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    This document provides an overview of ING Vysya Bank and discusses its promise and operations. Specifically, it notes that ING Vysya Bank is a subsidiary of the Dutch financial services giant ING Group, which has over 180,000 employees serving over 60 million customers globally. It also outlines ING Group's vision to set the standard in helping customers manage their financial future through exemplary service and competitive products. Finally, it briefly discusses ING's stakeholders and business principles of balancing interests and being a good corporate citizen.

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    This document provides an overview of ING Vysya Bank and discusses its promise and operations. Specifically, it notes that ING Vysya Bank is a subsidiary of the Dutch financial services giant ING Group, which has over 180,000 employees serving over 60 million customers globally. It also outlines ING Group's vision to set the standard in helping customers manage their financial future through exemplary service and competitive products. Finally, it briefly discusses ING's stakeholders and business principles of balancing interests and being a good corporate citizen.

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    92 views86 pages

    Attrition Rate in Ing Vysya Bank: Dissertation Report ON

    Uploaded by

    vipultandonddn
    This document provides an overview of ING Vysya Bank and discusses its promise and operations. Specifically, it notes that ING Vysya Bank is a subsidiary of the Dutch financial services giant ING Group, which has over 180,000 employees serving over 60 million customers globally. It also outlines ING Group's vision to set the standard in helping customers manage their financial future through exemplary service and competitive products. Finally, it briefly discusses ING's stakeholders and business principles of balancing interests and being a good corporate citizen.

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    © All Rights Reserved
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    of 86

    DISSERTATION REPORT ON

    ATTRITION RATE IN ING VYSYA BANK

    Submitted for the partial fulfillment of the re uirement for the de!ree of "ASTER IN B#SINESS AD"INISTRATION of #ttara$hand Te%hni%al #ni&er'it( Dehradun) *Bat%h +,,-.+,,/0
    Under the Guidance of: Submitted By:

    Dr) K) S) NEGI
    Director UIM, Dehradun

    YOGES1 GARG
    Enrol. No. 06 !0"00#

    #TTARAN21A3 INSTIT#TE O4 "ANAGE"ENT5 DE1RAD#N


    $%&&ro'ed by %I()E*

    -1-

    A2KNO63EDGE"ENT
    +re&arin, a &ro-ect of thi. nature i. an arduou. ta./ and I 0a. fortunate enou,h to ,et .u&&ort from a lar,e number of &er.on. to 0hom I .hall al0ay. remain ,rateful. I 0ould li/e to add a fe0 heartfelt 0ord. for the &eo&le 0ho 0ere &art of thi. &ro-ect in numerou. 0ay.11&eo&le 0ho ,a'e me unendin, .u&&ort 2 ,uidance ri,ht from the .ta,e thi. &ro-ect 0a. concei'ed. I am de.irou. of &lacin, on record &rofound indebtedne.. to "') Shanu Khatri5 3aculty in De&artment of Bu.ine.. Mana,ement, Uttaranchal In.titute of Mana,ement, for the 'aluable ad'ice, ,uidance, &reciou. time and .u&&ort that .he offered. I con'ey my heartily affection to all tho.e &eo&le 0ho hel&ed and .u&&orted u. durin, the cour.e, for com&letion of my Di..ertation 4e&ort and ma/in, it a .ucce...

    -2-

    E7E2#TIVE S#""ARY
    I ha'e done my re.earch &ro-ect at ING 56S6% B%N7. In my Study I ha'e analy8ed the rea.on. for 9i,h attrition rate of em&loyee. in ING 56S6% B%N7. )he &ro-ect .tart. 0ith an idea re,ardin, the ban/in, .ector and al.o the &rofile of ING 56S6% B%N7.

    )he out.ourcin, hi.tory of India i. one of &henomenal ,ro0th in a 'ery .hort .&an of time. %ttrition refer. to a method of achie'in, a reduction in &er.onnel by not refillin, &o.ition. that are 'acated throu,h re.i,nation, rea..i,nment, tran.fer, retirement or mean. other than layoff.. %ttrition i. tran.actional referrin, to it. de&endency on both en'ironmental 2 &er.onal 'ariable.. )he fact that lar,e number. of em&loyee. turno'er in the fir.t .i: month. of em&loyment .u,,e.t. that thi. i. a critical time for hel&in, &eo&le ad-u.t to ne0 role.. Mana,in, em&loyee.; e:&ectation. .hould actually .tart before em&loyment. <rientation &ro,ram. .hould not be a one=day e'ent> they .hould .&an the fir.t three month. of em&loyment. % ,ood orientation &ro,ram hel&. &re'ent mi.under.tandin,., and ,radually introduce. the em&loyee into the <r,ani8ation. By &ro'idin, -u.t=in=time information and trainin,, rather than a one=day ?core dum&? of information, your trainin, effort. 0ill yield much better re.ult.. %fter detailin, the <r,ani8ational (hart, ta/e time to clearly e:&lain the im&ortance of the em&loyee;. -ob. Mo.t im&ortantly, e.tabli.h a .u&&ort .y.tem for the ne0 em&loyee.

    -3-

    INTROD#2TION
    INDIAN BANKING SECTOR )he 4e.er'e Ban/ of India $4BI* act. a. a centrali8ed ,o'ernin, body. )hou,h +ublic Sector Ban/. currently dominate the Ban/in, Indu.try, numerou. +ri'ate and 3orei,n Ban/. e:i.t. India@. Go'ernment o0ned Ban/. dominate the mar/et. )heir &erformance ha. been mi:ed, 0ith a fe0 bein, con.i.tently &rofitable. Se'eral +ublic Sector Ban/. are bein, re.tructured and in .ome the ,o'ernment either already ha. or 0ill reduce it. o0ner.hi&. PRIVATE AND FOREIGN BANKS )he 4BI ha. ,ranted o&eratin, a&&ro'al to a fe0 &ri'ately o0ned dome.tic ban/.> of the.e many commenced ban/in, bu.ine... 3orei,n ban/. o&erate more than AB# branche. in India. )he entry of forei,n ban/. i. ba.ed on reci&rocity, economic and &olitical bilateral relation.. %n inter=de&artmental committee a&&ro'e. a&&lication. for entry and e:&an.ion. CAPITAL ADEQUACY NORM 3orei,n ban/. 0ere reCuired to achie'e an B &ercent ca&ital adeCuacy norm by March !## , 0hile Indian ban/. 0ith o'er.ea. branche. had until March !##" to meet that tar,et. %ll other ban/. had to do .o by March !##6. )he ban/in, .ector i. to be u.ed a. a model for o&enin, u& of India@. in.urance .ector to &ri'ate, dome.tic and forei,n &artici&ant., 0hile /ee&in, the national in.urance com&anie. in o&eration.

    -4-

    BANKING India ha. an e:ten.i'e ban/in, net0or/, in both urban and rural area.. %ll lar,e Indian ban/. are nationali8ed, and all Indian financial in.titution. are in the &ublic .ector. RBI BANKING )he 4e.er'e Ban/ of India i. the centrali8ed ,o'ernin, body. It i. the .ole authority for i..uin, ban/ note. and the .u&er'i.ory body for ban/in, o&eration. in India. It .u&er'i.e. and admini.ter. e:chan,e control and ban/in, re,ulation., and admini.ter. the ,o'ernment@. monetary &olicy. It i. al.o re.&on.ible for ,rantin, licen.e. for ne0 ban/ branche.. 0 forei,n ban/. o&erate in India 0ith full ban/in, Dicen.e.. Se'eral licen.e. for &ri'ate ban/. ha'e been a&&ro'ed. De.&ite fairly broad ban/in, co'era,e nation0ide, the financial .y.tem remain. inacce..ible to the &oore.t &eo&le in India. INDIAN BANKING SYSTEM )he ban/in, .y.tem ha. three tier.. )he.e are the .cheduled commercial ban/.> the re,ional rural ban/., 0hich o&erate in rural area., not co'ered by the .cheduled ban/.> and the coo&erati'e and .&ecial &ur&o.e rural ban/.. SCHEDULED AND NON SCHEDULED BANKS )here are a&&ro:imately B0 .cheduled commercial ban/., Indian and forei,n> almo.t A00 re,ional rural ban/.> more than "0 central coo&erati'e ban/., A0 land de'elo&ment ban/.> and a number of &rimary a,ricultural credit .ocietie.. In term. of bu.ine.., the &ublic .ector ban/., namely the State Ban/ of India and the nationali8ed ban/., dominate the ban/in, .ector.

    REG#3ATIONS ON 4OREIGN BANKS


    3orei,n ban/. in India are .ub-ect to the .ame re,ulation. a. .cheduled ban/.. )hey are &ermitted to acce&t de&o.it. and &ro'ide credit in accordance 0ith the ban/in, la0. and
    -5-

    4BI re,ulation.. (urrently about

    0 forei,n ban/. are licen.ed to o&erate in India.

    3orei,n ban/ branche. in India finance trade throu,h their ,lobal net0or/.. GOVERNMENT AND RBI REGULATIONS %ll commercial ban/. face .tiff re.triction. on the u.e of both their a..et. and liabilitie.. 3orty &ercent of loan. mu.t be directed to ?&riority .ector? and the Statutory DiCuidity 4atio and (a.h re.er'e reCuirement. .e'erely limit the a'ailability of de&o.it. for lendin,. )he 4BI reCuire. that dome.tic Indian ban/. ma/e E0 &ercent of their loan. at confe..ional rate. to &riority .ector.@ .elected by the ,o'ernment. )he.e .ector. con.i.t lar,ely of a,riculture, e:&orter., and .mall bu.ine..e.. Since Fuly !## , forei,n ban/. ha'e been reCuired to ma/e A &ercent of their loan. to thi. &riority .ector. Githin the tar,et of A &ercent, t0o .ub=tar,et. for loan. to the .mall= .cale .ector $minimum of !0 &ercent* and e:&ort. $minimum of !A &ercent* ha'e been fi:ed. 3orei,n ban/., ho0e'er, are not reCuired to o&en branche. in rural area., or to ma/e loan. to the a,ricultural .ector. (ommercial ban/. lent doll. !6.E6 billion in the Indian financial year $I36, %&ril=March* A00"HA006, u& .har&ly from doll. !0# billion in the &re'iou. year. )here are .e'eral other 0orrie. about the ban/in, .ector, mainly confu.ion o'er o0ner.hi& and control. Sometime .oon India 0ill be forced to a&&ly the norm. of de'elo&ed countrie. and many ban/. $includin, .ome of the bi,,e.t* 0ill .ho0 'ery &oor return ratio. and do8en. of ban/. 0ill be ban/ru&t. Ghen that ha&&en. the t0o &o&ular rea.on. to defend bad ban/. 0ill di.a&&ear. )he.e are: one, to .a'e face in the remote ho&e of that fortune. 0ill Ire'i'e@ and t0o, .ome ban/. are too bi, to be allo0ed to fail, fearin, .ocial u&hea'al.

    -6-

    PRO4I3E O4 ING
    6ho 8e are ING Grou& i. a ,lobal financial .er'ice. com&any of Dutch ori,in 0ith !"0 year. of e:&erience, &ro'idin, a 0ide array of ban/in,, in.urance and a..et mana,ement .er'ice. in o'er "0 countrie.. <ur !A0,000 em&loyee. 0or/ daily to .ati.fy a broad cu.tomer ba.e: indi'idual., familie., .mall bu.ine..e., lar,e cor&oration., in.titution. and ,o'ernment.. Ba.ed on mar/et ca&itali8ation, ING i. one of the A0 lar,e.t financial in.titution. 0orld0ide and ran/ed in the to&=!0 in Euro&e. )he immediate benefit to ING 5y.ya Ban/ ltd i. the &ride of ha'in, become a member of ,lobal financial .er'ice. ,iant, 0ith an a..et ba.e of !!"# billion euro., net &rofit of J.A! billion euro. a. of December !.t A00". 3urther, the &re.ence of the ,rou& in o'er "0 countrie., em&loyin, o'er !!J000 &eo&le, .er'in, o'er 60 million cu.tomer. acro.. the ,lobe, only multi&lie. the credibility, not only acro.. the country but al.o acro.. the ,lobe. )he &ride of thi. ,lobal identity, the bac/ u& of a financial &o0er hou.e and the .tatu. of bein, the fir.t Indian International ban/, 0ould al.o ,reatly enhance &roducti'ity, &rofitability re.ultin, in im&ro'ed &erformance for the ban/ to tran.late into hi,her return., to all the .ta/e holder.. Bu'ine'' ING i. the number one financial .er'ice. com&any in the Benelu: home mar/et. ING .er'ice. it. retail client. in the.e mar/et. 0ith a 0ide ran,e of retail=ban/in,, in.urance and a..et mana,ement .er'ice.. <ur 0hole.ale ban/in, acti'itie. o&erate 0orld0ide but 0ith a &rimary focu. on the Benelu: countrie.. In the United State., ING i. a to&=" &ro'ider of retirement .er'ice. and life in.urance. In (anada, 0e are the to& &ro&erty and ca.ualty in.urer. ING Direct i. a leadin, direct ban/ 0ith o'er !" million cu.tomer. in nine lar,e countrie.. In the ,ro0th mar/et. of %.ia, (entral Euro&e and South %merica 0e, for e:am&le, &ro'ide life in.urance. Ge are al.o a lar,e a..et mana,er 0ith a..et. under mana,ement of around EU4 "00 billion. "i''ion 0e .tri'e to deli'er our financial &roduct. and .er'ice. in the 0ay our cu.tomer. e:&ect:
    -7-

    0ith e:em&lary .er'ice, ma:imum con'enience and at com&etiti'e rate.. )hi. i. reflected in our mi..ion .tatement: to .et the .tandard in hel&in, our cu.tomer. mana,e their financial future. Sta$eholder' ING conduct. it. bu.ine.. on the ba.i. of clearly defined bu.ine.. &rinci&le.. In all our acti'itie. 0e carefully 0ei,h the intere.t. of our .ta/eholder.: cu.tomer., em&loyee., .hareholder., bu.ine.. &artner. and .ociety at lar,e. ING .tri'e. to be a ,ood cor&orate citi8en. Our 'trate!( Ge are a cu.tomer=orientated com&any 0ith a clear or,ani8ation and .trate,y 0hich i. founded on 'alue ba.ed mana,ement. Ge ha'e a .tron, &o.ition in mature mar/et. 0here 0e 0ant to ,enerate further ,ro0th throu,h &ro&er e:ecution of our bu.ine.. fundamental. $.uch a. cu.tomer .ati.faction and mana,in, co.t., ri./ and our re&utation* and 0e focu. on ,ro0th in retirement .er'ice., direct ban/in, and life in.urance in de'elo&in, mar/et.. )hat 0ay 0e try to offer our .hareholder. a hi,her return than the a'era,e of our &eer..

    -8-

    TOP +, G3OBA3 4INAN2IA3 INSTIT#TIONS

    -9-

    1ISTORY O4 ING
    ING GOING 4OR6ARD ING 0a. founded in !##! by a mer,er bet0een Nationale=Nederlanden and NMB +o.tban/ Grou& to become the fir.t banca..urer of the Netherland.. Durin, the &a.t !" year. ING ha. become a multinational 0ith 'ery di'er.e international acti'itie..

    )he root. of ING can be traced to the in.urer. De Nationale De'en.'er8e/erin, Ban/ and De Nederlanden 'an !BE" and to the &ublic ban/ .er'ice. .uch a. De 4i-/.&o.t.&aarban/ and De +o.tcheCue= and Girodien.t, a. 0ell a. to the Nederland.che Midden.tand. Ban/. )he.e are the le,al &redece..on. of the Kfoundin, father.; of ING> Nationale= Nederlanden and NMB +o.tban/ Grou&. )he olde.t le,al &redece..or i. the 7oo,er Doodenbo. from 7oo,, Noord 9olland, founded in !JE . Durin, that &eriod many re,ional fund. 0ere created to in.ure &eo&le
    - 10 -

    from certain communitie., &rofe..ion., 0ido0. and or&han. a,ain.t bad fortune. Many of the.e .mall or,ani.ation. 0ere ta/en o'er by lar,er nation0ide o&eratin, com&anie. .uch a. De Nationale De'en.'er8e/erin, Ban/. )he fire in.urer. 0ere the fir.t to underta/e international acti'itie., .tartin, in the Dutch Indie., but later al.o in the re.t of %.ia and in %merica. )hi. created the foundation for the international com&any ING i. today. )he &illari.ation of Dutch .ociety that .e&arated +rote.tant., (atholic. and Sociali.tHDiberal. i. al.o 'i.ible in the ING hi.tory. Ban/. 0ith a (atholic or +rote.tant .i,nature mer,ed into the NMB and became &art of ING. +rofe..ional ,rou&. al.o united in the ban/in, bu.ine... <r,ani.ation. .uch a. the (redietban/ for 7offiehui. en 4e.tauranthouder. $&ub. and re.taturant.*, the Ban/ 'oor den Diamantenhandel $diamond trade* and the 5a/bond..&aarban/ $Union Sa'in,. Ban/* 0ere in'ol'ed in .e'eral mer,er. and acCui.ition. and finally became &art of ING Ban/ and therefore &art of the ING family. )he foundin, of ING a. one com&any 0a. .tarted in !##0 0hen the le,al re.triction. on mer,er. bet0een in.urer. and ban/. 0ere lifted in the Netherland.. )hi. &rom&ted in.urance com&any Nationale=Nederlanden and ban/in, com&any NMB +o.tban/ Groe& to enter into ne,otiation.. )he mer,er into Internationale Nederlanden Grou& too/ &lace in !##!. )he mar/et .oon abbre'iated the name to I=N=G. )he com&any follo0ed .uit by chan,in, the .tatutory name to ING Groe& N.5. Since !##!, ING ha. de'elo&ed from a Dutch com&any 0ith .ome international bu.ine.. to a multinational 0ith Dutch root.. )hi. 0a. achie'ed throu,h a mi:ture of or,anic ,ro0th, .uch a. the creation of ING Direct from .cratch, a. 0ell a. 'ariou. lar,e acCui.ition..

    - 11 -

    )he to& of the com&any &edi,ree abo'e .ho0. the Kfoundin, father.; of ING> at the bottom you 0ill find the com&anie. that ING ha. acCuired .ince it. e.tabli.hment. In addition, com&anie. 0ere bou,ht that ha'e in the meantime been .old a,ain. )he fir.t lar,e acCui.ition too/ &lace in !##", 0hen ING too/ o'er Barin,. Ban/. )hi. acCui.ition increa.ed the brand reco,nition of ING around the 0orld and .tren,thened it. 0hole.ale ban/in, &re.ence in the emer,in, mar/et.. Some of Barin,.; acti'itie. 0ere inte,rated in ING;. bu.ine.. unit., 0hile other &art. 0ere clo.ed do0n or .old. In !###, ING acCuired the German B93=Ban/, but thi. 3ran/furt=ba.ed merchant ban/ 0a. di'e.ted in A00E. (enE ban/ier. al.o &layed an im&ortant role in ING;. hi.tory. It had been &art of NMB .ince !#66, but in A00E ING decided to .ell (enE. %nd then there 0a. Dife of Geor,ia. )hi. in.urance com&any 0a. acCuired by Nationale=Nederlanden in !#J#, re.ultin, in a con.iderable increa.e in acti'itie. in the US. 5ia Dife of Geor,ia, the acti'itie. in %.ia e:&anded con.iderably. 9o0e'er in A00E, ING a. a ,rou& had become 0ell=e.tabli.hed in both re,ion. and Dife of Geor,ia 0a. .old. In !#"6 an ING = &redece..or $de Nationale* bou,ht de )iel=Utrecht. )hi. .i,nificantly increa.ed the .i8e of the com&any. But it 0a. .old a,ain in !### to De Goud.e. <ther acCui.ition., .uch a. the Bel,ian Ban/ Bru..el. Dambert, .tren,thened the Grou&;. &re.ence in the Benelu:. In addition, the acti'itie. in de United State. 0ere doubled a. a

    - 12 -

    re.ult of or,anic ,ro0th and the acCui.ition of ECuitable of Io0a, 4eliaStar, %etna 3inancial Ser'ice. and merchant ban/ 3urman Sel8. ING i. al.o acti'e in other &art. of the 0orld. In A00!, ING acCuired a ma-ority intere.t in the +oli.h Ban/ Lla./i and &urcha.ed the remainin, .ta/e in the Me:ican in.urer Se,uro. (ommercial %merica. 3urthermore, ING &artici&ate. in a number of financial in.titution., .uch a. +acific %ntai Dife In.urance and the (hina Merchant. 3und Mana,ement. It ha. al.o e.tabli.hed a &artner.hi& 0ith the Ban/ of Bei-in,. )hi. ha. .tren,thened ING;. &re.ence in the emer,in, mar/et. of %.ia, 0here ING ha. a lon,.tandin, &re.ence. )he Netherland. of !BE" had been acti'e in (hina .ince !BB6 and NMB Ban/ had -oint 'enture. in !#JE $Inter=%l&ha %.ia*. Durin, it. .hort e:i.tence, ING ha. ,ro0n into a 'er.atile, international com&any. ING 0ill continue alon, thi. &ath by &ro'idin, e:cellent .er'ice. throu,h it. e:i.tin, bu.ine..e. and by focu..in, on three ,ro0th area.: direct ban/in,, &en.ion. and emer,in, mar/et.. Jth , A00A
    !# 0 !#EB !#B" !#BJ !#BB !##0 !##A !## !##6 !##B A000 A00! A00A A00A Set u& in Ban,alore Scheduled Ban/ Dar,e.t +ri'ate Sector Ban/ )he 5y.ya Ban/ Dea.in, Dtd. (ommenced +ioneered the conce&t of (o brandin, of (redit (ard. +romoted 5y.ya Ban/ 9ou.in, 3inance Dtd. De&o.it. cro.. 4..!000 crore. Number of Branche. cro..ed 00 Si,n. Strate,ic %lliance 0ith BBD., Bel,ium. )0o National %0ard. by Gem 2 Fe0ellery E:&ort +romotion (ouncil for e:cellent &erformance in E:&ort +romotion (a.h Mana,ement Ser'ice., 2 commi..ionin, of 5S%). Golden +eacoc/ %0ard = for the be.t 94 +ractice. by In.titute of Director.. 4ated a. Be.t Dome.tic Ban/ in India by Global 3inance $International 3inancial Fournal = Fune !##B* State =of = the =art Date (entre at I)+D, Ban,alore. 4BI clear. .ettin, u& of ING 5y.ya Dife In.urance (om&any ING=5y.ya commenced life in.urance bu.ine... )he Ban/ launched a ran,e of &roduct. 2 .er'ice. li/e the 5y. 5ya&ar +lu., the ran,e of loan .cheme. for trader., %)M .er'ice., Smart.er', &er.onal a..i.tant .er'ice, Sa'e 2 Secure, an account that &ro'ide. accident ho.&itali8ation and in.urance co'er, Sambandh, the International Debit (ard and the mi=bMn/ net ban/in, .er'ice. ING ta/e. o'er the Mana,ement of the Ban/ from <ctober Jth , A00A

    ING ta/e. o'er the Mana,ement of )he 5y.ya Ban/ from <ctober

    - 13 -

    A00A A00 A00E A00" A006

    4BI clear. the ne0 name of the Ban/ a. ING 5y.ya Ban/ Dtd, 'ide their letter of !J.!A.0A Introduced cu.tomer friendly &roduct. li/e <ran,e Sa'in,., <ran,e (urrent and +rotected 9ome Doan. Introduced +rotected 9ome Doan. = a hou.in, loan &roduct Introduced Solo = My <0n %ccount for youth and (u.tomer Ser'ice Dine N +hone Ban/in, Ser'ice Saral Sa'in,. = No 3rill. %ccount for the common man

    - 14 -

    ING APPROA21
    Doin! 6ell B( Doin! Ri!ht <&eratin, in a hi,hly com&etiti'e ,lobal mar/et, our re.ult. can be attributed to our 0illin,ne.. to challen,e con'entional thin/in,. Ge &ioneered the conce&t of the inte,rated financial .er'ice. com&any, brin,in, ban/in, and in.urance to,ether to benefit our cu.tomer. and .tren,then our bu.ine... %nother e:am&le i. ING Direct. )hi. inno'ati'e mar/etin, .trate,y 2 communication a&&roach of retail ban/in, .tarted in !##" and today ING Direct i. a leadin, direct ban/ 0ith o'er !" million cu.tomer. in # lar,e countrie.. Di/e e'ery bu.ine.., .ucce.. de&end. on deli'erin, re.ult.. But at ING 0e are al.o moti'ated by .omethin, more N en.urin, that e'ery deci.ion 0e ma/e i. the ri,ht one. %nd a. a re.ult 0e are doin, 0ell for our cu.tomer., our .ta/eholder. and our.el'e.. In .hort: KDoin, Gell by Doin, 4i,ht;. <ur to& &riority i. to li.ten to the need. and &er.&ecti'e. of our di'er.e cu.tomer. N allo0in, u. to .tay connected to them, to re.&ond more effecti'ely and antici&ate their need.. But from there 0e encoura,e our collea,ue. to ta/e char,e and ma/e their o0n deci.ion.. )hat 0ay, a ,ood outcome i. .omethin, 0e can all feel &art of. )he 0ay 0e 0or/ +erformance i. all 0ell and ,ood, but it mean. nothin, if inte,rity ha. to be di.carded for it to ha&&en. %t ING, 0e belie'e in re.&on.ible ,ro0th, 0hich mean. that ho0 0e do bu.ine.. i. -u.t a. im&ortant a. the .ucce.. 0e en-oy. Ethic. &lay an e..ential role at ING, and are re&re.ented by the Bu.ine.. +rinci&le. that ,uide ho0 0e conduct our relation.hi&., ma/e our deci.ion. and de'elo& the &otential of our &eo&le. 3et9' tal$ about (our future) 4ated a to& ten Euro&ean em&loyer by 3ortune ma,a8ine, ING i. one of the 0orld@. fa.te.t=de'elo&in, financial enter&ri.e.. But the .&eed of our de'elo&ment i.n;t limited to
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    our e'er=,ro0in, bu.ine.. .ucce.. = it al.o relate. to the &ro,re..i'e o&&ortunitie. 0e offer the &eo&le 0ho choo.e to build a career 0ith u.. ING 0ant. to ,ro0 &rofitably by enhancin, cu.tomer .ati.faction, in'e.tin, in ,ro0th and mana,in, our co.t., ri./. and re&utation. Ge .ee/ to e:ecute our .trate,y in a re.&on.ible 0ay, ,uided by the ING Bu.ine.. +rinci&le.. )hey &ro'ide the ba.i. for all conduct at ING and .tate the re.&on.ibilitie. 0e ha'e to0ard. /ey .ta/eholder..

    2orporate So%ial Re'pon'ibilit( )he ban/ a. a &art of it. (or&orate Social 4e.&on.ibility ha. &artnered 0ith +ari/rma 9umanity 3oundation. +ari/rma 9umanity 3oundation i. a non=&rofit com&any aimin, to unlea.h the &otential of .lum children in urban India. )heir mi..ion i. to hel& the &oor brea/ their cycle of &o'erty and li'e meanin,fully throu,h tool. nece..ary to .ucceed in a /no0led,e ba.ed 0orld. 3or the &a.t A year., ING 5y.ya Ban/ and +ari/rma &artnered to,ether to &romote the uniCue &ro,ram = ?(han,e 6our Gorld in O a day?, 0ith the aim to tran.form the li'e. of hundred. of under=.er'ed children in Ban,alore.

    )o /no0 more about +ari/rma and it. &artner.hi& 0ith ING 5y.ya Ban/, 'i.it the .ite htt&:HH000.&ari/rmafoundation.or,Hcy0Phalfday.htm

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    2orporate Re'pon'ibilit( Report In&e't in 'omeone 8ho %ould be (our future %ollea!ue %t +ari/rma, 0e ha'e a 'ery .im&le idea N &ro'ide the &oore.t of the &oor children the tool. to com&ete eCually for 'alue=added -ob.. 3or that they need to ha'e to&=cla.. education and 0e need to hold their hand. ri,ht throu,h School, Funior (olle,e, ,raduation and e'en &lace them in tho.e 'alue=added -ob.. (hildren ha'e reached ,rade 5III. )hree year. hence they 0ill enter a Funior (olle,e $&re=uni'er.ity* and 0e need to be ready for that. And all it ta$e' i' (our : a da(9' 'alar() Change your world in a day

    In'e.t -u.t O a day of your entire year;. .alary. In return 0e 0ill ma/e you a .ta/eholder in +ari/rma. 6ou 0ill ,et to /no0 the im&act your O day i. ma/in, on the children and communitie. that +ari/rma .er'e.. %nd 0hat i. more you 0ill recei'e a free tic/et for A to a roc/ concert that 0ill in.&ire you. )he concert i. .lated for Fanuary !Eth, A00J. 2han!e Your 6orld in : a Da( ; +,,< Da.t year 6,A00 belie'er. from more than J0 com&anie. &artici&ated in the O a day &ro,ram. Ge 0ere able to rai.e enou,h fund. to loo/ &ro'ide our 60 de,ree de'elo&ment &ro,ram to o'er A"0 children $co.tHchild brea/ u&*. )hat i. the &o0er of each O a day.

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    2han!e Your 6orld in : a Da( ; +,,- )hi. year our ob-ecti'e throu,h the O day &ro,ram i. to rai.e fund. to build a Funior (olle,e. 6our O day in'e.tment i. in'aluable to thi.. <f cour.e you may choo.e to in'e.t more than -u.t O a day. +lea.e do. E'ery ru&ee more 0ill further our ,oal of en.urin, continuity of the children;. education beyond .chool.

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    ING STRATEGY
    SETTING THE STANDARD IN HELPING OUR CUSTOMERS MANAGE THEIR FINANCIAL FUTURE ING "ISSION STATE"ENT A clear or a!"#a$"o! )o fulfill any mi..ion .tatement you need an or,ani.ation that i. u& to the ta./. ING ha. a mana,ement .tructure ba.ed on the &rinci&le. of tran.&arency, accountability and client focu.. <ur acti'itie. are or,ani8ed alon, .i: functional bu.ine.. line. 0ith direct re&ortin, line. that enable Cuic/ deci.ion=ma/in, and fo.ter &er.onal em&o0erment and .tron, accountability.

    A clear %"!a!c"al o&'ec$"(e) <ur ,oal. i. to deli'er 'alue to .hareholder. throu,h a combination of ,ro0th and return that i. hi,her than the a'era,e of our &eer.. A clear *$ra$e + )o achie'e thi., 0e mana,e for 'alue. )hi. mean. focu.in, on ,ro0in, economic &rofit, 0hich mea.ure. &rofit beyond the co.t of ca&ital, and em&ha.i8in, return im&ro'ement and &rofitable or,anic ,ro0th.

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    E7E2#TION In our mature bu.ine..e. &rofitable or,anic ,ro0th come. from the &ro&er e:ecution of our bu.ine.. fundamental.. )hi. mean. mana,in, co.t., ri./. and re&utation and e:em&lary cu.tomer .er'ice. C,*$o-er *a$"*%ac$"o! ING attache. the utmo.t im&ortance to e:em&lary cu.tomer .er'ice. E.&ecially in mature mar/et., 0e belie'e hi,h cu.tomer .ati.faction i. the 0ay to differentiate our.el'e. from our &eer. and to ,enerate &rofitable to&=line ,ro0th. In order to continuou.ly im&ro'e cu.tomer .ati.faction, ING;. mi..ion .tatement $abo'e* i. the ,uideline for e'ery em&loyee. Ge continuou.ly mea.ure cu.tomer .ati.faction and .et &erformance tar,et.. Ma!a "! co*$* (u.tomer .ati.faction alone, ho0e'er, i. not enou,h to create 'alue, e.&ecially not in mature mar/et.. 3ierce com&etition in the.e mar/et. ma/e. it e..ential to loo/ continuou.ly for 0ay. to /ee& co.t. under control and im&ro'e efficiency. (o.t containment and e:cellent cu.tomer .ati.faction ,o hand=in=hand a. o&erational dri'er. to create 'alue in the.e mar/et.. Ma!a "! r"*.* Mana,in, our ri./. and con.eCuently the co.t of ca&ital i. e..ential for .table, &rofitable ,ro0th. 4i./ mana,ement .u&&ort. 'alue creation by &ro'idin, in.i,ht into the le'el. of ri./ 0e can ab.orb com&ared 0ith our earnin,. &o0er and ca&ital ba.e. Inte,rated ri./ mana,ement $combinin, credit, mar/et, in.urance and o&erational ri./ into one common 'ie0* i. a /ey in,redient in our .trate,y. It allo0. u. to ca&ture the benefit. of bein, a di'er.ified financial .er'ice. firm and to create a clear o'er'ie0 of all ri./.. <ur ultimate ,oal of inte,rated ri./ mana,ement i. to better ali,n our ri./ ta/in, to our ri./ a&&etite. )hi. allo0. ING to ma/e o&timal u.e of it. ca&ital ba.e, leadin, to a lo0er o'erall co.t of ca&ital.
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    Ma!a "! re/,$a$"o! Inte,rity and re&utation are t0o of ING;. mo.t im&ortant a..et.. <ur .tron, focu. on e:ecution ha. re.ulted in a ,reater em&ha.i. on the im&ortance of adherence to la0. and re,ulation.. 4e,ulatory com&liance i. e..ential becau.e ING;. lon,=term relation.hi&. 0ith it. client. de&end on inte,rity and fairne... ING ha. a ,rou&0ide com&liance &olicy. Senior mana,ement i. accountable for com&liance and com&liance i. inte,rated in their &erformance tar,et. and remuneration .tructure. GRO6T1 ING al.o continue. to in'e.t in bu.ine.. area. that ha'e clear ,ro0th &otential. Ge ha'e defined three main area. of ,ro0th: retirement .er'ice., direct ban/in, and life in.urance in de'elo&in, mar/et.. ING ha. .tron, &o.ition. in the.e bu.ine..e. and intend. to rai.e further their &rofit &otential by u.in, the e:&erience and ca&ital ,ained in ING;. mature bu.ine... D"rec$ Ba!."! )he continuin, increa.e of the u.e of internet offer. ,reat bu.ine.. o&&ortunitie.. Gith KING Direct; 0e ha'e deli'ered in thi. bu.ine.. and continue to do .o. )oday, ING i. the leadin, direct ban/ in the 0orld. By e:&andin, our &roduct ran,e from .a'in,. into mort,a,e., 0e e:&ect to continue to ,ro0 thi. bu.ine... (urrently ING Direct i. acti'e in nine mature economie.: %u.tralia, (anada, 3rance, Germany, %u.tria, Italy, S&ain, United 7in,dom and the United State.. In the Netherland., +o.tban/ i. ING;. direct ban/. Re$"re-e!$ *er("ce* Ge .ee .i,nificant o&&ortunitie. in mature and ,ro0th mar/et. for retirement .er'ice.. )hi. i. dri'en by demo,ra&hic and re,ulatory chan,e.. )he &o&ulation throu,hout the 0orld i. a,ein,. Go'ernment. can not deal 0ith thi. challen,e on their o0n. 4etirement .er'ice. are a /ey area for bu.ine..e. to de'elo&. ING ha. a lon,=.tandin, e:&erti.e in thi. field. Ge
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    already e:cel in &ro'idin, retirement .er'ice. in many re,ion.. ING i. in'ol'ed in a..i.tin, ,o'ernment. and .ettin, u& &en.ion .tructure. in many de'elo&in, mar/et.. L"%e "!*,ra!ce "! 0e(elo/"! -ar.e$* Ge can build on an e.tabli.hed &re.ence in %.iaH+acific, Datin %merica and (entral Euro&e. In %.ia, 0e ha'e a ,reat &ortfolio of in.urance bu.ine..e.. Ge focu. on lon,= term relation.hi&. and .tron, alliance. 0ith ban/. in the re,ion. In (entral Euro&e, ING ha. been &re.ent from the .tart 0hen their mar/et. o&ened u& to the Ge.t. Ge ha'e a 'ery broad &re.ence there. )oday, ING i. the number one life in.urer in the re,ion and i. 0ell &o.itioned to benefit from the ,ro0th of the.e mar/et..

    A PER4OR"AN2E 2#3T#RE Succe.. reCuire. that em&loyee. under.tand ING;. .trate,y and the ,oal. of their bu.ine.. unit. Em&loyee. mu.t /no0 their role in achie'in, the.e ,oal. and recei'e re,ular feedbac/ on their &erformance and are re0arded accordin,ly. )hi. i. ho0 ING .ee. a &erformance culture and ho0 it i. bein, embedded in the com&any.

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    O#R VA3#ES Ge are a cu.tomer=orientated com&any 0ith a clear or,ani.ation and .trate,y 0hich i. founded on 'alue ba.ed mana,ement. Ge ha'e a .tron, &o.ition in mature mar/et. 0here 0e 0ant to ,enerate further ,ro0th throu,h &ro&er e:ecution of our bu.ine.. fundamental. $.uch a. cu.tomer .ati.faction and mana,in, co.t., ri./ and our re&utation* and 0e focu. on ,ro0th in retirement .er'ice., direct ban/in, and life in.urance in de'elo&in, mar/et.. )hat 0ay 0e try to offer our .hareholder. a hi,her return than the a'era,e of our &eer.. LEARNING AND DEVELOPMENT HOW DO I DEVELOP MY STRENGTHS? BRINGING 3EARNING TO 3I4E. Di/e e'erythin, at ING, your learnin, and de'elo&ment i. de.i,ned to be &ractical, entre&reneurial and inno'ati'e. +ractical, becau.e 0e aim to ma/e you a. .ucce..ful a. &o..ible, a. Cuic/ly a. &o..ible, in your field> entre&reneurial, becau.e ultimately you are re.&on.ible for dri'in, your learnin,> and inno'ati'e, becau.e that@. -u.t the 0ay 0e are. Each country and Bu.ine.. Unit deli'er. learnin, in the 0ay mo.t a&&ro&riate to them, but the.e ,uidin, &rinci&le. remain con.tant: Gith the .u&&ort and ,uidance of your mana,er and 9uman 4e.ource. ad'i.er, you 0ill ha'e the o&&ortunity to e:&lore the bu.ine.., build u& a 'aluable net0or/ of contact. and find the area mo.t .uited to you Durin, your career at ING, you 0ill e:&erience different role. and &ro-ect. that really challen,e you. 3or e:am&le, you may be in'ol'ed in a @Greenfield@ initiati'e, hel&in, to build a ne0 bu.ine.. in a ne0 ,eo,ra&hical area> or a @Goldfield@ initiati'e, in 0hich you@ll &ioneer a ne0 mar/et 0here 0e already ha'e a &re.ence 6ou 0ill recei'e e:ce&tional on=the=-ob, in=hou.e and &rofe..ional trainin, Ge monitor your &erformance and ,i'e you re,ular feedbac/, .o you dee&en your under.tandin, of your.elf and the &o..ibilitie. o&en to you (ollea,ue. and mana,er. are 'ery 0illin, to .hare their e:&erience and ad'ice = after all,
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    if it hel&. you, it hel&. the bu.ine..Q

    )he ING Bu.ine.. School, ba.ed in the Netherland., offer. uniCue, hi,h Cuality leader.hi& education to current and future .enior mana,er. and .&eciali.t. acro.. our com&any in an ING .ettin,.

    N#RT#RING O#R TA3ENT <r,ani.ational Dearnin, i. our fully=inte,rated ,lobal trainin, function. It i. a /ey contributor to &erformance .ucce.., allo0in, em&loyee. to ta/e re.&on.ibility for their o0n learnin, and de'elo&ment and reflectin, our commitment to buildin, a 0or/&lace culture 0here all em&loyee. ha'e the o&&ortunity to learn and ,ro0. Ge ha'e a K<ne Ban/; curriculum to en.ure that all em&loyee. ha'e acce.. to con.i.tent learnin, o&&ortunitie. acro.. our mar/et. .u&&orted by .e'eral Dearnin, 4e.ource (entre.. Such Dearnin, 4e.ource (entre. &ro'ide learnin, .olution. for both &er.onal and &rofe..ional de'elo&ment throu,h tau,ht and on=line learnin,. )hi. focu. ha. allo0ed u. to increa.e both the number of learner. and learner day. .i,nificantly in the &a.t three year.. 3EADERS1IP AND E7E2#TIVE DEVE3OP"ENT Effecti'e leader.hi& i. the /ey to both our current and future .ucce... Ge u.e a ran,e of de'elo&ment and a..e..ment &ro,ramme. to de'elo& leader. includin, the de'elo&ment of Indi'idual Deader.hi& +lan., de'elo&in, .tren,th., identifyin, learnin, o&&ortunitie. and mentorin,. Ge al.o &ro'ide indi'idual coachin, to im&ro'e leader. &erformance and encoura,e their &er.onal and &rofe..ional de'elo&ment. ING al.o .&on.or e:ecuti'e de'elo&ment &ro,ramme. 0ith leadin, academic in.titution.. 61AT9S IN IT 4OR YO#= +eo&le -oinin, ING 0ill be connected to a 0ealth of trainin,, de'elo&ment, career o&&ortunitie. and a 0hole lot more. Ge thin/ that a .ati.fyin, career at ING .hould incor&orate a number of other element. to /ee& you en,a,ed, &a..ionate and committed.

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    1ERE9S 1O6 6E DO IT> Ge;re hun,ry. ING i. characteri.ed by differentiation and international e:&an.ion. It;. a ,ood time to -oin u., e.&ecially if you are loo/in, for an international 0or/in, en'ironment. )ime ,oe. fa.t in our bu.ine... Ge hire &eo&le 0ho are able and ea,er to handle re.&on.ibility fa.t N then hel& them de'elo& the &ractical ./ill. they need to do .o. )hi. mean. ,i'in, them early re.&on.ibility and hand.=on challen,e. to &ro'e 0hat they can. Ge are a learnin, or,ani.ation 0ith an inno'ati'e and &ro,re..i'e re&utation. Ge ha'e our o0n ING Bu.ine.. School, to 0hich you 0ill ,et re,ular acce... <ur &eo&le en-oy a ho.t of &er.onal, &rofe..ional and 'irtual learnin, tool. to .tay ahead of the re.t. %t ING, &eo&le that deli'er re.ult. and create 'alue 0ill be fairly reco,ni8ed and re0arded.

    YO# AND ING Ghat you 0ill find at ING i. a combination of inde&endence and collaboration. Ge all 0or/ clo.ely to,ether, acro.. bu.ine.. line. and international border.. But at the .ame time 0e encoura,e &er.onal re.&on.ibility and o0ner.hi&. Ge &ride our.el'e. on offerin, e'en our ne0e.t .tarter. the o&&ortunity to ma/e a real contribution, and deli'er real re.ult.. )a/in, o0ner.hi& of the deci.ion=ma/in, &roce.., you 0ill ma/e .ure your idea. are ri,ht for our cu.tomer., our .ta/eholder. and each other. )hen 0e 0ill ,i'e you the .u&&ort you need to ma/e them ha&&en. Becau.e 0e belie'e that our ,lobal .ucce.. i. .omethin, 0e .hould all feel &art of. In .hort: KDoin, Gell by Doin, 4i,ht;. 4e0ardin, +erformance ING belie'e. em&loyee re0ard. .hould be .tron,ly lin/ed to mar/et and &erformance, and therefore each bu.ine.. line ha. de.i,ned .&ecific remuneration and incenti'e and benefit &lan. 0hich .u&&ort thi. belief. More information about 0or/in, at ING can be read in the RGe em&loy +eo&leS .ection of ING (or&orate 4e.&on.ibility re&ort.

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    PER4OR"AN2E "ANAGE"ENT
    1O6 A" I DOING= B,"l0"! a 1" 1 /er%or-"! or a!"*a$"o! ING i. committed to bein, a hi,h &erformin, or,ani.ation 0hich deli'er. e:cellent re.ult. and .tandard. of .er'ice to all our .ta/eholder.. <ur a&&roach aim. to en.ure that all em&loyee. are clear about 0hat they are e:&ected to achie'e, their &er.onal de'elo&ment ,oal. and their contribution to bu.ine.. &erformance. RE6ARD AND RE2OGNITION HO2 AM I RECOGNISED AND RE2ARDED3 Differentiatin! hi!h performan%e Ban/ i. committed to &ro'idin, com&en.ation and benefit. com&etiti'ely &o.itioned to attract, retain and moti'ate talented indi'idual.. %. a hi,h &erformin, or,ani.ation, 0e lin/ re0ard. to indi'idual &erformance and the e:tent to 0hich the em&loyee ha. demon.trated a commitment to our 'alue.. (on.i.tent 0ith our 'alue., ba.e .alarie. bonu. and .hare a0ard. are benchmar/ed a,ain.t our /ey com&etitor., focu.in, on hi,h &erformin, em&loyee.. (ore benefit. .uch a. annual lea'e, retirement benefit., .ic/ne.. and medical benefit. are &ro'ided acro.. our bu.ine..e. and ,eo,ra&hie. in accordance 0ith local cu.tom and &ractice.

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    E44E2TIVE SERVI2E DE3IVERY Effecti'e .er'ice deli'ery i. the &riority of the human re.ource function to deli'er an efficient, 'alue=added .er'ice acro.. the Ban/. 9UM%N 4IG9)S ING .u&&ort. the ri,ht. of the indi'idual a. e:&re..ed in the !#EB United Nation. Uni'er.al Declaration of 9uman 4i,ht. $UD94*. )he UD94 contain. a number of fundamental ri,ht., 0hich 0e aim to u&hold in all circum.tance., includin,: )he ri,ht to life )he ri,ht to le,al reco,nition a. a &er.on 3reedom of thou,ht, con.cience and reli,ion 3reedom of o&inion and e:&re..ion 3reedom from torture 3reedom from cruel, inhumane or de,radin, treatment 3reedom from .la'ery and .er'itude 3reedom from retroacti'e &enal le,i.lation ING meet. all rele'ant international le,al obli,ation. and all rele'ant local le,al obli,ation. in the countrie. in 0hich 0e o&erate. Ban/ .trictly a&olitical and do not en,a,e in &olitical acti'ity, .u&&ort &olitical &artie. or ha'e any &olitical affiliation. 0orld0ide. )hey reco,ni8e hat ban/ ha'e direct re.&on.ibility for the im&act of their acti'itie. on their em&loyee., .u&&lier., cu.tomer. and the communitie. in 0hich they o&erate. Ban/ 0or/ to &rotect human ri,ht. in their o0n o&eration. throu,h their internal &olicie. and &rocedure.. Ban/ &olicie. al.o en.ure that human ri,ht. are ta/en into account in &rocurement and lendin, deci.ion.. LABOUR STANDARDS )he International Dabour <r,ani.ation $ID<* i. a United Nation. a,ency 0hich &romote. human and labour ri,ht.. )here are ei,ht ID< (on'ention. that ha'e been identified a. fundamental to indi'idual. at 0or/, irre.&ecti'e of le'el. of de'elo&ment of indi'idual member .tate.. ING fully .u&&ort. the fundamental ID< con'ention.. 9o0e'er, ban/ are mindful of labour la0. 0ithin the countrie. in 0hich they o&erate and of the fact that .ome countrie.
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    ha'e not ratified all of the.e con'ention.. Ban/ commitment to the Global (om&act al.o mean. that they ob.er'e it. &rinci&le. on labour .tandard..

    PROD#2T PRO4I3E O4 ING VYSYA BANK


    ING 5y.ya Ban/ Dtd., i. an entity formed 0ith the comin, to,ether of er.t0hile, 5y.ya Ban/ Dtd, a &remier ban/ in the Indian +ri'ate Sector and a ,lobal financial &o0erhou.e, ING of Dutch ori,in, durin, <ct A00A.
    - 28 -

    )he ori,in of the er.t0hile 5y.ya Ban/ 0a. &retty humble. It 0a. in the year !# 0 that a team of 'i.ionarie. came to,ether to found a ban/ that 0ould e:tend a hel&in, hand to tho.e 0ho 0eren@t &ri'ile,ed enou,h to en-oy ban/in, .er'ice.. It@. been a lon, -ourney .ince then and the Ban/ ha. ,ro0n in .i8e and .tature to encom&a.. e'ery area of &re.ent=day ban/in, acti'ity and ha. car'ed a di.tinct identity of bein, India@. +remier +ri'ate Sector Ban/. In !#B0, the Ban/ com&leted fifty year. of .er'ice to the nation and &o.t !#B"> the Ban/ made ra&id .tride. to reach the co'eted &o.ition of bein, the number one &ri'ate .ector ban/. In !##0, the ban/ com&leted it. Diamond Fubilee year. %t the Diamond Fubilee (elebration., the then 3inance Mini.ter +rof. Madhu Danda'ate, had termed the &erformance of the ban/ @Stu&endou.@. )he year of A00" 0a. the J"th anni'er.ary or +latinum Fubilee year.

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    ING VYSYA BANK O44ER IN23#DES>


    4etail Ban/in, N4I Ban/in, Ser'ice. +ri'ate ban/in, Ghole Sale ban/in, 3inancial Mar/et. ING 5y.ya Dife In.urance

    ING 5y.ya Mutual 3und

    - 30 -

    ING9S B#SINESS 3INES ING ha. a .tructure of .i: bu.ine.. line.. % clear client focu. and .tron, bu.ine.. lo,ic are the /ey element. in thi. .tructure.

    In'uran%e Europe <&erate. the in.urance acti'itie. in the Netherland., Bel,ium, S&ain, Greece and (entral Euro&e and a..et=mana,ement acti'itie. in Euro&e. In the.e countrie. 0e offer life in.urance 0ith .&ecial attention for &en.ion.. In the Netherland. and Bel,ium 0e al.o offer non=life in.urance. In'uran%e Ameri%a' 9old. in.urance o&eration. and a..et=mana,ement acti'itie. in the %merica.. It i. 0ell e.tabli.hed in the US 0ith retirement .er'ice., annuitie. and life in.urance. and ha. leadin, &o.ition. in non=life in.urance in (anada and Me:ico. 3urthermore, 0e are acti'e in (hile, Bra8il and +eru. In'uran%e A'ia?Pa%ifi% 9old. the life in.urance o&eration. and a..etH0ealth mana,ement acti'itie. in %.iaH+acific. It ha. 0ell e.tabli.hed &o.ition. in %u.tralia, 9on, 7on,, Fa&an, 7orea, Malay.ia and )ai0an. )he acti'itie. in (hina, India, and )hailand are future ,ro0th en,ine. for ING.

    - 31 -

    6hole'ale Ban$in!

    ORGANISATION 21ART. ING VYSYA BANK DEPART"ENTS DI44ERENT DEPART"ENTS


    4etail Ban/in, Gealth Mana,ement Bu.ine.. Ban/in, Di'i.ion %,riculture 2 Social Ban/in, N4I Ban/in, Ser'ice. (or&orate 2 In'e.tment Ban/in, Emer,in, (or&orate. +ri'ate Ban/in, Ghole Sale ban/in, 3inancial Mar/et Mutual 3und. Dife In.urance +ayment. (a.h Mana,ement Ser'ice. (u.tomer .er'ice )rade 3inance Ser'ice. 9ome Doan +er.onnel Doan 94 I)+D (or&orate Ser'ice. De&artment (or&orate Sale. Doc/er (redit card.

    - 32 -

    3ITERAT#RE REVIE6
    %. &er 0eb definition, R4eduction in a com&any;. cu.tomer &o&ulation that ha&&en. a. a re.ult of normal turno'er or becau.e of .ome .&ecific e'ent T &erha&. a ,ood com&etiti'e offer or a failure on the &art of the com&any. $%l.o /no0n a. churn*S BANKS AS E"P3OYERS IN 2ANADA *@#3Y +,,A0 *888)%ba)%a?en?%ontent?'tat'?fa'tfa%t'?,A,/BC.Ban$'D+,a'D+, EN.leaE)pdf0 (anada;. ban/. and their .ub.idiarie. contribute .i,nificantly to em&loyment and -ob creation. )hey directly em&loyed more than A J,000 (anadian. a. of Fuly !, A00 . )hi. re&re.ent. an increa.e of more than J &er cent .ince !##B, 0hen the indu.try em&loyed AAA,A00 (anadian.. Emplo(ment Trend' )echnolo,y i. one of the main dri'er. of -ob. in the ban/in, indu.try. (ontinuin, inno'ation. in technolo,y allo0 em&loyee. to mo'e from tran.action=ba.ed to /no0led,e=inten.i'e -ob. focu..in, more on in=de&th, 'alue enhanced cu.tomer relation.hi&.. 3or e:am&le, the number of em&loyee. at the middle mana,ement le'el increa.ed by !0 &er cent from !##B to A00A. In /ee&in, 0ith thi. trend, ban/. are recruitin, em&loyee. 0ith hi,her education or ./ill le'el. and are hel&in, their e:i.tin, em&loyee. u&,rade their ./ill. throu,h trainin,. <cca.ionally indi'idual ban/. ,o throu,h &eriod. of re.tructurin, and ad-u.tment 0hen certain ty&e. of -ob. may be reduced or eliminated. Ghen ban/. mu.t reduce .taffin, le'el. they u.ually do .o o'er .e'eral year. and lar,ely throu,h attrition and early retirement. )hey al.o 0or/ 0ith em&loyee. to hel& them find ne0 -ob. 0ithin the ban/ throu,h retrainin,, rede&loyment and relocation or they may &ro'ide them 0ith -ob &lacement coun.ellin,. E'en 0hen &o.ition. are bein, reduced in .ome area., other bu.ine.. line. in the indu.try continue to ,ro0. (urrent ,ro0th area. are in.titutional deli'ery, mort,a,e., commercial loan., and o&eration. and .y.tem..
    - 33 -

    Emplo(er'.T23.

    E"P3OYEE ATTRITION
    The name i' bond5 emplo(ee bond *Arti%le b( Shell( Sin!h5 Bu'ine'' 8orld5 Au!u't C,5 +,,A0 Ghat;. the be.t 0ay to retain em&loyee. on 0hom a com&any ha. in'e.ted &reciou. time and moneyU )ie them do0n 0ith bond.. Sound. li/e an idea that 0a. buried 0ith 6A7. Gell, it;. bac/. Gith attrition u& at !6=!J &er cent no0 from -u.t E=6 &er cent about !B month. bac/, that;. 0hat com&anie. li/e Gi&ro )echnolo,ie. and Mind )ree (on.ultin, are fallin, bac/ on. In fact, attrition amon, cam&u. recruit. i. hi,her at E0 &er cent, and that;. 0here the &roblem i.. Gi&ro train. em&loyee. only to find that they are off in -u.t =E month.. )hat;. 0hen it came u& 0ith a bond .cheme for it. 0or/er.. But bond. ha'e ne'er been a ,reat 0ay to retain &eo&le. Say. Sreeni'a. (ha/ra'arthy, 'ice &re.ident $&eo&le de'elo&ment*, %diti technolo,ie.: RE'en court -ud,ment. ha'e not been in fa'our of com&anie. a./in, em&loyee. to .i,n bond.. It i. a ne,ati'e 0ay to retain &eo&le.S Gi&ro be,. to differ. It claim. to ha'e loo/ed at the bond .cheme. &re'alent in the &a.t and come u& 0ith 0hat it call. Ran a,reement 0ith em&loyee. to .tay for !" month.S. Under the a,reement an em&loyee de&o.it. 4.. J",000 0ith a ban/. )he ban/ mar/. a lien to Gi&ro. In ca.e an em&loyee i. unable to &ay, the ban/ ,i'e. a loan to the em&loyee. )he bond &eriod i. for !" month. $co'erin, three month. trainin, and !A month. 0or/*. %t the end of the &eriod the em&loyee ,et. the 4. J",000, a fi:ed de&o.it intere.t for the duration and an additional 4. 6,000 a. retention bonu.. )he com&any ha. been doin, thi. for the la.t three month. and already ha. !,000 &eo&le under thi. .cheme. )he re.ult: attrition amon, cam&u. recruit. i. do0n to =E &er cent. Say. Bi-ay Sahoo, 'ice=&re.ident $talent en,a,ement and de'elo&ment*, Gi&ro )echnolo,ie.: RGe do not 0ant em&loyee. to u.e Gi&ro a. a mere trainin, ,round. )hi. al.o hel&. u. ,et .eriou. em&loyee.. %l.o, our .cheme i. the fir.t of it. /ind T em&loyee. do not &ay u. directly and ,et the money bac/ 0ith intere.t and a bonu..S
    - 34 -

    Mind)ree (on.ultin,;. a&&roach differ. a. it doe. not a./ em&loyee. to &ay. In.tead it ma/e. them .i,n a bond for !A month. if it i. .&on.orin, a recruit;. hi,her education. Say. +unit Fetli, ,eneral mana,er $&eo&le function*, Mind)ree (on.ultin,: R)here i. re.entment a,ain.t &ayin, for bond..S In a mar/et 0here ne0 o&&ortunitie. are in abundance T the indu.try 0ill recruit about "",000=60,000 &eo&le thi. year T any /ind of bond could actually bac/fire. Entry=le'el em&loyee. lea'e for better &ay and 0ider e:&o.ure. Inno'ati'e retention .trate,ie. mi,ht &ay more than bond.. Gi&ro belie'e. it;. too early to come to ne,ati'e conclu.ion.. %. it loo/. at em&loyee bond. a. a lon,=term .trate,y, it remain. to be .een 0hether the time for bond. i. ri&e a,ain. ValueNote' India Out'our%in! 6ee$l( *O%tober ,F5 +,,< Vol II No) F<0 A!+ T"-e Mo!e+4 O5!e0 or o,$*o,rce0 E.timate. by the Indian Ban/.@ %..ociation .u,,e.t that there 0ill be about E",000 %)M. in India by A00B, u& from A0,000 in A00E. Ghile thi. i. dri'en by increa.ed cu.tomer need. for con'enience and 'alue added .er'ice., %)M. ha'e in fact meant a &rohibiti'e co.t for indi'idual ban/.. Gith increa.in, com&etition and &re..ure on re.ource. a..ociated 0ith &rime real e.tate rent., e.tabli.hment co.t., a..et mana,ement, maintenance and .er'icin, of %)M., &ri'ate a. 0ell a. &ublic .ector ban/. ha'e ta/en to out.ourcin, the mana,ement of %)M.. )he trend .tarted a. forei,n ban/. (itiban/ and Standard (hartered, and Indian ban/. IDBI, U)I and (or&oration Ban/ be,an u.in, third &artie. to mana,e %)M. = either &artially or com&letely. 4i,ht from .electin, and o0nin, the .ite and a..et. .uch a. %(, &o0er bac/=u&., .ur'eillance and 5=Sat .y.tem. to ca.h re&leni.hment and .0itch mana,ement, &ro'ider. are 0illin, to do all the hard 0or/ at a lo0er co.t, much to ban/.@ ad'anta,e. <ut.ourcin, the %)M function i. al.o enablin, ban/. to .tay at the forefront of ra&id technolo,ical ad'ance.. It i. al.o e:&ected to be the be,innin, of a trend to0ard. out.ourcin, of the entire ban/in, I) infra.tructure. )he third &arty &layer i. often al.o ca&able of &ro'idin, better and u&dated .ecurity .y.tem., an ad'anta,e for the hi,hly fraud=dri'en %)M indu.try.
    - 35 -

    Ser'ice &ro'ider. include I) ma-or. .uch a. )(S, Gi&ro and +olari., 0ho mana,e the technolo,y a.&ect., a. 0ell a. Euronet and India S0itch (om&any $IS(*, 0ho can &ro'ide end=to=end .olution.. +layer. .uch a. )ata Indicom and 4eliance are al.o offerin, telecom .olution. for %)M out.ourcin,. Ban/. ha'e al.o ta/en to reduce co.t. by &oolin, to,ether re.ource. and offerin, .hared %)M net0or/.. 3or in.tance, @(a.htree@, an alliance .tarted in A00 by fi'e &ublic .ector ban/. = Ban/ of India, Union Ban/ of India, Indian Ban/, United Ban/ of India and Syndicate Ban/, offer an %)M branch net0or/ -ointly, the mana,ement of 0hich ha. been out.ourced to IS(. If the alliance trend hold. out, the ,ro0th rate of %)M. i. li/ely to .lo0 do0n, but that may not im&act the demand for out.ourced %)M mana,ement .er'ice.. Ghen %)M. fir.t .tarted in India, many ban/. u.ed them a. their ma-or .tren,th and US+. But no0, control o'er %)M. i. no lon,er a &lu. &oint. %ll in all, the modern day cu.tomer i. more concerned 0ith the con'enience of %)M ban/in,. Gho run. the .ho0 may not matter to them.

    - 36 -

    RESEAR21 "ET1ODO3OGY
    Ghile underta/in, thi. &ro-ect it 0a. a really a 0onderful e:&erience a. 0e 0ere able to ,et a loo/ into cor&orate 0orld and one of it. mo.t tal/ed about i..ue. of 9uman 4e.ource Mana,ement .&ecifically, Em&loyee attrition and 4etention .trate,ie..

    - 37 -

    OB@E2TIVE

    OB@E2TIVE O4 T1E ST#DY


    )he follo0in, .ur'ey 0a. mainly done 0ith an ob-ecti'e to analy8e em&loyee;. &.ycholo,y in re.&ect to ING 56S6% B%N7 and o&&ortunitie. they ha'e in outer mar/et.

    S#B.OB@E2TIVE O4 T1E ST#DY


    4ea.on. to find 0hy ING 56S6% B%N7 em&loyee;. turno'er i. .o hi,h. )o recommend &o..ible .u,,e.tion. in order to ha'e a control on attrition.

    - 38 -

    S2OPE O4 T1E ST#DY


    )he follo0in, .tudy 0a. done to find hi,h attrition rate in ING 56S6% B%N7 4e,ional <ffice Ne0 Delhi. )he .tudy hel&. u. to /no0 the .tate of mind of em&loyee. in ING 56S6% B%N7 that 0hy they thin/ for lea'in, the -ob and 0hat can be done to reduce the increa.in, attrition rate.

    - 39 -

    ATTRITION
    %ttrition refer. to a method of achie'in, a reduction in &er.onnel by not refillin, &o.ition. that are 'acated throu,h re.i,nation, rea..i,nment, tran.fer, retirement or mean. other than layoff.. %ttrition i. tran.actional referrin, to it. de&endency on both en'ironmental 2 &er.onal 'ariable.. PRI"ARY REASONS 4OR E"P3OYEE T#RNOVER Benefit. Dac/ of &ro&er &eer .u&&ort Do0er .u&&ort Do0er .alary &ac/a,e De.. &romotional o&&ortunitie. Gor/ en'ironment De.. -ob o&&ortunitie. (om&en.ation. 2 ad'ancement a..ociated 0ith -ob Increa.ed .train &laced on em&loyee. Do not feel 'alued <r,ani8ation culture Emotional e:hau.tion Increa.ed .en.e of de&er.onali8ation

    - 40 -

    SEVEN 4#NDA"ENTA3 REASONS 4OR E"P3OYEE DISENGAGE"ENT


    There are 'e&en hidden rea'on'>. T1E @OB 6AS NOT 61AT T1E E"P3OYEE E7PE2TED )hi. i. the No. ! rea.on for turno'er in fir.t .i: month. 2 ha&&en. becau.e em&loyee. ha'e unreali.tic e:&ectation. 0hen they are hired, ha'e mi.conce&tion. about the 0or/er are .ometime. mi.lead durin, the inter'ie0 &roce... Em&loyee .hare the blame for not chec/in, out the -ob or 0or/&lace before .i,nin, on, but em&loyer. are al.o ,uilty, they are in too bi, hurry to hire or ea,er to .i,n on a ne0 recruit failin, to de.cribe the e'eryday -ob reality or ,i'e &re hire tour. of the 0or/&lace. %. a re.ult ne0 hire. feel betrayed or reali8e that they don;t fit the -ob. T1E "IS"AT21 BET6EEN @OB G PERSON )he main cul&rit i. the &re..ure to hire in a hurry. )ho.e 0ho hire often %..ume that becau.e a -ob i. at a lo0er le'el, anyone can do it, for,ettin, e:cellence can be found in all -ob. 2 that i. 0orth ta/in, time to a..e.. Gho ha. ri,ht .tuff to .ucceed, in e'ery -ob in an or,ani8ation. %nother contributin, i..ue i. that mana,er. a..i,n 2 &romote 0or/er. into 0ron, -ob., erroneou.ly thin/in, that anyone can be trained to do anythin, or o'erloo/in, the fact that -ob .ati.faction may be more im&ortant to an em&loyee than ,ettin, &romotion. TOO 3ITT3E 2OA21ING OR 4EEDBA2K By a trainin, ma,a8ine it 0a. found that mana,er feedbac/ and coachin, ./ill. 0ere con.i.tently rated a. mediocre. )hi. i. ma-or rea.on ,en=:er. lea'e in there fir.t year of the -ob. Gay too mana,er;. ./ill &ractice. once a year coachin, at the annual &erformance a&&rai.al. TOO 4E6 ADVAN2E"ENT AND GRO6T1 OPPORT#NITY
    - 41 -

    )hi. i. the number one fru.tration of youn,er to& &erformer.. Ghen em&loyee. rated today;. mana,er on leader.hi& com&etencie. the ability to de'elo& direct re&ort ran/. near the bottom. B"V of em&loyee. .ay career ,ro0th i. the /ey re0ard only E"V &ercent .ay there or,ani8ation &ro'ide it. 4EE3ING DEVA3#ED AND #NRE2OGNIHED. )hi. rea.on for lea'in, encom&a..e. a 0orld of .in.. )he.e include not bein, &aid fairly not recei'in, a .im&le than/ you for -ob 0ell done, bein, treated 0ith di.re.&ect, bein, i,nored, bein, &ut do0n, in.tead of 'alued for bein, different not ,ettin, the ri,ht tool. and re.ource. to do the -ob and ha'in, to 0or/ in an unacce&table en'ironment. STRESS 4RO" OVER6ORK AND 6ORK 3I4E I"BA3AN2E. % family and 0or/ .ur'ey re&orted that J0" of all 0or/er. don;t thin/ that there i. healthy balance bet0een their 0or/ life and &rofe..ional li'e.. % re.earch .tudy found that 6!V of 0or/er. are 0illin, to .acrifice &ay in e:chan,e for more &er.onal and family time. 3OSS O4 TR#ST AND 2ON4IDEN2E IN SENIOR 3EADERS. It 0a. found that com&anie. 0ith hi,h tru.t le'el. out&erform. 0ith com&any 0ith lo0 tru.t le'el. by !B6V and le.. than half of the 0or/er. tru.t their .enior leader.. Becau.e their .enior e:ecuti'e. are .elf intere.ted .hort term focu.ed e,o dri'en, and ,reedy. But 0hen em&loyee. there .enior leader are committed to their 0ell bein, they tend to return that commitment by .tayin, and becomin, more en,a,ed and &roducti'e.

    SO"E OT1ER REASONS 4OR E"P3OYEE T#RNOVER


    T1ere are $5o -a"! rea*o!* %or e-/lo+ee $,r!o(er:- 42 -

    B) Iualit( of 'ele%tion '('tem +) Iualit( of leader'hip SE3E2TION SYSTE" I#A3ITY No .in,le .election .y.tem i. ri,ht for all or,ani8ation.. Before ma/in, chan,e., <r,ani8ation. mu.t determine their current le'el. of .o&hi.tication and u.e of be.t +ractice.. )here are " &ractice. a..ociated 0ith selection systems: BE1AVIO#RA3 BASED INTERVIE6S %./in, candidate. to &ro'ide .&ecific e:am&le. of &a.t beha'ior. that illu.trate their ability to demon.trate reCuired -ob /no0led,e, ./ill. 2 abilitie.. TRAINING G E7PERIEN2E EVA3#ATION +ro'idin, a chec/li.t or other tool that mea.ure. candidate.; e:&erience in .&ecific ./ill. or .ituation..

    ABI3ITY TESTS )e.tin, candidate;. mental, clerical, mechanical, &hy.ical or technical ca&ailitie..

    BIOGRAP1I2A3 DATA 4eCue.tin, information about candidate.; life e:&erience. $e.,. familie., hobbie., attitude.* that correlate 0ith -ob &erformance. "OTIVATIONA3 4IT INVENTORIES Mea.urin, candidate.; &reference. for -ob, the or,ani8ation, and location Cualitie.. 3EADERS1IP I#A3ITY T5o %ac$or* 0r"("! re$e!$"o! are46 B) Wuality of relation.hi& a &er.on ha. 0ith hi. .u&er'i.or or mana,er
    - 43 -

    +)

    %mount of meanin,ful 0or/

    )here are many thin,. that an or,ani8ation can do to im&ro'e the.e factor.. Some .olution. directly im&ro'e le !e"s#i$ s%ills, 0hile other. im$"o&e systems ' t#e (o"% en&i"onment)

    - 44 -

    TYPES O4 DATA
    T1e Re*earc1 5a* co!0,c$e0 "! $5o *$a e*: I#A3ITATIVE I#ANTITATIVE I#A3ITATIVE RESEAR21: Here a! e%%or$ 5a* -a0e4 )o under.tand the &roduct 2 the information 0hich hel&ed to frame the Cue.tionnaire. I#ANTITATIVE RESEAR21: % Cue.tionnaire 0a. &re&ared for thi. &ur&o.e, /ee&in, in mind the im&ortant factor. 0hich 0ould enable to meet the ob-ecti'e. of the &ro-ect. Databa.e of em&loyee. 0a. &re&ared 0ith the hel& of 0hich tho.e em&loyee. 0ere a&&roached 0ho had left the -ob 2 from them the reCuired information 0a. ,athered. T1e Re*earc1 0e$a"l* 5ere *,--ar"#e0 a* %ollo5*4 T(pe of re'ear%h Sample 'iJe Sour%e of Data Primar( Data Se%ondar( Data PRI"ARY DATA: > DES(4I+)I5E 4ESE%4(9 > "0 WU<)% S%M+DING > WUES)I<NN%I4E : IN)E4NE), NEGS+%+E4S >

    Samplin! te%hni ue >

    - 45 -

    +rimary

    data

    i.

    that

    /ind

    of

    data

    0hich

    i.

    collected

    by

    in'e.ti,ator

    him.elf for &ur&o.e of .&ecific .tudy. )he data .uch collected i. ori,inal in character. )he ad'anta,e of thi. method of collection i. authentic. % .et of Cue.tion. 0ere &ut to,ether in the form of Cue.tionnaire. SE2ONDARY DATA: Ghen an in'e.ti,ator u.e. the data it ha. been already collected by other.. )he .econdary data could be collected from Ne0.&a&er., Fournal., 4e&ort. 2 'ariou. &ublication.. )he ad'anta,e. of .econdary data can be in term. of money 2 time .&ent. )he re.earcher of the re&ort al.o did the .ame and collected .econdary data from 'ariou. internet .ite. li/e GOOG3E)2O", YA1OO)2O". )he re.earcher of the re&ort al.o 'i.ited 'ariou. librarie. for collection of the introduction &art.

    3I"ITATIONS
    - 46 -

    Unreliable re.&on.e from the or,ani8ation at time. due to lac/ of time. Non=a'ailability of concerned &er.on at the time of .ur'ey. )ime and other factor. 0hich are beyond the human limitation. ha'e al.o a bearin, on the .tudy.

    - 47 -

    4INDINGS OR ANA3YSIS
    I ha'e conducted a .ur'ey to /no0 0hat are the rea.on. of increa.in, attrition rate in ING 56S6% B%N7. )he .ur'ey &roce.. in'ol'ed t0o &ha.e.: )he re.&on.e that i. ,enerated durin, thi. e:erci.e i. con'erted in the form of &ercenta,e. to ha'e a com&arati'e outloo/, a. the number. it.elf cannot e:&lain the true &icture. )he.e &ercenta,e. are then re&re.ented throu,h the .im&le tool. li/e bar ,ra&h., &ie chart., etc. $.ee a&&endi:*.

    - 48 -

    APPENDI7
    PRI"ARY REASON 4OR 3EAVING T1E ORGANIHATION
    Primar( Rea'on 4or 3ea&in! No) Of Emplo(ee' Benefit. Better -ob o&&ortunity (ommute (onflict 0ith other em&loyee. (onflict 0ith mana,er 3amily rea.on. Fob e:&ectation. Not challen,in, +ay +er.onal rea.on. 4elocationHmo'e Gor/in, condition
    30 25 20 15 10 5 0 No. Of Employees Conflict with other employees Conflict with mana er !amily reasons

    !0 !E 0 0 A E A0 !0 0 0 0 !0
    Benefits

    Better job opportunity Commute

    - 49 -

    D#RATION 4RO" 61I21 E"P3OYEE IS T1INKING O4 3EAVING

    Time duration <ne Month <r De.. <ne )o " Month. More )han " Month.

    No) of emplo(ee' A6 E0 E

    "0 35 30 25 20 15 10 5 0 No. of employees #ore %han 5 #onths One #onth Or $ess One %o 5 #onths

    INTERPRETATION )hi. .ho0. that mo.t of em&loyee. are thin/in, of lea'in, the or,ani8ation from ! to " month.)

    - 50 -

    SATIS4A2TION O4 E"P3OYEES TO6ARDS 2O"PANY


    Sati'fa%tion le&el E:tremely Di..ati.fied 5ery Di..ati.fied Neither Sati.fied Nor Di..ati.fied 5ery Sati.fied E:tremely Sati.fied No) of emplo(ee' A0 A0 E6 !0 E

    50 "0 30 20 10 0 No. of employees

    E&tremely 'issatisfie( )ery 'issatisfie( Neither *atisfie( Nor 'issatisfie( )ery *atisfie(

    E&tremely *atisfie(

    INTERPRETATION )hi. .ho0. that em&loyee. are neither .ati.fied nor di..ati.fied 0ith the com&any.

    - 51 -

    6ORKING 2ONDITION O4 E"P3OYEES TO6ARDS 2O"PANY


    No) Of 6or$in! 2ondition' Much more &o.iti'e than ne,ati'e More &o.iti'e than ne,ati'e More ne,ati'e than &o.iti'e Much more ne,ati'e than &o.iti'e Emplo(ee' B "0 0 !A

    50 "0 30 20 10 0 No. Of Em ployees

    #uch m ore positi+e than ne ati+e #ore positi+e than ne ati+e #ore ne ati+e than positi+e #uch m ore ne ati+e than positi+e

    INTERPRETATION )hi. .ho0. that 0or/in, condition of em&loyee. i. much more &o.iti'e than ne,ati'e.

    - 52 -

    4A2TORS RESPONSIB3E 4OR NEGATIVE E7PERIEN2E O4 E"P3OYEES


    4a%tor' 4or Ne!ati&e EKperien%e My +erformance E'aluation %nd <utcome My 4ole, 4e.&on.ibility %ndH<r )itle Fob )rainin, My Bo.. My (o=Gor/er. My (om&en.ation (han,e In (om&en.ation +ac/a,e (om&any Sa'in,. +lan Medical Benefit. %nd In.urance 4elocation 5acation )ime Other No) Of Emplo(ee' 0 !6 !A A 0 AE !6 0 !E !6 0 0

    25 20 15 10 5 0 No. Of Employees
    - 53 -

    #y ,erformance E+aluation -n( Outcome #y .ole/ .esponsibility -n(0Or %itle 1ob %rainin

    #y Boss

    #y Co23or4ers

    INTERPRETATION )hi. .ho0. that com&en.ation i. a ma-or factor for ne,ati'e e:&erience of em&loyee..

    - 54 -

    43E7IBI3ITY O4 2O"PANY TO6ARDS 4A"I3Y RESPONSIBI3ITIES

    4leKibilit( of %ompan( 5ery Infle:ible Some0hat Infle:ible Neither Some0hat Infle:ible 5ery fle:ible

    No) of emplo(ee' A0 !6 A0 E0 E

    "0 35 30 25 20 15 10 5 0 No. of employees

    )ery 5nfle&ible

    *om ew hat 5nfle&ible

    Neither

    *om ew hat 5nfle&ible

    )ery fle&ible

    INTERPRETATION )hi. .ho0. that com&any i. .ome0hat infle:ible to0ard. family re.&on.ibilitie..

    - 55 -

    2AREER ADVAN2E"ENT OPPORT#NITIES


    2areer ad&an%ement opportunitie' Stron,ly Di.a,ree Some0hat Di.a,ree Neither %,ree or Di.a,ree Some0hat Di.a,ree Stron,ly %,ree No) of emplo(ee' 6 A0 "0 A0 E

    50 "5 "0 35 30 25 20 15 10 5 0

    *tron ly 'isa ree *omewhat 'isa ree Neither - ree or 'isa ree *omewhat 'isa ree *tron ly - ree No. of employees

    INTERPRETATION )hi. .ho0. that career ad'ancement o&&ortunitie. are neither 'ery ,ood nor 'ery bad.

    - 56 -

    SATIS4A2TION 3EVE3 TO6ARDS POSITION AT T1E 2O"PANY


    Sati'fa%tion le&el 5ery di..ati.fied Some0hat Di..ati.fied Not .ati.fied or Di..ati.fied Some0hat .ati.fied 5ery .ati.fied No) of emplo(ee' !6 A AE AE E

    35 30 25 20 15 10 5 0 No. of employees

    )ery (issatisfie( *omewhat 'issatisfie( Not satisfie( or 'issatisfie( *omewhat satisfie( )ery satisfie(

    INTERPRETATION )hi. .ho0. that em&loyee. are .ome0hat di..ati.fied 0ith their &o.ition in the com&any.

    - 57 -

    RO3E P3AYED BY PAY IN T#RNOVER

    Per%enta!e of pa( A0=E0V E0=60V 60=B0V B0=!00V

    No) of emplo(ee' !6 !E 60 !0

    60 50 "0 30 20 10 0
    INTERPRETATION )hi. .ho0. that &ay &lay. 60=B0V role in em&loyee;. turno'er.

    202"07 "02607 602807 8021007

    No. of employees

    RO3E P3AYED BY 6ORKING 2ONDITIONS IN T#RNOVER


    - 58 -

    6or$in! %ondition' 6e. No

    No) of emplo(ee' 6A B

    3or4in Con(itions of Em ployees

    38% 62%

    Yes No

    INTERPRETATION )hi. .ho0. that 0or/in, condition. of em&loyee. &lay. a ma-or role in em&loyee turno'er.

    - 59 -

    RATE O4 "ORA3E IN 2O"PANY

    Rate of morale Do0 5ery lo0 9i,h 5ery hi,h

    No) of 8or$er' EE AE A0 !A

    "5 "0 35 30 25 20 15 10 5 0

    $ow )ery low 9i h )ery hi h

    No. of wor4ers

    INTERPRETATION )hi. .ho0. that rate of morale i. lo0 in com&any.

    - 60 -

    RETENTION PROGRA"S TAKEN BY 2O"PANY

    En%oura!ement to 'ta( 6e. No

    No) of 8or$er' A0 B0

    .etentation pro rams ta4en by company


    20% Yes No 80%

    INTERPRETATION Nothin, ha. been done to &re'ent em&loyee turno'er.

    - 61 -

    S#GGESTIONS G RE2O""ENDATIONS
    RED#2ING T#RNOVER
    )urno'er rate mea.ure. the &ercenta,e of em&loyee. that lea'e the or,ani8ation in a ,i'en time &eriod. )urno'er can include re.i,nation., termination., retirement., tran.fer., and &romotion.. %,ent turno'er rate i. al.o referred to a. attrition, retention rate or a,ent churn.

    T,r!o(er *1o,l0 &e $rac.e0 "! or0er $o4


    (ontrol co.t. 4ai.e em&loyee morale

    2OST I"PA2TS O4 T#RNOVER


    T,r!o(er "!crea*e* co*$* "! a (ar"e$+ o% 5a+* "!cl,0"! 4

    recruitin, and hirin, tem&orary .taffin, lo0er &roducti'ity of ne0 a,ent. o'ertime co.t. for current .taff 0hile the -ob i. 'acant unem&loyment in.urance &remium.

    Su&er'i.or. confront a ma-or challen,e 0ith turno'er and co.t control. )hi. challen,e include. balancin, the co.t of ne0 hire..

    - 62 -

    E"P3OYEE "ORA3E
    3inally, turno'er i. a ,ood indicator of em&loyee morale. %lthou,h em&loyee morale i. difficult to Cuantify, it ha. con.eCuence. &roducti'ity, and o'erall &erformance.

    AREAS TO 2ONSIDER 4OR RED#2ING T#RNOVER RATE


    Fac$or* $1a$ ca! "-/ac$ $,r!o(er are a* %ollo5*4
    !. Re%ruitment5 '%reenin!5 and orientation pro!ram' 4ecruitin, techniCue. that .im&ly brin, in @0arm bodie.@ 0ill rai.e turno'er, 0hile tar,eted recruitin, 0ill re.ult in hi,her retention le'el.. Screenin, &roce..e. .hould identify &eo&le that are a ,ood match for the -ob reCuirement.. 3inally, com&any orientation. that &ro'ide a &o.iti'e introduction to the com&any and an under.tandin, of com&any 'alue. e.tabli.h a ,ood relation.hi& 0ith em&loyee.. +) Trainin! and 'upport of ne8 !raduate' +oor trainin, &ro,ram. rai.e turno'er 0hen a,ent. don@t ha'e the tool. to do their -ob Gell. . Iualit( of dire%t 'uper&i'ion Good .u&er'i.ion en.ure. im&ro'e their ./ill., a. 0ell a. .u&&ort 0ith challen,in, -ob )a./.. If mana,ement i. bia.ed, uncommunicati'e, turno'er 0ill increa.e. E. 2ompetiti&ene'' of pa( '%ale Ga,e. .hould be com&etiti'e 0ith other -ob o&&ortunitie. 0ill be lo.t to better= &ayin, -ob.. ". Other emplo(ment opportunitie' in the area <ther -ob o&&ortunitie. 0ith better ad'ancement o&&ortunitie., challen,e., and ./ill de'elo&ment may cau.e turno'er.

    - 63 -

    6. 3e&el of Eob 'ati'fa%tion and re8ard' Sale. re,ularly deal 0ith a .tre..ful -ob. Burnout le'el. are hi,h and can be a,,ra'ated if there are fe0 in.tance. of -ob reco,nition and re0ard for e:cellent &erformance. %,ent. al.o can be un.ati.fied 0ith their -ob 0hen they do not ha'e the tool. and 0or/ &roce..e. to do a ,ood -ob for their cu.tomer.. J. Attra%ti&e ad&an%ement opportunitie' 8ithin the %ompan( %d'ancement moti'ate em&loyee. to .tay 0ith a com&any. B. #nplanned %han!e +oorly=mana,ed chan,e can lead to attrition.

    21e! *1o,l0 $,r!o(er &e a00re**e03


    So ho0 do you /no0 0hen turno'er i. .e'ere enou,h to 0arrant .&ecial focu.U In addition to em&loyee moraleH&roducti'ity, there are .ome other factor. to con.ider. )he lo.. of hi,hly ./illed em&loyee. i. one con.ideration. )he attrition of fir.t=rate em&loyee. can be an irre&laceable lo.. for com&anie.. In addition, con.tant turno'er and recruitin, can create a ne,ati'e im&re..ion about the com&any. 3inally, turno'er 0arrant. e:tra focu. if a clear &attern be,in. to a&&ear. 3or e:am&le, if there ha. been "0V turno'er in the &a.t year due to re.i,nation., chance. are that .ome fundamental &roblem. e:i.t at the com&any and need to be addre..ed. If em&loyee. are al0ay. lea'in, becau.e of ne,ati'e circum.tance., thi. i. a red fla, that .i,nificant &roblem. e:i.t 0ithin the or,ani8ation and that mana,ement &ractice., trainin,, and 94 &olicie. need to be re'i.ited.

    Ho5 ca! $,r!o(er &e re0,ce03


    9i,h turno'er i. a ma-or &roblem to identify cau.e. of attrition. 7no0 0hy turno'er i. ha&&enin,. It i. im&ortant to /no0 the e:act rea.on. 0hy a,ent. lea'e in order to:
    - 64 -

    identify @controllable@ rea.on. 0hy a,ent. lea'e $to focu. attention on reducin, the cau.e. of the.e de&arture.*

    accurately &lan ahead for recruitin,, hirin,, and trainin, re&lacement. at the .ame &ace a. you e:&ect a,ent. to lea'e

    Some rea.on. for a,ent turno'er are beyond the control of mana,ement. )he.e de&arture. 0ill occur re,ardle.. of ho0 attracti'e mana,ement ma/e. it for a,ent. to .tay.

    LNon.%ontrollableL turno'er include.:


    retirement. &romotion. tran.fer. to other de&artment. 0ithin the com&any illne..

    @2ontrollableL turno'er include. re.i,nation. due to:


    -ob .tre.. lo0 &ay lac/ of ad'ancement &o..ibilitie. lac/ of .u&&ort and re0ard on the -ob

    A%tion 'tep' (ou %an ta$e


    !. E'aluate the B area. identified in the .ection ?%rea. to con.ider for reducin, turno'er rate? to determine 0here the ,reate.t contribution to a,ent turno'er may be ta/in, &lace. A. (onduct e:it inter'ie0. to identify 0hy they are lea'in,. . (onduct focu. ,rou&. 0ith mana,er., .u&er'i.or. and em&loyee. to brain.torm the root cau.e of em&loyee turno'er.
    - 65 -

    E. U.e the re.ult. of the data from .te&. ! throu,h

    to &rioriti8e the root cau.e. for

    em&loyee turno'er. De'elo& action &lan. to addre.. the.e root cau.e.. ". Im&lement the.e action &lan. and mea.ure the re.ult..

    PRI"ARY REASONS 4OR E"P3OYEE T#RNOVER Benefit. Dac/ of &ro&er &eer .u&&ort Do0er .u&&ort Do0er .alary &ac/a,e De.. &romotional o&&ortunitie. Gor/ en'ironment De.. -ob o&&ortunitie. (om&en.ation. 2 ad'ancement a..ociated 0ith -ob Increa.ed .train &laced on em&loyee. Do not feel 'alued <r,ani8ation culture Emotional e:hau.tion Increa.ed .en.e of de&er.onali8ation

    SEVEN 4#NDA"ENTA3 REASONS 4OR E"P3OYEE DISENGAGE"ENT


    )here are .e'en hidden rea.on.:= T1E @OB 6AS NOT 61AT T1E E"P3OYEE E7PE2TED

    - 66 -

    )hi. i. the No. ! rea.on for turno'er in fir.t .i: month. 2 ha&&en.

    becau.e em&loyee.

    ha'e unreali.tic e:&ectation. 0hen they are hired, ha'e mi.conce&tion. about the 0or/er are .ometime. mi.lead durin, the inter'ie0 &roce... Em&loyee .hare the blame for not chec/in, out the -ob or 0or/&lace before .i,nin, on, but em&loyer. are al.o ,uilty, they are in too bi, hurry to hire or ea,er to .i,n on a ne0 recruit failin, to de.cribe the e'eryday -ob reality or ,i'e &re hire tour. of the 0or/&lace. %. a re.ult ne0 hire. feel betrayed or reali8e that they don;t fit the -ob. T1E "IS"AT21 BET6EEN @OB G PERSON )he main cul&rit i. the &re..ure to hire in a hurry. )ho.e 0ho hire often %..ume that becau.e a -ob i. at a lo0er le'el, anyone can do it, for,ettin, e:cellence can be found in all -ob. 2 that i. 0orth ta/in, time to a..e.. Gho ha. ri,ht .tuff to .ucceed, in e'ery -ob in an or,ani8ation. %nother contributin, i..ue i. that mana,er. a..i,n 2 &romote 0or/er. into 0ron, -ob., erroneou.ly thin/in, that anyone can be trained to do anythin, or o'erloo/in, the fact that -ob .ati.faction may be more im&ortant to an em&loyee than ,ettin, &romotion.

    - 67 -

    TOO 3ITT3E 2OA21ING OR 4EEDBA2K By a trainin, ma,a8ine it 0a. found that mana,er feedbac/ and coachin, ./ill. 0ere con.i.tently rated a. mediocre. )hi. i. ma-or rea.on ,en=:er. lea'e in there fir.t year of the -ob. Gay too mana,er;. ./ill &ractice. once a year coachin, at the annual &erformance a&&rai.al. TOO 4E6 ADVAN2E"ENT AND GRO6T1 OPPORT#NITY )hi. i. the number one fru.tration of youn,er to& &erformer.. Ghen em&loyee. rated today;. mana,er on leader.hi& com&etencie. the ability to de'elo& direct re&ort ran/. near the bottom. B"V of em&loyee. .ay career ,ro0th i. the /ey re0ard only E"V &ercent .ay there or,ani8ation &ro'ide. it. 4EE3ING DEVA3#ED AND #NRE2OGNIHED. )hi. rea.on for lea'in, encom&a..e. a 0orld of .in.. )he.e include not bein, &aid fairly not recei'in, a .im&le than/ you for -ob 0ell done, bein, treated 0ith di.re.&ect, bein, i,nored, bein, &ut do0n, in.tead of 'alued for bein, different not ,ettin, the ri,ht tool. and re.ource. to do the -ob and ha'in, to 0or/ in an unacce&table en'ironment. STRESS 4RO" OVER6ORK AND 6ORK 3I4E I"BA3AN2E. % family and 0or/ .ur'ey re&orted that J0" of all 0or/er. don;t thin/ that there i. healthy balance bet0een their 0or/ life and &rofe..ional li'e.. % re.earch .tudy found that 6!V of 0or/er. are 0illin, to .acrifice &ay in e:chan,e for more &er.onal and family time. 3OSS O4 TR#ST AND 2ON4IDEN2E IN SENIOR 3EADERS.
    - 68 -

    It 0a. found that com&anie. 0ith hi,h tru.t le'el. out&erform. 0ith com&any 0ith lo0 tru.t le'el. by !B6V and le.. than half of the 0or/er. tru.t there .enior leader.. Becau.e their .enior e:ecuti'e. are .elf intere.ted .hort term focu.ed e,o dri'en, and ,reedy. But 0hen em&loyee. there .enior leader are committed to their 0ell bein, they tend to return that commitment by .tayin, and becomin, more en,a,ed and &roducti'e.

    - 69 -

    SO"E OT1ER REASONS 4OR E"P3OYEE T#RNOVER


    T1ere are $5o -a"! rea*o!* %or e-/lo+ee $,r!o(er:B + Iualit( of 'ele%tion '('tem Iualit( of leader'hip

    SE3E2TION SYSTE" I#A3ITY No .in,le .election .y.tem i. ri,ht for all or,ani8ation.. Before ma/in, chan,e., <r,ani8ation. mu.t determine their current le'el. of .o&hi.tication and u.e of be.t +ractice.. )here are " &ractice. a..ociated 0ith selection systems: BE1AVIO#RA3 BASED INTERVIE6S %./in, candidate. to &ro'ide .&ecific e:am&le. of &a.t beha'ior. that illu.trate their ability to demon.trate reCuired -ob /no0led,e, ./ill. 2 abilitie.. TRAINING G E7PERIEN2E EVA3#ATION +ro'idin, a chec/li.t or other tool that mea.ure. candidate.; e:&erience in .&ecific ./ill. or .ituation.. ABI3ITY TESTS )e.tin, candidate;. mental, clerical, mechanical, &hy.ical or technical ca&abilitie.. BIOGRAP1I2A3 DATA 4eCue.tin, information about candidate.; life e:&erience. $e.,. familie., hobbie., attitude.* that correlate 0ith -ob &erformance. "OTIVATIONA3 4IT INVENTORIES Mea.urin, candidate.; &reference. for -ob, the or,ani8ation, and location Cualitie..
    - 70 -

    3EADERS1IP I#A3ITY

    T5o %ac$or* 0r"("! re$e!$"o! are46


    ! A Wuality of relation.hi& a &er.on ha. 0ith hi. .u&er'i.or or mana,er %mount of meanin,ful 0or/

    )here are many thin,. that an or,ani8ation can do to im&ro'e the.e factor.. Some .olution. directly im&ro'e le !e"s#i$ s%ills, 0hile other. im$"o&e systems ' t#e (o"% en&i"onment)

    - 71 -

    ATTRITION AREA The Eob 8a' not %learl( eKplained to them

    SO3#TIONS % reali.tic -ob &re'ie0 $4F+* tool ha. been &ro'en to e.tabli.h hone.t E:&ectation. about the -ob. 4F+ can reduce %ttrition bet0een "=!"V.

    Poor prior 8or$ hi'tor( that lead' to Poor future 8or$

    % bio,ra&hical data a..e..ment re'ie0 &re'iou. 0or/ hi.tory to 9el& eliminate tho.e candidate. 0ith &oor &rior 0or/ hi.tory.

    Do not ha&e ri!ht %o!niti&e abilit( for Eob

    % mental alertne.. te.t can mea.ure the -ob candidate. ability to thin/ 2 .ol'e &roblem..

    2annot mana!e the interper'onal re uirement' for Eob

    % beha'ioral &hone inter'ie0, .imulation, role &lay, or in=&er.on inter'ie0 .hould hel& you e'aluate the -ob candidate a,ain.t thi. criteria.

    Ne8 hire Eob preferen%e' do not mat%h re uired Eob preferen%e'

    % -ob related &er.onality a..e..ment can mea.ure -ob fit 2 -ob &reference..

    - 72 -

    6hat are the be't 8a(' to %ombat turno&er= Our model of turno&er 8ould 'u!!e't there are 'e&en maEor area' of inter&ention.
    T1e+ are4

    Early Inter'ention. S/ill Inter'ention. Deader.hi& Inter'ention. (ommunication Inter'ention. 4e0ardHreco,nition Inter'ention. Fob Enrichment Inter'ention. Selection Inter'ention.

    I 0ant to touch on each area briefly and offer .ome &ractical ad'ice and de.cribe .ome tried and &ro'en .trate,ie..

    B) Earl( inter&ention' )he fact that lar,e number. of em&loyee. turno'er in the fir.t .i: month. of em&loyment .u,,e.t. that thi. i. a critical time for hel&in, &eo&le ad-u.t to ne0 role.. Mana,in, em&loyee.; e:&ectation. .hould actually .tart before em&loyment. %. 0e de.cribe in our earlier article, reali.tic -ob &re'ie0. can hel& en.ure that em&loyee. 0al/ into their -ob. 0ith their eye. 0ide o&en. <rientation &ro,ram. .hould not be a one=day e'ent> they .hould .&an the fir.t three month. of em&loyment. % ,ood orientation &ro,ram hel&. &re'ent mi.under.tandin,., and ,radually introduce. the em&loyee into the or,ani8ation. By &ro'idin, -u.t=in=time information and trainin,, rather than a one=day ?core dum&? of information, your trainin, effort. 0ill yield much better re.ult.. %fter detailin, the or,ani8ational chart, ta/e time to clearly e:&lain the im&ortance of the
    - 73 -

    em&loyee;. -ob. Mo.t im&ortantly, e.tabli.h a .u&&ort .y.tem for the ne0 em&loyee. % ,ood &ractice i. to .et u& a ?buddy? .y.tem for ne0 em&loyee.. % ?buddy? i. a .ea.oned em&loyee 0ho 'olunteer. to ?loo/ out for the ne0 em&loyee?, ma/in, introduction., &ro'idin, ad'ice, and hel&in, a'oid early &itfall.. +) S$ill inter&ention' 7ee& em&loyee. moti'ated and committed by enthu.ia.tically offerin, both trainin, and de'elo&ment o&&ortunitie.. Smart com&anie. /no0 the im&ortance of &er.onal de'elo&ment in em&loyee retention. In fact, the to&=rated com&anie. to 0or/ for ha'e .e'eral Cualitie. in common. )hey .&end con.iderable time in trainin, their &eo&le, they ha'e lo0 turno'er rate., and they ha'e im&re..i'e number. of a&&licant. &er -ob o&enin,. C) 3eader'hip inter&ention' Better Bo..e. mean lo0er turno'er. E.tabli.hin, &erformance e:&ectation., &ro'idin, coachin, and &o.iti'e feedbac/, and interactin, in a fair and con.iderate manner are all thin,. that ,ood leader. do to hel& ne0 em&loyee. be .ucce..ful and recei'e en-oyment from their -ob.. )o im&act turno'er, ma/e .ure that .u&er'i.ory &romotion and trainin, &ro,ram. ha'e inter&er.onal ./ill. a. &art of their focu.. Mea.ure em&loyee &erce&tion. of leader.hi& beha'ior. and incor&orate beha'ioral e:&ectation. into leader.; &erformance mana,ement e:&ectation..

    A) 2ommuni%ation inter&ention' % ,ood ca.e .tudy of ho0 focu.in, on communication. can hel& im&ro'e em&loyee retention i. Ne0 6or/ (ity;. )a'ern on the Green. In a recent article $.ource: 4a,an (ommunication.*, the trainin, director for the re.taurant offered numerou. .u,,e.tion. for o&enin, u& communication., includin,:

    Hol0 o/e! %or,-*. Set u& monthly or at lea.t Cuarterly forum. in 0hich em&loyee. can tal/ 0ith deci.ion=ma/er. on i..ue. im&ortant to them.

    I-/ro(e Cre0"&"l"$+. Do 0hat you .ay you are ,oin, to do or offer a ,ood rea.on 0hy you can@t;.
    - 74 -

    F"!0 5a+* $o co--,!"ca$e. Eliminate fear of re&ri.al. Share im&ortant information. )reat em&loyee. a. &artner.. (ommunicate number., XbothY ,ood and bad. Don;t hoard data on .ucce..e. that mi,ht ma/e 0or/er. feel a .en.e of accom&li.hment or on &roblem. that mi,ht encoura,e them to ,o the e:tra mile.

    <) Re8ard'?re%o!nition inter&ention' Money can tal/ 'olume., but the creati'e u.e of money i. /ey to retention. 5ariou. /ind. of contin,ent bonu. .trate,ie. can be u.ed to hel& 0ith retention. Deferred bonu.e. are &aid out incrementally 0ith a .i,nificant bac/=end &ayoff for a combination of &erformance doe.n;t addre.. lon, term retention. +erformance bonu.e. can hel& an em&loyee reach hi,h le'el. of income &ro'idin, they can con.i.tently demon.trate .u&erior le'el. of &erformance. )hi. ty&e of bonu. can be 'ery 'alue of .u&erior &erformance. % third o&tion be.ide. the u.e of bonu.e. i. to re,ularly ma/e .alary ad-u.tment. for your .tar &erformer. or indi'idual. 0ith /ey ./ill .et. .o that they are not tem&ted to ,o el.e0here for bi,,er &aychec/.. <b'iou.ly, thi. .trate,y can only be u.ed for a .mall &ercenta,e of /ey &layer.. If you can;t afford to &ay more, or to offer contin,ent &ay, don;t for,et the 'alue of non=monetary or .ymbolic re0ard. li/e time=off, a0ard., and other reco,nition &ro,ram.. -) @ob enri%hment Increa.in, the -ob .ati.faction of hi,h turno'er -ob. can reduce turno'er. 3or indi'idual. 0ho ha'e a need for ,ro0th, the follo0in, -ob de.i,n .trate,ie. are a..ociated 0ith increa.ed -ob .ati.faction:
    - 75 -

    and

    retention.

    )hi. ty&e of bonu. .y.tem can hel& ,uarantee .er'ice for a finite number of year. but

    effecti'e

    if &erformance metric. are readily a'ailable and additional co.t. are con.i.tent 0ith the

    Increa.e the 'ariety of ta./. &erformed +ro'ide ,reater o0ner.hi& and deci.ion=ma/in, on ho0 the -ob i. &erformed and hold the -ob holder accountable for Cuality of out&ut.

    %dd more .i,nificant re.&on.ibilitie. Im&ro'e the accuracy and Cuality of feedbac/ on &erformance

    F)Sele%tion Im&ro'ed .election may be the mo.t &o0erful 0ea&on a,ain.t turno'er.. Impro&in! inter&ie8in! pro%edure' redu%ed turno&er rate' on a&era!e a 8hoppin! A+D) Selection i. a &re'enti'e techniCue for reducin, turno'er. By im&ro'in, the initial fit bet0een an indi'idual and a -ob, you can ha'e a hu,e im&act on turno'er. RED#2ING T#RNOVER> T1E E44E2TS O4 2O""ON3Y.#SED "ET1ODS Senior 3e&el "iddle "ana!er' 4ront 3ine Emplo(ee' Better com&en.ation 6JV Better com&en.ation 6!V More careful "JV 2 benefit. Stoc/ o&tion. More careful .election in hirin, +rofit=.harin, 4etention bonu. "AV EJV AJV A6V 2 benefit. More careful .election in hirin, )uition reimbur.ement Stoc/ o&tion. %do&tion of ca.ual dre.. code "EV E!V AV !V .election in hirin, Better com&en.ation 2 benefit. )uition reimbur.ement Im&ro'ed trainin, &ro,ram. Better orientation &ro,ram. "0V EJV E"V #V

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    #'in! the 6heel to Impro&e Emplo(ee Retention


    KEiL' Emplo(ee Retention Strate!( i' ba'ed upon t8o primar( belief'>
    $!* It i. difficult for em&loyer. to retain ,ood em&loyee. if they don@t ha'e a &roce.. to hire the ri,ht &eo&le in the fir.t &lace. $A* 4etention &roce..e. mu.t directly .u&&ort the rea.on. that .ucce..ful, .ati.fied em&loyee. .tay. 7Ei@. concentration on the center of the Em&loyee 4etention Gheel &ro'ide. em&loyer. 0ith Internet=ba.ed tool. that ,i'e em&loyee. .y.tematic, on,oin, .u&&ort to be .ucce..ful in their 0or/ and .ati.fied 0ith their em&loyment.

    T1E 2ENTER O4 E"P3OYEE RETENTION 61EE3 $ * )he.e ei,ht central &roce..e. of the Em&loyee 4etention Gheel are the factor. that are mo.t critical to an em&loyee@. -ob &erformance .ucce... ATTIT#DE 4OR E"P3OYING % &roce.. to clearly define the 0ay .u&er'i.or. are e:&ected to interact 0ith em&loyee.> a &roce.. to ,i'e em&loyee. a 0ay to e:&re.. 0hat i. mo.t im&ortant to achie'e -ob Succe..> and a &roce.. to ,i'e em&loyer. a 0ay to demon.trate ?Em&loyin, 5alue.? throu,h em&loyment &olicie..

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    4INDING 2ANDIDATES % &roce.. that ,i'e. em&loyer. a com&rehen.i'e 0ay to communicate to -ob .ee/er. 0hat it ta/e. to achie'e .hort=term and lon,=term -ob .ucce.., and to attract the candidate. 0ho fit thi. criteria. SORTING APP3I2ANTS % &roce.. that ,i'e. em&loyer. a 0ay to confirm 0hether the attitude. and beha'ior. of -ob .ee/er. are a match for their 0or/ en'ironment. 21OOSING E"P3OYEES % &roce.. that ,i'e. em&loyer. a 0ay to define the .&ecific inter'ie0 Cue.tion. that &ro'e -ob .ee/er abilitie. to .ucce..fully &erform the tar,et ./ill.> and a &roce.. that ,i'e. em&loyer. a 0ay to 'erify the accuracy of re.umeHa&&lication data and inter'ie0 re.&on.e.. STARTING E"P3OYEES % &roce.. that &ro'ide. a 0ay for ne0 em&loyee. $before &erformin, the -ob* to under.tand ?0hy the em&loyer. bu.ine.. e:i.t.>? ?0hat ma/e. the bu.ine.. or,ani8ation .ucce..ful>? ?0hy the em&loyee@. -ob e:i.t.>? and ?0hat it 0ill ta/e for the em&loyee to achie'e -ob .ucce...?

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    IN4OR"ING E"P3OYEES
    % &roce.. that ,i'e. em&loyer. a 0ay to &ro'ide e..ential information $from fi'e critical information .ource.* that i. needed by em&loyee. to ma/e daily 0or/ deci.ion.. I"PROVING E"P3OYEES % &roce.. that ,i'e. .u&er'i.or. and em&loyee. a 0ay to 0or/ to,ether to build &er.onali8ed &lan. for im&ro'in, each em&loyee@. &riority -ob ./ill.> and a &roce.. that ,i'e. the em&loyer a 0ay to ?deli'er ./ill.=im&ro'in, trainin, curriculum? and to ?mea.ure the learnin, effecti'ene..? from the trainin, e:&erience.. RE6ARDING E"P3OYEES % &roce.. that ,i'e. em&loyer. a 0ay to define and communicate e:actly ho0 indi'idual em&loyee .alarie. are determined> and a &roce.. that ,i'e. em&loyer. a 0ay to &ro'ide em&loyee. 0ith e:tra incenti'e income that i. earned throu,h the achie'ement of ca.h ,eneratin, bu.ine.. ,oal..

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    2ON23#SION

    The pre'ent report indi%ate' that the follo8in! feature'>.

    !. Better -ob o&&ortunitie. in outer mar/et 2 &ay are the main rea.on. for increa.in, attrition rate. A. )he em&loyee. do not feel 'alued by their em&loyer. . )he 0or/in, en'ironment in the com&any al.o ma/e them to lea'e their -ob. E. +erformance %&&rai.al. are not ,i'en at re,ular inter'al. .o that the Em&loyee feel moti'ated for it. 0or/. ". )he 0or/ .chedule i. 'ery much infle:ible 2 Stre..ful.

    If .ome &o..ible mea.ure. are done to o'ercome the.e &roblem. then A$$r"$"o! ra$e can be decrea.ed to a lar,e e:tent.

    - 81 -

    BIB3IOGRAP1Y
    Sear%h En!ine> htt&:HH000.,oo,le.com htt&:HH000.a./.com 6eb'ite> htt&:HH000.in,.com htt&:HH000.in,'y.yaban/.com htt&:HH000..ur'ey8.com htt&:HH000.banc0e.tcor&.com #R3> htt&:HH000. in,'y.yaban/.comH htt&:HH000. in,'y.yaban/.comHhtmlPfile.Haboutu..htm htt&:HH000. in,'y.yaban/.comHhtmlPfile.H&rofile.htm

    Ne8' Paper'> Bu.ine.. Standard. Economic )ime.

    - 82 -

    I#ESTIONNAIRE
    7To F"!0 $1e Var"o,* Rea*o!* %or I!crea*"! A$$r"$"o! Ra$e "! ING VYSYA BANK0

    NA"E @OB TIT3E ORGANISATION 2E33 NO) AGE GRO#P B)

    >. >. >. >. >.

    6hat I' Your Primar( Rea'on 4or 3ea&in! The 2ompan(= Benefit. Better Fob <&&ortunity (ommute (onflict 0ith <ther Em&loyee. (onflict 0ith Mana,er 3amily 4ea.on. Fob E:&ectation Not (hallen,in, +ay +er.onal 4ea.on. 4eallocationHMo'e Gor/in, (ondition +) 1o8 3on! 1a&e You Been Thin$in! About 3ea&in! The 2ompan(= <ne Month <r De.. <ne )o " Month. More )han " Month.

    C)

    1o8 Sati'fied Are You 6ith The 2ompan( You 6or$ 4or= E:tremely Di..ati.fied
    - 83 -

    5ery Di..ati.fied Neither Sati.fied nor Di..ati.fied 5ery Sati.fied E:tremely Sati.fied A) 1o8 6a' Your 6or$in! EKperien%e= Much More +o.iti'e than Ne,ati'e More +o.iti'e than Ne,ati'e More Ne,ati'e than +o.iti'e Much More Ne,ati'e than +o.iti'e <) If Your EKperien%e' Are "ore Ne!ati&e Than Po'iti&e5 6hat 4a%tor' Are Re'pon'ible= Sele%t All That Appl() My +erformance E'aluation and the <utcome My 4ole, 4e.&on.ibility andH<r )itle Fob )rainin, My Bo.. My (o=Gor/er. My (om&en.ation (han,e in (om&en.ation +ac/a,e (om&any Sa'in,. +lan Medical Benefit. and In.urance 4elocation 5acation )ime <ther

    - 84 -

    -)

    1o8

    4leKible

    I'

    The

    2ompan(

    6ith

    Re'pe%t

    To

    Your

    4amil(

    Re'pon'ibilitie'= 5ery Infle:ible Some0hat Infle:ible Neither Some0hat 3le:ible 5ery 3le:ible F) Do You 1a&e A 2lear Path 4or 2areer Ad&an%ement= Stron,ly Di.a,ree Some0hat Di.a,ree Neither %,ree or Di.a,ree Some0hat %,ree Stron,ly %,ree /) 1o8 Sati'fied Are You 6ith Your Po'ition At Thi' 2ompan(= 5ery Sati.fied Some0hat Di..ati.fied Not Sati.fied nor Di..ati.fied Some0hat Sati.fied 5ery Sati.fied M) 6hat Part Of Pa( Pla( In Your De%i'ion To 3ea&e The Or!aniJation= A0=E0V E0=60V 60=B0V B0=!00V

    - 85 -

    B,)

    Doe' 6or$in! 2ondition' Affe%t You To 3ea&e Your @ob= 6e. No

    BB)

    1o8 6ould You Rate The "orale In Your 2ompan(= Do0 5ery Do0 9i,h 5ery 9i,h

    B+)

    2ould Thi' 2ompan( 1a&e Done An(thin! To En%oura!e You To Sta(=


    Yes No

    BC)

    YO#R VA3#AB3E S#GGESSTIONS ARE 6E32O"E .................................................................................................. .................................................................................................. .................................................................................................. ...................................................................... T1ANK YO# 4OR GIVING TI"E TO "E

    - 86 -

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