Description
project report on talent retention
Project Report On “Retention of Critical Talents”
WELSPUN CORP LTD ANJAR
By: Rachit Badlani
Designation: Management Trainee Department: HCGA
Preface
This report has been prepared in accordance with the project (Retention of critical talents) taken up in Welspun Corp. Ltd. at Anjar. The duration of this study was from 15th June to 15th Sep ’11. The aim of this project was to identify areas of high manpower attrition, identify the causes and suggest some measures to curb the same. Acknowledgement This project bares an imprint of many people and it gives me immense satisfaction to express my sincere gratitude towards Mr. Sanjay Singh (Head HCGA) who gave me this opportunity to carry out this study. I would also like to thank all the process owners and their team members of different verticals of HCGA department for their kind cooperation.
Contents
Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Topic Executive Summary Objective of the study Research methodology Conceptual framework About Welspun Corp Ltd Literary view Scope of the study Secondary Data presentation Exit Interview forms analysis Data from unstructured interviews Questionnaire analysis Hypothesis testing Findings Recommendations Best practices from the best employers Bibliography
Executive Summary This project study has given me valuable insight into the various facets of the concept of talent retention. The main objective was to identify different areas affected by manpower attrition, identify the causes and suggest some measures to curb the same. With these objectives a primary research was conducted. For secondary data a detailed analysis of the attrition patterns was done based on which the hypothesis was formed. The primary data was collected through unstructured interviews and a special questionnaire was also designed. Objective of the study To understand factors which are mainly responsible for employee attrition and to suggest certain activities or policies that the company can adopt to curb employee attrition and retain employees. Research methodology Scope of study: employees of Welspun Corp ltd Area: Anjar Time: 15th June 2011 to 15th Sept Research design: Exploratory and Descriptive research Sources of data:
•
•
Primary: Through unstructured interviews and questionnaire. Secondary: Through exit interview data and other data provided by the company.
Sampling technique: Random sampling Sampling size: 40 employees Statistical technique: Chi square test
Conceptual framework Business leaders everywhere face numerous challenges. At the forefront of those challenges is sustaining the competitive advantage in today’s era of cut throat competition. A customer, be it corporate or individual has a variety of options to choose from. The key to difference in a highly commoditized market lies with the top performers who can be depended upon to innovate and differentiate. In other words human assets are the key for any organization. Many organizations are struggling to find and keep these valued employees. Attrition is becoming a major problem day by day and can be a huge factor in times to come. Relevance of the study The project has been taken up to identify the areas and reasons for attrition in Welspun Corp Ltd, Anjar. Apart from this the research would also identify the problems faced by the employees and the major employee concerns. About Welspun Corp Ltd Welspun Corp Ltd. (WCL), the flagship company of Welspun Group, is today probably the largest large diameter line pipe company in the world. It is ranked as the 2nd Largest (large diameter) pipe producer by Financial Times UK and awarded 'The ‘Emerging Company of the Year' by Economic Times, 2008, respectively. With a strong culture of ‘Engineering Excellence' WCL takes pride in manufacturing and supplying some of the most critical pipelines to the world from its India and U.S. plants with an installed line pipe capacity of nearly 2.0 MTPA.
Welspun Corp Ltd. comprises of:
Welspun Pipes Division: With facilities in Dahej (Gujarat), Anjar (Gujarat) and Mandya (Karnataka) in India, Dammam in Saudi Arabia and
Little Rock in U.S., WCL’s Pipes division is today among the largest welded pipe Company in the World. Welspun Plates and Coil Division: The one-of-its-kind facility can manufacture Plates up to an enviable width of 4.5 meters and Coils up to 2.8 meters wide. Besides catering to the internal requirements of Welspun, this facility also services high-end Plate and Coil manufacturing for external clients. Welspun Tubular LLC (USA): Adjacent to the Little Rock Port, this stateof-art spiral pipe and coating facility is spread across 740 acres and has an annual capacity of 350,000 tons, making it one of the largest industrial initiatives in the state of Arkansas, USA. The Company recently announced the acquisition of a 44 acre site formerly owned by the Wheatland Tube Company. Welspun Natural Resources Ltd.: Welspun Natural Resources Ltd has a joint venture with Adani Enterprises Ltd. to form Adani Welspun Exploration Ltd with Welspun stake of 35% in the JV. It has a portfolio of eight oil and gas assets across India, Thailand and Egypt. Welspun Energy Ltd: Welspun Energy Ltd. has been incorporated to setup Thermal Power plants and also to fulfill the commitment towards Green Environment by setting up Solar Energy power generating facilities. Welspun Projects Ltd: Welspun Infra-tech Ltd recently announced the acquisition of MSK Projects India Ltd, thereby marking Welspun’s entry into the $500 dollar infrastructure sector in India. The Company now has the capabilities to lay oil & gas and water pipelines. Welspun Middle East Pipe LLC: WCL recently acquired 50.01 % interest in Aziz European Pipe Factory. This is one of the largest spiral pipe manufacturing facilities in the area. This state-of-the-art mill was setup in 2006 and can produce up to 300,000 MTPA of spiral pipes.
Welspun Corp Ltd, Anjar facility includes Spiral 1, Spiral 2, Spiral 3, Coating plant, Lsaw, Plate and Coil Mill Division (PCMD) and Growth Shop. To its credit, the company has supplied pipes for World’s deepest pipeline project (Independence Trail', Gulf of Mexico), Highest Pipeline project (Peru LNG), to the longest pipeline (Canada to US) and the heaviest Pipeline (Persian Gulf). WCL’s has an esteemed client list which includes Transcanada, Enterprise, Kinder Morgan, Texas Gas, Hunt Oil, Saudi Aramco, Elpaso, Exxon Mobil and Qatar Petro DOW to name a few. BOARD OF DIRECTORS
Name Mr. BK Goenka Mr. Rajesh R. Mandawewala Mr. M. L. Mittal Mr. Asim Chakraborty Mr. K. H. Viswanathan Mr. Raj Kumar Jain Mr. R. G. Sharma Mr. Nirmal Gangwal Mr. Mukul Sarkar
Designation Chairman Managing Director Executive Director- Finance Director Director Director Director Director Nominee of Export Import Bank
Key management Name Mr. Parvez Umrigar Mr. B.R. Jaju Mr. Akhil Jindal Mr. Vipul Mathur Mr. L.T. Hotwani Mr. Prashant K. Mukherjee Mr. David Delie Designation MD & CEO- Welspun Infra-tech Ltd Director & CFO Director- Corporate Affairs Director(Sales & Marketing-Pipes & Plate division) Director- Supply Chain Management Director-Welded Pipes President(Welspun Tubular LLC,USA)
Literature review Attrition: Attrition rate is defined as the number of employees who leave the company during a specified time period divided by the average total number of employees over that time period. It is expensive and no productive. Harvard business review article estimated the cost of turnover at around 150% of an employee’s annual salary and could affect up to 40% of the company’s profits. Attrition cycle
This attrition cycle is explained below: 1. Attrition results into decreased productivity
2. When people leave there is extra pressure on other employees to work causing them to leave as well. 3. This results into less revenue and more of cost which leads to efforts towards reduction in costs. This ultimately makes working more difficult causing the best performers to leave. A company is not hurt because people leave, it is hurt because the employees who leave, take away knowledge and there is no immediate replacement for them. Attrition is not bad; it has always been known to exist. While a certain percentage of employee turnover is good to get the fresh blood coming in and removing the dead wood but higher percentage is not good for any organization as it would reflect company’s culture and working conditions. However with technology changing rapidly and manpower costs going higher day by day attrition hurt badly. It is a challenge Attrition is spreading to the traditional sectors as well. Attrition is not just restricted to the BPO sector; it is spreading fast across other sectors such as manufacturing, engineering and services as well. The possible vulnerability of white collar workers should alarm bells. There is a serious need for companies to engage employee’s interest by creating conducive environment for growth. Talent poaching Losing employees to competitors is common but this practice is on high in today’s scenario. The term employee poaching means to entice an employee to move from one firm to its competitor and this is where the HR department faces a very big challenge. In the recent times the aviation sector is worst hit by the same, state owned airlines have lost several of their crew members to the new airlines. The IT industry has always been a happy hunting ground for poachers. There has been a misconception in minds of the employers that emoluments are only factor when it comes to retaining key talent. An employee may switch jobs for a variety of reasons. Factors affecting job satisfaction may vary in case of every employee.
Talent retention
What is talent retention?
• • • • • •
Stopping people from leaving the organization. All about keeping good people. Getting our compensation and benefits in line with the market place. It relates to culture and how people are treated. Curbing the high employee turnover in the company. Presenting a consistent, effective employer proposition across the entire employee lifecycle thus ensuring that the company sources, hires, manages and develops employees who partner with the company in achieving its organizational goals.
These were different perceptions of various managers about the term talent retention. It’s a term that means many things to many people, with its meaning and means of achieving usually specific to each organization and even to each manager and each employee. Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs. A strong retention strategy becomes a powerful recruitment tool. Retention of key employees is critical to the long-term health and success of any organization. It is a known fact that retaining your best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning and deeply imbedded organizational knowledge and learning. Employee retention matters as organizational issues such as training time and investment; lost knowledge; insecure employees and a costly candidate search are involved. Hence failing to retain a key employee is a costly proposition for an organization. Various estimates suggest that losing a middle manager in most organizations costs up to five times of his salary. Intelligent employers always realize the importance of retaining the best talent. Retaining talent has never been so important in the Indian scenario; however, things have changed in recent years. In prominent Indian metros at least, there is no dearth of opportunities for the best in the business, or even for the second or the third best. Retention of key employees and treating attrition troubles has never been so important to companies.
In an intensely competitive environment, where HR managers are poaching from each other, organizations can either hold on to their employees tight or lose them to competition. For gone are the days, when employees would stick to an employer for years for want of a better choice. Now, opportunities abound. It is a fact that, retention of key employees is critical to the long-term health and success of any organization. The performance of employees is often linked directly to quality work, customer satisfaction, and increased product sales and even to the image of a company. Whereas the same is often indirectly linked to, satisfied colleagues and reporting staff, effective succession planning and deeply embedded organizational knowledge and learning. Employee retention matters, as, organizational issues such as training time and investment, costly candidate search etc., are involved. Hence, failing to retain a key employee is a costly proposition for any organization. Various estimates suggest that losing a middle manager in most organizations, translates to a loss of up to five times his salary. This might be worse for BPO companies where fresh talent is intensively trained and inducted and then further groomed to the successive stages. In this scenario, the loss of a middle manager can often prove dear. Basis for Talent Retention 1. Empower Your Employees to Shine By Helping Them Own Their Gifts at Work ? As you interact with employees, see every one as unique and gifted, especially the star employees. Your role is to find the innate gifts within each one of your fellow employees as you interact with them. ? Work with your employees to identify their top two gifts and help them bring those gifts to the projects they are currently working on. A sample list of possible innate gifts includes: Creativity, Facilitating, Listening, Intelligence, Intuiting, Writing, Leading, Researching, Teaching, Developing, Strategizing, Motivating, or Evaluating.
2. Identify exactly what tasks or responsibilities bring
your top stars career Fulfillment ? Have a meeting with your employees to identify the three aspects of their work they find most fulfilling. You want to understand not only what tasks, but which elements of the tasks and responsibilities, are most satisfying. Next, help them bring more of this type of fulfilling work into each day.
? Spend time with your employees to understand the things other than money that fulfill them at work. Then review the following list and select two areas through which each employee can cultivate more fulfillment in the current job: mentoring relationships; freedom to create; making a contribution; learning and developing on the job; working with intelligent, creative, and passionate colleagues; participating in the organization's direction and overall vision; and anything else you would like to add. 3. Encourage Your Employees to Focus More On What’s Right with Their Jobs and Less on What’s Wrong ? Highlight the accomplishments of your employees and help them leverage their areas of success. Not only will this improve the profile of the accomplished employee in the company and potentially lead to a promotion or a raise, but it will promote a positive view of themselves and their capabilities. ? Have a meeting with every employee to discuss and review what is going right on the job. By not always focusing on what is wrong with their work and seeing it as a challenge, employees can focus on and appreciate the many opportunities present for making their jobs work for them. 4. Communicate Effectively for Great Relationships at Work
?
Guide your employees to accept the coworkers who challenge them, helping them look for the positive instead of the negative in those people. They can learn to step back, detach from their own agenda and viewpoint, and look at the challenging coworker with new eyes. This new viewpoint can occur when an employee tries to truly understand the coworker, what he thinks and feels, and why he behaves as he does. After stepping into another’s shoes and viewing things from his perspective, the question becomes, “How can I accept this individual’s imperfections and shortcomings as well as his strengths and talents?”
? Encourage managers and supervisors to be more accessible to their employees, especially the stars, so they can better ascertain their primary needs. By being more accessible, your employees will feel that you genuinely care about them. They will feel listened to. This open
communication allows employees to feel comfortable sharing what is on their mind. By responding to employee needs immediately and directly before they become real issues, you will eliminate the danger that they will need to find another workplace to get those needs met.
5. Improve Your Employees’ Morale by Showing Them How to Work Smarter Instead of Harder. ? Spend time with your employees and help them make a list of all their daily roles, responsibilities, tasks, and activities. As they write this list, help them become aware of the following concepts that can simplify their workday: do more, do it faster, work smarter, and be more fully committed. Then eliminate as much as possible from the list until it reaches a point at which they can’t do it any faster and smarter. Employers need to help their employees look at their entire work life and all that it encompasses and learn to simplify. When we don’t simplify, our lives become too complicated and we become powerless.
?
Help your employees prioritize their most important activities. Ask them to write down the most important tasks they must complete. Next, have them number them in order of priority. If employees need help finding the most important tasks, have them ask the following questions: If I could complete one activity/task today, what would it be? Is this activity the best use of my time, knowledge, creativity, and experience? Have them focus on the most important task until it is finished, then recheck the priority list and focus their efforts on the next most important activity.
6. Besides More Money, Offer Quality Life Programs to Help Your Employees Maintain Balance Between Professional and Personal Life ? Help your employees create flexible time (flex-time) for work and their own personal well-being. Teach them how to create a working environment that brings their work and life together in proper balance. This can include making sure your employees have enough hours each week to enjoy non-work related activities. Facilitate proper balance by helping employees understand how to use flex-time or other creative scheduling alternatives to spend more time
on non-work activities that bring proper balance into their lives. ? Many employees have difficulty creating proper balance in their lives because their work life is so consuming. When employees begin to gain self-control and equanimity in their work lives, they will have made space for other parts of their lives. Here are some other ways to help your employees create balance in their work/personal lives. ? Help them keep their self-expectations and those of their manager at a reduced level.
?
Help them “under promise” and “over deliver” by promising far less than they know they can do or less than the person is asking them to do. ? Learn to say no to nonessential tasks and to people who might be inappropriately monopolizing their time. ? Help them take breaks throughout the day in order to revitalize themselves. ? Help them realize the importance of not taking work home with them on a regular basis in order to separate their work life from their home life.
7. Ask Employees to Identify and Focus on What Is Enjoyable.
?
Have your employees get together to select and discuss the most enjoyable activity or project in their jobs. After the discussion, ask them to make a list of all the activities or projects they need to complete that day or the next. Have them select the one they find most enjoyable and begin the day working on that one. Once every couple of weeks, encourage your employees to select an “enjoyable” task as their focus for an entire day. ? Help your employees identify the work they find most enjoyable, those tasks that excite them or that they find themselves repeatedly drawn to doing. Once they have identified two elements that they enjoy, have them create new projects that incorporate those activities.
8. Improve Your Employees’ Overall Relationship with Their Jobs through Active Involvement and Constant Praise ? Give your employees the opportunity to make a difference and become more actively involved in the organization by having them volunteer their time to support and help run some of the company’s internal functions and take part in off-site company volunteer efforts. ? People need to know that their efforts for the company are recognized. When employees don’t receive any recognition for their performance, it can cause a lack of involvement and even disengagement. You can greatly help your employees by encouraging them and showing them how to ask for positive feedback and recognition from their managers. They shouldn’t have to wait for their annual review to get positive feedback on the work they are doing. After all, you can’t be proud of yourself until somebody’s been proud of you. 9. Open Their Minds to the Possibilities and Reality of Loving Their Work. ? Without a clear-cut understanding of what they have to do to advance or succeed, people quickly become demotivated. Explain what’s required for your employees to move forward in the organization based on the company’s or department’s plans for the next one, three, and five years. Provide clear career paths to encourage your employees to explore new career possibilities in-house so they can make a lateral shift within the company. A lateral move can help them enjoy their jobs and stay engaged. ? Help your employees discover new and exciting opportunities (new projects and new activities) that lie within their work that will bring them a greater sense of love for what they currently are doing. 10.Establish a Mentoring or Coaching Program
?
Encourage your star employees to spend time mentoring with other model coworkers who enjoy their jobs and are performing well. Mentoring allows your employees to observe, study, and shadow the person they most identify with so they begin to understand what they do that helps them enjoy their work so much.
? Designate senior employees who will act as impartial, unconditionally supportive guides who ask evocative questions to draw out your star’s wisdom.
Three R’s of retention
Respect is esteem, special regard, or particular consideration given to people. As the pyramid shows, respect is the foundation of keeping your employees. Recognition and rewards will have little effect if you don’t respect employees Recognition is defined as “special notice or attention “Many problems with retention and morale occur because management does not pay enough attention to people’s needs and reactions. Rewards are the extra perks you offer over and above the fixed remuneration, as a result of good performance delivered by any employee. Rewards represent the smallest portion in the retention equation still they cannot be ignored. Effect of these 3Rs of retention • • • • Increased productivity Reduced absenteeism More pleasant work environment (both for employer and the employees) Improved profits
Employee attrition could affect 40% of company profits. Around 150% of an employee’s salary (source-Harvard Business Review article) Tangible recovery costs include recruiting, rehiring, and retraining. In fact, a new employee typically is a cost to the company until he or she reaches a threshold of productivity. In higher level technical and management positions this can exceed 6months. For companies that have cut all expenses not deemed mission critical, such as training and recruitment efforts, the lag in performance, additional cost, and stress on remaining employees creates a vicious downward spiral. Equally critical to an organization's viability are its Vital Intangibles (VIs), which can take the form of informal relationships, networking connections or a web of favors a key employee has spun during his or her tenure - favors from vendors or other business contacts that can be called in as needed. VIs are hard to identify and may be even harder to recoup. Many companies will take the steps to protect trade secrets, intellectual property, copyrights and patents, but intangible assets are less obvious, though no less critical to an organization, and their loss is no less damaging. Undocumented workarounds, tricks, tips and "the knack" that come from experience in multiple roles within the organization make up another collection of VIs. Attrition rate calculation Attrition rate (for the year 2010-2011) = [No of separations during the year 2010-2011/ {(Total employee head count as on 1st April 2010 + Total employee head count as on 31st March 2011)/2}]*100
• • •
No. of separations during the period 1st April 2010 to 31st March 2011 = 199 Total employee head count as on 1st April 2010 = 906 Total employee head count as on 31st March 2011 = 947 Attrition rate = [199/ {(906 + 947)/2}]*100 = 21.46%
Scope of study The study was conducted on the employees of WCL Anjar facility. Employees were interviewed with questionnaires which had structured
questions relating to various job factors, the employee was asked to rate each of these factors on the basis of the importance he gives to each of them. Hypothesis
Sr. No. 1.
Research Question Is salary the most important factor for an employee to stay or leave the organization?
Hypothesis Ho: Salary is the most important reason for an employee to stay or leave the organization. H1: Salary is not the most important reason for an employee to stay or leave the organization.
Sources of data Data was collected by both primary and secondary sources. Secondary data was obtained by the company reports and other data which was already recorded. Separated employees data was analyzed. This was followed by a primary survey which was carried out in the form of unstructured interview to find out the problems which employees are facing. It was followed by another source of primary source which was in the form of a questionnaire.
Questionnaire design The questionnaire was designed by taking into consideration various job factors that drive an employee. The questionnaire was helpful to correlate and find out the relative importance of various factors which are responsible for attrition.
The relationship has been found and tested using Chi-square test.
Target population The target population was the employees of WCL, Anjar. Sampling
• •
Sampling design: The sampling was done randomly Sample size: total sample size is 40 employees.
Procedure for data collection For the process of data collection both primary and secondary data were used. Primary data included data from questionnaire and unstructured employee interview as well. Secondary data included data of all the separated employees and a few other company reports.
Secondary data representation relating to the left employees (1st April 2010 to 31st March 2011) Reason of leaving wise
Reason Better Career Opportunity Better Pay Package Changing Field Current Location/Family Problem Dissatisfied with current role Family Commitments Total 50 41 1 8 1 34
Going to Native Place Higher Studies Increment Job Rotation at Welspun Not Accepting Kutch Climate Relocating to Dubai Termination Grand Total
31 11 2 1 1 1 17 199
Department wise
Department Accounts Central Maintenance Civil Commercial Head Design Elect. Maintenance Electrical Excise HCGA HSE IT L&D, IR & Legal Legal & liasoning Logistics Mech. Maintenance MIS & Costing N.A NA Operations Operations Head PPC Purchase QA QC/QA QC/QA Head SAP Security Stores Time Office Unity Project Utility Workshop (blank) Grand Total
Total 1 2 6 1 3 20 1 1 5 1 6 1 1 2 17 3 3 2 42 1 1 3 1 51 1 1 2 7 1 1 2 5 4 199
Duration in Welspun wise
In Years 0 to 1 1 to 2
Total 58 40
2 to 3 3 to 4 4 to 5 5 to 6 6 & Above Grand Total
54 21 9 8 9 199
Designation wise
Designation Assistant Asst. Engineer Asst. Foreman Asst. Manager DET DGM Engineer Total 8 19 1 13 7 1 57
Foreman GET GM Inspector Management Trainee Manager Officer Security Supervisor Sr. Assistant Sr. Engineer Sr. Engineer Sr. Foreman Sr. Inspector Sr. Manager Sr. Officer Trainee Assistant Trainee Inspector Grand Total
1 12 2 6 1 6 10 1 3 18 10 2 1 6 12 1 1 199
Division wise
Division 3LPE 3LPE (IC) 3LPE (SD) Central Maintenance Central Projects Civil Commercial Commercial Head ERW 16" ERW 6" F&A HCGA HSE IT Legal & Liasoning L-Saw (Project) Mandya N.A NA Operations Head PBM Project (Bangalore) Projects Purchase QC Head SAP Security Spiral 1 Spiral 2 Spiral 3 Unity Project Workshop (blank) Grand Total
Total 16 5 5 4 3 3 13 1 11 5 1 7 1 6 1 20 3 3 2 1 1 1 2 3 1 1 2 17 27 21 1 7 4 199
Reason of leaving Better Career Prospects Better Opportunity Compensation Compensation/Family Personal Commitments F&F not done Family Commitments Family/Personal Commitments Further Study Further Study/Dissatisfied with current role Higher Studies New Career Opportunity NP Opportunity in the vicinity of Native place Dissatisfied with current role Family Personal Commitments Termination (blank) Grand Total
Total 8 11 3 1 4 4 4 1 1 1 43 2 4 5 1 1 1 95
Secondary data representation relating to the left employees (1st April 2011 to 30th June 2011) Reason wise
Division wise
Division 3LPE 3LPE (IC) Central Maintenance Central Projects Comm. Relations & Corporate Affairs Commercial ERW 16" ERW 6" F&A Growth Shop HCGA IT L-Saw (Project) Purchase SAP Security Spiral 1 Spiral 2 Spiral 3 Unity Operations Welspun Middle East LLC Grand Total
Total 4 1 1 3 1 8 6 2 2 6 1 2 10 1 1 2 11 15 14 3 1 95
Designation wise
Designation Assistant Asst. Engineer Asst. Foreman Asst. Manager DET DGM Engineer GET GM GT Inspector Manager Officer Retainer Sr. Assistant Sr. Engineer Sr. Engineer Sr. Inspector Sr. Manager Sr. Officer Sr. Vice President Sr. General Manager Sr. Officer Supervisor Grand Total
Total 2 9 1 4 1 3 30 6 1 2 2 4 4 1 3 8 4 1 2 3 1 1 1 1 95
Reporting Manager Anand Kore Anil Mahajan Anilkumar Patel Arvind Sharma Ashif Sheikh Ashok Pathak Atul Mishra Bharat Sharma
Reporting manager wise
Department wise
Department Total Accounts 2 Civil 1 Comm. Relations & Corporate Affairs 1 Commercial 1 Design 1 Dispatch 1 Elect. Maintenance 10 Excise 1 Growth Shop 4 IT 2 Logistics 5 Mech. Maintenance 4 Operations 23 Projects 1 Purchase 2 In Total QC/QA years 30 0 to 1 Recruitment & HR Operations 15 1 36 SAP 1 to 2 1 2 14 Security to 3 2 14 Stores3 to 4 1 10 Utility 4 to 5 1 5 to 6 2 Grand Total 95 6 & Above 3 Grand Total 94
Duration in Welspun wise
Other data from the employee exit interview forms After studying the recorded information from the exit interview forms, a detailed study and analysis of the hard copies of these exit interviews forms was carried out, which was ultimately very beneficial for finding out
the major causes of manpower attrition and other employee concerns. The same data is represented below:
S.No 1 2 3 4 5 6 7 8 Concern Compensation/salary No involvement in decision making Job profile(unclear, mismatch) Lack of job rotation Location and accommodation problem Infrastructure or facilities provided by the company Job insecurity Lack of proper communication Frequency 45 12 13 16 12 4 1 25
These are the major employee concerns which came up during the detailed study of the exit interview forms. Top of the list is salary or compensation followed by the lack of proper communication and lack of job rotation. The majority of the samples for this study were Sr. Engineers and Engineers.
Data from unstructured interviews Major employee concerns
1. Lack of proper maintenance of the guest house (Manav guest house
2. 3. 4. 5. in case of GETs- bad quality of food, no cooling facility like airconditioner or cooler) Mismatch of job profiles in case of engineers. Lack of housing facility for employees. No fun at work. Lacks of perks and facilities.
6. Lack of responsiveness towards employee problems and concerns.
Questionnaire survey A special questionnaire was designed keeping in mind the major factors related to the job. They are • • • • • • • • • Salary Benefits (telephone and medical facility etc.) Job content Opportunity for development and growth Relationship with the manager Relationship with peers Location of work place Management policies & work culture Resources to do the job.
In the questionnaire all these factors were grouped with each other at least once and were rated against each other on the basis of importance. The idea behind this was to find the level of importance employees give to each of these factors.
The sample size was 40 employees.
S. No 1 2 3 4
Designation GETs Sr. Officer & Officer Sr. Engineers & Engineers Manager & Asst. Mgr.
No. of employees 10 10 10 10
The table below indicates all the data obtained by recording the information out of all the 40 questionnaires which were filled up by employees (GETs, Sr. Officer, Officers, Sr. Engineers, Engineers, Asst. Engineers, Managers and Asst. Managers)
Sr . N o.
S al ar y
Be nef its
Job co nte nt
Oppo rtunit y for devel opme nt 9
1
14 14
12
Relat ionsh ip with the man ager 14
Relat Loc ionsh ati ip on with peer s 7 17
Mana geme nt polici es 10
Res our ces to do the job 11
To tal
Desi gnat ion
10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8
GET
2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7
14 4 17 15 19 13 20 12 13 13 17 9 17 8 15 13 12 8 16 6 15 11 18 4 16 10 9 10
16 8 14 14 12 13 15 13 13 14 14 15 7 16 9 16
16 15 15 17 17 17 20 22 9 18 16 14 15 13 15 16
9 9 5 7 11 12 11 12 16 11 5 12 12 14 12 7
12 10 4 8 12 11 10 9 15 11 4 8 13 12 10 11
17 10 16 11 14 9 12 5 5 4 18 14 13 9 11 5
10 15 10 9 5 7 7 9 14 12 13 11 13 11 13 10
10 9 12 10 11 13 8 10 16 16 12 12 9 14 14 15
GET GET GET GET GET GET GET GET GET Man ager Man ager Man ager Man ager Man ager Asst. Mgr. Asst. Mgr.
15 9 16 12
1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 3 1 3 2 3 3 3 4 3 5 3 6
13 7 15 14 16 8 14 9 16 15 15 13 14 3 16 11 18 11 16 7 16 11 16 9 14 11 16 9 19 11 12 7 16 11 17 14 12 12
16 10 13 10 11 14 16 10 12 16 9 11 15 14 15 20 12 12 16
19 15 18 17 15 18 9 20 16 14 15 18 18 16 21 20 16 15 12
15 11 10 10 5 11 15 9 11 15 8 9 13 12 4 7 10 12 10
12 15 7 10 12 9 12 12 12 10 10 12 8 12 5 14 10 10 7
2 8 10 10 10 7 15 6 6 9 12 7 8 6 8 5 11 11 13
13 6 15 14 13 11 12 13 13 9 14 14 12 10 18 14 7 4 14
11 14 11 14 11 10 12 11 9 12 13 12 9 13 7 9 15 13 12
10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8
Asst. Mgr. Asst. Mgr. Asst. Mgr. Sr. Eng. Sr. Eng. Sr. Eng. Sr. Eng. Sr. Eng. Sr. Eng. Asst. Eng Asst. Eng Eng Eng Sr. offic er Sr. offic er Sr. offic er Sr. offic er Sr. offic er Sr. offic er
3 7 3 8 3 9 4 0
17 8 14 7 19 8 17 8
12 17 15 12
15 18 17 15
11 11 11 11
14 12 7 14
8 5 9 8
10 12 12 10
13 12 10 13
10 8 10 8 10 8 10 8
Sr. offic er Offic er Offic er Offic er
Total compiled result
Job conte nt 529 Opportun ity for developm ent 641 Relation ship with the manager 420 Relation ship with peers 413 Managem ent policies 449 Resour ces to do the job 468
Sala ry 621
Benef its 395
Locati on 384
Tot al 432 0
Findings The survey conducted for 40 employees reflects that the most important factor for the employees in general is the opportunity for growth and development (15%). There are other factors as well which are not too far behind; they are Salary (14%), job content (12%) and resources needed to the job (11%). These are the main factors which are responsible for the attrition in the company. All these factors if taken care of well, attrition can be curbed to a great extent. Designation wise result • GETs
Opportun Relation Job ity for ship with Relation conte developm the ship with nt ent manager peers 130 157 106 98 Resour ces to do the job 110
Sala ry 158
Benef its 109
Locati on 116
Managem ent policies 96
•
Managers & Asst. Managers
Sala ry 149
Benef its 91
Opportun Relation Job ity for ship with Relation conte developm the ship with nt ent manager peers 130 159 109 103
Locati on 94
Managem ent policies 117
Resour ces to do the job 128
•
Sr. Engineers, Engineers & Asst. Engineers
Sala ry 155
Benef its 100
Opportun Relation Job ity for ship with Relation conte developm the ship with nt ent manager peers 124 160 106 107
Locati on 90
Managem ent policies 125
Resour ces to do the job 113
•
Sr. Officers & Officers
Opportun Relation Job ity for ship with Relation conte developm the ship with nt ent manager peers 145 165 99 105 Managem ent policies 111 Resour ces to do the job 115
Sala ry 159
Benef its 95
Locati on 86
Hypothesis testing H0: Salary is the most important factor H1: Salary is not the most important factor
Chi- Square calculations
Expected (E) 960 420 Observe d(O) 621 395 {(OE)^2}/E 119.7093 75 1.488095
Factor Salary Benefit
O-E -339 -25
(O-E)^2 114921 625
Job content Opportunity for development Relationship with the manager relationship with peers Location Management policies Resource to do the job Total
420 420 420 420 420 420 420 4320
529 641 420 413 386 449 466 4320
109 221 0 -7 -34 29 46
11881 48841 0 49 1156 841 2116
24 28.28809 52 116.2880 95 0 0.116666 67 2.752380 95 2.002380 95 5.038095 24 275.6831 85
Degrees of freedom = Number of factors – 1 =9-1 =8 Level of significance = 0.05 Table value = 15.507
The computed value is higher than the critical value; hence we reject the null hypothesis. The hypothesis is rejected and hence we accept the alternative hypothesis that salary is not the most important factor for the employees. Findings • • Although salary is very important but it is not the most important factor. The most important factor that came out to be is the opportunity for growth and development.
•
Next most important factor came out to be was Salary followed by job content and resources needed to the job.
This survey highlighted the factors which are most important to people. So all the retention strategies should be formulated keeping in mind the factors which were given high importance. If the strategies are focused on these factors then the attrition problem can be curbed to a great extent.
Recommendations 1. Opportunity for growth and development • A strong development plan (job rotation, development programs etc.) should be formulated for the engineer level people, where maximum amount of attrition is observed. There should be a comprehensive induction process for every new joiner. It should be effective and should cover all areas of concern. A strong need for an effective online appraisal system.
•
•
1. Salary
•
•
Standardized compensation should be adopted across the unit which is competitive with the market rate Benefits like retention bonus should be considered
1. Job content • • Job profile should be assigned keeping in mind the interest and qualification of the employee (especially at engineer level) There should be a proper job rotation plan which gives the employee (especially at engineer level)
1. General areas
•
The accommodation facility for GETs is not up to the mark. Hotel Manav is not well maintained. There should be a cooler or an air conditioner put in every room, considering the fact that it gets really difficult to stay, given the regional climate. Holding meetings with employees regularly to identify their areas of concern.
•
Low level employee retention strategies 1. 2. 3. 4. 5. Personalized thank you or appreciation cards for a job well done. Congratulation E cards or cards sent to the families Scholarships for employee’s children at Welspun Vidya Mandir Discounts at Welhome stores across India for the employees Fun at work • Celebrating days like Green day • Organizing company picnics • Mini carnival at the plant once in two months
Let’s see what the best employers do?
1. Procter & Gamble • • • • Early responsibility in the career Flexible and transparent culture Global opportunities through a variety of exposure and diverse experiences Performance recognition
1. American express India
• •
Value based environment Pioneer in people practices
1. NTPC
• • • •
Immense learning and growth opportunities Competitive rewards Opportunity to learn, grow and implement Strong social security, employee welfare and performance oriented culture.
1. Johnson & Johnson
• • • • •
Strong values of trust, care, fairness and respect within the organization Freedom and autonomy to operate at work Early responsibility in the career Visible, transparent and accessible leaders Innovative HR programs and practices
1. Glaxo Smith Kline Consumer Health Care
• • • • • •
Performance driven rewards Its belief in growing our own timber Comprehensive development and learning programs Flat organization where performance can lead to very quick progression Challenging work context Comprehensive induction and orientation program
1. TATA Steel
• • •
Strong organizational philosophy and culture. Job stability Freedom to work an innovate
1. Colgate Palmolive India
• • •
Open transparent and caring organization Structured career planning process Global career opportunities
1. Wipro
• • •
Early opportunities for growth High degree of autonomy Value compatibility
1. Indian Oil Corporation
• • •
Work ethics Learning and growth opportunities Challenging work assignments
1. TATA Consultancy Services
•
Strong corporate governance and citizenship
• • • •
Commitment to learning and development Strong system for creating future leaders Opportunity to work with fortune 500 clients Sound organization environment
Conclusion Study of HR practices and employee attrition in the organization was a great learning experience. It helped understand intricacies of role of HR in an organization. The study helped in finding out the most important and critical reasons for employee attrition in the organization. There has been immense learning and realization relating to attrition and retention, cost of attrition, causes of high attrition and reasons for attrition The study helped in understanding the relative importance of various factors responsible for employee attrition, also revealed the fact that that opportunity for development and growth is most important for the employees of the organization. There is a crisis in human capital management. We need fundamental reform in order to address this crisis and ensure long-term ability to hire and manage a high-quality, highperforming workforce. Most employees are not motivated solely by money. Historically, firms have used money and financial rewards to retain employees. High tech employees are enjoying t h e fastest salary progression of almost any profession, yet they are changing jobs constantly. Today’s employees seek more than monetary compensation. Research conducted in the company revealed that opportunity for development, salary, job content and resources to do the job are important reasons for employee attrition. The myth that salary is the most important reason for employee attrition was clarified as employees are more concerned about opportunity for development. Salary is also important, salary needs to be competitive with the market rates else there is a high risk of losing your employees to your competitors.
Annexure 1
Questionnaire
Date: __________ Objective: The objective of this questionnaire is to co-relate the important attributes that one considers to work for an organization. Directions: Please allocate 3 points between the two alternative reasons in each pair based on perceived importance in the following fashion.
0 3
1 2
2 1
3 0
Numbers assigned to each pair should add up to 3
1. Job content Resource to do the job
2. Salary Benefits (telephone, medical facility etc)
3. Opportunity for development & growth Location of work place
4. Relationship with the peers Job content
5. Relationship with the manager Management policies and work culture
6. Benefits (telephone, medical facility etc) Management policies and work culture
7. Location of work place Relationship with peers
8. Resources to do the job Relationship with the manager
9. Management policies and work culture Salary
10.Job content Location of work place
11.Relationship with the manager Relationship with peers
12.Benefits (telephone, medical facility etc) Resources to do the job
13.Opportunity for development & growth Management policies and work culture
14.Salary Location of work place
15.Job content Relationship with the manager
16.Benefits (telephone, medical facility etc) Opportunity for development & growth
17.Resources to do the job Location of work place
18.Relationship with the manager Benefits (telephone, medical facility etc)
19.Relationship with peers Management policies and work culture
20.Job content Salary
21.Location of work place Relationship with the manager
22.Resources to do the job Management policies and work culture
23.Relationship with peers Opportunity for development & growth
24.Job content Benefits (telephone, medical facility etc)
25.Management policies and work culture Location of work place
26.Salary Resources to do the job
27.Relationship with peers Benefits (telephone, medical facility etc)
28.Opportunity for development & growth Salary
29.Job content Management policies and work culture
30.Relationship with the manager Salary
31.Resources to do the job Relationship with peers
32.Job content Opportunity for development & growth
33.Salary Relationship with peers
34.Opportunity for development & growth Relationship with the manager
35.Benefits (telephone, medical facility etc) Location of work place
36.Resources to do the job Opportunity for development & growth Des ignation: __________
Bibliography
• • • •
www.humanresource.com www.citeHR.com www.google.com www.wikipedia.com
doc_595180512.docx
project report on talent retention
Project Report On “Retention of Critical Talents”
WELSPUN CORP LTD ANJAR
By: Rachit Badlani
Designation: Management Trainee Department: HCGA
Preface
This report has been prepared in accordance with the project (Retention of critical talents) taken up in Welspun Corp. Ltd. at Anjar. The duration of this study was from 15th June to 15th Sep ’11. The aim of this project was to identify areas of high manpower attrition, identify the causes and suggest some measures to curb the same. Acknowledgement This project bares an imprint of many people and it gives me immense satisfaction to express my sincere gratitude towards Mr. Sanjay Singh (Head HCGA) who gave me this opportunity to carry out this study. I would also like to thank all the process owners and their team members of different verticals of HCGA department for their kind cooperation.
Contents
Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Topic Executive Summary Objective of the study Research methodology Conceptual framework About Welspun Corp Ltd Literary view Scope of the study Secondary Data presentation Exit Interview forms analysis Data from unstructured interviews Questionnaire analysis Hypothesis testing Findings Recommendations Best practices from the best employers Bibliography
Executive Summary This project study has given me valuable insight into the various facets of the concept of talent retention. The main objective was to identify different areas affected by manpower attrition, identify the causes and suggest some measures to curb the same. With these objectives a primary research was conducted. For secondary data a detailed analysis of the attrition patterns was done based on which the hypothesis was formed. The primary data was collected through unstructured interviews and a special questionnaire was also designed. Objective of the study To understand factors which are mainly responsible for employee attrition and to suggest certain activities or policies that the company can adopt to curb employee attrition and retain employees. Research methodology Scope of study: employees of Welspun Corp ltd Area: Anjar Time: 15th June 2011 to 15th Sept Research design: Exploratory and Descriptive research Sources of data:
•
•
Primary: Through unstructured interviews and questionnaire. Secondary: Through exit interview data and other data provided by the company.
Sampling technique: Random sampling Sampling size: 40 employees Statistical technique: Chi square test
Conceptual framework Business leaders everywhere face numerous challenges. At the forefront of those challenges is sustaining the competitive advantage in today’s era of cut throat competition. A customer, be it corporate or individual has a variety of options to choose from. The key to difference in a highly commoditized market lies with the top performers who can be depended upon to innovate and differentiate. In other words human assets are the key for any organization. Many organizations are struggling to find and keep these valued employees. Attrition is becoming a major problem day by day and can be a huge factor in times to come. Relevance of the study The project has been taken up to identify the areas and reasons for attrition in Welspun Corp Ltd, Anjar. Apart from this the research would also identify the problems faced by the employees and the major employee concerns. About Welspun Corp Ltd Welspun Corp Ltd. (WCL), the flagship company of Welspun Group, is today probably the largest large diameter line pipe company in the world. It is ranked as the 2nd Largest (large diameter) pipe producer by Financial Times UK and awarded 'The ‘Emerging Company of the Year' by Economic Times, 2008, respectively. With a strong culture of ‘Engineering Excellence' WCL takes pride in manufacturing and supplying some of the most critical pipelines to the world from its India and U.S. plants with an installed line pipe capacity of nearly 2.0 MTPA.
Welspun Corp Ltd. comprises of:
Welspun Pipes Division: With facilities in Dahej (Gujarat), Anjar (Gujarat) and Mandya (Karnataka) in India, Dammam in Saudi Arabia and
Little Rock in U.S., WCL’s Pipes division is today among the largest welded pipe Company in the World. Welspun Plates and Coil Division: The one-of-its-kind facility can manufacture Plates up to an enviable width of 4.5 meters and Coils up to 2.8 meters wide. Besides catering to the internal requirements of Welspun, this facility also services high-end Plate and Coil manufacturing for external clients. Welspun Tubular LLC (USA): Adjacent to the Little Rock Port, this stateof-art spiral pipe and coating facility is spread across 740 acres and has an annual capacity of 350,000 tons, making it one of the largest industrial initiatives in the state of Arkansas, USA. The Company recently announced the acquisition of a 44 acre site formerly owned by the Wheatland Tube Company. Welspun Natural Resources Ltd.: Welspun Natural Resources Ltd has a joint venture with Adani Enterprises Ltd. to form Adani Welspun Exploration Ltd with Welspun stake of 35% in the JV. It has a portfolio of eight oil and gas assets across India, Thailand and Egypt. Welspun Energy Ltd: Welspun Energy Ltd. has been incorporated to setup Thermal Power plants and also to fulfill the commitment towards Green Environment by setting up Solar Energy power generating facilities. Welspun Projects Ltd: Welspun Infra-tech Ltd recently announced the acquisition of MSK Projects India Ltd, thereby marking Welspun’s entry into the $500 dollar infrastructure sector in India. The Company now has the capabilities to lay oil & gas and water pipelines. Welspun Middle East Pipe LLC: WCL recently acquired 50.01 % interest in Aziz European Pipe Factory. This is one of the largest spiral pipe manufacturing facilities in the area. This state-of-the-art mill was setup in 2006 and can produce up to 300,000 MTPA of spiral pipes.
Welspun Corp Ltd, Anjar facility includes Spiral 1, Spiral 2, Spiral 3, Coating plant, Lsaw, Plate and Coil Mill Division (PCMD) and Growth Shop. To its credit, the company has supplied pipes for World’s deepest pipeline project (Independence Trail', Gulf of Mexico), Highest Pipeline project (Peru LNG), to the longest pipeline (Canada to US) and the heaviest Pipeline (Persian Gulf). WCL’s has an esteemed client list which includes Transcanada, Enterprise, Kinder Morgan, Texas Gas, Hunt Oil, Saudi Aramco, Elpaso, Exxon Mobil and Qatar Petro DOW to name a few. BOARD OF DIRECTORS
Name Mr. BK Goenka Mr. Rajesh R. Mandawewala Mr. M. L. Mittal Mr. Asim Chakraborty Mr. K. H. Viswanathan Mr. Raj Kumar Jain Mr. R. G. Sharma Mr. Nirmal Gangwal Mr. Mukul Sarkar
Designation Chairman Managing Director Executive Director- Finance Director Director Director Director Director Nominee of Export Import Bank
Key management Name Mr. Parvez Umrigar Mr. B.R. Jaju Mr. Akhil Jindal Mr. Vipul Mathur Mr. L.T. Hotwani Mr. Prashant K. Mukherjee Mr. David Delie Designation MD & CEO- Welspun Infra-tech Ltd Director & CFO Director- Corporate Affairs Director(Sales & Marketing-Pipes & Plate division) Director- Supply Chain Management Director-Welded Pipes President(Welspun Tubular LLC,USA)
Literature review Attrition: Attrition rate is defined as the number of employees who leave the company during a specified time period divided by the average total number of employees over that time period. It is expensive and no productive. Harvard business review article estimated the cost of turnover at around 150% of an employee’s annual salary and could affect up to 40% of the company’s profits. Attrition cycle
This attrition cycle is explained below: 1. Attrition results into decreased productivity
2. When people leave there is extra pressure on other employees to work causing them to leave as well. 3. This results into less revenue and more of cost which leads to efforts towards reduction in costs. This ultimately makes working more difficult causing the best performers to leave. A company is not hurt because people leave, it is hurt because the employees who leave, take away knowledge and there is no immediate replacement for them. Attrition is not bad; it has always been known to exist. While a certain percentage of employee turnover is good to get the fresh blood coming in and removing the dead wood but higher percentage is not good for any organization as it would reflect company’s culture and working conditions. However with technology changing rapidly and manpower costs going higher day by day attrition hurt badly. It is a challenge Attrition is spreading to the traditional sectors as well. Attrition is not just restricted to the BPO sector; it is spreading fast across other sectors such as manufacturing, engineering and services as well. The possible vulnerability of white collar workers should alarm bells. There is a serious need for companies to engage employee’s interest by creating conducive environment for growth. Talent poaching Losing employees to competitors is common but this practice is on high in today’s scenario. The term employee poaching means to entice an employee to move from one firm to its competitor and this is where the HR department faces a very big challenge. In the recent times the aviation sector is worst hit by the same, state owned airlines have lost several of their crew members to the new airlines. The IT industry has always been a happy hunting ground for poachers. There has been a misconception in minds of the employers that emoluments are only factor when it comes to retaining key talent. An employee may switch jobs for a variety of reasons. Factors affecting job satisfaction may vary in case of every employee.
Talent retention
What is talent retention?
• • • • • •
Stopping people from leaving the organization. All about keeping good people. Getting our compensation and benefits in line with the market place. It relates to culture and how people are treated. Curbing the high employee turnover in the company. Presenting a consistent, effective employer proposition across the entire employee lifecycle thus ensuring that the company sources, hires, manages and develops employees who partner with the company in achieving its organizational goals.
These were different perceptions of various managers about the term talent retention. It’s a term that means many things to many people, with its meaning and means of achieving usually specific to each organization and even to each manager and each employee. Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs. A strong retention strategy becomes a powerful recruitment tool. Retention of key employees is critical to the long-term health and success of any organization. It is a known fact that retaining your best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning and deeply imbedded organizational knowledge and learning. Employee retention matters as organizational issues such as training time and investment; lost knowledge; insecure employees and a costly candidate search are involved. Hence failing to retain a key employee is a costly proposition for an organization. Various estimates suggest that losing a middle manager in most organizations costs up to five times of his salary. Intelligent employers always realize the importance of retaining the best talent. Retaining talent has never been so important in the Indian scenario; however, things have changed in recent years. In prominent Indian metros at least, there is no dearth of opportunities for the best in the business, or even for the second or the third best. Retention of key employees and treating attrition troubles has never been so important to companies.
In an intensely competitive environment, where HR managers are poaching from each other, organizations can either hold on to their employees tight or lose them to competition. For gone are the days, when employees would stick to an employer for years for want of a better choice. Now, opportunities abound. It is a fact that, retention of key employees is critical to the long-term health and success of any organization. The performance of employees is often linked directly to quality work, customer satisfaction, and increased product sales and even to the image of a company. Whereas the same is often indirectly linked to, satisfied colleagues and reporting staff, effective succession planning and deeply embedded organizational knowledge and learning. Employee retention matters, as, organizational issues such as training time and investment, costly candidate search etc., are involved. Hence, failing to retain a key employee is a costly proposition for any organization. Various estimates suggest that losing a middle manager in most organizations, translates to a loss of up to five times his salary. This might be worse for BPO companies where fresh talent is intensively trained and inducted and then further groomed to the successive stages. In this scenario, the loss of a middle manager can often prove dear. Basis for Talent Retention 1. Empower Your Employees to Shine By Helping Them Own Their Gifts at Work ? As you interact with employees, see every one as unique and gifted, especially the star employees. Your role is to find the innate gifts within each one of your fellow employees as you interact with them. ? Work with your employees to identify their top two gifts and help them bring those gifts to the projects they are currently working on. A sample list of possible innate gifts includes: Creativity, Facilitating, Listening, Intelligence, Intuiting, Writing, Leading, Researching, Teaching, Developing, Strategizing, Motivating, or Evaluating.
2. Identify exactly what tasks or responsibilities bring
your top stars career Fulfillment ? Have a meeting with your employees to identify the three aspects of their work they find most fulfilling. You want to understand not only what tasks, but which elements of the tasks and responsibilities, are most satisfying. Next, help them bring more of this type of fulfilling work into each day.
? Spend time with your employees to understand the things other than money that fulfill them at work. Then review the following list and select two areas through which each employee can cultivate more fulfillment in the current job: mentoring relationships; freedom to create; making a contribution; learning and developing on the job; working with intelligent, creative, and passionate colleagues; participating in the organization's direction and overall vision; and anything else you would like to add. 3. Encourage Your Employees to Focus More On What’s Right with Their Jobs and Less on What’s Wrong ? Highlight the accomplishments of your employees and help them leverage their areas of success. Not only will this improve the profile of the accomplished employee in the company and potentially lead to a promotion or a raise, but it will promote a positive view of themselves and their capabilities. ? Have a meeting with every employee to discuss and review what is going right on the job. By not always focusing on what is wrong with their work and seeing it as a challenge, employees can focus on and appreciate the many opportunities present for making their jobs work for them. 4. Communicate Effectively for Great Relationships at Work
?
Guide your employees to accept the coworkers who challenge them, helping them look for the positive instead of the negative in those people. They can learn to step back, detach from their own agenda and viewpoint, and look at the challenging coworker with new eyes. This new viewpoint can occur when an employee tries to truly understand the coworker, what he thinks and feels, and why he behaves as he does. After stepping into another’s shoes and viewing things from his perspective, the question becomes, “How can I accept this individual’s imperfections and shortcomings as well as his strengths and talents?”
? Encourage managers and supervisors to be more accessible to their employees, especially the stars, so they can better ascertain their primary needs. By being more accessible, your employees will feel that you genuinely care about them. They will feel listened to. This open
communication allows employees to feel comfortable sharing what is on their mind. By responding to employee needs immediately and directly before they become real issues, you will eliminate the danger that they will need to find another workplace to get those needs met.
5. Improve Your Employees’ Morale by Showing Them How to Work Smarter Instead of Harder. ? Spend time with your employees and help them make a list of all their daily roles, responsibilities, tasks, and activities. As they write this list, help them become aware of the following concepts that can simplify their workday: do more, do it faster, work smarter, and be more fully committed. Then eliminate as much as possible from the list until it reaches a point at which they can’t do it any faster and smarter. Employers need to help their employees look at their entire work life and all that it encompasses and learn to simplify. When we don’t simplify, our lives become too complicated and we become powerless.
?
Help your employees prioritize their most important activities. Ask them to write down the most important tasks they must complete. Next, have them number them in order of priority. If employees need help finding the most important tasks, have them ask the following questions: If I could complete one activity/task today, what would it be? Is this activity the best use of my time, knowledge, creativity, and experience? Have them focus on the most important task until it is finished, then recheck the priority list and focus their efforts on the next most important activity.
6. Besides More Money, Offer Quality Life Programs to Help Your Employees Maintain Balance Between Professional and Personal Life ? Help your employees create flexible time (flex-time) for work and their own personal well-being. Teach them how to create a working environment that brings their work and life together in proper balance. This can include making sure your employees have enough hours each week to enjoy non-work related activities. Facilitate proper balance by helping employees understand how to use flex-time or other creative scheduling alternatives to spend more time
on non-work activities that bring proper balance into their lives. ? Many employees have difficulty creating proper balance in their lives because their work life is so consuming. When employees begin to gain self-control and equanimity in their work lives, they will have made space for other parts of their lives. Here are some other ways to help your employees create balance in their work/personal lives. ? Help them keep their self-expectations and those of their manager at a reduced level.
?
Help them “under promise” and “over deliver” by promising far less than they know they can do or less than the person is asking them to do. ? Learn to say no to nonessential tasks and to people who might be inappropriately monopolizing their time. ? Help them take breaks throughout the day in order to revitalize themselves. ? Help them realize the importance of not taking work home with them on a regular basis in order to separate their work life from their home life.
7. Ask Employees to Identify and Focus on What Is Enjoyable.
?
Have your employees get together to select and discuss the most enjoyable activity or project in their jobs. After the discussion, ask them to make a list of all the activities or projects they need to complete that day or the next. Have them select the one they find most enjoyable and begin the day working on that one. Once every couple of weeks, encourage your employees to select an “enjoyable” task as their focus for an entire day. ? Help your employees identify the work they find most enjoyable, those tasks that excite them or that they find themselves repeatedly drawn to doing. Once they have identified two elements that they enjoy, have them create new projects that incorporate those activities.
8. Improve Your Employees’ Overall Relationship with Their Jobs through Active Involvement and Constant Praise ? Give your employees the opportunity to make a difference and become more actively involved in the organization by having them volunteer their time to support and help run some of the company’s internal functions and take part in off-site company volunteer efforts. ? People need to know that their efforts for the company are recognized. When employees don’t receive any recognition for their performance, it can cause a lack of involvement and even disengagement. You can greatly help your employees by encouraging them and showing them how to ask for positive feedback and recognition from their managers. They shouldn’t have to wait for their annual review to get positive feedback on the work they are doing. After all, you can’t be proud of yourself until somebody’s been proud of you. 9. Open Their Minds to the Possibilities and Reality of Loving Their Work. ? Without a clear-cut understanding of what they have to do to advance or succeed, people quickly become demotivated. Explain what’s required for your employees to move forward in the organization based on the company’s or department’s plans for the next one, three, and five years. Provide clear career paths to encourage your employees to explore new career possibilities in-house so they can make a lateral shift within the company. A lateral move can help them enjoy their jobs and stay engaged. ? Help your employees discover new and exciting opportunities (new projects and new activities) that lie within their work that will bring them a greater sense of love for what they currently are doing. 10.Establish a Mentoring or Coaching Program
?
Encourage your star employees to spend time mentoring with other model coworkers who enjoy their jobs and are performing well. Mentoring allows your employees to observe, study, and shadow the person they most identify with so they begin to understand what they do that helps them enjoy their work so much.
? Designate senior employees who will act as impartial, unconditionally supportive guides who ask evocative questions to draw out your star’s wisdom.
Three R’s of retention
Respect is esteem, special regard, or particular consideration given to people. As the pyramid shows, respect is the foundation of keeping your employees. Recognition and rewards will have little effect if you don’t respect employees Recognition is defined as “special notice or attention “Many problems with retention and morale occur because management does not pay enough attention to people’s needs and reactions. Rewards are the extra perks you offer over and above the fixed remuneration, as a result of good performance delivered by any employee. Rewards represent the smallest portion in the retention equation still they cannot be ignored. Effect of these 3Rs of retention • • • • Increased productivity Reduced absenteeism More pleasant work environment (both for employer and the employees) Improved profits
Employee attrition could affect 40% of company profits. Around 150% of an employee’s salary (source-Harvard Business Review article) Tangible recovery costs include recruiting, rehiring, and retraining. In fact, a new employee typically is a cost to the company until he or she reaches a threshold of productivity. In higher level technical and management positions this can exceed 6months. For companies that have cut all expenses not deemed mission critical, such as training and recruitment efforts, the lag in performance, additional cost, and stress on remaining employees creates a vicious downward spiral. Equally critical to an organization's viability are its Vital Intangibles (VIs), which can take the form of informal relationships, networking connections or a web of favors a key employee has spun during his or her tenure - favors from vendors or other business contacts that can be called in as needed. VIs are hard to identify and may be even harder to recoup. Many companies will take the steps to protect trade secrets, intellectual property, copyrights and patents, but intangible assets are less obvious, though no less critical to an organization, and their loss is no less damaging. Undocumented workarounds, tricks, tips and "the knack" that come from experience in multiple roles within the organization make up another collection of VIs. Attrition rate calculation Attrition rate (for the year 2010-2011) = [No of separations during the year 2010-2011/ {(Total employee head count as on 1st April 2010 + Total employee head count as on 31st March 2011)/2}]*100
• • •
No. of separations during the period 1st April 2010 to 31st March 2011 = 199 Total employee head count as on 1st April 2010 = 906 Total employee head count as on 31st March 2011 = 947 Attrition rate = [199/ {(906 + 947)/2}]*100 = 21.46%
Scope of study The study was conducted on the employees of WCL Anjar facility. Employees were interviewed with questionnaires which had structured
questions relating to various job factors, the employee was asked to rate each of these factors on the basis of the importance he gives to each of them. Hypothesis
Sr. No. 1.
Research Question Is salary the most important factor for an employee to stay or leave the organization?
Hypothesis Ho: Salary is the most important reason for an employee to stay or leave the organization. H1: Salary is not the most important reason for an employee to stay or leave the organization.
Sources of data Data was collected by both primary and secondary sources. Secondary data was obtained by the company reports and other data which was already recorded. Separated employees data was analyzed. This was followed by a primary survey which was carried out in the form of unstructured interview to find out the problems which employees are facing. It was followed by another source of primary source which was in the form of a questionnaire.
Questionnaire design The questionnaire was designed by taking into consideration various job factors that drive an employee. The questionnaire was helpful to correlate and find out the relative importance of various factors which are responsible for attrition.
The relationship has been found and tested using Chi-square test.
Target population The target population was the employees of WCL, Anjar. Sampling
• •
Sampling design: The sampling was done randomly Sample size: total sample size is 40 employees.
Procedure for data collection For the process of data collection both primary and secondary data were used. Primary data included data from questionnaire and unstructured employee interview as well. Secondary data included data of all the separated employees and a few other company reports.
Secondary data representation relating to the left employees (1st April 2010 to 31st March 2011) Reason of leaving wise
Reason Better Career Opportunity Better Pay Package Changing Field Current Location/Family Problem Dissatisfied with current role Family Commitments Total 50 41 1 8 1 34
Going to Native Place Higher Studies Increment Job Rotation at Welspun Not Accepting Kutch Climate Relocating to Dubai Termination Grand Total
31 11 2 1 1 1 17 199
Department wise
Department Accounts Central Maintenance Civil Commercial Head Design Elect. Maintenance Electrical Excise HCGA HSE IT L&D, IR & Legal Legal & liasoning Logistics Mech. Maintenance MIS & Costing N.A NA Operations Operations Head PPC Purchase QA QC/QA QC/QA Head SAP Security Stores Time Office Unity Project Utility Workshop (blank) Grand Total
Total 1 2 6 1 3 20 1 1 5 1 6 1 1 2 17 3 3 2 42 1 1 3 1 51 1 1 2 7 1 1 2 5 4 199
Duration in Welspun wise
In Years 0 to 1 1 to 2
Total 58 40
2 to 3 3 to 4 4 to 5 5 to 6 6 & Above Grand Total
54 21 9 8 9 199
Designation wise
Designation Assistant Asst. Engineer Asst. Foreman Asst. Manager DET DGM Engineer Total 8 19 1 13 7 1 57
Foreman GET GM Inspector Management Trainee Manager Officer Security Supervisor Sr. Assistant Sr. Engineer Sr. Engineer Sr. Foreman Sr. Inspector Sr. Manager Sr. Officer Trainee Assistant Trainee Inspector Grand Total
1 12 2 6 1 6 10 1 3 18 10 2 1 6 12 1 1 199
Division wise
Division 3LPE 3LPE (IC) 3LPE (SD) Central Maintenance Central Projects Civil Commercial Commercial Head ERW 16" ERW 6" F&A HCGA HSE IT Legal & Liasoning L-Saw (Project) Mandya N.A NA Operations Head PBM Project (Bangalore) Projects Purchase QC Head SAP Security Spiral 1 Spiral 2 Spiral 3 Unity Project Workshop (blank) Grand Total
Total 16 5 5 4 3 3 13 1 11 5 1 7 1 6 1 20 3 3 2 1 1 1 2 3 1 1 2 17 27 21 1 7 4 199
Reason of leaving Better Career Prospects Better Opportunity Compensation Compensation/Family Personal Commitments F&F not done Family Commitments Family/Personal Commitments Further Study Further Study/Dissatisfied with current role Higher Studies New Career Opportunity NP Opportunity in the vicinity of Native place Dissatisfied with current role Family Personal Commitments Termination (blank) Grand Total
Total 8 11 3 1 4 4 4 1 1 1 43 2 4 5 1 1 1 95
Secondary data representation relating to the left employees (1st April 2011 to 30th June 2011) Reason wise
Division wise
Division 3LPE 3LPE (IC) Central Maintenance Central Projects Comm. Relations & Corporate Affairs Commercial ERW 16" ERW 6" F&A Growth Shop HCGA IT L-Saw (Project) Purchase SAP Security Spiral 1 Spiral 2 Spiral 3 Unity Operations Welspun Middle East LLC Grand Total
Total 4 1 1 3 1 8 6 2 2 6 1 2 10 1 1 2 11 15 14 3 1 95
Designation wise
Designation Assistant Asst. Engineer Asst. Foreman Asst. Manager DET DGM Engineer GET GM GT Inspector Manager Officer Retainer Sr. Assistant Sr. Engineer Sr. Engineer Sr. Inspector Sr. Manager Sr. Officer Sr. Vice President Sr. General Manager Sr. Officer Supervisor Grand Total
Total 2 9 1 4 1 3 30 6 1 2 2 4 4 1 3 8 4 1 2 3 1 1 1 1 95
Reporting Manager Anand Kore Anil Mahajan Anilkumar Patel Arvind Sharma Ashif Sheikh Ashok Pathak Atul Mishra Bharat Sharma
Reporting manager wise
Department wise
Department Total Accounts 2 Civil 1 Comm. Relations & Corporate Affairs 1 Commercial 1 Design 1 Dispatch 1 Elect. Maintenance 10 Excise 1 Growth Shop 4 IT 2 Logistics 5 Mech. Maintenance 4 Operations 23 Projects 1 Purchase 2 In Total QC/QA years 30 0 to 1 Recruitment & HR Operations 15 1 36 SAP 1 to 2 1 2 14 Security to 3 2 14 Stores3 to 4 1 10 Utility 4 to 5 1 5 to 6 2 Grand Total 95 6 & Above 3 Grand Total 94
Duration in Welspun wise
Other data from the employee exit interview forms After studying the recorded information from the exit interview forms, a detailed study and analysis of the hard copies of these exit interviews forms was carried out, which was ultimately very beneficial for finding out
the major causes of manpower attrition and other employee concerns. The same data is represented below:
S.No 1 2 3 4 5 6 7 8 Concern Compensation/salary No involvement in decision making Job profile(unclear, mismatch) Lack of job rotation Location and accommodation problem Infrastructure or facilities provided by the company Job insecurity Lack of proper communication Frequency 45 12 13 16 12 4 1 25
These are the major employee concerns which came up during the detailed study of the exit interview forms. Top of the list is salary or compensation followed by the lack of proper communication and lack of job rotation. The majority of the samples for this study were Sr. Engineers and Engineers.
Data from unstructured interviews Major employee concerns
1. Lack of proper maintenance of the guest house (Manav guest house
2. 3. 4. 5. in case of GETs- bad quality of food, no cooling facility like airconditioner or cooler) Mismatch of job profiles in case of engineers. Lack of housing facility for employees. No fun at work. Lacks of perks and facilities.
6. Lack of responsiveness towards employee problems and concerns.
Questionnaire survey A special questionnaire was designed keeping in mind the major factors related to the job. They are • • • • • • • • • Salary Benefits (telephone and medical facility etc.) Job content Opportunity for development and growth Relationship with the manager Relationship with peers Location of work place Management policies & work culture Resources to do the job.
In the questionnaire all these factors were grouped with each other at least once and were rated against each other on the basis of importance. The idea behind this was to find the level of importance employees give to each of these factors.
The sample size was 40 employees.
S. No 1 2 3 4
Designation GETs Sr. Officer & Officer Sr. Engineers & Engineers Manager & Asst. Mgr.
No. of employees 10 10 10 10
The table below indicates all the data obtained by recording the information out of all the 40 questionnaires which were filled up by employees (GETs, Sr. Officer, Officers, Sr. Engineers, Engineers, Asst. Engineers, Managers and Asst. Managers)
Sr . N o.
S al ar y
Be nef its
Job co nte nt
Oppo rtunit y for devel opme nt 9
1
14 14
12
Relat ionsh ip with the man ager 14
Relat Loc ionsh ati ip on with peer s 7 17
Mana geme nt polici es 10
Res our ces to do the job 11
To tal
Desi gnat ion
10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8
GET
2 3 4 5 6 7 8 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7
14 4 17 15 19 13 20 12 13 13 17 9 17 8 15 13 12 8 16 6 15 11 18 4 16 10 9 10
16 8 14 14 12 13 15 13 13 14 14 15 7 16 9 16
16 15 15 17 17 17 20 22 9 18 16 14 15 13 15 16
9 9 5 7 11 12 11 12 16 11 5 12 12 14 12 7
12 10 4 8 12 11 10 9 15 11 4 8 13 12 10 11
17 10 16 11 14 9 12 5 5 4 18 14 13 9 11 5
10 15 10 9 5 7 7 9 14 12 13 11 13 11 13 10
10 9 12 10 11 13 8 10 16 16 12 12 9 14 14 15
GET GET GET GET GET GET GET GET GET Man ager Man ager Man ager Man ager Man ager Asst. Mgr. Asst. Mgr.
15 9 16 12
1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 3 1 3 2 3 3 3 4 3 5 3 6
13 7 15 14 16 8 14 9 16 15 15 13 14 3 16 11 18 11 16 7 16 11 16 9 14 11 16 9 19 11 12 7 16 11 17 14 12 12
16 10 13 10 11 14 16 10 12 16 9 11 15 14 15 20 12 12 16
19 15 18 17 15 18 9 20 16 14 15 18 18 16 21 20 16 15 12
15 11 10 10 5 11 15 9 11 15 8 9 13 12 4 7 10 12 10
12 15 7 10 12 9 12 12 12 10 10 12 8 12 5 14 10 10 7
2 8 10 10 10 7 15 6 6 9 12 7 8 6 8 5 11 11 13
13 6 15 14 13 11 12 13 13 9 14 14 12 10 18 14 7 4 14
11 14 11 14 11 10 12 11 9 12 13 12 9 13 7 9 15 13 12
10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8 10 8
Asst. Mgr. Asst. Mgr. Asst. Mgr. Sr. Eng. Sr. Eng. Sr. Eng. Sr. Eng. Sr. Eng. Sr. Eng. Asst. Eng Asst. Eng Eng Eng Sr. offic er Sr. offic er Sr. offic er Sr. offic er Sr. offic er Sr. offic er
3 7 3 8 3 9 4 0
17 8 14 7 19 8 17 8
12 17 15 12
15 18 17 15
11 11 11 11
14 12 7 14
8 5 9 8
10 12 12 10
13 12 10 13
10 8 10 8 10 8 10 8
Sr. offic er Offic er Offic er Offic er
Total compiled result
Job conte nt 529 Opportun ity for developm ent 641 Relation ship with the manager 420 Relation ship with peers 413 Managem ent policies 449 Resour ces to do the job 468
Sala ry 621
Benef its 395
Locati on 384
Tot al 432 0
Findings The survey conducted for 40 employees reflects that the most important factor for the employees in general is the opportunity for growth and development (15%). There are other factors as well which are not too far behind; they are Salary (14%), job content (12%) and resources needed to the job (11%). These are the main factors which are responsible for the attrition in the company. All these factors if taken care of well, attrition can be curbed to a great extent. Designation wise result • GETs
Opportun Relation Job ity for ship with Relation conte developm the ship with nt ent manager peers 130 157 106 98 Resour ces to do the job 110
Sala ry 158
Benef its 109
Locati on 116
Managem ent policies 96
•
Managers & Asst. Managers
Sala ry 149
Benef its 91
Opportun Relation Job ity for ship with Relation conte developm the ship with nt ent manager peers 130 159 109 103
Locati on 94
Managem ent policies 117
Resour ces to do the job 128
•
Sr. Engineers, Engineers & Asst. Engineers
Sala ry 155
Benef its 100
Opportun Relation Job ity for ship with Relation conte developm the ship with nt ent manager peers 124 160 106 107
Locati on 90
Managem ent policies 125
Resour ces to do the job 113
•
Sr. Officers & Officers
Opportun Relation Job ity for ship with Relation conte developm the ship with nt ent manager peers 145 165 99 105 Managem ent policies 111 Resour ces to do the job 115
Sala ry 159
Benef its 95
Locati on 86
Hypothesis testing H0: Salary is the most important factor H1: Salary is not the most important factor
Chi- Square calculations
Expected (E) 960 420 Observe d(O) 621 395 {(OE)^2}/E 119.7093 75 1.488095
Factor Salary Benefit
O-E -339 -25
(O-E)^2 114921 625
Job content Opportunity for development Relationship with the manager relationship with peers Location Management policies Resource to do the job Total
420 420 420 420 420 420 420 4320
529 641 420 413 386 449 466 4320
109 221 0 -7 -34 29 46
11881 48841 0 49 1156 841 2116
24 28.28809 52 116.2880 95 0 0.116666 67 2.752380 95 2.002380 95 5.038095 24 275.6831 85
Degrees of freedom = Number of factors – 1 =9-1 =8 Level of significance = 0.05 Table value = 15.507
The computed value is higher than the critical value; hence we reject the null hypothesis. The hypothesis is rejected and hence we accept the alternative hypothesis that salary is not the most important factor for the employees. Findings • • Although salary is very important but it is not the most important factor. The most important factor that came out to be is the opportunity for growth and development.
•
Next most important factor came out to be was Salary followed by job content and resources needed to the job.
This survey highlighted the factors which are most important to people. So all the retention strategies should be formulated keeping in mind the factors which were given high importance. If the strategies are focused on these factors then the attrition problem can be curbed to a great extent.
Recommendations 1. Opportunity for growth and development • A strong development plan (job rotation, development programs etc.) should be formulated for the engineer level people, where maximum amount of attrition is observed. There should be a comprehensive induction process for every new joiner. It should be effective and should cover all areas of concern. A strong need for an effective online appraisal system.
•
•
1. Salary
•
•
Standardized compensation should be adopted across the unit which is competitive with the market rate Benefits like retention bonus should be considered
1. Job content • • Job profile should be assigned keeping in mind the interest and qualification of the employee (especially at engineer level) There should be a proper job rotation plan which gives the employee (especially at engineer level)
1. General areas
•
The accommodation facility for GETs is not up to the mark. Hotel Manav is not well maintained. There should be a cooler or an air conditioner put in every room, considering the fact that it gets really difficult to stay, given the regional climate. Holding meetings with employees regularly to identify their areas of concern.
•
Low level employee retention strategies 1. 2. 3. 4. 5. Personalized thank you or appreciation cards for a job well done. Congratulation E cards or cards sent to the families Scholarships for employee’s children at Welspun Vidya Mandir Discounts at Welhome stores across India for the employees Fun at work • Celebrating days like Green day • Organizing company picnics • Mini carnival at the plant once in two months
Let’s see what the best employers do?
1. Procter & Gamble • • • • Early responsibility in the career Flexible and transparent culture Global opportunities through a variety of exposure and diverse experiences Performance recognition
1. American express India
• •
Value based environment Pioneer in people practices
1. NTPC
• • • •
Immense learning and growth opportunities Competitive rewards Opportunity to learn, grow and implement Strong social security, employee welfare and performance oriented culture.
1. Johnson & Johnson
• • • • •
Strong values of trust, care, fairness and respect within the organization Freedom and autonomy to operate at work Early responsibility in the career Visible, transparent and accessible leaders Innovative HR programs and practices
1. Glaxo Smith Kline Consumer Health Care
• • • • • •
Performance driven rewards Its belief in growing our own timber Comprehensive development and learning programs Flat organization where performance can lead to very quick progression Challenging work context Comprehensive induction and orientation program
1. TATA Steel
• • •
Strong organizational philosophy and culture. Job stability Freedom to work an innovate
1. Colgate Palmolive India
• • •
Open transparent and caring organization Structured career planning process Global career opportunities
1. Wipro
• • •
Early opportunities for growth High degree of autonomy Value compatibility
1. Indian Oil Corporation
• • •
Work ethics Learning and growth opportunities Challenging work assignments
1. TATA Consultancy Services
•
Strong corporate governance and citizenship
• • • •
Commitment to learning and development Strong system for creating future leaders Opportunity to work with fortune 500 clients Sound organization environment
Conclusion Study of HR practices and employee attrition in the organization was a great learning experience. It helped understand intricacies of role of HR in an organization. The study helped in finding out the most important and critical reasons for employee attrition in the organization. There has been immense learning and realization relating to attrition and retention, cost of attrition, causes of high attrition and reasons for attrition The study helped in understanding the relative importance of various factors responsible for employee attrition, also revealed the fact that that opportunity for development and growth is most important for the employees of the organization. There is a crisis in human capital management. We need fundamental reform in order to address this crisis and ensure long-term ability to hire and manage a high-quality, highperforming workforce. Most employees are not motivated solely by money. Historically, firms have used money and financial rewards to retain employees. High tech employees are enjoying t h e fastest salary progression of almost any profession, yet they are changing jobs constantly. Today’s employees seek more than monetary compensation. Research conducted in the company revealed that opportunity for development, salary, job content and resources to do the job are important reasons for employee attrition. The myth that salary is the most important reason for employee attrition was clarified as employees are more concerned about opportunity for development. Salary is also important, salary needs to be competitive with the market rates else there is a high risk of losing your employees to your competitors.
Annexure 1
Questionnaire
Date: __________ Objective: The objective of this questionnaire is to co-relate the important attributes that one considers to work for an organization. Directions: Please allocate 3 points between the two alternative reasons in each pair based on perceived importance in the following fashion.
0 3
1 2
2 1
3 0
Numbers assigned to each pair should add up to 3
1. Job content Resource to do the job
2. Salary Benefits (telephone, medical facility etc)
3. Opportunity for development & growth Location of work place
4. Relationship with the peers Job content
5. Relationship with the manager Management policies and work culture
6. Benefits (telephone, medical facility etc) Management policies and work culture
7. Location of work place Relationship with peers
8. Resources to do the job Relationship with the manager
9. Management policies and work culture Salary
10.Job content Location of work place
11.Relationship with the manager Relationship with peers
12.Benefits (telephone, medical facility etc) Resources to do the job
13.Opportunity for development & growth Management policies and work culture
14.Salary Location of work place
15.Job content Relationship with the manager
16.Benefits (telephone, medical facility etc) Opportunity for development & growth
17.Resources to do the job Location of work place
18.Relationship with the manager Benefits (telephone, medical facility etc)
19.Relationship with peers Management policies and work culture
20.Job content Salary
21.Location of work place Relationship with the manager
22.Resources to do the job Management policies and work culture
23.Relationship with peers Opportunity for development & growth
24.Job content Benefits (telephone, medical facility etc)
25.Management policies and work culture Location of work place
26.Salary Resources to do the job
27.Relationship with peers Benefits (telephone, medical facility etc)
28.Opportunity for development & growth Salary
29.Job content Management policies and work culture
30.Relationship with the manager Salary
31.Resources to do the job Relationship with peers
32.Job content Opportunity for development & growth
33.Salary Relationship with peers
34.Opportunity for development & growth Relationship with the manager
35.Benefits (telephone, medical facility etc) Location of work place
36.Resources to do the job Opportunity for development & growth Des ignation: __________
Bibliography
• • • •
www.humanresource.com www.citeHR.com www.google.com www.wikipedia.com
doc_595180512.docx