Retention Review

Table of Contents

1 M A R C H 4 Kalasalingam Academy of Research and Education By: Th amarai Selvi I Literature Review2 LITERATURE REVIEW:  Dr. K. Balaji Mathimaran α & Prof. Dr. A. Ananda Kumar (2017) , S trategies on how to minimize employee attrition, confronted with problems of employee attrition, management has several policy options viz. changing (or improving existing) policies towards recruitmen t, selection, induction, training, job design and wage payment at Yacoo Pharma, which is located in Puducherry State . Policy choice, however, must be appropriate for the precise diagnosis of the problem. In this study, Three ‘R’ are mentioned to be considered while taking employee retention strategy: RESPECT, REWARD, and RECOGNITION. The study suggest that the Employees are not satisfied with recognition and performance appraisal provided by the organizat ion. So, they should give some importance towards it. The organization must give proper remuneration to the employees in order to retain them for a long period of time, smooth workload to reduce the stress on the employees. The relationship between employe es and management has to improve.  Lavanya Latha K (2016) , aimed to know the reasons, why attrition occurs, to identify the factors which make employees dissatisfy, to know the satisfactory level of employees towards their job and working conditions and t o find the areas where M anufacturing industries in Nellore District is lagging behind . The author suggested that m any employees have suggested improvement in working environment and employee motivation in the survey. So the companies should give attention to the factors which it can improve itself internally even though the employees are satisfied with the nature of job .  Bodjrenou Kossivi, Ming Xu and Bomboma Kalgora(2016) , focused on finding the Factors of Employee Retention in various organizations. The factors might be development opportunities, compensation, work -life balance, management/leadership, work environment, social support, autonomy, training and development. The study reached the conclusion that further investiga tions need to be conducted regarding employee retention to better comprehend this complex field of human resource management.  Yiu Lichia and Saner Raymond (2014) , measured HR function by reporting on the findings of a survey of attrition in Indian companie s and discussed the possible strategies chosen by Indian companies to counter costly labor turnover. Higher3 attrition can be minimized through the payment of higher compensation packages. The researchers suggested that Indian companies should do more to st rengthen the bonding of internal social networks and deepen individual job satisfaction and organizational commitments to ensure talent retention through competence development and career planning.  Jeen Dorance Batty S. (2014) , aimed to the factors which m ay be the possible reasons for an employee to leave an organization. Employee’s turnover intention and its impact on organizational outcomes were analyzed and that was collected through questionnaires from the first and middle line employees in selected or ganized retail outlets in Bangalore. From the econometric analysis, it was found that turnover intention has influenced attrition factors such as Quality of Work Life, career growth, working hours, personal/family reasons, and relation with internal co – w orker, welfare, working condition, and salary.  Rana Hussain, Aiza (2013) , examined the influence of talent management (TM) and employee turnover intention (ETO) on organizational efficiency (OE) in telecommunication sector of Pakistan (TSP). It was found that by reducing ETO organizations efficiency can be enhanced. Research res ults revealed an interesting dimension of talent management which reflects negative relationship with organizational efficiency in TSP. This finding reflected that TM sometime elevates ETO and reduces the OE. TSP needs to reduce employee turnover rate by m anaging the talent properly to elevate OE.  Hemalatha N and Savarimuthu A (2013) , measured the level the satisfaction of employee retention techniques at GB Engineering Enterprises PVT Limited., Trichy in terms of salary, working conditions, job enrichment and education. Losing an employee can cost a company up to 1 50 percentage of the position’ s salary, and with turnover rates averaging between 15 and 40 percent a year, it ’s easy to see why some employers take great efforts to keep their employees on board and why employee retention is one of the most important aspect s in the success of any company. From the analysis, the author suggests to provide high salary with better working conditions.  Kanwal and Muhammad (2013) , focused on the retention of employees in banks in Pakistan. Research focused on the factors that are in relevance to the bonus and rewards, satisfaction of employees with the job, training as a career exposure4 management team work, are the major contributors towards the employee retention in a n organization. It was found that training and development had a significant impact on the employee retention. Other factors that have been recognized in the literature review had a synergic effect on the employees’ performance. Therefore it was suggested that both the employees and the Manager must work in a team and had an effective collaboration with each other while performing in the team work.  Mathur, Atul and Agarwal, P. K. (2013) , aimed to understand the impact of retention strategies on employee tur nover in sugar industry in India. The focus of this study was on dysfunctional turnover. Other variables such as welfare benefits, personal satisfaction and organization culture, which are associated with the employee turnover, were also investigated as a part of this study. It was found that the main reason for leaving the organization by employees were compensation and working environment. Results of the study revealed that retention strategies have direct impact on employee turnover. Researcher suggested that by using different HR practices like effective compensation policy, performance appraisal, training and development program, feedback and assigning competitive work the condition of employee retention can been increased.  Balakrishnan and Masthan, D. (2013) , identified the drivers of the employee engagement and also examined the relationship between employee engagement and employee retention. It was observed that employee engagement leads to commitment and psychological attachment and reflects in the f orm of high retention (low attrition) of employees. The study suggested that the level of engagement in employees can be enhanced by identifying its drivers (influential factors). Organizations can design good practices in the light of findings to retain their best talent (highly skilled and specialized human resources) without much financial burden. Statistical evidence in the study confirm that the employee retention can be improved by addressing nonfinancial drivers of employee engagement like communicat ion, recognition, manager/supervisor support (relationship), work engagement, team work and role clarity.  Kwenin, O. D. and Muathe S. (2013) , analyzed the influence of employee rewards, job satisfaction and human resource policies on employee retenti on in5 Vodafone Ghana Limited. The results showed that organizations’ fair reward systems lead to equity and increase retention. The findings also revealed that job satisfaction and favorable human resource policies have positive link with retention. Moreover, the study also identified that employee job satisfaction as a strong signal for retention. Consequently, the study recommended that management of the organization should provide intrinsi c values in the jobs to make them more satis fying for the employees to stay. Human resources policies were also iden tified to connect directly with retention, and was thus suggested that the co mpany should take a second look at its policies to promote growth and opportunities for employees.  Appiah, A. F. and David A. (2013) , focused on human resource management activities that were frequently used in the mining industry in Ghana and their effect on employee retention. The main findings of the study were that majority of turnover intentions within the organization were attributable to human resource management. Training and development, communication and information sharing, health, safety and welfare, incentives and compensation and job security factors were very significant in bringing about turnover intentions within the mini ng industry. The study provides insights into the effects of human resource management practices on employees’ intension to leave and retention in the mining sector in Ghana.  Lakshm i Devi, R., Amalraj R. et. al. (2013) , aimed to study the employee turnover ratio in a pharmaceutical industry in India. It was observed that the mean of the pull factors was higher owing to higher turnover intention of the employees. Under this study, all factors were divided into two clusters using hierarchical clustering technique namely push and pull factors. The various push factors identified in case study were: Health reasons (Personal), family problems, pursuance of higher education, behavior of bos s, conflict of employees, motivation and encourag ement of good work, size of the organization, difficulty of job and social status. Among the pull factors, expectation of a high salary, expectation of promotion and reputation of the organization was the mo st significant reasons for which the employees quit. Among the push factors, family related problems were the most significant push factor contributing to employee exit. This study concluded that the most6 significant factor is pull factor. The push factor also contributed to the turnover, but not significantly.  Reiche Sebstian B. (2008) , cond ucted a research to explore the determinants which influence retention capacity of MNCs. Researcher proposed a conceptual framework through linked institutional and human resource management perspectives. Labour market perspective and psychological perspective were addressed. It was found that the level of satisfaction and commitment of subsidiary staff which may be affected by HR practices can be moderate by locally oriented management style.  Huselid A. Mark (1995) , examined human resources literature in three ways. First, the level of analysis used to estimate the firm -level impact of HRM practices, and the perspective was strategic rather than functional. Second, th e analytical focus was comprehensive. Third, this study provided one of the first tests of the prediction that the impact of High Performance Work Practices on firm performance was contingent on both the degree of complementarily, or internal fit, among th ese practices and the degree of alignment, or external fit, between a firm’s system of such practices and its competitive strategy. It was found that use of effective human resource management practices enhances firm performance.  Ichniowski C., Shaw K., Pr ennushi G. (1993), analyzed the impact of cooperative and innovative HRM practices on organizational productivity. It was found that “bundles” of internally consistent HRM practices were associated with higher productivity and quality. Study concluded that perceptions of job security, compensation level, job satisfaction, organizational tenure, demographic variables such as age, gender, education, and number of dependents, organizational commitment, whether a job meets an individual’s expectations, and the expressed intention to search for another job were all predictors of employees’ leaving the organization, Sheridan (1992) also found that perceptions of organizational culture influences turnover.  Spencer, G. Daniel (1986) , examined the extent to which employees have opportunities to voice dissatisfaction and voluntary turnover in general care hospitals. Responses to declining firms in terms of exit and voice were extensively studied. Researcher focused on the amount of opportunity available for voice an d not on the quality of that opportunity. Researcher conducted two studies for this7 purpose. Under first study it was found that the more an organization gives employees the opportunity to voice dissatisfaction over aspects of their work in order to change dissatisfying work situations, the greater the likelihood that its employees will remain with the organization. It was revealed that in general care hospitals Registered nurses’ turnover rates in short -term, were significantly lower in hospitals with many mechanisms for the voicing of employees’ dissatisfaction. The results of study two indicated high numbers of voice mechanisms were associated with high levels of employees’ expectancies for problem resolution and high perceived effectiveness of an organiz ation’s procedures for resolving problems. Results revealed that high numbers of mechanisms for employee voice were associated with high retention rates. RESEARCH GAP:  The Literatures on the topic of “The Study on Employee Retention” suggests the factors t o retain employees, strategies to be followed to retain an employee, factors leading to employee attrition , cost to replace an employee and so.  The company is aware about the low employee retention and high rate of employee at trition . To reduce attrition, they have taken some measures i.e recruiting people with good knowledge but with poor background and recruiting GET from the south side rather than north. Also, they found the retention of GET through a survey.  The Project Trainee aims to find the strategies that lead to retain employee i n the organization. Samples are Regular managerial level employees in which they will having experience of 1 – 30 years in the company. The trainee concentrates on the work -life balance; level of happiness of employees; level of satisfaction in pay, reward s, benefits; most influencing retention strategy and how that to be enhanced.8 PROJECT TOPIC : “A Study on Talent Ret ention at Titan Engineering and Automation Limited (TEAL)” OBJECTIVES :  To analyze the supportive relationship between supe rior, subordinate and management  To find the level of Happiness and Work -life balance  To examine the level of motivation in the organization  To determine the ratio of exit and recruit of employees  To suggest and recommend some measures to improve employee retention strategies9 QUESTIONNAIRE A STUDY ON EMPLOYEE RETENTION AT TITAN ENGINEERING & AUTOMATION LIMITED Age: Gender: Designation : Experience: Qualification: Department: (Tick the relevant options below ) Questions Strongl y Agree Agree Neutral Disagree Strongl y Disagree The Company helps in my Career Development My Manager provides guidance in all my activities My Manager is setting realistic, challenging, and relevant goals to his team members through involvement My Manager takes ownership of his employees I am satisfied with the autonomy in execution of the work I am happy with the tools and resources available that allow me to perform my job best I am having sufficient time to spend with my family I feel excited / proud of the job that gives me a good status The Company takes initiative to manage work -life balance I am satisfied with my salary and increment I feel my perfo rmance is recogni zed with rewards The Perks and the medical benefits available are sufficient I feel my performance here is recogni zed at right time The Training provided here helps me in my overall career development The Training provided is aligned with business goals/plans10 Questions Strongl y Agree Agree Neutral Disagree Strongl y Disagree The Projects I handle motivates me t o contribute more to the organiz ation I see myself working in TEAL for next five years I will recommend TEAL for my friends to work I think “TEAL is a Great place to work” POLICY Management is supporting for higher education Promotional and Transfer policy in practice Leave policy is effective The Company follows Safety practices at High Standards WELFARE – EFFECTIVENESS Excellent Very Good Good Need to be improved Bad Medical Insurance First aid facilities; Medical facilities Maintenance of rest rooms, Toilet and urinal Sports/Gym Welfare items *If you have any suggestions beyond these Welfare M easures, Please specify them below: ————————————————————————————————– ————————–