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RESEARCH PROJECT ON TO STUDY THE RETENTION OF EMPLOYEES IN TELECOMMUNICATION INDUSTRY WITH SPECIAL REFERENCE TO

SUBMITTED IN PARTIAL FULFILLMENT OF DEGREE OF MASTERS OF BUSINESS ADMINISTRATION SESSION (2009-2011) PAPER CODE-(CP-402)

SUBMITTED TO: Ms. VISHU MEHNDIRATTA ASSISTANT PROFESSOR

SUBMITTED BY: RANJANA MBA 4th SEM University Roll No SUBMITTED TO

ICL INSTITUTE OF ENGINEERING AND TECHNOLOGY SOUNTLI (KURUKSHETRA UNIVERSITY, KURUKSHETRA)

ACKNOWLEDGEMENT Gratitude is the hardest of emotions to express and one often does not find adequate words to
convey what one feels and trying to express it The present project file is an amalgamated of various thoughts and experiences .The successful completion of this project report would have not been possible without the help and guidance of number of people and specially to my project guide .I take this opportunity to thank all those who have directly and indirectly inspired, directed and helped me towards successful completion of this project report.

I am also immensely indebted to my project guide, Ms VISHU MEHNDIRATTA Assistant Professor, ICL, for his illumining observation, encouraging suggestions and constructive criticisms, which have helped me in completing this research project successfully.

There are several other people who also deserve much more than a mere acknowledgement at their exemplary help. I also acknowledge with deep sense of gratitude and wholehearted help and cooperation intended to me by them.

RANJANA

PREFACE
Research Project is the bridge for a student that takes him from his theoretical knowledge world to practical industry world. The main purpose of it is to expose for industrial and business environment, which cannot be possible in the classroom. The advantages of this sort of integration, which promotes guided to corporate culture, functional, social and norms along with formal teaching are numerous.

1) To bridge the gap between theory and practical. 2) To install the feeling of belongingness and acceptance. 3) To help the student to develop the better understanding of the concept and questions already raised or to be raised subsequently during their research period. The present report gives a detailed view of the To Study the Retention of employees in Telecommunication Industry with Special Reference to UNINOR The research is definitely going to play an important role in developing an aptitude for hard selfconfidence.

DECLARATION

I hereby declare that, the project entitled To Study the Retention of Employees in Telecommunication Industry with Special Reference to UNINOR assigned to me for the partial fulfillment of MBA degree from Kurukshetra University, Kurukshetra. The work is originally completed by me and the information provided in the study is authentic to the best of my knowledge.

This study has not been submitted to any other institution or university for the award of any other degree.

RANJANA MBA 4th SEM

CERTIFICATE
This is to certify that RANJANA has completed the project entitled To Study the Retention of Employees in Telecommunication Industry with Special Reference to UNINOR under my supervision. To the best of my knowledge, the report consists of result of the empirical study conducted by the student. In my opinion, the work is of requisite standard expected of an MBA student. Therefore, I recommend the same to be sent for evaluation.

Ms. VISHU MEHNDIRATTA ASSISTANT PROFESSOR

CONTENTS 1. Chapter-1 Introduction Telecommunication industry Organization Employee Retention SWOT Analysis 2. Chapter -2 Research methodology Objectives of the study Sample design Data collection Tools and techniques for analysis and interpretation 3. Chapter -3 Analysis and interpretation

4. Chapter-4 Findings and recommendations

5. Limitations of the study 6. Conclusion Bibliography Annexure

CHAPTER 1

INTRODUCTION

TELECOMMUNICATION INDUSTRY
Talking of telecommunications sector in India today, we can primarily identify two segments namely Fixed Service Provider (FSPs) and Cellular Services. Some of the essential and basic telecom services forming part of Indian telecom industry include telephone, radio, television and Internet. Telecom industry in the country lays a special emphasis on some of the advanced and the latest technical innovations like GSM( Global System for Mobile Communications), CDMA(Code Division Multiple Access), PMRTS(Public Mobile Radio Trunking Services), Fixed Line and WLL(Wireless Local Loop ). Especially, India has a flourishing market in GSM mobile service, while the number of subscribers is on rapid and dramatic increase. The Indian telecommunications industry boasts as being one among the most rapidly growing chunks on the globe. Experts around the world estimate that India holds the promise of emerging as the second largest telecom market of the world. Figures published by the Telecom Regulatory Authority of India (TRAI), reveal that the number of telecom connection subscribers in India reached 562.21 million in December 2009, marking a 3.5 percent increase over the number 543.20 million reported in November 2009. This figure indicates that the average teledensity (number of telephones per 100 persons) has gone up to 47.89. On account of a dramatic increase in the earnings from mobile and landline connections, the telecom industry in India made revenue of US$ 8.56 billion during the quarter ending on December 31, 2009 thereby witnessing a recovery from the economic downturn. Business Monitor International has stated that at present, India is adding up about 8-10 million mobile subscribers every succeeding month. Estimates have revealed that by June2012, almost half Indias population will be in possession of a mobile phone. This will result in about 612 million mobile subscribers, making up a teledensity of about 51 per cent by the year 2012. Over and above, a study undertaken by Nokia has brought out that the communications sector will grow as the single largest chunk of the Indias GDP making up about 15.4 per cent by the year 2014. Estimates made in February 2009 show that the Indian equipment market valued at US$ 24 billion, while Nokia was glowing as the market leader reporting more than US$ 3.4 billion revenues in 2008-09. Ericsson followed Nokia with revenue of about US$ 2.11 billion. The latest reports published by Evalueserve state that the availability of the 3G spectrum has given hopes of finding about 275 million Indian subscribers using 3G-enabled services. This will

take up the number of 3G-enabled handsets to reach near to 395 million by the end of 2013. A Frost & Sullivan industry analyst has predicted that by the year 2012, revenues from fixed line subscriptions in India will reach up to US$ 12.2 billion, while the revenue from mobile connections will reach up to US$ 39.8 billion.In a significant step taken to boost up the auction of 3G spectrum, the Indian Government has permitted prospective bidders to call for short-term funds from the domestic market in the country, while allowing refinancing out of external commercial borrowings (ECBs) within a period of 12 months. Estimates show that the government can mop up US$ 7.53 billion from the auction of 3G spectrums to be completed shortly. The reserve price has been fixed at US$ 753.74 million. BSNL, the state-managed telecom operator has introduced 3G services in more than 318 cities benefitting 856,000 subscribers. BSNL has been venturing to cross more than 400 cities in the near future eventually rolling this service across 760 cities by September 2010. While the debate on 3G is seen continuing, TRAI has already started consulting on the next higher level of telecom services. 4G or the fourth generation enables downloads faster than all the earlier versions. Today, India is the largest market in the world adding up a dramatic number of about 20 million mobile subscriber lines every month in an average. On the other hand, the number of landlines is found gradually decreasing. At the end of the first quarter in 2010, we find that the overall telecom subscriber penetration has gone up by more than 52 %. Though this might occur as a relatively low volume compared with a number of other nations, this comes as a quantum leap noting the figures recorded a few years back. Mumbai and Delhi (NCR) enjoy the status among a few other metro areas around the globe boasting of more than 25 m mobile subscribers in each of these regions. At present, The FDI cap in the telecom sector in India is 74 %. In a recent move, UKs Vodafone Group has purchased a 52 % stake in Hutchison Essar, the fourth largest mobile service provider in the country. Bharti Airtel has the credit of being the first Indian operator to cross a subscriber base of 50 million. It is predicted that mobile number portability (MNP) will be available throughout India by the second quarter of 2010, initially in the cities of Chennai, Delhi, Kolkata and Mumbai, the four metros of India. Also, 3G (third generation) mobile services are found being introduced in all the major cities across the nation. The country has auctioned three 3G spectrum slots to private bidders. However, the number of subscribers for broadband connections is increasing at a slow pace.Telenor Group announced that it has

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increased its stake in Unitech Wireless from 49 per cent to 60.11 per cent with an investment of Rs 1,490 crore. This is the third round of investment made by the Norway-based company after striking a deal with Unitech in 2008. Telenor has made two transactions, investing Rs 4,110 crore.The stake is being acquired through issue of fresh equity as the Government has imposed a three-year lock-in period on the equity stake held by the promoters. The lock-in was imposed to prevent windfall gains to promoters.

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UNINOR WIRELESS LTD

One new player entered in Telecom market in India. It is 'UNINOR WIRELESS LTD.'. It is joint venture of Indian company 'Unitech' and Narve's company 'Telenor'. It set target to grab the 8% Indian market by 2018. It will launch its services firstly in 10 to 12 states of India The company holds a pan-India UAS license to offer telecommunications services in each of Indias 22 circles. It has also received spectrum to roll out these services in 21 of the 22 telecom circles. From November 2009, UNINOR WIRELESS LTD. will be owned 67.25% by Norwegian telecom giant Telenor, and 32.75% by UNITECH. UNINOR WIRELESS LTD. has started mobile services in India at the end of 2009, focusing on the GSM technology. The company Unitech Wireless was until 2009 a subsidiary of Unitech Group, holding a wireless services license for all 22 Indian telecom circles since 2008. In early 2009, Unitech Group and Telenor agreed on a majority take-over by Telenor of Unitech's wireless business, including Unitech Wireless' national-wide mobile license. By March, May and November, Telenor acquired a 33%, 49% and 60% stake in Unitech Wireless, respectively. In September, the mobile operation changed its name to UNINOR WIRELESS LTD. On October 19 the Indian Cabinet Committee of Economic Affairs (CCEA) announced that it has approved Telenor's acquisition of up to 74% in Unitech Wireless, and the shareholder's agreement sets a 67.25% Telenor ownership in UNINOR WIRELESS LTD. To quickly launch mobile services only nine months after the foundation of the new company, UNINOR WIRELESS LTD. has entered into network and base station service agreements with partners. Tower sharing agreements are concluded with Wireless-TT Info Service Limited and Quippo Telecom Infrastructure Limited.

Telecommunications, network and radio equipment is to be supplied by Alcatel-Lucent, Huawei Technologies India, Nokia Siemens Networks and Ericsson. The company's IT services and infrastructure is to be shared with Wipro Technologies. Telenor had announced a deal with Unitech Wireless in March to acquire 67.25 per cent for Rs 6,120 crore in tranches. This put the company's equity value at Rs 9,100 crore.

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Key Statistics about UNINOR WIRELESS LTD. (Telenor group - Norway) Headquarters Industry Type Status Company Size Founded Website Common Job Titles Gurgaon, India Telecommunications Privately Held Operating 40,000 employees 1865 http://www.UNINOR WIRELESS LTD.in Manager Key Account Manager Senior Executive Sales Manager General Manager Top Schools Kendriya Vidyalaya Delhi Univ. Median Age Median Tenure Gender 30 years 1 year Male Female 86% 14% 25% 6% 5% 5% 3% 4% 4%

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NETWORK AND LICENCES The 22 telecommunications networks in India are classified as Metros (Mumbai, Delhi and Kolkata) and A, B and C circles. The Metros and the A circles have the highest economic development. The UAS license authorizes a licensee to provide wire line and/or wireless services, including full mobility, limited mobility and fixed wireless access within the circle for which the license has been granted, subject to allocation of spectrum. The UAS license is valid for 20 years and can be extended for another 10 years by the licensor. The upfront cost for UNINOR WIRELESS LTD.s UAS license covering all circles was approximately Indian Rupees (INR) 16,586 million. The annual license fee, for the term of the license, (including 5% USO) is 10% for Metros and A circles, 8% for B circles, and 6% for C circles of the adjusted gross revenue. In its roll-out, UNINOR WIRELESS LTD. will make use of the availability of infrastructure sharing. This will not only help to roll out services faster, but will also help to reduce network roll-out costs and capital expenditure per subscriber. On 10 February 2009, UNINOR WIRELESS LTD. entered into a tower sharing agreement with Wireless-TT Info Service Limited (Tata Teleservices tower company) (Tata) and Quippo Telecom Infrastructure Limited (Quippo). The tower sharing agreement allows UNINOR WIRELESS LTD. to mount its mobile network antennas onto existing as well as new towers to be built by Tata and Quippo. These two tower companies are currently in the process of merging their businesses to become one of Indias largest tower companies with the scale benefits that this offers. The tower-sharing agreement covers approximately 40,000 sites. During the fourth quarter of 2009, UNINOR WIRELESS LTD. entered into agreements with Indus Towers and Reliance Infratel as additional tower suppliers. As at 31 March 2010, approximately 18,000 towers were installed. UNINOR WIRELESS LTD. also entered into a transmission agreement with Tata Teleservices. The tower sharing and transmission agreements each have 20 year terms with options to extend the contracts for a subsequent 5-year period. UNINOR WIRELESS LTD. however, is tied into the agreement for a significantly shorter period than the vendors. On 25 September 2009, UNINOR WIRELESS LTD. entered into a national roaming agreement with Idea to enable services in circles where UNINOR WIRELESS LTD. has yet not launched services on its own network. The agreement has an exclusivity period of one year and is unilateral with roaming only one way.

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The present value of total minimum contractual obligation from the tower and transmission agreements with Wireless-TT Info Services Limited (Tata Teleservices tower company) and Quippo Telecom Infrastructure Limited is around NOK 3 billion. During the second quarter of 2009, UNINOR WIRELESS LTD. entered into a number of contracts, including an IT outsourcing agreement with WIPRO and GSM equipment supplier contracts with Huawei, Alcatel Lucent and Ericsson. During the third quarter 2009, additional GSM equipment supplier contracts were entered into with Nokia Siemens Networks and ZTE Corporation. On 23 June 2009, UNINOR WIRELESS LTD. acquired Unitech Long Distance Communication Services Limited to get immediate access to licenses to provide national long distance and international long distance services. On 18 September 2009, UNINOR WIRELESS LTD. announced its brand name UNINOR WIRELESS LTD. with the Telenor logo as visual identity. UNINOR WIRELESS LTD. received UAS licenses which were executed on 28 and 29 February 2008 and were effective as of 25 January 2008. The UAS license agreements require that various obligations are fulfilled by the licensees. These include maintaining quality of service, payment of license fees, security conditions etc. In addition, the licensees are required to fulfill certain rollout obligations (being the date of allocation of spectrum in the relevant circles).

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MISSION STATEMENT & VISION

OUR PROMISE Who we are Our vision is simple, yet powerful. We exist to help you get the full benefit of communications services in your daily lives. Were here to help. This means providing services that bring solutions to your everyday endeavors and needs, enabling your future aspirations to come even closer. We are driven by this promise to you. - A promise to keep things simple. A promise to listen and respond. A promise to constantly innovate, motivate and support; so you see change. Change that takes you where you want to go. Know us better We are a new mobile operator, with a localized approach to the Indian market. We combine the force of Indias second largest real estate company, Unitech Ltd and Norway-based Telenor, the 6th largest mobile communications group in the world. Now were bringing our services and innovation in communications to all of India. UNINOR WIRELESS LTD. IN SOCIETY We believe in safeguarding human worth. A non-discriminatory and respectful attitude towards customers, colleagues and wider society will be the hallmark of our approach. And we will work to be at the forefront in matters of health, safety, security and the environment. Our primary responsibility is to help people communicate wherever they are. We will leverage on our combination of local heritage and global telecom experience to develop products and services that positively affect peoples lives. Driven by our values, we will work to:

Maximize the enabling effect of mobile telecommunications Promote safer products and services Make responsible business practices part of everything we do.

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WE MAKE OUR VISION AREALITY BY LIVING OUR VALUES These values are embedded in our thoughts and enlivened in our actions. It is our values that shape our personality and bring the brand UNINOR WIRELESS LTD. alive. They reflect in the way we behave and also in the products and services we offer. WE ARE HERE TO MAKE IT EASY We keep things simple. We make products and processes easy to understand, easy to use and easy to choose. No waste. No jargon. No complications. We make things happen quickly, simply and openly so that you understand us better. BE INSPIRING We are creative and innovative. We bring energy and fresh ideas to everything we do. We build motivated teams, encouraging everyone staff and customers to do more, to try more, and to be more. KEEP PROMISE We're honest and straightforward. Were reliable and responsible. We do what we say. We take ownership. Were about actions, not words. Were about delivery, not over -promising. We deliver on time and to the very best quality. And in the unlikely event that things do go wrong you can rely on us to take responsibility and BE RESPECTFUL We care about customers, communities and colleagues. We strive to know our customers and to understand their needs. We are thoughtful and considerate. We listen and respond because we know loyalty has to be earned. Well listen to your needs and we will do our very best to answer them. Your opinions and your feedback are always valued they help us to create a better service. ALWAYS AROUND US WHEN YOU NEED US

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We realized the only way we can help voice your ambition is by staying accessible to you at all times. With over 200 exclusive stores and over 300,000 partner outlets across India, UNINOR WIRELESS LTD. is always a shout away from you and your aspirations. Each of our state-of-the-art stores have been designed keeping your needs in mind and our people will do everything possible to ensure that all your needs are efficiently taken care of. Come visit us at your nearest UNINOR WIRELESS LTD. exclusive store and experience the change. WORLD CLASS IT AND NETWORK.

TECHNOLOGY THAT ENABLE MY AMBITION Technology for us has always taken the role of an enabler. A slingshot to our aims. A catalyst for change and growth. We at UNINOR WIRELESS LTD. bring with us world class network & IT infrastructure which enables you with the best voice clarity and quality mobile Experience. Our network is built upon the best and latest technology that offers state-of-the-art speech and data quality and is supported by the most modern systems and processes. And with the largest network ever deployed, our network is our biggest strength.

PRODUCT DESIGNED FOR YOU GREAT CARE GREAT PEOPLE We are in a peoples business. And at UNINOR WIRELESS LTD., we understand the importance of our relationship. That is why we put you first in your every interaction with us. Great customer care is not a value addition; it is in fact the very core around which weve built our services. So whether it is about not making you wait when you call us or empowering our agents to resolve your problem.

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COMPETITION INFORMATION

Currently, there are 10 operational wireless operators in India. Bharti is the largest wireless operator in India with an estimated market share of 22% as at 31 March 2010. Bharti has a panIndian GSM network as well as a presence in National Long Distance (NLD), International Long Distance (ILD) and broadband provision. The largest shareholders are the Mittal family (30%) and Singapore Telecommunications (31%). Reliance Communications (Reliance) has an estimated market share of 18.1%. Reliance has a pan-Indian CDMA network, but is also rolling out a GSM network in all circles. The company also has a presence in NLD and ILD. The controlling shareholder in Reliance is Anil Ambani (65%). Vodafone Essar has an estimated market share of 17%. The largest shareholders are Vodafone (67%) and Essar (33%). BSNL has a market share of approximately 11%. The government owned players BSNL and MTNL have an estimated combined market share of around 11.5%. They provide GSM and CDMA services and 3G services in selected areas. Idea has an estimated market share of 11% and provides GSM services in 21 circles. Idea has merged with Spice, one of the smaller wireless operators in India. After the merger, Birla owns 49.05%, while Axiata Berhad owns 20% in Idea. Tata Teleservices has an estimated market share of 11% and is the second largest CDMA operator. The largest shareholder is Tata Group (65.61%) followed by the Japanese mobile operator NTT DoCoMo (12.12%). In addition to the existing operators, UAS licenses have been granted to four new operators, including UNINOR WIRELESS LTD.

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SWOT ANALYSIS

STRENGTH:-

Strength is an inherent capacity which an organization can use to gain strategic advantages. Strength of the company is:1) Joint venture between worlds 6th largest telecom company and Indias 2nd largest real estate company. 2) Least capital investment as various services is outsourced. 3) Least number of employees. 4) Decentralized management structure. 5) Simple prepaid plan in which a local call is priced at 29 paisa a minute. 6) The more you talk, the lower the price gets. 7) Different segmentation strategy as compared to competitors. 8) Use of real young people in promotion instead of any role model. 9) Innovative promotional strategy.

WEAKNESS:Weakness is an inherent limitation or constraint strategic disadvantages. Weakness of the company is:1) It has still not launched postpaid schemes. 2) Late entrant in the market. 3) Too much outsourcing may go against the health of the company.

OPPORTUNITY:Opportunity is a favorable condition in the organizations environment which enable it to consolidate and strength its position.

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1) With rising individual saving rate with 9% growth rate, and expected increase in market size by 500 million in 2010(almost double), the company has great opportunities. 2) Approximately 10-15 million mobile connections are being added every month. The national mobile tele-density is about 39 per hundred, Urban areas-75 (in Mumbai), but Rural areas-13. 3) Micro segmentation strategy in rural markets adopted by the company. 4) Falling handset prices and tariff rates. 5) Increasing network distribution. Statistics1) Cell phone ownershipTotal- 51% Male- 56% Female- 44% Youth (16-19 years) - 64% 2) Amount spent on Mobile per month (average)Boys- Rs. 125 (71% of pocket money) Girls- Rs.106 (62% of pocket money) New mantra of youth-Kapda Ipod and Cellphone THREAT:Threat is an unfavorable condition in the organizations environment which creates a risk for, or causes damage to, the organization. 1) Competitors like Airtel, Reliance, BSNL, and Vodafone 2). Extensive Government regulations through TRAI as regards Introduction of new services. 3) Bloodbath in the market due to price war.

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INTRODUCTION ABOUT EMPLOYEE RETENTION

Employee retention means to retain the employee in the company. Todays time no of the employees who leave the job very quickly. There are many reasons behind it. Thats why companies have to face no of problem like recruitment, training and make the new employee perfect to do the work. In todays competitive hiring market, employee retention has become an important issue for all employers. As a small business owner, you are aware that its harder then ever to find good people. You also understand that your ability to retain quality workers can make or break your business. In the best of the worlds, employees would love their job like their co-workers work hard for their employers, get paid well for their work have ample chances for advancement, and flexible schedules so they could attend to personal or family needs when necessary, And never leave. But then theres the real world, and in the real world, employees, do leave, either because they want more money, hate the working conditions, hate their co-workers, want a change or because their spouse gets a dream job in another state so what does all that turnover cost? And what employees are likely to have the highest turnover? Who is likely to stay the longest? Its however no easy task for an HR manager to bridge the ever- increasing demand and supply gap of professionals. HR manager is not only required to fulfill his responsibility, but also find the right kind of people who can keep pace with the unique work patterns in this industry. Adding to this is the issue of maintaining consistency in the performance and keeping the motivation levels high, despite the monotonous work. The toughest concern for an HR manager is however the high attrition rate.

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THE 3 Rs OF EMPLOYEE RETENTION

To keep employees and keep their satisfaction levels high, any organization needs to implement each of the three Rs of employee retention: respect, recognition, and rewards.

RESPECT

RECOGNITION

REWARD

Respect is esteem, special regard, or particular consideration given to people. As the pyramid shows, respect is the foundation of keeping your employees. Recognition and rewards will have little effect if you do not respect employees.

Recognition is defined as special notice or attention and the act of perceiving clearly. Many problems with retention and morale occur because management is not paying attention to peoples needs and reactions. Rewards are the extra perks you offer beyond the basics of respect and recognition that make it worth peoples while to work hard, to care, to go beyond the call of duty. While rewards represent the smallest portion of the retention equation, they are still an important one.

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You determine the precise methods you choose to implement the three R's, but in general, respect should be the largest component of your efforts. Without it, recognition and rewards seem hollow and have little effect or they have negative effects. The magic truly is in the mix of the three.

WHO LEAVES JOB MORE MALE/FEMALE After searching we find that there is the high percentage of females in the work force who leaves the job very quickly. The total percentage of the female is 30-35 percent of the total, adds to the high attrition rate. Most of the females leave their job either after marriage or because of social pressures caused by irregular working hours in the industry; all this translates into huge losses for the company, which invest a lot of money in training them. If a person leaves after the training it cost the company about Rs60000.This translates into Rs60 Lakh per annum.

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WHAT DO EMPLOYEES WANT FROM THEIR JOB Good Wages Good Working Conditions Interesting Work Job Security Promotion/Growth Opportunities Personal Loyalty to Workers Feeling "In" on Things Sympathetic Help on Personal Problems Tactful Disciplining

The employees want the above things from the job. They will do the job if only when they get these things, which are shown in the above table.Being in job an employee will first of all will look forward for good wages and then healthy working conditions along with that a nice working environment as well. So all he above things are basically required by the employees in the job.

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NEED OF EMPLOYEE RETENTION Employee retention is most critical issue facing corporate leaders as a result of the shortage of skilled labor, economic growth and employee turnover.

Lower turnover Increase employee and customer satisfaction Increase quality and productivity Increase profits! Decrease cost

COSTS DUE TO AN EMPLOYEE LEAVING When an employee leaves the job, the company has to bear some costs. The cost of the person who fills in while the position is vacant. The cost of the lost productivity at a minimum of 50% of the persons compensation and benefits cost for each week the position is vacant, even if there are people performing the work.

The cost of conducting an exit interview to include the time of the person conducting the

interview, of the person leaving, the administrative cost of the stopping payroll, benefit deduction, benefits enrollments. The cost of the manager who has to understand what work remains, and how to cover that

work until a replacement is found. The cost of training your company has invested in this employee who is leaving. The cost of the person who is leaving for the amount of the time the position is vacant.

There is some type of costs that a company has to bear when an employee is leaving the job.

RECRUITMENT COST TRAINING COST LOST PRODUCTIVITY COST NEW HIRE COST

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RECRUITMENT COST:1) 2) The cost of advertisements, agency costs, employee referral costs, Internet posting costs. The cost of the internal recruiters time to understand the position requirements, develop

and implement a sourcing strategy, review candidates assessments, conduct reference checks, make the employment offer and notify unsuccessful candidates. This can range from a minimum of 30 hour to over 100 hours per position. 3) The cost of various candidate pre employment tests to help assess a candidates skills,

abilities, attitude, values and behaviors.

TRAINING COST:The cost of orientation in terms of the new persons salary and the cost of the person to

1)

conduct the orientation. Also include the cost of orientation materials. 2) 3) The cost of the person who conduct the training. The cost of various training materials needed including company or product manuals,

computer or other technology equipments used in the delivery of training.

LOST PROUCTIVITY COSTS:-

As the new employee is learning the new job, the company policies and practices, etc. they are not fully productive. There are some guidelines 1) After training the employee is contributing at a 25% productivity level for the first 2-4 During weeks 5 12 the employee is contributing at a 50% productivity level. The cost is weeks. The cost therefore is 75% of the new employees full salary during that time period. 2)

therefore 50% of the full salary during that time period. 3) During weeks 13-20 the employee is contributing at a 75% productivity level. The cost is

therefore 25% of full salary during that time period. 4) The cost of mistakes the new employee makes during this elongate indoctrination period.

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NEW HIRE COST:-

1)

Calculate the cost of bring the new person on board including the cost to put the person on

the payroll establish the computer and security passwords and identification cards, telephone hookups, cost of establishing the e-mail accounts, or leasing other equipments such as cell phones, auto mobiles. 2) The cost of a managers time spent developing trust and building confidence in the new

employees work.

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HOW TO RETAIN THE EMPLOYEE

There are many ways to keep your prize employees happily on board. Here are some tips to help improve employee relations and ensure that your company keeps the best of best:

1)

COMPENSATE FAIRLY: money is not the only reason people stay, but it plays a

significant role in job satisfaction. You must offer your employees a competitive salary and honor their service and tenure with raises, bonuses, and other monetary rewards. Fair pay shows that you respect them.

2)

BE OPEN TO THEIR IDEAS: In a high-performance workplace, some of the best ideas

come from the employees them selves. Make sure to keep the lines of communication open. Good leaders listen to their employees and treat them as valuable team members.

3)

TREAT PEOPLE AS EQUALS: If you really want employees to feel a sense of loyalty

and commitment, you should treat them as partners, not hired hands. Give your employees a sense of ownership and keep them engaged. PROVIDE GROWTH OPPORTUNITIES: its estimate that 50 percent of an employees

4)

skill set becomes outdated in just two years, so make sure you provide your staff with opportunities for personal and professional growth. Allow employees to take classes and attend professional responsibilities that help them to acquire new skills. SAY THANKS: Simply taking the time to say thank you is a simply yet effective way to

5)

show employees that they are valued and appreciated.

6)

SPEND TIME WITH THEM: Make an effort to spend one-on-one time with individual

employees. Take them to lunch. Show each person that you are personally committed to keeping and growing his or her talent by inquiring what other positions the employee might be interested in as their career progresses.

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7)

BE FLEXIBLE: Its important to help each employee achieve a balance between their

work life and their personal life. Allow them to attend their children activities or tend ton sick relatives when necessary.

8)

ENCOURAGE CREATIVITY: Employees need to enjoy the work they do, and you need

to provide a creative and challenging work environment, or all the other great things the company does wont matter. If you micromanage and stifle creativity, dont expect to keep good people.

9)

KEEP THEM HEALTHY AND HAPPY: Encourage good health and wellness of body,

mind, and spirit. You can be creative. Bring in a yoga instructor for morning meditation or give gift certificates meditation or give gift certificates for messages. Allow for restful breaks. Learn about your employees outside interests. Feed their minds with books, magazine subscriptions and concert or theater tickets.

10)

LEAD WITH THE HEART: Win your employees over. Excellence is impossible

without their affection and respect. Whether its through sharing a compelling vision with them, paying attention to work/life balance, or simply providing a positive, uplifting work environment, if you want to keep great employee, finds some way to tap into their hearts.

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CHAPTER 2 RESEARCH MEHODOLOGY

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OBJECTIVE OF THE STUDY

To find the reason behind leaving the job To find out that what employees really wants from the job. To find out the satisfaction level of employees in the job. To find the effectiveness of management. To find out if training is being provided to the employees or not. To find out the quality of supervision so provided to the employees.

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DATA COLLECTION
Secondary data was obtained by the Exit interview questionnaire by company filled by employees who left their job by sending questionnaire to them by e-mail and the feedback so collected thereafter analyzed for evaluating the reasons of leaving the job. Secondary data was also obtained from internet and historical data & reports obtained from the company. SIGNIFICANCE OF THE STUDY This study will help in creating new ideas, thoughts, suggestions, and enhancing knowledge in human resource management to face challenges arises in area of employee retention. It will provide consistency in my deed & prolong quality of study. This study will help in analyzing that why employee leaves a job and finding major reasons behind it. This study will show us the way and suggest us that what steps should be taken for employee retention.

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RESEARCH DESIGN
Research methodology is a systematic way of undertaking any study. It may be understood as a science of studying how research is one scientifically. It helps to give a clear cut strategy of how should proceed in our research. The study concerned with the analysis of cause of Employee Retention. The study is explorative as well descriptive in nature. It involves the depth study of data collected. RESEARCH DESIGN:It is the specification of method and procedure for accruing the information needed. It is overall operational pattern or framework of the project, that stipulates what information to recall from which source by what procedure. Descriptive research design is use for study. RESEARCH APPROACH:The approach used for study was survey method (diagnostic survey) was carried out. DIAGNOSTIC SURVEY:The problem was diagnosed with the help of Exit interview questionnaire of company. Sample unit: Sample size Sample location Sampling technique Employees 100 UNINOR ,Ambala Random sampling

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CHAPTER 4 ANALYSIS & INTERPRETATION

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ANALYSIS & INTERPRETATION

There are two parts in the questionnaire. Part A is demographic representation of respondent and part B is Exit interview analyses.

The research comprises of 100 respondents. Part A is divided in to three groups.

1) 2) 3)

Age Education Department

Part B is comprises 12 questions.

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PART A (DEMOGRAPHIC)

1. AGE:-

Respondent were divided in the five - age groups 15-20 21-30 31-40 41-50 51- 60.

Individual employeesAge 15-20 21-30 31-40 41-50 51-60 Total Frequency 8 72 8 4 8 100

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Age

4% 8%

8%

8% 15-20 21-30 31-40 41-50 51-60 72%

INTERPRETATION:Analysis of data here is made on the basis of the employees age group. So, the interpretation shows the employees who leave the job very quickly belongs the age group of 21-30.Almost 72% of the total respondent belongs to this age group, Being freshers the people of this age group has very less stability part so mostly they shift the job People belonging to the age group of 41-50 were most stable and only 4% of the respondents belonged to this age group and the reason they shift the job is health reasons mostly or the comfort ability part. Other than that very less is there who shift the job because of good opportunity.

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2. EDUCATION:-

Respondent were divided in three educational group. Higher secondary Graduation Post graduation Individual employees-

Education Higher secondary Graduation Post graduation Total

Frequency 8

64 28

100

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Education

28%

8% Higher secondary Graduation Post graduation 64%

INTERPRETATION:Analysis of data is also made on the basics of the education qualification of the employees which shows that the employees who leave the job very quickly are graduated. Almost 64 % of the total respondent belongs to this are educational group. Employee who belongs the higher secondary group doesnt change the job quickly only 8% of the respondent belongs to this educational group and they dont change their job very quickly. Rest 28 % of the employees who are post graduated leaves their job. So, in all it can be summed up that graduate leave the job more and are unstable while education group of higher secondary are more stable.

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3.DEPARTMENT OF RESPONDENTS :Respondent were divided in the eight departments:Individual employeesDepartment CRM Underwriting Public relation development IT Claims MIS Accounts Collection Total Percentage (%) 28 12 12 4 28 8 4 4 100

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Department
Frequency/Percentage

30 25 20 15 10 5 0

28

28

12 7 3
CRM

12 3
Public relation development

Frequency 4 7 2
Claims

8 1 4 1 4

Percentage

Department

INTERPRETATION:Analysis of data was also made on the basics of different departments; mainly 8 departments were made taken into consideration so the analysis showed that the employees who leave the job very quickly belonged to CRM department and claims department. Almost 28% of total respondent belongs to these two departments each and these are the only two departments which are very much crucial departments of the organization Also, according to the analysis the employees who belong to IT, Accounts & collection department dont change the job quickly.

Accounts

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PART-B (EXIT INTERVIEW ANALYSIS)

1) What is the primary reason of leaving? Respondent reasons of leaving were divided in eight groups: Individual employees Reasons Salary Environment Incentives Growth Infrastructure Better opportunity Management Other reasons Total Frequency 28 12 4 4 8 20 4 20 100

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No.of respondants/Percentage

Few reason of leaving

30 25 20 15 10 5 0 28 20 12 7 3 1 8 4 1 4 2 5 1 4 5 20 Frequency Percentage

INTERPRETATION:-

Analysis of data was also made on the prior reasons of the people leaving the job so the analysis shows that the main reason of leaving the job is salary Better- opportunity, other reasons like personal problem and Environment. There are very less number of employee who leaves the job for growth and management. The employees who are getting better opportunity in respect of salary they take no time to shift their job .Almost 28% of total respondent leave the job due to salary reason. Only 4% of total respondent leave the job due to growth reason.

Sa lar En y vir on m en t In ce nt ive s Gr ow In th fra s Be tr u ctu tte ro re pp or tu nit M y an ag em Ot en he t rr ea so ns

Reasons

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2)

What was most satisfying about your job? Respondent choices were divided in five groups:

Atmosphere Co-ordination Job-satisfaction Nothing Working- hour Individual employee: Suggestions Atmosphere Co-ordination Job-satisfaction Nothing Working-hour Total Frequency 44 32 16 4 4 100

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INTERPRETATION:Also, Analysis was also made on the basics of the satisfaction level of the employees in the organization, so 5 choices were made basically for this analysis, the employees satisfaction was deeply analyzed on the all these 5 basics. Analysis of data shows that the most satisfying thing about their job is the company atmosphere and co-ordination of other employees. Almost 44% of the employees were satisfied with the company atmosphere, it means there is friendly atmosphere in the company and 32% of the employees were satisfied with the coordination between each other. That means there is no problem in employee relation.

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3) What was the least satisfying about your job? Dislikes of respondent were divided in six groups:

Individual employee:

Dislike Salary Management Job profile Incentives Nothing Conflict Total

Frequency 56 4 8 4 20 8 100

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INTERPRETATION:Along with finding the satisfaction level of the employees, a deep analysis was also made in regard of the most dissatisfying part of the job, Analysis of data shows that most of the employees were dissatisfied about their salary as employees want a hike in their salary and as compared to other cos they say that they are provided less salary. Almost 56% of total respondent were dissatisfied with their salary, that why they leave the job. A very few employees were there who was dissatisfied with management and incentives.4% of the people are dissatisfied with the management.8% of them are dissatisfied with the job profile and again 4% of them are dissatisfied with the incentives being given to them while 8% of them are dissatisfied with the conflicts in the organization.

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4) What would you want to change about your job? We divided the respondent choice in six categories: Nothing Discipline Salary Liberty Department Time Individual employee: Choice Nothing Discipline Salary Liberty Department Time Total Frequency 60 4 20 4 4 8 100

Change about job

4% 4% 20% 4% 60% Nothing 8% Discipline Salary Liberty Department Time
INTERPRETATION:Analyses of data show that the most of the employees are satisfied with their job. They do not want to any change in their job. Almost 60% of total respondent do not want any change in their job. But there are some employees who want some increment in their salary

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5) Did you Received enough training to do your job effectively? We divided the respondent opinion in three groups: Yes No need No Individual employee: Opinion Yes No need No Total Frequency 80 12 8 100

Receive enough training

No No need 8% 12%

Yes No need Yes 80% No

INTERPRETATION:Analysis of data shows that most of employees received adequate training from company. Almost 80% of total respondent received adequate training. Only 8% of total no of respondent are dissatisfied with training, which they received from company. It shows that company provides the training to its employee is accurately and on the time.

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6) Did you receive sufficient feedback about your performance between merit reviews? Respondent opinions were divided in three groups: Yes No Cant say Individual employee: Opinion Yes No Cant say Total Frequency 76 12 12 100

Sufficient feedback about Performance

Cant say 12% No 12% Yes 76%
INTERPRETATION:Analysis of data shows that most of the respondent received sufficient feedback during the job period. Almost 76% of total respondent got the adequate feedback about their performance. It shows that company adopted the adequate merit review process. Only 8% of total respondent didnt satisfy with company merit review process.

Yes No Cant say

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7) Did this company help you to fulfill your career goals? Respondent choice was divided in three groups: Yes No Cant say Individual employee: Choice Yes No Cant say Total Frequency 52 36 12 100

Help to fullfill career goal

60
Percentage\frequancy

52

50 40 30 20 10 0 1 2 Choice 3 4 13 12 3 36 Choice Frequency Percentage 9

INTERPRETATION:Analysis of data shows that most of the respondent says that the company helps them to fulfill their carrier goals. Almost 52% of the total respondent is satisfied with the company policy. The company does not give only salary or good working environment, but also helps them to fulfill their career goal, but 36% of the total respondent is says that the company is a wall to achieve their career goals.

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8) Were you happy with your pay, benefits and other incentives? Respondent opinions were dividing in two groups: Yes No Individual employee: Opinion Frequency Yes No Total 40 60 100

Happy with incentive

Yes 40% Yes No No 60%

INTERPRETATION:Analysis of data shows that most of the employees were not satisfied with their pay, benefits and other incentives, which they received from the company. Almost 60% of the total respondents were dissatisfied with their salary. It seems that the company does not give all benefits to their Employees, which the employees want. Only 40% of the total respondents were satisfied with the company salary procedure.

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9) What was the quality of supervision you received? Respondent opinion was divided in five groups: Good Average Dictatorship Co-operative Cant say Individual employee: Opinion Good Average Dictatorship Co-operative Cant say Total Frequency 76 12 4 4 4 100

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Quality of supervision
4% 4% 12% 4% Good Average Dictatorship 76% Co-operative Cant say

INTERPRETATION:Analysis was also made on the basics of supervision provided to the students. Analysis of data shows that most of the employees were received adequate supervision. Almost 76% of total respondent were satisfied. Other 12% of total respondent said that they received only average not adequate supervision from their supervisor. And 4% of total respondent says the type of supervision they received is dictatorship and other 4% says that the supervisor of the company dont co-operate with them. So, in all to sum up it can be said that the employees are in all satisfied with the quality of guidance and supervision provided to them.

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10) What would your immediate supervisor do to improve his or her management style? Respondent opinion was divided in five groups: Attentive Encourage and appreciation Efficient Co-operative Nothing Individual employees: Opinion Attentive Encourage appreciation Efficient Co-operation Nothing Total Frequency 4 and 4 8 8 76 100

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Improvement in Management style

Attentive 4% 4% 8% 8% Encourage and appreciation Efficient Co-operation 76% Nothing

INTERPRETATION:The most important thing in the study was that the employees were asked that if they wanted to change the management style of their supervisors so according to the analysis of data it shows that most of the employees didnt want to any improvement in their immediate supervisor management style as maximum of them were happy and contented with the supervision they received. Almost 76% of the total respondents were satisfied with their immediate supervisor. But some respondent said that they want to improve their efficiency, attentiveness, co-operation and appreciation towards employees so few wanted that their must be some changes in the management style of the supervisors in respect of attentiveness, encouragement, efficiency , appreciation and co-operation.

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11) Did any company policy or procedure make your job more difficult?

Respondent opinions were divided in three groups: Yes No Cant say Individual employee: Opinion Yes No Cant say Total Frequency 16 76 8 100

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Police make job difficult

8%

16% Yes No Cant say

76%

INTERPRETATION:One of the main reason as to why employees leave the organization is cos policies and procedures as some co have very strict policies and also are very much reluctant to change them. So the analysis of data shows that most of the respondent said that the company policy or procedure was good, even the company policy or procedure make their job very easy. Almost 76% of the total respondents were satisfied with the company policies. But some other respondent said that the company policy or procedure make their job more difficult. And other 8% of the total respondent didnt want to say anything.

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12) Would you consider working again for this company?

Respondent choice was divided in four groups: Yes No Cant say Depend upon circumstances Individual employee: Choice Yes No Cant say Depend circumstances Total Frequency 64 20 8 upon 8

100

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Working again for company

Yes 8% 8% 20% No Cant say Depend upon circumstances
INTERPRETATION:To know about the employees satisfaction level in deep and the mind set of the employees regarding their consideration whether they will work again for the company or not then the analysis of data shows that most of the total respondent wants to do work again for this company. Almost 64% of the total respondent are agree to work again for this company. Others 20% of the total respondents are not satisfied with the company. They do not want to work again for the company. Some other respondent says that the decision, to work again for this company will depend upon circumstances.

64%

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CHAPTER 4 FINDINGS & RECOMMENDATIONS

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FINDINGS

Most of the employees i.e. 72% who left job belong to age group of 21-30. Unsatisfactory Salary is the major reason of leaving job. 44% ex-employees tell atmospheric factor as most satisfying factor and 56% tell salary as least satisfying factor. 80% employees said that their training session was highly satisfactory. 76% employees said that they received specific feedback about their performance. 52%said that company helped them in achieving their career goals. 60% are not satisfied with incentives structure. 76%said that they received good supervision. 64% employees want to work again with the company. Most of the employees said that they received a great co-operation while working.

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RECOMMENDATIONS

Compensate employees fairly. Welcome ideas of employees and adopt two-way communication. Treat employees equally. Provide more growth opportunities to employees. Appreciate workers on their good performance. Start spending time with them. Be flexible while operating employees in emotional context. Encourage creativity of employees. Keep them healthy and happy Adopt more effective training session. Restructure merit review process.

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LIMITATIONS

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LIMITATIONS OF THE STUDY

1. Due to the short span of time it will be very difficult to take depth knowledge of all the reasons responsible for employees behavior of leaving jobs quickly. 2. It is not possible that every job leaver will take the questionnaire seriously. 3. There will be covering of a limited sample size due to time restrictions. 4. The results may not be accurate due to personal reasons. 5. Employees were hesitant to respond due to several reasons

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CONCLUSION

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CONCLUSION

Retention is an important concept that has been receiving considerable attention nowadays and also many organizations are working towards the benefit of employees and also to make sure that the employees are retained in the organization for a long time as well.Since, retention of the employees is very important concept as the employees who joins the organization undergoes through various processes and training part as well so there are many costs which are incurred on the employees and the employees who leave the organization very quickly , the company has to suffer huge costs , so the time has been changed now as nowadays the companies are paying more attention towards retaining the employees. From academicians, researchers and practicing HR managers. The conclusion of my research is that employee are retained in the organization only if they are provided with Good Wages, Good Working Conditions, Interesting Work, Job Security, Promotion/Growth Opportunities, and Personal Loyalty to Workers. The very main reason why employees leave the company is salary as none of the employee will compromise for promotion and growth. Atmospheric factor is most satisfying factor as many employees nowadays prefer good working environment and healthy atmosphere. Training session was highly satisfactory as the training is also given by the top level management as well. Most of the employees said that they received a great co-operation while working and along with that they had received many useful informations and training which had made them updated. The basic priority for every employee is good wages and good working environment. Along , with this there are many employees who have a problem regarding the performance appraisal of the employees , so they personally want that the employees appraisal system should be changed or it must be reviewed.Also,merit review should be restructured so that the employees should be checked constantly .The very main reason why employees leave the organization is the supervision they are getting from their immediate seniors as many of them are not satisfied with the supervision they are being provided with and the company as employees too want some free hand in the company so that they dont have to work under pressure and can also work with full efforts and dedication , so in all it can be concluded that the employee can be retained in the organization only by giving them attractive salary package and good incentives , along with that also environmental factors plays a vital role

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in the retention of the employees as well.Thus, to conclude it can be said that UNIOR in all is a great company where employees find an opportunity to develop their potential and to build their career as well.And attrition is subject to change as employees may have several reasons to leave the company as the employees definitely will switch on to next better and good opportunity they will be getting.

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BIBLIOGRAPHY

Books:Human Resource Management by V.S.P.Rao. Human Resource Management by C.B.Gupta. Human Resource Management by T.N.Chabra. Business Research Methodology by C.R.kothari. Journal:Journal of American Academy of Business, Cambridge; Sep 2004; 5, 1/2; ABI/INFORM Global. Birmingham Business Journal - by Frances Pace Putman. Search engines: www.google.com www.yahoo.com www.ovu.edu/assets/attachments/File/Option_One-Chapter_Two.pdf www.paulgerhardt.com/.../Employee%20Retention%20Proposal.pdf www.brunel.ac.uk/329/.../AshiqueAlipaper02pdf.pdf Websites: http://www.UNINOR.in http://en.wikipedia.org/ http://www.hartfordbusiness.com/news14212.html

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EXIT INTERVIEW QUESTIONNAIRE OF COMPANY

PERSONAL INFORMATION

(Please Insert Tick the Appropriate Box)

1. NAME

2. AGE

(a) 15-20 (b) 20-30

(c) 30-40 (d) 40-50

3. EDUCATION

4. DEPARTMENT

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QUESTIONS 1) What is your primary reason for leaving?

2) What was most satisfying about your job?

3) What was least satisfying about your job?

4) What would you change about your job?

5) Did you receive enough training to do your job effectively?

6) Did you receive sufficient feedback about your performance between merit reviews?

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7) Did this company help you to fulfill your career goals?

8) Were you happy with your pay, benefits and other incentives?

(9) What was the quality of supervision you received?

10) What would your immediate supervisor do to improve his or her management style?

11) Did any company policy or procedure make your job more difficult?

12) Would you consider working again for this company?

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