Chapter-IV

THEORETICAL FRAMEWORK
OF EMPLOYEE RETENTION
 CHAPTER – 4

THEORETICAL FRAMEWORK OF EMPLOYEE

RETENTION

An attempt was made in this chapter to provide different theoretical aspects of

employee retention. This chapter presents the concept of employee turnover, causes of
employee turnover, and problems of employee turnover and concept of employee
retention. The chapter also explodes the retention methods, qualities in an
organization for better employee retention, employee retention strategies and
challenges in employee retention.

CONCEPT OF EMPLOYEE TURNOVER

Employee turnover refers to the number or percentage of workers who leave

an organization and are replaced by new employees. Measuring employee turnover
can be helpful to employers that want to examine reasons for turnover or estimate the
cost-to-hire for budget purposes. Employee turnover and employee attrition both
occur when an employee leaves the company. Turnover, however, may result from a
number of employment actions, such as discharge, termination, resignation or job
abandonment. Attrition occurs when an employee retires or when the company
eliminates his job. The major difference between the two is that when turnover
occurs, the company seeks someone to replace the employee. In cases of attrition, the
employer leaves the vacancy unfilled or eliminates that job role1.

Gberevbie2 (2010) referred to labor turnover as “a state of affairs in an

organization, where it is seen that employees tend to leave or resign from their jobs
because of best known reasons based on their point of view concerning personnel
policies and practice of a firm”. Frequent labor turnover at work has been found to be
causing harm to performance, especially when employees are going to the direct
competitors of the organization (Chartered Institute of Personnel Development,
2006)3. This implies that when the staff turnover in an organization is found to be
higher than usual, the performance of that organization would be relatively low

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because there will be a lack of availability of competent employees arising from
frequent turnover of organizational workforce.

Although different types of turnover exist, the general definition is that

turnover occurs when the employment relationship ends. Turnover and attrition terms
that are sometimes used interchangeably or together when describing the departure of
an employee are different. Attrition generally refers to the end of the employment
relationship due to retirement, job elimination or employee death, and is
distinguishable from turnover because when attrition occurs, the position is not filled
with a new employee.

Employee termination for poor job performance, absenteeism or violation of

workplace policies is called involuntary turnover also referred to as termination, firing
or discharge. It's involuntary because it wasn't the employee's decision to leave the
company. Layoffs could also be considered involuntary terminations, though layoff
procedures usually are handled differently from termination. Some layoffs have
certain federal and state provisions that aren't afforded to employees who are fired
because of performance or policy violations. When an employee leaves the company
of her own volition, it's called voluntary termination. Employees give a number of
reasons for leaving their jobs. They may be accepting employment with another
company, relocating to a new area or dealing with a personal matter that makes it
impossible to work. When an employee voluntarily terminates the employment
relationship, she generally gives the employer verbal or written notice of intent to
resign from her job.

Turnover often has a negative connotation, yet turnover isn't always a negative
event. For example, desirable turnover occurs an employee whose performance falls
below the company's expectations is replaced by someone whose performance meets
or exceeds expectations. It's desirable because poor job performance, absenteeism and
tardiness are costly; replacing a poor performer with an employee who does his job
can improve the company's profitability. Desirable turnover also occurs when
replacing employees infuses new talent and skills, which can give an organization a
competitive advantage. Conversely, undesirable turnover means the company is
losing employees whose performance, skills and qualifications are valuable resources.
Basic turnover calculations are relatively simple. If company employs 100 employees

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and 15 employees are fired or quit, turnover is 15 per cent. Most organizations use
more detailed calculations to determine what underlies turnover. Assume five
employees leave in January, one employee leaves in May and four employees leave in
November. The annual turnover rate is 10 per cent, and average monthly turnover is
8.3 per cent. Employee turnover calculations may also factor in different types of
turnover, such as involuntary and voluntary, or even more specific reasons why
employees leave, such as poor performance, absenteeism or employees accepting new
jobs elsewhere. Turnover calculations are helpful to determine hiring costs, training
requirements or estimating staff time devoted to recruitment activities.

CAUSES OF EMPLOYEE TURNOVER

The causes of turnover are related to the same factors that contribute to
absenteeism, if workers are not interested in their jobs, they will either stay away or
leave. But being unhappy in a job is not the only reason why people leave one
employer for another. If the skills that they possess are in demand, they may be lured
away by higher pay, better benefits, or better job growth potential. While manager
can‟t control what‟s happening with other companies, how much they pay, or which
benefits they offer, manager can take steps to improve morale at business and make
those employees who are with organization happy productive. That‟s why it is
important to know and recognize the difference between employees who leave
because they are unhappy and those who leave for other reasons4.

High turnover often means the employees are dissatisfied with their jobs,
especially when it is relatively easy to find a new one. It can also indicate unsafe or
unhealthy conditions, or that too few employees give satisfactory performance due to
unrealistic expectations, inappropriate processes or tools, or poor candidate screening.
The lack of career opportunities and challenges, dissatisfaction with the job-scope or
conflict with the management has been cited as predictors of high turnover.

Each company has its own unique turnover drivers so companies must
continually work to identify these issues that cause turnover in their company. Further
the causes of attrition vary within a company such that causes for turnover in one
department might be very different from the causes of turnover in another department.

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Companies can use exit interviews to find out why employees are leaving and the
problems they encountered in the workplace5.

Low turnover indicates that none of these above is true. Employees are
satisfied, healthy and safe, and their performance is satisfactory to the employer.
However, the predictors of low turnover may sometimes differ than those of high
turnover. Aside from the fore-mentioned career opportunities, salary, corporate
culture, management‟s recognition, and a comfortable workplace seem to impact
employees‟ decision to stay with their employer. Many psychological and
management theories exist regarding the types of job content which is intrinsically
satisfying to employees and which, in turn, should minimize external voluntary
turnover. Examples include Herzberg‟s two factor theory, McClelland‟s theory of
needs, and Hack man and Oldham‟s job characteristics model. One mistake HR
professionals and managers make is to assume people leave solely on the basis of
their unhappiness with their compensation packages. Many factors can cause de-
motivated employees. One we find out what can cause voluntary turnover, we can
develop retention strategies to reduce turnover. The following are some of the
common reasons for high turnover in business6:

A bad match between the employee’s skills and the job: Employees who are
placed in jobs that are too difficult for them or whose skills are underutilized may
become discouraged and quit. Inadequate information about skills requirements that
are needed to fill a job may result in the hiring of either skilled or over qualified
workers. The requirements of a specific job should be carefully studied for the
required skills, and workers should be tested for the requisite qualifications. Use job
analysis and job descriptions to minimize the chances of this happening. The issue is
directly related to the recruitment process. When poor match occurs, it can cause
frustration for the employee and for the manager. Ensuring the recruitment phase is
viable and sound is a first step to making sure the right match between job and skills
occur.

Lack of Standard equipment, tools, or facilities: If working conditions are

substandard or the workplace lacks important facilities such as proper lighting,
furniture, restrooms and other health and safety provisions, employee will not be
willing to put up with the inconvenience for long.

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Lack of opportunity for advancement or growth: If the job is basically a dead-end
proposition, this should be explained before hiring so as not to mislead the employee.
The job should be described precisely, without raising false hopes for growth and
advancement in the position. This is the prime reason why employees quit their job.

Lack of appreciation: Since employees generally want to do a good job, it follows

that they also want to be appreciated and recognized for their work. Even the most
seasoned employee needs to be told what he or she is doing right once in a while.

Inadequate supervision and training: Employees need guidance and direction. New
employees may need extra help in learning an unfamiliar job. Similarly, the absence
of a training program may cause workers to fall behind in their level of performance
and feel that their abilities are lacking.

Unequal or substandard wage structures: Inequity in pay structures and low pay
are great causes of dissatisfaction and can drive some employees to quit. Again, a new
worker may wonder why the person next to him is receiving a higher wage for what is
perceived to be the same work. Organization should have a wage and job evaluation
system in place not only to comply with legal requirements, but also to avoid this
problem. This is the common reasons why employee turnover rate is high. Employees
are for sure in search of jobs that pay them well. When employees are underpaid, they
tend to look out for jobs that offer considerable pay.

Lack of vision: Initially, no employee cares about the company‟s profit but about
their personal interest and gains. These shortsighted employees come with high
expectations without realizing that the process would take some time. Therefore, they
tend to change.

Poor Work environment: Work environment is also the main cause for employee
turnover. Every employee would want work in the environment that he/she is
comfortable in. This is one such reasons why employees jump from one company to
another in a just a couple of months. Some employees feel their workloads are too
heavy, resulting in employees being spread thin and lacking satisfaction from their
jobs, and possible, lack of work-life balance as a result.

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Lack of motivation: Employees who leave due to lack of motivation are not among
who look forward for a pat on their back, but those who would want to know if their
work adds value to the company‟s growth.

No employee engagement: Employee engagement is one of the important motivator.

Employees would be happy to be a part of the company‟s ups and downs, and
therefore they should be kept posted with all the happenings in the organization.

Poor Management: Many employees cite management as per their reason for
leaving. This can be attributed to over managing people, managers not being fair or
playing favorites, lack of or poor communication by managers, and unrealistic
expectations of managers.

PROBLEMS OF EMPLOYEE TURNOVER

Employees are major assets of any organization. An organization can‟t survive

if the individuals are not focused and serious about their work. The success and
failure of any organization depend on the hard work put by the employees to achieve
the targets of the organization. It is a common observation that employees who spend
a good amount of time in the organization tend to know more about it and thus
contribute effectively. They develop a sense of loyalty towards their workplace and
strive hard to live up to the expectations of the management. There are several reasons
as to why an employee decides to move on. Monetary dissatisfaction, a negative
environment at work place, dirty politics, complicated hierarchies, lack of challenging
work, poor supervision being the major ones. In the current scenario almost all the
leading organizations are facing the problem of employee retention. Management
somehow fails to stop the high potential employees and thus face the negative
consequences. It becomes really difficult for the organization to retain the employees
who decide to quit for a better opportunity. Employee turnover is natural part of
business in any industry. Excessive turnover decreases the overall efficiency of the
company and comes with a high price tag. Understanding the effects of losing a high
number of employees serves as a motivator to work toward reducing the turnover rate
for higher profits and a more appealing work environment. Employers should focus
on turnover for different reasons are as follows7:

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Cost: Each employee who resigns costs company money. All of the money invested
into that employee through training, education and licensing walks out the door with
employee. When HR hires a replacement, the company spends money on those same
areas to prepare the new hire for the position. The company also pays to advertise the
vacancy and may incur coats for drug testing, physicals and moving expenses. The
company could pay 1/3 of the yearly salary of the new employee in costs. Replacing
workers can be expensive. While the cost varies, some studies have shown the cost to
replace and hire new staff as high as 60 percent of the old employee‟s salary. In
addition, total costs of replacement, including training and lost production, can range
from 90 percent to 200 percent of an employee‟s annual salary.

Time: High turnover rates cost the company time in addition to money. Managers or
human resources staff spends time conducting exit interviews, advertising the job,
recruiting candidates and interviewing. Supervisors and colleagues are often left to
cover until a new employee is hired and begins working. The new employee may take
several months to fully learn the job and achieve competency in the position.

Team Dynamics: When the staff changes frequently, the employees who stay have a
difficult time building a positive team dynamic. A group of employees learns to work
well together, only to have one or more members leave. This leaves the staff in limbo
until a new employee starts. The personality and work ethic of the new employee may
vary significantly from the previous employee. High turnover can hurt overall morale
of employees.

Productivity: The overall productivity of the workplace tends to decrease with high
turnover. Since a new employee has a period of adjustment, he won‟t complete tasks
as quickly as the person he replaces. Group projects that rely on the new team
member may slow down, which affects experienced employees‟ productivity levels.
The loss of momentum when an employee resigns may also affect morale.

Continuity: A high turnover rate affects the continuity of service to clients and other
employees. This is particularly difficult in an industry that relies heavily on
relationships with clients. For example, a client who purchases products from the
company on a regular basis may grow tired of getting a new salesperson or customer
service contact every few months. Consistent relationships with clients help build a

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stronger loyalty to the company. The company is also better able to provide
consistent, high-quality service with well-trained staff that doesn‟t change often.

Overall business performance: In addition, oftentimes the employees who remain

with a company are less productive and less efficient than they would have been in a
lower turnover environment. This is because they must absorb the responsibilities of
the vacant position, train new employees upon their arrival, and deal with a depressed
work culture and environment. As a result, companies with lower retention rates and
high turnover are often less competitive and produce less than companies with a
stable work force.

Turnover can be difficult to control: National studies consistently show that

employees quit jobs more often because of workforce culture or inter-employee
relations than because of the difficulty of the work. A culture of high turnover feeds
off of itself, leading to lower and lower retention rates. It can be hard to manage a
workforce that is constantly in flux; oftentimes leaving companies in a tough position
to complete.

Let us go through some other effects of high employee turnover:

1. Employees who spend a considerable amount of time in any organization

know it in and out and thus can perform better. They are well familiar with the
company policies and adjustment is never a problem. Employees who come
and go find it very difficult to settle down in a new environment and are thus
always in a state of dilemma. They are not able to perform up to their potential
and eventually the work and the organization suffers.
2. Individuals who have the habit of changing jobs frequently never get attached
to any particular organization. They just treat the organization as a mere
source of earning money. They are never serious about their work and fail to
accomplish the tasks within the desired time frame. It hardly matters to them
whether the organization is performing well or not. In cases of poor retention
policies, employees are just now bothered about the reputation of their office
and avoid taking initiative to do something new. The employees who are there
for a long time in the organization are trustworthy and the management can
rely on them anytime.

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 3. When individuals leave any organization, they are more likely to join the
competitors. Sometimes they tend to take confidential data along with then to
create an impression in their new organization. This way the plans of the
organization get leaked even before implementation and they fail to do
anything great. Employees must not share any information with an external
party in any manner what so ever.
4. An organization can‟t perform well if the employees speak negative about it. It
is essential to have a group of loyalists who play an important role in
furthering the brand image of the company. Employees working with an
organization for a long time never badmouth it and are somewhat emotionally
attached to it. People leaving in a short span always speak ill about their
previous organizations. The loyalty factor is almost zero and no one is ready to
take ownership of work.

EMPLOYEE RETENTION

Employee Retention involves taking measures to encourage employees to

remain in the organization for the maximum period of time. It 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. Effective employee retention is a
systematic effort by employers to create and foster an environment that encourages
current employees to remain employed, by having policies and practices in place that
address their diverse needs. However, many consider employee retention as relating
to the efforts by which employers attempt to retain employees in their workforce. In
this sense, retention becomes the strategies rather than the outcome8.

EMPLOYEE RETENTION TOOLS

Here are some effective employee retention tools which employers utilize in
order to keep employees happy and part of their organization instead of looking for
employment opportunities elsewhere.

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1. COMPENSATION

Compensation is the total cash and non-cash payments that an employer gives
to an employee in exchange for the work they do. It is typically one of the biggest
expenses for business with employees. Compensation is more than an employee‟s
regular paid wages. It also includes many other types of wages and benefits.
Employees who feel significantly under compensated are likely to leave. Employees
want to be paid well for the job they do, both for their self-esteem and as a practical
means to living. The importance of compensation in employee retention depends
somewhat on the type of job and industry. A financial planner or stock broker, for
example, often is more concerned about compensation than most people who go into
nonprofit and health care fields primarily to help people. Compensation includes not
only salary, but also benefits and other perks9.

Compensation might not be the most important factor in determining whether

an employee will stay with the company, but it can tip the balance. In addition to
salary and wages, benefits make up company‟s compensation package, and it‟s
possible to improve what company can offer to its employees without spending more
money. The better the compensation package, the more likely the company will retain
key employees10.

Components of Compensation

Wages should be determined in such a way that they are perceived to be fair
and equitable by all the employees. Compensation system should be so designed that
it is able to attract, retain and motivate people. Total payable compensation can be
paid in different forms. Besides classifying components of compensation in many
other ways, one method of classification that has been discussed is „financial
compensation and non-financial compensation‟. Concentrating on financial
compensation presently, different financial components can be broadly categorized as
foloows11:

 Basic wage/salary
 Dearness allowance
 Bonus
 Incentive compensation
 Fringe benefits and retirement benefits

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 Different Components mentioned above and their sub-components (mentioned
later) are valued by different people differently. Therefore, not only the total reward
should be perceived to be fair and equitable, but it should be in such form which is
valued by the recipient. In what components, compensation should be paid can be
largely decided by the employer and the employee, through there are some other
factor influencing such decisions, namely, past practices of the organization, legal
requirements and Governments decisions.

Basic Wage / Salary

Basic wage provides the foundation of pay packet. It is a price for services
rendered. Base wage is the cash compensation that an employer pays for the work
performed. It remains fairly stable over a long period of time. Determination of such
wage is done keeping in mind certain factors like education and skills of employees,
ability of the organization to pay, wages paid by other firms in the industry and some
such other factors. The base wage remains fairly stable over some period of time. It
happens when the base wage is determined in the manner of spot rate for the skills
and abilities possessed by the individual. In other cases, where wage rates are
determined according to the grades, it progresses evenly within job grades. Such
wages are revised periodically to:

 Keep pace with the increasing cost of living

 Maintain gap between the senior employees and newer employees
 To give the psychological feeling to employees that they have progressed over a
year.

There are two ways in which basic wages can be determined. Namely

i. Time Wage System

ii. Piece Wage System
i. Time Wage System

Under this system, the wages are paid on the basis of time spent on the job
irrespective of the amount of work done.. This is the oldest and the most common
system and the wages are based on a certain period of time during the course of work.
The unit of time may be an hour, a day, a week, a fortnight or a month and the wage

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rate will depend upon the period of time. Such wages are paid after the time fixed for
work is completed irrespective of the output or the completion of the work.

ii. Piece Wage System

This system is based on the productivity or output of workers. A

predetermined rate is paid for each completed unit of output irrespective of the time
taken. It is also known as straight piece rate systems as the rate per unit remains the
same irrespective of the number of units produced. The piece wage system guarantees
reward efficiency on the one hand, time wage system guarantees minimum wages,
not rewards efficiency on the other. So a system is often should be so devised that
guarantees minimum wage and rewards efficiency.

Dearness Allowance

Dearness allowance also known as cost of living adjustments was used for the
first time after World War I to enable the workers to meet the steep rise in prices of
essential commodities such as food stuffs. Also called as Cost of Living Allowance
(in section 3 of minimum wages Act), the special allowance thus paid aimed at
neutralizing the increasing cost of living due to inflation and thus protect the real
wages of the wage earners.

Bonus

Bonus is defined as “an allowance in addition to what is usual , current or

stipulated; sum given or paid beyond what is legally required to be paid to the
recipient; something given in addition to what is ordinarily received by or strictly due
to the recipient”. Thus, bonus may be a boon, a gift or a gratuitous allowance
described as an ex-gratia payment. The word „bonus‟ is also sometimes used to denote
an incentive payment to the workers aimed at enhancing their efficiency and loyalty
to their organization. In India, the bonus component of the industrial wage structure,
though a quite old one has now assumed a statutory status with the enactment of the
Payment of Bonus Act, 1965. The Act is applicable to factories and other
establishments employing 20 or more employees. Under the Act, a minimum statutory
bonus at the rate of 8.33 per cent of the wages earned by an employee is guaranteed,
irrespective of the profit or loss by the firms during an accounting year.

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Fringe Benefits or Perquisites

The idea of Welfare State has given birth to the concept of fringe benefits
associated with a job. In a wider sense, fringe benefits include all expenditure by the
employer on labour other than basic wage and in a narrow sense; it includes those
benefits which the employee can convert into cash. These have been variously
expressed as „wage supplements‟ „sub wages‟, or „social charges‟. The compensation
that the workers receive for their contribution in the industrial activity cannot be
measured by the mere estimation of wages paid to them. Certain supplementary
benefits and services known as “fringe benefits” are also provided to them. Some
examples of fringe benefits are:

 Medical and maternity benefits.

 Educational and recreational facilities.
 Payments for time not worked such as vacations, holidays, sick leave,
maternity leave, travel allowance, etc.
 Pension, provident fund, life insurance, gratuity.
 Housing benefits
 Compensatory city allowance.

Several new fringe benefits or fringes have been initiated by industrial giants
particularly for the executives. Such benefits are referred to as „Perquisites‟ or „perks‟.
Perks include chauffeur driven car, corporate aircraft, and company apartment, home
security, club membership, paternity leave, self defense training, company credit card,
etc.

2. TRAINING AND DEVELOPMENT

Training is a program that helps employees learn specific knowledge or skills

to improve performance in their current roles. Development is more expansive and
focuses on employee growth and future performance, rather than an immediate job
role. Training and development is a subsystem of an organization and core function of
human resource management. It ensures continuous skill development of employees
working in organization and habituates process of learning for developing knowledge
to work. Training and development is the foundation for obtaining quality output from

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employees. Training and development is a structured program with different methods
designed by professionals in particular job. It has become most common and
continuous task in any organization for updating skills and knowledge of employees
in accordance with changing environment. Optimization of cost with available
resources has become pressing need for every organization which will be possible
only by way of improving efficiency and productivity of employees, possible only by
way of providing proper employee training and development conditioned to that it
should be provided by professionals12.

One way many organizations have chosen to hang on to their top talent is by
re-investing in their human capital, the specialized knowledge, skills, and abilities of a
company‟s workforce. After making the initial investment of hiring these employees,
companies are new looking to provide their workforce with the tools needed to grow
and develop as contributors to the growth of the company. Companies have found that
investment in their human capital in the form of training and development yields high
returns. A knowledgeable workforce may ensure a company‟s survival. Many
employers are choosing to empower their employees and are creating learning
organizations. Employers are communicating the expectation for continuous learning
within their employee-base. They offer work time support for learning, and make
online learning and reading a part of every employee‟s regular day-to-day job duties.
Employers are utilizing outside training resources and are sending employees off-side
for training. Many provide college tuition reimbursement and pay for professional
association memberships to further employee engagement in the company‟s
commitment to learning13.

Employee Training and Development Methods

Some methods of employee development occur on the job, with the manager
or an experienced co-worker leading the development activity in the context of the
actual work environment, other development occurs at training facilities or other
locations. And increasingly organizations use online methods to develop employees.
The major training and development programs are as follows14:

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Coaching

Coaching involves a more experienced or skilled individual providing an

employee with advice and guidance intended to help him or her gain new skills
improve performance and enhance the quality of his or her career. The hallmarks of
coaching are that it is personalized and customized, that it has a specific business
objective, and that it is usually accomplished one-on-one over a period of time.
Coaching should be approached like any other strategic goal. Successful execution
requires commitment from the organization and the person being coached, a plan to
obtain results, qualified coaches, and a follow-up evaluation.

Mentoring

Mentoring matches less experienced employees with more experienced

colleagues through formal or informal programs. Formal mentoring programs can
reduce turnover, enhance recruitment, and improve performance and the work
environment, especially for women and people of colour. Effective mentoring
programs do the following:

 Match mentors and mentees based on skills and development needs.

 Outline and track goals.
 Designate minimum time commitments.
 Monitor the mentoring relationship.
 Hold both parties accountable.
 Link mentoring to talent management strategy and goals.
 Link mentoring to business strategy and goals.

Individual development plans

To accelerate the pace of employee learning, organizations may use an

individual development plan (IDP). This document details an employee's intentions
and learning outcomes as well as support necessary to meet his or her tangible growth
goals. Beneficial IDPs reflect adult learning strategies, experiential learning and
symbolic interaction.

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The 9-Box Grid

The 9-box grid is an individual employee assessment tool that evaluates the
employee's current and potential levels of contribution to the organization. The grid is
most commonly used in succession planning as a method of evaluating an
organization's talent pool and identifying potential leaders. For performance appraisal
purposes, the 9-box grid provides a visual reference that can include appraisal and
assessment data to allow managers to view employees' actual and potential
performance. With information from the grid, managers and HR can design IDPs.

Cross-training

Cross-training refers to training employees to perform job duties other than

those normally assigned. Cross-training can be a short-term or ad hoc fix, or it can be
an on-going, planned process. Cross-training usually does not result in immediate
advancement, but it does indicate that an employee is interested in learning new skills.
This skill diversity may help him or her meet qualifications for future career
advancement. Employers find value in cross-training because it is usually more
efficient than bringing in new hires. Many managers take those efficiencies to the next
level by leveraging technology to improve cross-training efforts. Many employees
appreciate cross-training because it allows them to broaden their skills. All cross-
training should begin with two basic steps: 1) identifying the knowledge and skills
needed for each position and 2) cross-referencing that list of knowledge and skills
with an inventory of current employees' proficiencies. These steps reveal gaps
between employees' current skills and those the organization needs. Technology
makes it easy to gather and analyse such information.

"Stretch" assignments

On-the-job training projects and "stretch assignments" give employees a

chance to learn while doing real work. Developmental assignments allow employees
to develop new skills, knowledge and competencies necessary for higher-level
positions. Getting to the next level in business often means having the right
experiences. Yet many workers do not know what experiences best prepare them for
upward mobility. Experts say that people who have experiences characterized as
"accelerators" of potential will be more likely to succeed. Research has shown, for

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example, that first-level leaders are more likely to succeed if they have had cross-
functional experiences, midlevel leaders are more likely to succeed if they have had
experiences handling tough challenges (e.g., a difficult employee situation), and new
executive leaders are more likely to succeed if they have had high-risk and high-
visibility experiences.

Job enlargement and job enrichment

Job enlargement involves expanding the employee's job by adding more tasks
and duties, typically at the same level of complexity. Job enrichment builds more
depth to an employee's job through more control, responsibility and discretion.
Organizations often redesign jobs to increase employee motivation; however, when
jobs are enlarged but not enriched, motivational benefits are unlikely. Although the
distinction between job enlargement and enrichment is fairly straightforward,
employees may not correctly perceive the changes as enrichment or as enlargement.

Job shadowing

Job shadowing requires more than just having an employee follow a colleague
around all day. Shadowers view the organization from a different perspective and
learn first-hand about the challenges facing workers in other departments. This
perspective helps employees realize the impact their decisions have on other groups.

Job rotation

Job rotation is the systematic movement of employees from job to job within
an organization. Rotation programs may vary in size and formality. Though larger
employers are more likely to invest in a formalized job rotation program,
organizations of all sizes might consider implementing a job rotation program.
Typically, formal rotation programs offer customized assignments to promising
employees to give them a view of the entire business. Assignments usually run for a
year or more. Many reasons exist for implementing a job rotation system, including
the potential for increased product quality, giving employees the opportunity to
explore alternative career paths, and perhaps most importantly, preventing stagnation
and boredom. Possible downsides include increased workload and decreased
productivity for the employee, temporary disruption of work flow, line managers'

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possible reluctance to allow high-performing employees to participate in job rotation
programs, and the costs associated with the learning curve on new jobs.

Succession planning

Succession planning identifies long range needs and cultivates internal talent
to meet those needs. Succession plans typically focus on a one to three year process of
preparing employees not preselecting them for new roles in the organization. Many
business leaders and HR practitioners believe that succession planning is a complex
process, restricted to the largest organizations with the most
sophisticated organizational development departments. However, succession planning
can also benefit smaller organizations with fewer resources.

3. MOTIVATION

Employee motivation is the level of energy, commitment, and creativity that a

company's workers bring to their jobs. Whether the economy is growing or shrinking,
finding ways to motivate employees is always a management concern. Motivation is
necessary for work performance because, if people do not feel inclined to engage
themselves in work behavior, they will not put in necessary efforts to perform well.
However, performance of individual in the organization depends on variety of factors
besides motivation. It is therefore desirable to identify various factors. For instance,
employees‟ knowledge and skills are important performance drivers. Another factor is
the company‟s ability to retain its employees with attractive benefit packages.
Motivation is a prominent tool to retain employees with greater compensation
packages15.

Motivation plays an important role in employee satisfaction and eventually

employee retention. Nothing works better than motivation. Motivation acts as a
catalyst to an individual‟s success. The team leaders and the managers must
constantly motivate the employees to extract the best out of them. If an employee has
performed exceptionally well, do appreciate him. Simple works like “Well done”,
“Bravo”, “Good”, “Keep it up” actually go a long way in motivating employees. The
top performers must be in the limelight. The employees must feel indispensable for
the organization. It is essential for the employees to be loyal towards their
organization to deliver their level best16.

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Motivation Techniques

Increasing motivation in workplace can help to improve performance, raise

morale and boost productivity. While different motivators work for different types of
employees, there are several common techniques for getting employees excited and
energized for their jobs17.

Financial/Incentives Techniques of Motivation:

Financial techniques refer to monetary rewards. Incentives are nothing but the
inducements provided to employees in order to motivate them. There should be direct
relationship between efforts and rewards, financial reward should be substantial in
value and must be in parity with others. Under -paying staff sends the message that
firm doesn‟t value their work. Money is not a prime motivator but this should not be
regarded as a signal to reward employees poorly or unfairly. The financial incentives
include:

Pay and Allowances: It includes basic pay, grade pay, and dearness allowance;
travelling allowance, pay increments, etc. Good pay and allowances help the
organization to retain and attract capable persons. However, good pay and allowances
need not motivate all the people, especially who are enjoying security of job in
government organizations and those for whom corruption is a way of life. Some of the
other issues are associated with bad attitudes, grievances, absenteeism, turnover, poor
organizational citizenship, and adverse effect on employees‟ mental and physical
health.

Incentive Pay: Incentive pay plans are meant to increase output, which can be
measured quantitatively. For incentive plan targets, the employees must have
confidence that they can achieve the targets.

Gain Sharing: It is a reward system in which team members earn bonus for
increasing productivity or reduce wastages. To illustrate, if the wastage is reduced
from 5% to less the benefits may be shared equally with the team.

Profit Sharing: It means sharing of profits with the employees by way of distribution
of bonus. Profit sharing plan has its shortcomings – one, that it has become a regular

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feature in government departments irrespective of performance and two, it may have
no relation with individual efforts.

Stock Options: Many companies use employee stock options plans to compensate,
retain, and attract employees. These plans are contracts between a company and its
employees that give employees the right to buy a specific number of the company‟s
shares at a fixed price within a certain period of time. Employees who are granted
stock options hope to profit by exercising their options at a higher price than when
they were granted. In India, stock options have primarily been used as a retention tool
for a more selective group of employees.

Retirement Benefits: It includes the accumulated provident fund, gratuity, leave

encashment and pension. The provision of terminal benefits provides assurance to
employees during the service for their future.

Non-financial Incentives/Techniques:

Non-financial incentives do not involve money payments. These are also

important in motivating employees as they bring in psychological and emotional
satisfaction to them. These include so many techniques. People do work for money-
but they work even more for meaning in their lives. In fact, they work to have fun.
Some of the important non-financial incentives include:

Job security: Nothing can motivate a worker, appointed temporarily, better than
provision of job security. Even if a temporary worker puts in greater efforts, lack of
job security will always pose a threat. If such a worker is given job security, he will
be more committed to the organization.

Challenging work: Workers, who are dynamic in nature, do not show preference for
routine jobs. They are always ready to accept challenging assignments, challenge can
be brought through mentoring, job redesigning – job enlargement and job enrichment.
Understand the capabilities of every individual in the organization and accordingly
assign him work.

Recognition: It is important that the employer recognizes hard work. Even a word of
appreciation from him would motivate the employees to maintain the same level of

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performance or do even better. Employees ranked a personal „thank you‟ as the most
sought after form of recognition, followed by a handwritten note of appreciation from
the boss.

Opportunities for Advancement: There should never be a stagnation point for any
employee during the prime time of his career. The employer must always provide
opportunities for his employees to perform well and move up in the hierarchy.

Competition: The management can encourage healthy competition among the

employees. This would, certainly, motivate them to prove their capabilities. The
management can also rank the employees according to performance. Such of those
employees who have performed very well may be given merit certificates.

Job Rotation: By job rotation we mean that the employees will be exposed to
different kinds of job. This certainly would break the monotony of employees. For
example, in a bank an employee may work in the Savings Bank Section for some time
after which he may be posted to the cash section. Such a change not only motivates
the employees to perform well but also prepares him to be versatile.

Encourage the use of humor and creativity: Incorporating humor into the
workplace can alleviate stress and create a more positive environment for everyone.
Strategies to enhance humour include having a daily cartoon or joke sent to all staff
via e-mail, encouraging laughter, finding fun in events that did not turn out as planned
or expected etc.

4. WELFARE AND SOCIAL SECURITY MEASURES

Welfare and social security measures include anything that is done for the
comfort and improvement of employees and is provided over and above the wages.
Welfare helps in keeping the morale and motivation of the employees high so as to
retain the employees for longer duration. The welfare measures need not be in
monetary terms only but in any kind/forms. Employee welfare includes monitoring of
working conditions, creation of industrial harmony through infrastructure for health,
industrial relations and insurance against disease, accident and unemployment for the
workers and their families. The Social Security program's benefits include retirement

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income, disability income, Medicare and Medicaid, and death and survivorship
benefits18.

Welfare Measures

Organizations provide welfare facilities to their employees to keep their

motivation levels high. The employee welfare schemes can be classified into two
categories viz. statutory and non-statutory welfare schemes. The statutory schemes are
those schemes that are compulsory to provide by an organization as compliance to the
laws governing employee health and safety. These include provisions provided in
industrial acts like Factories Act 1948, Dock Workers Act (safety, health and welfare)
1986, Mines Act 1962. The non-statutory schemes differ from organization to
organization and from industry to industry19.

Statuary Welfare Benefits

The statutory welfare benefits schemes include the following provisions:

i. Drinking Water: At all the working places safe hygienic drinking water
should be provided.
ii. Facilities for sitting: In every organization, especially factories, suitable
seating arrangements are to be provided.
iii. First aid appliances: First aid appliances are to be provided and should be
readily assessable so that in case of any minor accident initial medication can
be provided to the needed employee.
iv. Latrines and Urinals: A sufficient number of latrines and urinals are to be
provided in the office and factory premises and are also to be maintained in a
neat and clean condition.
v. Canteen facilities: Cafeteria or canteens are to be provided by the employer
so as to provide hygienic and nutritious food to the employees.
vi. Spittoons: In every work place, such as ware houses, store places, in the dock
area and office premises spittoons are to be provided in convenient places and
same are to be maintained in a hygienic condition.
vii. Lighting: Proper and sufficient lights are to be provided for employees so that
they can work safely during the night shifts.

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viii. Washing places: Adequate washing places such as bathrooms, wash basins
with tap and tap on the stand pipe are provided in the port area in the vicinity
of the work places.
ix. Changing rooms: Adequate changing rooms are to be provided for workers to
change their cloth in the factory area and office premises. Adequate lockers
are also provided to the workers to keep their clothes and belongings.
x. Rest rooms: Adequate numbers of restrooms are provided to the workers with
provisions of water supply, wash basins, toilets, bathrooms, etc.
xi. Maternity & Adoption Leave – Employees can avail maternity or adoption
leaves. Paternity leave policies have also been introduced by various
companies.
xii. Medi-claim Insurance Scheme: This insurance scheme provides adequate
insurance coverage of employees for expenses related to hospitalization due to
illness, disease or injury or pregnancy.

Non Statutory Benefits

Many non-statutory welfare benefits may include the following schemes:

i. Personal Health Care (Regular medical check-ups): Some of the
companies provide the facility for extensive health check-up
ii. Flexi-time: The main objective of the flex time policy is to provide
opportunity to employees to work with flexible working schedules. Flexible
work schedules are initiated by employees and approved by management to
meet business commitments while supporting employee personal life needs
iii. Employee Assistance Programs: Various assistant programs are arranged
like external counselling service so that employees or members of their
immediate family can get counselling on various matters.
iv. Employee Referral Scheme: In several companies employee referral scheme
is implemented to encourage employees to refer friends and relatives for
employment in the organization.

Social Security Measures

Social security is any government system that provides monetary assistance to

people with an inadequate or no income. Social security may also refer to the action

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programs of organization intended to promote the welfare of the population through
assistance measures guaranteeing access to sufficient resources for food and shelter
and to promote health and well-being for the population at large and potentially
vulnerable segments such as children, the elderly, the sick and the unemployed.
Social Security means the security provided by the society to the needy citizens on the
principles of human dignity and social justice. Social Security Programs are now
increasingly being accepted as useful and necessary instrumented for the protection
and stability of the labor force.

According to ILO “Social security is the protection which society provides for
its members through a series of public measures against the economic and social
distress resulting from sickness, maternity, employment injury, unemployment,
invalidity, old age and death. These measures are also of a great importance to a
country which is on the way of large scale industrialization as they improve
employee‟s morale by providing sense of security to them again various industrial
hazards.20”

Scope of Social Security

International Labor organization in its convention divided scope of social

security into nine components21.

Medical care: Social security under medical care covers pregnancy confinement and
its consequences and disease which lead to a morbid condition. “The need for pre-
natal and post-natal care was emphasized. It may include practitioner care, specialist
care, provision of essential pharmaceutical and hospitalization.”

Sickness Benefit: Sickness includes incapability to work resulting a loss of earning.

Under this benefit worker need not be paid for three days of suspension of earnings
and the payment of benefits may be limited to 26 weeks in a year.

Unemployment Benefit: Under the social security benefit cover the loss of earning
during a worker‟s unemployed period when he is capable and available for work but
remains unemployed because of lack of suitable employment. As per Act this benefit
may be limited to 13 weeks payment in year.

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Employment Injury Benefit: Under Employment Injury benefit proper medical care
and periodical payment are made to injured employee as per the legal provisions of
Worker‟s compensation Act. In these days industrial work is subject to different kind
of contingencies mishaps and occupational diseases which are covered under
employment injury benefit of social security. It may include (i) Morbid condition (ii)
Inability to work (iii) Due to Morbid condition may lead to suspension of earning (iv)
Total or partial loss of earning capacity. (v) Death of the bread earner in family.
Under this proper medical car and periodical payment are made to injured employee
as per the legal provisions of Worker‟s compensation Act.

Old Age Benefit: Old age benefits are applicable in India only in few states. Under
this benefit the quantum of payment depends upon on individuals working capacity
during the period before retirement. It further includes a certain amount beyond a
prescribed age and continues till one‟s death.

Maternity Benefit: There is complex maternity benefit Act 1961 which covers
benefit due to pregnancy. There is legal provision for medical including pre-natal
confident, post-natal care and also hospitalization if required. Fixed periodical
payment of three month before birth of the child and three month after birth of the
child will be provided.

Family Benefit: In case of death of the bread earner this cover responsibility for
maintenance of children during the entire period of children is provided.

Survivor’s benefit: It refers to the benefits to the affected family in form of

periodical payments to a family following the death of its bread earner and should
continue during the entire period of contingency.

Invalidism benefit: In fact this benefit continue till invalidism changes into old age
then old age benefit would become payable under this benefit as per ILO convention
“a periodical payment should cover the needs of workers who suffer from any
disability arising out of sickness or accident and who are unable to engage into any
gainful activity.”

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5. WORK LIFE BALANCE

Work-life balance refers to the level of prioritization between personal and

professional activities in an individual‟s life and the level to which activities related to
their job are present in the home. Work life balance is a method which helps
employees of an organization to balance their personal and professional lives. Work
life balance encourages employees to divide their time on the basis on priorities and
maintain a balance by devoting time to family, health, vacations etc. along with
making a career, business travel etc. It is an important concept in the world of
business as it helps to motivate the employees and increases their loyalty towards the
company22.

Working on a job for a company and making a career can be an extremely

time consuming duty for any employee. Employees are busy at their offices
throughout the day and sometimes even on weekends. This gives them very little time
to interact with their family. Because of high pressure of work, often family members
get neglected. Also, stressful jobs cause the health of employees to deteriorate. This is
where work life balance comes into the picture. Work life balance concept allows an
employee to maintain a fine balance in the time he or she gives to work as well as to
personal matters. By having a good balance, people can have a quality of work life.
This helps to increase productivity at workplace as the employee is relaxed about his
personal commitments. It also allows the employee to give quality time with family to
spend vacations, leisure time, work on his/her health etc. Hence work life balance is
extremely important for employees and increases their motivation to work for the
company23.

Tools for Organizations to Improve Work-Life Balance

The Mayo Clinic reports that the consequences of poor work-life balance
include fatigue, lost time with family and friends and heavier workloads. It is a
challenge to be successful at work and manage a happy, healthy home life. Employers
can help by providing effective tools to improve work-life balance and reduce work
stress for their employees24.

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Flexible Work Schedules

A flexible work schedule is one of the most-appreciated work-life balance

tools. Flex-time that allows employees to work evenings or weekends to complete a
40-hour work week, paid time for volunteering, summer hours with half-day Fridays,
four-day work weeks and work-sharing plans for two employees to complete one job
provide flexibility for employees to manage their personal lives and be successful at
work. Employees feel less stress about taking time for dentist appointments or when
their kids are home from school when their work schedules are flexible.

Work-Life Balance Policies

Work-life balance policies provide communication and documentation of a

company‟s work-life commitment and programs. Written and published policies that
define work-life expectations and programs create a culture that encourages
employees to manage stress, time and work and enables them to be more productive
and happy at work and home. Written policies also prompt managers and supervisors
to support work-life balance programs with their employees, improving working
relationships and environments.

Telecommuting

Allowing employees to work from home either full-time or part of the work
week is a work-life balance tool that cuts overhead and reduces or eliminates
employee commutes. It also allows employers to benefit from top employees who are
located far from the workplace.

Life Services

Life services are work-life tools that provide convenience and comfort to busy
employees. Benefits such as on-site day-care, concierge services for auto service, dry
cleaning and take-out dinner for late stays at the office, gym memberships and on-site
workout facilities allow employees to better manage their personal lives either at work
or on the way to and from work.

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6. JOB SATISFACTION

Job satisfaction or employee satisfaction has been defined in many different ways.
Some believe it is simply how content an individual is with his or her job, in other
words, whether or not they like the job or individual aspects or facets of jobs, such as
nature of work or supervision. Improving employee satisfaction and retention can be
as simple as opening lines of communication. Employee satisfaction is a reliable
predictor of employee retention. When employers engage in practices that support
good working relationships, employee satisfaction improves because workers tend to
believe the company is using their skills and appreciating their service and
commitment. In turn, higher job satisfaction generally results in higher levels of
employee retention. Job dissatisfaction or dissatisfaction with leadership is commonly
reported as the reason why many employees leave for other jobs. Employee
satisfaction means that workers are fully engaged in their tasks and feel that the
company appreciates their effort and diligence. While many employees leave for other
jobs in search of a bigger paycheck, the underlying reason for turnover in many cases
is dissatisfaction. Improving satisfaction can reduce turnover and helps to maintain a
stable and motivated workforce25.

Factors Affecting Job Satisfaction

An employee's overall satisfaction with his job is the result of a combination

of factors and financial compensation is only one of them. Management's role in
enhancing employees' job satisfaction is to make sure the work environment is
positive, morale is high and employees have the resources they need to accomplish
the tasks they have been assigned.

Working Conditions

Because employees spend so much time in their work environment each week,
it's important for companies to try to optimize working conditions. Such things as
providing spacious work areas rather than cramped ones, adequate lighting and
comfortable work stations contribute to favourable work conditions. Providing
productivity tools such as upgraded information technology to help employees
accomplish tasks more efficiently contributes to job satisfaction as well.

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Opportunity for Advancement

Employees are more satisfied with their current job if they see a path available
to move up the ranks in the company and be given more responsibility and along with
it higher compensation. Many companies encourage employees to acquire more
advanced skills that will lead to the chance of promotion. Companies often pay the
cost of tuition for employees taking university courses, for example. During an
employee's annual performance review, a supervisor should map out a path showing
her what she needs to accomplish and what new skills she needs to develop in order to
be on a track to advancement within the organization.

Workload and Stress Level

Dealing with a workload that is far too heavy and deadlines that are
impossible to reach can cause job satisfaction to erode for even the most dedicated
employee. Falling short of deadlines results in conflict between employees and
supervisors and raises the stress level of the workplace. Many times, this environment
is caused by ineffective management and poor planning. The office operates in a crisis
mode because supervisors don't allow enough time for employees to perform their
assigned tasks effectively or because staff levels are inadequate.

Respect from Co-Workers

Employees seek to be treated with respect by those they work with. Managers
need to step in and mediate conflicts before they escalate into more serious problems
requiring disciplinary action. Employees may need to be reminded what behaviours
are considered inappropriate when interacting with co-workers.

Relationship with Supervisors

Effective managers know their employees need recognition and praise for their
efforts and accomplishments. Employees also need to know their supervisor's door is
always open for them to discuss any concerns they have that are affecting their ability
to do their jobs effectively and impeding their satisfaction at the office.

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Financial Rewards

Job satisfaction is impacted by an employee's views about the fairness of the

company wage scale as well as the current compensation she may be receiving.
Companies need to have a mechanism in place to evaluate employee performance and
provide salary increases to top performers. Opportunities to earn special incentives,
such as bonuses, extra paid time off or vacations, also bring excitement and higher job
satisfaction to the workplace.

7. MANAGER SUPPORT

An employee quits his job whenever he faces problems at the workplace and is
not satisfied with his work. The job must be challenging enough and the employees
should learn something new every day for them to stick to it for a long time. It is the
responsibility of the team leader to ensure that the team members are contented with
their work and share a good rapport amongst them. The team members must be
assigned responsibilities as per their specialization, qualification, interests as well as
experience. The team members must find their jib interesting for them to enjoy and
work hard to achieve the organizational goals. The KRAs must be formulated in the
presence of the employees. Let them decide what best they can perform. Problems
crop up whenever there is mismatch or the employees have to do something out of
compulsion. Don‟t compel anyone to do something. Let them accept the
responsibilities willingly. A wrong profile is one of the several reasons as to why an
employee looks for a change. An overburdened worker never finds his job interesting
and would always be eager for a change. It is the duty of the team leader to distribute
the work equally among all the employees. The manager should not be partial to
anyone and treat all his members as one. He should not let negatively creep in the
team. The supervisors must have a control on their subordinates and make sure they
do not find fight with each other. Nothing productive comes of disputes; rather it de-
motivates the individual and prompts them to look for some other opportunity26.

Rules and regulations should be same for everyone. Avoid granting special
favors to anyone. One should never fear his boss. Hitler approach does not work in
the current scenario. A team leader should be a role model for his team. The team
managers should not be arrogant and avoid misuse of their position. He should let all

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the team members participate in the decision making process. Every employee should
have the freedom of expression and no one should be left out or neglected. The team
leader should trust and respect his team members to expect the same from them. The
team leader should be accessible to his team members. Employees feel de-motivated
when their queries remain unsolved and there is no body to listen to them. When the
team leader doesn‟t have time for his team, the employees crib among themselves and
wish to move on. The team leader must make sure to be with his team whenever
required. He should support his team members always. A little care is essential to
make them feel safe and secure. Minor problems left unattended can lead to severe
stress later, forcing employees to look for a change.

The supervisors must maintain transparency in communication. Every team

member should get the same information from their boss for them to remain satisfied
and loyal towards the organization. The team leader must appreciate those who
perform well. Give them a pat on their back. The hard work of the team members
should never go unnoticed. The top performers must be given a special treatment to
motivate them further and expect the same from them every time. The employees who
have not performed well should also be asked to buck up the next time. It is the
responsibility of the team leader to bind his team together. Take the team out for
lunch one in a while from them to come closer to each other. Every individual expects
peace at the workplace and looks for a change only when there is unnecessary stress
at work. The team leader must promote healthy competition at the workplace. A team
leader should mentor his team well. Employees are reluctant to go for a change when
they have a good boss. The following tips will help to improve leadership skills and
relationships with subordinates and get stronger supports from them27.

Be Fair to Everyone: Treat each subordinate / staff fairly and respectfully. Some
people are by nature more likable than others, but as a supervisor, have to avoid even
the slightest hint of favouritism; be fair to everyone and have to be flexible in
leadership style for each subordinate.

Develop Everyone: Everyone is unique. Each subordinate has his / her own strengths
and weaknesses. So, work on developing the abilities or the potentials of every
employee. Don't overlook the need to provide any necessary resources and training
needed by the employees to do the jobs. By doing so, they will perceive that manager

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care for their well-being. In return, they will be more respectful to the manager and
hence, work better.

Know and Like Subordinates: Learn the individual strengths and weaknesses of the
people. This will aid in assigning tasks on the basis of skills rather than at random. It
will make them feel good to work.

Show Continuing Interest in Subordinates: Show continuing concern in

subordinates by providing feedback on their performance regularly - not just at
performance evaluation time. Be honest whether they are doing well or bad. This
means, giving praise when it deserved - not when it isn't.

Criticize with Care: Be diplomatic whenever criticize any aspect of an employee's

performance. Never jump to any judgment or conclusion without thinking first the
consequences of critics. So, be tactful to subordinates at all the time. They will surely
appreciate for being a considerate and diplomatic leader / manager / supervisor.

Be Flexible: Be flexible in dealing with employee's concerns. Going strictly by set

procedures won't always give the flexibility needed to resolve individual performance.
So, always use good common sense.

Give Simple Directions: Give simple, but specific job directions at any time, assign a
new task to a worker. Make things not so difficult in the eyes of subordinates even if
it is in actuality a challenging task. This will make them feel good and confident
doing the jobs assigned to them.

Defend Subordinates: Defend subordinates against unfair criticisms; be with them.

Make them think and feel that they have a reasonable or supportive leader / manager /
supervisor.

Be a Coach - Not a General: Be loyal to subordinates as well as to the company /

organization / employer. Include subordinates in the decision-making process
whenever feasible. Also show leadership qualities by working to obtain promotions,
pay raises, and awards for deserving employees.

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8. WORKING CONDITIONS

Working conditions covers areas such as welfare facilities, ventilation,

cleanliness, space, lighting and temperature. The employer must ensure that
workplace comply with the Workplace Health, Safety and Welfare Regulations.
Working conditions are affected by factors including health and safety, security and
working hours. Poor working conditions can damage employee health and put their
safety at risk. If the employees are satisfied and happy with their job and working
conditions then they will give their best for the improvement of an organization. Happy
and satisfied employees always put more efforts for the organizational achievements
and stay loyal to the company. Less satisfying working conditions can in turn lead to
turnover or turnover intentions. Positive work environments are essential for workers'
mental and physical well-being, but they aren't created by accident. Good working
conditions arise from values that the company views as important to its mission, such
as ensuring a manageable workload, and promoting two-way communication through
open office spaces and regular team meetings. In order to increase efficiency,
effectiveness, productivity and job commitment of employees, the business must
satisfy the needs of its employees by providing good working conditions. Employers
and controllers of non-domestic premises have a general duty to make sure that the
workplace meets certain conditions as such as28:

Maintenance: make sure the workplace, equipment, devices and systems are
maintained, in working order and in good repair.
Ventilation: make sure enclosed workplaces are ventilated and have enough fresh
and purified air.
Temperature: maintain a reasonable temperature inside building during working
hours. Enough thermometers must be provided.
Lighting: must be suitable and efficient and natural so far is reasonably practical.
Emergency lighting must be provided where lighting failure would cause danger.
Cleanliness: keep workplaces and furnishings clean. Waste materials must not
accumulate, except in suitable containers.
Space: make sure workrooms have enough floor area, height and unoccupied space.
Workstations: must be suitable for the worker and work. A suitable seat must be
provided where necessary.

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Floors: must be suitable and not uneven or slippery, presenting a safety risk. They
must be kept free from obstructions likely to cause a slip, trip or fall. Handrails must
be provided on staircases, except where they would obstruct traffic.
Falls: take suitable and sufficient measures to prevent people falling or being struck
by falling objects. Tanks must be securely covered and fenced where there is a risk of
a person falling into a dangerous substance.
Windows: make sure that windows, and transparent and translucent surfaces, consist
of safe material, are clearly marked, and safe when open.
Traffic: organise workplaces to allow safe traffic circulation by pedestrians and
vehicles.
Doors: make sure doors and gates are suitably constructed and comply with certain
specifications.
Escalators: make sure escalators function safely, are equipped with necessary safety
devices and are fitted with easily identifiable and readily accessible emergency stop
controls.
Toilets: provide suitable and sufficient sanitary conveniences at readily accessible
places.
Washing: provide suitable and sufficient washing facilities at readily accessible
places
Water: provide an adequate supply of wholesome drinking water and cups, readily
accessible and conspicuously marked.
Clothing: provide suitable and sufficient accommodation for clothing, as well as
changing facilities where special clothing is worn.
Restrooms: provide suitable and sufficient rest facilities at readily accessible places.
Rest rooms and areas must include suitable arrangements to protect non-smokers from
discomfort. Suitable facilities must be provided for pregnant or nursing workers to
rest and for workers to eat meals.

9. EMPLOYEE RELATIONS

The term employee relations refer to a company's efforts to manage

relationships between employers and employees. An organization with a good
employee relations program provides fair and consistent treatment to all employees so
they will be committed to their jobs and loyal to the company. Company culture,

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relationship with reporting manager and internal communication plays very important
role in employee retention. Employee relations within business can positively or
negatively affect recruitment and retention efforts of the organization in multiple
ways. Maintaining a strong employer and employee relationship can be the key to the
ultimate success of an organization, the results are advantageous. It is known that if a
strong relationship is in place employees will be more productive, more efficient,
create less conflict and will be more loyal. Strong employment relations create a
pleasant atmosphere within the work environment; it increases the employee
motivation and can also be increased through improved employee morale. Creating
the productive and pleasant work environment has a drastic effect on an employee‟s
loyalty to the business, it encourages a loyal workforce. Having such a workforce
improves employee retention, in doing so the cost of recruitment, hiring and training
is cut drastically. For most businesses the high cost of employee turnover outweighs
the cost of the employee relations program that they have in place. Another benefit is
that when the employee turnover is low it ensures that the employer has a trained and
skilled set of employees29.

Ways to Improve Employee Relations

Establishing and maintaining good work relationships is the key to a positive

workplace. Effective businesses encourage the development of positive relationships
between managers and employees as well as amongst coworkers. All businesses can
foster positive workplace relationships by creating a strong mission statement and an
upbeat team-based environment. Strengthen workplace relationships by setting clear
expectations, practicing constant communication and offering timely responses to
both positive workplace behavior and employee issues or concerns.

 Create a clear and concise company mission statement and distribute a copy of
the statement to each employee. The mission statement should outline the
purpose of the business. Discuss how the mission statement fits with employees'
personal values and roles in the company. Hold regular staff meetings to
highlight recent company activities as well as discuss how employees are
working toward or upholding the business's mission.

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  Encourage teamwork through formal and informal team-building activities.
Arrange a company-oriented outing, such as bowling or mini-golf, or involve the
office in a team-based charitable activity. Good relationships in the workplace
thrive when individuals feel part of a team and comfortable with their
teammates. Respect and trust amongst co-workers and between supervisors and
staff leads to greater collaboration, innovation and efficiency in the workplace.

 Communicate group expectations immediately and regularly. Set high

performance expectations and emphasize the importance of each employee's role
to the success of the business. Coach Managers on maintaining good
relationships with their staff. Emphasize the need for two-way communication,
clear and precise instructions, and the need for individuals to feel respected as
both individuals and crucial contributors to the final service or product of the
company.

 Set clear and measurable goals for individual staff members. Employees must
know what to do, how to do it, how well the task must be done and where to turn
for help. To that end, provide detailed job descriptions and offer training with
feedback from supervisors. Additionally, employees must clearly understand
what constitutes satisfactory work and exactly how their performance will be
measured.

 Reward great work as quickly as possible, and address problems or concerns

immediately. Acknowledge staff members publicly with written or verbal
commendations when they exceed performance expectations and provide
assistance to those who are failing. Model the behaviour of creating good
workplace relationships by actively seeking opportunities to offer assistance that
will help co-workers or support staff do their jobs better.

10. STRESS FREE WORK ENVIRONMENT

Work place stress comes in many forms and is but inevitable. No one has ever
succeeded fully evading it in his life time. It‟s actually normal to feel work pressure
every once I a while, but when one is chronologically stressed, it has to be addressed
shortly. Stress is simply a fact of life in the modern workplace. Virtually every

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business owner and employee, regardless of the size of the enterprise, must deal with
the impact of stress in the workplace. The negative impacts of workplace stress are
many and varied: increased employee absenteeism and turnover, higher insurance and
workers‟ compensation costs, lower employee productivity, and lower sales and
profits, to name just a few. Here are few tips to reduce the level of stress on
employees and in workplace in general30:

1. Create an environment of open and honest communication: Poor

communication with management is one of the primary causes of stress among
employees. Don‟t let them just wonder about the direction of the company or
the security of their jobs; share with them openly and honestly both the good
news and the bad.

2. Empower employees: A lack of empowerment is another main cause of

workplace stress. As much as is feasible, allow employees to make critical
decisions and direct the outcome of their jobs.

3. Adopt flex time and other flexible work schedule arrangements: Most
employees today lead hectic lives outside of the workplace. Allowing them to
alter their work schedules in ways that are more conducive to their personal and
family lives can be a huge stress reducer and also engenders a tremendous
amount of loyalty and goodwill among employees.

4. Reward and praise outstanding performance: Don‟t hesitate to recognize

employees for a job well done. Verbal praise often carries even more weight
than financial rewards, though even modest monetary rewards such as movie
tickets or a free lunch can go a long way toward reducing stress.

5. Set the proper tone at the top: Employees often feed off of the attitudes they
sense from ownership and management. Try not to let own personal stress show
through and filter down to the rank and file.

6. Establish a zero-tolerance policy on harassment and discrimination: Make

it crystal clear to all employees that these will not be tolerated in workplace
under any circumstances.

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 7. Encourage healthy social interaction: “The workplace that plays together
stays together.” While manager can‟t force employees to socialize together, try
to create environments that make it easy if they want to, whether its picnics,
holiday parties, or other planned social events outside the workplace.

8. Provide opportunities for career development: Not seeing opportunities for

career advancement and development can be demoralizing and demotivating,
ultimately leading to increased employee stress.

9. Offer stress management training and education: Many companies offer

classes and instruction on a variety of different stress management techniques,
including meditation, proper exercise, muscle relaxation, conflict resolution,
assertiveness, and even massage therapy.

10. Try to control the pace and volume of work: A fast-paced, high-volume
work environment will likely lead to increased employee stress. While
controlling the pace of work isn‟t always possible, try to limit the duration of
high-stress periods, and let employees know that a reprieve is on the way. If
manager knows that the upcoming month will be especially busy, for example,
let employees know in advance and tell them when things should slow down so
they can see the light at the end of the tunnel.

QUALITIES IN AN ORGANIZATION FOR BETTER EMPLOYEE RETENTION

Every individual expects peace and healthy working conditions to deliver his
level best. A shady background and poor financial condition of the organization are
the major factors leading to unrest amongst the employees. No individual likes to
work with an organization running into losses. A sick unit is unable to pay salaries on
time making it difficult for the employees to work with it for a long time. An
organization must be financially stable for the employees to feel safe and secure.
Rules and regulations are formulated for the benefit of the employees and thus should
not be too rigid. An organization must have employee friendly policies for the
individuals to stay motivated. The management must take into consideration the
genuine problems of the employees to make the organization a better place to work.
Leave policies and compensation structure should be designed in a manner to satisfy

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the needs of the employees. The following are the qualities in an organization for
better employee retention31:

1. Monetary Satisfaction: Monetary satisfaction is one of the major reasons as to

why an employee sticks to an organization for a longer duration. Incentive plans,
perks and other benefits should meet the expectations of the employees and
should be directly proportional to the hard work put by the individuals. The high
potential employees should be rewarded suitably to make them feel
indispensable for the organization and to expect the same from them every time.
2. Simple Hierarchy and the Functional Areas: An organization must have a
simple hierarchy and the functional areas of each team should be well defined.
Complicated hierarchies lead to confusions and unnecessary disputes amongst
team members. It is essential to maintain transparency at all levels. The team
size should be restricted to 5 or 6 members for smooth flow of information and
better output. Every team ideally should have a single leader willingly chosen by
the team members to act as a strong support system for them. The superiors must
be accessible to the team members in case of queries and must monitor the
team‟s performance from time to time. The team leader should act as a role
model for his team.
3. Freedom of Expression: Freedom of expression is of utmost importance at the
workplace to retain employees. Individuals should have the liberty to express
their ideas and discuss issues on an open forum. These way employees do not
crib among themselves and come closer to each other.
4. Celebrate Major Festivals at the Office Premises: The organization must
encourage employees to celebrate major festivals at the office premises itself.
Ask them to bring their families as well. Such activities go a long way in
strengthening the bond among the individuals and retaining them.
5. Stringent Policies: It is important for the organization to have stringent policies
for non performing employees. Strict action must be taken against those who
come to organization just for fun and are just not bothered about their own work.
The performers must get an extra edge and should be entitled to exclusive
benefits.
6. Positive Ambience: An organization must offer a positive ambience to its
employees to expect a consistent performance from them. The workplace should

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 be free from all sorts of disputes, nasty politics, and controversies and blame
games which go a long way in de-motivating an employee and prompting him to
look for a change. Healthy competition is essential at the workplace to encourage
the employees to perform up to the mark every time.

ROLE OF HRM IN EMPLOYEE RETENTION

An organization can‟t survive if the top performers quit. It needs employees

who are loyal and work hard with full dedication to achieve the organization‟s
objective. It is essential for the management to retain its valuable employees who
think in favor of the organization and contribute their level best. An employee who
spends a longer duration at any particular organization is familiar with the rules,
guidelines and policies of the organization and thus can adjust better. The human
resource team plays an important role in employee retention. Let us find out their role
in the same32:

 Whenever an employee resigns from his current assignments, it is the

responsibility of the HR to intervene immediately to find out the reasons which
prompted the employee to resign. No one leaves an organization without a
reason. There has to be one and the human resource team must probe into it.
There can be innumerable reasons for an employee to leave his current job. The
major ones being conflict with the superiors, lesser salary, lack of growth,
negative ambience and so on.
 It is the duty of the HR to sit with employee and discuss the various issues face
to face. Understand his problems and listen to his side of the story as well.
Remember the HR should not focus on conducting exit interviews, rather more
emphasis should be laid on retaining the employees.
 Try to provide a solution to employee problem. Hiring is a tedious process and
it is really very difficult to recruit the right candidate and retain him once again.
Do check the track record of the employee who wishes to move on. It is really
essential for the management to retain those employees who have the potential
and are really indispensible for the organization. If they leave and join the
competitors; the organization would be at loss. If one feels that the employee is
not very happy with his team leader, try to shift him to a new team. If the

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 employee feels his salary is not justified, try to give him a hike but make sure
he is worth it and don‟t end up upsetting others.
 The HR person must ensure that he is recruiting the right employee who
actually fits into the role. A right person doing the wrong job would never find
his job interesting and certainly look for a change. Make sure every individual
has been assigned responsibilities according to his specialization and interest.
The employees must be clear with their KRAs from the very beginning. Every
individual works for money and the HR must quote a justified salary
acceptable to the other person. Don‟t compel anyone to join at a lesser salary.
He might join at that moment but would most likely quit after sometime. The
hike should be on the present salary and must match the market trends and the
expectations of the individual.
 The human resource department must conduct motivational activities at the
workplace. Organize various internal as well external trainings which help the
employees to learn something extra apart from their routine work. Make them
participate in extracurricular activities important for their overall development.
Encourage them to interact with each other so that the comfort level increases.
 The HR must launch various incentive schemes for the top performers to
motivate them. This way the employees feel important for the organization and
strive hard to perform even better the next time. The employees who show
promise should be awarded with cash prizes, lucrative perks and certificates to
make the individual stand apart from the crowd. Send a mail wishing the
employees on their birthdays or congratulating them when they perform
exceptionally well or come out with something innovative. Arrange a small
bouquet for them as a gift from the organization‟s side. This way the
employees feel attached to the organization and are reluctant to look for a
change. A friendly atmosphere is essential for the employees to feel safe and
secure. Make them to participate in various management decision makings.
 Performance reviews are a must. The HR along with the respective team
leaders must monitor their team member‟s performance to ensure whether they
are enjoying the work or not. The employees look for a change only when their
job becomes monotonous and does not offer any growth or learning. Job
rotation can be one of the effective ways to retain employees. The HR

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 professional must try his level best to motivate the employees, make them feel
special in the organization so that they do not look for a change.

KEi’s EMPLOYEE RETENTION WHEEL

The first step to improve employee retention is to understand why employees

stay with their current employer. Many “experts” dwell on the reasons employees
leave, which is not as important or revealing as the reasons they stay. Companies have
tried many different programs and perks to hold onto good employees. However,
studies show that these efforts are not enough to retain good employees when the
support that is needed to achieve job success is adequate. Among the countless
inducements offered, only those identified in the center of KEi‟s employee retention
wheel are truly what give employees a consistent reason for saying “no thank you”
when tempted with a “sweeter offer”. After years of study and experience, Kei has
determined, and presented in the retention wheel, what factors do have the greatest
impact on keeping employees. KEi has used this information to give employers the
tools to meet the core needs that keep employees successful at their jobs, thus
reducing the high costs associated with unwanted employee turnover33.

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 Figure 4.1 KEi’s Employee Retention Wheel

Source: www.keepemployees.com

Using the Wheel to Improve Employee Retention

KEi‟s employee retention strategy is based upon two primary beliefs:

1. It is difficult for employers to retain good employees if they don‟t have a

process to hire the right people in the first place.
2. Retention processes must directly support the reasons that successful, satisfied
employees stay.

KEi‟s concentration on the center of the employee retention wheel provides

employers with internet based tools that give employees systematic, on-going support
to be successful in their work and satisfied with their employment.

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The Center of KEI’s Employee Retention Wheel: Eight Factors

Attitude for employing: A process to clearly define the way supervisors are expected
to interact with employees; a process to give employees a way to express what is most
important to achieve job success; and a process to give employers a way to
demonstrate “Employing Values” through employment policies. This “Employer
Mission Statement” is about how and whom to hire, how to treat them and the
organization‟s values as an employer. It is about making sure that the values for
employing are communicated to employees and consistently implemented throughout
organization. It is about the total employment package that goes beyond salary and
traditional benefits.

Finding candidates: It is a process that gives employers a comprehensive way to

communicate to job seekers what it takes to achieve short-term and long-term job
success, and to attract the candidates who fit these criteria.

Sorting applicants: It is a process that gives employers a way to confirm whether the
attitudes and behaviors of job seekers are a match for their work environment.

Choosing employees: It is a process that gives employers a way to define the specific
interview questions that prove job seeker abilities to successfully perform the target
skills; and a process that gives employers a way to verify the accuracy of
resume/application data and interview responses.

Starting employees: It is a process that provides a way for new employees before
performing the job to understand “why the employers business exists”, “what makes
the business organization successful”, “why the employee‟s job exists”, and “what it
will take for the employee to achieve job success”.

Informing employees: It is a process that gives employers a way to provide essential

information that is needed by employees to make daily work decisions.

Improving employees: A process that gives supervisors and employees a way to

work together to build personalized plans for improving each employee‟s priority job
skills; and a process that gives the employer a way to deliver skills improving training
curriculum and to measure the learning effectiveness from the training experiences.

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Rewarding employees: It is a process that gives employers a way to define and
communicate exactly how individual employee salaries are determined; and a process
that gives employers a way to provide employees with extra incentive income that is
earned through the achievement of cash generating business goals.

MYTHS ABOUT EMPLOYEE MORALE PREVENT COMPANIES FROM

ACHIEVING RETENTION SUCCESS

Despite years of research point to far different solutions, many companies use
the wrong tactics when trying to improve employee morale, satisfaction and retention.
These myths prevail, in part, because business have used these methods, however
wrong, for a long time and have become used to trying the same ideas34.

Myth 1: People most often leave a company for more pay

Exit interviews, conducted to learn why people leave an organization; contain

some of America‟s greatest fiction. People frequently say they‟re leaving for more
money because it‟s the easiest reason to give. More often the causes leading to
departure are related to issues that were unsatisfying in the job or the company.
Typical issues that cause dissatisfaction are company policies and procedures, quality
of supervision, working conditions, relationship with the immediate supervisor and
salary. Yes, pay does matter. While research shows most people don‟t actually leave a
job for more money, there are two important facts: very low income workers will
leave for more money because it‟s a survival issue. For the rest of workers, the issue
of money actually is about fairness. People become dissatisfied with pay when they
feel it is unfair within the company, within the industry or when pay doesn‟t seem to
match the amount or type of work required. To increase employee satisfaction and
retention, companies make more gains by working to improve whether people a sense
of achievement, recognition, competence and growth, whether there are choices about
how work gets done and whether employees feel respected by management.

Myth 2: Incentive programs produce long-term profits and improve productivity

and morale

So, who doesn‟t like free stuff? However, incentives such as gifts and cash
bonuses for meeting speed and volume goals don‟t affect employee commitment.

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They‟re really a throwback to outdated management beliefs that workers must be
coerced in order to work hard. All the extras don‟t add up to the real glue that creates
employee commitment; the chance to learn and grow, meaningful work, good
supervisors and respect and appreciation for a job well done. Incentives have been
over used particularly in the past decade, as management books touted the importance
of improving recognition of excellent work. Yet, studies show that carrot and stick
motivation actually does not pay off in long-term company profitability or employee
satisfaction or retention. To the contrary, incentives can harm quality when employees
aim for speed or other goals rather than quality.

Myth 3: People don’t want more responsibility

They don‟t more work if they‟re already overloaded due to lean staffing; but
people indeed want opportunity to grow and develop their skills, advance their careers
and have the opportunity for greater variety. Keep in mind what the research
confirms; people do want to try new things, to feel skillful and experience the
personal satisfaction of higher levels of achievement. People don‟t need a job
promotion in order to gain more responsibility. The same job can be broadened to
include more variety, more contact with different parts of the organization and greater
control over decisions on accomplishing work tasks.

Myth 4: Loyalty is dead

Not at all, though it is ailing in many organizations. People are seeking greater
work life balance than in the past, and employers have made great strides in providing
more flexible hours and dress codes. Still, people seek to make a contribution, and
organizations that provide healthy doses of the main satisfiers enjoy significantly
lower turnover and higher morale. Profits are higher, too, according to recent research
studies. Things have changed, indeed. Today‟s workers will, in fact, change careers
and jobs much more often. When the economy is good, people have become much
more at ease in changing companies, are more likely to acquire new skills and move
to companies that offer greater chance to use more of their knowledge and more
willing to take the risks of starting anew at another organization. What has emerged in
current management studies are that the same qualities that hold employees are the
ones that best serve the customers; employees who can make quick decisions on

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behalf of the customer and the company; employees who have a broader scope of
responsibility that allows them some freedom and leverage to solve customer
problems; learning opportunities that give employees the skillfulness to address
customer issues; and supportive management and supervisors who use any mistakes
that occur as teaching opportunities.

Myth 5: improving employee satisfaction is expensive

Research tells us the true satisfiers can‟t even bought; career growth,
meaningful work, respect and appreciation and being able to influence how work gets
done. In these leaner times employers have the same opportunity to gain true loyalty
despite lowered budgets. The trinkets and prizes given in recognition and rewards
programs aren‟t necessary ingredients for developing an engaged workforce. The
“glue” that holds people is made of much different stuff; management that listens and
responds to employees‟ ideas about improving service, supervisors who support
people‟s growth and initiative, training in how to do the job successfully, good
relationships with co-workers and genuine appreciation for a job done well. There are
no costs incurred to build or enhance these motivators.

Myth 6: Employee satisfaction is “Fluff”

Does having engaged workers make a difference in the bottom line? Studies
show that lower turnover and greater levels of employee satisfaction have a definite
positive impact on customer satisfaction and profitability, which are the key factors in
company growth and sustainability. Consider these facts:

 A strong link was found in a study by price water house coopers between
employee retention and the quality of service as rated by companies‟
customers.
 According to the American Society of Training and Development,
organizations that invested the most in training had higher gross margins and
income per employee.
 The cost of replacing an employee who leaves has been estimated by various
studies to be between 70 to 200 percent of the worker‟s annual salary.

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  The council on competitiveness found that a 10 percent increase in education
has a more positive impact on productivity than a 10 percent increase in work
hours.

Myth 7: Supervisors are the problem

Many senior leaders express dismay about the quality and actions of their
middle managers and front line supervisors. The “blame game” is old, yet the
solutions are strikingly to those required to build an engaged workforce. In most
organizations today, supervisors have more people reporting to them than in the past,
more demanding customers than ever and greater amounts of change, all occurring at
the same time. Yet, the amount of training provided to managers and supervisors in
many organizations is minimal. More importantly, the amount of time that senior
managers spend with middle and line managers is also minimal. Middle managers and
supervisors can appear resistant to improvement efforts. However, the failure exists in
our understanding of their world, the challenges they face and the support they need
in order to be successful. Successful organizations seek to build teamwork between
senior leaders and middle managers and line supervisors.

Myth 8: My company/industry/people are different

Yes, every company is unique, and every industry has its own set of unusual
challenges. However, a very costly mistake is made when we believe information
from other sectors doesn‟t apply to us or our organization. Retention research studies
cross all industries, all type of work settings and in varied economic conditions. Still,
the same results come up time and again. We build employee loyalty and indirectly
customer loyalty through providing people with growth and learning opportunities,
minimizing red tape, allowing people to think and make good choices, supporting
middle managers and frontline supervisors and appreciating the efforts that people
give to help our customers. It‟s downright dangerous to ignore these findings, risky to
the bottom line and the organization‟s future.

CHALLENGES IN EMPLOYEE RETENTION

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

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employees quitting the organization within no time to a great extent but can‟t put a
complete full stop. 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 who 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. A high potential employee is
always the center of attention at every workplace but one should not take any undue
advantage. One should understand the limitation of the management quote something
which matches the budget of the organization. An individual should not be adamant
on a particular figure, otherwise it becomes difficult for the organization to retain him.
Remember there is a room for negotiation everywhere35.

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
counseling helps in such cases and retaining employees becomes a nightmare.
Individuals speak all kinds 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
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

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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 management36.

Unrealistic expectations from the job also lead to employees looking for a
change. There is actually no solution to unrealistic expectations. 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. 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.

Employers understand that active steps are required to limit employee

turnover. Finding exceptional employees is one thing. Keeping them is another.
Today, employees are mobile, in a part due to the existence of appealing job
opportunities elsewhere. The availability of personal development opportunities also
contributes to job mobility. However, identifying, hiring and training employees are
an expensive process. As a result, it‟s important that small businesses provide
employees reasons to decline opportunities to shift from one job to another.
Sometimes, implementing small changes can ensure employees remain in place rather
than seek more competitive compensation packages, less work dissatisfaction or
greater opportunities for recognition and self-development.

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