ER
Content
MARKETING AND HUMAN RESOURCE MANAGEMENT
EMPLOYEE RETENTION
Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. There are many organizations which are looking for such employees. If a person is not satisfied by the job he’s doing, he may switch over to some other more suitable job. In today’s environment it becomes very important for organizations to retain their employees. Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee. The picture states the latest statement that corporate believes in “Love them or lose them”
The reason may be personal or professional. These reasons should be understood by the employer and should be taken care of. Employees today are different. They are not the ones who don’t have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. If they don’t, they would be left with no good employees. A good employer should know how to attract and retain its employees.
1
HATSUN AGRO PRODUCTS LTD
The Hatsun world, India's largest private dairy. From a modest ice-cream, Manufacturer to one of the leading names in India's dairy sector in just a span of three decades, Hatsun now stands majestically as a hallmark of successful entrepreneurship. It started as a creamy dream in 1970: Arun Icecreams, the rich, delicious brand that has captured the hearts of millions of icecream lovers. With over 70 delightful varieties it is the No. 1 selling icecream in south India. Arun Icecreams is manufactured at the most modern plant of its kind in Chennai. Arun Icecreams reaches the consumers through the largest network of exclusive parlors in India. These and the many Arun mini-parlors in the rural areas provide employment to thousands of people. When the market was ruled by unhygienic milk, Hatsun came up with Arokya -the standardized, homogenized and bacteria clarified milk. Arokya milk is still unsurpassed in purity, thickness and quality and has made it one of the most preferred milk brands consumed by several hundred thousand households every day and then came Hatsun Komatha. Hatsun handles a total 1.8 million litre a day. In 1970’s Mr.K.G.Chandramogan started the Ice-cream business in small level. But it developed well and Ice-cream market gives well profit. Next started dairy division in salem near by karumapuram village. First it was package section. In 1998, Hatsun food private ltd established in big level fluid milk processing.
2
MEASURES ADOPTED BY HATSUN AGRO PRODUCTS TO RETAIN THEIR EMPLOYEES
Hatsun Agro Prodcuts Ltd deals in agro products like milk, paneer, skimmed milk powder.
S.No 1. 2. 3. Total The strategy is:
Category Officers Staff Workers
No.of Employees 30 30 290 350
Bangkok Tour for one week This tour was applicable to those employees who will complete their target. The time period for complete a target was two months (from 15June to 15August). Employees have to make individually profit for a company of Rs.12 lakhs to complete their target. The target pattern was like this: Target Rs.12 lakh Rs.10 lakh Rs.7lakh Rewards Bangkok Tour Laptop/LCD Blackberry Handset
This was pattern of target. An idea behind this strategy was make profit for company within short period of time and employee satisfaction for their work. To complete the target organization also provided required data, leads and information to employees. Employees are motivated to work because of this proposal. Through this proposal there are many opportunities for employees to achieve their career goals. Within these two months employees can show their talent. They will get rewards according completion of target. These types of proposals can satisfy to employees and retain to employees with current organizations for long period of time. Within this process organization has to provide required information to employees. Weekly meeting program also help to retain employees. Within these meetings managers or team leaders and employees come together and discuss the bias which employees are facing. Team leaders give the next week target to employees and discuss about the previous week target. These types of meetings help employees to work in a right way. 3
CONCLUSION
The strategies of Hatsun Agro has to use every organization. These strategies are useful for making profit. If employees are not satisfied with the job then companies can use these strategies. By using these strategies employee will get motivated and do the sincere work. For employee retention there should be good communication between team leader and employee, timely motivation and feedback makes confident to employee towards the work. Training programs helps in enhancing knowledge and skill so, these programs helps in achieving career goals of employees. Performance appraisal programs enhance employee’s salary; employees got incentives and bonus in this program. These programs should have to be two times in year because some employees work for these programs. Weekly meeting should have to be taken. In this meeting team leader individually has to ask problems to every employee and he has to give suggestions and information to employee. After adopting the strategy of retaining employees by organising a tour to Bangkok it was observed that the employees worked hard to attain their respective targets which further helped the company retain employees. Rate Dropped down from 15.7% to 14.2% in the year 2010-2011
4
HCL
HCL Enterprise is a 36-year-old, founded in 1976 is leading Global Technology and IT enterprise, with USD 6 billion revenue, 88000 professionals and operations spanning 31 countries. Its range of offerings spans Product Engineering, Custom & Package Applications, Business Process Outsourcing, IT Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products. Since its inception, HCL Enterprise has grown to become what it is today under the strong leadership and guidance of Shiv Nadar (Founder, Chairman and Chief Strategy Officer). HCL Enterprise comprises two companies listed in India, namely HCL Infosystems & HCL Technologies.HCL Infosystems deals with hardware, system integration, network and ICT distribution, solely for the Indian market. HCL Technologies on the other hand, focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business.The company leverages an extensive global offshore infrastructure and its global network of offices in 29 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Sciences & Healthcare, Hi-Tech & Manufacturing, Telecom and Media & Entertainment (M&E). HCL Technologies caters to the global market in areas like product engineering, research & development, enterprise & custom applications, infrastructure management, and Business Services.
5
MEASURES ADOPTED BY HCL TO RETAIN EMPLOYEES
Bi-annual appraisal FEP – Further Education Program Shine – IIM Certification Bond Contract On the spot awards – recognition award Hourly incentive for extra hour worked Performer of the week Discounts available like Sodexo coupon, pizza hut discount, etc. Internal job Posting International Job Posting. Compensation and salary should be matching with the employee’s contribution to the organization. Periodic reviews of the employees satisfaction level regarding to issues like salary, work position and environment etc The company should initiate the career development path of its employees along with the development of the organization.
CONCLUSION
The present report indicates that the following features: Better job opportunities in outer market & pay are the main reasons for increasing attrition rate. The employees do not feel valued by their employer. The working environment in the company also make them to leave their job. Performance Appraisals are not given at regular intervals so that the Employee feel motivated for its work. The work schedule is very much inflexible & Stressful. The attrition rate rose from 18.% to 23.5% and saw a 28% decline in the quarterly profits.
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However an effective retention policy could be followed to make the employees stay in the company starting form recruitment and selection of employees, providing an effective pay packages and compensation, outlining an efficient career development path for employees and most importantly catering to their emotional, mental and family needs. Also practices should be followed to bring the ex-employees back in the company.
7
WIRPO TECHNOLOGIES
Wipro Limited (formerly Western India Products Limited) is an Indian multinational provider of information technology (IT) services, consulting and outsourcing services. It is headquartered in Bangalore, Karnataka, India. As of 2012, the company has over 140,000 employees and a worldwide presence with global centers across 54 countries. The company operates in four segments: IT products and services, Consumer care and lighting, Healthcare and Infrastructure engineering. The company was incorporated on 29 December 1945 at Mumbai by Mohamed Hasham Premji as Western India Products Limited, later abbreviated to Wipro. It was initially set up as a manufacturer of vegetable ghee, vanaspati, refined oils including salad oil in Amalner, Dist:Jalgaon, Maharashtra under the trade names of Kisan, Sunflower and Camel. The company logo still contains a sunflower to reflect their original business. In 1966, after his father’s death Azim rushed back from Stanford University and took over Wipro as its chairman at the age of 21. Azim Premji is a major shareholder in Wipro. During the 1970s and 1980s, the company shifted its focus and began to look into business opportunities in the IT and computing industry, which was at a nascent stage in India at that time.
8
MEASURES TO RETAIN EMPLOYEE
Wipro’s HR objectives are to make sure that their employees are more productive. The Wipro HR strategy has been planned in a manner where it ensures that Wipro employees come up with better tools to make a better tomorrow. Wipro has spent a large amount of capital to ensure that they get the best HR resources. They believe that investing in HR in the short term will lead to long term benefits. Wipro has invested in a top of the line research lab which will help them achieve their search goals. Wipro also wants to promote their state of the art ad system which will allow them to reach out to a majority of marketers around the world. The thing about Wipro is that they are quite laid back in a lot of ways. They are proud of what they have done and what they want to achieve. This is one reason why they have no issues with themselves being branded as geeks as it is a matter of pride for them. Wipro’s strategy is that it has one of the best HR departments in the world. The HR department has played a huge role in the success of the organization. Their employees are as committed to Wipro as the founders are because of their genuine love for innovation. Wipro’s main mission statement is that its employees focus on creativity and innovation while having access to the perfect mix of information and resources for their work. Wipro values its employees a great deal and that’s why its main strategy is to focus on creating new human capital and retaining those employees. It is important for the employees to be loyal, honest and maintain their integrity within the organization. Google has allotted a huge chunk of its budget for recruiting employees. It has been estimated that Wipro has a ratio of 1 recruiter for around 14 employees. Apart from this the other ways for retaining are – Flexible Salary benefits Flexi- Time Performance Based Incentives Educational Benefits Loans Corporate Credit Card etc
9
CONCLUSION
As employees are the bases for company so retention of employees is a major focus for HR department. The management should identify the important factors that affect retention and should take necessary measures to improve these. Also, the management should take appropriate measure to identify the reasons of employee voluntarily leave. It is only the employees that implement and give tangibility to the corporate’s mission. In other words if it is the highest rung in the corporate hierarchy that has ideas, it is the employees’ rung that has the chisel to bring the vision to life. In the best of worlds, employees would love their jobs. Like their co-workers, work hard for their employers, get paid well for their work, have ample chances of advancement and flexible schedules so they could attend to personal or family needs when necessary. And never leave. But then there’s the real world. And in the real world, employees, do, leave, either because they want more money, hate the working conditions, hate their co-workers, want a change, or because their spouse gets a dream job in another state. Unlike inanimate products and systems that subject themselves to fine tuning without any reaction, employees would not subject themselves to any measure taken without reaction and analysis. Hence managing human resources, particularly retaining them, is an art that calls for special skills and strategies. Employee survey and exit interviews can be used for assessing the reasons of employee voluntarily leave. HR interventions such as improving selection process, effective orientation and training, better employee relation, better career development programs and planning etc should be used to improve employee retention. In April , 2012 there was a 7.7% rise in profits. The attrition rate was 14.4 % which is less than its competitors. The attrition rate fell by 6.5%. The company said it expects June quarter revenue of $1.52 billion to $1.55 billion at its IT services unit, a rise of 0.6 percent from the March quarter. That's a positive outlook from the company.
10
BIBLIOGRAPHY
BOOKS
Gupta Shashi K. & Joshi Rosy, Human Resource Management, Tata McGraw Hill, Fourth Revised & Enlarged Edition, 2007. (Page 20.9-20.14) Kothari C.R., Research methodology, New Age Publishing House, Second Edition. Griffeth RW, Hom PW, Gaertner S (2000). "A meta-analysis of antecedents and correlates of employee turnover: update, moderator tests, and research implications for the next millennium", J. Manage. 26 (3): 463-88.
WEBSITES
www.retention.naukarihub.com www.insurancejournal.com www.thefreelibrary.com www.irdaindia.org
11
EMPLOYEE RETENTION
Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. There are many organizations which are looking for such employees. If a person is not satisfied by the job he’s doing, he may switch over to some other more suitable job. In today’s environment it becomes very important for organizations to retain their employees. Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee. The picture states the latest statement that corporate believes in “Love them or lose them”
The reason may be personal or professional. These reasons should be understood by the employer and should be taken care of. Employees today are different. They are not the ones who don’t have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. If they don’t, they would be left with no good employees. A good employer should know how to attract and retain its employees.
1
HATSUN AGRO PRODUCTS LTD
The Hatsun world, India's largest private dairy. From a modest ice-cream, Manufacturer to one of the leading names in India's dairy sector in just a span of three decades, Hatsun now stands majestically as a hallmark of successful entrepreneurship. It started as a creamy dream in 1970: Arun Icecreams, the rich, delicious brand that has captured the hearts of millions of icecream lovers. With over 70 delightful varieties it is the No. 1 selling icecream in south India. Arun Icecreams is manufactured at the most modern plant of its kind in Chennai. Arun Icecreams reaches the consumers through the largest network of exclusive parlors in India. These and the many Arun mini-parlors in the rural areas provide employment to thousands of people. When the market was ruled by unhygienic milk, Hatsun came up with Arokya -the standardized, homogenized and bacteria clarified milk. Arokya milk is still unsurpassed in purity, thickness and quality and has made it one of the most preferred milk brands consumed by several hundred thousand households every day and then came Hatsun Komatha. Hatsun handles a total 1.8 million litre a day. In 1970’s Mr.K.G.Chandramogan started the Ice-cream business in small level. But it developed well and Ice-cream market gives well profit. Next started dairy division in salem near by karumapuram village. First it was package section. In 1998, Hatsun food private ltd established in big level fluid milk processing.
2
MEASURES ADOPTED BY HATSUN AGRO PRODUCTS TO RETAIN THEIR EMPLOYEES
Hatsun Agro Prodcuts Ltd deals in agro products like milk, paneer, skimmed milk powder.
S.No 1. 2. 3. Total The strategy is:
Category Officers Staff Workers
No.of Employees 30 30 290 350
Bangkok Tour for one week This tour was applicable to those employees who will complete their target. The time period for complete a target was two months (from 15June to 15August). Employees have to make individually profit for a company of Rs.12 lakhs to complete their target. The target pattern was like this: Target Rs.12 lakh Rs.10 lakh Rs.7lakh Rewards Bangkok Tour Laptop/LCD Blackberry Handset
This was pattern of target. An idea behind this strategy was make profit for company within short period of time and employee satisfaction for their work. To complete the target organization also provided required data, leads and information to employees. Employees are motivated to work because of this proposal. Through this proposal there are many opportunities for employees to achieve their career goals. Within these two months employees can show their talent. They will get rewards according completion of target. These types of proposals can satisfy to employees and retain to employees with current organizations for long period of time. Within this process organization has to provide required information to employees. Weekly meeting program also help to retain employees. Within these meetings managers or team leaders and employees come together and discuss the bias which employees are facing. Team leaders give the next week target to employees and discuss about the previous week target. These types of meetings help employees to work in a right way. 3
CONCLUSION
The strategies of Hatsun Agro has to use every organization. These strategies are useful for making profit. If employees are not satisfied with the job then companies can use these strategies. By using these strategies employee will get motivated and do the sincere work. For employee retention there should be good communication between team leader and employee, timely motivation and feedback makes confident to employee towards the work. Training programs helps in enhancing knowledge and skill so, these programs helps in achieving career goals of employees. Performance appraisal programs enhance employee’s salary; employees got incentives and bonus in this program. These programs should have to be two times in year because some employees work for these programs. Weekly meeting should have to be taken. In this meeting team leader individually has to ask problems to every employee and he has to give suggestions and information to employee. After adopting the strategy of retaining employees by organising a tour to Bangkok it was observed that the employees worked hard to attain their respective targets which further helped the company retain employees. Rate Dropped down from 15.7% to 14.2% in the year 2010-2011
4
HCL
HCL Enterprise is a 36-year-old, founded in 1976 is leading Global Technology and IT enterprise, with USD 6 billion revenue, 88000 professionals and operations spanning 31 countries. Its range of offerings spans Product Engineering, Custom & Package Applications, Business Process Outsourcing, IT Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products. Since its inception, HCL Enterprise has grown to become what it is today under the strong leadership and guidance of Shiv Nadar (Founder, Chairman and Chief Strategy Officer). HCL Enterprise comprises two companies listed in India, namely HCL Infosystems & HCL Technologies.HCL Infosystems deals with hardware, system integration, network and ICT distribution, solely for the Indian market. HCL Technologies on the other hand, focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business.The company leverages an extensive global offshore infrastructure and its global network of offices in 29 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Sciences & Healthcare, Hi-Tech & Manufacturing, Telecom and Media & Entertainment (M&E). HCL Technologies caters to the global market in areas like product engineering, research & development, enterprise & custom applications, infrastructure management, and Business Services.
5
MEASURES ADOPTED BY HCL TO RETAIN EMPLOYEES
Bi-annual appraisal FEP – Further Education Program Shine – IIM Certification Bond Contract On the spot awards – recognition award Hourly incentive for extra hour worked Performer of the week Discounts available like Sodexo coupon, pizza hut discount, etc. Internal job Posting International Job Posting. Compensation and salary should be matching with the employee’s contribution to the organization. Periodic reviews of the employees satisfaction level regarding to issues like salary, work position and environment etc The company should initiate the career development path of its employees along with the development of the organization.
CONCLUSION
The present report indicates that the following features: Better job opportunities in outer market & pay are the main reasons for increasing attrition rate. The employees do not feel valued by their employer. The working environment in the company also make them to leave their job. Performance Appraisals are not given at regular intervals so that the Employee feel motivated for its work. The work schedule is very much inflexible & Stressful. The attrition rate rose from 18.% to 23.5% and saw a 28% decline in the quarterly profits.
6
However an effective retention policy could be followed to make the employees stay in the company starting form recruitment and selection of employees, providing an effective pay packages and compensation, outlining an efficient career development path for employees and most importantly catering to their emotional, mental and family needs. Also practices should be followed to bring the ex-employees back in the company.
7
WIRPO TECHNOLOGIES
Wipro Limited (formerly Western India Products Limited) is an Indian multinational provider of information technology (IT) services, consulting and outsourcing services. It is headquartered in Bangalore, Karnataka, India. As of 2012, the company has over 140,000 employees and a worldwide presence with global centers across 54 countries. The company operates in four segments: IT products and services, Consumer care and lighting, Healthcare and Infrastructure engineering. The company was incorporated on 29 December 1945 at Mumbai by Mohamed Hasham Premji as Western India Products Limited, later abbreviated to Wipro. It was initially set up as a manufacturer of vegetable ghee, vanaspati, refined oils including salad oil in Amalner, Dist:Jalgaon, Maharashtra under the trade names of Kisan, Sunflower and Camel. The company logo still contains a sunflower to reflect their original business. In 1966, after his father’s death Azim rushed back from Stanford University and took over Wipro as its chairman at the age of 21. Azim Premji is a major shareholder in Wipro. During the 1970s and 1980s, the company shifted its focus and began to look into business opportunities in the IT and computing industry, which was at a nascent stage in India at that time.
8
MEASURES TO RETAIN EMPLOYEE
Wipro’s HR objectives are to make sure that their employees are more productive. The Wipro HR strategy has been planned in a manner where it ensures that Wipro employees come up with better tools to make a better tomorrow. Wipro has spent a large amount of capital to ensure that they get the best HR resources. They believe that investing in HR in the short term will lead to long term benefits. Wipro has invested in a top of the line research lab which will help them achieve their search goals. Wipro also wants to promote their state of the art ad system which will allow them to reach out to a majority of marketers around the world. The thing about Wipro is that they are quite laid back in a lot of ways. They are proud of what they have done and what they want to achieve. This is one reason why they have no issues with themselves being branded as geeks as it is a matter of pride for them. Wipro’s strategy is that it has one of the best HR departments in the world. The HR department has played a huge role in the success of the organization. Their employees are as committed to Wipro as the founders are because of their genuine love for innovation. Wipro’s main mission statement is that its employees focus on creativity and innovation while having access to the perfect mix of information and resources for their work. Wipro values its employees a great deal and that’s why its main strategy is to focus on creating new human capital and retaining those employees. It is important for the employees to be loyal, honest and maintain their integrity within the organization. Google has allotted a huge chunk of its budget for recruiting employees. It has been estimated that Wipro has a ratio of 1 recruiter for around 14 employees. Apart from this the other ways for retaining are – Flexible Salary benefits Flexi- Time Performance Based Incentives Educational Benefits Loans Corporate Credit Card etc
9
CONCLUSION
As employees are the bases for company so retention of employees is a major focus for HR department. The management should identify the important factors that affect retention and should take necessary measures to improve these. Also, the management should take appropriate measure to identify the reasons of employee voluntarily leave. It is only the employees that implement and give tangibility to the corporate’s mission. In other words if it is the highest rung in the corporate hierarchy that has ideas, it is the employees’ rung that has the chisel to bring the vision to life. In the best of worlds, employees would love their jobs. Like their co-workers, work hard for their employers, get paid well for their work, have ample chances of advancement and flexible schedules so they could attend to personal or family needs when necessary. And never leave. But then there’s the real world. And in the real world, employees, do, leave, either because they want more money, hate the working conditions, hate their co-workers, want a change, or because their spouse gets a dream job in another state. Unlike inanimate products and systems that subject themselves to fine tuning without any reaction, employees would not subject themselves to any measure taken without reaction and analysis. Hence managing human resources, particularly retaining them, is an art that calls for special skills and strategies. Employee survey and exit interviews can be used for assessing the reasons of employee voluntarily leave. HR interventions such as improving selection process, effective orientation and training, better employee relation, better career development programs and planning etc should be used to improve employee retention. In April , 2012 there was a 7.7% rise in profits. The attrition rate was 14.4 % which is less than its competitors. The attrition rate fell by 6.5%. The company said it expects June quarter revenue of $1.52 billion to $1.55 billion at its IT services unit, a rise of 0.6 percent from the March quarter. That's a positive outlook from the company.
10
BIBLIOGRAPHY
BOOKS
Gupta Shashi K. & Joshi Rosy, Human Resource Management, Tata McGraw Hill, Fourth Revised & Enlarged Edition, 2007. (Page 20.9-20.14) Kothari C.R., Research methodology, New Age Publishing House, Second Edition. Griffeth RW, Hom PW, Gaertner S (2000). "A meta-analysis of antecedents and correlates of employee turnover: update, moderator tests, and research implications for the next millennium", J. Manage. 26 (3): 463-88.
WEBSITES
www.retention.naukarihub.com www.insurancejournal.com www.thefreelibrary.com www.irdaindia.org
11
