This document provides an introduction to employee retention and discusses its importance. It makes three key points:
1. Retaining quality employees is important for business growth as it ensures customer satisfaction, sales, and organizational knowledge. Losing employees means losing time and money spent on training.
2. Effective retention strategies like respect, recognition and rewards can reduce turnover and increase productivity. Respecting, recognizing, and rewarding employees fulfills their diverse needs and promotes loyalty.
3. Multiple factors influence an employee's decision to leave like compensation, growth opportunities, relationships, and work environment. Retention requires identifying reasons for dissatisfaction and implementing diverse tactics to improve satisfaction.
This document provides an introduction to employee retention and discusses its importance. It makes three key points:
1. Retaining quality employees is important for business growth as it ensures customer satisfaction, sales, and organizational knowledge. Losing employees means losing time and money spent on training.
2. Effective retention strategies like respect, recognition and rewards can reduce turnover and increase productivity. Respecting, recognizing, and rewarding employees fulfills their diverse needs and promotes loyalty.
3. Multiple factors influence an employee's decision to leave like compensation, growth opportunities, relationships, and work environment. Retention requires identifying reasons for dissatisfaction and implementing diverse tactics to improve satisfaction.
This document provides an introduction to employee retention and discusses its importance. It makes three key points:
1. Retaining quality employees is important for business growth as it ensures customer satisfaction, sales, and organizational knowledge. Losing employees means losing time and money spent on training.
2. Effective retention strategies like respect, recognition and rewards can reduce turnover and increase productivity. Respecting, recognizing, and rewarding employees fulfills their diverse needs and promotes loyalty.
3. Multiple factors influence an employee's decision to leave like compensation, growth opportunities, relationships, and work environment. Retention requires identifying reasons for dissatisfaction and implementing diverse tactics to improve satisfaction.
Entrepreneurs know how competitive hiring is in the business sector and the fear of employees jumping the fence to join a competitor is more payable now more than ever. It is hard to find good employees but it is even harder to promote company loyalty. Once you find top quality people to work for you, you have to ensure that you can keep them because retaining quality employees is one of the keys to ensure the growth of your business. Employee retention refers to the various policies and practices which let the employees stick to an organiation for a longer period of time. Every organiation invests time and money to groom a new joinee, make him a corporate ready material and bring him at par with the e!isting employees. "he organiation is completely at loss when the employees leave their job once they are fully trained. Employee retention takes into account the various measures taken so that an individual stays in an organiation for the ma!imum period of time. Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs. # strong retention strategy becomes a powerful recruitment tool. $etention of key employees is critical to the long%term health and success of any organiation. It is a known fact that retaining your best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning and deeply imbedded organiational knowledge and learning. Employee retention matters as organiational issues such as training time and investment& lost knowledge& insecure employees and a costly candidate search are involved. 'ence failing to retain a key employee is a costly proposition for an organiation. (arious estimates suggest that losing a middle manager in most organiations costs up to five times of his salary. Intelligent employers always realise the importance of retaining the best talent. $etaining talent has never been so important in the Indian scenario& however, things have changed in recent years. In prominent Indian metros at least, there is no dearth of opportunities for the best in the 1 business, or even for the second or the third best. $etention of key employees and treating attrition troubles has never been so important to companies. In an intensely competitive environment, where '$ managers are poaching from each other, organiations can either hold on to their employees tight or lose them to competition. )or gone are the days, when employees would stick to an employer for years for want of a better choice. *ow, opportunities abound. It is a fact that, retention of key employees is critical to the long%term health and success of any organiation. "he performance of employees is often linked directly to quality work, customer satisfaction, and increased product sales and even to the image of a company. +hereas the same is often indirectly linked to, satisfied colleagues and reporting staff, effective succession planning and deeply embedded organiational knowledge and learning. Employee retention matters, as, organiational issues such as training time and investment, costly candidate search etc., are involved. 'ence, failing to retain a key employee is a costly proposition for any organiation. (arious estimates suggest that losing a middle manager in most organiations, translates to a loss of up to five times his salary. Employee retention is a process in which the employees are encouraged to remain with the organiation for the ma!imum period of time or until the completion of the project. Employee retention is beneficial for the organiation as well as the employee. Employee retention has become a major concern for corporate in the current scenario. Individuals once being trained have a tendency to move to other organiations for better prospects. ,ucrative salary, comfortable timings, better ambience, growth prospects are some of the factors which prompt an employee to look for a change. +henever a talented employee e!presses his willingness to move on, it is the responsibility of the management and the human resource team to intervene immediately and find out the e!act reasons leading to the decision. 2 $etention involves five major things- .ompensation /upport 0rowth $elationship Environment )igure no.1 1ey areas in employee retention "o keep employees and their satisfaction levels high, every organiation needs to implement three $2s of employee retention .$espect , recognition, and rewards. $espect is esteem, special regard, or particular consideration given to people. $ecognition is defined as 3special notice or attention4 .5any problems with retention and morale occur because management is not paying attention to people2s needs and reactions. $ewards are the e!tra perks you offer beyond the basics of respect and recognition that make it worth people2s while to work hard. +hen the organiations implement the three $2s approach it reduces turn over and enjoy the increased productivity, reduced absenteeism. 3 Employees do not leave organiation without any significant reason. "here are certain circumstances that lead to their leaving the organiation. "he process of retention is not as easy at it seems. "here are so many tactics and strategies used in retention of employees by the organiations. "he basic purpose of these strategies is to increase employee satisfaction, boost employee morale hence achieve retention. 1.6 *eed for the study 4 In today2s scenario employee2s turnover is increasing day by day which affects the growth of the company. Employee2s turnover causes huge loss for the company, which invests a lot of money in training them. "he study helps to identify the factors causing dissatisfaction to the employees and thereby reducing employee turnover. 1.7 Objectives of the study "o study the employee retention strategy followed at '..89, "o identify the factors causing dissatisfaction of the employees at '..89,. 1.: /cope of the study "he study is confined to 'industan .oco .ola 8everages 9rivate ,imited located at 5oulali. 1.; /ources of data "he data was collected from primary sources and secondary sources. 9rimary data- /tructured questionnaire /econdary data- "he secondary data was collected from books , company websites and websites. 1.< $esearch methodology "otal population - 6<7 5 "arget population - <; /ample sie - 7= /ample element - E!ecutives >7=? /ample unit - '$%1, /tores%;, 9roduction%@, Auality%B, /hipping%;, 5aintenance%: /ample method - /tratified $andom /ampling 5ethod E!tent of study : '..89,, 5oulali branch "ime period - =;%=:%6=16 to =B%=:%6=16 1.7 ,imitations of the study "he information collected may be biased. "ime factor is considered as a main limitation. "he study was confined to a very short period. +hile analysing the factors causing dissatisfaction responses have been fabricated. 6.1 Industry profile 6 )ood and beverage- 8ackground "he food and beverage industry is composed of companies involved in processing raw food materials and manufacturing, packaging or distributing food or drink C the steps in food production after harvest and before retail purchase. "he beverage segment is composed of alcoholic and non%alcoholic beverages. )or alcoholic beverages, beer, cider and other flavored alcoholic beverages make up the bulk of the market, followed by wine and spirits. In the non% alcoholic segment, soft drinks far outsell coffee, tea, juice and water. "he food and beverages industry is considered a mature industry& it is very competitive and relies strongly on advertising to promote brands. "he food and beverage industry used to be considered the production of food, which is now distinguishing agriculture as a separate industry. *ow, the industry is much more focused on technology and mechanical manipulation of raw foods to create more value%added food products. $eliance on transport has increased as the industry has developed to be more global in nature, with most food products being most offered by a handful of globe%spanning corporations. 'istory In the late 1@ th and early 1D th centuries, the industrial $evolution contributed largely to the production and distribution of food and beverage. "he results were the ability to mass produce food products at a lower cost and improved transportation, which enabled many food products to be enjoyed in regions where food cannot be grown. Euring wartime, the food and beverage industry shifted, as food is often a precious commodity. 9rices were determined by availability and regulation. #fter +orld +ar I, the F./. )ederal 0overnment established the F./. )ood #dministration to regulate the contents of domestically produced food. 5ost countries involved in +orld +ar II rationed food and regulated prices in order to stabilie the economy. 7 #fter +orld +ar II the food and beverage industry began branding products through advertising to increase popularity. In many instances, product advertising costs more than the cost of production, and branding is partially responsible for the emergence of radio and television. "he cola wars, a campaign of mutually%targeted television advertisements and marketing campaigns between soft drink manufacturers. "he coca%cola company and 9epsi.o, was one e!ample of e!tensive advertising. In the 1D;=s and 1D<=s, the concept of franchised restaurants was promoted. "his enabled franchisers to e!pand with limited capital investment. One such franchise is 5cEonalds, currently the world2s largest chain of fast food restaurants. /ince the 1D@=s there were many mergers and acquisitions of food and beverage companies. "his trend continues today, with many companies actively buying and selling brands. /ome of the industry2s biggest growth spurts have come from mega%mergers between food industry giants. )or e!ample, 1raft foods and *abisco and 0eneral 5ills and 9illsbury were two major mergers. India2s )ood and 8everage Industry is valued at $s. 7;@: billion India produces above <== million tones of food products every year and is one of the major producers of food in the world. #ccording to 5c1inney2s report, the total beverage consumption will grow at DG over the ne!t 6= years. Of which, alcoholic beverage and non%alcoholic beverage will see it spurt of D.<G and @.@G respectively. ,eaders In the food and beverage industry, diversification, whether into many different types of food or beverage or into different preparations, has been shown to be a key to ensuring future growth. *estle, the largest food and 8everage .ompany in the world, unilever and 1raft foods have all diversified well and performed well, becoming leaders in their market. "he non% alcoholic beverage segment is led by coca%cola with 9epsi.o and .adbury /chweppes. 8 "he key players currently operating in Indian )ood and 8everages Industry includes, Eabur India ,imited, 0odrej Industries ,imited, 'industan Fnilever ,imited, 8ritannia Industries ,imited, I". ,imited, *estle, .oca%.ola, 9epsi.o, Inc., .adbury /chweppes 9,., )uture 0roup, $90 Enterprise and 0odrej #grovet ,imited. "rends $ecently, companies have spent a lot of money on researching consumers eating habits and preferences. 5ore people are dining out and food producers are finding themselves devoting more attention to products designed for restaurants, vending machines, and other food service providers. #nother trend in the industry has been the development of health foods& such has those containing less trans%fat or fewer calories, or those containing only organic ingredients. 8ottled water has been well established in the market as many beverage companies, and enhanced waters containing vitamins or supplements are gaining popularity, Energy drinks, such as $ed 8ull, have also burst forth onto the scene. $ising costs have become an issue in the )ood and 8everage Industry, as the raising cost of petroleum cause a twofold increase in cost for companies in the )ood Industry& costs have increased at the agriculture end, which increases raw materials costs for food processors who also deal with increased production and transportation costs at their end. /ince the Industry is so competitive, it is difficult for these companies to raise their prices accordingly and profit margins have suffered as a result. Auality control and assurances are vital to this Industry )ood safety programs have been adopted recently as issues of chemical and bacterial contamination and new food%borne pathogens remain a public health concern. .hallenges in the )ood and 8everage /ector 9 9oor infrastructure ,ack of adequate facilities for storage, transportation and cold chain facilities *o common food law )ood standards are confusing and contradictory 'igh cost of raw material and packing material and high railway freight put pressures on margins Eifferent rules and regulations and licensing are defined for different commodities 0rowth prospects +ith increase in disposal income of consumers, growing awareness among consumers about health products, rapid urbaniation and increasing popularity of convenience foods. )ood and 8everage sector is e!pected to grow at a high rate. "his sector holds a huge potential to grow because of the increase in advertisement spending, awareness campaign about products in urban as well s rural areas and large scale transformation. India2s )ood and 8everage Industry is valued at $s. 7;@: billion. India produces above <== million tones of food products every year and is one of the major producers of food in the world. )uture outlook 3Indian )ood and 8everages forecast >6==B%6=11?4 report gives an in%depth analysis of the present and future prospects of the Indian )ood and 8everages Industry. It looks into the Industry in detail with foci on organied food retailing, consumer food purchasing behavior, food processing Industry and packedHconvenience food industry. 1ey findings It is e!pected that fruit consumption will increase at a .#0$ of :.77G for the period spanning from 6==B%6=11 10 "he processed%food market is the main focus for foreign companies as this segment is underdeveloped and presents enormous potential for growth $ising household incomes, increasing urbaniation, changing lifestyles and the rapid growth of the private%sector and diary%processing Industry should lead to greater demand for value%added, milk based products, such as processed cheese, table butter and ice cream. .offee consumption is likely to e!pand at a rapid rate during the forecasted period. It is e!pected that it will increase at a rate of 1=.=;G for the period spanning from 6==B%6=11 .onsumption of soft drinks e!panded at an average rate of 11G by volume during 6==6 to 6==<, and this is forecast to accelerate only slightly to 16G during 6==B to 6=11 9roduction of branded snack food is estimated to be growing at an annual rate of 6=G in coming 6%7 years. 6.6 .ompany 9rofile 'industan .oca%.ola 8everages 9rivate ,imited Introduction 11 "he coca%cola company traces its beginning to 1@@<, when an #tlanta, 0eorgia 9harmacist, Er. Iohn pemberton, began to produce .oca%.ola syrup for sale in the fountain drink. 8enjamin ). "homas secured the e!clusive rights to bottle and sell .oca%.ola for most of the Fnited /tates from .oca%.ola .ompany. "he .oca%.ola bottling system continued to operate as an independent local business until the late 1DB=s and early 1D@=s when, for economic and other reasons, bottling franchise ownership began to consolidate. "he company offered its stock in the *ew Jork /tock E!change on *ovember 61 st , 1D@<, in the largest initial public offering made up to that date. .oca%.ola India .oca%cola returned to India after 1< years, in 1DD7. "he brand promotion was between 1DD:%D<. "he bottling acquisition occurred between 1DDB%DD. Its guest for profitability started from 6=== onwards. In Indian coke have their concentrate plants at pune producing 1= brands. Its .ompany% owned bottling operations are at si! operating regions. 6D operating areas with 6< plants, 1= 0reen fields and 7=== associates. It enjoys a business of over $s. 7=== cores in India. #bout the plant 'industan .oca%.ola 8everages 9vt. ,td at 5oula%#li is one of the main bottling units of .oca% .ola in India. "o understand the plant operations one has to have awareness of the plant area and capacity. 9lant #rea "otal area - D.B; acres 8uilt%up area - D.6B; acres 0reen 8elt - 1=.;: acres 12 Fndeveloped area - 7.D acres 9roduction ,ine ,ine I % $08 ,ine II % Iuice ,ine ,ine III % $08 ,ine ,ine I(% 9E" ,ine 9ackages 9roduction $08 % 6==ml $08 % 7==ml $08 % 1===ml Iuice % 6;=ml 9E" % ;==ml,<==ml,1;==ml 13 )igure. 6 )low .hart of 8everage 5anufacturing 9rocess #ll the plant operations can be broadly classified into four main areas namely +arehouse 9roduction 9rocess Ftilities #part from these the general functions such as '$, )inance, and /ales etc e!ists on coordination with them. +e begin e!amining the plant layout at the storage area. 14 +arehouse- In the bottling plant a warehouse is used to store both empty and filled bottles. "he warehouse is generally located adjacent to the production line to minimie material handling. "he demand analysis carried out by the sales department acts as an input to the shipping department. "hey in turn estimated the volume of production based on the number of empty and filled bottles. "he empty bottles in the warehouse are stored according to pack and flavor and send to filling. Eepalletising- #fter sorting, the cases of empties are placed on a case conveyor. 9lacing cases on the conveyor may be done manually or with the help of depalletier. Fncasing- "he bottles are then uncased for inspection. "his also can be done manually but here an uncase is incorporated. 9re%inspection- Empty returns are inspected for broken and chipped areas and for e!cessively dirty bottles before they are washed. 8ottle washer- "he washer is the largest single piece of equipment on the bottling line. In most plants, washer is located spaciously to ensure easy access to all sides of the washer. 'ere bottles are washed, rinsed and drained. Empty bottle inspection- "he bottles are once again inspected after they are washed and before they are sent for filling. 15 )iller- "his is the heart of the production line and here the beverage is filled into the empty bottles. 8everage is the final product made from the raw material through a series of processes. "he general procedure is $aw syrup $eady syrup 8everage $aw syrup- $aw syrup is prepared by adding raw materials such as sugar, treated water and activated carbon. In this process the mi!ture is heated to about @;.. $eady syrup- $eady syrup is pumped to the tanks in the ready syrup room after the syrup is cooled to about 6=%6; .. here the concentrate or the beverage base is added to it. # small amount of .O6 is also added to avoid stagnation of the ready syrup in the supply lines. "he concentrate and beverage bases mentioned here are manufactured by the .oca%.ola .ompany. .oncentrate imparts the distinctive taste and colour to the product .oca%.ola and the beverages bases provided the same to other soft drinks products of the .oca%.ola .ompany. 5i!er- "he ready syrup from the ready syrup room is pumped to the mi!er where it is mi!ed with .O6 and water according to the prefi!ed requirements. "hese values remain universally constant. "he mi!ture now is known as the beverage. .arbonation tank- "he beverage is then chilled or cooled as it is observed that the solubility of .O6 is higher at lower temperatures. "his mi!ture is sent to the carbonation tank. .rowning- "he bottles that are filled with the beverage in the filler are crowned in this process. 16 Eate coding- "he date of manufacturing, time and 5$9 are printed on the bottle by using the coding machine. )illed bottle inspection- "he filled bottles are once again inspected finally for the level of fill and the coding. .aser- "he cases which are obtained by uncasing the empty bottles are sent to the case cleaner which they are cleaned. "he case now packs the filled bottles in to the cases. 9alletiing- "he case are now placed on a case conveyor by either using a palletier or manually >here done manually? and sent to the warehouse. +arehouse- "he filled bottles cases are stored in the warehouse and are further sent for distribution. Auality lab- "he beverage so produced should match some prefi!ed standards. In order to test the quality of the beverage manufactured, regular sampling and testing is done. "he quality lab is placed near the production line to make sampling convenient. 8oiler- It is part of the plant utilities with supplies steam to various part of the plant such as raw syrup room, bottle washer, .I9. .hilling plant- "his provides all the refrigeration required in the plant mainly for cooling the beverage, raw syrup. 17 #ir compressor- "his system provides compressed air for all the pneumatic needs of the plant. /ome such areas are bottle washer, filler, caser, uncase. .O6- "he carbon dio!ide is stored in the plant so that it is available to the mi!ed in the beverage. 8ulk storage is generally outside the plant and it is piped to the bottling room. +"9- +ater is required at many stages in the plant operations. In the beverage manufacturing process we make use of treated water. "his is manufacturing by systemied water treatment techniques. In addition to this soft water is supplied for sanitation, boiler. E"9- #n effluent treatment plant in the plant premises treats the waste water coming from various parts of the plant such as bottle washer, syrup room, +"9, before it is released into the environment. .I9- # clean% in%place >.I9? system is most common way to clean closed systems of pipeline as well as pieces of equipment. "his is mainly needed at the syrup rooms and filling equipment such as filler, cooling equipment, carbonation equipment, pumps, lines. In addition to the above some others utilities also contribute to the beverage manufacturing process. /ome of them are forklifts, transformer, E0 /E". Interesting )acts about .oca%.ola .oca%.ola was first advertised as a remedy for headaches and e!haustion .oke has been advertised in televisions for ;= years "here are 6B different varieties of coke made by .oca%.ola 18 )irst bottle of coke was sold 16: years ago on @ th 5ay 1@@< in #tlanta .oca%.ola is recognied by D:G of world2s population #ppro!imately 1=,:;= brand drinks are consumed around the world each second .oca%.ola sold only n6; bottles in the 1 st year. "oday they sell around 1 billion bottles a day 5anagement 9hilosophy .orporate #rea "he major concept of management philosophy is to remain in the beverages industry and not to diversify into other areas. "he management believes in investing in non capital%intensive areas. In fact the beverage industry requires little capital and produces ma!imum returns. "he returns from the foreign markets are tapped to the most. )inancial #rea "he corporate objective is to increase the shareholders value. "he management believes that in increasing the shareholders value it requires consistent growth in financial results complemented by effective use of the cash flow. 5arketing #rea "he management is committed to superior market place e!ecution. "his is achieved by decentraliation operating structure that places the responsibilities authority and accountability as close to the customer and consumer as possible. #dvertising has placed an important role in the success of products. "he various punch lines adopted by the .oca%.ola .ompany for different years as one of their advertising strategy are as follows- 19 Jear 9unch ,ine 1D6D "he 9ause "hat $efreshes 1D7< It2s "he $efreshing "hing "o Eo 1D:6 It2s "he $eal "hing 1D:: 0lobal 'igh /ign 1DB1 I +ould ,ike to buy the world a coke 1DB< .oke #dds ,ife 1D@6 .oke Is It 1D@< .atch the wave 1D@D Jou .an2t beat the feeling 1DD7 #lways .oca%.ola 1DD@ #lways refreshing "able 1 punch lines (ision (ision serves as a frame work for road map and guides every aspect of business by describing what business need to accomplish in order to continue achieving sustainable, quality growth. 9eople- be a great place to work where people are inspired to be the best they can be. 9ortfolio- bring to the world a portfolio of quality beverage brands that anticipate and satisfy people2s desires and needs. 9artners- nurture a winning network of customers and suppliers together create mutual, enduring value. 9lanet- be a responsible citien that makes a difference by helping build and support sustainable communities. 9rofit- ma!imie long%term returns to share owners while being mindful of overall responsibilities. 9roductivity- be a highly effective, lean and fast moving organiation. 5ission $oad map starts with mission, which is enduring. It declares purpose as a company and serves as a standard against which actions and decisions are weighed. 20 "o refresh the world. "o inspire moments of optimism and happiness. "o create value and make a difference. +inning culture +inning culture defines the attitudes and behaviours that will be required to make 6=6= vision reality. (alues (alues serve as a compass for actions and describe how to behave in the world. ,eadership % the courage to shape a better future. .ollaboration C leverage collective genius. Integrity C be real. #ccountability C if it is to be, it2s up to me. 9assion C committed in hearten mind. Eiversity% as inclusive as our brands. Auality C what we do, we do well. 9roducts "he carbonated market )or the local market in India .oke offers following brands 21 5aaa "hums up .oke ,imca /prite )anta 1inley "he non C carbonated market 5inute maid Coffers froen concentrated fruit juice launched in 1D@@ Ice tea C varied flavours and sweetness in a line of ice teas was created with cokes joint venture with *estle. /un fill% a powered soft drink mi! launched in 6==D for Indian local market. 1inley C packaged drinking water. "he brand "he .oca%.ola consistently ranks first in the world2s most valuable brands. "he brand value is about 7D billion dollars. "his is the greatest heritage of the company. #s far as brand management is concerned, it is found that .oca%.ola ranks third only after 5icrosoft and ,ouis (uitton. )our basic segments $efreshment 22 .oca%.ola, "humps up, ,imca, )anta, sprite $ejuvenation $eady to drink tea and coffee% *estea and 0eorgia gold. 'ealth and nutrition Iuices and milks C5inute maid, sun fill $eplenishment +ater and /ports drinks C kinley. #p region .onsists of five operating locations C 5oula C ali, #meenpur, *ellore, (ijayawada and (isakhapatnam having the turnover of over B;= crores with 7 plants , 6 0reen fields and 1;== associates. 23 24 )igure 7 9roducts of coca cola Introduction Employee retention refers to policies and practices companies use to prevent valuable employees from leaving their jobs. 'ow to retain valuable employees is one of the biggest problem that plague companies in the competitive marketplace. *owadays, businesses often find that they spend considerable time, effort, and money to train an employee only to have them develop into a valuable commodity and leave the company for greener pastures. In order to create a successful company, employers should consider as many options as possible when it comes to retaining employees, while at the same time securing their trust and loyalty so they have less of a desire to leave in the future. 5eaning Employee retention involves taking measures to encourage employees to remain in the organiation for the ma!imum period of time. "here is no dearth of opportunities for talented person. "here are many organiations which are looking for such employees. If a person is not satisfied by the job heKs doing, he may switch over to some other more suitable job. In todayKs environment it becomes very important for organiations to retain their employees. Eefinitions 25 Employee retention is defined as 3a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs. #lso of concern are the costs of employee turnover >including hiring costs. productivity loss?. #ccording to 9hillips and .onnell >6==7?, employee retention is the fraction of employees staying in an organiation in a given period of time. It also states that the retention rate must be adequate in all important of the job categories. #ccording to Iennifer #. .arsen >6==;?, employee retention is the number of e!isting employees keep or stay with their jobs over a fi!ed period of time is known as retention. $easons for employee turnover Employees do not leave an organiation without any significant reason. "here are certain circumstances that lead to their leaving the organiation. "he most common reasons can be- Iob is not what the employee e!pected to be- sometimes the job responsibilities don2t come out to be same as e!pected by the candidates. Fne!pected job responsibilities lead to job dissatisfaction. ,ack of appreciation- If the work is not appreciated by the supervisor, the employee feels demotivated and looses interest in job. ,ack of trust and support in co%workers, seniors and management- "rust is the most important factor that is required for an individual to stay in the job. *o supportive coworkers, seniors and management can make office environment unfriendly and difficult to work in. /tress from over work and work life imbalance- Iob stress can lead to work life imbalance which ultimately many times lead to employee leaving the organiation. .ompensation- 8etter compensation packages being offered by other companies may attract employees. Importance of employee retention strategies "he process of employee retention will benefit an organiation in the following ways ,oss of .ompany 1nowledge %+hen an employee leaves, he takes with him valuable knowledge about the company, customers, current projects and past history >sometimes to 26 competitors?. Often much time and money has been spent on the employee in e!pectation of a future return. +hen the employee leaves, the investment is not realied. Interruption of .ustomer /ervice% .ustomers and clients do business with a company in part because of the people. $elationships are developed that encourage continued sponsorship of the business. +hen an employee leaves, the relationships that employee built for the company are effected, which could lead to potential customer loss. 0oodwill of the company- "he goodwill of a company is maintained when the attrition rates are low. 'igher retention rates motivate potential employees to join the organiation. $egaining efficiency- If an employee resigns, then good amount of time is lost in hiring a new employee and then training himHher and this goes to the loss of the company directly which many a times goes unnoticed. #nd even after this you cannot assure us of the same efficiency from the new employee. $etention models E$.2s $etention model Employee $etention connection2s decades of applied organiational e!perience indicate three primary drivers of employee retention.
)igure : E$. $etention 5odel /timulating +ork (ariety of assignments $esources and support provided to do good work 27 Opportunity to learn )eedback on results Fnderstanding the significance of oneKs personal contributions 5otivational ,eadership .hampion change and are open to new ideas Inspire a share vision of organiation direction 5otivate and recognie contributions Eevelop the capabilities of others 5odel behavior that reflects organiation values $ecognition L $eward /ay M"hank youM for a job well done $einforce desired behaviors .reate an emphasis and focus on recognition .elebrate successes 8uild self%esteem Enhance teamwork 28 Integrated /ystem for $etaining Employees
)igure.; "he Employee $etention .onnection transforms your organiation culture and enhances your competitive edge through the following five%phased approach- 9hase 1: E$. begins by analying your organiationKs motivation and retention culture through surveys and focus groups. +hat are the motivating and demotivating aspects of your cultureN 9hase 6: E$. ne!t designs high%involvement job and work assignments that include- +ide variety of tasks and skills Opportunities to learn #uthority to make decisions )eedback on results $esources and support to be successful
29 9hase 7: E$. trains supervisors and managers in proven methods of motivational leadership- Inspiring a shared vision and direction Eeveloping the capabilities of others 9romoting organiational change $ecogniing and appreciating employee contributions /erving as a role model 9hase :: E$. delivers a plan for employee career paths and skill building- Eesigning career paths, not necessarily up the organiational chart Identifying core competencies for different career paths 9lanning training and other opportunities to build competencies 5entoring for employee direction 9hase ;: E$. builds a tailored reward and recognition system to fit your organiationKs culture- Identifying activities, attitudes and contributions to be recognied and rewarded 5atching reward and recognition options to performance contributions Establishing specific motivational approaches for retaining employees "he mission of Employee $etention .onnection is to work with organiations to attract, develop and retain their most valuable resource- their employees. +ays to Increase Employee $etention 30 .ompanies have now realied the importance of retaining their quality workforce. $etaining quality performers contributes to productivity of the organiation and increases morale among employees. )our basic factors that play an important role in increasing employee retention include salary and remuneration, providing recognition, benefits and opportunities for individual growth. )igure . < Employee retention can be increased by inculcating the following practices- Open .ommunication- # culture of open communication enforces loyalty among employees. Open communication tends to keep employees informed on key issues. 5ost importantly, they need to know that their opinions matter and that management is 1==G 31 interested in their input. Employee $eward 9rogram: # positive recognition for work boosts the motivational levels of employees. $ecognition can be made e!plicit by providing awards like best employee of the month or punctuality award. 9roject based recognition also has great significance. "he award can be in terms of gifts or money. .areer Eevelopment 9rogram- Every individual is worried about hisHher career. 'e is always keen to know his career path in the company. Organiations can offer various technical certification courses which will help employee in enhancing his knowledge. 9erformance 8ased 8onus- # provision of performance linked bonus can be made wherein an employee is able to relate his performance with the company profits and hence will work hard. "his bonus should strictly be productivity based. $ecreation facilities- $ecreational facilities help in keeping employees away from stress factors. (arious recreational programs should be arranged. "hey may include taking employees to trips annually or bi%annually, celebrating anniversaries, sports activities, et al. 0ifts at /ome Occasions- 0iving out some gifts at the time of one or two festivals to the employees making them feel good and understand that the management is concerned about them. "he basic practices in employee retention strategies are- 'ire the right people in the first place. Empower the employees- 0ive the employees the authority to get things done. 5ake employees realie that they are the most valuable asset of the organiation. 'ave faith in them, trust them and respect them 9rovide them information and knowledge. 32 1eep providing them feedback on their performance. $ecognie and appreciate their achievements. 1eep their morale high. .reate an environment where the employees want to work and have fun. "hese practices can be categoried in 7 levels- ,ow, 5edium and high level )igure .B 33 $etention /uccess 5antra "ransparent work culture # transparent work environment can serve as one of the primary triggers to facilitate accountability, trust, communication, responsibility, pride and so on. It is believed that in a transparent work culture employees rigorously communicate with their peers and e!change ideas and thoughts before they are finally matured in to full%blown concepts. It induces responsibility among employees and accountability towards other peers, which gradually builds up trust and pride. 5ore importantly, transparency in work environment discourages work%politics which often hinders company goals as employees start to advance their personal objectives at the e!pense of development of the company as a single entity. Auality work A+, consists of opportunities for active involvement in group working arrangements or problem solving that are of mutual benefit to employees or employers, based on labor management cooperation. 9eople also conceive of A+, as a set of methods, such as autonomous work groups, job enrichment, and high%involvement aimed at boosting the satisfaction and productivity of workers. It requires employee commitment to the organiation and an environment in which this commitment can flourish. 9roviding quality at work not only reduces attrition but also helps in reduced absenteeism and improved job satisfaction. *ot only does A+, contribute to a companyKs ability to recruit quality people, but also it enhances a companyKs competitiveness. .ommon beliefs support the contention that A+, will positively nurture a more fle!ible, loyal, and motivated workforce, which are essential in determining the companyKs competitiveness. /upport Organiations these days want to protect their biggest and most valuable asset and they want to do this in a way that best suits their organiational culture. $etaining employees is a difficult task. 9roviding support to the employees acts as a mantra for retaining them. Employers can also 34 support their employees by creating an environment of trust and inculcating the organiational values into employees. "he management can support employees directly or indirectly. Eirectly they provide support in terms of personal crises, managing stress an personal development. )eedback )eedback acts as a channel of communication between the employee and his manager. "he amount of information employees receive about how well or how poorly they have performed is what we call feedback. It is a dialogue between manager and an employee which acts as a way of sharing information about the performance. It suggests where the employee performance is effective and where performance has to improve. 5anagers can provide either positive feedback or negative feedback to employees. "his feedback helps the employee assess his performance and identify the improvement areas. 9ositive feedback communicates managerial satisfaction. 9ositive recognition for good performance boosts up morale of employees and results in performance improvement to a higher productivity level. It is believed that positive feedback is the only type of feedback that generates performance above the minimum acceptable level. *egative feedback obviously communicates manager2s dissatisfaction. 'owever, negative feedback sometimes make employee to put more efforts to improve his performance. 8ut such times are very rare. 5oreover this improvement is short term. /ome managers do not provide any kind of feedback to their employees. Eue to no feedback, employees may assume that they are performing productively or they may feel that the manager is satisfied with their performance. /tudies reveal the performance tends be same or even decreases if no feedback is provided. 35 Employee retention strategies followed at '..89, 9ersonal $ecognition .ompany follow Employee recognition and incentive programs that help to improve morale, reduce turnover and also can improve productivity, they conduct ongoing recognition programs that cost very little to administer but add to the motivation in the workplace. Eepartmental managers have direct contact with their staff every day, so as to determine which factors keep employees motivated. 5anagers are encouraged to use small personal tokens of appreciation as a way of motivating employees. 'andwritten letters or certificate templates that are filled in by hand with the managerKs signature are given to employees as an ongoing form of recognition. It is a small token that costs very little money, but the effect of personal recognition from management can be positive. $ecogniing the Impact of *on%5onetary Incentives Employees are motivated by more than money. *on%monetary incentives that have a major impact on employee satisfaction, engagement and retention are given much importance. *on% monetary incentives include such things as recognition, the opportunity to be involved in decisions that impact their daily work, opportunities for learning and development, and workHlife balance and fle!ibility. /ince no two employees will be impacted in the same way, company that have a variety of ways to reward employees allow their managers and supervisors to be fle!ible in their implementation of these rewards. 36 Ongoing #ssessment and 5odifications Ongoing assessment of both internal drivers and e!ternal environmental impacts help ensure that companiesK reward packages serve to drive retention in a positive way. "he effectiveness of reward packages is impacted by internal and e!ternal factors and it is important for employers to continually monitor, evaluate and adjust their rewards and benefits packages to ensure that they continue to meet employeesK needs. .hanges in the competitive landscape, in the economy, in employee needs and in demographics are all considered for effectively designing the e!isting packages so as to meet employee needs. 1. 'ow long have you been with the OrganiationN a? 8elow ;years b? ;%1= ears c? #bove 1; years 37 /. *o (ariables $espondents 9ercentage >G? 1 8elow ; years 1D <7 6 ;%1= years =< 6= 7 #bove 1; years =; 1B "otal 7= 1== "able.1 E!perience of workers )igure @ E!perience of workers Interpretation )rom the above data it is interpreted that <7G of the employees are having e!perience below ; years and 6= G of the employees are in between ; to 1= years and remaining are e!perience above 1= years. 6. Eo you have an opportunity to share your ideas at workN a? Jes b? *o c? "o some e!tent /.*o (ariables $espondents 9ercentage >G? 38 1 Jes 1= 77 6 *o =6 B 7 "o some e!tent 1@ <= "otal 7= 1== "able .6 Opportunity to share ideas )igure .D Opportunity to share ideas Interpretation "he analysis reveals that 77G of the employees agree that they have an opportunity to share their ideas and B G of the employees say they do not have any opportunity and remaining <=G of the employees have an Opportunity to share ideas to some e!tent. 7. 'ow do you rate the infrastructure and equipment providedN a? E!cellent b? (ery good c? 0ood d? 9oor 39 "able.7 Infrastructure and Equipment )igure .1= Infrastructure and Equipment Interpretation "he analysis reveals that <7G of the employees feel good about the infrastructure and equipment provided in the organiation and BG of the employees feel e!cellent and 6B G of the employees say very poor infrastructure. :. #re you encouraged to participate in training to improve your skills and competenciesN a? Jes b? *o 40 /.*o (ariables $espondents 9ercentage >G? 1 E!cellent 7 1= 6 (ery good = = 7 0ood 1D <7 : 9oor =@ 6B "otal 7= 1== "able.: 9articipation in training to improve skills )igure .11 9articipation in training to improve skills Interpretation "he analysis reveals that the 1==G of the employees feel they are encouraged to participate in training to improve their skills and competencies. ;? Eo you feel that the company provides opportunities for your growth and developmentN a? Jes b? *o c? "o some e!tent /.*o (ariables $espondents 9ercentage >G? 1 Jes 11 7B 41 /.*o (ariables $espondents 9ercentage >G? 1 Jes 7= 1== 6 *o = = "otal 7= 1== 6 *o = = 7 "o some e!tent 1D <7 "otal 7= 1== "able .; Opportunity for growth and development )igure .16 Opportunity for growth and development Interpretation "he analysis reveals that 7B G of the employees feel that company provides an opportunity for growth and <7 G feel that there is an opportunity to some e!tent for career growth and development in the organiation. <. Eid the company policies or procedures make your job more difficultN a? 5ore often b? /ometimes c? #lways d? *ever /.*o (ariables $espondents 9ercentage >G? 1 5ore often ; 1B 42 6 /ometimes 1< ;7 7 #lways = = : *ever D 7= "otal 7= 1== "able .< Iob difficulty )igure .17 Iob difficulty Eata Interpretation "he analysis reveals that 1B G of the employees feel that company policies and procedures make their job difficulty and 7= G of the employees say never and ;7 G of the employees feel that company policies and procedures make their job difficulty sometimes. B? +hat made you to remain employed with the companyN a? .hallenging work b? /alary c? ,ess travel d? Employee benefits /.*o (ariables $espondents 9ercentage >G? 1 .hallenging work 6@ D7 6 /alary = = 7 ,ess travel = = 43 : Employee benefits =6 =B "otal 7= 1== "able.B Employee retention )igure no .1: Employee retention Eata Interpretation "he above analysis shows that D7G of the employees feel challenging work is the reason to remain employed in the organiation and B G of the employees feel employee benefits retain employees in the organiation. @. 9lease rate the following- @a? how do you rate the positive work environmentN a? E!cellent b? 0ood c? fair d? poor /.*o (ariables $espondents 9ercentage >G? 1 E!cellent =1 7 6 0ood 6B D= 7 )air =6 B 44 : 9oor = = "otal 7= 1== "able.@ 9ositive work environment )igure.1; 9ositive work environment Interpretation )rom the above data it is interpreted that D=G of the employees rated good about positive work environment and 7G of the employees say e!cellent and B G of the employees feel fair. @b?. salary a? E!cellent b? 0ood c? )air d? 9oor /.*o (ariables $espondents 9ercentage >G? 1 E!cellent =1 7 6 0ood 67 BB 7 )air = = : 9oor =< 6= "otal 7= 1== "able.D /alary 45 )igure.1< /alary Interpretation "he analysis reveals that BB G of the employees are satisfied and feel good about the basic compensation offered by the organiation and 6= G of the employees feel dissatisfied about their salary and 7 G of the employees say e!cellent pay pack. @c?. Employee involvement in the organiationN a? E!cellent b? 0ood c? )air d? 9oor /. *o (ariables $espondents 9ercentage >G? 1 E!cellent =6 B 6 0ood 6; @7 7 )air =6 B : 9oor =1 7 "otal 7= 1== "able.1= Employee involvement in the organiation 46 )igure .1B Employee involvement in the organiation. Interpretation "he analysis shows that @7 G of the employees actively take part in activites and BG of the employees feel e!cellent . D. Eo you get the recognition that you deserve for your performanceN a? Jes b? *o /. *o (ariables $espondents 9ercentage >G? 1 Jes 1: :B 6 *o 1< ;7 "otal 7= 1== "able.11 9erformance recognition 47 )igure 1@ 9erformance recognition Interpretation "he above analysis reveals that :B G of the employees feel that they are being recognied for their performance and ;7G of the employees do not get recognition for their performance. 1=. +ould you like to plan your further career in this organiationN a? Jes b? *o /. *o (ariables $espondents 9ercentage >G? 1 Jes 1< ;7 6 *o 1: :B "otal 7= 1== "able .16 .areer growth 48 )igure 1D .areer growth Interpretation "he above chart shows that ;7G of the respondents like to plan their career in the e!isting organiation and :<G of the respondents are not interested to continue their career in the organiation. 11. Eoes your management come forward to support when you are facing with critical situation a? /trongly agree b? #gree c? Eisagree d? /trongly disagree /.*o (ariables $espondents 9ercentage >G? 1 /trongly agree = = 6 #gree 6; @7 7 Eisagree =; 1B : /trongly disagree = = "otal 7= 1== "able.17 5anagement support 49 )igure6= 5anagement support Interpretation "his chart shows that @7G of the employees agree that management supports them in critical situation and 1BG of them disagree. 16. 'ow satisfied are you with the jobN a? 'ighly satisfied b? 'ighly dissatisfied c? /atisfied d? Eissatisfied /.*o (ariables $espondents 9ercentage >G? 1 'ighly satisfied =1 7 6 'ighly dissatisfied = = 7 /atisfied 6< @B 7: Eissatisfied =7 1= "otal 7= 1== "able .1: Iob satisfaction 50 )igure.61 Iob satisfaction Interpretation "he analysis reveals that the @BG of the employees are having work satisfaction and 7 G of the employees are highly satisfied and 1= G of the employees are not satisfied with their job 17. Eo you agree employees are paid worth their contributionN a? /trongly agree b? #gree c? Eisagree d? /trongly disagree /.*o (ariables $espondents 9ercentage >G? 1 /trongly agree =1 7 6 #gree 61 B= 7 Eisagree =B 67 : /trongly disagree =1 : "otal 7= 1== "able .1; .ontribution based payment 51 )igure.66 .ontribution based payment Interpretation "he above chart shows that 7G of the employees strongly agree that they are paid worth for their contribution and B= G of the employees agree, 67G of the employees disagree and :G of the employees strongly disagree. 1:. 'ow well do you think the appraisal system worked for youN a? 0ood b? E!cellent c? /atisfactory d? 9oor /.*o (ariables $espondents 9ercentage >G? 1 0ood 6= <B 6 E!cellent =1 7 7 /atisfactory =@ 6B : 9oor =1 7 "otal 7= 1== "able .1< #ppraisal system 52 )igure 67 #ppraisal system Interpretation "he chart shows that <B G of the respondents feel appraisal system worked for them and 7 G of the employees worked e!cellently for them and 6BG of them satisfied and remaining 7G of them are not satisfied with appraisal system. 1;. Is training program always linked with your career development Hgrowth. a? /trongly Eisagree b? Eisagree c? *eutral d? #gree /.*o (ariables $espondents 9ercentage >G? 1 /trongly Eisagree =1 7 6 Eisagree =6 B 7 *eutral 66 B7 : #gree =; 1B "otal 7= 1== "able.1B "raining linked to career development 53 )igure .6: "raining linked to career development Interpretation "he above analysis shows that 7G of the employees strongly agree that training programmes are linked with their career and BG of the employees disagree and B7 G of the employees find only some of the training programmes are related with career growth and 1BG of them agree with it. 1<. Eoes fun at work have any impact on 5otivation levels of employeesN a? Jes b? *o /.*o (ariables $espondents 9ercentage >G? 1 Jes 6= <B 6 *o 1= 77 "otal 7= 1== "able .1@ Impact of fun on motivation 54 )igure6; Impact of fun on motivation Interpretation "he above analysis shows that <BG of the respondents accept that fun at work increases motivation levels and 77G of the respondents do not agree. 1B. 'ow is your relationship between your superiorsN a? 'ighly Eissatisfied b? Eissatisfied c? /atisfied d? 'ighly /atisfied /.*o (ariables $espondents 9ercentage >G? 1 'ighly dissatisfied = = 6 Eissatisfied =7 1= 7 /atisfied 6B D= : 'ighly satisfied = = "otal 7= 1== "able 1D $elationship between supervisors 55 )igure 6< $elationship between supervisors Interpretation "he chart shows that D= G of the respondents are satisfied with the relationship between their supervisors and 1= G of them are not satisfied. )indings 5ost of the people have an opportunity to share their ideas 5ajority of the people are satisfied with the infrastructure and equipment provided by the organiation. #ll the employees are encouraged to participate in training to improve skills and competencies but it was found that there is no opportunity to growth based on the improved skill set. 5ost of the employees find difficult with company policies and procedures, that making their job difficult. 5ost of the employees do not get recognition for their performance. It was found that most of the training programmes are not in favour of employee career development. 56 Informal interaction with the employees vi the answers to the questionnaire had lots of deviations. $egularity and punctuality to the work was given more importance rather than performance at work and training point. :BG of the employees are not interested to continue their career in the e!isting organiation. /uggestions 0ood infrastructure and congenial atmosphere boost up employee morale with which he e!hibits a committed and dedicated work. #wareness has to be created about company policies and procedures which is very vital for the organiation success and employee satisfaction. Employees shall be rewarded based upon their performance rather than the punctuality. "raining programmes shall be in such a way that it supports the employees career development. "he gap between formal and informal approach of employees towards the same problem to be addressed in a more effective efficient mannaer. 57 .onclusion $etention of talented employees is critical to the long%term health and success of any organiation. It is important for every organiation to implement retention strategies and also take measures to reduce employee turnover. "he retention strategies followed by the .oca .ola company are good and all the employees are satisfied and implemented in the organiation and the retention is high. 58
Pension Benefit Guaranty Corporation v. Dorsey Corporation Chattanooga Glass Company Glass Bottle Blowers Association of the United States and Canada Afl-Cio American Flint Glass Workers Union, Afl-Cio, in Re: Maryland Glass Corporation, Non-Salaried Employees Pension Plan Maryland Glass Corporation, Salaried Employees Pension Plan, 814 F.2d 655, 4th Cir. (1987)