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A Study On Employee Retention-01!18!2011
A Study On Employee Retention-01!18!2011
By krangan | Studymode.com
development in the organization | | |4.1.8 |Employees response towards the welfare policies
offered by the organization | | |4.1.9 |Factors motivating the employees | | |4.1.10 |Employees
opinion about stress due to overwork | | |4.1.11 |What did the employees like more about the
company | | |4.1.12 |Employees opinion about the medical facilities offered by the company | | |
4.1.13 | | | | |Employees response towards performance appraisal system followed in the
company | | |4.1.14 |Employees opinion about balancing the work life and personal life | | |4.1.15
| | | | |Employees satisfaction level towards the Grievance handling system followed in the
company | | |4.1.16 |Whether company welcomes new ideas and innovation from the employees
| | |4.1.17 |Employees satisfaction level regarding superior subordinate relationship | |
LIST OF CHARTS
|S.NO | TITLE |Page No | | 4.1.1 |Position category of the employees | | | 4.1.2 |Years of
experience of the employees | | | 4.1.3 |Employees satisfaction towards work environment | | |
4.1.4 |Employees satisfaction towards incentives provided by the organization | | | 4.1.5 |Opinion
about managements interest in motivating employees | | | 4.1.6 |Employees opinion about
opportunities for growth and promotion | | | 4.1.7 |Employees opinion about their career
development in the organization | | | 4.1.8 |Employees response towards the welfare policies
offered by the organization | | | 4.1.9 |Factors motivating the employees | | |4.1.10 |Employees
opinion about stress due to overwork | | |4.1.11 |What did the employees like more about the
company | | |4.1.12 |Employees opinion about the medical facilities offered by the company | | |
4.1.13 | | | | |Employees response towards performance appraisal system followed in the
company | | |4.1.14 |Employees opinion about balancing the work life and personal life | | |4.1.15
| | | | |Employees satisfaction level towards the Grievance handling system followed in the
company | | |4.1.16 |Whether company welcomes new ideas and innovation from the employees
| | |4.1.17 |Employees satisfaction level regarding superior subordinate relationship | |
1.3 INTRODUCTION TO THE STUDY
In todays scenario retaining the employees in the organization is becoming a challengeable job.
Hiring knowledgeable people for the job is essential for an employer. But retention is even more
important than hiring. The employees are valuable assets to the organization so it is the
responsibility for the organization to develop the strategies inorder to retain the employees.
Employee attrition may be due to various factors such as lack of growth opportunities,
dissatisfaction with the working environment, lower pay etc... As soon as they feel dissatisfied
with the current employer or the job, they switch over to the next job, It is the responsibility of
the organization to retain their best employees. The organization should satisfy the needs and
wants of the employees working in the organization which helps in reducing employee turn over.
Employee retention greatly constitute for the growth of the organization.
1.3.1 OBJECTIVES
PRIMARY OBJECTIVE:
To reduce the employees turn over in the organization.
SECONDARY OBJECTIVE:
To retain the experienced and skillful employees within the organization.
To reduce the cost of turn over.
To identify the factors causing dissatisfaction of the employees
To identify the factors motivating the employees
1.3.2 NEED OF THE STUDY
In todays scenario employees turnover is getting increased day by day which affects the growth
of the company. Employees turnover causes huge loss for the company, which invests a lot of
money in training them. The study helps to identify the factors causing dissatisfaction, to the
employees and thereby reducing the employees exiting the profession.
1.3.3 SCOPE OF THE STUDY
By identifying the factors causing employee turn over, the organization can develop and
maintain the strategies that help them to retain their employees. This study helps the
management to analyze the factors that motivates the employees. By identifying the factors of
motivation management may concentrate on those motivating factors in order to create job
satisfaction.
Providing job satisfaction to the employees will increase employee loyalty which in turn helps
the organization to retain their employees.
1.3.4 LIMITATIONS OF THE STUDY
Due to time constraint the study is restricted only to limited respondents
The information collected may not be accurate.
Some respondents have not responded to all the questions.
The data given by the respondents may be personally biased.
causally related has not been incorporated in most turnover models. His study indicated there
were strong causal links between stress and satisfaction (higher stress leads to lower
satisfaction) and between satisfaction and commitment (lower satisfaction leads to lower
commitment). He further noted a reciprocal relationship between commitment and turnover
intentions A recent study of turnover by Boxall et al (2003) in New Zealand confirmed the view
that motivation for job change is multidimensional and that no one factor will explain it.
3. RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
A research design is purely and simply the framework or plan for a study that guides the
collection and analysis of the data. The function of research design is to ensure that the
required data are collected accurately and economically.
The Research design used in the study was descriptive research design. The descriptive study
portrays the characteristics of a group or an individual or situation.
3.2 SAMPLING TECHNIQUE
The sampling technique used in this study is Stratified sampling.
3.3 SAMPLE SIZE
The sample size used in this study is 50. The universe of the study includes employees in HR
admin. In HMIL the total number of employee in HR admin are 89. Out of them 50 are selected
for the study.
3.4 DATA COLLECTION METHOD
Based on the nature and purpose of study there are various modes of data collection. Data
sources can be classified into two categories namely primary and secondary sources. Primary
data:
The primary data are collected from structured form of questionnaire. The questionnaire
consists of multiple choices, dichotomous and ranking type of questions.
Secondary data:
The secondary data are collected through company records and journals
3.5 STATISTICAL TOOLS USED
The statistical tools used in this study are 1. chi- square analysis 2. Weighted average method
TABLE 4.1.1
CLASSIFICATION OF EMPLOYEES BASED ON THEIR EXPERIENCE
|S.NO |Respondents |Response |Percentage | |1 |Less than 1 year |10 |20 | |2 |1-2 year |14 |28 |
|3 |2-3 year |10 |20 | |4 |3-4 year |7 |14 | |5 |Above 4 year |9 |18 | | |Total |50 |100 |
CHART 4.1.1
CLASSIFICATION OF EMPLOYEES BASED ON THEIR EXPERIENCE
[pic]
Interpretation: It is infered that 20% of employees has experience less than 1 year, 28% of
employees has experience of 1-2 year, 20% of employees has experience of 2-3 year,and 14%
of employees has experience of 3-4 year and 18% of employees has experience above 4 years.
TABLE 4.1.2
POSITION CATEGORY
|S.No |Position category |No. of Respondents |Percentage | |1 |Middle Level |28 |56 | |2 |
Managerial Level |22 |44 | | |Total |50 |100 |
CHART 4.1.2
POSITION CATEGORY
[pic]
Interpretation: It is infered that 56% of employee belongs to Middle level and 44% of employees
belongs to Managerial level.
TABLE 4.1.3
SATISFACTION TOWARDS THE WORK ENVIRONMENT
|S.no |Response |Respondents |Percentage | |1 |Highly satisfied |10 |20 | |2 |Satisfied |22 |44 | |
3 |Neutral |11 |22 | |4 |Dissatisfied |4 |8 | |5 |Highly dissatisfied |3 |6 | | |Total |50 |100 |
CHART 4.1.3
SATISFACTION TOWARDS THE WORK ENVIRONMENT
[pic]
Interpretation: From the table it is infered that 20% of employees are highly satisfied with the
work environmnent,44% of employees are satisfied with the work environmnent,22% of
employees are neutral in satisfaction with the work environmnent,8% of employees are
dissatisfied with the work environmnent and 6% of employees are highly dissatisfied with the
work environmnent.
TABLE 4.1.4
OPINION ABOUT THE INCENTIVES PROVIDED
|S.no |Response |Respondents |Percentage | |1 |Highly satisfied |24 |48 | |2 |Satisfied |16 |32 | |
3 |Neutral |7 |14 | |4 |Dissatisfied |3 |6 | |5 |Highly dissatisfied |- |- | | |Total |50 |100 |
CHART 4.1.4
OPINION ABOUT THE INCENTIVES PROVIDED
[pic]
Interpretation: From the table it is seen that 48% of employees are highly satisfied 32% of
employees are satisfied 14% or employees are neutral and 6% of employees are dissatisfied
with the incentives provided in the organisation.
TABLE 4.1.5
THE MANAGEMENTS INTEREST IN MOTIVATING EMPLOYEES
|S.no |Response |Respondents |Percentage | |1 |Strongly agree |20 |40 | |2 |Agree |11 |22 | |3 |
Neutral |14 |28 | |4 |Disagree |5 |10 | | |Total |50 |100 |
CHART 4.1.5
THE MANAGEMENTS INTEREST IN MOTIVATING EMPLOYEES
[pic]
Interpretation: From the table it is infered that 40% of employees strongly agree,22% of
employeesagree,28% of employees are neutral and 10% of employees disagree with the
managements interest in motivating employees.
TABLE 4.1.6
OPINION ABOUT THE OPPORTUNITIES FOR PROMOTION
|S.no |Response |Respondents |Percentage | |1 |Highly satisfied |15 |30 | |2 |Satisfied |28 |56 | |
3 |Dissatisfied |5 |10 | |4 |Highly dissatisfied |2 |4 | | |Total |50 |100 |
CHART 4.1.6
OPINION ABOUT THE OPPORTUNITIES FOR PROMOTION
[pic]
Interpretation: It is clear that 30% of employees are highly satisfied,56% of employees are
satisfied,10% of employees are dissatisfied and 4% of employees are highly dissatisfied with
TABLE 4.1.10
STRESS DUE TO OVERWORK
|S.No |Response |No. of Respondents |Percentage | |1 |Yes |38 |76 | |2 |No |12 |24 | | |Total |50 |
100 |
CHART 4.1.10
STRESS DUE TO OVERWORK
[pic]
Interpretation: It is infered that 76% of employees accepted the fact of stress due to over work in
the company and 24% of employees doesnt accepted the fact of stress due to over work.
TABLE 4.1.11
WHAT DID YOU LIKE MORE ABOUT THE COMPANY
|S.no |Factors |Respondents |Percentage | |1 |Compensation |12 |24 | |2 |Rewards &
Recognition |8 |16 | |3 |Job security |5 |10 | |4 |Relationship |25 |50 | | |Total |50 |100 |
CHART 4.1.11
WHAT DID YOU LIKE MORE ABOUT THE COMPANY
[pic]
Interpretation:It is infered that 24% of employees like compensation,16% of employees like
rewards&recognition,10% of employees like job security and 50% of employees like relationship
in the company.
TABLE 4.1.12
MEDICAL FACILITIES PROVIDED IN THE ORGANISATION
|S.No |Response |No. of Respondents |Percentage | |1 |Yes |50 |100 | |2 |No |- |- | | |Total |50 |
100 |
CHART 4.1.12
MEDICAL FACILITIES PROVIDED IN THE ORGANISATION
[pic]
Interpretation: It is infered that all the respondents are satisfied with the medical facilities offered
by the organisation.
TABLE 4.1.13
RESPONSE TOWARDS THE PERFORMANCE APPRAISAL SYSTEM
|S.No |Response |No. of Respondents |Percentage | |1 |Yes |35 |70 | |2 |No |15 |30 | | |Total |50 |
100 |
CHART 4.1.13
RESPONSE TOWARDS THE PERFORMANCE APPRAISAL SYSTEM
[pic]
Interpretation: It is infered that 70% of employees are satisfied with the performance appraisal
system and 30% of employees are not satisfied with the performance appraisal system followed
in the organisation.
TABLE 4.1.14
OPINION ABOUT BALANCING WORK LIFE AND PERSONAL LIFE
|S.No |Response |No. of Respondents |Percentage | |1 |Yes |38 |76 | |2 |No |12 |24 | | |Total |50 |
100 |
CHART 4.1.14
OPINION ABOUT BALANCING WORK LIFE AND PERSONAL LIFE
[pic]
Interpretation: It is infered that 76% of employees are satisfied about balancing work life with the
personal life and 24% of employees are nt satisfied in balancing the work life with the personal
life
TABLE 4.1.15
OPINION ABOUT GREIVANCE HANDLING SYSTEM
|S.no |Factors |Respondents |Percentage | |1 |Highly efficient |12 |24 | |2 |Efficient |23 |46 | |3 |
Inefficient |5 |10 | |4 |Highly inefficient |3 |6 | |5 |Neither efficient nor inefficient |7 |14 | | |Total |50
|100 |
CHART 4.1.15
OPINION ABOUT GREIVANCE HANDLING SYSTEM
[pic]
Interpretation: It is infered that 24% of employees accepts highly efficient,46% of employees
accepts efficient,10% of employees accepts inefficient,6% of employees accepts highly
inefficient and 14% of employees given the opinion of neither efficient nor inefficient for
|S. NO |Options |No of respondents |Percentage (%) | |1 |Highly satisfied |10 |20 | |2 |Satisfied |
22 |44 | |3 |Neutral |11 |22 | |4 |Dissatisfied |4 |8 | |5 |Highly dissatisfied |3 |6 | | Total |50 |100 |
Expected Frequency = 50/5 = 10
Calculation of [pic] :
|Observed Frequency (O) |Expected Frequency (E) | [pic] |[pic] / E | | 10 |10 |0 |0 | | 22 |10 |144 |
14.4 | | 11 |10 |1 |0.1 | | 4 |10 |36 |3.6 | | 3 |10 |49 |4.9 | | | |TOTAL |23 |
Calculated ^2 = [pic]
0 Observed Frequency
E Expected Frequency
Calculated [pic] =23
Degree of freedom = (5-1)
= 4 d.f at 5 % level of significance
Therefore, Tabulated [pic] =9.488
Since Calculated [pic] > Tabulated [pic]
Therefore, we reject the hypothesis.
i.e, there is significant difference between the nature of work environment and the employee
retention
4.2.2. CAREER DEVELOPMENT IN THE ORGANISATION
To determine whether there is significant difference between the career development of
employees and the employee retention
H0 : There is no significant difference between the career development of employees and the
employee retention
H1 : there is significant difference between the career development of employees and the
employee retention |S. NO |Options |No of respondents |Percentage (%) | |1 |Strongly agree |10
|20 | |2 |Agree |20 |40 | |3 |Neutral |15 |30 | |4 |Disagree |2 |4 | |5 |Strongly disagree |3 |6 | | Total
|50 |100 |
Expected Frequency = 50/5 = 10
Calculation of [pic] :
|Observed Frequency (0) |Expected Frequency (E) | [pic] |[pic] / E | | 10 |10 |0 |0 | | 20 |10 |100 |
10 | | 15 |10 |25 |2.5 | | 2 |10 |64 |6.4 | | 3 |10 |49 |4.9 | | | |TOTAL |23.8 |
Calculated ^2 = [pic]
0 Observed Frequency
E Expected Frequency
Calculated [pic] =23
Degree of freedom = (5-1)
= 4 d.f at 5 % level of significance
Therefore, Tabulated [pic] =9.488
Since Calculated [pic] > Tabulated [pic]
Therefore, we reject the hypothesis.
i.e, there is significant difference between the career development of employees and the
employee retention
3. WEIGHTED AVERAGE METHOD
4.3.1 FACTORS MOTIVATING THE EMPLOYEES
|Factors |Respondents (Xi) |Weightage (Wi) |(Wi*Xi)/ Wi |Rank | |Increase in salary | 8 | 2 | 1.6
| III | | Promotion | 20 | 4 | 8 | I | | Leave | 7 | 1 | 0.7 | IV | | Power | 15 | 3 | 4.5 | II | | Total | 50 | 10
| 14.8 | |
Inference:
From the table it is seen that most of the respondents have given first preference to promotion,
second preference to power, third preference to increase in salary and fourth preference to
leave with respect to the factors motivating them.
4.3.2. GREIVANCE HANDLING SYSTEM IN THE ORGANISATION
|Options |Respondents (Xi) |Weightage (Wi) |(Wi*Xi)/ Wi |Rank | |Highly efficient | 12 | 5 | 4 | II |
|Efficient | 23 | 4 | 6.1 | I | |Inefficient | 5 | 2 | 0.66 | IV | |Highly inefficient | 3 | 1 | 0.2 | V | |Neither
efficient nor | 7 | 3 | 1.4 | III | |inefficient | | | | | |Total | 40 | 15 | 12 | |
Inference:
From the table it is seen that most of the respondents have rated first for Efficient, secondly
Highly efficient, third rank is for Neither efficient nor inefficient, Inefficient stands fourth, whereas
rewards&recognition,10% of employees like job security and 50% of employees like relationship
in the company.
It is infered that all the respondents are satisfied with the medical facilities offered by the
organisation.
It is infered that 70% of employees are satisfied with the performance appraisal system and
30% of employees are not satisfied with the performance appraisal system followed in the
organisation.
It is infered that 76% of employees are satisfied about balancing work life with the personal
life and 24% of employees are not satisfied in balancing the work life with the personal life
It is infered that 24% of employees accepts highly efficient,46% of employees accepts
efficient,10% of employees accepts inefficient,6% of employees accepts highly inefficient and
14% of employees given the opinion of neither efficient nor inefficient for Greivance handling
system in the company.
It is infered that 80% of employees responded yes and 20% of employees responded no for
companys interest in entertaining new ideas and innovation from employees.
It is infered that 24% of employees are highly satisfied,44% of employees are satisfied,22%
of employees are neutral and 10% of employees are dissatisfied with superior subordinate
relationship
SUGGESTIONS
The Management should take efforts in motivating the employees working in the
organization. The Organization should concentrate on the career development of the
employees The job stress experienced by the employees can be reduced by increasing the
manpower in the organization. The management should create growth opportunities for the
employees Grievance handling system can be made more efficient which results in
increased level of satisfaction among the employees. Employees should be recognized for
their work. This enables a better superior Sub ordinate relationship within the organization.
The management should provide a better work environment which results in job
satisfaction to the employees.
CONCLUSION
In order to retain the employees within the organization, their complaints should be resolved
immediately. Many complaints can become grievances if unnoticed. The Grievance Handling
system should be made more efficient in the organization. The employees are valuable assets
to the organization retaining them is considered to be more essential.. The organization has to
motivate the employees. Motivation increases performance level, it lowers employee turnover.
Motivation ensures stability of workforce and hence the stability of the organization. The
organization has to concentrate in career development of their employees. The increased
attention to and concern for individual careers generate more organizational loyalty and
therefore lower employee turnover. Organizations should proactively recognize the benefits of
understanding, managing and improving employee loyalty.
QUESTIONNAIRE
1. Name: (Optional)
2. Years of experience:
a) Less than 1 year b) 1-2 year c) 2-3 year d) 3-4 year e) Above 4 year
3. Position category: a) Middle level b) Managerial level
4. Are you satisfied with the work environment?
a) Highly satisfied b) Satisfied c) Neutral d) Dissatisfied e) Highly dissatisfied
5. Are you satisfied with the incentive provided by the organization? a) Highly satisfied b)
Satisfied c) Neutral d) Dissatisfied e) Highly dissatisfied
6. Management is really interested in motivating people
a) Strongly agree b) Agree c) Neutral d) Disagree e)Strongly disagre
7. Give your opinion about the opportunities for growth and promotion a) Highly satisfied b)
Satisfied c) Dissatisfied d) Highly dissatisfied
8. Employees are satisfied with career development at the organization a) Strongly agree b)
Agree c) Neutral d) Disagree e) Strongly disagree
9. Are you satisfied with the companys welfare policies towards the employee? a) Highly
satisfied b) Satisfied c) Neutral d) Dissatisfied
10. Rank the following factors which motivate you the most
a) Increase in salary b) Promotion c) Leave d) Power
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