DEPARTMENT OF MANAGEMENT

STUDIES
MALWA INSTITUTE OF TECHNOLOGY,INDORE

Major Research Project

On

"Key factor of Retention And Retention Strategy In Telecom

Sector With Special Reference To Indore City"

Submitted to
DEVI AHILYA VISHWAVIDYALAYA, INDORE
For the fulfillment of degree of
M.B.A (Full Time)
(Session 2020-2022)

Supervision & Guided by Submitted By:

Anjali Patidar
Mr. Mukesh Vagerwal MBA (FT) III SEM
Finance & Marketing
Roll No . 32130047
 Declaration

I ,Anjali Patidar a student of Malwa Institute of Technology, Indore hereby

declare that the work done by me to do the Major Research Project titled
"Key factor of Retention And Retention Strategy In Telecom Sector With
Special Reference To Indore City" is authenticate as per my knowledge and
work outcome of my own research. This report in any form has not been
submitted to any other institute or university for any degree or similar
award.

Date: Anjali Patidar

Place: INDORE MBA (FT) III Sem.
Finance & Marketing
 Acknowledgement

I sincerely and religiously devote this folio to all the gem of persons
who have openly or silently left an ineradicable mark on this
research so that they may be brought into consideration and given
their share of credit, which they genuinely and outstandingly
deserve.

I am essentially indebted to my guide Mr. Mukesh Vagerwal for this

sweating learning experience. she overlooked my faults and follies,
constantly inspired and mentored via his proficient direction. It was
a privilege to work under her sincere guidance.

I express my thanks to Director, Dr. Kranti Pandey Coordinators &

faculty members for his considerate support whenever and wherever
needed. I express my indebtedness to the management of Malwa
Institute of technology for inspiring me to grab and utilize this
opportunity.

With profound sense of gratitude, I would like to truthfully thank a

recognizable number of individuals who I have not mentioned here,
but who have visibly or invisibly facilitated in transforming this
research into a success saga.

Above all, I would like to conscientiously thank the Omnipotent,

Omnipresent and Omniscient God for his priceless blessings!

Date: Anjali Patidar

Place: INDORE MBA(FT) III Sem
Finance & Marketing
 Certificate from Director & Faculty Guide

This is to certify that Anjali Patidar of MBA (Full Time) III semester
in Malwa Institute of Technology, Indore (M.P.) has carried out a Major
Research Project titled "Key factor of Retention And Retention Strategy
In Telecom Sector With Special Reference To Indore City" The work
done by her is genuine and authentic.

The work carried out by the student was found satisfactory. We

wish her all the success in career.

Director Faculty Guide

Dr. Kranti Pandey Mr. Mukesh Vagerwal

MIT, Indore MIT, Indore
 Certificate from Internal & External Examiner

This is to certify that Anjali Patidar of MBA (Full Time) III semester
in Malwa Institute of Technology, Indore (M.P.) has carried out a
Major Research Project titled "Key factor of Retention And Retention
Strategy In Telecom Sector
With Special Reference To Indore City" The work done by her is genuine
and authentic.

The work carried out by the student was found satisfactory. We

wish her all the success in career.

Internal Examiner External Examiner

Date:

Place: INDORE
 Table of content

Chapte Content Page

r s
1 Introduction

2 Review of Literature

3 Research Design and Methodology

3.1. Rational of the Study
Objectives of the Study
Type of Research

Population
Sample
The Tools
For Data Collection
For Data Analysis

4 Data Analysis and Interpretation

5 Conclusion and Suggestions

References
Appendices

6
CHAPTER 1. INTRODUCTION
1. Introduction:

Employee retention refers to the various policies and practices which let the
employees stick to an organization for a longer period of time. Every organization
investstimate and money to groom a new joiner, make him a corporate ready
material and bring him at par with the existing employees. The organization is
completely at loss when the employees leave their job once they are fully trained.
Employee retention takes in to account the various measures taken so that an
individual stays in an organization for the maximum period of time.

In any kind of business, customers or clients are important part of bringing

the profit back to the enterprises. In various industries, whether inproduction or
services, the customers always play an inspiration and became part of the long
term goal of the organizations. This is because of the increasing uncertain ties in
the market and the rapid changes that heightened the competition. Effective
employee retention is a systematic effort by employers to create and foster an
environment that encourages current employee store main employed with the
policies and practices in place that address their diverse needs.

“The best employers inspire and maintain a passion for outstanding achievement. They not
only pose sharp focus and clarity but also share its imply and effectively with the
employees. "It’s not only the cost incurred by accompany that emphasizes the need for
retaining employees but also the need to retain talented employees from getting poached.
The process of retention will benefit an organization in the following ways; reduction in the
cost of turnover, reduction in loss of company knowledge, less interruption of customer
service, maintained good will of the company and regaining efficiency. Retaining best
employees in the organization is effected through such parameters as customer
satisfaction, more than satisfactory product sales, satisfied coworkers and reporting staff,
effective succession planning and deeply
Embedded organizational knowledge and learning employees. Organizational
issues, such as training, time and investment to regain lost knowledge for insecure
workers and costly candidate search outside is in variably costly.
Various estimates suggest that losing a middle- level manager costs an organization
upto 100percent of his salary whereas the loss of as enior executive is presumably
even more costly. "The macro effect is balanced by one company losing its critical
staff to another randam company getting critical resources in return, but aligning them
to the organization, still remains a challenge".
IT and ITES sectors saw the highest attrition rate of 23% in the first quarter of
2010- 11. In contrast, the banking and financial services sector witnessed an
attrition rate of 18%, followed by health care12%, FMCG 11% and automobiles
and manufacturing 11%. Employee retention has become one of the major
concerns for the health of any organization. Many a time, exit interviews with
departing employees provide valuable information, which can fairly be used to
retain remaining staff. A continuous shortage of Trained personnel has forced
many industries, to name one that is the Indian mutual fund industry, to use
employee stock option programs to attract and retain good employees.
The Indian telecom industry was poised to reachasize of Rs 344,921 corer by 2013
at a growth rate of over 26 percent and generate employment opportunities for about
10 million people during the same period.

To be specific about the growth of the industry, the industry was projected to create direct
employment for 2.8 million people and for 7 million indirectly, according to are port.
In the past couple of years, there have been vast changes in the operational
technologies in telecom industry by way of modernization and computerization of
exchanges, resulting in paradigm shift from labor-intensive landline business to
capital –intensive new technologies.
EMPLOYEE RETENTION

Effective employee retention is a systematic effort by employers to create and

foster an environment that encourages current employee to remain employed by
having policies and practices in place that address their diverse needs. Aretention
strategy be comes a powerful recruitment tool. Retention of key employee is critical
to the long term health and success of any organization. It is a known fact that
retaining your best employees ensures customer satisfaction, increased product
sales, satisfied colleagues and reporting staff, effective succession planning and
deeply imbedded organizational knowledge and learning. Employee retention
matters as organizational issues such as training time and investment; lost
knowledge; insecure employees and a costly candidate search are involved. Hence
failing to retain a key employee is a costly proposition for an organization. Various
estimates suggest that losing a middle manager in most organizations costs up to
five times of his salary. Intelligent employers always realize the importance of
retaining the best talent. Retaining talent has never been so important in the Indian
scenario; however, things have changed in recent years. In prominent Indian
metros atleast, there is no earth of opportunities for the best in the business, or
even for the second or the third best. Retention of key employees and treating
attrition troubles has never been so important to companies.
In a nintensely competitive environment, where HR managers are poaching from
each other organization can either hold on to there employee tight or lose them to
competition. Forgone are the days, when employees would stick to an employer for
years for want of a better choice. Now, opportunities a bound. It is afact
that retention of key employees is critical to the long term health and success
of any organization.
The performance of employees is often link directly to quality work, customer
satisfaction, and increase products a le and even to the image of the company.
Whereas indirectly linked to, satisfied colleagues and reporting staff, effective
succession planning and deeply embedded organizational knowledge and learning.

Employee retention matters as organizational issues such as training time and

investment, costly candidate search etc. are involved. Hence failing to retain a key
employee is a costly proposition for any organization various estimates suggest
that losing a middle manager in most organizations, translate to a loss of up to five
times his salary.
Employee retention strategies helps organizations provide effective employee
communication to improve commitment and enhance workforce support for key corporate
initiative.
Hiring knowledgeable people for the job is essential for an employer. But retention is even
more important than hiring.
Employee Retention in volves taking measures to encourage employee store main in the
organization for the maximum period of time. Corporate is facing a lot of problems in
employee retention these days. In today's environment it be comes very important for
organizations to retain their employees. 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
organizationas the cost of employee turn over adds hundreds of thousands of money to
acompany's expenses. While it is difficult to fully calculate the cost of turn over (including
hiring costs, training costs and productivity loss), industry experts often quote25% of the
average employee salary as a conservative estimate. When an employee leaves, he takes
with him valuable knowledge about the company, customers, current projects and past
history (sometimes tocompetitors).
Customers And clients do business with a company in part be cause people.
Reationships are developed that encourage continued sponsorship of the business.
When an employee leaves, the relationships that employee built forth ecompany are
severed, which could lead to potential customer loss. When an employee terminates,
the effect is felt through out the organization. The good will of accompany is
maintained when the attrition rates are low. Higher retention rates motivate potential
employees to join the organization. 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
we cannot assure of the same efficiency from the new employee.
The attrition rate has always been a sensitive issue for all organizations. Calculating
employee turn over rate is not that simple, as it seems to be. No common formula can be
used by all the organizations. A formula had to be devised keeping inview the nature of the
business and different job functions. Moreover, calculating attrition rate is not only about
devising a mathematical formula. It also has to take into account the root of the problem by
going back to the hirring stage.
Many firms may not include attrition off resher's who leave because of higher studies
or within three months of joining.

In some cases, attrition of poor performers may also not be treated as attrition. Attrition
rates can be calculated using a simple formula:

Attrition = (No.of employees who left in the year/ average employees in the year) x100

Thus, if the company had 1,000 employees in April 2004, 2,000 in March 2005, and 300
quit in the year, then the average employee strength is 1,500 and attrition is
100* (300/1500) = 20percent.
Besides this, there are various ot her types of attrition:

▪ Fresher attrition that tells the number offresher's who left the organization
with in one year. It tell show many are using the company as aspring board
or a launch pad.

▪ Infant mortality that is the percentage of people who left the organization with
in one year. This indicates the ease with which people adapt to the
company.

▪ Critical resource attrition, which tells the attrition interms of key personnel
like senior executives leaving the organization.

▪ Low performance attrition: It tells the attrition of those who left due to poor
performance.
ATTRITIONCOSTS:
One of the best methods for calculating the costs of turnover takes into account
expenses involved to replace an employee leaving an organization. These
expenses are:
A. Recruitment cost The cost to the business when hiring new employees includes
the following six factors plus 10 percent for incidentals such as background
screening, times penton sourcing replacement, times penton recruitment and
selec tion, travel expenses, re-location costs, if any in Training/ramp- up time
and background/reference screening.

B. Training and development cost To estimate the cost of training must be taken
into consideration. This will me an direct and indirect costs, and can be largely
classified as training materials, technology, employee benefits and trainers'
time.

C. Administration cost It includes setting up communication systems, adding

employees to the HR system, setting up the new hire's work space and setting
u p ID-cards, access cards, etc.

Myths About Employee Morale Prevent Companies From Achieving

Retention Success:
Any team member wants to feel that he or she is being paid appropriately and fairly
for the work he or she does. Be sure to research what other companies and
organizations are offering interms of salary and benefits. It is also important to
research what the regional and national compensation averages are forth at
particular position. You can be sure that if your compensation package is not
competitive, team members will find this out and look for employers who are willing
to offer more competitive compensation packages.
 • Balance work and personal life
– Family is incredibly important to team members. When work begins to put a
significants train on one's family no amount of money will keep an employee
around.
Stress the importance of balancing work and one's personal life. Small gestures
such as allowing a team member to take an extended lunch once a week to watch
hisson's baseball game will likely be repaid with loyalty and extended employment
with an organization.

• Be ware of burn out

– Staff adequately to reduce the amount of unwanted over time a team
member must work. Some employees enjoy the extra money that accompanies
over time hours, while others would rather spend their time with their families or
doing other activities they enjoy. Burn out can be a leading cause of turnover.
Recognize the warning signs and give employees a break when they need it.

• Provide opportunities for growth and development

– Offer opportunities for team members to acquire new skills and knowledge
use full to the organization. If an employee appears to be bored or burned out in a
current position offer to train this individual in another face to f the organization
where he or she would be a good fit. Nobody wants to feel stuck in their position will
no possibility for advancement or new opportunities.
– • The ability to provide in put and be taken seriously
Everybody has opinions and ideas, some are better than others. However every
team member wants to feel that their input is welcome and will be taken seriously
with out ridicule or condescension. Some of the greatest ideas can come from the
most unlikely of places and people. Creating a culture where in put is welcome
from all level of the organizational chart will help your organization grow and
encourage employee retention.
• Management must take the time to get to know team members
•
– It's not a big surprise that one of the greatest complaints that employees
express in exit interviews is a feeling that management didn't know they existed.
Nobody wants to feel like just an other spoke in a big wheel. Managers are very
busy every body is busy, but it’s crucial that managers and supervisors take the
time get to know the team members who work under them. Learn and remember at
team member's name, what skills and talents they bring to the table, and what
their business interestsare. The times pent by management getting to know team
members is well invested and can eliminate the headaches caused by having to
continually hire and re- train new employees.

•Provide the tools and training an employee needs to succeed

– Nothing can be more frustrating to an employee than a lack of training or

the proper tools to successfully complete his or her duties. You wouldn't try to
build a house with out a hammer, so why should an office job be any different?
Providing a team member with the tools and trainings he needs to be successful
shows a commitment and investment in that employee and will encourage the
team member to stay with the organization.

• Make use of a team member's talents, skills, and abilities–

• Al lteam members have knowledge, skills, and abilities that aren't

directly related to their job description, but are still useful to an
organization.
Utilizing a team member's talents in are as other than their current position will
indicate to an employee that management appreciates and recognizes all that an
employee has to offer to the organization
.This can also provide work variety and helps to breakup the everyday grind of work.

• Never threaten a team member's job or income

– While threatening an employee with termination or demotion might seem
like asure fire way to get the results needed from him or her, doing so will likely
cause the employee to leave the organization. Put yourself in the employee's
shoes, what is the first thing you would do if your job was threatened? Odds are
you would probably update your resume and start checking for open job postings
expecting the worst. If a team member's performance is not what you had hoped it
would be, work with that team member on ways to improve his performance,
saving termination only as a last resort. Take some time and seriously evaluate
what your organization is doing to encourage a high retention workforce. Having a
sea soned and well trained workforce can deliver a competitive advantage that is
difficult to replicate. The best partis most of your efforts to retain your employees
come free or with little charge and offer huge returns on a manger’s investment in
time and resources.

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 acompany’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’s knowledge:
When an employee leaves, he takes with him valuable Knowledge about the company,
customers,current projects and past this story(sometimes to competitors). Often much time
and money has been spent on the employee in expectation of 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.
Relationship sare developed that encourage continued Spons or ship of the
business. When an employee leaves, the relationships that employee built
for the company are served, which could lead to potential customer loss.
Turnover leads to more turn overs: When an employee terminates, the effect is felt
Through out the organization. The un spoken negativity often
intensifies for the remaining Staff.

Good will of the company: The good will of accompany is maintained when the
attrition rates are low. Higher retention rates motivate potential employees to join
the organization.

Regaining efficiency: If an employee resigns, the good amount of time is lostin hiring
employee and then training an employee and this goes to the loss of the company directly
which many a times goes unnoticed. And even after this companies cannot assure us of
the same efficiency from then employee.

The Three R’s Of Employee Retention: To keep employees and keep

satisfaction high, you need to implement each of the three Rs of employee
retention: respect, recognition, and rewards.
Respect:

Is esteem, special regard, or particular consideration given to people. As the

pyramid shows, respectis the foundation of keeping your employees. Recognition
and rewards will have little effect if you don’t respect employees.

Recognition:

Is defined as “special notice or attention” and “the act of perceiving clearly”. Many
problems with retention and morale occur because management is not pay in gat
tention to people’s needs and reactions.

Rewards:

Are the extra perks you offer beyond the basics of respect and
recognition that make it worth people’s while to workhard, to care, to go
beyond the call of duty. While rewards represent the smallest portion of
the retention equation, they are still an importantone.

When you implement the “three Rs” approach, you will reduce turnover and enjoy the
following:

➢ Increased productivity

➢ Reduced absenteeism

➢ A more pleasant work environment

➢ Improved profit

KEi’s EMPLOYEE RETENTION WHEEL

The first step to improving your employee retention is to understand why employee stay
with their current employer. Many “experts” well on the reasons employee leaves, which is
not as important or revealing as there as on they stay. Companies have tried many
different programs and perks to hold on to good employees. However, studies show that
these efforts are not enough to retain good employees when the support that is needed to
achieve job success is not adequate.
Don't Waste Your Money on Things That Don't Make a Difference…

KEi's Employee Retention Wheel™ Are truly what give employees a consistent
reason for saying "no thank you" when tempted with a "sweeter offer. "After years of
study and experience, Kei has determined, and presented in the Retention W heel,
what factors do have the greatest impact on keeping employees. Kei has used this
information to give employers the tools to meet the core needs that keep employees
successful at their jobs, thus reducing the high costs associated with unwanted
employees.
 KEi•s Employee Retention Wheel'IM

•ccnrro/labte etttployee turnover' is caused by only twa things: 'Bad hiring'

ond 'Bad Treatment. Employers llY numerous thirrgs to keep good
employees. However. studies show Jhat the programs in theourer two rings
do not hove as greot on impact on retoirrirag employees as the processes
iderHi/ied in the center of K£i's Employee RetentionWheel. frnptoyers need
to focuson providing supervisors with the tools that implement the
processes at theeentet of thewheel.

Kl!epEmployeM, lrtt., 5058 WutrldSe Drh,l!, Fort( llin$, CO 80S26

www.keepemptoyees.com
1·888·458•1835
Using the Wheel To Improve Employee Retention:

KEi's Employee Retention Strategy is based upon two primary beliefs:

(1) It is difficult for employers to retain good employees if they don't have a process to hire
the right people in the first place.

(2) Retention processes must directly support the reasons that successful, satisfied
employees stay. Kei's concentration on the center of the Employee Retention Wheel
provides employers with Internet based tool that give employee systematic, ongoing
support to be successful in their work and satisfied with their employment.

Reason for Employee to Come To the Organization:

➢ Pay, ➢Location,
➢ Benefits,
➢ Advancement Possibilities,
➢ Job Security,
➢ Nature Of Work,
➢ Personal /Family Time.

Reason For Employee To Stay With The Organization:

o Confidence Factor – they believe in potential success / leadership strategies

Emotional Factor - (Huge) contribution, recognition, appreciation
o Trust Factor – 2 ways – promises / commitments kept (strong link to loyalty)
o Fit Factor – Values / ethics are a good fit
o Listening Factor – Are they heard and valued?
Key Retention Factors:
Appreciation
Financial compensation is but one factor of many in this category. Apprentices want to do
work that the employer values, and be recognized for it. Apprentices need employers to
provide:

o Positive reinforcement when a job is well done, and constructive feedback when
required.
o Creative social or financial incentives to recognize their work: these could be
individual app recitation events (raise, bonus,top- up to E. I. while in
school, pay roll deduction for tools) or social (recognition in company
News letter etc.) Find out what your employees would best respond to.
o Team building and recognition events.
o Information about the big picture, how their work contributes to the whole
projector business, and what the core values of the work place are.

Liking Co-Workers

Liking their Co workers is one of the most important factors increating a positive
work environment, and seems to be more important than concern for remuneration.
Liking Co-workers definitely affects whether or not an apprentice stays with an
employer. If an employer hires the right people cooperation and cohesiveness
improves in the work place, and productivity is increased. Be sure to:

 Make the investment to hire the right people, to create a culture that nurtures
positive attitudes, prideand cooperation.
 Be a role model yourself: interact with employees in a positive way.
 Create a working environment that employees will enjoy coming to everyday.
 Establish work units or teams to further develop cooperation and collaboration.
Loyalty

Apprentices want to make a commitment to an employer, but that attachment is based on

job satisfactio.
Apprentices who are loyal to the company are more apt to market the merits of the
business and to stay, leading to less turnover and higher productivity.

▪ Be loyal and supportive of apprentices, it's the best way to encourage them to
beloyal to you!
▪Deliver on your commitments : if you make them,
keep them it's the bestway to build the relationship.
▪ Seek out and use feedback from your apprentices.
▪ Appreciate and recognize apprentices.

Communication

Apprentices want to be given feedback, but not just when there are problems. A minute's
explanation could save hours of rework, and remember, they are not mind readers.
Communication of clear directions and expectations increase apprentice productivity and
enhance the workplace environment. Verbal abuse by an employer was one of the most
significant complaints by apprentices.

▪Schedule regular opportunities for communication between management or

supervisors and apprentices.
▪ Take the time to clearly explain jobs and answer the apprentices' questions.
▪ Inform apprentices about the policies, procedures and general goals of the business.
▪ Remember that verbal abuse can stifle initiative and loyalty.
Pride

Apprentices are proud of the work that they do and are attracted to employers that stress
quality work. Quality work in turn encourages repeat business, reduces re- work and
wasted time and materials. Clearly this is good for business and enhances over all job
satisfaction. Take steps to:

▪ Consistently reward and recognize quality work.

▪ Provide appropriate materials, training and time to do the job right.
▪ Provide constructive feedback to enhance quality.
▪ Show apprentice show their work contributes other whole project.

Responsibility

Apprentices stay with employers who give them a level of responsibility equal to
their ability. They feel frustrated when they are under utilized and anxiety at having
to deal with situations beyond their abilities. Matching their skills to the jobs that
need to be completed leads to faster turn around times, increases apprentices'
abilities and self- worth and commitment.

▪ Conduct regular performance reviews and adjust the level of responsibility

accordingly- this inturn increases the over all skill base of the company.
▪ Match responsibility to ability- overorunder- estimating leads to job dissatisfaction.
▪ Offer
new challenges and vary ther outine of the job where possible so
apprentices stay interested in the work.
 Safety
Apprentices want to work in a safe environment and produce products or services
that are not harm full to the consumer. Safe working conditions attract and retain
apprentices. Increasing work place safety as well as product safety reduces re-
work and potential legal costs. An attempt to save money by cutting corners could
lead to serious consequences for an apprentice who often depends on his or her
physical ability to make a living.
▪ Develop a safety first work place policy.
▪ Educate and train employees on health and safety issues.
▪ Be a role model for safe practices.
▪ Appoint a health and safety officer or team to review current policies or introduce new
ones
Access To Training Apprentices would appreciate better access to work-
related training: not having to fight toget in to their in- school training because their
employer wants them to remain working. They'd also like to be able to utilize the
training they receive when they get back on the job. Colleges and the
Apprenticeship Branch have a role to play in ensuring that the training provide
disup-to –date and relevant.

Develop formalin- house training that provides apprentices with arrange of

training opportunities.
▪ Allow and broker access to out side training opportunities if you cannot provide
training in all the required are as.
Find out what apprentices are learning in school, and match on- the job
training to the skills acquired in class.
Work Life Balance

Apprentices want to work for an employer who recognizes and allows employees to
have a lifeoutside of the work place.
Employees with a healthy work/ life balance are also more productive and have
lower absenteeism rates. Some strategies to consider:

▪ Allow apprentices time to attend to their personal life needs.

▪ Plan the workday to maximize efficiency and avoid wasted time.
▪ Do provide health and dental benefits.
▪ Start a pension plan to encourage apprentices to stay long-term.
▪ Plan social events that include apprentices 'families.
 CHAPTER-2
LITRATURE REVIEW
2.REVIEW OF LITERATURE:

Bilginsoy, Cihan, (2003), studie \d apprentice shipprograms in the United States,

which provide workers with the broad based skills required for practicing a
tradeviaon-the-job training, are sponsored either run ilaterally by employers or
jointly by employers and trade unions. A comparison of the attrition and retention
rates in these programs shows that program completion is more likely for
apprentices in joint programs than for similar apprentices in unilateral programs.
Rates of completion are lower for women than for men, and lower for ethnic and
racial minorities than for whites.

Kulshreshtha, Ashutosh Kumar, T.Krishna (2005), develops at he or etical model

for employee contribution and compensation and explores the problem of attrition
from an economic point of view. Model based on the characteristics of the
employee and the organizational environment; Employee value and employee cost
to company; Motivation and salary hike.
Bhatnagar, Jyotsna. (2007), Investigates talent management and its relationship to levels of
employee engagement using a mixed method research design. In the first phase low factor
loadings indicated low engagements cores at the beginning of the career and at completion
of 16months with the organization. High factor loadings at intermediate stages of
employment were indicative of high engagement levels, but the interview data reflected that
this may mean high loyalty, but only for a limited time. In the second phase factor loadings
indicated three distinct factors of organizational culture
,career planning along with incentives and organizational support. The first two
were indicative of high attrition.

Niranjan T, Srivastava T, SamirK (2008), discusses about the Bangalore based

Sparsh Call Centre was setup as a subsidiary of the major telecom software
company IP- Trinity, with ambitious plans of becoming a significant player in the
booming BPO (business process out sourcing) space. Its strategy, in line with that
of its parent group, was to focus on telecom related services. People management
was, to a great extent, managed by sophisticated work force management
software, supplemented by supervisory actions by managers. This case is useful in
highlighting the complexities of managing
Call centre's and the unique people issues involved. Inparticular, high employee attrition
can cause reduction in service quality as well as reduced capacity. Cost effective
innovative retention schemes may be needed to retain call centre staff to achieve this scale
up.
Franckeiss, Anton. (2010), demonstrate show to re-engage talented employees after they
have left an organization. The ''Green Room'' is afacilitated process that moves beyond a
simple employee exit survey approach to build report thats upports not only re-
engagement ,but also the identification and auctioning of critical push and pull factors at
play with in an organization. This enables it to develop and strengthen its employee value
proposition and its positioning as an employer of choice. Through the provision of
confidentiality and skilled third party practitioners, the Green Room process not only leads
to the successful return of a percentage of previously departed key talent, but informs an
organization's talent management, recruitment and retention strategies and practices, and
can significantly reduce attrition rates.
 CHAPTER-3
RESEARCH METHODOLOGY
3. RESEARCH DESIGN AND METHODOLOGY:

Rational of the study:

All companies are facing massive challenges in today’s highly competitive market
and strive to acquire the maximum possible market share in an over crowded
market. There are certain threats which companies are facing such as:

The nature of competition which is going global . The rate of change is accelerating
out of control. Margins are being eroded.
Customers are becoming more demanding and gettingless loyal

Customer churn is increasing.

Product life cycles are decreasing. Industry barriers are

collapsing, major brands entering new markets.

As a strategy, organizations pursue CRM for a variety of reasons, including

information sharing between departments to improve customer service or simply to
stay a breast of the competition. Managing studies have shown that retaining
current customers is much less expensive than attempting to attract new ones.
Companies have come to realize that inorder to develop successful long-
 term, relationship with customers they should focus on the “economically valuable’’
customer, while keeping away and eliminating the “economically in valuable’’ ones.

Objective of the study:

The objective of the paper is:
▪ To find study about the key factors of retention and the
satisfaction level of the employees with regards to same.
▪ To know the effectiveness of the retention strategies.
▪ To reduce the cost of employee turnover.
▪ To maintain the goodwill of the company.

Type of Research: It is an empirical Research.

3.4 Population Size: the respondents are related to the telecom

industries at Indore region.

3.5 Sample: Sample Size: The total sample size is 100 employees from

Sampling Type: The sampling used for this study was a' simple random

sampling’ Methods.

3.6 The tools: For Data Collection

PrimaryData: The questionnaire was filled by directly meeting the employees of
the organizations.
SecondaryData: Secondary data were collected from newspapers, magazines
Journals, online resources etc.

3.6.2 For data analysis: Used percentage method and graphical method for
analyzing data.
 .

CHAPTER-4 DATA ANALYSIS

AND INTRPRTATION
4.DATA ANALYSIS AND INTERPRETATION:

A) Importance of Training The main motive of asking this question is to know

that whether these executives think that the training given to them is important and
do they want it to be given to them. The result shown in figure 1 is that total 53% of
em ployees strongly agree and 33% employees agree. And 4% are neutral And 8%
employees are disagree. And 2% of employees are strongly disagree They believe
that they don't need training. And but training is important because it gives them the
knowledge about the plans, which they have to sell, and it also helps them in
Connecting to their company. It is also important because it helps them insolving
their queries, which they have about the documentation as the same is covered
during these training sessions.
Also it will help them in understanding the importance of team work as special
training is given to make them understand the importance of team working.
3.5 Strongly agree
3.6 Agree
3.7 Neutral
3.8 Disagree
3.9 Strongly disagree

A Consultation of the employees during target setting

This question is asked to know if they are consulted while setting their targets or
are they just given the target, which they have to achieve. 10% employees strongly
agree and15% employees are agree and 8% are neutral and 47% employees
disagree with this aspect (Figure2) and 20% are strongly disagree. They should be
concerned while setting the targets they should be asked if they will be able to
achieve the given target because at the end of the day they have to meet those
targets.
1-Strongly agree
2-Agree
3-Neutral
4-Disagree
5-Strongly disagree

B) Satisfaction with compensation level :

The purpose of asking this question is to know that the executives are satisfied with the
compensation they are being given. So that we can come know that if there is any need to
make any changes in their compensation pattern. As being shown in the figure only 8%
executives are strongly satisfied with the compensation being given to them and 15% are only
satisfied. 10% executives neither agree nor disagree with their compensation and 27% of the
executives are dissatisfied and 40% are strongly dissatisfied with the compensation given to
them (Figure3). They quite less in accordance to work do the compensation being given to
these executives. Their pay must be increased so that they also feel worth enough and be
come motivated to perform good job.
1- Strongly agree
2- Agree
3- Neutral
4- Disagree
5- Strongly disagree

C. Rewards and Recognition given to the executives

The reason why this question is asked is to know if these executives are given
reward and recognition on the spot for the good work done to motivate them.
According to the figure16% executives strongly agreed and 25% executives are
agree that they are given reward and recognition on the spot for the good work
done by them, 2% executives neither agree nor disagree and 34% executives
disagreed and 23% are strongly disagree that they are given reward and
recognition the spot (Figure4). There ward and recognition should be given to
them on the spot for the good job they do as it boost them and will help them to
improve their performance.
1- Strongly agree
2- Agree
3- Neutral
4- Disagree
5- Strongly disagree

C) Working Conditions The motive of asking this question is to know about the
atmosphere of the companies they are working in. If it is friendly and motivating and good to
work. 35% of the executives strongly agree that the atmosphere of their companies is
friendly and motivating, 25% are agree and 30% neither agree nor disagree and 6% are
those who are dissatisfied and 4% are strongly dissatisfied with the atmosphere of their
companies (Figure5). They do not find the atmosphere of their companies friendly and
motivating. That the atmosphere of their companies should be friendly and motivating
because they face so much of competition in the field so the friendly and motivating
atmosphere of the companies can help them to perform well in their field.
 1- Strongly agree
2- Agree
3- Neutral
4- Disagree
5- Strongly disagree

D) Job Capability The reason or asking this question is to know if the job
specification is done properly or not. Total of 55% executives strongly agree that
yes their job is according to their knowledge and qualification and 30% are agree.
0% is neutral and 7% executives disagreed and only 8% executives are strongly
disagree to the statement (Figure6). This clearly indicates that the responsibility of
doing the job entirely matches the capability of the job holder.
 1- Strongly agree
2- Agree
3- Neutral
4- Disagree
5- Strongly disagree

E) Ability to meet targets

The motive behind asking this question was to know if the targets given to the
employees are achieved by them in time or not and 60% executives strongly
agreed and 30% are agreed. 0% is neutral. And 6% are disagreeing and only 5%
are strongly disagreeing to the above said statement (Figure7).
 1- Strongly agree
2- Agree
3- Neutral
4- Disagree
6- Strongly disagree

H) Plans to start Their Own business Only 5% executives are strongly

agreed and 5% are agreed to start their own business and 10% executives are neutral.
And 20% employees are disagreed and 60% are strongly disagreeing to the above
statement (Figur e8). This clearly indicates that employees that are at the executive
level still want to continue with their present job but might think of becoming
entrepreneurs sometime in future.
 1- Strongly agree
2- Agree
3- Neutral
4- Disagree
5- Strongly disagree

F) Satisfaction with the initiatives taken by HR

The executives were asked if they are satisfied with the HR Initiatives of the Company 30%
executives were found strongly satisfied and 23% were found satisfied. And 4% is neutral.
18% are dissatisfied and 25% are strongly dissatisfied. The ratio is almost the same of the
executives who agree and those who disagree (Figure9). The reason behind this might be
HR Resourcing policy Promotion policy for Officers Transfer policy for officers Promotion
policies or over seas selection policy.
1- Strongly agree
2- Agree
3- Neutral
4- Disagree
5- Strongly disagree

J) Participation in Management
80% executives strongly agreed and 11% are agreed that their suggestions were
considered and a regiven chance in decision – making and 2% is neutral .and 5% are
disagreed and 2% are strongly disagreed to the above statement (Figure10).
This shows that the companies treat employee's participation in management as
an important task and an effective measure to increase the productivity and thus
performance.
 1- Strongly agree
2- Agree
3- Neutral
4- Disagree
5- Strongly disagree

FINDINGS: Considering the above done analysis it was found that executives
were not fully satisfied with all the aspects in their organizations. There have
been retention strategies taken by all the companies. Companies are following
the following strategies:
4 Employee Communication Forum (ECP): A meeting is organized in
which the employee directly communicates to employers. They
discuss their problems and also give their suggestions in this forum.
5 Incentives: Incentives are given to the executives according to the
performance of the executives.

6 Goodies Program: Those executives who perform well are given reward on
the spot. This motivates the executives to perform better.
7 Appreciation Card Program: Those executives who perform well are given an
appreciation card on their desk.
8 Birthday's days & marriage Anniversary Program: On the birthdays and the
anniversary of the employee the company sends a cake and flowers to the employee's
home.
 9 Monthly birthday bash: At the end of every month a party is organized in
which all those executives who have their birthdays in that month are
celebrated.

10 Bonus: Every year bonus should be given to the executives based on

their performance. Those who perform better should get a higher bonus.

11 ESOP (Employeestockoptionscheme): The Company should give the

executives a choice in which they can invest their money.

12 Training- by IIMs & IITs: Training sessions should be organized by IIMs and
IITs in which the executives should be taught about the new theories of
management and shouldal so be given knowledge about the new inventions.

13 Half yearly Primes: Those executives who perform well are given the
increment in the middle of the year.

14 F and u Friday: In this the executives are given a half day on Friday and after
that they are given some time to party together. In which they eat and dance
together. It is a type of relaxation for the executives after a hectic week.

15 Gini: A personals hopper and an assistant specialized in giving you the gift of time.

16 Mitr: in this support advice and information are given free and confidential on a
phonecall.

17 Trainings: Time to time trainings are given the executives to update their knowledge.

18 Incentives: Incentives are given to the executives according to their performance. It boosts
the executives to perform better.

19 Appreciation on the spot: Those who perform well are given appreciation on the spot
in the form of a reward. It increases the moral of the employee
 CHAPTER-5
CONCLUSION AND SUGGETION
5. CONCLUSION AND SUGGETION:
On the basis of the research done it was found that the company A has planned
retention policies and interventions but they is not properly executed in few
aspects. The company can use the various other techniques such as management
development programmes, more rewards and recognition, mid term appraisals,
informal get together, tour programmes and weekend offs, appreciating and
recognizing a well done job, personalized well done and thank- you cards from
supervisors, congratulations e – cards or cards sent to spouses /families, voice
mails or messages from top management, periodic days off or good performance
so as to The employees are not completely aware of these policies of the company
and so feel offended and think that the company is not taking care of them and that
leads to the higher level of attrition. There is a communication gap between
Employer retain their employ and the Employee, which should
Be removed.
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 and
C: Who will stay with their current employer in the next 3 years.
Category A: These are the employees who lack good communication with their employers.
CategoryC: These are the employees who have proper, well- structured communication
with their employers. Therefore, the company should provide them sample of scope and
should be able to increase the satisfaction level of the employees to retain them.
SOLUTION FOR THE PROBLEM:

Have a survey among employees to find the reasons for attrition. If possible, have
exit interviews to know the reasons for resignations. If a key employee resigns, it
should be taken upon a priority basis and the senior management should meet the
employee to discuss his reasons for leaving and evaluate whether his issues bear
merit and whether they can be resolved. Steps can be taken to avoid similar reasons
from occurring in the case of others, in similar positions.

What can be done?

Though, it is impossible to scrap problems totally, there are certain ways by which
BPO management can tackle attrition.
Since the every organization is unique, these companies need to develop innovative
ways to tackle their problem. Human Resources department of companies must
address these issues, and along with the management need to evolve strategies to
retain employees at all levels.

At the time of Recruitment

• Select the right people through competency screening.
• Use psychometric tests to get people who can work at night and handle the monotony.
• Offer an attractive, competitive, benefits package.
Make clear of performance enhanced incentives and other benefits.
keep these promises, later.
• BPO’s can set up offices in smaller towns, or recruit from there, where opportunities are
few.
At the office
An employee’s work must be communicat d to him clearly and thoroughly. The
details of the job, its importance, the way it should be done, maximum time that
can be allotted to complete it etc. must be made clear. If there are changes to any
of these, let the employee know at the earliest
• Give the employees necessary tools, time and training. The
employee must have the tools, time and training necessary to do their job
well or they will move to an employer who provides them.
• Have a person to talk to each employee at regular intervals. Listen and solve
employee complaints and problems, as much as possible. Fairness and impartial
treatment by seniors is important. Help employees manage stress, both at work
and if possible, off work too. Give them special concessions, when in need. Treat
the employees well & provide dignity of job.
• The quality of the super vision an employee receives is critical to employee
retention. Frequent employee complaints a rise on this issue.
• Provide the employees a stress free work environment. People want
to enjoy their work. Make work and work place cheerful and fun-filled
as possible.
• Make sure that employees know that their work is important for the organization.
Feeling valued by their employe riskey to high employe emotivation and morale.
Recognize their strengths and help them to improve those they lack.
• Employees must feel rewarded, recognized and appreciated. Giving periodical
raise in salary or position helps to retain staff.
• Offer excellent career growth prospects. Encourage & groom employees to take
up higher positions / openings.
If they don’t get opportunity for growth with in the organization, they will look elsewhere for
it.
• Work- life balance in itiatives are important. Innovative and practical Employee
policies pertaining to flexible working hours and schemes, granting compassionate
and urgency leave, providing health care for sheld, family and dependants, etc. are
important for most people. Work- life balance policies would have a positive impact
on retaining skilled employees, as well as on attracting high-caliber recruits.
 • Implement competency models, which are well integrated, with HR processes like
selection & recruitments, training, performance appraisal and potential appraisal.

Nightshifts

1. Have doctors to advice them about health problem and the ways and
means to deal with them. Provide dietary advice:-Dos and don’ts. Help
them to maintain their health.
2. Organize programmers where people from other professions, who have nightshifts
talk to BPO employees about their experiences. Other organizations like Army,
Railways, Hospitals and various government services etc. also have nightshifts.
3. Organize training, counseling and development programmers for employees. Tell
them that their work is important. Encourage the best performers to share their
experiences with others and guide others. The emphasisis to create the desire
to learn, enjoy and be passionate about the work they do.
4. If needed, provide special lights in the office /workplace to ensure that their
bodies get sufficient vitamin Done distinct disadvantage of nightshifts is the
sense of disorientation with friends and family members. Concentrate on this
problem and develop innovative solutions and ways to deal with it Additional
holidays for work on National holidays and festivals, holidays for family functions
etc. can go along way.
 10 ways to retain your employee:-

Retaining key personnel is critical to longterm success of an organization. A

Retention Strategy has become essential if your organization is to be productive
over time and can become an important part of your hiring strategy by attracting
the best candidates who know of your track record for caring for employees. Infact,
some companies do not have to recruit because they receive so many qualified
unsolicited submissions due to their history of excellence in employee retention.

1. Treat your employees like you treat your most valuable clients It is
cheaper to keep your good employees than it is to hire and train new
ones. Your top 20- 25% should be courted as you would court and then
service your top customers.

2. Get your employees to ”fall in love” with your organization Communicate your
vision in a compelling way. Show every one the role they have to contribute to
this vision. Create opportunities for people to connect with each other for
support and to improve communication in work teams.
3. Capture the hearts of your work force with compelling vision/ Balance/ celebration- Open
Communication: Internal listening is apriority, multiple lines of communication (various
channels.) This is essential for managing change In a positive way with less about age,
anger, resistance, and fear. Create partnerships: Squash status barriers/ Open the
books/ pay for performance (nottitles). Share the “bad” times the ”good” time.
Drive Learning: “Guarantee Employability” ,Encourage Life Learning (Train Out
side of job description). Loyalty comes from trusting your employees to develop
their skills for the good of the company and for their needs for personal growth
and satisfaction.

4. Emancipate Action: Free dom to Fail, reduce bure aucracy, and challenge the
“Statusquo. ”Breathe life into your organization. Do not let your employees
stagnate.
5. Strong retention strategies become strong recruiting advantages.
6. Retention is much more effective when you put the right person in to the Right
job. Know the job Know the employee and their Motivations. Half of the fortune
500 companies are now using assessments to more fully understand each job
and the soft skills that are required for top production with in Their specific
company culture. These bench marked skills are then compared against
qualified applicants to help determine who will be successful in the position and
fit well with in their company’s culture. These assessment are also used as a
powerful professional development tool to enhance the training of continuous
life- long learning (which is another powerful retention strategy) advanced Fibre
communication is beginning to use this assessment process in hiring

7. Money is important but it is not the only reason people stay with an organization

If your compensation plan is in the top 20 - 30% of your industry, then money will often not be the
reason why people leave.

6. Employee committees to help develop retention strategies are a very effective strategy.
Get their in put! Ask, what do people like about working here? What would
you like changed to make your company a better place to work?
Some companies, such as Advance Fiber Communication (AFC), have
recognized that the special engineers and technical experts that are the corner
stones of their business require special attention. Victoria Perrault, VP of
Administrative Services for AFC, says that her company has identified the top 25%
of their staff and caters to these special people by meeting their financial
requirements and looking for the best package of benefits that these people will find
most positives incentives to stay.They even have employee committees that work
as "focus groups " to determine why people stay at AFC and what they might want
to see changed to make AF Can even better place to work.
7. Leadership must be deeply invested in retention. Management must be
skill ful communicating company policies in away that creates “buy- in “from
their staff and be open to Employee input. Help create “ownership” in your
employees the companies with the best retention percentage are the same
companies that are actively committed to retention.They know that is costs less to
keep good people than to continuously have to replace unsatisfied employees
and managers.

8. Recognition ,In various forms, is a powerful retention strategy.

It does not have to cost alot. USDept. Of Labor- 46% of
people leave their jobs because they feel unappreciated.

9. Remember, the “Fun Factor” is very important to many employees. GregPeters,

Past President and CEO of Mahi Networks in Petaluma, is one of many
executives who reported that retention is often related to interpersonal
connections and amount of FUN in work teams. The FUN Factoris part of the
generation of workers that use activities as stress management in highly charged
production environments where long hours are required. Greg has encouraged
Ping- Pong tournaments and basketball leagues for interpersonal interaction,
fun, and stress management. Though note very one can participate in physical
activities, this sets thet one in a culture based on competition, health /well -
being,and interactions that are inclusive beyond work.

10. Know the trends in benefit packages.

Do your best to offer the ones your employees need? Consider offering the best of the
rest.
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WEBLIOGRAPHY:
http://www.employeeretentionstrategies
.c om/ http://humanresources.about.
http://www.bpoindia.org
http://retention.naukrihub.com
http://www.expresshospitality.com
http://www.itsinc.net/retentionresearch.