A STUDY ON EFFECTIVENESS OF EMPLOYEE RETENTION

STRATEGIES
Submitted in partial fulfillment of the requirements for the award of
MASTER OF BUSINESS ADMINISTRATION
by

THARANI H
(40410182)

SCHOOL OF MANAGEMENT STUDIES

SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with Grade “A” by NAAC I 12B Status by UGC I Approved by AICTE
JEPPIAAR NAGAR, RAJIV GANDHI SALAI, CHENNAI - 600 119

APRIL 2022

i
 SCHOOL OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

This is to certify that this Project Report is the Bonafede work of THARANI
H (40410182) who carried out the project entitled “A study on effectiveness
of employee retention strategies” under my supervision from December
2021 to May 2022.

Dr. RANI.J

INTERNAL GUIDE

Dr. BHUVANESWARI G

Dean – SCHOOL OF BUSINESS ADMINISTRATION

Submitted for Viva voce Examination held on

Internal Examiner External Examiner

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 ACKNOWLEDGEMENT

I am pleased to acknowledge my sincere thanks to Board of Management

of SATHYABAMA for their kind encouragement in doing this project and for
completing it successfully. I am grateful to them.

I convey my thanks to DR. BHUVANESHWARI G, Dean, School of Business

Administration and DR. PALANI A, Head, School of business administration
for providing me necessary support and details at the right time during
the progressive reviews.

I would like to express my sincere and deep sense of gratitude to my

project Guide DR. RANI J, School of business administration for her
valuable guidance, suggestions and constant encouragement paved way
for the successful completion of my project work.

I would like to express my sincere and deep sense of gratitude to my Respondents,

for their valuable time for the successful completion of my project work.

I wish to express my thanks to all Teaching and Non-teaching staff

members of the Department of Business Administration who were helpful
in many ways for the completion of the project.

(THARANI.H)

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 TABLE OF CONTENTS

CHAPTER TITLE PAGE NO.

NO.
ABSTRACT i
LIST OF TABLES iv
LIST OF CHARTS v
1 INTRODUCTION 1
1.1. Definition 1
1.2. Industry profile 4
2 REVIEW OF LITERATURE 10
2.1. Literature review 10
3 RESEARCH METHODOLOGY 14
3.1. Research 14
3.2. Need for the study 14
3.3. Objectives 14
3.4. Scope of the study 15
3.5. Research design 15
3.6. Statistical tools 16
3.7. Source of data 16
3.8. Hypothesis testing 17
4 DATA ANALYSIS AND 18
INTERPRPETATION
4.1. Percentage analysis 18
4.2. Statistical analysis 36
5 CONCLUSION 43
5.1. Findings 43
5.2. Suggestions 45
5.3. Conclusion 47
REFERENCE 48

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 ABSTRACT
Employee Retention is a challenging concern of the organization. This
study stressed on Employee Retention strategies. Employees are the
assets of the organization. To retain skilful and committed employees in
the organization, management should take care of employee satisfaction.
Find out the reasons of employee turnover and overcome this. The
purpose of this study is to prove how employee retention is essential in
this day and age, and if the organizations are not awake to the situation
and immediate actions are not taken to that effect, what repercussions lay
ahead and how they would affect the organization and the industry.
Research says that most of the employees leave an organization out of
frustration and constant friction with their superiors or other team
members. In some cases, low salary, lack of growth prospects and
motivation compel an employee to look for a change. The management
must try its level best to retain those employees who are really important
for the system and are known to be effective contributor.

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 LIST OF TABLES
TABLE NO. PARTICULARS PAGE NO
4.1.1. Age 18
4.1.2. Gender 19
4.1.3. Designation 20
4.1.4. Employee retention helps organization 21
4.1.5. How comfortable working in team 22
4.1.6. Experience 23
4.1.7. Key retention strategies 25
4.1.8 Three R’s 26
4.1.9. Support 27
4.1.10 Challenging 28
4.1.11 Flexibility 29
4.1.12 Open communication 30
4.1.13 Bond process 32
4.1.14 Employee resignation 33
4.1.15 Employee feedback 34

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 LIST OF CHARTS

CHART NO PARTICULARS PAGE NO

4.1.1. Age 18
4.1.2. Gender 19
4.1.3. Designation 20
4.1.4. Employee retention 21
4.1.5. How comfortable working 22
4.1.6. Experience in their organization 23
4.1.7. Retention techniques well organized 24
4.1.8. Key retention strategies 25
4.1.9. Retention affects turnover 26
4.1.10 Perception 27
4.1.11 Support 28
4.1.12 Challenging 29
4.1.13 Flexibility 30
4.1.14 Open communication 31
4.1.15. Top talents recognized 32
4.1.16 Bond process 33
4.1.17 Employee’s resignation 34
4.1.18 Losing employees due to policy 35
4.1.19 Employee satisfaction 36
4.1.20 Employee feedback 37

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 CHAPTER-1

INTRODUCTION
INTRODUCTION
One of the greatest challenges in today’s business world is to stay up to
speed in a time of technological growth. Fundamental changes are taking
place in the work force and the work place that promise to radically alter
the way companies relate to their employees. As we hurl ahead at an
increasing pace every field, employee retention becomes a concern for all
companies at the present strong job market. There are a great number of
employment opportunities for talented professionals. It has been found
out that, higher the skills of the employees, the greater the demand for
their services. Hiring and retaining good employees have become the
chief concerns of nearly every company in every industry. Companies that
decisions to proactively fulfil those needs will become the dominant
players in their respective markets. Hence employee retention is a very
important issue that organization must tackle.

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 can also be considered
as a business management term referring to efforts by employers to
retain current employees in their workforce.

1.1. DEFITION OF RETENTION STRATEGIES:

A retention strategy is a plan that organizations create and use to reduce
employee turnover, prevent attrition, increase retention, and foster
employee engagement. While some turnover is inevitable, building a
retention strategy to prevent as much voluntary turnover as possible can
save an organization a lot of time and money. After all, it’s much easier
and much less expensive to train and develop your current employees
than it is to continually hire new people. Employee retention is a
phenomenon where employees choose to stay on with their current
company and don’t actively seek other job prospects. The opposite of

1
retention is turnover, where employees leave the company for a variety of
reasons. Retention is defined as the process by which a company ensures
that its employees don’t quit their jobs. Every company and industry have
a varying retention rate, which indicates the percentage of employees
who remained with the organization during a fixed period.

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1.1.1 EXTERNAL DRIVERS OF THE RETENTION CRISIS:

Major changes have occurred in organizations, both internally and

externally, making this issue more critical today than in previous year.
Unfortunately, these changes will only worsen the crisis in the future.

a) Economic growth
b) Slower growth of job seekers

1.1.2. INTERNAL DRIVERS OF THE RETENTION CRISIS:

Internal changes in organizations operate in correct with the external

influences to drive excessive turnover. Internal issues include structural
changes within the organization and changes in employees’ attitude about
work and their employees.

a) Lack of company loyalty

b) Desire for challenging and useful work
c) Need for autonomy, flexibility and independence.
d) Need for performance-based rewards
e) Need for recognition for participations, accomplishments, and contributions
f) Desire for different kind of benefits
g) Need to learn new skills
h) Career growth in all directions
i) Desire to be on the leading edge
j) Desire for competitive compensation
k) Need for a caring, supportive environment
l) Need for work/life balance

Employees are an organization’s business. And those who manage

business both large and small face stiffer competition domestically and
abroad. In fact, retaining good workers is the tipping point between
success and failure for many organizations. According to Gregory P. Smith,
author of “Here today, here tomorrow: Transforming your workforce from
High Turnover to High Retention”, the following attributes are essential to
a high-retention organization.

 Clearly defined organizational direction and purpose

3
 Caring management
 Flexibility in benefits

4
  Open, straight forward communication
 Energetic and enthusiastic work environment
 Effective performance appraisals
 Rewards and recognition
 Training and development
 Paying competitive wages
 Respecting employees
 Retention bonuses

Every organization needs to work on the retention strategies by focusing

mainly on the employees and his contribution to the organization.

1.1.3. RECRUITMENT AS A RETENTION STRATEGY:

Retention begins long before an employee’s first day on the job. In the
twenty-first country employment world, organization must look at the
foundations of retention through the eyes of potential employees. They
are the customers for their jobs. Job descriptions, recruitment, selection,
and orientation are the foundations of retention. If a good foundation is
not prepared for the employees, organization cannot expect them to stay.
Employees will no longer endure what they do not like in their
employment situation. They have the power in the knowledge of their
abilities and confidence in their value in the marketplace. With greater
loyalty to their career and their skills than to their employer, they move
on.

1.1.4. RETHINKING RETENTION MODEL

In most organizations, operations management drives sales, service, quality,

and safety, with various staff departments providing tracking, training,
and other services. And the responsibility of handling employee’s
retention is usually taken up only by the HR. with this setup, organizations
fail to tackle the problem of employee turnover. Keeping this in mind,
Richard P. Finnegan came up with the ‘Rethinking retention model’

5
The core ingredient of the Rethinking Retention model is the shared
responsibility of operations management and staff support for increasing
employee’s retention.

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:
1.2. INDUSTRY PROFILE
Managing for employee retention involves strategic actions to keep
employees motivated and focused so they elect to remain employed and
fully productive for the benefit of the organization. A comprehensive
employee retention program can play a vital role in both attracting and
retaining key employees, as well as in reducing turnover and its related
costs. All of these contribute to an organization's productivity and overall
business performance. It is more efficient to retain a quality employee
than to recruit, train and orient a replacement employee of the same
quality. Fairness and transparency are fundamental yet powerful concepts
that can make a lasting impression on employees. According to SHRM's
Employee Job Satisfaction and Engagement: The Doors of Opportunity are
Open research report, employees identified these five factors as the
leading contributors to job satisfaction:

1. Respectful treatment of all employees at all levels.

2. Compensation/pay.
3. Trust between employees and senior management.
4. Job security.
5. Opportunities to use their skills and abilities at work.

Employee job satisfaction and engagement factors are key ingredients of

employee retention programs. The importance of addressing these factors

7
is obvious, but actually doing so takes time and these tasks are often left
for another day. However, the payoff of focusing on employee retention
in terms of increased performance,

8
productivity, employee morale and quality of work, plus a reduction in
both turnover and employee-related problems is well worth the time and
financial investment. The bottom line is that by managing for employee
retention, organizations will retain talented and motivated employees who
truly want to be a part of the company and who are focused on
contributing to the organization's overall success.

1.2.1 ADVANTAGES OF RETENTION STRATEGIES

Employee retention is not just about minimizing damage to the

organization when employees leave. It also offers opportunities to improve
company performance across a number of key metrics. The following are
10 ways effective employee retention strategies and processes benefit
organizations.

Cost Reduction

Large U.S. employers spend upwards of $1 trillion on finding and

recruiting replacement workers annually. Costs include advertising,
interviewing and screening. Onboarding expenses, like training and
management oversight, also add up. Other issues include lost
productivity, lower engagement, customer service problems and company
culture impact, all of which compounds the cost of turnover.

Morale Improvement

A revolving door environment can dampen employee morale. Aside from

lost connections, employees who remain may have to take on heavier
workloads or responsibilities. As a result, their motivation and satisfaction
can also nosedive. Just as concerning is the contagious nature of turnover.
Employees may decide to leave because they notice others are job
hunting, talking about quitting or actually leaving the company.

Organizations with successful employee retention programs can lift

employee morale, enable greater connectedness and engagement, and
create contagions of positive emotions in the workplace.

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Experienced Employees

One crippling cost of high turnover is the loss of institutional knowledge,

skills and relationships within the organization and with customers and
partners that disappear when an employee exits. The organization also
loses the potential value the employee could have delivered, also known
as the opportunity cost. When senior employees depart, the loss can
impact succession planning as well. These employees particularly top
performers or those with in-demand skills are often at risk for turnover
even in times of high unemployment. Organizations that focus on
retaining more senior or experienced employees see significant returns as
these professionals are apt to solve complex issues on their own, which
benefits the organization.

Recruitment and Training Efficiency

Replacing an employee carries significant costs. After an organization

finds qualified employees and successfully recruits and onboards them,
they have to be trained. Should a new hire leave, all that money goes
down the drain. By focusing on employee retention, recruiting costs can
be dramatically reduced. Another consideration is to recruit from within
the organization. The cost to train and reskill an employee from within can
save an organization tens of thousands of dollars per person.

Increased Productivity

Persistent turnover causes a host of issues for employers. The most

immediate impact is loss of productivity. On average, it can take a new
hire one to two years to reach the productivity of an existing employee. In
addition, new hires need time to build relationships with co-workers and
customers. An understaffed environment also causes problems of its own
among them, employee overtime and burnout, lower work quality and
delays.

Effective employee retention can save an organization from productivity

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losses. High- retention workplaces tend to employ more engaged workers
who, in turn, get more done. Engaged employees are more likely to
improve customer relationships, and teams that have had time to
coalesce also tend to be more productive.

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Better Customer Experience

Customer experience is a customer’s perception or opinion about their

interactions with a business, from their first interaction to post-sale
support. These interactions depend on employees whose own experiences
can impact how they engage with customers. This is where turnover can
take a toll. For example, new employees might take longer to get things
done, may be less adept at problem-solving and are more prone to
customer service mistakes all of which can damage the customer
experience. In turn, customers might share their negative experiences,
putting the organization’s reputation at risk. On the other hand, satisfied
employees typically have higher morale and capabilities that shine
through when working with customers.

1.2.2. DISADVANTAGES OF RETENTION STRATEGIES

In the current scenario, a major challenge for an organization is to retain

its valuable and talented employees. The management can control the
problem of employees quitting the organization within no time to a great
extent but can’t put a complete full stop to it. There are several
challenges to it.

Let us understand the challenges to employee retention:

 Monetary dissatisfaction is one of the major reasons for an employee to

look for a change. Every organization has a salary budget for every
employee which can be raised to some extent but not beyond a
certain limit. Retention becomes a problem when an employee
quotes an exceptionally high figure beyond the budget of the
organization and is just not willing to compromise.

The organization needs to take care of the interests of the other

employees as well and can’t afford to make them angry. The
salaries of the individuals working at the same level should be more
or less similar to avoid major disputes amongst employees.

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A high potential employee is always the centre of attention at every
workplace but one should not take any undue advantage. One
should understand the limitation of the management and quote
something which matches the budget of the organization. An
individual should not be adamant on a particular figure,

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 otherwise it becomes difficult for the organization to retain him.
Remember there is a room for negotiation everywhere.

 In the current scenario, where there is no dearth of opportunities,

stopping people to look for a change is a big challenge. Every
organization tries its level best to hire employees from the
competitors and thus provide lucrative opportunities to attract
them. Employees become greedy for money and position and thus
look forward to changing the present job and join the competitors.
No amount of counselling helps in such cases and retaining
employees becomes a nightmare.
 Individuals speak all kind of lies during interviews to get a job. They
might not be proficient in branding but would simply say a yes to
impress the recruiter and grab the job. It is only later do people
realize that there has been a mismatch and thus look for a change.
Problems arise whenever a right person is into a wrong profile. An
individual loses interest in work whenever he does something out of
compulsion. The human resource department should be very careful
while recruiting new employees. It is really important to get the
reference check done for better reliability and avoid confusions
later.
 Some individuals have a tendency to get bored in a short span of time.
They might find a job really interesting in the beginning but soon
find it monotonous and look for a change. The management finds it
difficult to convince the employees in such cases.

Individuals must also understand that every organization has some

or the other problem and adjustment is required everywhere, so
why not in the present organization? It becomes really difficult for
the HR Department to find out what exactly is going on in the minds
of the individual. An individual should voice his opinions clearly to
make things easier for the management.

 Unrealistic expectations from the job also lead to employees looking for
a change. There is actually no solution to unrealistic expectations.
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An individual must be mature enough to understand that one can’t
get all the comforts at the workplace just like his home. Individuals
from different backgrounds come together in an organization and
minor misunderstandings might arise but one should not make an
issue out of it.

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An individual must not look for a change due to small issues. One
needs time to make his presence feel at the organization and must
try his level best to stick to it for a good amount of time and ignore
petty issues.

 It promotes groupism amongst old employees which creates an

insecure environment for
new employees.
 Improper mixing of staff affects productivity and ensures poor
quality of work.
 Excessive liberty to staff just to maintain work flow affects quantity
and quality both.
 Flexible work timings rarely justify the work delivered.
 Retaining non-deliveringstaff kills the productivityand creativity
of knowledgeable
employees.
 Retaining spoon-fed and complaining employees add to the cost
of the organization.
 Affluent employees who do not require a job, rarely add value to
the employee strength.

INTRODUCTION

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 CHAPTER-2
REVIEW OF LITERATURE

2.1. REVIEW OF LITERATURE:

Hom and Griffeth (1995) described in a study that the process of
encouraging employees to stay for a long period or till the project
completion is termed as retention. Wysocki’s (1997) pointed out the view of
“The society of Human resource Management” that retention of employee
is the hottest topic in the current scenario. Drucker (1999) explained that
employees voluntarily quit their job is a potential retention issue. Trip.R,
while discussing turnover stated that for many organizations, Voluntary
turnover is a big challenge. Turnover may be voluntary or involuntary and
functional or dysfunctional. Voluntary turnovers refer to leaving of an
employee in an organization voluntary i.e., the employee himself decides
to leave\resign from the organization. In involuntary turnover, the
employer expels the employee i.e., the employee leaves the organization
unwillingly. It could be due to low performance, conflict or due to
employment-at-will. When a low performer leaves the organization, it is
referred as functional turnover. When a high performer leaves, it is
referred as dysfunctional turnover which incurs cost to an organization.

Terence et al., (2001) stated that there are so many reasons for an
employee to leave voluntarily. Some may be personal and some may be
influenced by organizational factors. Personal reasons such as family
situation, career growth and attractive job offers etc. Organization factors
includes lack of promotional opportunities, unfair treatment among
employees and mismatch between personal values and organizational
values, etc., Overall turnover is a great problem for both organization and
individual. Further it is clearly discussed that occurrence of shock which is
expected or unexpected leads to serious thoughts (i.e., intention) to leave.
Shocks may be positive, negative or neutral. Positive such as alternative
job offers, pregnancy etc., Negative such as leaving of friends, poor
performance appraisal etc, and neutral such as relocation of spouse,
changes in administration etc.
17
Maqsood Haider et al. (2005) undergone research in Telecom sector and
conversed that the competition to hunt and retain talents is tougher all
the time and discussed that employees effective human resource
practices show a positive and direct

18
relationship in retaining employees. Further, it is analysed that culture
and compensation have a positive impact; training and development has a
negative impact over employee retention.

Abeysekera (2007) in a study evaluated the HR practices like realistic

information about job, job analysis, work life balance and career
opportunities, supervisor support and compensation and their impact on
employees’ intentions to leave which resulted that compensation and job
analysis have positive impact on employee turnover. Holtom et al. (2008)
discussed in this study that the factors that the factors that makes the
employee for staying and leaving were different.

Hay group (2009) stated that employee engagement includes components

such as commitment and discretionary effort. Commitment refers to
employees’ attachment with an organization and the intent to continue
with Discretionary effort refers to the employees’ readiness to leave. It is
discussed that these two components must be considered seriously.

Taylor (2010) while explaining turnover stated that pull and push factors
are to be considered. Positive attraction towards alternative job
opportunity is pull factor, in which employees are searching for alternative
job opportunities even if they are happy and satisfied. In this
circumstance, it is highly essential that employer/management must
understand the real value of their employees and identify the reasons for
searching or what they are expecting in the current job and this would
help to retain the talents. The next important factor is push factors, in
which some dissatisfied circumstances are prevailing in the current
organization which makes the employee to leave for refining work like.
There are several attributes for pull and push factors that need to be
identified and focussed more.

Cardy and Lengnick-Hall (2011) conducted a study on retention of

employees, which emphasizes more on customer-oriented approach.
Employee equity model is the method followed in this research. This study
explores more regarding employees’ value rather than external factors
which have effects on the employees whether top stay or to leave. In

19
other words, this study was concentred towards internal factors which
makes the employees to stay or leave.

Chitra and Latha (2011) conducted research on employee retention in IT

sector. The main aim of the research is to identify why employees
are migrating one from

20
companies to another i.e., reasons for migration and to analyse the
retention benefits. Discriminate analysis tools were used and resulted that
the sector has to focus on compensation, job satisfaction and job security
as these were some of the important tools used for retention of
employees in organizations.

Tripathi et al. (2011) attempted to analyse the problems faced by the

professional institutions i.e., private and government institutions and the
factors to overcome the difficulties faced by them. Analysis with respect
to private and government institutions for Level of job satisfactions,
tenure of working, working environment, working hours, job switches and
its reasons, faculty loyalty and tenure of service and retention tools were
suggested in this study. Pay dissatisfaction, lack of career growth
opportunities, uncomfortable work environment, unsecured job, Loyalty
are the factors which determine an attitude in faculties concerning their
institutions. The study cited reasons for faculties leaving in existing
employment and what made them to stay in the current employment.

Sadaf Zahra et al. policies are some of the key factors in turnover intention
and employees consider these a lot when compared to recognition and
rewards. It is concluded that less flexibility and heavy work load affects
family like. Apart from these motivation, competitive pay, supervisory
support, leadership, programs for career development would reduce
intention to leave.

Chartered Institute of Personnel and Development report i.e., CIPD (2015) had
identified the factors for employee leaving as push and pull factors.

Gary Dessler and Biju Varkkey, while discussing a comprehensive approach

to retaining employees, stated that after identifying problems of retention,
action can be taken to boost employee retention by way of pay rise, hire
smart, discuss carers, provide direction, offer flexibility, attractive
employee welfare measures, HR practices for high performance, binding
contracts etc.

Priyanka and Dubey S K (2016) in their study performed exploratory factor

analysis using principal component technique. Low salary no career
21
growth opportunity lack of support from the peer, supervisors and family
members, little learning opportunities, poor working environment i.e., no
workplace safety, communication and insecurity in job.

22
Kossivi and Kalgora (2016) attempted to study the various factors for
retention from the findings of various previous research studies and
brought some factors such as opportunity for development, social support
etc., In their study, supervision and leadership are explored more and the
factors like organizational culture, autonomy and training and
development are less explored. Further the scope for the research also
stated the conclusion that based on category of employees can be done in
future.

Vijayalakshmi V (2012) attempted to analyse the influencing factors of

employee retention in automobile industry to find out India Objectives of
the study i.e., to study the employee retention practices in automobile
industry. To find out employees’ overall satisfaction towards work
environment culture. To examine the training and development
opportunities offered and its effectiveness. To analyse compensation
factors, Tools used in this study are chi-square analysis, regression
analysis, Mann- Whitney test, Kruskal Wallis test and analysis of variance.
This study discussed the retention management in global perspective as
‘It includes salary which is competitive, balancing work-life between
personal and professional life, offering training, determining the
performance of the employees through conducting semi-annual reviews,
conducting events, i.e., celebrations, providing appropriate rewards and
recognitions with the view to motivate employees for better performance.
These are all the factors considered both by the employer as well as the
employee globally. Apart from these, some of the measures are advised
top be adopted by the firms. Firstly, assessment and reward of managers
are to be taken care of. Secondly, it’s about conducting period interviews
focussing on retention. The linking factors behind these strategies is HR
managers and their role is very vital in retaining employees in
organizations”. Further it is discussed about the retention management in
Indian perspective as “Strategies like better working environment, good
compensation i.e., monetary and non-monetary and flexi work hours, good
superiors’ subordinate relationships, spending money on training and
development which can enhance learning environment are considered in

23
retaining employees in any companies in a current scenario. Additionally,
management support, stimulate corporate culture, employee
empowerment led to job satisfaction which in turn increase employee
retention. In Indian perspective, better communication between superior
and subordinate, and growth and training opportunities have high
preference and improvement of monetary benefits also lead to better
employee retention.

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 CHAPTER-3
RESEARCH METHODOLOGY
3.1. RESEARCH

Research is the process of systematic and in the depth study of any

particular topic, subject or area of investigation, backed by collection,
compilation, presentation and interpretation of relevant details of data.

Research is an art of scientific investigation. The advanced learner’s

dictionary of current English lays down the meaning of research as, “A
careful investigation or inequity especially through the research for the
new facts in any branch of knowledge.

3.2. NEED FOR STUDY:

Employee retention refers to the techniques employed by the

management to help the employees stay with the organization for a
longer period of time. Employee retention strategies go a long way in
motivating the employees so that they stick to the organization for the
maximum time and contribute effectively. Sincere efforts must be taken
to ensure growth and learning for the employees in their current
assignments and for them to enjoy their work.

Employees retention has become a major concern for corporates in the

current scenario. Individuals once being trained have a tendency to move
to other organizations for better prospects. Lucrative salary, comfortable
timings, better ambience, growth prospects are some of the factors which
prompt an employee to look for a change. Whenever a talented employee
expresses his willingness to move on, it is the responsibility of the
management and the human resource team to intervene immediately and
find out the exact reason leading to the decision.

3.3. OBJECTIVES OF THE STUDY:

 To identify how retention strategy reduce turnover

 To know how employees feel engaged in the organization
 To know what are the managerial role in the retention techniques
 To study the problems of the employees in the organization.
25
 3.4. SCOPE OF THE STUDY:

Hiring is not an easy process: The HR professional shortlists few individuals

from a large pool of talent, conducts preliminary interviews and eventually
forwards it to the respective line managers who further grill them to judge
whether they are fit for the organization or not. Recruiting the right
candidate is a time-consuming process

When an individual resigns from his present organization, it is more likely that he
would join the competitors: In such cases, employees tend to take all the
strategies, policies from the current organization to the new one.
Individuals take all the important data, information and statistics to their
new organization and in some cases even leak the secrets of the previous
organization. To avoid such cases, it is essential that the new join is made
to sign a document which stops him from passing on any information even
if he leaves the organization. Strict policy should be made which prevents
the employees to join the competitors. This is an effective way to retain
the employees.

3.5. RESEARCH DESIGN

A “research design is a specification of methods and procedures for acquiring

the information needed to structure or to solve problems”. It is the overall
operation pattern or frame work of the project that stipulates what
information is to be collected, from which sources, and by what
procedures.

The arrangement of conditions suitable for collection and analysis of data

varies depending upon the type of research study the type of research
can be represented of several types.

3.5.1. ANALYTICAL RESEARCH:

The research has to use facts or information already available, and analyse
this to make a critical evaluation of the material is known as Analytical
research.

3.5.2. DESCRIPTIVE RESEARCH:

26
Descriptive research is designed to describe something, such as
demographical characteristics of consumers who use the products. It
deals with determining frequency with which something occurs or how two
variables vary together. This study is also guided by and initial
hypothesis.

27
3.5.3. SAMPLING TECHNIQUE:

Convenience sample is used in this study. Convenience sampling is

defined as a method adopted by researchers where they collect market
research data from a conveniently available pool of respondents. It is the
market research data from a technique as it’s incredibly prompt, and
uncomplicated, economical.

3.6. STATISTICAL TOOLS:

The statistical tools (SPSS) used to find hypothesis testing through

1. Chi-square
2. ANOVA
3. Paired t-test

3.7. SOURCE OF DATA:

Primary data: The primary data was collected by means of survey.

Questionaries were prepared and the responses were collected from HRs
of the organizations. The questionnaire contains 23 questions with
demographic and important five variables.

Secondary data: The secondary data was collected by referring articles,

journals, and keen study on research papers etc.

3.7.1. SAMPLE SIZE:

The research was conducted on the basis of retention strategies of an

organization is 200.

3.7.2. AREA OF STUDY:

This is study covers the organizations around Chennai

3.7.3. PERIOD OF STUDY

The period of study is around 3 months

3.7.4. STRUCTURE OF QUESTIONNAIRE:

The questionnaire consists totally of 23 questions. The questionnaire is

formed using five important variables. It includes five demographic
28
questions. It includes multiple choice questions, Likert scaling questions.

29
3.8. HYPOTHESIS TESTING:

Null hypothesis:

H0: Employee designations has no relationship with their thoughts about

retention techniques helps the development of organization.

H0: Retention techniques are well organized in a company has no

relationship with those techniques affects the company’s turnover.

H0: Incentive policies may decrease losing the employee has no

relationship with rating employee satisfaction on retention strategies.

Alternative hypothesis:

H1: Employees designation has relationship with their thoughts about

retention techniques helps the development of organization.

H2: Retention techniques are well organized in a company has relationship with
those techniques affects the company’s turnover

H3: Incentive policies may decrease losing the employee has relationship
with rating employee satisfaction on retention strategies.

30
 CHAPTER- 4
DATA ANALYSIS AND INTERPRETATION
4.1. PERCENTAGE ANALYSIS

Table 4.1.1. Age wise respondents

Age No. of respondents percentage
18-25 years 69 34.3%
28-35 years 87 43.4%
36-45 years 38 19.2%
55 years and above 6 3.1
total 200 100%
Source: primary data

age

45-55 years
3% 18-25 years
36-45 years 29% 18-25 years
31%
26-35 years
36-45 years
45-55 years
26-35 years
37%

Chart 4.1.1. age wise respondents

31
INTERPRETATION:
From the table it is interpreted that 43.4% of the respondents comes
under age group 26-35 years, and 34.3% of the respondents comes under
the age group od 18-25 years and 19.2% of the respondents are of age
group 36-45 years and 4.1% of the respondents comes under above 55
years.

Table 4.1.2. gender wise respondents

Gender No. of respondents Percentage
Male 108 54%
Female 92 46%
total 200 100%
Source: primary data

gender

female

male

female male

Chart 4.1.2. gender wise respondents

32
INTERPRETATION:
From the table it is interpreted that 54% of the respondents are male and 46% of
the respondents are female.

Table 4.1.3. designation

designation No. of respondents Percentage
Hr manager 14 7%
Hr coordinator 37 18.5%
Hr analyst 71 35.5%
Hr trainee 42 21%
others 36 18%
total 200 100%
Source: primary data

designation

40%

35%

30%

25%

20%

15%

10%

5%

0%
hr manager hr coordinator hr analyst hr trainee others

Series 1 Series 2 Series 3

Chart 4.1.3. designation

33
INTERPRETATION:
From the above table it is clear that 7% of the respondents are HR
managers and 18.5% of the respondents are HR coordinators and 35.5%
of the respondents are HR analyst and 21% of the respondents are Hr
trainee and 18% of the respondents comes under other designations.

Table 4.1.4. employee retention helps the development of organization

Perception No. of respondents Percentage
All of the times 25 12.6%
Most of the time 94 47%
Sometimes 62 30.8%
Never 19 9.6%
Total 200 100%
Source: primary data

PERCEPTION
all of the
never times
10% 12%

sometimes
31%

most of the
times
47%

Chart 4.1.4. employee retention helps the development of organization

34
INTERPRETATION:
From the above table it is interpreted that 12.6% of the respondents think
the employee retention helps the development of the organization all of
the times, and 47% of the respondents told most of the times, and 30.8%
have told sometimes and 9.6% of the respondents have said never.

Table 4.1.5. how comfortable working with HR team

Comfortability No. of respondents Percentage
Strongly disagree 21 10.5%
Disagree 59 29.5%
Neutral 47 23.5%
Agree 57 28.5%
Strongly agree 16 8%
Total 200 100%
Source: primary data

comfortability

strongly agree

agree

neutral

disagree

strongly disagree

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

Chart 4.1.5. How comfortable working with the HR team

35
INTERPRETATIION:
From the above table it is interpreted that 10.5% of the respondents
strongly disagree and 29.5% of the respondents disagree and 23.5% of
the respondents are neutral and 28.5% of the respondents agree and 8%
of the respondents strongly agree

Table 4.1.6. experience in their organization

Experience No. of respondents Percentage

Less than a year 35 17.6%
1-3 years 18 36.2%
3-5 years 62 31.2%
More than 5 years 30 15.1%
Total 200 100%
Source: primary data

EXPERIEN
CE
40.00%

35.00%

30.00%

25.00%

20.00%
36.20%
31.20%
15.00%
17.60% 15.10%
10.00%

5.00%

0.00%
less than a year
Chart 4.1.6. 1-3 years
experience 3-5 years
in their more than a year
organization

36
INTERPRETATION:
From the table it is interpreted that 17.6% of the respondents worked less
than a year, and 36.2% of the respondents worked 1-3 years and 31.5% of
the respondents have an experience of 3-5 years and 15.10% of the
respondents worked for more than a year.

Chart 4.1.7. retention techniques are well organized in your company

INTERPRETATION:

From the chart it is interpreted that for this Likert scaling survey 1% of the
respondent gave scale 1, 20% of the respondents gave scale 2 and 25.5%
of the respondent gave scale 3 and 53% of the respondent scaled 4 and
10.5% of the respondent scaled 5.

37
 Table 4.1.7. key retention strategies

Strategies No. of respondents Percentage

Compensation 24 12%
Environment 69 34.5%
Growth 51 25.5%
Support 35 17.5%
All of the above 21 10.5%
Total 200 10%
Source: primary data

11% 12%

18%

34%

25%

cmpensation environment growth support all of the above

Chart 4.1.8. key retention strategies

INTERPRETATION:

From this table it is interpreted that 12% of the respondent said

compensation, and 34.5% of environment, and 25.5% of growth and
17.5% of support and 10.5% of all the above.

38
 Chart 4.1.9. retention techniques affect company’s turnover

INTERPRETATION:

From the chart it is clear that, 4% of the respondents scaled 1, 13.5% of

the respondents scaled 2, 32.5% of the respondents scaled 3 and 39.5%
of the respondents scaled 4, and 0.5% of the respondents scaled 5.

Table 4.1.8. three R’s

Perception No. of respondents Percentage

All of the time 37 18.5%
Most of the times 82 41%
Sometimes 67 33.5%
Never 14 7%
Total 200 100%
Source: primary data

39
 PERCEPTION
all the time most of the times sometimes never

7%
18%

34%

41%

Chart 4.1.10.

INTERPRETATION:

From the table it is interpreted that 7% of the respondents said never and
18% of the respondents said all of the time and 41% of the respondents
said most of the time and 34% of the respondents said never.

Table 4.1.9. support

Support No. of respondents Percentage

Strongly disagree 25 12.5%
Disagree 47 23.5%
Neutral 59 29.5%
Agree 50 25%
Strongly agree 19 9.5%
Total 150 100
Source: primary data

40
 support
35

30 29.5

25 25
23.5
20

15
12.5
10 9.5

0
agree stronglydisagree disagree agree neutral

Series 1

Chart 4.1.11 support

INTERPRETATION:

From the table it is interpreted that 9.5% of the respondents agreed and
12.5% of the respondents have strongly disagreed and 23.5% of the
respondents have disagreed and 25% of the respondents have strongly
agreed and 29.5% of the respondents are neutral

Table 4.1.10 challenging

Challenging No. of respondents Percentage

Extremely challenging 19 9.5%
Very challenging 57.2 28.6%
Moderately challenging 57.2 28.6%
Slightly challenging 48.2 24.1%
Not at all challenging 18 9%
total 200 100%
Source: primary data

41
 challenges
9%

29% 9%

24%

29%

not at all challenging extremely challenging slightly challenging

moderetely challenging very challenging

Chart 4.1.12. challenging

INTERPRETATION

From the table it is interpreted that 9.5% of the respondents said

extremely challenging and 28.6% of the respondents said very
challenging and 28.6% of the respondents said moderately challenging
and 24.1% of the respondents said slightly challenging and 9% of the
respondents said not at all challenging.

Table 4.1.11. flexibility

flexibility No. of respondents Percentage

Agree 45 22.6%
Disagree 96 48.2%
Maybe 58 29.1%
Total 200 100%
Source: primary data

42
 fllexibility
Column2 Column1 flexibility

Category 4

maybe

disagree

agree

0 10 20 30 40 50 60

Chart 4.1.13

INTERPRETATION:

From the table it is interpreted that 22.6% of the respondent agreed for
the flexibility on concentrating on top talent and 48.2% of the
respondents disagree and 29.1% of the respondent are in dilemma state.

Table 4.1.12 open communication

Open communication No. of respondents Percentage

Agree 64 32%
Disagree 92 46%
Maybe 64 32%
Total 200 100%
Source: primary data

43
 open communication

50
45
40
35
30
25
20
15
10
5
0
agree disagree maybe

Chart 4.1.14

INTERPRETATION

From the table it is interpreted that 22% of the respondents agree and
46% of the respondents disagree and 32% of the respondents said
maybe.

44
chart 4.1.15 top talent is rewarded and recognized on regular basis

45
 Table 4.1.13. bond process

Bond No. of respondents Percentage

Agree 110 55.3%
Disagree 89 44.7%
Total 200 100%
Source: primary data

bond
60

50

40

30
55.3
44.7 44.7
20

10

0 0 0 0 0
agree disagree

Column1 disagree

Chart 4.1.16 bond process

INTERPRETATION:

From the table it is interpreted that 55.3% of the respondents have agree
that there is a bond process in their organization and 44.7% of the
respondents disagree for the bond process in their organization.

46
 Table 4.1.14. employee resignation

Employee resignation No. of respondents Percentage

Work pressure 26 13%
Work life balance 71 35.5%
Compensation 62 31%
Organizational culture 41 20.5%
total 200 100%
Source: primary data

work pressure

work pressure
organizational
culture

compensation

Chart 4.1.17. employee resignation

INTERPRETATION

From the table it is interpreted that 13% of the respondents said

employee resignation is because of work pressure and 20.5% of the
respondents said organizational culture and 31% of the respondents said
it is because of compensation and 35.5% of the respondents said it is
because of work life balance.

47
 Chart 4.1.18.

INTERPRETATION

From the graph it is interpreted that 5% of the respondents scaled 1 and

5% of the respondents said 2 and 27.5% of the respondents scaled 3 and
45% of the respondents said 4 and 9.5% of the respondents said 5.

Chart4.1.19.

48
INTERPRETATION

From the chart it is interpreted that 8% of the respondents scaled 1 and

33.2% of the respondents scaled and 27.6% of the respondents said 3 and
19.6% of the respondents said 4 and 11.6% of the respondents scaled 5.

Table 4.1. 15. Employee feedback

Feedback No. of respondents Percentage

Meetings 34 17%
Questionnaire 75 37.5%
Suggestion box 69 34.5%
Pulse survey 22 11%
Total 200 100%
Source: primary data

Chart Title
40

35

30

25

20

15

10

0
pulse survey meetings suggestion box questionnaire

Chart 4.1.20. employee satisfaction

49
INTERPRETATION

From the table it is interpreted that 17% of the respondents’ said

meetings and 37.5% of the respondent said questionnaire and 34.5% of
the respondents said suggestion box and 11% of the respondents said
pulse survey.

4.2. STATISTICAL ANALYSIS

4.2.1. CHISQUARE:

Null hypothesis H0: There is no significant difference between employee

designations and retention techniques helps the development of
organization.

Alternate hypothesis H1: There is a significant difference between

employee designation and retention techniques helps the development of
organization.

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
5.Designation * 6. Do you 200 100.0% 0 0.0% 200 100.0
%
think the employee
retention helps the
development of
organization?

50
5.Designation * 6. Do you think the employee retention helps the development of organization?
Crosstabulation

6.Do you think the employee retention helps the

development of organization?

All of the Most of

times the never sometime Total
s
time
5.Designa HR analyst Count 0 3 35 8 25 71
ti on
Expecte .7 8.9 33.0 6.7 21.7 71.0
d Count

HR Count 0 4 18 2 13 37
coordinator

Expecte .4 4.6 17.2 3.5 11.3 37.0

d Count

HR Count 1 5 5 0 3 14
manager

Expecte .1 1.8 6.5 1.3 4.3 14.0

d Count

HR trainee Count 0 8 23 4 7 42

Expecte .4 5.3 19.5 4.0 12.8 42.0

d Count

Others Count 1 5 12 5 13 36

Expecte .4 4.5 16.7 3.4 11.0 36.0

d Count

Total Count 2 25 93 19 61 200

Expecte 2.0 25.0 93.0 19.0 61.0 200.0

d Count

51
 Chi-Square Tests

Asymptotic
Value df Significance
(2-sided)
a
Pearson Chi-Square 28.999 16 .024
Likelihood Ratio 28.171 16 .030
N of Valid Cases 200
a. 13 cells (52.0%) have expected count less than 5. The minimum expected count is .14.

Symmetric Measures

Approximate
Value Significance
Nominal by Nominal Phi .381 .024

Cramer's V .190 .024

N of Valid Cases 200

INTERPRETATION
Since the P (0.024) value is less than 0.05, we reject null hypothesis and
accept alternate hypothesis. Hence there is significant difference between
the employee’s designation and their thoughts about retention techniques
helps the development of organisation.

4.2.2. ONE-WAY ANOVA:

Null hypothesis H0: There is no significant association between retention

techniques are well organized in a company has no relationship with those
techniques affects the company’s turnover.

52
 Alternat hypothesis H1: There is a significant association between retention
techniques are well organized in a company has no relationship with those
techniques affect the company’s turnover.

Descriptive

9. Does retention techniques are well organized in your company?

95% Confidence Interval for

Mean
N Mean Std. Deviation Std. Error Minimum Maximum
Lower Bound Upper Bound
1 8 3.38 1.188 .420 2.38 4.37 2 5

2 27 3.00 .961 .185 2.62 3.38 1 5

3 65 3.43 .749 .093 3.25 3.62 2 5

4 79 3.86 .674 .076 3.71 4.01 1 5

5 21 4.19 .750 .164 3.85 4.53 3 5

Total 200 3.62 .842 .060 3.50 3.74 1 5

Test of Homogeneity of Variances

Levane Statistic df1 df2 Sig.

9. Does retention Based on Mean 4.919 4 195 .001
techniques are well
Based on Median 4.700 4 195 .001
organized in your
company? Based on Median and with 4.700 4 186.726 .001
adjusted df

Based on trimmed mean 5.707 4 195 .000

53
 ANOVA

9. Does retention techniques are well organized in your company?

Sum of df Mean Square F Sig.

Squares
Between Groups 24.600 4 6.150 10.292 .000

Within Groups 116.520 195 .598

Total 141.120 199

Robust Tests of Equality of Means

9. Does retention techniques are well organized in your company?

Statistic df1 df2 Sig.

Welch 8.683 4 36.068 .000

Brown-Forsythe 7.433 4 36.227 .000

a. Asymptotically F distributed.

INTERPRETATION
Since the P (0.003) value is less than 0.05, reject the null hypothesis and
accept alternate hypothesis. Hence there is a significant difference
between retention techniques are well organized in your company and
does the techniques affect your company’s turnover.

54
4.2.3 PAIRED T TEST

Null hypothesis H0: Incentive policies may decrease losing the employees has no
relationship with rating employee satisfaction on retention strategies.

Alternate hypothesis H1: Incentives policies may decrease losing the

employees has relationship with rating employee satisfaction on retention
strategies.

Paired Samples Statistics

Mean N Std. Deviation Std. Error Mean

Pair 1 20.Is good salary 3.40 199 .995 .071
and incentives and
proper increment
policy may
decrease losing
the employee?

21. How much do you rate 2.93 199 1.146 .081

your employee’s
satisfaction with the
retention strategies?

Paired Samples Correlations

N Correlation Sig.

55
Pair 1 20.Is good salary and incentives 199 .138 .051
and proper increment policy may
decrease losing the employee? &
21. How much do you rate your
employee’s satisfaction with the
retention strategies?

56
 Paired Samples Test
Sig. (2-
Paired Differences tailed)
95% Confidence
Interval of the
Std. Std. Difference
Mean Deviation Error Lower Upper t df
Mean
Pai 20. Is good .467 1.410 .100 .270 .664 4.676 198 .000
r1 salary and
incentives and
proper
increment
policy may
decrease losing
the employee? -
21. How much

do you rate
your
employee’s
satisfaction
with the
retention
strategies?

INTERPRETATION
Since the P (0.000) value is less than 0.05, it rejects the null hypothesis
and accept alternate hypothesis. Hence there is a difference between the
incentive policies may decrease losing the employees and rating the
employee satisfaction on retention strategies.

57
 CHAPTER -5

FINDINGS, SUGGESTIONS, AND CONCLUSION

5.1. FINDINGS

 Majority of 43.4% of my respondents are between the age group 26-

35 years and least of 9% of the respondents are above 55 years and
above.
 It is clear that 54% of the respondents are male and 46% of the
respondents are female.
 Majority of 35.5% of the respondent’s designation is HR analyst and
least of only 7% are HR managers.
 In case of employee retention helps development of organization
majority of 30.8% of the respondents said sometimes and least of
only 9.6% of the respondents said never.
 Are employee comfortable working with their HR team majority of
29.5% of the respondents disagree to the statement and least of 8%
of the respondents strongly agree.
 Based on experience in their work majority of 36.2% of the
respondents have the work experience of 1-3 years and least of
15.1% of the respondents having the work experience of more than
5 years.
 In Likert scaling question for techniques well organized in their
organization only 1% of the respondents scaled 1 and highest of
53% scaled 4.
 For key retention strategies majority of 34.5% of the respondents
said environment is key retention strategies and least of 10.5% of
the respondents said all the given options are key retention
strategies.
 In Likert scaling least of 4% of the respondents scaled 1 and highest
of 39.5% of the respondents scaled 4
 In case of implementation of 3Rs majority of 33.5% of the
58
respondents said sometimes and least of 7% of the respondents
said never.

59
 Majority of 29.5% of the respondents said neutral for getting support
from their organization when facing critical situation and least of
9.5% of the respondents strongly agree
 Least of 9% of the respondents said their job is not at all challenging
and highest of 28.6% of the respondents said very challenging
 Majority of 48.2% of the respondents disagree for does their
organization really concentrating on top talent.
 Least of only 22% of the respondents agree for open communication
with their employees.
 In case of bond process majority of 55.3% of the respondents agree
 Majority of 35.5% of the respondents said work life balance is the
common reason for employee resignation
 In case of increment policies least of only 5% of the respondents scaled 1
 Least of only 11% of the respondents said feedback of employees
are collected by pulse survey.
 In case of employee satisfaction least of only 8% of the respondents
scaled 1 and majority of 33.2% of the respondents scaled 2 of
employee satisfaction in their organization.
 In case of top talents are rewarded and recognized on regular basis
more of the respondents are from less frequently and less
respondents from occasionally.

60
 5.2. SUGGESTIONS

PROVIDE MORE POSITIVE FEEDBACK:

We all know that employees need feedback to improve and to do their best
work both positive, and constructive advice. A study on Harvard Business
Review shows that the ideal ratio between positive and negative
suggestions is 5.6 (positive) to 1 (corrective). Positive feedback should be
given frequently to motivate employees and to give them the
determination they need to do their best work. But constructive and
corrective feedback is also important, particularly when there’s an urgent
issue that needs to be nipped in the bud. Moving forward, become more
aware of how many negative comments you’re saying to your employees
in relation to positive comments. Move the ratio towards six positive
comments for every negative comment.

Encourage Employee Creativity

Although many companies say they value creativity, they don’t necessarily
have any initiatives or policies in place to support it for example, has a
20% program in which their employees are given the opportunity to work
on side projects that interest them. Give Your Employees an Opportunity to
Grow

Many companies promote people from outside of the organization, and don’t
offer ongoing training and education for their workers. Because there is
no way to advance or improve, employees become disillusioned in their
roles, and are less likely to stay. Per Sharon Florentine at CIO, ongoing
education makes employees feel valued, and gives them something to
look forward to. When there is a clearly laid-out path for advancement,
your workforce will feel like they are a critical part of the company’s
success. By promoting from within and implementing a training program,
or by leveraging outside resources and tools (such as workshops, books,
online courses and videos, etc.), you can create a powerful incentive for
your team members to stay over the long haul.

61
 Earn The Trust of Your Employees

Employees perform better when they trust management and the people
assigning them tasks. They are more likely to achieve the goals that are
set for them when they

62
believe in the person that’s getting them to do the work. 46% of
employees stated that a lack of transparent leadership communication is
driving them to seek new employment. Meanwhile, 79% of highly engaged
employees have trust and confidence in their leaders. If you haven’t
implemented an employee engagement program, there’s a good chance
they don’t trust you as much as you think they do. As you’re looking to
create more trust with your employees, it will be necessary to: build
personal connections, emphasize honesty and transparency, motivate
your team members, give credit and shoulder blame, avoid favouritism,
and demonstrate competence in your work. Your action step: this week,
make it your goal to get to know each of your employees a little better.
Have open-ended conversations with them, and make them feel welcome
and free to discuss what’s on their mind.

Include Your Employees

No one wants to feel excluded in an organization they are a part of. A new
hire wants to feel like they were hired for a reason, and that they are
playing a key role in helping the business achieve its objectives. Josh
Bersin, founder and principle at Bersin by Deloitte, found that companies
who deliberately work to encourage inclusion, diversity, development
planning, and leadership development in their culture were 3.8 times
more likely to be able to coach people for improved performance, 3.6
times more able to deal with personnel performance problems, and 2.9
times more likely to identify and build leaders. This is just one of the
stunning findings on companies that make diversity and inclusion a
priority. From hiring and leadership assessment to professional
development and performance management, you will need to take a top-
down approach to a culture of inclusion, and there are no shortcuts to
getting there. Your action step: this week, have a conversation with each
of your employees individually. Or, have an open-ended strategic meeting,
and ask each of your team members what their thoughts are on their role
within the company. Listen, and take note of what they say.
63
5.3. CONCLUSION

Employee retention is a major concern for many employers; management

teams of successful organization have to realize the importance of
retention its most productive workforce. High turnover leads to loss of
valuable workers whose replacement is costly. It is important to note that
a high employee turnover is normally unhealthy to an organization’s
performance as well as the productivity of other presumably loyal
employees. Moreover, turnover affects productivity of remaining
employees since they may be compelled to perform duties of more than
one person or allocated duties that do not match with their training.

Employee exit from an organization may be a subject of variant factors;

however, although some are avoidable, other factors may be too strong
for the employer to control. It is fundamental for employers to identify
these factors and establish strategies of preventing their occurrence.
Primarily, turnover is attributed to lack of job satisfaction or economic
conditions. Lack of job satisfaction is mainly caused by unmet
expectations, the nature of job, corporate culture in the organization and
personal demographics. On the other hand, market conditions influence
turnover through availability of better job opportunities with improved
compensation.

In order to limit harm of high turnover, employers need to utilize some

strategies so as to improve job satisfaction and hence retention. Primarily,
an employer should review his compensation packages, the workplace
relationships, career and development prospects, and support in the
workplace to facilitate retention of high-performers. The employers should
offer competitive compensation packages depending on skills and
experience of their employees and duration worked. Moreover, the
employers can allow high-performers to formulate their work schedule or
flexible working hours. Besides, the employers should compensate the
employees for any extra hours. Further, employees want more
independence and autonomy whenever handling their duties. Moreover,
employers can retain employees through providing career development
64
opportunities and training.

The workplace culture influences the productivity of employees and also

the rate of turnover. Management needs to instil a supportive culture in
the workplace as it leads to higher job satisfaction, therefore lower
turnover.

65
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 Carsen, J. & CCH Incorporated. (2005). HR How to: Employees
Retention. IL: CCH Incorporated.
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Publishing.
 Jackson, S., Schuler, R. & Werner, S. (2008). Managing Human
Resources. OH: Cengage Learning.
 Prakashan, N. (2008) Human Resoure Management: Managing People
at Work. Bangalore: Nirali Prakashan.
 Smith, G. (2007). 401 proven Ways to Retain Yours Best Employees.
Georgia: CYC Publications.
 Stredwick, J. (2005). Introduction to Human Resource Management.
Oxford: Butterworth-Heinemann.
 Armstrong, M. (2002). Employee reward. London: CIPD Publishing.
 Armstrong, M. (2007). A handbook of employee reward management
and practice. London: Kogan Page Publishers.
 Branham, L. (2005). Seven Hidden Reasons Employees Leave. NY:
AMACOM Div American Mgmt Assn.
 Carsen, J. & CCH Incorporated. (2005). HR How to: Employees
Retention. IL: CCH Incorporated.
 Deeprose, D. (2007). How to recognize & reward employees: 150 ways
to inspire peak performance. NY: AMACOM Div American Mgmt Assn.
 Ganster, D. C. & Perrewe, P. L. (2010). New Developments in Theoretical
and Conceptual Approaches to Job Stress. London: Emerald Group

66
Publishing.

67
 Jackson, S., Schuler, R. & Werner, S. (2008). Managing Human
Resources. OH: Cengage Learning.
 Prakashan, N. (2008) Human Resoure Management: Managing People
at Work. Bangalore: Nirali Prakashan.
 Smith, G. (2007). 401 proven Ways to Retain Yours Best Employees.
Georgia: CYC Publication

68
 STUDY ON EFFECTIVENESS OF EMPLOYEE
RETENTION STRATEGIES
The below questions are framed to know about the Retention strategies in every
organization.

*Required

1. Email *

2. Name

3. Age

Mark only one oval.

18-25 years

26-35 years

36-45 years

55 years and above

4. Gender

Mark only one oval.

Male
Female
5. Designation

Mark only one oval.

HR manager

HR

coordinator

HR analyst
HR trainee
Others

6. Do you think the employee retention helps the development of

organization?

Mark only one oval.

All of the times

Most of the time

sometimes
never

7. Do you comfortable working with your HR team?

Mark only one oval.

strongly

disagree
disagree

neutral

agree
strongly agree
8. For how many years have you been working in this organization?

Mark only one oval.

Less than a year

1-3 years
More than 3 years

9. Does retention techniques are well organized in your company?

Mark only one oval.

1 2 3 4 5

10. what are all the key retention strategies that your company follows?

Mark only one oval.

compensation

environment

growth

support

All of the above

11. Do you think this retention techniques affect company's turn over?

Mark only one oval.

1 2 3 4 5
12. Do you think the implementation of three R's(recognition, reward,
respect)will increase employee retention?

Mark only one oval.

all of the time

most of the

times
sometimes
never

13. Does your management come forward and support when you are
facing with critical situation?

Mark only one oval.

strongly

disagree
disagree

neutral

agree
strongly agree

14. How challenging is your job?

Mark only one oval.

extremely challenging

very challenging

moderately challenging

slightly challenging
not at all challenging
15. Are you really concentrating on giving flexibility to the top talent?

Mark only one oval.

Yes

No
Maybe

16. Does your retention techniques include honest and open

communication with employees?

Mark only one oval.

Yes

No
Maybe

17. Does the Top talent are Rewarded and Recognized on regular basis?

Mark only one oval per row.

more frequently less frequently neutral occasionally

sttrronglly

agrree agrree

sttrronglly diisagrree

diisagrree

18. Do you have any bond process in your organization?

Mark only one oval.

Yes
No
19. What will be the common reason for employee resignation?

Mark only one oval.

work pressure

Work life

balance
compensation
organizational culture

20. Is good salary and incentives and proper increment policy may
decrease losing the employee?

Mark only one oval.

1 2 3 4 5

21. Is your employees are satisfied with the retention strategies?

Mark only one oval.

Highly satisfied

satisfied

neutral
dissatisfied
22. How will you collect your employees feedback?

Mark only one oval.

Meetings

Questionnaire

suggestion box
pulse survey

23. Your opinion about this survey?

This content is neither created nor endorsed by Google.

Forms
 ANNEXURE
A STUDY ON EFFECTIVENESS OF EMPLOYEE RETENTION STRATEGIES
MS. H. THARANI B.SC., MBA.,
School of Management studies, Sathyabama Institute of Science and
Technology Chennai, Tamil Nadu, South India

DR. J. RANI, MBA, M.Phil., PhD. Assistant Professor of the Department

School of Management studies, Sathyabama Institute of Science and
Technology
Chennai, Tamil Nadu, South India

ABSTRACT:

Employee Retention is a challenging concern of that promise to radically alter the way companies
the organization. This study stressed on Employee relate to their
Retention strategies. Employees are the assets of
the organization. To retain skilful and committed
employees in the organization, management should
take care of employee satisfaction. Find out the
reasons of employee turnover and overcome this.
The purpose of this study is to prove how employee
retention is essential in this day and age, and if the
organizations are not awake to the situation and
immediate actions are not taken to that effect, what
repercussions lay ahead and how they would affect
the organization and the industry. Research says
that most of the employees leave an organization
out of frustration and constant friction with their
superiors or other team members. In some cases,
low salary, lack of growth prospects and
motivation compel an employee to look for a
change.

I. INTRODUCTION

One of the greatest challenges in today’s business

world is to stay up to speed in a time of
technological growth. Fundamental changes are
taking place in the work force and the work place
1
employees. As we hurl ahead at an increasing pace
every field, employee retention becomes a concern
for all companies at the present strong job market.
There are a great number of employment
opportunities for talented professionals. It has been
found out that, higher the skills of the employees,
the greater the demand for their services. Hiring
and retaining good employees have become the
chief concerns of nearly every company in every
industry. Companies that decisions to proactively
fulfil those needs will become the dominant players
in their respective markets. Hence employee
retention is a very important issue that organization
must tackle. 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 can also be considered as a business
management term referring to efforts by employers
to retain current employees in their workforce.

Retention begins long before an employee’s first

day on the job. In the twenty-first country
employment world, organization must look at the
foundations of retention through the eyes of
potential employees. They are the customers
for their jobs. Job

2
descriptions, recruitment, selection, and orientation the interests of the other employees as well and
are the foundations of retention. If a good can’t afford to make them angry. The salaries of the
foundation is not prepared for the employees, individuals working at the same level should be
organization cannot expect them to stay. more or less similar to avoid major disputes
Employees will no longer endure what they do not amongst employees. A high potential employee is
like in their employment situation. They have the always the centre of attention at every workplace
power in the knowledge of their abilities and but one should not take any undue advantage. One
confidence in their value in the marketplace. With should understand the limitation of the
greater loyalty to their career and their skills than to management and quote something which matches
their employer, they move on. One crippling cost of the budget of the organization. An individual
high turnover is the loss of institutional knowledge, should not be adamant on a particular figure,
skills and relationships within the organization and otherwise it becomes difficult for the organization
with customers and partners that disappear when an to retain him. Remember there is a room for
employee exits. The organization also loses the negotiation everywhere.
potential value the employee could have delivered,
also known as the opportunity cost. When senior III. OBJECTIVES OF THE STUDY
employees depart, the loss can impact succession
planning as well. These employees particularly top 1. To identify how retention strategy reduce turnover

performers or those with in-demand skills are often

2. To know how employees feel engaged in the
at risk for turnover even in times of high
organization
unemployment. Organizations that focus on
retaining more senior or experienced employees see 3. To know what are the managerial role in the
significant returns as these professionals are apt to retention techniques
solve complex issues on their own, which benefits
4. To study the problems of the employees in the
the organization.
organization.

II. STATEMENT OF THE PROBLEM IV. REVIEW OF LITERATURE

Retention becomes a problem when an employee Hom and Griffeth (1995) described in a study that

quotes an exceptionally high figure beyond the the process of encouraging employees to stay for a

budget of the organization and is just not willing to long period or till the project completion is termed

compromise. The organization needs to take care of as retention. Wysocki’s (1997) pointed out the
view of “The society of Human resource
the interest of other employees as well and can’t
Management” that retention of employee is the
afford to make them angry. Every organization has
hottest topic in the current scenario. Drucker
a salary budget for every employee which can be
(1999) explained that employees voluntarily quit
raised to some extent but not beyond a certain limit.
their job is a potential retention issue. Trip.R,
Retention becomes a problem when an employee
while discussing turnover stated that for many
quotes an exceptionally high figure beyond the
organizations, Voluntary turnover is a big
budget of the organization and is just not willing to
challenge. Turnover may be voluntary or
compromise. The organization needs to take care
involuntary and functional or dysfunctional.
of

3
Voluntary turnovers refer to leaving of an employee
in an organization voluntary i.e., the

4
employee himself decides to leave\resign from the analysis, work life balance and career opportunities,
organization. In involuntary turnover, the employer
expels the employee i.e., the employee leaves the
organization unwillingly. It could be due to low
performance, conflict or due to employment-at-
will. When a low performer leaves the
organization, it is referred as functional turnover.
When a high performer leaves, it is referred as
dysfunctional turnover which incurs cost to an
organization.

Terence et al., (2001) stated that there are so many

reasons for an employee to leave voluntarily. Some
may be personal and some may be influenced by
organizational factors. Personal reasons such as
family situation, career growth and attractive job
offers etc. Organization factors includes lack of
promotional opportunities, unfair treatment among
employees and mismatch between personal values
and organizational values, etc., Overall turnover is
a great problem for both organization and
individual. Further it is clearly discussed that
occurrence of shock which is expected or
unexpected leads to serious thoughts (i.e.,
intention) to leave. Shocks may be positive,
negative or neutral. Positive such as alternative job
offers, pregnancy etc., Negative such as leaving of
friends, poor performance appraisal etc, and neutral
such as relocation of spouse, changes in
administration etc.

Maqsood Haider et al. (2005) undergone research

in Telecom sector and conversed that the
competition to hunt and retain talents is tougher all
the time and discussed that employees effective
human resource practices show a positive and
direct relationship in retaining employees. Further,
it is analysed that culture and compensation have a
positive impact; training and development has a
negative impact over employee retention.

Abeysekera (2007) in a study evaluated the HR

practices like realistic information about job, job
5
supervisor support and compensation and their
impact on employees’ intentions to leave which
resulted that compensation and job analysis have
positive impact on employee turnover. Holtom et
al. (2008) discussed in this study that the factors
that the factors that makes the employee for staying
and leaving were different.

Hay group (2009) stated that employee

engagement includes components such as
commitment and discretionary effort. Commitment
refers to employees’ attachment with an
organization and the intent to continue with
Discretionary effort refers to the employees’
readiness to leave. It is discussed that these two
components must be considered seriously.

V. RESEARCH METHODOLOGY

Research is the process of systematic and in the

depth study of any particular topic, subject or area
of investigation, backed by collection, compilation,
presentation and interpretation of relevant details of
data.

Research is an art of scientific investigation. The

advanced learner’s dictionary of current English lays
down the meaning of research as, “A careful
investigation or inequity especially through the
research for the new facts in any branch of
knowledge.

SAMPLING TECHNIQUE:

Convenience sample is used in this study.

Convenience sampling is defined as a method
adopted by researchers where they collect market
research data from a conveniently available pool of
respondents. It is the market research data from a
technique as it’s incredibly prompt, and
uncomplicated, economical.

STATISTICAL TOOLS

6
The statistical tools (SPSS) used to find hypothesis Age No. of percentage
testing through respondents
18-25 69 34.3%
1. Chi-square
years
2. ANOVA
28-35 87 43.4%
3. Paired t-test
years
SOURCE OF DATA: 36-45 38 19.2%
years
Primary data: The primary data was collected by
55 years 6 3.1
means of survey. Questionaries were prepared and
the responses were collected from HRs of the total 200 100%
organizations. The questionnaire contains 23
questions with demographic and important five
variables.

Secondary data: The secondary data was collected

by referring articles, journals, and keen study on age
research papers etc.

SAMPLE SIZE:
18-
25
The research was conducted on the basis of years
retention strategies of an organization is 200.
26-
35
AREA OF STUDY: years

This is study covers the organizations around

Chennai

PERIOD OF STUDY

The period of study is around 3 months

TABLE 2:
STRUCTURE OF QUESTIONNAIRE:

The questionnaire consists totally of 23 questions.

The questionnaire is formed using five important
variables. It includes five demographic questions.
It includes multiple choice questions, Likert scaling
questions.

VI. DATA ANALYSIS

TABLE 1:

7
Gender No. of Percentage
respondents
Male 108 54%
Female 92 46%
total 200 100%

8
 TABLE 3:
gender
female

male

female male

9
TABLE 4:

1
0
 Perception No. of Percentage
respondents
All of the 25 12.6%
times
Most of the 94 47%
time
Sometimes 62 30.8%
Never 19 9.6%
Total 200 100%

designation No. of Percentage

respondents
Hr manager 14 7%
Hr 37 18.5%
PERCEPTION
coordinator
Hr analyst 71 35.5%
Hr trainee 42 21%
others 36 18%
total 200 100%

designation

40%
35% TABLE 5:
30%
25%
20% flexibility No. of Percentage
15% respondents
10%
Agree 45 22.6%
5%
Disagree 96 48.2%
0%
Maybe 58 29.1%
Series 1 Series 2 Series 3
Total 200 100%

1
1
 fllexibility
ONE-WAY ANOVA:
Column2 Column1 flexibility

Null hypothesis H0: There is no significant

Category 4 association between retention techniques are well

maybe organized in a company has no relationship with

those techniques affects the company’s turnover.
disagree
Alternat hypothesis H1: There is a significant
agree association between retention techniques are well

0 20 40 60
organized in a company has no relationship with
those techniques affect the company’s turnover.

ANALYTICAL TOOLS
CHISQUARE: ANOVA

Null hypothesis H0: There is no significant Does retention techniques are well organized in your company?

difference between employee designations and

Sum of Mean
retention techniques helps the development of
Squares df Square F Sig.
organization.
Between 24.600 4 6.150 10.2 .000
Alternate hypothesis H1: There is a significant Groups 92
difference between employee designation and Within 116.520 195 .598
retention techniques helps the development of Groups

organization. Total 141.120 199

PAIRED T TEST

Chi-Square Tests

Null hypothesis H0: Incentive policies may

decrease losing the employees has no relationship
Asymptotic
with rating employee satisfaction on retention
Significanc
strategies.
Value df e (2-sided)
Pearson 28.999a 16 .024 Alternate hypothesis H1: Incentives policies may
Chi- decrease losing the employees has relationship with
Square rating employee satisfaction on retention strategies.
Likelihood Ratio 28.171 16 .030
N of Valid Cases 200
a. 13 cells (52.0%) have expected count less than
5. The minimum expected count is .14.

1
2
 Paired Samples Test productivity of other presumably loyal employees.
Moreover, turnover affects productivity of

Sig. remaining employees since they may be compelled

(2- to perform duties of more than one person or
Paired Differences tailed) allocated duties that do not match with their
95% training.
Confidence

Interval of the IX. REFERENCE

Std. Std. Difference
Me Devia Error Lowe
 Armstrong, M. (2002). Employee
an tion Mean r Upper t df

P 1 and 2 .46 1.410 .100 .270 .664 4.6 19 .000 reward. London: CIPD Publishing.
ai 7 76 8  Armstrong, M. (2007). A handbook of
r
employee reward management and
VII. SUGGESTIONS
practice. London: Kogan Page Publishers.

We all know that employees need feedback to  Branham, L. (2005). Seven Hidden

improve and to do their best work both positive, Reasons Employees Leave. NY:

AMACOM Div American Mgmt Assn.

and constructive advice. A study on Harvard
 Carsen, J. & CCH Incorporated.
Business Review shows that the ideal ratio between
(2005). HR How to: Employees
positive and negative suggestions is 5.6 (positive)
Retention. IL: CCH Incorporated.
to 1 (corrective). Positive feedback should be
 Deeprose, D. (2007). How to recognize &
given frequently to motivate employees and to
reward employees: 150 ways to inspire
give them the determination they need to do their
peak performance. NY: AMACOM Div
best work. But constructive and corrective
American Mgmt Assn.
feedback is also important, particularly when

there’s an urgent issue that needs to be nipped in

the bud.

VIII. CONCLUSION

Employee retention is a major concern for many

employers; management teams of successful
organization have to realize the importance of
retention its most productive workforce. High
turnover leads to loss of valuable workers whose
replacement is costly. It is important to note that a
high employee turnover is normally unhealthy to an
organization’s performance as well as the
1
3