A

PROJECT REPORT

ON

EMPLOYEE RETENTION
 TABLE OF CONTENTS

Contents Page No.

CHAPTER-I

(i) Introduction
(ii) Significance of study
(iii) Objectives of study
(iv) Focus of study
(v) Conceptualization
(vi) Research methodology
(vii) Plan of study

CHAPTER-II

(i) Review of existing literature

CHAPTER-III

(i) Industry Profile

(ii) Company Profile

CHAPTER-IV

(i) Analysis and Interpretation

(ii) Findings

A. CHAPTER-V
(i) Recommendations
(ii) Conclusion
(iii) Limitations of study

Bibliography

Annexure
 INTRODUCTION

In an ideal world, employees work hard, love their job, worship their workplace, feel like a
family and would never leave. But let’s look at the real world, where employee quite at the
drop of a hat. How can attrition be controlled?

As the Indian Software solutions industry grows exponentially, companies are taking the big
leap from survival strategy to competitive strategy. Hence, there is a constant thirst for the
best and the brightest of employees and the result-heavy attrition.

The main cause for the movement is lack of motivation, increased expectation, and increased
opportunity. Attrition also happens when people hate their working conditions, do not like
their team-mates or perhaps do not like what they are doing. Organizational culture has a
great impact on who stays and who goes. Also important of providing opportunities for
development of their employees or their career growth is an important factor in employee
attrition. Job misfit is also in the list of the factors.

Experts say that organization behavior is instrumental in extending the tenure of employees
in the organization as it increases their self-esteem, confidence, morale and motivation. A
substantial growth of employee’s self-esteem is as important as the concept of learning in the
industry. Otherwise, expert fear that Software solutions organizations will met a sorry fate as
far as retention policies are concerned.

As the attrition rate is high in the industry so in this study I tried to find out various factors
and reasons effecting the employees retention in Sun Squire Software solutions industry.
 SIGNIFICANCE OF THE STUDY

This study explores all aspects of the workplace stability issue with a focus on retaining
employees. Employee retention is most critical issue faced by corporate leaders as a result of
the shortage of skilled labor, economic growth and employee turnover.

As the Indian Software solutions industry grows exponentially, companies are taking the big
leap from survival strategy to competitive strategy. Hence, there is a constant thirst for the
best and the brightest of employee and the result –heavy attrition.

After IT and BPO, it is now the Pharma sector that is facing the issue of high attrition rates.
For most HR managers, employee retention is the biggest challenge. “Attrition is quit in the
industry these days. This year, we have witnessed almost 32 percent plus attrition. This study
is significant in explaining all the reasons and the possible solution for the retention.
 OBJECTIVES OF THE STUDY

 To study attrition as the major problem in the present scenario

 To study various HR practices and present condition in Sun Squire Software
solutions Industry
 To study factors responsible for employee attrition in Sun Squire Software
solutions Industry
 To study the effectiveness of the retention practices adopted by Sun Squire Software
solutions Industry
 FOCUS OF THE STUDY

There are several problems faced by the employees that become a challenge for HR as
how to manage problems and to motivate employees for not leaving the organization. The
study says that the attrition in Sun Squire Software solutions Industry has become the
major issue. The focus of the problem is that how HR can retain employees in this
industry. The study will identify the cause and need to fulfill the requirements of the
employee.
 CONCEPTUALISATION

Talent or human resource is a major asset for any company. Company Invest high amount of
money for their recruitment, selection & training and what happens to company if these
Talents or Employees leave the organization in short while seeking new opportunities.

Indian Software solutions Industry is one of the fastest growing knowledge based sector with
annual attrition rate of near about 30-35% compared to the global Software solutions attrition
rate of 10-12% per annum. Current statistics show that higher attrition rate problem mainly
exists in Marketing and R&D departments."" Attrition rate in R&D is very high even higher
then marketing, the reason may be shortage of skilled and experienced R&D professionals or
increasing opportunities due to globalization and R&D outsourcing in India which have
created a sudden demand for skilled research peoples.

Major reasons for high attrition rate stated by employees are poor management, uninteresting
job, lack of motivation, job lacking opportunity for future advancement, and inadequate
salary or compensation plan. The immediate gain in salary package was found to be
responsible for job change in 61 per cent of the cases.

Leaving company by the employee not only leads to loss of money for the company in his
training and development of knowledge but it also increase the threat of information security
if employee moves to rival company and loss of the business ( from the customers the
employee directly deals with) Talent or human resource is a major asset for any company.
Company Invest high amount of money for their recruitment, selection & training and what
happens to company if these Talents or Employees leave the organization in short while
seeking new opportunities.

Indian Software solutions Industry is one of the fastest growing knowledge based sector with
annual attrition rate of near about 30-35% compared to the global Software solutions attrition
rate of 10-12% per annum. Current statistics show that higher attrition rate problem mainly
exists in Marketing and R&D departments."" Attrition rate in R&D is very high even higher
then marketing, the reason may be shortage of skilled and experienced R&D professionals or
increasing opportunities due to globalization and R&D outsourcing in India which have
created a sudden demand for skilled research peoples.
Major reasons for high attrition rate stated by employees are poor management, uninteresting
job, lack of motivation, job lacking opportunity for future advancement, and inadequate
salary or compensation plan. The immediate gain in salary package was found to be
responsible for job change in 61 per cent of the cases.

Leaving company by the employee not only leads to loss of money for the company in his
training and development of knowledge but it also increase the threat of information security
if employee moves to rival company and loss of the business ( from the customers the
employee directly deals with)

Employee Retention involves taking measures to encourage employees to remain in the

organization for the maximum period of time. Corporate is facing a lot of problems in
employee retention these days. Hiring knowledgeable people for the job is essential for an
employer. But retention is even more important than hiring. There is no dearth of
opportunities for a talented person. There are many organizations which are looking for such
employees. If a person is not satisfied by the job he’s doing, he may switch over to some
other more suitable job. In today’s environment it becomes very important for organizations
to retain their employees.

The top organizations are on the top because they value their employees and they know how
to keep them glued to the organization. Employees stay and leave organizations for some
reasons.

Employee retention
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.
Retention involves five major things:

 Compensation
 Environment
 Growth
 Relationship
 Support
Employee retention would require a lot of efforts, energy, and resources but the results are
worth it.

Importance of employee retention

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.

The process of employee retention will benefit an organization in the following ways:

1. 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.
2. 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.
3. 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.
4. 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.

5. 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.

6. 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.

Employee Retention Tools

In the present scenario, world is turning into a global village and the whole globe is reachable
from any destination. In this small world even companies are reachable to the people and vice
versa. And so their jobs are also easily accessible for everyone. In this situation, the biggest
challenge for a company is to retain its workforce intact especially the Knowledge Banks.

All the companies are planning to increase their turnover every moment of time. While in all
this workout of increasing the turnover they forget about their loss incurred by the resignation
of employees and the expenses of hiring new employees (Hiring Cost, Training Cost,
Productivity Loss etc.). This hiring of a new employee normally costs around 35% or more of
the average employee salary. For example- let us consider average salary of an employee per
year as Rs.20, 000, and then the cost of hiring a new employee and other expenses come
around Rs.7, 000. If you have 2 employees resigning per month the cost comes to Rs.14, 000
and taking the same for 12 months comes to around Rs.168, 000, which is a direct loss from
the turnover of the company. And after all this there is always a risk of getting a right
employee for the right position with a right attitude.

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 (He might be better and might not be). You require time to judge his capabilities
and work nature. The loss is even graver if he/she is Your Knowledge Bank, this can bring
your process to a standstill even. And above all these things, one resignation many a times
triggers a chain reaction among other employees, leading to a negative effect.

For all these and many other reasons you need to retain your employees. For retaining your
employees, you need to understand the requirements of the employees and at the same time
should make them clear about the expectations of the company from them. It’s a general
human tendency that each human being thinks himself as important and expects the same
from the other side, so the company management should make their employees accountable
for their respective jobs and make them feel that they are very important for the smooth
processing of that process(At the same time create a backup for him). Care and importance
are two things of which every human being is mad of.

Below are few of the tools for Employee Retention:-

1. Employee Reward Program- You can make a provision of Monthly or Quarterly

Award (depending upon the budget) for the best employee, Awarding 2 or 3 best workers
each month. The award can be in terms of gifts or money.
If it is money then it should be divided into two parts, first part to be given with the next
month salary and the remaining after 6 months. In this way he/she can be retained for 6 more
months. These rewards shall be considered at the time of appraisal.

2. Career Development Program- Every individual is worried about his/her career. You can
provide them conditional assistance for certain courses which are beneficial from your
business point of view. Conditional assistance means the company will bear the expenses
only if he/she gets an aggregate of certain percentage of marks. And entrance to that course
should be on the basis of a Test and the number of seats to be limited. For getting admitted to
such program, You can propose them to sign a bond with the company, like they cannot leave
the company for 2 years or something after the successful completion of the course.

3. Performance based Bonus- The employee always comes to know about the profit of the
company which is of course based on the strategic planning of the top management and the
productivity of the employee. To get more work out of the employee, You can make a
provision of Bonus. By this employee will be able to relate himself with the company’s profit
and hence will work hard. This bonus should be productivity based.

4. Employee Referral Plan- You can introduce Employee Referral Plan. This will reduce
your cost (charges of external consultants and searching agencies) of hiring a new employee
and up to an extent you can rely on this new resource. On every successful referral, employee
can be given a referral bonus after 6 or 9 months of continuous working of the new employee
as well as the existing employee. By this you can get a new employee at a reduced cost as
well as are retaining the existing one for a longer period of time.
5. Loyalty Bonus- You can introduce a Loyalty Bonus Program in which you can reward
your employee after a successful completion of a specified period of time. This can be in the
form of Money or Position. This will encourage the fellow employees as well whether they
are interested in money or position, they will feel fascinated.

6. Giving a voice to the Knowledge Banks- First of all you should try to retain your
workforce intact, as they are the intellectual asset of the company. And above that you can’t
afford losing your knowledge banks. These are the people who stabilize the process. You can
involve them in some of the decisions.

7. Employee Recreation- You should also let your employees enjoy in a light mood. You
can take your employees to a trip or for an outing every year or bi-yearly. You can make use
of this trip as well. You can start this trip with an opening note about the management views
and plans, strategies etc. At the same time you can involve your top management into some
of the fun activities as this will make feel the employees that they are very close to the
management and everybody is same.

8. Gifts at some Occasions- You can give some gifts at the time of one or two festivals to the
employees making them feel good and understand that the management is concerned about
them.

9. Accountability- You should make each employee accountable so that he can also feel that
he is as important as his manager. If he/she will be filled with this sense, he/she will seldom
think of leaving the company.

10. Making the managers effective and easily accessible- You should make the
management easily accessible so that the employee expectations can be clearly
communicated to the top management, as it is impossible for the top management to reach
each employee frequently.

11. Surveys- You should conduct regular surveys for feedbacks from employee about their
superiors as well as other issues like food, development plans and other suggestions. This will
make them feel of their importance and the caring nature of the company. Some of the
suggestions might be of real good use for the company.
For a company, the workforce is like an intellectual property, both in terms of skills and
money. A trained and content workforce can lead a company to new heights while a opposite
one can hamper it badly. So, every resignation saved is every dollar earned.
 RESEARCH METHODOLOGY

1) Descriptive & Exploratory Research Methodology’ is adapted for this project

work.

The present study is descriptive in nature, as it seeks to discover ideas and insight to bring out
new relationship. Research design is flexible enough to provide opportunity for considering
different aspects of problem under study. It helps in bringing into focus some inherent
weakness in enterprise regarding which in depth study can be conducted by management.

Exploratory research is investigation of relationships among variables without knowing why

they are studied. It borders on an idle curiosity approach, differing from it only in that the
investigator thinks there may be a payoff in the application somewhere in the forest of
questions.

1) Source of data collection

The data was collected from both primary and secondary sources.

Primary sources:-

 Questionnaire

Secondary sources:-

 Websites
 Magazine
 Company record

2) Universe

The universe of the study is Sun Squire Software solutions Industry.

3) Sample size
50 employees of Sun Squire Software solutions Industry.
 PLAN OF THE STUDY

The structure of present study is as follows:-

 Chapter 1 covers the introduction of the study, significance of the study, objectives of
the study, focus of the problem, conceptualization and plan of the study. The chapter also
includes research methodology containing the nature of research, sample size and analysis
pattern used to conduct the research.
 Chapter 2 explores the significant literature published on the present study reflecting
understanding of the relevant theoretical and empirical background of the problem.
 Chapter 3 explains the industry profile and company profile.
 Chapter 4 consists of data analysis and findings.
 Chapter 5 of this study contains recommendations and conclusions providing the end
result of the study. The last part gives the limitation of the study thus providing
significant scope for further research.
 REVIEW OF LITERATURE

The literature clearly indicated that there are six keys to retaining personnel. They are
recruiting, communications, training, job satisfaction, pay, and benefits.
Recruiting
The effort to retain the best personnel begins with recruiting. Attracting and retaining the
best people are not two different things, but are the same thing. Both require creating and
maintaining a positive reputation, internally as well as externally. Employers must be
honest with the recruit about the beliefs, expectations, organizational culture, demands, and
opportunities within the organization. By representing the organization realistically, a
department will attract those who will be content working within the culture (Marx, 1995).
Denton (1992, p.47) follows this up by stating that, “ the better the match between recruits
and the organization the more likely you are to retain them.” Lynn (1997) believes that you
must take time during the hiring process to make wise decisions. The employer must be
candid about the working conditions, responsibilities, opportunities and other details to
reduce the chances of making hiring mistakes. Taylor and Cosenza (1997) strengthen this
thought by noting that it is imperative that companies give prospective employees a true
picture of the organization, if they hopeto match the personality type with the climate and
culture of the organization.

The literature was clear in pointing out that if departments want to increase retention they
muststart with a solid recruiting process.

Communications

Carney (1998) believes that the key to employee retention is quite simple: communicate,
communicate, communicate. Communication with the employees must begin early on in
the relationship. He believes that the imprinting period of a new employee is probably less
than two weeks. Employers must engage the employee early on by sharing how important
the job they do is. Lynn (1997) follows this up by stating that early on an atmosphere of
fairness and openness must be created by clearly laying out company policies.

Taylor and Consenza (1997) indicate that it is important to communicate the values of the
organization to its employees in order to increase their level of consent, participation, and
motivation. Lynn (1997) echoes this thought by pointing out that the vision of the
organization must be shared with the employee as well as the importance the employees
play in helping fulfill it.

Lack of communication may result in gaps between management’s perceptions of quality

employment and the employees desired and perceived quality of employment (Taylor &
Consenza, 1997). There must be a common purpose and trust among employees. People
want to feel as if they are a vital piece of something larger (Carney, 1998). As Denton
(1992) points out, managers must make sure employees know what they should do and why
it is important.

Lynn (1997) notes that communications must be a two way street to be effective.
Employers must listen to what employees have to say. An atmosphere must be created in
which employees feel comfortable making suggestions and trying our new ideas.

The literature revealed that communication must begin early in the employer/employee
relationship. Organizational values and culture must be made clear to all employees and
their importance within the organization must be continually emphasized.

Training

As was noted earlier it is important that the employee feel like a valued member of the
organization. Training helps underscore this message. Training personnel is a way to show
you respect them and want them to grow. The department is making an investment in the
employee by offering training (Marx, 1995). Good training can de-emphasize salaries and
benefits, in part by building a positive work environment and by giving employees
advancement opportunities (Lynn, 1997). Lynn goes on to say that training helps strengthen
employee loyalty.

Training can help revitalize personnel. For an increasing number of people, the chance to
learn new skills is a significant personal goal for both the career opportunities education
can provide and for the chance to do something a little different (Mendonsa, 1998).

Training emphasizes to the employee that they are valued and respected. This in turn to
increased loyalty and retention.
Job Satisfaction

While an organization must be competitive in terms of compensation and benefits, it is the

relationship with the supervisor that is often a crucial factor in determining whether a
person stays or goes (Mendonsa, 1998). Employees want more interaction with
management, more self-satisfaction onthe job, more responsibility and more control over
decisions affecting them. They want their work to make a difference and want to be part of
something that matters (Taylor, 1997).

Departments should encourage innovation by soliciting the advice and input of their staff
members, followed by responses to ideas, complaints or questions (Taylor, 1997). It is
difficult to keep people on the job if they have no say in how to do it (Spragins, 1992).

People need to be recognized for their accomplishments in the workplace. In most

organizations the feeling of under-recognition is the most pervasive feeling in the
workplace (Mendonsa, 1998). Provide a great deal of personal and team recognition
(Carney, 1998). Recognize achievements with memos, mentions in staff meetings or
articles in the newspapers (Lynn, 1997).

To retain employees, departments must offer career advancement opportunities.

Departments failing to offer employees career opportunities, room for advancement and
enhancement of skills and knowledge may find it difficult to retain qualified employees
(Taylor, 1997). Marx (1995) concludes this by pointing out that promoting from within is
one of the proven methods of employee retention. Promoting from within shows that there
is truly room for advancement and growth within the department.

Employee involvement, recognition, importance of work, and career advancement

opportunities are all important, when dealing with employee retention.

Pay and Benefits

In general people think that money and benefits or lack thereof, are the main reasons people
leave their jobs, but this is not the case. While compensation and benefits may be a key
factor in the final decision-making process, a money shortage is usually not what causes
people to look in the first place (Mendonsa, 1998).
Money may be the reason they give when they resign, but it’s like “white noise”. They are
conscious of it for a while but if they are bored on the job, money alone is not going to keep
them there (Branch, 1998).

Although traditional benefits such as vacation and health are still important, today’s
workers are also looking for more non-traditional benefits. Benefits such as flexible work
ours, availability of childcare tuition assistance programs and discounts on services now top
the list of desired benefits (Denton, 1992).

The literature clearly indicates while still factors, money and benefits are not as important
as job satisfaction in terms of employee retention.

Employers have a need to keep employees from leaving and going to work for other
companies. This is true because of the great costs associated with hiring and retraining new
employees. The best way to retain employees is by providing them with job satisfaction and
opportunities for advancement in their careers. The saying, good help is hard to find, is even
truer these days than ever before because the job market is becoming increasingly tight
(Eskildesen 2000, Hammer 2000).

Eskildsen and Nussler (2000) suggest that employers are fighting to get talented employees in
order to maintain a prosperous business. Ray Hammer (2000) as well as many other
researchers/authors agree. Mark Parrott (2000) believes that, there is a straight line between
employee satisfaction and customer satisfaction. He believes that today’s employees pose a
complete new set of challenges, especially when businesses are forced to confront one of the
tightest labor markets in decades. Therefore, it is getting more difficult to retain employees,
as the pool of talent is becoming more-andmore tapped-out. The research below, which
focuses primarily on employee retention through job satisfaction, supports this contention.

Employees that are satisfied and happy in with their jobs are more dedicated to doing a good
job and taking care of customers that sustain the operation (Hammer 2000; Marini 2000;
Denton 2000). Job satisfaction is something that working people seek and a key element of
employee retention.
Every person will have his or her own definition of what it means to be satisfied with a job.
Studies show that employees who are satisfied with their jobs are more productive, creative
and be more likely to be retained by the company (Eskildsen & Dahlgaard 2000; Kim 2000;
Kirby 2000; Lee 2000; Money 2000; Wagner 2000).
Today, changes in technology, global economics, trade agreements, and the like are directly
affecting employee/employer relationships. “Until recently, loyalty was the cornerstone of
that relationship. Employers promised job security and a steady progression up the hierarchy
in return for the employee’s fitting in, performing in prescribed ways and sticking around.
None of these assumptions apply today. Restructuring and layoffs occurring today are
expected to continue far into the future. Employees are now finding that previous job skills
are no longer valuable. They must now create new job growth possibilities, rather than
waiting on promotions to be handed out.

Fostering employee commitment can have a great impact on decreasing turnover rates.
“Research shows commitment has a positive effect on productivity, turnover and employees
willingness to help co-workers” (Bishop, 1997, p. 4). In fact, increased employee
commitment has been shown to improve team performance and productivity and decrease
absenteeism, turnover, and intention to quit. However, companies can take action to ensure
that these increasing trends are minimized within their own individual cultures. Therefore,
strong retention strategy must be implemented.

First, a corporate values system must be defined based upon the organization’s values and
vision. These values must guide the company and identify those employees desiring to move
in the same direction. Next, trust must be established within all parts of the business.
“Security comes from trust and trust comes from honesty and communication. The bottom
line is that employees want to know their employer will be straightforward with them.
Establish a process for sharing important information related to your business with your
employees” (Byrnes, 2002, P. 4). Third, assess employee priorities through surveying. The
answers will allow an organization to structure effective reward programs, thus increasing
employee satisfaction. Fourth, Byrnes recommends doing industry homework. Companies
need to understand competitors’’ compensation and benefit programs. A clearer
understanding of what is expected by employees within the industry provides the company
the opportunity to increase satisfaction. Finally, the creation of a compensation and benefit
package, supportive of company values and employee needs, is essential.
 INDUSTRY PROFILE

Information Technology (IT) has made possible information access at gigabit speeds. It has
created a level playing field among nations and created has a positive impact on the lives of millions.
Today, a country’s IT potential is paramount for its March towards global competitiveness, healthy
gross domestic product (GDP) and meeting up the energy and environmental challenges. The Indian
IT and Information Technology enabled Services (ITES) sectors go hand-in-hand in every aspect. The
industry has not only transformed India’s image on the global platform, but also fuelled economic
growth by energizing the higher education sector (especially in engineering and computer science).
The industry has employed almost 10 million Indians and, hence, has contributed significantly to
social transformation in the country.

India is one of the fastest-growing IT services markets in the world. It is also the world’s
largest sourcing destination, accounting for approximately 52 per cent of the US$ 124–130 billion
market. The country’s cost competitiveness in providing IT services continues to be its USP in the
global sourcing market.

India has the potential to build a US$ 100 billion software product industry by 2025, according to
Indian Software Product Industry Roundtable (ISPIRT). The software products market in India, which
includes accounting software and cloud computing-based telephony services, is expected to grow at
14 per cent in 2014.The Department of Electronics and Information Technology is coordinating
strategic activities, promoting skill development programmes, enhancing infrastructure capabilities
and supporting research and development (R&D) for India’s leadership position in IT and ITES.

Market Size

Indian IT and ITES industry is divided into four major segments – IT services, business process
management (BPM), software products and engineering services, and hardware. The IT services
sector accounted for the largest share of the IT and ITES industry, with a total market size of US$
56.3 billion during FY13, followed by BPM sector (US$ 20.9 billion), and software products and
engineering services (US$ 17.9 billion); the market size for hardware was US$ 13.3 billion during
FY12.The Indian IT-BPM industry is expected to add revenues of US$ 13–14 billion to the existing
revenues by FY15, according to National Association of Software and Services Companies
(NASSCOM).

The industry grew at a compound annual growth rate (CAGR) of 13.1 per cent during FY08–
13.Total exports from the IT-BPM sector (excluding hardware) were estimated at US$ 76 billion
during FY13, Export of IT services has been the major contributor, accounting for 57.9 per cent of
total IT exports (excluding hardware) in FY13. BPM accounted for 23.5 per cent of total IT exports
during the same fiscal. The IT outsourcing sector is expected to see exports growing by 13–15 per
cent during FY15.

The technology industry of India will have a US$ 37 billion of CMO opportunity by 2020, according to
a report titled 'Marketing, Disrupted: Opportunities for the Indian technology industry' by NASSCOM
and Sapient Nitro.

INVESTMENTS;

Indian IT's core competencies and strengths have placed it on the international canvas, attracting
investments from major countries.

According to data released by the Department of Industrial Policy and Promotion (DIPP), the
computer software and hardware sector attracted foreign direct investment (FDI) worth Rs
59,381.64 crore (US$ 9.89 billion) between April 2000 and February 2014.

Some of the major investments in Indian IT and ITES sector are as follows:

 Tata Consultancy Services (TCS) plans to merge its two units in Japan with Mitsubishi Corp’s
IT subsidiary to create a joint venture (JV) company with a revenue base of US$ 600 million in the
world’s second-largest market for software services.
 Private equity (PE) firm TPG Growth and India's Smile Group will jointly invest US$ 100
million to help internet and e-commerce companies build and scale their businesses across the Asia–
Pacific region and West Asia.
 Synchrony plans to invest US$ 30–35 million on the expansion of its Hyderabad and
Bangalore facilities. “We have decided to expand our presence in India by setting up facilities in
Hyderabad and Bangalore. The idea is to get closer to the bigger talent pool and clients,” said Mr.
Faisal Husain, Founder and Global CEO, Synchrony.
 Bharti Airtel, India's largest telecom operator, has renewed its technology outsourcing
contract with software major IBM for a period of five years.
 Infosys has partnered with telecom company Orange to provide Internet TV to its customers.
Infosys will deliver a portfolio of interactive TV apps on the Orange Live box Play. The TV apps will be
powered by Infosys Digitize Edge, a digital asset and experience platform for TV operators, media
companies, advertisers and content publishers.

GOVERNMENT INITIATIVES;

The Government of India played a key role with public funding of a large, well trained pool of
engineers and management personnel who could forge the Indian IT industry.

The Central Government and the respective State Governments are expected to collectively spend
US$ 6.4 billion on IT products and services in 2014, an increase of 4.3 per cent over 2013, according
to a study by Gartner.

Some of the major initiatives taken by the Government to promote IT and ITES sector in India are as
follows:

 The Government of Bihar has unveiled 20 km free Wi-Fi zone in Patna, the longest across the
planet, making a strong impression on the world's InfoTech map.
 The Government of India has given an in-principle approval for setting up of the first
electronic system design and manufacturing (ESDM) cluster development in Electronics City,
Bangalore. The ESDM project will come up on a 1.16 acre of land at an investment of approximately
Rs 85 crore (US$ 14.16 million).
 More than 20 small and medium enterprises (SMEs) in the IT sector have recently received
land allotment letters from the Government of Punjab to set up their units with an investment of Rs
500 crore (US$ 83.24 million).
 The Government of India is planning to announce a national policy on cloud computing, as
per Mr. KapilSibal, Minister of Communications and Information Technology.

 The Governments of Maharashtra and Tamil Nadu are in talks with NASSCOM to set up
‘start-up warehouses’ for incubation of start-ups. The centers are expected to come up in Mumbai
and Chennai and are likely to be operational by December 2014.

Road Ahead

India is the most preferred location for engineering off sharing, according to a customer poll
conducted by Booz and Co. Companies are now off sharing complete product responsibility.
Increased focus on R&D by IT firms in India has resulted in rising number of patents filed by them.

India’s IT sector is gradually moving from linear models (rising headcount to increase revenue) to
non-linear ones.

In line with this, IT companies in the country are focusing on new models such as platform-based
BPM services and creation of intellectual property.

Tier II and III cities are increasingly gaining traction among IT companies aiming to establish business
in India.

Cheap labour, affordable real estate, favorable government regulations, tax breaks and special
economic zone (SEZ) schemes are facilitating their emergence as new IT destinations.

Indian insurance companies also plan to spend Rs 12,100 crore (US$ 2.01 billion) on IT products and
services in 2014, a 12 per cent rise over 2013, according to Gartner. This forecast includes spending
by insurers on internal IT (including personnel), software, hardware, external IT services and
telecommunications.

Exchange Rate Used: INR 1 = US$ 0.016 as on May 7, 2014

India is a preferred global destination for information technology (IT) and information
technology enabled services (ITES). The Indian IT-business process management (BPM) sector is
estimated to expand at a compound annual growth rate (CAGR) of 9.5 per cent to reach US$ 300
billion by 2020. The sector increased at a CAGR of 25 per cent over 2000–13, 3–4 times higher than
global IT-BPM spends. Export of IT services accounted for 57.9 per cent of total IT exports in FY 13.
Banking, financial services and insurance (BFSI) generated export revenue of around US$ 31 billion
during FY 13, accounting for 41 per cent of total IT-BPM exports from India.

Demand from emerging countries is expected to show strong growth going forward. Tax holidays are
also extended to the IT sector for software technology parks of India (STPI) and special economic
zones (SEZs). Further, the country is providing procedural ease and single window clearance for
setting up facilities. The country’s cost competitiveness in providing IT services, which is
approximately 3–4 times cheaper than the US, continues to be its USP in the global sourcing market.
Disruptive technologies present an entire new gamut of opportunities for IT firms in India. India’s IT
sector is gradually moving from linear models (rising headcount to increase revenue) to non-linear
ones. In line with this, IT companies in India are focusing on new models such as platform-based
BPM services and creation of intellectual property.

Company Profile
SUN SQUARE EDUCATION

The Company attributes its growth to the dedication of the staffs that are
professionals and have a strong will to excel at work. The clinical performance and catalyst
services made the organization as a Hallmark of its own in IT field.

OUR SERVICES

 Class Room Training

 Online Training
 Weekend Classes
 Projects Development
 Workshops
 Distance Education

TRACK RECORD IN A NUTSHELL

 Over 8years’ Experience in IT industry.

 Trained More than a 6000studentssuccessfully placed most of them.
 More than 8years’ experience in Academic ProjectsDevelopment for All Departments
(M.Tech, B.Tech, MCA, MSc, MBADegree &Diploma).
 M.Tech& Ph.d Candidates Only: Journals Publishing,Plagiarism Documentation
Providing.

 Executed Number of Placement linked job oriented/ skill development programs are
various sectors of Govt. of AP.

Our Training Highlights

 More than Five Years Industrial Experienced Faculty.

 Regular Job Melas (PLACEMENT ASSISTANCE).
 Campus Recruitment Training(CRT) Programs. 
 Special Interview Breaker Session with Highly experienced Soft Skills Faculty
 Practical exposure to advanced technology.
 Platform to apply theoretical concepts.
 Back and front end programming support
 Training by The industry experts.
 High application oriented training.
COURSES OFFERED
1) M.S Office
2) C,C++
3) Java(Core, Advanced)
4) Tally (ERP 9 With GST)
5) Hardware& Networking
6) Web Designing
7) Oracle 12C
8) Internet Concepts
9) Multimedia
IT COURCES BY THE REAL TIME EXPERTS
1) Linux Shell Scripting
2) Linux Administration
3) Python Scripting
4) Perl Scripting
5) Amazon Web Services
6) Devops
7) Cloud Computing Sales force
8) Hadoop
9) Oracle DBA
10) Advanced Excel
11) Robotic Process Automation (RPA)
12) Bigdata
13) Tablue
 14) MSBI, Power BI
15) Digital Marketing

STATE & CENTRAL GOVERNMENT PROJECTS:

SC, ST, BC CORPORATION, ITDA, DRDA (EGMM),MEPMA, DMHO, MCRHRD,

GVMC, VMC, PMKVY, DIS.WELFARE, etc..

SOFT-SKILLS PROGRAMS:

Sun Square Technologies has taken up soft-skills programs to conducting at corporate

Sectors. In that process have tie-ups with eminent Faculty who carved a niche of their own
in dealing with Management topics. In no time, it has conducted soft-skills program in
different PSUs and earned encomiums from every quarters. Some of the important topics
are:

 Emotional Intelligence.
 Business Communication.
 Strees Management.
 Time Management.
 Team Building.
 Retention of Employee and Motivational aspects & So on.

OUR CLIENTS

B.TECH & M.TECH

1.Narayana Engineering College, Nellore

2.Narayana Engineering College, Gudur

3.Sri Venkateswara College, Kodavalur, Nellore

4.Quba college of Engineering

5.SKR Engineering College

6. Audisankara College of Engineering & Technology, Gudur

7. Visvodaya Institute of Technology & Science

8. Andhra Engineering College, Nellorepalem

9. Sri Raghavendra Institute of Science & Technology, Vinjamur

10.RISE Krishna Sai Prakasam Group of Institutions 

11. RISE Krishna Sai Gandhi Group of Institutions

12. Pace Institute of Technology & Science

13. QIS College of Engineering & Technology

14. Guntur Engineering College, Guntur

15. Chadalawada Ramanamma Engineering College

16. Seshachala Institute of Technology

17.Priyadarsini College of Engineering.

MCA & MSc

17. PBR Vits, Kavali

18. Audisankara College of Engineering & Technology, Gudur

19.Quba college of Engineering

20. Narayana Engineering College, Nellore

21. Narayana Engineering College, Gudur

22. Krishna Chaitanya Degree & PG College.

23.Jagans & S-Chavans PG College.

24.VRIPS

25. Ramakrishna College, Allur

26. St.Marys Degree & PG College.Buchhi.

27.GSR, Buchhi.

28. SV University, Tirupathi.

SUN SQUARE TECHNOLOGIES

NELLORE.

Contact: 8985838512

8179898924.
 ANALYSIS AND INTERPRETATION

Q1. Do you have a program to assist employee when their personal problem may affect their on job
productivity (e.g. alcohol or drug related, financial, etc.)?

1. Yes
2. No

Assist Program

No
40%

Yes
60%

Interpretation:

In the above given data around 60% of the surveyed employees agree that the management take care
of the problems if it will affect the performance of the employees but 40% employees are not satisfied
with the way management handle their problems.
Q2. Are you presently doing performance evaluation for all field employees on a regular basis?

1. Yes
2. No

Performance Evalution

No
35%

yes
65%

Interpretation:

Since the field employees are mainly concerned with the customer and they are directly connected
with customer, performance evaluation must be done and it is implied in the company also feel the
65% employees, while rest of the employees feel that it is mainly concerned with the profit only and
not the actual evaluation of the employees.
Q3. Do you communicate regularly with field employees regarding the success of the company,
future job prospects and other issues affecting the company?

1. Yes
2. No

Regular communication
yes No

40%

60%

Interpretation:

Only 40% of the employees feel that the field employees are concerned regarding the changing
scenario and the upcoming problems or the issues affecting the company, 60% feel that the field
workers are only limited to the field and profits and they are not involved actually in the discussion,
this work has been mainly done by the research and development department (R&D).
Q4. When lying off workers, do you try to find work for them also when in the industry?

1. Yes
2. No

Find work at lay off

yes No
20%

80%

Interpretation:

Only few middle management people feel that it has been done but rest of the 80% feel that there is
no such clause, but record says that no such situation has been observed yet.
Q5. Do you have a well understood pay for performance compensation program?

1. Yes
2. No

Pay for performance

yes No
25%

75%

Interpretation:

Most of the employees say yes to the question that they have system for compensation according to
performance but 25% of the employees feel that they are not compensated according to their work
and performance.
Q6. Do you have a formal orientation program for new employees?

1. Yes
2. No

Orientation program
yes No

10%

90%

Interpretation:

Almost all of the employees feel comfortable with the program only few feel that such program do
not include the whole knowledge of the company.
Q7. Do you provide incentives or rewards to employees for bringing forward suggestion on
improving productivity?

1. Yes
2. No

Reward for suggestion

yes No

40%

60%

Interpretation:

New ideas are always welcomed in the organisation feel 60% of the employees but 40% feel that they
have not given ample amount of chance to present new ideas.
Q8. Do you formally recognize field employee with 20 or 25 years service with your organization?

1. Yes
2. No

Recognize field employees

yes No

40%

60%

Interpretation:

Only 40% employees are aware of the record of field employee from 25-30 years but there is no such
special recognition for these people, only the people related to the same particular field aware of them
feel 60% employees.
Q9. Do you conduct occasional surveys of your employees, receiving formal feedback on company
policies, compensation, benefits, employee attitudes, etc.?

1. Yes
2. No

Feedback on company policies

yes No

35%

65%

Interpretation:

Only 35%employees feel this data true as the compensation is not based on surveys and feedback, but
it is based on management and the special criteria based on which it has been calculated feel the 65%
of the employees.
Q10. Do you conduct regular survey of your competition to ensure your compensation policies are
competitive?

1. Yes
2. No

Compensation survey
yes No

30%

70%

Interpretation:

Although the employees are not much satisfied with the compensation policy but regarding
compensation policies to the competitors 70% feel that they provide the best in the industry, while
30% feel that they don’t keep regular check on the changing scenario.
Q11. Does your company offer a pension or retirement savings plan or profit sharing plan for field
employees?

1. Yes
2. No

Pension plan
yes No
2%

98%

Interpretation:

Almost all of the employees are satisfied with the Pension Plans Company is providing; only a few
percent feel that it is comparable to the govt. plans.
Q12. Are you providing field employees with a comprehensive group benefits program (life
insurance, extended medical and dental benefits, etc)?

1. Yes
2. No

Comprehensive group benefits

yes No

40%

60%

Interpretation:

Field employees are always benefited when we talk about the compensation plans as they directly
deal with the customers and changing scenario and research and development.
Q13. Do you think that in the competitive age you have given the right environment to performer?

1. Yes
2. No

Environment to perform
yes No

50% 50%

Interpretation:

Regarding the working environment employees are a bit confused because they are not sure that they
have given the right environment to perform comparative to others.
Q14. Do you have a formalized complaint resolution process within your company?

1. Yes
2. No

Complaint resolution
yes No

10%

90%

Interpretation:

Only 10% of the employees feel that their problem has solved, rest feel that they don’t have such
program and moreover they don’t have time to solve small issues on complains.
Q15. Do you organize any program like meditation classes or another stress buster for the
employees?

1. Yes
2. No

Meditation program
yes No

40%

60%

Interpretation:

60% of the employees feel that they have given such meditation program no. of times depending on
their work, while 40% have not attended such program yet; the 40% are the younger employees.
 FINDINGS

 Management take care of their problems only 6o% of employee said that but the rest
are not satisfied with management
 35% employees feel that the evaluation is only for profit not for actual evaluation of
employee on the other hand 65% feels opposite.
 Organization don’t involved field employees in discussion regarding changing
scenario and upcoming problems.
 Management helps only few middle management employees in finding job at lay off.
 Company has a system of pay for performance 75% employees feel that but rest are
opposite to it.
 Provides reward for forwarding any new suggestion and idea regarding any problem
only feel by 60% of the employees.
 Not so much recognition for the field employees for their records in 25-30 years of
job only a few employees are aware.
 Only 35% employees feels that feedback is provided by them regarding
compensation, benefits and employees attitude but rest feel it is based on management
and the special criteria based on which it has been calculated.
 Almost all of the employees are satisfied with the Pension Plans Company is
providing only 2-3 employees are opposite to it.
 Regarding the environment for work half of the employees feel good but the other
half are confused.
 No proper complaint solution program is there in the organization only 10%
employees feel that organization provide solution for their problems.
 60% of employees feel that organization arrange meditation program no. of times.
 RECOMMENDATIONS

 In the above study I felt that there are lots of policies in the written form but the
application part is missing, so I would suggest applying what has been written.
 In my study the % of field employee’s involvement is 40%only. But the field
employees are the back bone of the organisation so I feel that, the field employees
can also be included during various discussions along with R&D department.
 The laying off worker does not have much security regarding the job prospective
in the industry feel 80% employees. Although this type of situation has not been
arrived yet but I suggest that company must have such type of policies in their
system for future security.
 In the organisation 40% employees feel that there is no recognition to the old field
employees. I suggest to the organisation that they can have regular half yearly
programs in which all the employees can be introduced to the new staff and
informal meetings can be there.
 90% employees feel that they don’t have complain resolution programs so I
suggest that complain handling department can be created for such types of
resolution.
 35% feel that there is no formal feed back involved during time of compensation
planning; I suggest that company can prepare a form in which they can have
regular feed back from the employees.
 CONCLUSION

With the above analysis it has been concluded that the organisation is at the middle level.
It performs the employee retention policies to a greater extent.

The organisation has the potential to benefit from human resources programs. The
introduction of a few programs could put it in to the ballpark of being a solid company to
work for from an employee viewpoint. It covers the programs such as (compensation,
benefits, retirement, supervisor training and safety)

But some of the practices are in the written from only and yet to be applied in practical
life and with the application of such programmes the organisation will reach to the extent.
Out of the 15 question asked almost 55% response was in yes it means that the employees
are satisfied with their policies but there is still hope for further improvements.

Compensation policies: - compensation policies are the best mean to stop attrition rate
and almost 65% employees are satisfied with the compensation plans and the
performance evaluation programmes in the organisation.

Working conditions: - working condition in the organisation are still to be improved feel
50% of the employees as the employees feel that there is less participation of the
employees during discussion time and hence some part remain hidden

Complain handling: - the organisation has poor complain handling process feel 90% of
the employees which is a big drawback to the organisation.

Training and development: - 70% employee’s feel that the training and development
programmes is satisfactory, employees feel that company provides additional meditation
programmes which help them to recover from their problems.
 LIMITATIONS OF STUDY

 Time is very short for research, so this is very difficult to get the knowledge about
everything.
 Since the filling of questionnaire and interviews need special attention so may be
the employees are less interested in entertaining.
 The information was collected through the questionnaire is subject to willingness
of the respondent to respond.
 BIBLIOGRAPHY

 Boudreau Milkovich, Human Resource Management, New Delhi, business

publications,inc:1994
 Sahu, R.K.,Training for Development, New Delhi, Excel Books,2008
 Branch, Shelly (1998, November). The new economy: You hire ‘em. But can you
keep ‘em? Fortune, 247.
 Carney, Karen (1998, November). How businesses can reduce high employee
turnover.Inc, 47.
 Denton, D. Keith (1992). Recruitment, retention, and employee relations. West
Westport, CT: Quorum
 Lynn, Jacquelyn (1997). Hard to hold: Conquer the tight labor market by retaining
valuable workers. Entrepreneur, 34.
 Spragins, Ellen E. (1992, November). How to retain key employees. Inc., 36
 Taylor, Susan L. & Cosenza, Robert M. (1997, December). Internal marketing can
reduce employee turnover. Supervision, 3-5
 The Human Factor, Feb 2011,volume 2, issue 3

Website:

 www.citehr.com
 www.google.com
 www.humanlinks.com
 http://retention.naukrihub.com
 http://www.expresspharmaonline.com/20060615/pharmalife01.shtmlg
 Date:-
QUESTIONNAIRE

Name: -
Email Address: -
Contact Tel (inc. STD):-

Q1. Do you have a program to assist employee when their personal problem may affect their on job
productivity (e.g. alcohol or drug related, financial, etc.)?
3. Yes
4. No
Q2. Are you presently doing performance evaluation for all field employees on a regular basis?
3. Yes
4. No

Q3. Do you communicate regularly with field employees regarding the success of the company,
future job prospects and other issues affecting the company?
3. Yes
4. No

Q4. When lying off workers, do you try to find work for them also when in the industry?
3. Yes
4. No

Q5. Do you have a well understood pay for performance compensation program?
3. Yes
4. No

Q6. Do you have a formal orientation program for new employees?

3. Yes
4. No

Q7. Do you provide incentives or rewards to employees for bringing forward suggestion on
improving productivity?
3. Yes
4. No

Q8. Do you formally recognize field employee with 20 or 25years service with your organization?
3. Yes
4. No
Q9. Do you conduct occasional surveys of your employees, receiving formal feedback on company
policies, compensation, benefits, employee attitude s, etc.?
3. Yes
4. No

Q10. Do you conduct regular survey of your competition to ensure your compensation policies are
competitive?
3. Yes
4. No

Q11. Does your company offer a pension or retirement savings plan or profit sharing plan for field
employees?
3. Yes
4. No

Q12. Are you providing field employees with a comprehensive group benefits program (life
insurance, extended medical and dental benefits, etc?
3. Yes
4. No

Q13. Do you think that in the competative edge you have given the right environment to the
performer?

3. Yes
4. No

Q14. Do you have a formalized complaint resolution process within your company?

3. Yes
4. No

Q15. Do you organize any program like meditation classes or another stress buster for the
employees?

3. Yes
4. No
Q16. Please use the space below for any further comments to your responses, or any suggestions
on how I could improve