Chapter 1

Introduction
 1.1 INTRODUCTION
In these changing times both the employee & employer are under
tremendous pressure to perform. There is fierce competition not only in the
industry but also across categories. This new liberalized cutting edge
technology driven environment has made employee retention mind-boggling.
The fast pacing change across the globe has made the new employee &
employer relationship irreversible. However all corporations not only in IT
sector but also traditional manufacturing sector are attempting to stem
attrition. This paper attempts to unravel this paradox & study the various
facets that surround this burning issue i.e.

 factors that make employees stay in a organization

 reasons why they leave

 what could be done to make them stay with the company

Let Us see what “Employee Retention” used to mean

This entails understanding just a little history. The term “employee

retention” first began to appear with regularity on the business scene in the
1970s and early ’80s. Until then, during the early and mid-1900s, the
essence of the relationship between employer and employee had been (by
and large) a statement of the status quo: You come work for me, do a good
job, and, so long as economic conditions allow, I will continue to employ
you. It was not unusual for people who entered the job market as late as the
1950s and ’60s to remain with one employer for a very long time—
sometimes for the duration of their working life. If they changed jobs, it was
usually a major career and life decision, and someone who made many and
frequent job changes was seen as somewhat out of the ordinary. As a
natural result of this “status quo” employer-employee relationship, an
employee leaving his or her job voluntarily was seen as an aberration,
something that shouldn’t really have happened. After all, the essence of
“status quo” is just that little or nothing should change in the relationship—
and leaving was a pretty big change!

What is Employee Retention Today?

Employee retention is more than just keeping employees on the job. It is

also about sustaining employees, primarily by enhancing their job
satisfaction. Job satisfaction, in turn, can increase productivity and keep
employees energized and motivated to give their best. Job satisfaction can
equate to employees who stick with their current employer and strive to
perform at or above expectations and standards. Employee retention is
beneficial for the organization as well as the employee.
Employees today are different. They are not the ones who don’t have
good opportunities in hand. As soon as they feel dissatisfied with the
current employer or the job, they switch over to the next job. It is the
responsibility of the employer to retain their best employees. If they don’t,
they would be left with no good employees. A good employer should know
how to attract and retain its employees. Most employees feel that they are
worth more than they are actually paid. There is a natural disparity between
what people think they should be paid and what organizations spend in
compensation. When the difference becomes too great and another
opportunity occurs, turnover can result.

This study helps to realize the importance of effective employee retention.

This research study examines types and effectiveness of various factors
leading to retention. It helps to provide insights to support future research
regarding strategic guidance for organizations that want to retain their most
valuable asset.

1.2 Objective-

1.2.1 Primary objective- To find out factors that lead to retention of

employees.

1.2.2 Secondary objective-

 To find out the gap between employee expectations and present
measures.
 To find out various factors that make the employees leave the
organization.
 To examine the effectiveness of retention strategies in place.
 To identify alternate strategies for retaining valuable employees.

1.3 Scope Of The Study-

The present study on employee retention helps to get clear picture
about the factors which help to retain employees. This in turn helps the
management to formulate suitable policy to maintain longer and more
fruitful relationships with its employees.
The study is directly beneficial to the researcher in developing the
ability to apply multidisciplinary concepts, tools and techniques to reach the
findings of the study
1.4 Limitations of the study
The limitations of the study are the following
 The data was collected through questionnaire. The responds from the
respondents may not be accurate.
 The sample taken for the study was only 50 and the results drawn
may not be accurate.
 Since the organization has strict control, it acts as another barrier for
getting data.
 Another difficulty was very limited time-span of the project.
 Lack of experience of Researcher.
 Environmental factors, such as socioeconomic status and work
attendance were not controlled, and that created many variables
within the research.

1.5 Research Questions

Specifically this study will address the following questions:

1.  What significant causes of high staff turnover in Jindal Power Limited
were determined?

2.  What specific alternatives or retention strategies can be done to help

lower the staff turnover in the organization?

1.6 Assumptions
The research was based on the following assumptions:

(a) all participants were utilizing the correct procedures as outlined in the
guidelines for the specific methodology employed, and

(b) all participants will answer questions honestly to the best of their ability.

1.7 Research Methodology.

Research is a systematic method of finding solutions to problems. It is
essentially an investigation, a recording and an analysis of evidence for the
purpose of gaining knowledge. According to Clifford woody, “research
comprises of defining and redefining problem, formulating hypothesis or
suggested solutions, collecting, organizing and evaluating data, reaching
conclusions, testing conclusions to determine whether they fit the
formulated hypothesis”

1.7.1 Sampling Design.

 A sample design is a finite plan for obtaining a sample from a given
population. Systematic random sampling is used for this study.
1.7.2 Universe.
The universe chooses for the research study is the employees of
Jindal Power Ltd, Tamnar.

1.7.3 Sample Size.

Number of the sampling units selected from the population is called
the size of the sample. Sample of 50 respondents were obtained from the
population.

1.7.4 Sampling Procedure.

The procedure adopted in the present study is probability sampling,
which is also known as chance sampling. Under this sampling design, every
item of the frame has an equal chance of inclusion in the sample.

1.7.5 Methods of Data Collection.

The data’s were collected through Primary and secondary sources.

a) Primary Sources.
Primary data are in the form of “raw material” to which statistical
methods are applied for the purpose of analysis and interpretations.
The primary sources are discussion with employees, data’s collected through
questionnaire. Also informal telephonic interviews were conducted with
employees who have recently left the company.

b) Secondary Sources.
Secondary data’s are in the form of finished products as they have
already been treated statistically in some form or other.
The secondary data mainly consists of data and information collected
from records, company websites and also discussion with the management
of the organization. Secondary data was also collected from journals,
magazines and books.

1.7.6 Nature of Research.

Descriptive research, also known as statistical research, describes
data and characteristics about the population or phenomenon being
studied. Descriptive research answers the questions who, what, where,
when and how. Descriptive Research is a fact finding investigation which is
aimed at describing the characteristics of individual, situation or a group
(or) describing the state of affairs as it exists at present.
A descriptive study identifies relevant variables of the problem under
study, but does not aim at testing hypothesis.
Applied Research or Action Research is carried out to find solution to a real
life problem requiring an action or policy decision.
Although the data description is factual, accurate and systematic, the
research cannot describe what caused a situation. Thus, descriptive
research cannot be used to create a causal relationship, where one variable
affects another. In other words, descriptive research can be said to have a
low requirement for internal validity.

1.7.7 Questionnaire.
A well defined questionnaire that is used effectively can gather
information on both overall performance of the test system as well as
information on specific components of the system. A questionnaire was
carefully prepared and specially numbered. The questions were arranged in
proper order, in accordance with the relevance.

1.7.8 Pre-testing
A pre-testing of questionnaire was conducted with 10 questionnaires,
which were distributed and all of them were collected back as completed
questionnaire. On the basis of doubts raised by the respondents the
questionnaire was redialed to its present form.
 Chapter 2
Profiles

2.1 INDUSTRY PROFILE

India has a deficit in power generation and the public sector has not
been able to meet the increasing demand. The dynamic growth witnessed by
the economy has not been matched by the power sector in India. In fact
experts believe the deficit in power supply has been the biggest
infrastructure constraint. The power generation is dominated by the
government through the public sector units and distribution is almost
entirely controlled by the government.

The government came up with the Accelerated Power Sector

Development and Reform Programme in 2001 to restructure the power
sector. The electricity act 2003 was passed to make the state governments
introduce reform to bring in competition and efficiency in the sector. The
Post reforms various state governments have chalked out strategies to
overcome the power crisis. In spite of all these measures the power scenario
has not witnessed any dramatic change. Investment into the sector has not
been up to the expectation.

2.1.2 Electricity Generation

Coal is the most important resource for power generation in India,
taking care of half of the primary energy needs and a third of total energy
needs. Coal reserves in India are substantial high but low in quality.
Because of economic and security reasons, coal would play a vital role as a
raw material for power generation. Most of the coal based power plants use
conventional sub critical pulverized coal technologies and below par in
converting coal to electricity. The reasons for the bad performance of the
coal based power plants are due to:

 Challenges in the coal supply industry.

 Not having clear-cut performance standards.
 Negligible incentive for continual performance improvement due to
negligible competition.
 Insufficient investments in R&D.
 Substandard operational and management practices.
 Not having sufficient facts and accountability.

Controls to check the negative impact on the eco system due to the usage
of coal is not sufficient. The trend of relying on imported gas over the past
decade raises concern with respect to security and continuity of supply.
There is not much initiative to upgrade current technology and to come up
with new technology for generating power based on coal.

2.1.3 Historical background-

a) Before Independence
 The British controlled the Indian power industry firmly before
Independence. The then legal and policy framework was conducive to private
ownership, with not much regulation with regard to operational safety.

b) Post Independence
Immediately after Independence, the country was faced with capacity
restraint. India adopted a socialist structure for economic growth and all the
major industries were controlled by public sector enterprises. By 1970's
India had nationalized most of its energy assets, due to its commitment to
social goals. By the late 1980's the Indian economy felt the strain of the
socialist agenda followed since independence. Faced with a serious
deterioration in public finance and balance of payment crisis, the Union
government as part of its policy of economic liberalization allowed greater
investment by private sector in the power industry.

c) Constitutional Position
Power as a matter of legislative and executive competence, falls in the
Concurrent List (List III of the Seventh Schedule to the Constitution of
India).Both the Parliament and state legislatures have the rights to pass
laws on the matter and any law passed by the Parliament overrides the
existing state laws unless

 The existing law is conserved or saved from such a repeal or

 A law passed by the state legislature receives acknowledgment from
the President of India.

d) Post Liberalization
Understanding the critical part played by the power industry, the
Union government passed several laws and restructured the Power Industry
to gear it up to meet the challenges posed to the Indian economy post
Liberalization.

e) Electricity Bill 2001

Learning from the experience gained through various reform
initiatives, the Indian government passed the Electricity Bill 2001.The Bill
seeks to
 Consolidate and rationalize existing laws.
 To address the issues of developing industry including regulation, power
trading, non discriminatory open access, choice of dispensing with
vertically integrated state enterprises and encouraging private enterprise.

f) Energy Conservation Act 2001

The Act was enacted by the Indian government to facilitate stringent
 POWER GENERATION steps to ensure the efficient
use of energy and its
24%
conservation. A Bureau of
Energy Efficiency was set up to
HYDEL
NUCLEAR
RENEWABLE
monitor and regulate the Power
3% THERMAL
Industry according to the
64% 9% provisions of the act.

g) Positive policy
environment for Power sector
While at the time of independence the country had a power generation
capacity of 1,362 MW, it stood at 156,784 MW in January 2010. The Indian
power sector has been witnessing progressive developments beginning with
the Electricity Act, 2003. Positive legislations, competitive bidding policies,
opening up for private investments as well as surging growth in electricity
demand have all contributed to the growth of the sector

2.1.4 GENERATION
SCENARIO

India’s power generation

capacity stands at 156,784 MW
in January 2010 and is the fifth
largest in the world. The state
sector accounts for a large
share of installed capacity,
followed by central and private
sectors. The generation
capacity continues to be
predominantly thermal power based even as the overall capacity is
increasing. Nuclear power is expected to get a fillip given the positive
international cooperation in the area.

2.1. 5 HUMAN RESOURCE REQUIREMENT

The Power sector is a capital and technology intensive sector requiring

large number of engineers, technicians and other skilled workers. Power
projects require specialized technical manpower during the project
construction phase as well as the Operation and Maintenance (O&M) phase.
Due to the technology intensive nature of the business, technical and
managerial competency is critical in ensuring timely implementation of
projects and optimum performance upon commissioning.

The total manpower in the power sector at the end of 10th plan was
approximately 9.5 lakhs as per the Planning Commission’s Working Group
on Power for 11th Plan. The following are the requirements for additional
manpower for the 11th plan assuming addition of 68,869 MW of generation
capacity, 100,000 ckt.Kms of HV, EHV and UHV transmission lines and 16
crore distribution consumers. It should be noted that the generation
capacity addition target was revised to 78,700 MW which further increases
the manpower requirement

11th Plan Additional Manpower Requirement (in thousands)

Area Technical Non-Technical Total
Thermal 31.4 12.3 43.7
Hydro 25.3 7.1 32.5
Nuclear 3.9 1.6 5.5
Power System 202.1 60.6 262.7
Total 262.7 81.7 344.4

For the 12th plan, based on the earlier target of generation capacity of
82,200 MW, transmission capacity of 63,000 ckt.Kms, and about 14 crore
distribution consumers, the required manpower addition has been
estimated as in the table below. However, as per revised target, at least
100,000 MW is to be added in the 12th plan and the requirement for
manpower correspondingly increases

12th Plan Additional Manpower Requirement (in thousands)

Area Technical Non-Technical Total
Thermal 26.9 10.0 36.9
Hydro 37.5 6.3 43.8
Nuclear 13.2 5.6 18.8
Power System 148.4 45.1 193.4
Total 226.0 67.0 293.0

2.1.6 Some of the major players in the industry

 Reliance energy Ltd is one of the leading groups in the private sector
for power generation. It is into generation, transmission, distribution
and trading of power. It distributes over 5000 MW of power the largest
 in the country.

 Essar power ltd installed India's first new generation state of the art
power project at Hazira in 1990's .The 515 MW natural gas fired
combined cycle has regularly set new standards of excellence in the
power sector and confirms to the highest operating benchmark. It has
the unique feature of being able to operate on both naphtha and gas
simultaneously.

 GMR power corporation pvt ltd commissioned a 200 MW power

plant in Chennai in 1998.The power generated is supplied to the
TamilNadu Electricity Board. The unique feature of the plant being the
sophisticated sewage treatment unit, which treats sewerage water to
convert it to clean water for its own use.

 Tata Power Ltd is India's largest private sector power utility, serving
the nation over nine decades. It has generation capacity in Mumbai,
Delhi, Jojobera, Jharkhand and Karnataka. It has made its presence
felt in all aspects of power whether it is thermal, hydro, solar, wind
and transmission and distribution.

2.1.7 Practices in some of the major players

I. NTPC – National thermal power corp

 Attrition rate is around 0.27%
 Have the highest career tenure in industry i.e. 23.5 years
 Ranked second in Core sector by Business today in 2010
 Hones the best of talents
 Follows a policy of ‘people before PLF’

II. BHEL- bharat heavy electrical limited

 Attrition rate is less than 1%
 Training intensity is higher than global standards
 High quality of worklife
 Work life balance is high

III. L&T- Larsen and tubro

 Ranked first in Manufacturing sector by business today in 2010
 Extensive empowerment allows everyone to be innovative and
creative
 Tie up with Harvard Business School for learning modules
 Faster career paths
  Training with IIMs and other top institutions
 Merit based performance appraisal

IV. IOC- Indian oil corp

 Uses GAT for recruitment
 Developed online Performance Management System
 Clear KRAs and KPIs
 rewards for even submitting suggestions

V. ONGC- oil and natural gas corp

 Ranked first in core sector by business today in 2010
 Assessment development centres for succession planning
 Talent grooming ground
 ERP based portals

2.2 COMPANY PROFILE

Energizing India for a Better Tomorrow

 Jindal Power Limited (JPL), a subsidiary of Jindal
Steel & Power Ltd. (JSPL), has been contributing
significantly to the growing needs of power in the
country.

JPL has set up India’s first mega power project in

the private sector at Raigarh, Chhattisgarh. The
company has invested approximately. Rs. 4338
crore for setting up 1000 MW power plant which commenced
commercial operation of the 1st unit in December 2007 and all
four units (250 MW each) were commissioned within a span of
nine months.

The company has constructed a 258 km, 400 KV Double

Circuit transmission line from the plant to the PGCIL sub-
station at Raipur through which power can be sold anywhere
in India. For meeting the plant’s consumptive water
requirement, 18 m high dam over the Kurket River has been built, 25 km
away from the project site.

Salient features-

 The first power plant to achieve ‘mega power’ project status in the
private sector in India 
 Certified to be in compliance under ISO 9001:2000, ISO 14001:2004
and OHSAS 18001:2007 
 Water is supplied from river which is 25 Km from the plant
 A dam of 18 m height has been built on the Kurket River
 Coal is transported from the mines to the power project via an
approximately 6.9 kilometers pipe conveyer belt

2.2.1 PARTICULARS OF TAMNAR PLANT

a) Location
The 1000 MW power plant is located near village Tamnar in Raigarh district
of Chhattisgarh. The project site is approachable from Raigarh by the state
highway, which branches off at Punjipathra, about 12 km from the site and
34 km from Raigarh town. The nearest broad gauge rail link is at Raigarh,
35 km away. The nearest airport is at Raipur, 280 km away from the project
site.

b) Water Requirement-

To meet the consumptive water requirement for the 1000 MW thermal power
plant, a dam has been constructed about 25 km away on the River Kurket

Highlights
 
 Catchments area: 783 sq  Length of left dyke: 210 m
km  Total gates in spillway : 10
 Submergence area: 681 nos.
ha  Size of spillway gates: 12 m x
 Top level of dam: RL 8.5 m
261.50 m  Size of pump house : 13.5 m x
 Max height of spillway: 19.5 m
18 m  Reservoir capacity : 35.687 m.
 Length of right dyke : cu.m
1133 m  No. of pumps: 3 nos
 Length of main earth  Capacity of each pump : 4000
dam : 244.25 m Cum/hr)
 Length of spillway:
144.75 m

c) Transmission Lines

Jindal Power Limitd has established a 258 km, 400 KV Double Circuit
transmission line from Raigarh to the PGCIL sub-
station at Raipur

The contract for transmission

line construction was awarded in
October 2006 and the
completion target was set a year
ahead (inclusive of the rainy season). The survey finalised erection of 701
towers at different places. Besides major river crossings at three places,
other crossings obtained were:

• 400KV line of PGCIL at five places.

• 220KV line of PGCIL & CSEB at six places.
• 132KV line of CSEB at three places.
• SECR railway crossing at two places.

Highlights
 
 Total length: 258.251 km  220 KV crossing: 6 nos. (4
 Total towers: 701 nos. CSEB+1 PGCIL)
 Forest:  5.920 hectare at  132 KV crossing: 3 nos.
village Rabo (Raigarh) (CSEB)
 400 KV crossing: 5 nos.  Railway crossing: 2 nos.
(PGCIL) (SECR)
 River crossing:  4
nos.
(Mand, Asdeo, Sheonath)

d) Fuel Requirements

The fuel supply for the power plant is met through the
coal produced at the company’s captive coal mines. The
mines are located about seven km from the plant, at
village Dongamahua.

A 6.9 km conveyer pipeline has been set up for

transportation of coal between the mines and the
plant.

1) Total coal reserve: 246 MTPA

2.2.2
FUTURE PROJECTS
 JPL has also signed an MoU with the State Government of Jharkhand to set
up a 2640 MW Thermal Power plant. In the Hydro sector, we have signed
agreements for 6100 MW projects in Arunachal Pradesh. Besides these, the
company is evaluating options with respect to setting up some wind and
solar power projects.

Projects under implementation :

a) Thermal Projects

 2400 MW coal based power project in Tamnar, Raigarh, Chhattisgarh

 1320 MW coal based power project in Dumka, Jharkhand
 660 MW coal based power project in Godda, Jharkhand

b) Hydroelectric Projects

 4000 MW hydroelectric power project in Etalin, Arunachal Pradesh

 500 MW hydroelectric power project in Attunli, Arunachal Pradesh
 1600 MW hydroelectric power project in Subansiri Middle, Arunachal
Pradesh

Projects under planning, wherein we have signed an MoU or have been

granted a survey license.

 2640 MW power project in Jharkhand

 1320 MW power project in Angul, Odisha and

220 MW hydroelectric power plant in Chainpur Seti, Nepal

HR VISION
Creating competitive advantage for all stakeholders through effective people
management

HR MISSION

 To attract, nurture and retain the best talent by inculcating a culture of

learning, performing, developing creativity and team work
 To build an excellence focused, development oriented, value driven and
people sensitive organization.
 To enrich the quality of life of employees and develop their potential.
 To develop employee engagement, mutual trust, co-operation and
openness through empowerment, recognition and rewards.
 GUIDING PRINCIPLES

Jindal Steel & Power Limited has defined its Guiding Principles based on its
Core Values. They are the standards for conduct of business and behaviour of
all its employees.

Value Creation
Sustained value creation for all its stakeholders: Employees, Supplier,
Customer, Shareholder, Nation & Society.

Transparency
Conduct all business dealings along transparent lines.
CORE VALUES
Personal Conduct
Jindal
DisplaySteel
high & Power Limited
standards (JSPL)
of personal andisprofessional
in the business of steel production,
conduct.
power generation, mining iron ore, coal and diamond exploration/ timing. The
company
Learning is& on the path of catalyzing economic development of the country
Development
through
Foster an environment oftolearning
its contribution the infrastructure sector. With dedication and firm
and excellence.
commitment, we aspire to embrace the future and build a better tomorrow. We
are one of the
Creativity leaders in Steel Manufacturing and Power Generation in India.
& Innovation
We have a passion
Encourage creativefor excellence and institutionalizing
experimentation, a never failing commitment
continuoustowards our
improvement
customers,
in all aspectsemployees,
of businessstakeholders and the community at large. Our core
and performance.
values have been made in conformity with our goals ahead. They are:
Good Corporate Citizen
Enrich the quality of life of the communities we serve.
Integrity
Conduct all business dealings along transparent lines.
Environment, Safety and Health
Respect
Manage,for Individual
Protect and Preserve the safety and health of our people, products,
Recognize individual’s
locations and contribution in the growth and development of the
environments.
company. Treat all Jindalites with respect and dignity.
Confidentiality
Meritocracy
Respect and ensure the confidentiality of all business related information.
Foster an environment of excellence in performance.
Speaking Up
Dynamic
Speak UpThinking
and be a true Jindalite! Jindal Steel & Power Limited expects its
Demonstrate
employees toareportwinner’s attitude
promptly with a crystal
suspected clearoffocus
violations to deliver sustained
law, Company’s Policies or
value for all stakeholders.
Procedures.

Creativity
Process & Innovation
Encourage creative experimentation, embracing new ideas and institutionalize
continuous improvement
The implementation of in
theallGuiding
aspects of business is
Principles andthe
performance.
responsibility of each
functional head for his/ her department and he will ensure adherence to these
Social Responsibility
principles and act promptly when a breach occurs.
Dedicate efforts to the social and environmental issues to enrich the Quality of
life of community we serve.
 Chapter 3

Literature review
 “High performers are like frogs in a wheelbarrow-
They can jump out at any time”

-Mc Kinsey & Company Study.

In the best of worlds, employees would love their jobs. Like their co-
workers, work hard for their employers; get paid well for their work, ample
chances of advancement and flexible schedules so they could attend to
personal or family needs when necessary. And never leave.

But then there’s the real world. And in the real world, employees, do,
leave, either because they want more money, hate the working conditions,
hate their co-workers, want a change, or because their spouse gets a dream
job in another state. Unlike inanimate products and systems that subject
themselves to fine tuning without any reaction, employees would not subject
themselves to any measure taken without reaction and analysis. Hence
managing human resources, particularly retaining them, is an art that calls
for special skills and strategies.

Employee retention

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. A strong retention strategy becomes a powerful recruitment
tool.

It is a known fact that retaining your best employees ensures

customer satisfaction, increased product sales, satisfied colleagues and
reporting staff, effective succession planning and deeply imbedded
organizational knowledge and learning.

Employee retention matters as organizational issues such as training

time and investment; lost knowledge; insecure employees and a costly
candidate search are involved. Hence failing to retain a key employee is a
costly proposition for an organization. Various estimates suggest that losing
a middle manager in most organizations costs up to five times of his salary.

Intelligent employers always realise the importance of retaining the

best talent. Retaining talent has never been so important in the Indian
scenario; however, things have changed in recent years. In prominent Indian
metros at least, there is no dearth of opportunities for the best in the
business, or even for the second or the third best. Retention of key
employees and treating attrition troubles has never been so important to
companies. Corporate is facing a lot of problems in employee retention these
days. Hiring knowledgeable people for the job is essential for an employer.
But retention is even more important than hiring. There is no dearth of
opportunities for a talented person. There are many organizations which are
looking for such employees. If a person is not satisfied by the job he’s doing,
he may switch over to some other more suitable job. In today’s environment
it becomes very important for organizations to retain their employees.

The top organizations are on the top because they value their
employees and they know how to keep them glued to the organization.
Employees stay and leave organizations for some reasons.

Employee retention is a process in which the employees are

encouraged to remain with the organization for the maximum period of
time or until the completion of the project. Employee retention is
beneficial for the organization as well as the employee.

There is no single definition of employee retention that fits all

circumstances.
“Excellence results from dedication to daily progress.
Making something a little better everyday.” – Robert Hall

“It is commitment, not authority that produces

results.” – William I Gore

The concept of employee retention developed as a response to

increasing voluntary employee turnover. Initially, employee retention dealt
mostly with employee “hygiene factors”, primarily compensation and
benefits. It soon became clear that sustained employee retention called for a
more holistic approach that dealt with employees’ “higher needs” such as
acceptance, esteem, and self-fulfillment.

After visualizing the shot, a golfer rejects all but the appropriate club
to achieve the result visualized: a driver for a tee shot, a putter for the green,
a sand wedge for getting out of bunkers, and so on. Likewise, to retain
employees, you must choose the right tools to achieve your goals. The
possibilities are numerous – compensation schemes, crèches, pension plans,
cars, bonuses, fresh paint, coaching, 360-degree assessments, barbecues, to
name just a few.
Why is retention important

1. High turnover often leaves customers and employees in the lurch;

departing employees take a great deal of knowledge with them. This
lack of continuity makes it hard to meet your organization’s goals and
serve customers well. Estimates have determined that lost knowledge
that leaves with the departing employee can be as high as 50% of the
exiting employee’s salary for one year of service; and, this figure grows
by 10% for each year of employment

2. Replacing employees costs money. The cost of replacing an employee

is estimated as up to twice the individual’s annual salary (or higher for
some positions, such as middle management), and this doesn’t even
include the cost of lost knowledge.

3. Recruiting employees consumes a great deal of time and effort, much

of it futile. You’re not the only one out there vying for qualified
employees, and job searchers make decisions based on more than the
sum of salary and benefits.

4. Bringing employees up to speed takes even more time. And when

you’re short-staffed, you often need to put in extra time to get the
work done.

5. The blow to morale and increased job stress when remaining

employees are burdened with the distribution of the departed
employee’s workload, the negative impact on customer service is a
direct result of their high turnover.

Why does employee leave

There is no single answer to this question. Employees have different

aspirations, needs and wants, and these keep changing. A change in the
position, experience or even life style choice brings about a change in what
employees expect from their jobs.

The main reasons for leaving can be categorized into five primary “themes”…

Career opportunities, including:

 Perceived opportunity for advancement
 Presence and/or clarity of development plan.

Enjoyment of the work, including:

 How well work utilizes skills
  “Fit” with job
 Work/life balance.

Corporate leadership, including:

 Clarity and strength of vision and mission
 Management style
 Overall perception of leadership
 Level of respect and support received.

Availability of training, including:

 Opportunity to learn new skills/develop new talents
 Corporate commitment to training and development
 Keeping up with latest technology.

Compensation/rewards, including:
 Base/variable pay
 Benefits
 Recognition of contributions
 Communication regarding performance

How do you get your employees to "fall in love" with the organization
and let them “stay in love” with the organization?

This is a great question. Some recently conducted research lists these top
ten strategies:

1. Treat your employees like you treat your most valuable clients. It is
cheaper to keep your good employees than it is to hire and train new
ones. Your top 20-25% should be courted as you would court and then
service your top customers.
2. Get your employees to "fall in love" with your organization.
Communicate your vision in a compelling way. Show everyone the role
they have to contribute to this vision. Create opportunities for people to
connect with each other for support and to improve communication in
work teams.
o Capture the hearts of your workforce with: Compelling
vision/balance/celebration-fun.
o Open Communication: Internal listening is a priority, multiple lines
of communication (various channels). This is essential for
managing change in a positive way with less sabotage, anger,
resistance, and fear.
o Create partnerships: Squash status barriers/open the books/pay
for performance (not titles), share the "bad" times the "good" times.
 o Drive Learning: "Guarantee Employability," Encourage Life Long
Learning (Train outside of job description). Loyalty comes from
trusting your employees to develop their skills for the good of the
company and for their needs for personal growth and satisfaction.
o Emancipate Action: Freedom to Fail, reduce bureaucracy,
challenge the "status quo." Breathe life into your organization. Do
not let your employees stagnate.
3. Strong retention strategies become strong recruiting advantages.
4. Retention is much more effective when you put the right person
into the right job. Know the job. Know the employee and their
motivations. Half of the Fortune 500 companies are now using
assessments to more fully understand each job and the soft skills that
are required for top production within their specific company culture.
These benchmarked skills are then compared against qualified applicants
to help determine who will be successful in the position and fit well
within their company's culture. These assessments are also used as a
powerful professional development tool to enhance the training of
continuous lifelong learning (which is another powerful retention
strategy).
5. Money is important but it is not the only reason people stay with an
organization. If your compensation plan is in the top 20-30% of your
industry, then money will often not be the reason why people leave.
6. Employee committees to help develop retention strategies is a very
effective strategy. Get their input. Ask, “what do people like about
working here? What would you like changed to make your company a
better place to work?
7. Leadership must be deeply invested in retention. Management must
be skillful communicating company policies in a way that creates "buy-
in" from their staff and be open to employee input. Help create
"ownership" in your employees.
The companies with the best retention percentages are the same
companies that are actively committed to retention. They know that is
costs less to keep good people than to continuously have to replace
unsatisfied employees and managers.
8. Recognition, in various forms, is a powerful retention strategy. It
does not have to cost a lot. Research shows 46% of people leave their
jobs because they feel unappreciated.
9. Remember, the "fun factor" is very important to many employees.
The FUN Factor is part of the generation of workers that use activities as
stress management in highly charged production environments where
long hours are required.
10.Know the trends in benefit packages. Do your best to offer the ones
your employees need. Consider offering the best of the rest.
Models for employee retention

Here we will study two models for employee retention

1. The 3 R’s of Employee Retention

To keep employees and keep their satisfaction levels high, any

organization needs to implement each of the three R’s of employee retention:
respect, recognition, and rewards.

RD
CT
NITION
RE WA
SPE
RECOG

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 people’s needs
and reactions.

Rewards are the extra perks you offer beyond the basics
of respect and recognition that make it worth people’s while to 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.
 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.
When implemented, the “3 R's” approach yields reduced turnover and
the following benefits:
 Increased productivity,
 Reduced absenteeism,
 A more pleasant work environment (for both employees and
management/employer),
 Improved profits.

Furthermore, an employer who implements the three R's will create a

hard-to-leave workplace, one known as having more to offer employees than
other employers. It becomes a hard-to-leave workplace – one with a waiting
list of applicants for any position that becomes available – purposefully, one
day at a time.

2. KEi’s Employee Retention Wheel

The Retention Wheel

The first step to improving your 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 on to good employees. However, studies show that these
efforts are not enough to retain good employees when the support that is
needed to achieve job success is not adequate.

Don't Waste Your Money on Things that Don't Make a Difference

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 turnover.
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 do not

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, ongoing support to be successful in their work and satisfied with
their employment.

The Center of KEi's Employee Retention Wheel:

Eight Factors

Definition of successful: My job is helping me to

grow personally, professionally and financially.

Definition of satisfied: My employer is providing

what I need to perform my job successfully.

These eight central processes of the Employee

Retention Wheel are the factors that are most critical to an employee's job
performance success.
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 who you hire, how you treat
them, and the organization's values as an employer. It is about making sure that the
Values for Employing™ are communicated to your employees and consistently
implemented throughout your organization. It is about the total employment
package that goes beyond salary and traditional benefits.
FINDING CANDIDATES
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 this criteria.
SORTING APPLICANTS
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
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
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
A process that gives employers a way to provide essential information (from five
critical information sources) 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.

REWARDING EMPLOYEES
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.
For the purpose of this study following key factors were kept in mind

1. People
 Senior Leadership
 Manager
 Co-workers
2. Total Rewards
 Pay
 Benefits
 Recognition
3. Company Practices
 Policies
 Performance Assessment
 Customer Value
4. Work
 Work Activities
 Resources
5. Opportunities
 Career Opportunities
 Training & Development
6. Quality of Life
 Work/Life Balance
 Physical Work Environment

These six categories cover almost all the basic factors that affect an
employee’s decision to stay with any organization. These can be viewed
differently for different purposes, from the point of view of retention or for
satisfaction or for employee engagement, all boils down to employee’s
decision to stay or leave.

Why these

 People- Sometimes the relationship with the management and the

peers becomes the reason for an employee to leave the organization.
The management is sometimes not able to provide an employee a
supportive work culture and environment in terms of personal or
professional relationships. There are times when an employee starts
feeling bitterness towards the management or peers. This bitterness
could be due to many reasons. This decreases employee’s interest and
he becomes demotivated. It leads to less satisfaction and eventually
attrition. A supportive work culture helps grow employee
professionally and boosts employee satisfaction. To enhance good
 professional relationships at work, the management should keep the
following points in mind.

 Total rewards- Compensation constitutes the largest part of the

employee retention process. The employees always have high
expectations regarding their compensation packages. Compensation
packages vary from industry to industry. So an attractive
compensation package plays a critical role in retaining the employees.
Compensation includes salary and wages, bonuses, benefits,
prerequisites, stock options, bonuses, vacations, etc.

- Salary and wages represent the level of skill and experience an

individual has. Time to time increase in the salaries and wages
of employees should be done. And this increase should be based
on the employee’s performance and his contribution to the
organization.
- Bonus: Bonuses are usually given to the employees at the end
of the year or on a festival.
- Economic benefits: It includes paid holidays, leave travel
concession, etc.
- Long-term incentives: Long term incentives include stock
options or stock grants. These incentives help retain employees
in the organization's startup stage.
- Health insurance: Health insurance is a great benefit to the
employees. It saves employees money as well as gives them a
peace of mind that they have somebody to take care of them in
bad times. It also shows the employee that the organization
cares about the employee and its family.
- After retirement: It includes payments that an Employee gets
after he retires like EPF (Employee Provident Fund) etc.
Miscellaneous compensation: It may include employee
assistance programs (like psychological counseling, legal
assistance etc), discounts on company products, use of a
company cars, etc.

 company practices and work environment- People want to work for

an organization which provides
- Appreciation for the work done
- Ample opportunities to grow
- A friendly and cooperative environment
- A feeling that the organization is second home to the employee

Organization environment includes

 - Culture
- Values
- Company reputation
- Quality of people in the organization
- Employee development and career growth
- Risk taking
- Leading technologies
- Trust

Lack of support from management can sometimes serve as a reason

for employee retention. Supervisor should support his subordinates in
a way so that each one of them is a success. Management should try
to focus on its employees and support them not only in their difficult
times at work but also through the times of personal crisis.
Management can support employees by providing them recognition
and appreciation. Employers can also provide valuable feedback to
employees and make them feel valued to the organization.

 Opportunity- Employees responsibilities in the organization should

help him achieve his personal goals also. Organizations can not keep
aside the individual goals of employees and foster organizations goals.
Employees’ priority is to work for themselves and later on comes the
organization. If he’s not satisfied with his growth, he’ll not be able to
contribute in organization growth. Employees should be trained and
given chance to improve and enhance their skills. Many employers
fear that if the employees are well trained, they’ll leave the
organization for better jobs. Organization should not limit the
resources on which organization’s success depends.
 Quality of worklife- this matters a lot in present times. Mainly
because its not only about earning bread for the family but much
more.

EMPLOYEE ATTRITION

In order to understand importance of retention we should know what

employee attrition means

Defining Attrition: "A reduction in the number of employees through

retirement, resignation or death"

Defining Attrition rate: "the rate of shrinkage in size or number"

Attrition In JPL- would mean separation on account of resignation only as
a percentage of the total manpower at the end of the period concerned in
unit/ officer/ company.

Attrition rate in JPL- total number of people resigned as a percentage of

total manpower available at the end of concerned period.

Rate= total no. of people resigned X 100

Total no. of people at the end of the period

Although in general it should be

= total no. of people left X 100

Average no. of employees at the end of the period

Attrition rate in JPL in last three years

Particulars 2007- 2008- 2009-

08 09 10
No. of employees at the end of the year 394 497 547

No. of employees the left the company in that 53 63 68

year
Attrition rate 13.45 12.68 12.43

Rate= total no. of people resigned X

100

Total no. of people at the end of the

period

Exit Interview analysis –

In the most straightforward terms, an exit interview is simply a means

of determining the reasons why a departing employee has decided to leave
an organization. In fact, it appears that many organizations take this
definition literally
 A structured system of exit surveys can play an integral role in a well-
planned program of employee satisfaction and work climate research

JPL has a proper exit interview policy in place. Also there is a systematic
exit interview form that details out various factors about the decision.

The top ten reasons for leaving the company according to the exit
interview analysis are as follows (the factors are numbered as per their
ranks)-

1. Salary and compensation

2. Welfare facilities
3. People policies
4. People processes
5. Reward and recognition
6. Performance management system
7. Empowerment
8. Overall work environment in organization
9. Quality of work life
10. Work system and processes

Chapter 4

Data analysis and

interpretation
1. I know what is expected of me at work.

5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree

1 2 3 4

10%
18%

30%

42%
Inference- more than 20 (42%) respondents agree to the above statement.
This means majority of the employees are aware of their responsibilities at
work.

2. I have right tools and supplies to do my job well

1 2 3 4

16% 16%

5 Strongly agree
4 Agree
3 Somewhat agree
24%
2 Disagree
1 Strongly disagree
44%

Inference- more than 20 respondents i.e. 44% agree that they have all the
supplies to perform their duties. This means that there are enough
resources available to work with.

3. Amount of work is reasonable

1 2 3 4

16% 16%

5 Strongly agree
20% 4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree
48%
Inference- though 48% respondents agree that the work load is reasonable
but there are about 16% respondents who disagree with the same.

4) My job brings out my most creative ideas.

5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree

1 2 3 4 5

2%
10% 8%

32%

48%

Inference- here 24 respondents i.e. 48% agree that their job brings out their
creative ideas but about 10% respondents disagree with the same. This
disparity is wide with the difference in level i.e. respondents from middle to
top management level were those who disagreed.
5) At work, I have support to balance my work and personal life.

5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree

1 2 3 4 5

10% 8%

18%

38%

26%

Inference- 19 respondents i.e. 38% agree to the above statement but there is
another 26% that disagrees. This segment consists of a mix of respondents
from across all levels, most of whom are married and find it difficult to give
enough time for their families.

6) I receive meaningful recognition for doing a good work.

 5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree

1 2 3 4 5

4%
6%
20%

40%

30%

Inference- majority of the respondents opted for ‘somewhat agree’, this

shows the level of discontent regarding the recognition given to employees at
work.

7) I have enough opportunities at work to learn and grow.

 1 2 3 4

12%
22%

5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
12% 1 Strongly disagree

54%

Inference- 27 respondents i.e. 54% agreed to the above statement. But

another 22% disagreed to the same, this segment essentially consisted of
top and middle management levels.

8) Colleagues help each other when needed.

5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree
 1 2 3 4

2%

30%

36%

32%

Inference- more than60% of the respondents agree to the statement, which

shows that the relation between co-workers is cordial and cooperative

9) There is two way communication between workers regarding any work

that need to be done.

1 2 3 4

12%
16%

5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
30%
1 Strongly disagree

42%

Inference- 42% i.e 21 respondents agree to the statement, though about 6

respondents which are essentially from the lower management levels.

10) I have a friend at workplace with whom I can share new ideas
 5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree

1 2 3 4 5

6%
16% 6%

30%

42%

Inference- more than 50% respondents agree to the above statement.

Majority of the respondents have friendly relations with their work
colleagues.

11) I have positive working relationships with my colleagues.

 5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree

1 2 3

20% 22%

58%

Inference- almost all the respondents have positive work relationships. The
shows a conducive atmosphere for better performance

12) My superiors treat me with respect.

 5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree

1 2 3 4

6%

28%
24%

42%

Inference- more than 50 % respondents agree that they get respectful

treatment from their superiors, which reflects that the senior officials treat
their subordinates with due respect.

13) My superior encourages my development at work.

 1 2 3

24%
30% 5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree

46%

Inference- almost all employees agree that their superiors provide them
opportunities to develop as a professional and as a person at work.

14) My superior communicates well with all department members.

1 2 3 4

8%

10%
32% 5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree

50%

Inference- a wide majority of the respondents agree that their senior officials
have good intra- department communication.

15) My superior tells me about my progress regularly.

 5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree

1 2 3 4 5

8%
12%

12%

38%
30%

Inference- there is a mix response to this statement with 50% in favour and
50% not agreeing, this reflects the discontent that employees have towards
their superiors.

16) I strive to improve my department results.

 5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree

1 2 3

22%

32%

46%

Inference- almost all respondents said that they endeavor to reach the
predetermined goals of their department.

17) I have opportunities to provide input into decisions that affect my work.
 1 2 3 4 5

4%
6%
5 Strongly agree
28% 4 Agree
18% 3 Somewhat agree
2 Disagree
1 Strongly disagree

44%

Inference- more than 20 i.e. 44% respondents agree that they have enough
opportunities to provide their opinions and ideas in work related matters.
This reflects the recognition they are given at their work places.

18) My work contributes to the achievement of departmental goals.

1 2 3

10%

24%
5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree

66%

Inference- about 90% of respondents agree that their work contributes to

the departmental goals, which shows level of importance they give to their
respective jobs.

19) I take pride in working for this organization.

 5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree

1 2 3

16%

32%

52%

Inference- majority of the respondents agree to the above statement. It

reflects the worth that they give to the company.

20) I would recommend others to join this company.

 1 2 3 4

4%
8%

32% 5 Strongly agree

4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree

56%

Inference- more than 90% respondents agreed that they would recommend
others to join.

21) Here change is viewed as a challenge and an opportunity.

1 2 3 4

10%
16%

5 Strongly agree
4 Agree
26%
3 Somewhat agree
2 Disagree
1 Strongly disagree

48%

Inference- a majority of about 65% agrees to the above statement. This also
shows how innovative and flexible the company is.

22) Organizational policies are periodically reviewed for effectiveness.

 5 Strongly agree
4 Agree
3 Somewhat agree
2 Disagree
1 Strongly disagree

1 2 3 4 5

10% 8%

8%

36%

38%

Inference- less than 50% respondents agree to the above statement, which
shows that the organizational policies are not frequently updated.

Category wise analysis

a) About job
 JOB RELATED
250

200

150
JOB RELATED

100

50

0
Strongly Disagree Disagree Somewhat Agree Agree Strongly agree

Inference- most of the responses were ‘agree’ for job related questions which
shows that majority of the respondents are satisfied with their work and
related matters.

b) About people

PEOPLE RELATED
140

120

100

80 PEOPLE RELATED

60

40

20

0
Strongly Disagree Disagree Somewhat Agree Agree Strongly agree

Inference- majority of the respondents have agreed to statements related to

people i.e. superiors, colleagues etc. This reflects the positive work
relationships among employees

c) About department
 DEPARTMENT RELATED
120

100

80
DEPARTMENT RELATED
60

40

20

0
Strongly Disagree Disagree Somewhat Agree Agree Strongly agree

Inference- here again the results indicate that employees are fairly satisfied
with the working of their departments. They know how their department is
coordinated with others and how their work effects the achievements of
goals.

d) About organization

ORGANIZATION RELATED
80

70

60

50
ORGANIZATION RELATED
40

30

20

10

0
Strongly Disagree Disagree Somewhat Agree Agree Strongly agree

Inference- this shows how much pride they take in working with the
company and their belief in its values.
Expected improvement areas

The following are the areas in which employees expect an improvement from
the side of the company. The are given in order of their preferences-

1. Training and development

2. Career planning
3. Welfare activities
4. Rewards and recognitions
5. Working conditions

Most of the employees opine that training and development function should
be improved not only in terms of implementation but also in terms of need
identification. Also second most important factor being career planning in
which PMS, Career path etc are most concerned areas.
Chapter 5
Findings
The major observation and findings from the survey and the from informal
interaction with the employees are-

1) Most of the employees know what is expected from them at work

which means that their work responsibilities are clearly laid and
understood by them.
2) Most of them believe that they have enough resources to perform their
jobs and that their work load is reasonable
3) Almost all employees except some at the top level believe that they
have enough room to grow as a person and a professional in the
company.
4) Employees are satisfied with inter department communication and
coordination among the departments.
5) The lack of proper feedback from the superiors about performance of
employees.
6) Almost all employees feel their work contributes to the overall
achievement of the unit goals and they all strive to give their best fro
the same
7) The superiors treat their subordinates with due respect and provide
opportunities to develop their potential
8) Employees are not clear how their KRAs and KPIs are set and how
their performance is rated.
9) Although regular training programs are conducted, many employees
feel they
10) Factors other than economic rewards do indeed influence the decision
of an employee to remain with the organization.
11) There are still many outdated policies in place.
12) Managers lack in good people management skills.
13) Almost all employees take pride in working for the company and are
likely to suggest others to join this company.
14) The work relation among peers seem to be amicable and cooperative
15) At entry and lower management level attrition is highest and the main
reasons according to the employees for this are
 - Lower pay than other competitors
- Unclear KRAs and KPIs
- Inability to align personal goals with those of the company
- Lack of guidance and support from immediate bosses
- Non transparency in performance rating
16) On the other hand higher level employees enumerated some other
reasons
- Inflexibility of management
- Lack of freedom to take immediate decisions.
- Lack of learning space as an individual
- No work life balance
- Welfare activities like education for children,
17) All the employees are aware and take pride in the vision and mission
but have a feeling that it is not percolated down the level.
18) The management is centralized at the corporate office and any new
practice needs an approval from there, which not only slows down the
decision making but also limits the area of authority of top officials at
plant level. Employees have a feeling that the decisions are made
indifferently without considering the ground realities at the plant level.
 Chapter 6
Recommendation
and
suggestions
1. More programs should be conducted for instilling a sense of ownership
and loyalty among employees, to make them feel a part of the
organization.
2. Career planning for each individual should be done, involving extensive
career mapping which will not only decide the path at which their career
grows but also the level of performance to reach the next level.
3. The PMS should be made more transparent i.e. the criteria on which the
performance is rated should be made known; this can be done at
department level by the HODs.
4. An effort should be made to provide a proper outlet for any suggestion or
new ideas or any sort of grievance. For this purpose In-house facilitators,
who can be a person from the same department can be appointed.
5. The employees should be given proper orientation and training regarding
the setting of their KRAs and KPIs, so that they don’t only write just
something but find the exact areas in which they should perform.
6. Organization structure to be designed on the basis of “time taken
between stimuli and response”. Stimuli at shop floor level and ultimate
response from the top of the hierarchy.
7. There should be a retention policy in place which will delineate the
various benefits that the employees receive from a long term relation with
the company.
8. There should be programs for manager for improving their people
management skills. Meets can be arranged periodically where officials of
same level or even different levels can come together and discuss things
like, how they handled a difficult situation at work or how they motivated
their juniors to do something etc. this will give them ready reference for
handling people matters in a similar setting.
9. A proper follow up with the HODs should be there to ensure that the
right candidate is given the training identified for him/her.
10. Establishing a system under which the employees can monitor their
performance during any period and there by eliminate any
misunderstanding as to their performance rating.
11. Non financial incentive plans should also be implemented; it can
improve the productivity level of the employees.
12. Organization should give importance to communication between
employees and gain co-ordination through it, for this formal policies can
be placed which will help to follow this practice.
13. Skills of the employees should be appreciated. In addition to present
recognition programs, felicitation programs can be conducted for
employees at department levels, this can be done at the start of any
identified period at the work place itself.
14. If the centralized system of management is changed to a decentralized
one, then there would be active and committed participation of staff for
the success of the organization.
15. Something like retention bonuses can be given to employees who have
worked with the company for a longer period or any non monetary
reward can be offered.
 Chapter 7
Conclusion
 The study concludes that, the various strategies for retaining
employees in JINDAL POWER LTD are found effective but not highly
effective, there should be a retention policy in place.. The study highlighted
so many factors which will help to retain the employees. The study was
conducted among 50 employees and collected information through
structured questionnaire. The study helped to findings which were related
with various factors and practices which are in place in the organization.

The performance review and training activities really play a major role
in motivating the employees of the organization. It is a major factor that
makes an employee feels good in his work and results in his satisfaction too.
The organization can concentrate on areas which are evolved from this study
in order to make the programs more effective.
 Annexure A

EXIT INTERVIEW FORM

JPL/HR/ Date: ……………………….

Dear Mr. /Ms.……………………………….

At the outset I would like to express sincere gratitude on behalf of Jindal Management for

rendering fruitful services for the overall growth of the company. Since you have decided to

leave the company, I request you to please fill up the Exit Interview form and give us your

free and frank opinion and suggestion about the Organization. We assure you that whatever

inputs are given by you will be kept confidential and will be used only for the overall

improvements in the organization and its practices.

We wish you all the success in the future.

Head (HR)

1.0 EMPLOYEE DETAILS

Name of the Employee

Employee Number
Date of Birth
Designation & Department
Date of Joining
Designation at the time of Joining
Designation at the time of leaving
Salary at the time of Joining
Salary at the time of leaving
Name of Head of Department

Contact Telephone Nos./Mobile No.

Email ID
Unit / Site Address

1. What was your Reason for Joining JPL?

2. Did you join JPL with an intent to Stay Long?

3. Reasons of your separation? Pl. (√) give priority no., 1 for top most reason
Priority No. Priority
No.

(i) Better Compensation ( ) (ii) Dissatisfaction with job content ( )

and job challenges.
(iii) Dissatisfaction with growth in the company ( ) (iv) Carrier opportunities ( )
(v) Inter personal relation with (a) Superiors ( ) (vi) Place of posting ( )
(b) Peers (c) Subordinate

(vii) Non fulfillment of commitment given by ( ) (viii) Any other- pls specify………………….… ( )
Company, please elaborate

4. Elaborate on the above reasons

5. When did you think of parting with us?

6. Was there any Trigger (Reason) that made you take this decision? If yes, please explain /
elaborate

7. Have you found any difference in your expectations and the reality, which existed in
Company? (Please specify)

8. Please rate the following in the below mentioned manner on 10 points scele, 1 being
the least.

I Salary & Compensation 10 9 8 7 6 5 4 3 2 1

Ii Reward & Recognition 10 9 8 7 6 5 4 3 2 1
Iii Welfare Facilities 10 9 8 7 6 5 4 3 2 1
Iv People Policies 10 9 8 7 6 5 4 3 2 1
V People Process 10 9 8 7 6 5 4 3 2 1
Vi Work Atmosphere 10 9 8 7 6 5 4 3 2 1
Vii Work Systems and Processes 10 9 8 7 6 5 4 3 2 1
Viii Peer Relationship 10 9 8 7 6 5 4 3 2 1
Ix Superior Relationship 10 9 8 7 6 5 4 3 2 1
X Adherence to core values 10 9 8 7 6 5 4 3 2 1
Xi Job challenges. 10 9 8 7 6 5 4 3 2 1
Xii Learning and Development 10 9 8 7 6 5 4 3 2 1
Xiii Work Engagement 10 9 8 7 6 5 4 3 2 1
Xiv Performance Management System 10 9 8 7 6 5 4 3 2 1
Xv Freedom to Take Risk 10 9 8 7 6 5 4 3 2 1
Xvi Empowerment 10 9 8 7 6 5 4 3 2 1
Xvii Quality of work life in the Organization. 10 9 8 7 6 5 4 3 2 1
Xvii Evaluate the overall work environment in the 10 9 8 7 6 5 4 3 2 1
Organization.
i
Xix Your self evaluation regarding your contribution/ 10 9 8 7 6 5 4 3 2 1
performance in the Company

If your response is 1 or 2, please specify reason:

9. What did you find unique about the Organization?

10. [a] What in your opinion are the strengths of the Organization?

10. [b] What in your opinion are the weaknesses of Organization?

11. [a] Highlight any three happiest moments for you in company.

(i)

(ii)

(iii)

11. [b] Which things made you sad/depressed while you were working in company?

12. Please suggestions for improvement in the Organization?

13. Did you ever discuss about any dissatisfaction with your Superior/ Peers/HR Head? If
yes, please elaborate.

14. (a) Would you recommend this company to your friends & colleagues for employment?
Yes/No/ Don’t know.

14(b) Please give reasons:

15 Your plans after leaving us :

15.1 Which company are you joining and why did you choose the same?

15.2 Hike in compensation, you are getting.

Comments of Head of Department.

Name & Signature Date :

Comments of Head of Unit

Name & Signature Date :

Comments of Head Unit HR/Representative of Director (HR)

Name & Signature Date :

Comments of Director [HR] (if applicable).

Name & Signature Date :

Comments of Vice Chairman & Chief Executive Officer (If applicable).

Signature Date :

Comments of Executive Vice Chairman & Managing Director.(if applicable)

Signature Date :

ANNEXURE B
 Survey Questionnaire

 This questionnaire is purely intended for learning purposes.

 Any information collected herewith will be kept confidential and anonymity of
the participants will be maintained.
 The participants are requested to tick the appropriate option.
The whole questionnaire is divided into two sections.
First section contains questions related to job, work colleagues, superiors,
department concerned and organization as a whole.
While section two will give you an opportunity to highlight the areas in which
you expect improvement from the side of the organization.
Before moving on to the questions, please fill up the following information-

a) Department-

b) Designation (pick your category)

Entry level (MT/JET) Jr. Mgt ( Exec. to Mgr.)
Middle Mgt.(Sr.Mgr to DGM) Top Mgt. (Sr. DGM to President)

c) Experience with company (in years)

 0-1 1-3 3-5 5 above
d) Gender- MALE FEMALE

e) Qualification-
Diploma Graduation Post Graduation Above P.G.

f) Age (in years)

20-30 31-40 41-50 above 50

Section I
(Job related)
1. I know what is expected of me at work.
Strongly disagree Disagree Somewhat agree Agree Strongly agree

2. I have right tools and supplies to do my job well.

Strongly disagree Disagree Somewhat agree Agree Strongly agree

3. Amount of work is reasonable.

Strongly disagree Disagree Somewhat agree Agree Strongly agree

.
4. My job brings out my most creative ideas.
Strongly disagree Disagree Somewhat agree Agree Strongly agree

5. At work, I have support to balance my work and personal life.

Strongly disagree Disagree Somewhat agree Agree Strongly agree

6. I receive meaningful recognition for doing a good work.

Strongly disagree Disagree Somewhat agree Agree Strongly agree
 7. I have enough opportunities at work to learn and grow.
Strongly disagree Disagree Somewhat agree Agree Strongly agree

(Regarding your co workers)

8. Colleagues help each other when needed.
Strongly disagree Disagree Somewhat agree Agree Strongly agree

9. There is two way communication between workers regarding any work that need
to be done.
Strongly disagree Disagree Somewhat agree Agree Strongly agree

10. I have a friend at workplace with whom I can share new ideas.
Strongly disagree Disagree Somewhat agree Agree Strongly agree

11. I have positive working relationships with my colleagues.

Strongly disagree Disagree Somewhat agree Agree Strongly agree

(Regarding your Supervisors / Managers)

12. My superiors treat me with respect.
Strongly disagree Disagree Somewhat agree Agree Strongly agree

13. My superior encourages my development at work.

Strongly disagree Disagree Somewhat agree Agree Strongly agree

14. My superior communicates well with all department members.

Strongly disagree Disagree Somewhat agree Agree Strongly agree

15. My superior tells me about my progress regularly.

Strongly disagree Disagree Somewhat agree Agree Strongly agree
 (Department related)
16. I strive to improve my department results.
Strongly disagree Disagree Somewhat agree Agree Strongly agree

17. I have opportunities to provide input into decisions that affect my work.
Strongly disagree Disagree Somewhat agree Agree Strongly agree

18. My work contributes to the achievement of departmental goals.

Strongly disagree Disagree Somewhat agree Agree Strongly agree

(Regarding Organization as a whole)

19. I take pride in working for this organization.
Strongly disagree Disagree Somewhat agree Agree Strongly agree

20. I would recommend others to join this company.

Strongly disagree Disagree Somewhat agree Agree Strongly agree

21. Here change is viewed as a challenge and an opportunity.

Strongly disagree Disagree Somewhat agree Agree Strongly agree

22. Organizational policies are periodically reviewed for effectiveness.

Strongly disagree Disagree Somewhat agree Agree Strongly agree

Section II
1. What is your overall view about the company?
Highly dissatisfied Dissatisfied Fairly Satisfied Satisfied Highly Satisfied

2. According to you in which of the following areas an improvement is required.

a) Working conditions (physical facilities, work environment etc)
b) Welfare activities ( like canteen, conveyance, medical etc)
c) Training and development
d) Career planning (PMS, promotion etc)
e) Rewards and recognitions

(Thank you for your kind support)

ANNEXURE C
 Questionnaire for HRD

1. What is the total number of employees in JPL in past three years.

Year No. of employees

2009- 2010
2008- 09
2007- 08

2. What is the number on employees at

a) Entry level (MT/JET)

b) Jr. Mgt ( Exec. to Mgr.)
c) Middle Mgt.(Sr.Mgr to DGM)
d) Top Mgt. (Sr. DGM to President)

3. What is the rate of attrition over the last three years?

Year Attrition rate

2009- 2010
2008- 09
2007- 08

4. At which level was the attrition rate highest?

5. Do you have a systematic exit interview form?

 Yes No

6. What were the main reasons according to exit interview analysis for leaving the
organization?

7. Do you have any retention policy? If yes, what are the main features of the
policy? If not, is there any proposal for the same?

8. What are the main strategies adopted by management for retaining its
employees?

9. Are there any schemes for rewarding the employees who stay with the company?
If yes, please give some important schemes.

10. Are there any new schemes/ strategies implemented in the past year for
reducing attrition? If yes, please give details.