A PROJECT REPORT ON EMPLOYEE RETENTION IN THE OBEROI UDAI VILAS

A PROJECT REPORT ON EMPLOYEE RETENTION IN THE OBEROI UDAI VILAS UDAIPUR

A Training Project Report

ACKNOWLEDGEMENTS There are many people who have provided invaluable assistance during the analyzing, writing and completion of this Project report on “Employee Retention� In particular, I would like to express my sincere appreciation to HR manager Mr. Raj Singh Sisodia who provided many forms of assistance, but best of all always kept us in good spirits through the completion of this Project, and would also like to mention names of some of the staff member Ms. XYZ, Mr. XYZ for their support and help. All of them provided support for this project and contributed to reviewing and editing the report.

I also thank all of the department heads and staff for providing the data and information on the programs covered in this report. Without their time and interest this project would not have been possible.

XYZ MBA (Human Resource)

PREFACE

The completion of this project has left us indebted to many persons whom are in the word. Mr. W. Wilson can be expressed as “I not only used all the brain I had but all could borrow.”

It is my great privileged to have the vocational training in such an esteemed business empire The Oberoi Udai Vilas, Udaipur.

The practical training is an essential requirement for an MBA student. The student has to take the training for the pre-described period as per the university norms. The purpose of training is to help to student to gain the industrial experience. Moreover, as for the utility of concerning, it can be said that the student gets a chance during her theoretical knowledge about the subject in field work & to clear the difficulties in a better way of looking the whole process in the person. I took my training at “Udai Vilas” a unit of The Oberoi Group of Hotels and Resorts.

CONTENTS

ACKNOWLEDGEMENT PREFACE CHAPTER-1

COMPANY PROFILE



ABOUT OBEROI GROUP



MISSION & VISION

CHAPTER-2 THE OBEROI GROUP:-AN OVERVIEW 

THE OBEROI UDAIVILAS



THE OBEROI GROUP - DHARMA



FOUNDER CHAIRMAN



CHAIRMAN & CEO

 AWARD & RECOGNITION CHAPTER-3

PROJECT PROFILE

•

EXECUTIVE SUMMERY

•

IMPORTANCE OF EMPLOYEE RETENTION CHAPTER-4 RESEARCH METHODOLOGY CHAPTER-5

RETENTION MANAGEMENT (CASE STUDY)

CHAPTER-6

EMPLOYEE RETENTION STRATEGIES

CHAPTER-7

CASE STUDIES

CHAPTER-8

FINDINGS

CHAPTER-9

SUGGESTIONS

CHAPTER-10 CONCLUSION CHAPTER-11 RECOMMENDATIONS CHAPTER-12 BIBLIOGRAPHY

COMPANY PROFILE The Oberoi Group The Oberoi Group, founded in 1934, operates 28 hotels and three cruisers in five countries under the luxury ‘Oberoi’ and five-star ‘Trident’ brands. The Group is also engaged in flight catering, airport restaurants, travel and tour services, car rentals, project management and corporate air charters.

Oberoi Hotels & Resorts is synonymous the world over with providing the right blend of service, luxury and quiet efficiency. Internationally acclaimed for all-round excellence and unparalleled levels of service, Oberoi hotels and resorts have received innumerable awards and accolades.

A distinctive feature of The Group’s hotels is their highly motivated and well trained staff that provides exceptionally attentive, personalized and warm service. The Group’s new luxury hotels have established a reputation for redefining the paradigm of luxury and excellence in service amongst leisure hotels around the world.

Trident hotels are five-star hotels that have established a reputation for excellence and are acknowledged for offering quality and value. These hotels combine state of the art facilities with dependable service in a caring environment, presenting the ideal choice for business and leisure travelers. At present there are nine Trident hotels in India.

These are located in Mumbai at Bandra Kurla and Nariman Point, Gurgaon (Delhi National Capital Region), Chennai, Bhubaneswar, Cochin, Agra, Jaipur and Udaipur.

The Oberoi Group also operates a Trident hotel in the Saudi Arabian city of Jeddah.

The last decade has witnessed the debut of new luxury Oberoi leisure hotels in India and abroad. In India, these hotels include The Oberoi Rajvilas, Jaipur; The Oberoi Amarvilas, Agra; Wildflower Hall, Shimla in the Himalayas; The Oberoi Vanyavilas, Ranthambhore; The Oberoi Cecil, Shimla and The Oberoi Udaivilas, Udaipur.

Overseas, the new hotels include The Oberoi, Lombok in Indonesia, The Oberoi,

Mauritius and The Oberoi, Sahl Hasheesh in Egypt. The Oberoi Zahra, Luxury Nile Cruiser, Egypt was launched in 2007.

The Group’s commitment to excellence, attention to detail and personalized service has ensured a loyal list of guests and accolades in the worldwide hospitality industry.

Recognizing the importance of quality training in hospitality management, The Oberoi Group established The Oberoi Centre of Learning and Development in New Delhi in 1966. Today, this institution is considered amongst the best in Asia with approximately 100 students graduating each year.

The Oberoi Group is committed to employing the best environmental and ecological practices in technology, equipment and operational processes. The Group also supports philanthropic activities that range from education to assistance for the mentally and physically challenged. The Group is also a keen contributor to the conservation of nature and of cultural heritage.

The Oberoi Group - Mission Our Guests We are committed to meeting and exceeding the expectations of our guests through our unremitting dedication to every aspect of service.

Our People We are committed to the growth, development and welfare of our people upon whom we rely to make this happen.

Our Distinctiveness Together, we shall continue the Oberoi tradition of pioneering in the hospitality industry, striving for unsurpassed excellence in high-potential locations all the way from the Middle East to Asia-Pacific.

Our Shareholders As a result, we will create extraordinary value for our stakeholders.

The Oberoi Group - Vision •

We see an organization which aims at leadership in the hospitality industry by

understanding its guests, and designing and delivering products and services which enable it to exceed their expectations. We will always demonstrate care for our customers through anticipation of their needs, attention to detail, distinctive excellence, warmth and concern.

•

We see a lean, responsive organization where decision making is encouraged at

each level and which accepts change. An organization that is committed and responsive to its guests and other stakeholders.

•

We see a multi-skilled workforce, which consists of team players who have pride

of ownership in translating the organization’s vision into reality.

•

We see an organization where people are nurtured through continuous learning

and skill improvement, and are respected, heard and encouraged to do their best.

Oberoi is recognized as best practice for training and developing its people.

•

We see a more multinational workforce which has been exposed to different

cultures, problems and situations and can use its experiences to enrich the local employees whether in India or overseas.

•

We see the world dotted with hotels of The Oberoi Group, in strategic

commercial and resort locations.

•

We see user-friendly technology enhancing value for our customers and helping

our personnel by making information more accessible.

•

We see an organization which is conscious of its role in the community,

supporting social needs and ensuring employment from within the local community.

•

We see an organization which is committed to the environment, using natural

products and recycling items, thus ensuring proper use of the diminishing natural resources.

The Oberoi Udaivilas Udaipur has been rated as the best city in the world by Travel + Leisure, USA in the 2009 Readers' Poll.

Udaipur, in the heart of Rajasthan, is a city of majestic palaces and beautiful lakes.

Here, adorning the banks of Lake Pichola and standing witness to the historic City Palace, The Oberoi Udaivilas captures all the romance and splendor of a royal era.

Conceived as a traditional Indian palace, The Oberoi Udaivilas showcases the rich heritage of the Mewar region of Rajasthan with its rambling courtyards, gentle rippling fountains, reflection pools and verdant gardens. Grand architecture inspired by the palaces of Rajasthan present a picture of majesty resplendent with pavilions and domes that lead you to a journey of discovery. Interiors embellished with decorative domes, hand painted frescoes, intricate mirror work and beautifully crafted artifacts create an ambience of regal splendor.

An enchanting boat ride across Lake Pichola transports you to the ceremonial welcome that awaits you at resort. Rooms with terraces that open on to semi-private swimming pools present exquisite views and are a unique feature of Udaivilas. Magnificently decorated suites with private swimming pools and outdoor dining pavilions are exclusive retreats.

Fine international cuisine, authentic flavors of Rajasthan or a quiet drink are all presented with views of the City Palace and Lake Pichola.

The luxurious spa with its own swimming pool overlooks the lake and is a haven of serenity. Trained therapists pamper body and soul with rejuvenating treatments. The resort also offers the opportunity to undertake private Yoga, meditations and Pranayam sessions with the resident Yoga teacher or explore the city steeped in the romance of the oldest living dynasty in the world.

At The Oberoi Udaivilas, the magnificent setting combines with royal service to make your holiday a journey into the romance and grandeur of another century. This resort offers an experience created exclusively for those who know there is nothing like too much luxury.

The Oberoi Group - Dharma We, as members of The Oberoi Group are committed to display through our behavior and actions the following conduct, which applies to all aspects of our business: •

Conduct which is of the highest ethical standards - intellectual, financial and

moral and reflects the highest levels of courtesy and consideration for others.

•

Conduct which builds and maintains teamwork, with mutual trust as the basis of

all working relationships.

•

Conduct which puts the customer first, the Company second and the self last.

•

Conduct, which exemplifies care for the customer through anticipation of need,

attention to detail, excellence, aesthetics and style and respect for privacy, along with warmth and concern.

•

Conduct which demonstrates a two-way communication, accepting constructive

debate and dissent whilst acting fearlessly with conviction.

•

Conduct which demonstrates that people are our key asset, through respect for

every employee, and leading from the front regarding performance achievements as well as individual development.

•

Conduct which at all times safeguards the safety, security, health and

environment of our customers, employees and the assets of the Company.

•

Conduct which eschews the short-term quick fix for the long-term establishment

of a healthy precedent.

Rai Bahadur M.S. Oberoi Founder Chairman, The Oberoi Group Early Life Rai Bahadur Mohan Singh Oberoi was born on 15th August, 1898 in erstwhile undivided Punjab, which is now in Pakistan. He was only six months old when his father died.

Success and fortune did not, therefore, come easily to him. Initiative, resourcefulness and hard work, combined with the capability to face and overcome the most overwhelming odds can best characterize this phenomenal entrepreneur.

Mr. M.S. Oberoi completed his primary education in Rawalpindi and moved to Lahore for his Bachelor’s degree. Shortly thereafter, to flee the ravages of a virulent plague, he went to seek his fortune in Shimla, the summer capital of British India. Arriving penniless, he found a job at a monthly salary of INR 50, as the front desk clerk at the Cecil Hotel. Today, The Oberoi Group owns the hotel The Oberoi Cecil where the young Mr. Oberoi found his métier.

The diligence, enthusiasm and intelligence displayed by Mr. Oberoi impressed Mr. Grove, the manager of the hotel. A quick learner, Mr. Oberoi did not restrict his efforts to fulfilling the job description of a desk clerk but sought and shouldered additional responsibilities. A few years later, when Mr. Clarke acquired a small hotel he asked Mr. Oberoi to assist him. It was here, at Clarkes Hotel, that Mr. Oberoi gained firsthand experience in all aspects of operating a hotel.

Budding Entrepreneur In 1934, Mr. Oberoi acquired his first property, The Clarkes Hotel, from his mentor by mortgaging his wife’s jewellery and all his assets. Four years later, he signed a lease to take over operations of the five hundred rooms Grand Hotel in Calcutta that was on sale following a cholera epidemic. With his customary confidence and sheer determination to succeed, he was able to convert this hotel into a highly profitable business venture.

Over several years, Mr. Oberoi had purchased shares in Associated Hotels of India (AHI), which owned Cecil and Corstophans hotels in Shimla, Maidens and Imperial

hotels in Delhi and a hotel each in Lahore, Murree, Rawalpindi and Peshawar. In 1943, Mr. Oberoi acquired controlling interest in AHI. He thus became the first Indian to run the country’s largest and finest hotel chain. In the tumultuous years just prior to Indian independence, Mr. Oberoi met and intimately interacted with the would-be leaders of Free India, all of whom were, at one time or other, guests at his hotels.

International Pioneer Having consolidated his early ventures, Mr. Oberoi became the first Indian hotelier to enter into an agreement with an internationally renowned hotel chain, to open the first modern, five-star hotel in the country. The Oberoi Inter Continental, in New Delhi opened in 1965. The I-Con, as it became popularly known, offered facilities that no other hotel in the country matched and was India’s first luxury hotel.

This achievement was enhanced with the opening of the 35-storey Oberoi Sheraton in Bombay, in 1973. Mr. Oberoi was the first Indian to work in association with international chains to woo international travelers to India. This led to a heavy influx of international travelers and foreign occupancy soared to an average of 85%. This enabled the Oberoi Hotels to significantly contribute to India’s foreign exchange earnings.

Another pioneering landmark was the establishment in 1966 of the prestigious Oberoi School of Hotel Management, recognized by the International Hotel Association in Paris. Considered India’s premier institute, the school is now known as The Oberoi Centre of Learning and Development and continues to provide high quality professional training in hospitality management.

Other notable firsts were the decision to employ women in his hotels and to establish a chain of ancillary industries producing and supplying items like consumables and stationery to ensure the highest quality. The Oberoi Group was also the first to start flight catering operations in India, in 1959. The Oberoi Flight Services, located in New

Delhi, Mumbai, Cochin and Chennai, provide in-flight meals of international quality to reputed airlines.

Mr. Oberoi realised that the hotel and hospitality business is greatly dependent on travel agents, a vital element in the distribution chain. Therefore, he decided to establish his own travel agency. Mercury Travels, part of The Oberoi Group, ranks amongst the leading travel agencies in India.

With vision and imagination, Mr. Oberoi converted old and dilapidated palaces, historical monuments and buildings into magnificent hotels such as The Oberoi Grand in Calcutta, the historic Mena House Oberoi in Cairo and The Windsor in Australia. It was, in fact, in the face of severe opposition that the State Government of Victoria awarded Mr. Oberoi the lease of The Windsor, a heritage building in Melbourne. He personally supervised the restoration of the hotel to its original grandeur and later acquired it. The Oberoi Cecil in Shimla, built in the early 20th century, reopened in April 1997 after extensive and meticulous renovation.

Awards and Honors In 1943, Mr. Oberoi was conferred the title of Rai Bahadur by the British Government in recognition of his services to the Crown. Thereafter, Mr. Oberoi won acclaim and received several national and international awards including admission to the Hall of Fame by the American Society of Travel Agents (ASTA) and Man of The World award by the International Hotel Association (IHA), New York. He was presented the Order of The Republic, First Class by the President of Egypt. He got an Honorary Doctorate of Business Administration from the International Management Centre, Buckingham, UK. Newsweek named him one of the Elite Winners of 1978. The PHDCCI Millennium award in 2000 was presented in recognition of his entrepreneurial and business success. In 2001, the Government of India accorded him the Padma Bhushan.

Globalization of The Oberoi Group To place The Oberoi Group on the world map, Mr. Oberoi exported management expertise to Australia, Egypt and Singapore, where The Oberoi Group took charge of

the management of existing luxury hotels. The success of Oberoi Hotels & Resorts overseas, in the face of global competition, greatly enhanced the image of The Group.

Today, Oberoi Hotels & Resorts in Indonesia, Egypt, Mauritius, Saudi Arabia and India add value and distinction to their host countries.

Foundations of the Future Under Mr. Oberoi’s dynamic leadership, The Oberoi Group introduced its second brand of hotels, ‘Trident’. Trident hotels are five-star hotels that have established a reputation for excellence and are acknowledged for offering quality and value. These hotels combine state of the art facilities with dependable service in a caring environment, making them the ideal choice for business and leisure travellers. Presently there are nine Trident hotels in India located in Mumbai at Bandra Kurla and Nariman Point, Gurgaon (Delhi National Capital Region), Chennai, Bhubaneshwar, Cochin, Agra, Jaipur and Udaipur. The Oberoi Group also operates a Trident hotel in the Saudi Arabian city of Jeddah.

In the luxury category, The Group opened The Oberoi Rajvilas, Jaipur; The Oberoi Cecil, Shimla; The Oberoi Udaivilas, Udaipur; The Oberoi Vanyavilas, Ranthambhore; The Oberoi Amarvilas, Agra; Wildflower Hall, Shimla in the Himalayas; The Oberoi, Lombok, Indonesia; The Oberoi, Sahl Hasheesh, Egypt; The Oberoi, Mauritius and The Oberoi Zahra, Luxury Nile Cruiser, Egypt.

The Group employs more than 12,000 people worldwide and operates 28 hotels and three cruisers in five countries.

Mr. Oberoi’s achievements and successes did not, however, take from his simplicity and old-fashioned charm. He retained, until his death in May 2002 at the age of 103, a unique humility. He was fond of saying, “I have been able to accept the challenge and make good. There is comfort in knowing that whatever little I have achieved has also helped to raise the prestige of my country.”

Mr. P.R.S. Oberoi Chairman and CEO, EIH Limited o

Mr. P.R.S. Oberoi is the Chairman and Chief Executive Officer of EIH Limited,

the flagship company of The Oberoi Group. He is also the Chairman of Oberoi Hotels Private Limited, the major shareholder of EIH Limited. Popularly known as "Biki", Mr. Oberoi is the son of late Rai Bahadur M.S. Oberoi, the founder of The Oberoi Group. o

Mr. P.R.S. Oberoi was educated in India, the United Kingdom and in Switzerland.

o

In addition to providing leadership for the management of luxury hotels in several

countries, Mr. Oberoi has been instrumental in pioneering the development of the new Oberoi hotels and resorts. The "Oberoi" brand has come to represent fine luxury hotels. o

Mr. Oberoi is credited with placing Oberoi hotels on the international luxury

travelers’ map with the opening of several new luxury hotels in important locations, thus redefining architectural and design standards in luxury hospitality. A key aspect of this is the development of hotels that reflect their environment.

o

It is Mr. Oberoi’s firm belief that people are the most valuable asset of any

organization. Recognizing the importance of quality in hospitality management, Mr. Oberoi established ‘The Oberoi Centre of Learning and Development’ at New Delhi in 1966. Today, this institution is considered amongst the best in Asia. o

As a member of the World Wide Fund for Nature, Mr. Oberoi is committed to the

conservation of the environment. o

Above all, Mr. Oberoi is aware of the need to constantly promote quality in every

segment of the hospitality industry. Under his leadership, Oberoi Hotels and Resorts have received numerous international awards. o

In 2001, His Majesty King Mohammed VI of Morocco personally awarded Mr.

Oberoi the Grand Officer of the Alalaoui Wissam, which is one of the highest awards in Morocco. The award was conferred in recognition of Mr. Oberoi’s contribution to tourism and to Indo-Moroccan relations. o

In recognition of his exceptional leadership and vision, the 6th International

Hotels Investment Forum in Berlin honored Mr. Oberoi with the prestigious Lifetime Achievement Award in March 2003. o

In January 2004, Mr. Oberoi was conferred a Special Award by the Department

of Tourism, Government of India, in recognition of his contribution to the tourism sector.

The letter from the Department stated, "Due to your entrepreneurial skills and visionary leadership, The Oberoi Group has risen to a global brand, renowned for its high standards of service and excellence". o

In October 2005, the Hotel Investment Conference Asia Pacific (HICAP), which is

the preeminent gathering of hotel investors, investment bankers and leading industry professionals in the region, honoured Mr. Oberoi with the Lifetime Achievement Award at its annual Conference in Hong Kong. This award was given in recognition of Mr. Oberoi’s contribution to the hospitality industry and his pioneering leadership in making The Oberoi Group a global brand by taking the concept of luxury to a new paradigm.

o

Mr. Oberoi was also conferred the Lifetime Achievement Award at the CNBC TV

18 India Business Leader Awards 2007 for building a world-class hotel chain that caters to both luxury and business travelers and for shaping the hospitality industry of the country. o

India Business Leader Awards, the Indian Edition of Asia Business Leader

Awards, define and celebrate vision, the spirit of achievement and excellence in business leadership. o

In January 2008, Mr. Oberoi was awarded the Padma Vibhushan, India’s second

highest civilian honor, in recognition of his exceptional service to the country. o

Mr. Oberoi received the Lifetime Achievement Award at the South Asia Travel &

Tourism Exchange (SATTE) and the 4th Hotel Investment Conference – South Asia (HICSA) in April 2008. In August 2008, Mr. Oberoi was presented with the Lifetime Achievement Award at the Business world-NID (National School of Design) Design Brilliance Awards. These awards honor new levels of excellence in design. o

Mr. Oberoi received the Outstanding Business Leader Award from the

Associated Chambers of Commerce and Industry (ASSOCHAM) and Society of Indian Law Firms in September 2008. This award was presented in recognition of Mr. Oberoi’s leadership in establishing high standards of excellence which has won The Oberoi Group international acclaim. o

In November 2008, Mr. Oberoi was conferred the Lifetime Achievement Award at

the Ernst & Young Entrepreneur of the Year Awards for redefining design standards in luxury hotels. o

Business India magazine adjudged Mr. Oberoi the Businessman of the Year

2008. Mr. Oberoi received this award for building a world-class premium hospitality brand. o

Mr. Oberoi was honored with the first Hall of Fame Award at the Hotel Investment

Forum India (HIFI) in February 2009. The HIFI Hall of Fame Award is presented to an

individual who exemplifies outstanding business practices, leadership and achievement, both professionally and personally. o

In September 2009, Mr. Oberoi received the Lifetime Achievement Award at the

first Economic Times TAAI Travel Awards 2009. These awards were organized by The Economic Times in association with the Travel Agents Association of India (TAAI). o

Mr. Oberoi was presented with the '2010 Corporate Hotelier of the World' award

by HOTELS magazine in November 2010. This annual award is determined by votes cast by readers of the magazine in more than 150 countries. The cover story of the November edition of the magazine referred to Mr. Oberoi as ‘the founder father of modern luxury hospitality in India’ and credited him with growing the company ‘into one of the world’s most prestigious luxury hotel groups’.

Awards Award

Awarded By

Top 15 Resorts in Asia

Travel + Leisure, World's Best Awards,

(Ranked 1st)

Readers' Survey 2011

Top 100 Hotels in the World

Travel + Leisure, World's Best Awards,

(Ranked 5th)

Readers' Survey 2011

Best Leisure Hotels in Asia and the Indian

Condé Nast Traveller, UK, Readers’ Travel

Subcontinent

Awards 2010

(Ranked 1st) Top 15 Resorts in Asia

Travel + Leisure, World's Best Awards,

(Ranked 4th)

Readers' Survey 2010

Top 100 Hotels in the World

Travel + Leisure, World's Best Awards,

(Ranked 15th)

Readers' Survey 2010

Top Hotels in Asia for Service

Travel + Leisure, World’s Best Service

(Ranked 3rd)

Awards, Readers’ Survey 2010

Top Hotels in the World for Service

Travel + Leisure, World’s Best Service

(Ranked 9th)

Awards, Readers’ Survey 2010

Top 100 Hotels in Asia

Condé Nast Traveler, USA, Readers’

(Ranked 5th)

Choice Awards 2010

Top 100 Hotels in the World

Condé Nast Traveler, USA, Readers’

(Ranked 20th)

Choice Awards 2010

Top 100 Hotels in Asia

Condé Nast Traveler, USA, Readers’

(Ranked 1st)

Choice Awards 2009

Top 100 Hotels in the World

Condé Nast Traveler, USA, Readers’

(Ranked 6th)

Choice Awards 2009

Top 15 Resorts in Asia

Travel + Leisure, World's Best Awards,

(Ranked 3rd)

Readers' Survey 2009

Top 100 Hotels in the World

Travel + Leisure, World's Best Awards,

(Ranked 8th)

Readers ‘Survey 2009

Favorite Overseas Hotel Spa: Asia & the

Condé Nast Traveller, UK, Readers' Spa

Indian Subcontinent

Awards 2010

(Ranked 9th)

Amongst the ‘World's Most Exclusive

Forbes.com, World's Most Exclusive Hotels

Hotels’

2009

Best Hotels and Resorts in the World

Forbes Traveler 400, The World’s Best Hotels and Resorts 2009

Winner of the Sustainable Destinations

Hotel Investment Conference Asia Pacific

Award

(HICAP) 2009 Sustainable Hotel Awards

Amongst nominees for the 'Hotel of the

Virtuoso, Best of the Best Awards 2008

Year' award Top 100 Hotels in Asia

Condé Nast Traveler, USA, Readers’

(Ranked 1st)

Choice Awards 2008

Top 100 Hotels in the World

Condé Nast Traveler, USA, Readers’

(Ranked 4th)

Choice Awards 2008

Top 50 Hotels in Asia

Travel + Leisure, World’s Best Awards,

(Ranked 2nd)

Readers’ Survey 2008

Top 100 Hotels in the World

Travel + Leisure, World’s Best Awards,

(Ranked 4th)

Readers’ Survey 2008

Top Hotels in Asia for Service

Travel + Leisure, World’s Best Service

(Ranked 5th)

Awards, Readers’ Survey 2009

Top International not Urban Hotel

Condé Nast Traveler, Spain, Readers’

(Ranked 1st)

Choice Awards 2008

Best Hotels and Resorts in the World

Forbes Traveler 400, The World’s Best Hotels and Resorts 2008

Amongst best hotels in Asia

The Ultra travel Top 100 Awards, Readers’ Poll 2009

Best Hotel Spas in Asia and the Indian

Condé Nast Traveller, UK, Readers' Spa

Subcontinent

Awards 2008

(Ranked 1st in India) Top 10 Luxury Hotels in India

Trip Advisor, Travelers’ Choice Awards

(Ranked 5th)

2009

Top 100 Hotels in the World

Travel + Leisure, World’s Best Awards,

(Ranked 1st)

Readers’ Survey 2007

Top Hotels in Asia

Travel + Leisure, World’s Best Awards,

(Ranked 1st)

Readers’ Survey 2007

Top 100 Hotels in the World

Condé Nast Traveler, USA, Readers’

(Ranked 2nd)

Choice Awards 2007

Top Hotels in Asia

Condé Nast Traveler, USA, Readers’

(Ranked 1st )

Choice Awards 2007

Best Hotels in the World for Rooms:

Condé Nast Traveler, USA, Gold List 2008

Amongst those with score of 100 Best Hotels in the World for Service:

Condé Nast Traveler, USA, Gold List 2008

Amongst those with score of 100 Best Hotels in the World for Location:

Condé Nast Traveler, USA, Gold List 2008

Amongst those with score of 100 Best Hotels in the World for Design:

Condé Nast Traveler, USA, Gold List 2008

Amongst those with score of 100 Best Hotels in the World for Food:

Condé Nast Traveler, USA, Gold List 2008

Amongst those with a high score Top Hotels in the World for Service

Travel + Leisure, World’s Best Service

(Ranked 7th)

Awards, Readers’ Survey 2007

Best Hotels and Resorts in the World

Forbes Traveler 400, The World’s Best Hotels and Resorts 2007

Asia’s Leading Suite:

World Travel Awards 2007

The Kohinoor Suite Top Small Hotels in the World:

Zagat Survey, World’s Top Hotels, Resorts

Amongst hotels with the 2nd highest score

and Spas 2007-2008

Top Service in the World:

Zagat Survey, World’s Top Hotels, Resorts

Amongst hotels with the highest score

and Spas 2007-2008

Top Rooms in the World:

Zagat Survey, World’s Top Hotels, Resorts

Amongst hotels with the highest score

and Spas 2007-2008

Top Facilities in the World

Zagat Survey, World’s Top Hotels, Resorts

Amongst hotels with the highest score

and Spas 2007-2008

10 Leading Small Hotels, Resorts & Inns in Zagat Survey, World’s Top Hotels, Resorts the World

and Spas 2007-2008

(Ranked 6th) Grand Award Winner:

Andrew Harper’s Hideaways Report 2007

World’s most captivating hideaways Best Hotels in the World for Service:

Condé Nast Traveler, USA, Gold List 2007

Amongst those with a score of 100 Best Hotels in the World for Rooms:

Condé Nast Traveler, USA, Gold List 2007

Amongst those with a score of 100 Best Hotels in the World for Design:

Condé Nast Traveler, USA, Gold List 2007

Amongst those with a score of 100 The World’s Best Hotels

Travel + Leisure, T+L 500, 2007

Top Hotels in Asia for Service

Travel + Leisure, World’s Best Service

(Ranked 3rd)

Awards, Readers’ Survey 2007

Best Hotels in the World for Service

Condé Nast Traveller, UK, The Gold List

(Ranked 1st)

2006

Top 100 Hotels in the World

Travel + Leisure, World’s Best Awards,

(Ranked 3rd)

Readers’ Survey 2006

Top 75 Hotels in Asia

Condé Nast Traveler, USA, Readers’

(Ranked 5th)

Choice Award 2006

Top 25 Spas in the World

Condé Nast Traveller, UK, Readers’ Spa

(Ranked 14th)

Awards 2006

Best Hotels and Resorts in the World

Forbes Traveler 400, The Best Hotels and Resorts in the World 2006

Asia’s Leading Resort

World Travel Awards 2006

101 Best Hotels in the World

Tatler Travel Guide 2006

Top Resorts in Asia

Condé Nast Traveler, USA, Readers’

(Ranked 6th)

Choice Awards 2005

Best New Hotels / Resorts Discovery

Gallivanter’s Guide, Award for Excellence

(Ranked 3rd)

2005

Hotel of the Year 2003

Gallivanter’s Guide, Editor’s Choice Award 2004

The Best Destinations of 2003

Forbes magazine 2004

Best Suites Award

Elite Traveler Award 2004

Top 50 Coolest New Hotels in the World

Condé Nast Traveler, USA, Hot List 2003

Winner of Spa Sanctuaries Category

Harper’s Abroad Travel Supplement 2003

Best New Hotels in the World

Condé Nast Traveller, UK, The Hot List 2003

101 Best Hotels: New Sensations

Tatler Travel Guide 2003

‘One in a Million’ Rating

Gallivanter’s Guide 2002

100 Fabulous Places for 2001

Travel + Leisure 2001

(Ranked 12th)

Executive Summary Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project.

Employee retention is beneficial for the organization as well as the employee. Employees today are different. They are not the ones who don’t have good opportunities in hand. 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 employer to retain their best employees. If they don’t, they would be left with no good employees. A good employer should know how to attract and retain its employees.

Most employees feel that they are worth more than they are actually paid. There is a natural disparity between what people think they should be paid and what organizations spend in compensation. When the difference becomes too great and another opportunity occurs, turnover can result. Pay is defined as the wages, salary, or compensation given to an employee in exchange for services the employee performs for the organization. Pay is more than "dollars and cents;" it also acknowledges the worth and value of the human contribution. What people are paid has been shown to have a clear, reliable impact on turnover in numerous studies. Employees comprise the most vital assets of the company.

In a work place where employees are not able to use their full potential and not heard and valued, they are likely to leave because of stress and frustration. In a transparent environment while employees get a sense of achievement and belongingness from a healthy work environment, the company is benefited with a stronger, reliable work-force harboring bright new ideas for its growth Introduction Employee turnover is one of the largest though widely unknown costs an organization faces. While companies routinely keep track of various costs such as supplies and payroll, few take into consideration how much employee turnover will cost them: Ernst & Young estimates it costs approximately $120,000 to replace 10 professionals. According to research done by Sibson & Company, to recoup the cost of losing just one employee a fast

food restaurant must sell 7,613 combo meals at $2.50 each. Employee turnover costs companies 30 to 50% of the annual salary of entry-level employees, 150% of middle-level employees, and up to 400% for upper level, specialized employees. Now that so much is being done by organizations to retain its employees, why is retention so important? Is it just to reduce the turnover costs? Well, the answer is a definite no. It’s not only the cost incurred by a company that emphasizes the need of retaining employees but also the need to retain talented employees from getting poached.

Retention involves five major things: Ø Compensation Ø Environment Ø Growth Ø Relationship Ø Support Compensation Compensation constitutes the largest part of the employee retention process. The employees always have high expectations regarding their compensation packages.

Compensation packages vary from industry to industry. So an attractive compensation package plays a critical role in retaining the employees. Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc. While setting up the packages, the following components should be kept in mind.

Salary and monthly wage: It is the biggest component of the compensation package. It is also the most common factor of comparison among employees. It includes: •

Basic wage

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House rent allowance

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Dearness allowance

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City compensatory allowance

 Salary and wages represent the level of skill and experience an individual has. Time to time increase in the salaries and wages of employees should be done. And this increase should be based on the employee’s performance and his contribution to the organization. Bonus: Bonuses are usually given to the employees at the end of the year or on a festival. Economic benefits: It includes paid holidays, leave travel concession, etc. Long-term incentives: Long term incentives include stock options or stock grants.

These incentives help retain employees in the organization's startup stage. Health insurance: Health insurance is a great benefit to the employees. It saves employees money as well as gives them a peace of mind that they have somebody to take care of them in bad times. It also shows the employee that the organization cares about the employee and its family. After retirement: It includes payments that an Employee gets after he retires like EPF (Employee Provident Fund) etc. Miscellaneous compensation: It may include employee assistance programs (like psychological counseling, legal assistance etc), discounts on company products, use of a company cars, etc.

Employers are Key Drives To Attract And Retain Talent: Some Examples can be: 

Procter and Gamble India:

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Early responsibilities in career

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Flexible and transparent organizational culture

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Global opportunities through a variety of exposure and diverse experiences

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Performance Recognition

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American Express (India):

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Strong global brand

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Value-based environment

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Pioneer in many people practices

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NTPC:

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Learning and growth opportunities

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Competitive rewards

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Opportunity to grow, learn and implement

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Strong social security and employee welfare

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Performance- oriented culture

Johnson & Johnson: •

Strong values of trust, caring fairness, and respect within the organization

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Freedom to operate at work

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Early responsibility in career

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Training and learning opportunities

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Visible, transparent and accessible leaders

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Competitive rewards

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Innovative HR programs and practices

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Glaxo Smith Kline Consumer Healthcare:

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Performance-driven Rewards

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Its belief in “Growing our own timber”

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Comprehensive development and learning programs

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Flat organization, where performance could lead to very quick progression

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Challenging work context

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Competitive rewards

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Exhaustive induction and orientation program

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Tata Steel:

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Organization philosophy and culture

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Job stability

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Freedom to work and innovate

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Colgate Palmolive India:

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Company brand

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Open , transparent, and caring organization

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Management according to the managing with respect to guiding principles

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Training and development programs

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Structured career planning process

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Global career opportunities

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Wipro:

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Company’s brand as an employer

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Early opportunities for growth

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High degree of autonomy

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Value compatibility

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Innovative people program

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Indian Oil Corporation:

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Company brand image

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Work ethics

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Learning and growth opportunities

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Challenging work assignments

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Growing organization

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TCS:

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The group brand equity

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Strong corporate governance and citizenship

Commitment to learning and development o

Best in people practices

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Challenging assignments

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Opportunity to work with fortune 500 clients

Organization Environment It is not about managing retention. It is about managing people. If an organization manages people well, employee retention will take care of itself. Organizations should focus on managing the work environment to make better use of the available human assets. People want to work for an organization which provides: Ø Appreciation for the work done Ø Ample opportunities to grow Ø A friendly and cooperative environment Ø A feeling that the organization is second home to the employee

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Organization environment includes:

o Culture o Values o Company reputation o Quality of people in the organization o Employee development and career growth o Risk taking o Leading technologies o Trust Types of environment the employee needs in an organization: •

Learning environment:

o It includes continuous learning and improvement of the individual, certifications and provision for higher studies, etc.

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Support environment:

o Organization can provide support in the form of work-life balance. Work life balance includes:

o Flexible hours o Telecommuting o Dependent care

o Alternate work schedules o Vacations o Wellness

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Work environment:

o It includes efficient managers, supportive co-workers, challenging work, involvement in decision-making, clarity of work and responsibilities, and recognition. Lack or absence of such environment pushes employees to look for new opportunities. The environment should be such that the employee feels connected to the organization in every respect.

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Growth and Career:

o Growth and development are the integral part of every individual’s career. If an employee can not foresee his path of career development in his current organization, there are chances that he’ll leave the organization as soon as he gets an opportunity.

The important factors in employee growth that an employee looks for himself are: •

Work profile:

o The work profile on which the employee is working should be in sync with his capabilities. The profile should not be too low or too high.

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Personal growth and dreams:

o Employee’s responsibilities in the organization should help him achieve his personal goals also. Organizations cannot keep aside the individual goals of employees and foster organizations goals. Employees’ priority is to work for them and later on comes

the organization. If he’s not satisfied with his growth, he’ll not be able to contribute in organization growth.

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Training and development: Employees should be trained and given chance to improve and enhance their skills.

Many employers fear that if the employees are well rained, they’ll leave the organization for better jobs. Organization should not limit the resources on which organization’s success depends. These trainings can be given to improve many skills like: Communications skills

o Technical skills

o In-house processes and procedures improvement related skills o C or customer satisfaction related skills o Special project related skills

Need for such training can be recognized from individual performance reviews, individual meetings, employee satisfaction surveys and by being in constant touch with the employees.

Importance of Relationship in Employee Retention Program: Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. The management is sometimes not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. This decreases employee’s interest and he becomes de-motivated. It leads to less satisfaction and eventually attrition.

A supportive work culture helps grow employee professionally and boosts employee

satisfaction. To enhance good professional relationships at work, the management should keep the following points in mind.

Respect for the individual: Respect for the individual is must in the organization. Relationship with the immediate manager: A manger plays the role of a mentor and a coach. He designs and plans work for each employee. It is his duty to involve the employee in the processes of the organization. So an organization should hire managers who can make and maintain good relations with their subordinates. Relationship with colleagues: Promote team work, not only among teams but in different departments as well. This will induce competition as well as improve the Relationship among colleagues.

Recruit whole heartedly: An employee should be recruited if there is a proper place and duties for him to perform.

Otherwise he’ll feel useless and will be dissatisfied. Employees should know what the organization expects from them and what their expectation from the organization is.

Deliver what is promised. Promote an employee based culture: The employee should know that the organization is there to support him at the time of need. Show them that the organization cares and he’ll show the same for the organization. An employee based culture may include decision making authority, availability of resources, open door policy, etc.

Individual development: Taking proper care of employees includes acknowledgement to the employee’s dreams and personal goals. Create opportunities for their career growth by providing mentorship programs, certifications, educational courses, etc. Induce loyalty: Organizations should be loyal as well as they should promote loyalty in the employees too. Try to make the

current employees stay instead of recruiting new ones.

Support Lack of support from management can sometimes serve as a reason for employee retention. Supervisor should support his subordinates in a way so that each one of them is a success. Management should try to focus on its employees and support them not only in their difficult times at work but also through the times of personal crisis.

Management can support employees by providing them recognition and appreciation.

Employers can also provide valuable feedback to employees and make them feel valued to the organization.

The feedback from supervisor helps the employee to feel more responsible, confident and empowered. Top management can also support its employees in their personal crisis by providing personal loans during emergencies, childcare services, employee assistance Programs, counseling services, etc Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees. Thus employers can support their employees in a number of ways as follows: Ø By providing feedback Ø By giving recognition and rewards Ø By counseling them Ø By providing emotional support

RESEARCH METHODOLOGY Research Design: The research design indicates the type of research methodology under taken to collect the information for the study.

The researcher used both descriptive and analytical type of research design for his research study. The main objective of using descriptive research is to describe the state of affairs as it exists at present. It mainly involves surveys and fact finding enquiries of different kinds. The researcher used descriptive research to discover the characteristics of customers. Descriptive research also includes demography characteristic of consumer who use the product.

The researcher also used analytical research design to analyze the existing facts from the data collected from the customer.

Area of study: The area of study is confined to employees of THE OBEROI UDAI VILAS, Udaipur.

Research instrument: The Structured questionnaire is used as the research instrument for the study.

Questionnaire Design: The questionnaire framed for the research study is a structured questionnaire in which all the questions are predetermined before conducting the survey. The form of question is of both closed and open type.

The scales used to evaluate questions are:

o Dichotomous scale (Yes or No) o Likert 5 point scale (Highly satisfied, satisfied, Neither Satisfied nor dissatisfied, Dissatisfied, Highly dissatisfied) o Category scale (Multiple items) o Ranking type (R1, R2, R3‌)

The questionnaire for the research was framed in a clear manner such that it enables the respondents to understand and answer the question easily. The questionnaire was designed in such a way that the questions are short and simple and is arranged in a logical manner.

Pilot study It is appropriate to conduct pilot survey to check the reliability of the questionnaire. So pilot study was conducted on 5 respondents which is a 10% of the sample.

Sampling design A Sample design is a definite plan for obtaining a sample from a given population. It is the procedure used by the researcher in selecting items for the sample.

Sample size Sample size=125 samples, variance and confidence methods are used for determining sample size.

Sampling Technique: The researcher adopted simple random sampling for the study.

DATA COLLECTION METHOD

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Primary data Primary data is the new or fresh data collected from the respondents through structured scheduled questionnaire.

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Secondary data The secondary data are collected through the structured questionnaire, literature

review and also from the past records maintained by the company.

STATISTICAL TOOLS AND TECHNIQUES PERCENTAGE ANALYSIS: Percentage = (No. of respondents/ total no. of respondents)*100 WEIGHTED AVERAGE METHOD: Formula: Mean score = total score/no of respondents.

Where total score = no of respondents*weighted average

CHI – SQUARE TEST: 1. Null Hypothesis (Ho): There is no difference in attributes 2. Alternate Hypothesis (H1): There is a difference in attributes 3. Level of significance α = 0.05 4. Degrees of freedom = (r-1)(c-1) 5. Expected frequency: E = R.T × C.T G.T 6. Calculation of: ∑ = ∑ (O-E) ² E 7. The tabulated value of at given level of significance with (r-1)(c-1) Degrees of freedom ONE RUN TEST Null hypothesis (H0): There is a no significant relationship between the variables Alternate hypothesis (H1): There is significant relationship between the variables µr = 2 n1 n2 + 1 n1 + n2

2 n1 n2- n1- n1 σr = 2 n1n2 (n1+ n2)2 (n1+ n2-1 )

Lower limit = µr + (2.58) σ Upper limit = µr + (2.58) σ

KENDALL’S COEFFICIENT OF CONCORDANCE: Null hypothesis (H0): There is a difference in attributes Alternate hypothesis (H1): There is no difference in attributes ∑ Rj = (Rj-Rj)2 S= Rj = ∑ Rj LIMITATIONS OF THE STUDY 1. The findings of the study are subjected to bias and prejudice of the respondents.

2. Area of the study is confined to the employees in Chennai only.

3. Time factor can be considered as a main limitation.

4. The findings of the study are solely based on the information provided by the respondents.

5. The accuracy of findings is limited by the accuracy of statistical tools used for analysis.

6. Findings of the research may change due to area, demography, age condition of economy etc.

Chi-Square Test To find whether there exist a significant relationship between Work Culture of the Company and interpersonal relationship between employees.

H0: There is a no significant relationship between Work Culture of the Company and interpersonal relationship between employees.

H1: There is a significant relationship between Work Culture of the Company and interpersonal relationship between employees.

Calculated value is more than table value therefore accepts H0 Result: There is a significant relationship between overall satisfaction and aspects of job.

KENDALL’S COEFFICIENT OF CONCORDANCE Null hypothesis (H0): There is a no significant difference in the rank assigned by respondents towards the attributes that gives them satisfaction in the company.

Alternate hypothesis (H1): There is a significant difference in the rank assigned by respondents towards the attributes that gives them satisfaction in the company.

Ranking Based on Satisfaction

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K=20

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Salary

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Superior Role

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Team Coordination

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Work responsibilities

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Rules and Policies

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Physical work environment

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Training Calculated value : S= 5815.714 Table value : 1158 Calculated value is more than table value therefore reject H0 Result: There is a significant difference in the rank assigned by respondents towards the attributes that gives them satisfaction in the company.

ONE RUN TEST Null hypothesis (H0): The samples are not taken randomly.

Alternate hypothesis (H1): The samples are taken randomly.

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EMPLOYEE’S SATISFACTION REGARDING MONETARY BENEFITS PROVIDED BY THE COMPANY.

Retention Management Abstract: •

Background: Retention management is a highly topical subject and an important dilemma many organizations might face in the future, if not facing it already. We believe that the leader plays a key role in employee retention and retention management. The concept of retention management can both have a narrow, and a broader significance. Both parts of its significance are generally included in this thesis. The background of the thesis present a few articles that discuss issues that makes it important for the organization, and the leaders, to work hard with retention management. The research is based on the leaders in the Finnish case company Tradeka. Following key questions are intended to be answered: What are the consequences between leaders actions and employees retention? Which is the leader’s role when it comes to retaining employees? Purpose statement: The purpose of the thesis is to investigate and analyze how company leaders today can retain their key employees. How can the provision of key human resources develop a long-term relationship that makes top employees stay in the company? The study aims to establish the procedure leaders apply to retain employees.

The purpose is to compare the qualitative study, made at the case company, with findings from the thesis theoretical framework. Research method: The study is a qualitative, as well as a theoretical study where empirical findings and theories has been compared. The intention of investigating and using the Finnish company Tradeka Limited as a case company, is to make the information from the theories more valid, and also the interest in how retention management works in practice. Eleven qualitative interviews were conducted at Tradeka’s financial department, both with supervisors and employees to get a broader view at the phenomenon retention management. Result:

Leaders and their skill in creating a culture of retention, has becoming a key in why people stay and what usually drives them away from a company. The leader has become the main factor in what motivates people’s decision to stay or leave. For organizations to keep its key employees their number one priority should be to look at their management, because people leave managers and not companies. Characteristics in a leader that are of importance, as the leader plays a key role in retention management is: trust builder, esteem builder, communicator, talent developer and coach, and talent finder. The leader’s relation to the employees plays a central role in retaining employees, because employees need to feel involvement, and that their presence count. When retention is a core value, good things happen for customers, employees, and the company.

Employee Retention Strategies The basic practices which should be kept in mind in the employee retention strategies are: 1. Hire the right people in the first place.

2. Empower the employees: Give the employees the authority to get things done.

3. Make employees realize that they are the most valuable asset of the organization.

4. Have faith in them, trust and respect them.

5. Provide them information and knowledge.

6. Keep providing them feedback on their performance.

7. Recognize and appreciate their achievements.

8. Keep their morale high.

9. Create an environment where the employees want to work and have fun. These practices can be categorized in 3 levels: 1. Low 2. Medium

3. High level.

Low Level Employee Retention Strategies: 1) Appreciating and 2) recognizing a well done job 3) Personalized well done and thank-you cards from supervisors 4) Congratulations e-cards or cards sent to spouses/families 5) Voicemails or messages from top management 6) Periodic days off for good performance 7) Rewards ( gift, certificates, monetary and non monetary rewards) 8) Recognizing professional as well as personal significant events 9) Wedding gifts 10)Anniversary gifts.

11)New born baby gifts 12)Scholarships for employee’s children 13)Get well cards/flowers 14)Birthday cards, celebrations and gifts 15)Providing benefits 16)Home insurance plans 17)Legal insurance 18)Travel insurance 19)Disability programs

20)Providing perks: It includes coupons, discounts, rebates, etc 21)Discounts in cinema halls, museums, restaurants, etc.

22)Retail store discounts 23)Computer peripherals purchase discounts 24)Providing workplace conveniences 25)On-site ATM 26)On-site facilities for which cost is paid by employees 27)Laundry facility for bachelors 28)Shipping services 29)Assistance with tax calculations and submission of forms 30)Financial planning assistance 31)Casual dress policies 32)Facilities for expectant mothers 33)Parking 34)Parenting guide 35)Lactation rooms 36)Flexi timings 37)Fun at work 38)Celebrate birthdays, anniversaries, retirements, promotions, etc 39)Holiday parties and holiday gift certificates 40)Occasional parties like diwali, holi, dushera, etc

41)Organize get together for watching football, hockey, cricket matches 42)Organize picnics and trips for movies etc 43)Sports outings like cricket match etc 44)Indoor games 45)Occasional stress relievers 46)“Casual dress” day 47)“Green is the color” day 48)Handwriting analysis 49)Tattoo, mehandi, hair braiding stalls on weekends 50)Mini cricket in office 51)Ice cream Fridays 52)Holiday breakfast 53)Employee support in tough time or personal crisis 54)Personal loans for emergencies 55)Childcare and eldercare services 56)Employee Assistance Programs (Counseling sessions etc) 57)Emergency childcare services

Medium Level Strategies for Employee Retention •

Appreciating and recognizing a well done job

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Special bonus for successfully completing firm-sponsored certifications

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Benefit programs for family support

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Child adoption benefits

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Flexible benefits

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Dependents care assistance

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Medical care reimbursement

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Providing conveniences at workplace

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Gymnasiums

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Athletic membership program

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Providing training and development and personal growth opportunities

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Sabbatical programs

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Professional skills development

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Individualized career guidance

High Level Strategies

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Promoting Work/Life

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Effectiveness

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Develop flexible schedules

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Part-time schedules

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Extended leaves of absence

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Develop Support Services

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On-site day care facility etc.

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Understand employee needs: This can be done through proper management style and culture

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Listen to the employee and show interest in ideas

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Appreciate new ideas and reward risk-taking

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Show support for individual initiative

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Encourage creativity

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Encouraging professional training and development and/or personal growth opportunities: It can be done through:

o Mentoring programs o Performance feedback programs o Provide necessary tools to the employees to achieve their professional and personal goals o Getting the most out of employee interests and talents o

Higher study opportunities for employees

o Vocational counseling o Offer personalized career guidance to employee •

Provide an environment of trust: Communication is the most important and effective way to develop trust.

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Suggestion committees can be created

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Open door communication policy can be followed

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Regular feedbacks on organization’s goals and activities should be taken from the employees by:

o Management communications o Intranet and internet can be used as they provide 24X7 access to the information Newsletters, notice boards, etc.

Hire the right people from the beginning: Employee retention is not a process that begins at the end. The process of retention begins right from the start of the recruitment process.

The new joinees should fit with the organization’s culture. The personality, leadership characteristics of the candidate should be in sync with the culture of the hiring organization.

Referral bonus should be given to the employees for successful hires. They are the best source of networking. Proper training should be given to the managers on interview and management techniques. An internship program can be followed to recruit the fresh graduates.

Retention Success Mantra Transparent Work Culture: In today’s fast paced business environments where employees are constantly striving to achieve business goals under time restrictions; open minded and transparent work

culture plays a vital role in employee retention. Companies invest very many hours and monies in training and educating employees. These companies are severely affected when employees check out, especially in the middle of some big company project or venture. Although employees most often prefer to stay with the same company and use their time and experience for personal growth and development, they leave mainly because of work related stress and dissatisfactions. More and more companies have now realized the importance of a healthy work culture and have a gamut of people management good practices for employees to have that ideal fresh work-life. Closed doors work culture can serve as a deterrent to communication and trust within employees which are potential causes for work- Related apathy and frenzy.

A 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 exchange 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. More importantly, transparency in work environment discourages work-politics which often hinders company goals as employees start to advance their personal objectives at the expense of development of The Company as a single entity. .

Quality of Work: The success of any organization depends on how it attracts recruits, motivates, and retains its workforce. Organizations need to be more flexible so that they develop their talented workforce and gain their commitment. Thus, organizations are required to retain employees by addressing their work life issues. The elements that are relevant to an individual’s quality of work life include the task, the physical work environment, social environment within the organization, administrative system and relationship between life on and off the job.

The basic objectives of a QWL program are improved working conditions for the Employee and increase organizational effectiveness. Providing quality work life involves taking care of the following aspects: Occupational health care: The safe work environment provides the basis for the person to enjoy working. The work should not pose a health hazard for the person. The employer and employee, aware of their risks and rights, could achieve a lot in their mutually beneficial dialogue.

Suitable working time: Organizations are offering flexible work options to their employees wherein employees enjoy flexi-timings for dedicating their efforts at work. Appropriate salary: The appropriate as well as attractive salary has always been an important factor in retaining employees. Providing employees salary at par with the other counterparts of above that what competitors are paying motivates them to stick with the company for long. QWL 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. People also conceive of QWL 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 organization and an environment in which this commitment can flourish. Providing quality at work not only reduces attrition but also helps in reduced absenteeism and improved job satisfaction. Not only does QWL contribute to a company's ability to recruit quality people, but also it enhances a company's competitiveness. Common beliefs support the contention that QWL will positively nurture a more flexible, loyal, and motivated workforce, which are essential in determining the company's competitiveness.

Supporting Employees: Organizations these days want to protect their biggest and most valuable asset and they want to do this in a way that best suits their organizational culture. Retaining employees is a difficult task. Providing support to the employees acts as a mantra for

retraining them. Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees.

The management can support employees directly or indirectly. Directly, they provide support in terms of personal crises, managing stress and personal development.

Management can support employees, indirectly, in a number of ways as follows: Manage employee turnover: Employee turnover affects the whole organization in terms of productivity. Managing the turnover, hence, becomes an important task. A proactive approach can be adopted to reduce attrition. Strategies should be framed in advance and implemented when the times arrives. Turnover costs should also be taken into consideration while framing these strategies.

Become employer of choice: What makes a company an employer of choice? Is the benefit it offers or the compensation packages it gives away to its employees? Or is it measured in terms of how they value their employees or in terms of customer satisfaction? Becoming an employer of choice involves following a road map which tells where to go as a brand.

Engage the new recruits: The newly hired employees are said to be least engaged in the organization. Keeping them engaged is an important task. The fresh talent should be utilized to maximum before they start feeling bored in the organization.

Optimize employee engagement: An organization’s productivity is measured not in terms of employee satisfaction but by employee engagement. Employees are said to be engaged when they show a positive attitude toward the organization and express a commitment to remain with the organization. Employee satisfaction also comes with high engagement levels. So, organizations should aim to maximize the engagement among employees.

Coaching and mentoring: Employees whose work performance suffers due to poor interpersonal relationships or because of lack of interpersonal skills should be provided proper coaching by their superiors. Planed coaching sessions help an individual to work through issues, maximize his potential and return to peak performance.

Feedback: Feedback acts as a channel of communication between the employee and his manager.

The amount of information employees receive about how well or how poorly they have performed is what we call feedback. It is a dialog between a 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.

Managers can provide either positive feedback or negative feedback to employees. This feedback helps the employee assess his performance and identify the improvement areas. Positive feedback communicates managerial satisfaction. Positive 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.

Negative feedback obviously communicates manager’s dissatisfaction. However, negative feedback sometimes make employee to put more efforts to improve his performance. But such times are very rare. Moreover this improvement is short term.

Some managers do not provide any kind of feedback to their employees. Due to no

feedback, employees may assume that they are performing productively or they may feel that the manager is satisfied with their performance. Studies reveal the performance tends be same or even decreases if no feedback is provided. Thus, feedback is necessary because:

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It builds trust and enhances communication between manager and

employee.

It gives managers and employees a way to identify and discuss skills and strengths.

Positive feedback leads to employee retention and Retention.

It helps in identifying performance areas that need improvement and specific ways to improve them. It acts as an opportunity to enhance performance by identifying resources for skill development. It is an opportunity for managers and employees to assess and identify career and advancement opportunities. It helps employees to understand the effectiveness of their performance and contributes to their overall knowledge about the work Managers have tendency to ignore good performances of their employees. Providing no feedback may demotivate employees and may lead to employee absenteeism. Input from manager’s side is necessary as it help employees to improve their performance and increase productivity.

Communication between Employee and Employer: Communication is a process in which a message is conveyed to the receiver by the sender. The message may be or may not be in a common format or language that both the sender and receiver understand. So there is a need to encode and decode the message in the process. Encoding and decoding also helps in the security of the message. The process of communication is incomplete without the feedback.

Communication is the solution to almost everything in this world. Same applies to employee retention also.

Straight-from-the-shoulder communication is what the employees need from their employers. Employees look for organizations where communication and process are transparent. Nothing is hidden and shared with the employees.

There are 3 categories of employees: A: Who will leave their current employer in 3 years of their employment B: Who have a probability of leaving their current employer in next 3 years C: Who will stay with their current employer in the next 3 years Category A: These are the employees who lack communication with their employers.

Category C: These are the employees who have proper; well structured communication with their employers. •

Communication is also the way to win the employees trust in the

organization. Employees trust the employers who are friendly and open to them. This trust leads to employee loyalty and finally retention. Employers also feel that the immediate supervisors are the most authenticated and trusted source of information for them. So the organizations should hire managers who are active communicators.

Communication mediums Open door policy: Organizations should support open door policies so that the employees feel comfortable and are able to express their doubts and feeling to their employers. So there should be effective communication across the organization and this communication should be twoway. Communication alone can lead to unimaginable heights of employee retention.

Importance Of Employee Retention: The process of employee retention will benefit an organization in the following ways:

The Cost of Turnover: 

The cost of employee turnover adds hundreds of thousands of money to

a company's expenses. While it is difficult to fully calculate the cost of turnover (including hiring costs, training costs and productivity loss), industry experts often quote 25% of the average employee salary as a conservative estimate.  Loss of Company Knowledge:  When an employee leaves, he takes with him valuable knowledge about the company, customers, current projects and past history (sometimes to competitors). Often much time and money has been spent on the employee in expectation of a future return.

When the employee leaves, the investment is not realized.  Interruption of Customer Service:  Customers and clients do business with a company in part because of the people.

Relationships are developed that encourage continued sponsorship of the business.

When an employee leaves, the relationships that employee built for the company are severed, which could lead to potential customer loss. o Turnover leads to more turnovers:  When an employee terminates, the effect is felt throughout the organization. Co-workers are often required to pick up the slack. The unspoken negativity often intensifies for the remaining staff. o Goodwill of the company:  The goodwill of a company is maintained when the attrition rates are low. Higher retention rates motivate potential employees to join the organization.  Regaining efficiency:  If an employee resigns, then good amount of time is lost in hiring a new employee and then training him/her and this goes to the loss of the company directly which many a times goes unnoticed. And even after this you cannot assure us of the same efficiency

from the new employee

What Makes Employee Leave?

Employees do not leave an organization without any significant reason. There are certain circumstances that lead to their leaving the organization. The most common reasons can be: Job is not what the employee expected to be:  Sometimes the job responsibilities don’t come out to be same as expected by the candidates. Unexpected job responsibilities lead to job dissatisfaction.

 Job and person mismatch: A candidate may be fit to do a certain type of job which matches his personality. If he is given a job which mismatches his personality, then he won’t be able to perform it well and will try to find out reasons to leave the job.  No growth opportunities: No or less learning and growth opportunities in the current job will make candidate’s job and career stagnant.  Lack of appreciation: If the work is not appreciated by the supervisor, the employee feels de-motivated and loses interest in job.  Lack of trust and support in coworkers, seniors and management: Trust is the most important factor that is required for an individual to stay in the job.  Non-supportive coworkers, seniors and management can make office environment unfriendly and difficult to work in.

 Stress from overwork and work life imbalance: Job stress can lead to work life imbalance which ultimately many times lead to employee leaving the organization.  Compensation: Better compensation packages being offered by other companies may attract employees towards themselves.  New job offer: An attractive job offer which an employee thinks is good for him with respect to job responsibility, compensation, growth and learning etc. can lead an employee to leave the organization.

Managing Employee Retention The task of managing employees can be understood as a three stage process: 1. Identify cost of employee turnover.

2. Understand why employee leave.

3. Implement retention strategies The organizations should start with identifying the employee turnover rates within a particular time period and benchmark it with the competitor organizations. This will help in assessing the whether the employee retention rates are healthy in the company.

Secondly, the cost of employee turnover can be calculated. According to a survey, on an average, attrition costs companies 18 months’ salary for each manager or professional who leaves, and 6 months’ pay for each hourly employee who leaves. This amounts to major organizational and financial stress, considering that one out of every three employees plans to leave his or her job in the next two years.

Understand why employees leave: Why employees leave often puzzles top management. Exit interviews are an ideal way of recording and analyzing the factors that have led employees to leave the organization. They allow an organization to understand the reasons for leaving and underlying issues. However employees never provide appropriate response to the asked questions. So an impartial person should be appointed with whom the employees feel comfortable in expressing their opinions.

Implement retention strategy: Once the causes of attrition are found, a strategy is to be implemented so as to reduce employee turnover. The most effective strategy is to adopt a holistic approach to dealing with attrition. An effective retention strategy will seek to ensure: Attraction and recruitment strategies enable selection of the ‘right’ candidate for each role/organization New employees’ initial experiences of the organization are positive Appropriate development opportunities are available to employees, and that they are kept aware of their likely career path with the organization The organization’s reward strategy reflects the employee drivers How To Increase Employee Retention: Companies have now realized the importance of retaining their quality workforce.

Retaining quality performers contributes to productivity of the organization and increases morale among employees. Four basic factors that play an important role in increasing employee retention include salary and remuneration, providing recognition, benefits and opportunities for individual growth. But are they really positively contributing to the retention rates of a company? Basic salary, these days, hardly reduces turnover. Today, employees look beyond the money factor.

Retention Bonus Higher attrition rates within a particular industry have forced companies to use some innovative strategies to retain employees. Retention Bonus is one of the important tools that are being used to retain employees. Retention bonus is an incentive paid to an employee to retain them through a critical business cycle. Retention bonuses are becoming more common in the corporate world because companies are going through more transitions like mergers and acquisitions. They need to give key people an attractive incentive to stay on through these transitions to ensure productivity.

Retention bonuses have proven to be a useful tool in persuading employees to stay. A retention bonus plan is not a panacea. According to a survey, non-management employees generally receive about 10 percent of their annual salaries in bonuses, while management and top-level supervisors earn an additional 50 percent of their annual salaries. While bonuses based on salary percentages are the generally used, some companies choose to pay a flat figure. In some companies, bonuses range from 25 percent to 50 percent of annual salary, depending on position, tenure and other factors.

Employees are chosen for retention bonuses based on their contributions to management and the generation of revenue. Retention bonuses are generally vary from position to position and are paid in one lump sum at the time of termination. However, some companies pay in installments as on when the business cycle completes. A retention period can run somewhere between six months to three years. It can also run for a particular project. A project has its own life span. As long as the project gets completed, the employees who have worked hard on it are entitled to receive the retention bonus. For example, the implementation of a system may take 18 months, so a retention bonus will be offered after 20 months. Although retention bonuses are becoming more common everywhere, some industries are more likely than others to offer them. Retail/wholesale companies are the most appropriate to implement stay-pay bonuses, followed by financial service providers and manufacturing firms. Companies of all sizes use retention bonus plans to keep knowledge employees retained in the

company. To retain its key senior employees post merger with EDS Corporation, Emphasis is providing cash component based retention bonus plan for its employees.

This is mainly to retain good employees and provide them a cash incentive to keep them motivated.

Hire Right Talent Employee retention starts with recruitment. Early departures arise from the wrong recruitment process. Here are a few ways to ensure how to hire the right talent for a particular job.

Hire appropriate candidates. Hire candidates who are actually suitable for the job. For this the employer should understand the job requirements clearly. Don’t hire under qualified or clearly overqualified candidates.

Provide realistic job preview at the time of hiring: Mostly employees leave an organization because they are given the real picture of their job responsibilities at the time of joining. Attrition rate can be reduced if a right person is hired for a right job.

Realistic preview of the job responsibilities can be given to the employment seekers by various methods like discussions, trial periods, internships etc. clearly discuss what is expected from the employee: Before joining the organization, tell the candidate what is expected from him. Setting wrong expectations or hiding expectations will result in early leaving of employees.

 Discuss what the expectations of the employees are: Ask employees what they expect from the organization. Be realistic. If their requirements can be fulfilled only then promise them. Or tell them beforehand that their requirements cannot be fulfilled. Don’t show them an unrealistic picture.

 Culture fit:

 Try to judge individual’s capability to adapt to the organization’s culture. A drastic change in the culture may give a culture shock to the candidate.

Referrals: According to the research, referred candidates stay longer with the organization. There is a fear of hampering the image and reputation of the person who referred the candidate.

 Manager Role in Retention When asked about why employees leave, low salary comes out to be a common excuse. However, research has shown that people join companies, but leave because of what their managers’ do or don’t do. It is seen that managers who respect and value employees’ competency, pay attention to their aspirations, assure challenging work, value the quality of work life and provided chances for learning have loyal and engaged employees. Therefore, managers and team leaders play an active and vital role in employee retention.

Managers and team leaders can reduce the attrition levels considerably by creating a motivating team culture and improving the relationships with team members. This can be done in a following way:

Creating a Motivating Environment: Team leaders who create motivating environments are likely to keep their team members together for a longer period of time. Retention does not necessarily have to come through fun events such as parties, celebrations, team outings etc. They can also come through serious events e.g. arranging a talk by the VP of Quality on career opportunities in the field of quality. Employees who look forward to these events and are likely to remain more engaged.

 Standing up for the Team: Team leaders are closest to their team members. While they need to ensure smooth functioning of their teams by implementing management decisions, they also need to educate their managers about the realities on the ground. When agents see the team leader standing up for them, they will have one more reason to stay in the team.

 Providing coaching: Everyone wants to be successful in his or her current job. However, not everyone knows how. Therefore, one of the key responsibilities will be providing coaching that is intended to improve the performance of employees. Managers often tend to escape this role by just coaching their employees. However, coaching is followed by monitoring performance and providing feedback on the same.

 Delegation: Many team leaders and managers feel that they are the only people who can do a particular task or job. Therefore, they do not delegate their jobs as much as they should.

Delegation is a great way to develop competencies.  Extra Responsibility: Giving extra responsibility to employees is another way to get them engaged with the company. However, just giving the extra responsibility does not help. The manager must spend good time teaching the employees of how to manage responsibilities given to them so that they don’t feel over burdened.

Focus on future career: Employees are always concerned about their future career. A manager should focus on showing employees his career ladder. If an employee sees that his current job offers a path towards their future career aspirations, then they are likely to stay longer in the company. Therefore, managers should play the role of career

counselors as well.

How to Improve Employee Retention People want to enjoy their work so make work fun and enjoyable.

Understand that employees need to balance life and work so offer flexible starting times and core hours. Provide 360 feedback surveys and other questionnaires to foster open communication. Consider allowing anonymous surveys occasionally so employees will be more honest and candid with their opinions. Provide opportunities within the company for career progression and cross-training. Offer attractive, competitive benefits.

Organizations should target job applications for employees who have characteristics that fit well with the organizational culture. Upon conducting an interview, seek out traits, such as loyalty. Also, ask the potential employee what motivates them on the job.

Having more information about the potential employee’s expectations can help retain them, should they get hired into the company.

Rewards and Recognition Employees want to be recognized for a job well done. Rewards and recognition respond to this need by validating performance and motivating employees toward continuous improvement. Rewarding and recognizing people for performance not only affect the person being recognized, but others in the organization as well.

Through a rewards program, the entire organization can experience the commitment to excellence. When the reward system is credible, rewards are meaningful; however, if the reward system is broken, the opposite effect will occur. Employees may feel that their performance is unrecognized and not valued, or that others in the organization are rewarded for the wrong behaviors. Unrecognized and no valued performance can contribute to turnover. Recognition for a job well done fills the employees' need to receive positive, honest feedback for their efforts.

Need for Rewards and Recognition Recognition should be part of the organization's culture because it contributes to both employee satisfaction and retention. Organizations can avoid employee turnover by rewarding top performers. Rewards are one of the keys to avoiding turnover, especially if they are immediate, appropriate, and personal. A Harvard University study concluded that organizations can avoid the disruption caused by employee turnover by avoiding hiring mistakes and selecting and retaining top performers.

One of the keys to avoiding turnover is to make rewards count. Rewards are to be immediate, appropriate, and personal. Organizations may want to evaluate whether getting a bonus at the end of the year is more or less rewarding than getting smaller, more frequent payouts. Additionally, a personal note may mean more than a generic company award. Employees should be asked for input on their most desirable form of recognition. Use what employees say when it comes time to reward for performance (St. Amour, 2000).

Designing a Rewards and Recognition Solution In designing rewards and recognition program, the following guidelines should be considered.

Rewards should be visible to all members of the organization.

Rewards should be based on well-defined, credible standards that have been developed using observable achievements.

Rewards should have meaning and value for the recipient.

Rewards can be based on an event (achieving a designated goal) or based on a time

frame (performing well over a specific time period).

Rewards that are spontaneous (sometimes called on-the-spot awards) are also highly motivating and should also use a set criteria and standard to maintain credibility and meaning.

Rewards should be achievable and not out of reach by employees.

Nonmonetary rewards, if used, should be valued by the individual. For example, an avid camper might be given a 10-day pass to a campsite, or, if an individual enjoys physical activity, that employee might be given a spa membership. The nonmonetary rewards are best received when they are thoughtfully prepared and of highest quality.

Professionalism in presenting the reward is also interpreted as worthwhile recognition.

Rewards should be appropriate to the level of accomplishment received. A cash award of $50 would be inappropriate for someone who just recommended a process that saved the organization a million dollars. Determining the amount of money given is a delicate matter of organizational debate in which organizational history, financial parameters, and desired results are all factors. Recognition for a job well done can be just as valued and appreciated as monetary awards.

Formal recognition program can be used with success. First Data Resources, a data processing services company that employees more than 6,000 individuals in Omaha, Nebraska, use a formal recognition program (Adams, Mahaffey, and Rick, 2002).

Rewards are given on a monthly, quarterly, and yearly basis, and range from Nebraska football tickets, gift certificates, pens, plaques, mugs, and other items. One of the most popular awards at First Data is called the "Fat Cat Award" that consists of: $500 gift check Professional portrait of the employee Appreciation letter from the CEO and senior management E-mails, phone calls, and notes from peers In addition to nonmonetary rewards, employees can be rewarded using money in

numerous ways. Cash is a welcome motivator and reward for improving performance, whether at formal meetings or on the spot. Variable bonuses linked to performance are another popular reward strategy. Profit sharing and pay-for-skills are monetary bonus plans that both motivate individuals and improve goal achievement. Small acts of recognition are valuable for employee daily Retention. Sometimes a personal note may mean more than a generic company award. In one survey, employees cited the following as meaningful rewards (Moss, 2000): Employee of the month awards Years of service awards Bonus pay (above and beyond overtime) for weekend work Invitations for technicians to technical shows and other industry events Meaningful and Rotational Rewards What gives meaning to rewards and recognition? What makes them effective? First, rewards and recognition should be based on a clear set of standards, with performance verifiable or observable. The standards for the reward should also be achievable. If the reward is based on an unachievable result, such as a production goal that is beyond employees' power, then those employees will not be motivated. Meaningful rewards and recognition that are achievable have the greatest impact.

Case Studies Employee Retention Best Practices in Keeping and Motivating Employees

By LisBeth Claus Ask any CEO of an organization, “What keeps you awake at night?� and you will get a response that relates to people management issues. a main concern for any organization (whether small or large; private, public or nonprofit) is its capacity to attract,

engage, and retain the right people. The problem of retention is compounded by the predicted talent shortage resulting from the upcoming retirement of the baby boomers, the scarcity of talent with relevant work skills for today’s jobs, the changing values about work and the high cost of turnover. Research and human resource practices provide us with a number of recommendations to increase employee retention.

How Auditing Company X Works with Retaining Valuable Employees : Swedish Case study University essay from HÜgskolani Jonkoping/IHH, EMM (Entrepreneurship, Management) Author: Josip Bogic; Elina Armanto; Maja Cassel; [2008] Abstract: Today, neither employees nor employers seem to take for granted that a person will stay with the same firm until retirement. Yet, keeping employees for longer periods is an important challenge for firms. One industry where retention is interesting is the auditing industry in Sweden, this because certain requirements are needed to become an auditor. Firstly, the employee needs to have a Swedish university degree, including specific courses within auditing/accounting. Furthermore, the person needs practical experience for a specific period of time. Due to these statements the challenge of retaining and motivating valuable employees is crucial for the auditing firms, which is why we have chosen to do a case study at Auditing Company X to see how they work with employee retention. We have compared the findings to our chosen theory, which consist of four categories: the hiring process, internal labor market and career, motivation and performance, and finally culture and leader-ship. These four categories are initially based on Leigh Branham book keeping the people who keep you in business: 24 ways to hang on to your most valuable talent? (Bran-ham, 2001).In our conducted case study, at Auditing Company X, we have been able to conclude that the firm’s retention practices are to a great extend in line with the theoretical framework.

There are some areas that need further attention from the company, such as an individualized reward system and communication between managers and employees.

Even though there are some parts to work on the most important aspects of retention,

such as having a holistic and long-term orientation, Auditing Company X seems to have incorporated this into their practices successfully.

Retention: An explanatory study of Swedish employees in the financial sector regarding leadership style, remuneration and elements towards job satisfaction University essay from Viejo universities/EkonomihÜgskolan Author: Samna Paulson; Linda Lindgren; [2008] Abstract: Introduction: Companies today are forced to function in a world full of change and complexity, and it is more important than ever to have the right employees in order to survive the surrounding competition. It is a fact that a too high turnover rate affects companies in a negative way and retention strategies should therefore be high on the agenda. When looking at this problem area we found that there may be actions and tools that companies could use to come to terms with this problem. Research told us that leadership, remuneration and elements like participation, feedback, autonomy, fairness, responsibility, development and work-atmosphere is important for job satisfaction and retention. Object: The main objective is to increase the understanding regarding employee’s retention in relation to leadership style, remuneration and elements such as participation, feedback, autonomy, fairness, responsibility, development and work-atmosphere in the Swedish financial Sector. Method: We wanted to investigate how employee of the Swedish financial sector prefers to be retained, and how they consider and react to the chosen areas. The survey has a quantitative approach with a web based questionnaire and includes 129 respondents from banks, insurance and finance companies. The theoretical framework includes leadership and leadership style, financial as well as non-financial remuneration and research done in later years regarding participation, feedback, autonomy, fairness, responsibility, development and work-atmosphere connected to retention.

Conclusion: The result shows that regarding leadership the respondents prefer leadership based on relations were they feel appreciation. Both appreciations from the closest manager as well as the company management influences employee job satisfaction in a positive way. More money was the most common reason for wanting to change jobs, and when asking how the remuneration system should be designed, base pay with additional bonus and benefits were preferred. But also non financial factors

such as participation, feedback, autonomy, fairness, responsibility, development and work-atmosphere must be taken in consideration to satisfy since they seem to increase employees Willingness to stay in the company.

What leaders can do to keep their key employees - Retention Management University essay from Goteborg university/FĂśretagsekonomiska institutional Author: Lisa Edberg; Maria Helios; [2007-09-03T08:22:31Z] Abstract: Background: retention management is a highly topical subject and an important dilemma many organizations might face in the future, if not facing it already.

We believe that the leader plays a key role in employee retention and retention management. The concept of retention management can both have a narrow, and a broader significance. Both parts of its significance are generally included in this thesis.

The background of the thesis present a few articles that discuss issues that makes it important for the organization, and the leaders, to work hard with retention management. The research is based on the leaders in the Finnish case company Tradeka. Following key questions are intended to be answered: What are the consequences between leaders actions and employees retention? Which is the leader’s role when it comes to retaining employees? Purpose statement: The purpose of the thesis is to investigate and analyze how company leaders today can retain their key employees. How can the provision of key human resources develop a long-term relationship that makes top employees stay in the company? The study aims to establish the procedure leaders apply to retain employees. The purpose is to compare the qualitative study, made at the case company, with findings from the thesis theoretical framework. Research method: The study is a qualitative, as well as a theoretical study where empirical findings and theories has been compared. The intention of investigating and using the Finnish company Tradeka Limited as a case company, is to make the information from the theories more valid, and also the interest in how retention management works in practice. Eleven qualitative interviews were conducted at Tradekas financial department, both with supervisors and employees to get a broader view at the phenomenon retention management. Result: Leaders and

their skill in creating a culture of retention, has becoming a key in why people stay and what usually drives them away from a company. The leader has become the main factor in what motivates people’s decision to stay or leave. For organizations to keep its key employees their number one priority should be to look at their management, because people leave managers and not companies. Characteristics in a leader that are of importance, as the leader plays a key role in retention management is: trust builder, esteem builder, communicator, talent developer and coach, and talent finder. The leader’s relation to the employees plays a central role in retaining employees, because employees need to feel involvement, and that their presence count. When retention is a core value, good things happen for customers, employees, and the company.

FINDINGS · It is found out that, 40% of respondents are aware of HR Policies and 60 % of respondents are not aware of HR Policies. · It is found out that, 76% of respondents are getting right amount of accurate information at right time and 24% of respondents are not getting right amount of accurate information at right time.

· It is found out that, 82% of respondents are able to meet superior’s expectation and 18% respondents are not able to meet superior’s expectation. · It is found out that,57% of respondents feels that there pay is on par with compare to employee’s handling similar responsibilities, and 39% of respondents feels that there pay is less with compare to employee’s handling similar responsibilities. · It is found out that, 70% of respondents are satisfied with hygiene and cleanliness of company infrastructure and 30% of respondents are not satisfied with hygiene and cleanliness of company infrastructure. · It is found out that, 40% of respondents are satisfied with Availability of system, storage facilities of company and 60% of respondents are not satisfied with Availability of system, storage facilities of company. · It is found out that, 78% of respondents skills are recognized by superiors and 22% of respondents skills are not recognized by superiors. · It is found out that, 74% of respondents feel that superiors are taking efforts to motivate them and 26% of respondents feel that superiors are not taking efforts to motivate them. · It is found out that, 83% of respondents feel that workload is manageable and 10% of respondents feel that workload is very hard to manage. · It is found out that,55% of respondents feels that the field worker are able to get updates on internal activities, and 45% of respondents feels that the field worker are not able to get updates on internal activities. · It is found out that, 89% of respondents feel that the superiors are easily accessible and 11% of respondents feel that the superiors are not easily accessible. · It is found out that, 51% of respondents feel that their complaints are resolved quickly and 49% of respondents feel that their complaints are not resolved quickly. · From weighted Average analysis it is found that most of the respondents are satisfied with the working hours of the organization · From weighted Average analysis it is found that roles & responsibilities are clearly defined by the Reporting heads. · From weighted Average analysis it is found that employees feel that their superior's commitment towards job is good.

· From weighted Average analysis it is found that respondents feel that training and orientation programs are neither good nor bad. · From weighted Average analysis it is found that most of the respondents are satisfied with job. · From chi-square it is found that there is a significant relationship between Work Culture of the Company and interpersonal relationship between employees. · From chi-square it is found that there is a no significant relationship between overall satisfaction and Commitment towards Company. · From chi-square it is found that there is a significant relationship between overall satisfaction and aspects of job. · From Kendall’s coefficient of concordance it is found that there is a significant difference in the rank assigned by respondents towards the attributes that gives them satisfaction in the company. · From One Run Test it is found that the samples are taken randomly.

SUGGESTIONS Employee should be provided with proper training.

Employee should be appreciated for good work.

Employee should be motivated to welcome the change.

If any changes are brought in to software or any module is added then proper training should be given.

CONCLUSION Retention is an important concept that has been receiving considerable attention from academicians, researchers and practicing HR managers. In its essence, Retention comprises important elements such as the need or content, search and choice of strategies, goal-directed behavior, social comparison of rewards reinforcement, and performance-satisfaction. The increasing attention paid towards Retention is justified because of several reasons. Motivated employees come out with new ways of doing jobs. They are quality oriented. They are more productive. Any technology needs motivated employees to adopt it successfully.

Several approaches to Retention are available. Early theories are too simplistic in their approach towards Retention. For example, advocates of scientific Management believe that money is the motivating factor. The Human Relations Movement posits that social contacts will motivate workers. Mere knowledge about the theories of Retention will not help manager their subordinates. They need to have certain techniques that help them change the behavior of employees. One such technique is reward. Reward, particularly money, is a motivator according to need-based and process theories of Retention. For the behavioral scientists, however, money is not important as a motivator. Whatever may be the arguments, it can be stated that money can influence some people in certain circumstance. Being an outgrowth of Herzberg’s, two factor theory of Retention, job enrichment is considered to be a powerful motivator. An enriched job has added responsibilities. The makes the job interesting and rewarding. Job enlargement refers to adding a few more task elements horizontally. Task variety helps motivate job holders. Job rotation involves shifting an incumbent from one job to another.

RECOMMENDATIONS 1. Develop an attractive employee value proposition.

An employee value proposition means that your company has something attractive to

offer that is perceived as valuable to an employee. As an employer, you must understand what makes your organization attractive to potential recruits and current employees. Branding yourself as an employer of choice is not just a slick set of marketing tactics. The best advocates for an employer’s brand are its current employees. What messages do they send to others about their employer? Are they honestly saying and believing that, “This is a great place to work.�

2. Create a total reward structure that includes more than compensation.

Every company should have all the normal compensation mechanisms common to their type of employment. yet, total rewards packages go far beyond money. While money might temporarily retain employees, it does not always equate with engagement. People want a chance to make a difference and realize themselves. That self-realization is multi-dimensional and different for each employee. The total reward structure should include, in addition to compensation, support for employees to attain their personal objectives aligned with the goals of their organization.

3. Give feedback on employee performance on a regular basis.

Most managers and employees are not enamored with the performance appraisal process in their organization. yet, an effective performance management process serves many purposes. Ongoing performance feedback allows employees to better know where they stand, gives them a formal means to provide input, and indicates that their managers pay attention to them and that their performance matters. This feedback contributes to employee engagement and retention.

4. Be flexible in terms of work-life balance.

Workers more and more value a balance between work and life. They want more flexible ways to engage with their employer. To attract and retain workers with different work and career expectations, organizations have to be more flexible in structuring work and

its expectations. It calls for a different managerial mindset and practices that involve letting go of old ways of controlling workers’ time and attendance in favor of result criteria such as output, productivity and quality.

5. Create a culture of engagement.

Employees have become more connected with others in the organization (and the broader supply-and-customer chain) through project-based team work and process management activities. Employees are shifting their loyalty to people, teams and projects and away from company loyalty. It is organizations that create the culture and climate that allow people, processes and projects to become fully connected and engaged with one another. Engaged employees are more likely to stay with their employer.

6. Train managers to be effective.

Exit interviews consistently show that “poor and bad” management practices greatly contribute to an employee’s decision to leave a company. It is imperative to provide supervisors and managers with adequate tools to become effective managers since we cannot assume that these competencies are innate. Professor Patrick Connor, recently retired after teaching 25 years at the Atkinson Graduate school of Management, is famous among MBA students and alumni for his ‘Connors’s.’ He told them, “your employees do not work for you, they work for themselves.” When I teach my students about managing organizations, I have them reflect on what really matters to employees and what they are constantly asking of their managers and their organizations. In the end, what employees expect of their managers is fairly simple: Can I trust you? Are you committed to excellence? Do you care about me? What people constantly ask of their organization is: Do you tell the truth? Do you keep promises? Do you act fairly? Do you respect me? Managers and organizations that keep these questions in mind will have a competitive advantage over others in retaining their employees.

BIBLIOGRAPHY BOOKS

路 Human Resource Management C.B.Memoria 路 Research methodology C.R.Kothari 路 Journals, Newspaper and Internet References from EBSCO 1. COMPETING ON TALENT ANALYTICS. By: Davenport, Thomas H.; Harris, Jeanne; Shapiro, Jeremy. Harvard Business Review, Oct2010, Vol. 88 Issue 10, p52-587p, 2 Illustrations, 1 Diagram 2.Recruitment and retention in foreign firms in India: A resource-based view.

By: Holtbr眉gge, Dirk; Friedmann, Carina B.; Puck, Jonas F.. Human Resource Management, May/Jun2010, Vol. 49 Issue 3, p439-45517p, 1 Diagram, 2 Charts 3.Retaining Talent: Replacing Misconceptions With Evidence-Based Strategies.

By: Allen, David G.; Bryant, Phillip C.; Vardaman, James M.. Academy of Management Perspectives, May2010, Vol. 24 Issue 2, p48-6417p, 3 Diagrams, 4 Charts; DOI: 10.5465/AMP.2010.51827775