
ANALYSIS0
$ON$LUSION02
? E) R o$ em"#o0ee! are -+R !ati!$ied it% 4urrent ?ob and "o!t
? 5< R o$ em"#o0ee! are +* R !ati!$ied it% 2RD a4ti6itie! and 2R de"t1
? += R o$ em"#o0ee! are a'ree it% or'aniCation 'oa#, 6i!ion and mi!!ion
It mean! t%at out o$ :**, #e!! t%an 5* R o$ em"#o0ee! are o6era## !ati!$ied toard!
or'aniCation and remainin' are di!!ati!$ied1
--
agree
56%
somewhat
agree
38%
ot
a!!"#$a%"e
5%
&#sagree
1%
agree
somewhat agree
ot a!!"#$a%"e
&#sagree
1
8%
2
30%
3
38%
4
24%
1
2
3
4
5& EMPLOYEE LOYALTY02
T%e $o##oin' &ue!tion! ere in4#uded in t%i! "art/9
? P#ea!e indi4ate t%e number o$ 0ear! 0ou %a6e orked in 0our 4urrent ?obU
ANALYSIS02
? 2o mu4% be#on' ne!! 0ou %a6e it% t%e or'aniCationU
:. )+R ). +*R 5. -+R E. :**R
-<
"ess
tha 1
'ear
32%
1(3
'ears
48%
4(5
'ears
4%
more
tha )#*e
'ears
16%
"ess tha 1 'ear
1(3 'ears
4(5 'ears
more tha )#*e
'ears
ANALYSIS0
? @ou#d 0ou #ike to ?oin anot%er or'aniCationU
ANALYSIS02
+ES
64%
,O
30%
,O
CO--E
,T
6%
+ES
,O
,O CO--E,T
$ON$LUSION02
? E< R O$ em"#o0ee! are orkin' in t%i! or'aniCation $rom #a!t :95 0ear!1
? Ma> +* R o$ em"#o0ee! %a6e -+R be#on'ne!! it% t%i! or'aniCation1
? =E R o$ em"#o0ee! ant to ?oin anot%er or'aniCation $or better 4areer 'rot% and
"ro!"e4t!1
It mean! t%at9
A""ro>imate#0 more t%an +* R o$ em"#o0ee! are #o0a# to t%e or'aniCation1
-;
1
12%
2
14%
3
50%
4
24%
1
2
3
4
7& %OR ENVIRONMENT02
? 2o i! 0our ork en6ironmentU
ANALYSIS02
.oo&
65%
Best
13%
/orst
2%
,ot
a$$or&#
g to 'o0
20%
.oo&
Best
/orst
,ot a$$or&#g to
'o0
$ON$LUSION02
On#0 -* R o$ ABB em"#o0ee! are !ati!$ied about t%eir ork en6ironment J
4u#ture1
8& %OR!OR$E MOTIVATION AND EN"A"EMENT02
T%e $o##oin' &ue!tion! ere e!timated durin' t%i! "ortion/9
? Doe! 0our mana'erJ!u"er6i!or 4#ear#0 de$ine 0our ?ob re!"on!ibi#itie!J?ob
de!4ri"tionU
ANALYSIS02
treme "re!!ure !ituationU
ANALYSIS02
imate#0 -*R ABB em"#o0ee! are a'reed about ork$or4e moti6ation and
en'a'ement "ro6ided b0 mana'er and !u"er6i!or!1
+1 $ORPORATE $ULTURE/9
$ON$LUSION02
"erien4e1 T%ere are !ome $o##oin' rea!on! to !ta0 in
t%i! or'aniCation 'i6en b0 ABB em"#o0ee!/9
:1 ABB brand and re"utation(MNC.
)1 Market #eader in "oer and automation
51 Be!t inter"er!ona# re#ation!%i", Et%i4! and 6a#ue!
E1 7ood ork en6ironmentJ 4u#ture1
+1 A6ai#abi#it0 $or 4areer 'rot% and ad6an4ement
=1 Po!iti6e !u""ort $rom !u"erior! and mana'er!
-1 F#at !tru4ture ( No %ierar4%0.
4e##ent Better 7ood Poor