PROJECT REPORT
ON
EMPLOYEE RETENTION
Undertaken at
ABB LIMITED, FARIDABAD
Submitted towards partial fulfillment of the requirement for
the award of the degree of
Submitted by:
TARUNA VERMA
MBA (3RD ) Semester
ACKNOWLEDGEMENT
The most important task of report writing is expressing my sincere thanks and gratitude
to all those from whose guidance, co-operation and sincere advice I am able to complete
the study and made it possible for this report to be in your hand today.
I wish to acknowledge my thanks to supervisor and project guide Mr. Gaurav Thakral
(AVP,ABB-MCBS) under whose guidance, I had encouragement throughout the study
and without whose guidance and constant support this project could not have been
success. I would also like to thank Prof. Hariom Sharma, Mrs. Manpreet Kaur
(Faculty, IMT) who gave me specific tips to proceed the project from their busy
schedule. Their constant guidance helped me in knowing more about technical aspect as
well as business aspect.
Finally I would like to place a word of appreciation on record for all those who have
directly or indirectly help me for the successful completion of this project.
(TARUNA VERMA)
PREFACE
Project report exposes to functional areas of management & also provides an opportunity
to be a part of the real corporate world.
This project was given to me with a view to study the actual operation of the company.
Work to be done was to find out the problems in the Employee Attrition functions and
suggest areas of improvement wherever needed by direct survey of the employees. A
survey was conducted with some Payroll employees not contracted (Middle level
management) of ABB INDIA LTD. The information was obtained from various
departments of the organization like MCBS, PTPY, PTPS, EBOP, RN, Services,
Turbocharger and Instrumentation.
AREAS COVERED ARE:
1. Competitive Compensation & Benefits
2. Sound Organizational Structure
3. Leadership & Motivating Work Environment
4. Recognition, Respect, Achievement & Rewards
5. Employee Empowerment, Self development & Creativity
6. Economic Security (or Wealth)
TABLE OF CONTENTS
S.NO.
1
2
a)
b)
3
a)
b)
d)
e)
4
a)
CONTENTS
PAGE NO.
Chapter-1
Industry profile
Chapetr-2
Company profile
Human Resource Function in ABB
Business Ethics & Integrity
Chapter-3
Objective/Scope of the study
Rationale/Focus/Limitations of the study
Hertzberg Two Factor Theory
KEis Employee Retention Wheel
Chapter-4
Introduction of Topic
Meaning
5-17
18-31
32-34
35-37
39-40
40-42
43
44
45-46
47-48
49-57
Strategies, HR Update
58-66
67-70
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6
7
a)
b)
c)
d)
e)
71-73
74-81
82-84
85-86
87-88
89-90
91-95
"ABB is global leader in power and automation technologies that enable utility and
industry customers to improve their performance while lowering environmental
impact. The ABB Group of companies operates in around 100 countries and
employs about 104,000 people.
Automation
Building
Chemical
Consumer
Electric utilities
Foundry
Gas utilities
Life sciences
Manufacturing
Metals
Pharmaceuticals
Power generation
Printing
Refining
System integrators
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ABB deliver their products and expertise through channel partners such as original
equipment manufacturers, engineering, procurement and construction firms, wholesalers
and distributors.
A LEADER IN ALL MAJOR MARKETS:ABB enjoys leading positions in all major markets in the world, including growth
markets such as China and India. It is profiting from ongoing power infrastructure
development in the U.S. and Middle East. Their automation technologies business has
recorded strong growth in the oil and gas industry, metals, minerals and marine sectors.
They directly benefit from their global operations and supply footprint which allows them
to lower the cost of their products. Their robotics division, for example, is now based in
Shanghai close to key customers and a booming automotive market. But, at the same
time, they still rely on the more mature markets of Europe and North America for sales in
their traditional regions and technology development.
Maintaining market leadership also depends on a continuing commitment to R&D and
technology innovation. In 2005, they spent $960 million on research and order-related
development in their two divisions a six percent increase over 2004.
ABB MISSION As one of the worlds leading engineering companies, We help our customers to use
electrical power effectively and increase industrial productivity in a sustainable way.
ABB VISIONABB delivers attractive profitable growth by providing leading power and automation
technologies to customers throughout the world. We help them to improve their
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Performance and productivity as well as to save energy and lower environment impact.
Innovation and Quality are the key characteristics of our product and service offering. We
built on long lasting and value creating partnerships with customers and suppliers.
By 2009, ABB will be recognized as top global engineering company in term of
market impact, growth and profitability, Value creation, Sustainability and Ethical
behavior.
STRATEGY
Build on our leadership in power and automation technologies for utility and industry
customers.
CUSTOMERS
The customers are the heart of our business and all our actions must lead to delighting
them.
PEOPLE
Leadership based on respect for value, trust &accountability Say what we mean, mean
what we say.
CULTURE
Shared Intentions Our ABB, open communication & dialogue, fast decisions,
execution, disciplined culture, acting in overall interest of ABB.
GOALS
Our goal is to create value for our stakeholders by meeting the needs of our customers,
employees & the communities where we do business.
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STRUCTURE
Slimmer structure reduces complexity and reflects focused portfolio.
Accountability
Delivery
Continuous improvement
2. Respect
Leadership
Professionalism
Commitment
3. Determination
Profitability
Quality
Technology/Innovation
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Global Outlook
ABB TECHNOLOGY AT WORK AROUND THE WORLD:1. UNITED STATES
2. MEXICO
3. BRAZIL
4. FINLAND AND ESTINO
5. GERMANY
6. SOUTH AFRICA
7. RUSSIA
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ECONOMIC OUTLOOK:The geographical distribution of consolidated orders in 2005, 2004 and 2003 was
approximately as follows:
The following table presents supplemental information on key data for ABB and
new organizational structure that took effect as of January, 2006.
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16
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ABB INDIA
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ABB India has 8 manufacturing units, 26 marketing offices, 8 service centers and 3
training centers across the country. In addition to these, the company has a channel
partner network of around 500 partners to facilitate market penetration for its fast
growing standard products and services business. ABB Indias capital expenditure in
2006 included an investment of US$ 10.9 million.
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BOARD OF DIRECTORS
Mr.Dinesh Paliwal
(Chairman)
Mr.Peter Leupp
(Director)
Mr.Ravi Uppal
(Vice-Chairman &
Managing director)
Mr.Peter Smits
(Director)
Mr.Nasser Munjee
Mr.N.S.Raghavan
(External Director)
(Director)
Mr.Tom Sioekvist
(Director)
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ABB BUSINESS IN INDIA :ABB, the world's no. 1 in power technologies, provides utilities, industries and channel
partners with access to a rich portfolio of technologies. Businesses are:1. POWER TECHNOLOGY
2. AUTOMATION TECHNOLOGY
3. BUILDING SYSTEMS
Power systems
T & D Systems, Utility consulting and power system services , HVDC & FACTS
Utility automation
Network
Management,
Substation
Automation,
Plant
Automation,
Communication.
PRODUCT BUSINESSES:
Transformers
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Utility
PRODUCT BUSINESSES:
Process Automation
Automation products
Manufacturing Automation
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LOCATIONS IN INDIA:-
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26
27
28
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Value creation
Regular system review in accordance with standard and business needs to ensure
its continuing suitability, adequacy and effectivenes
Efficiency gain
Enhanced competitiveness
Based on a group wide shared strategy assigning clear roles and responsibilities
to key stake holders
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INDIA
ORGANIZATIONAL STRUCTURE
ABB CULTURE
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Reliance Energy
Hyundai
Dr.Reddys
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Samtel
DMRC
Grasim
ONGC
Tata steel
Balco
Bharat forge
HP Invent
Indian Oil
Hindustan Petroleum
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(b) HR PROCESS:PERFORMANCE MANAGEMENT SYSTEM:ABBs performance management system is a strategic tool, to facilitate employees to
align their personal objectives and efforts to the organizations objectives. Its a paperless
PMS, which can be accessed through Caf-HR (Employee self service tool)
Caf-HR helps employees to view, create & maintain data any time, anywhere
through their web-browser.
TRAINING AND EVENT MANAGEMENT SYSTEM:ABBs training and event management system is a tool that helps employees to
develop their skills and competencies in line with business needs. The training needs are
both managers recommendations as well as employees self initiatives. ABBs training &
event management is again an online tool accessible through Caf-HR.
INCENTIVE SCHEMES:-
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The variable pay component (VCTC) of the total cost to company (CTC) for
management staff, reflects maximum earnable amount that an employee can earn based
on performance .The incentive plans, based on which the variable pay is paid out are
follows. There are three kinds of incentive plans that are applicable to management staff:1. Standard Incentive plan
2. Region marketing Incentive plan
3. At Sales Incentive plan
E-RECRUITMENT PROCESS IN ABB:The steps in the e-Recruitment process in ABB are very much relying on the existing
e-HR applications; now in operational use in more then 25 countries.
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Ensure continuous training and awareness for employees on how to handle ethical
issues, as well as timely advice and guidance.
Regularly monitor ethical conduct and ensure that accessible systems are in place
for employees or others to report potential violations.
ABB expects from its employees a sound level of allegiance to the Group. This includes
adherence to the Groups non-competition policy by persons possessing significant
confidential information.
The Human Resources Team in India
Their customers are the employees of ABB and their business is to provide solutions and
services to them ontime, everytime ,anytime and to leverage the human capital.
Presenting the HR Team in ABB India.
Vadodara
Bangalore
Corporate Research Centre Bangalore
New Delhi
Anjan Chatterjee
Abhijeet Jain
Ajay Himanshu
Vijender Singh
Vijay Chaudhary
Ranjani Manjunath
Mumbai
Nashik
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Process planning
Supply Management
purchasing
Project Management
Order handling
Process validation
Identification and traceability
Control of nonconforming product
Service
Support Processes
Resource Management (HRM, Information, Infrastructure)
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INTRODUCTION:-
Employee retention is a major cause of concern today not only in the developed
economies like the US (where a lot of attentions devoted to this issue)also in developing
economies like INDIA. It is expected that by 2010, there would be around 10 million
more jobs than the number of qualified/ skilled people in the job market. Analysts
attribute a combination of factors like retirement of baby boomers and less number of
workers in the age group of 25 to 35 as reasons for this shortage. In a scenario where
getting new people to fill the job vacancies is difficult, retaining the existing employees
become s all the more critical for the HR Managers.
Over two-thirds(70%) of HR managers state that employee retention is a primary
business concern, while 40% of HR managers report an increase in worker turnover
during the past eighteen months. Though HR managers currently find employee retention
a business challenge, long term demographic changes, such as the retiring Baby boomer
population have the potential to aggravate this issue.
With the growth in the economy, acquisition and retention of employees
have become the key challenges for HR managers in INDIA. This issue attributed to the
changing lifestyles, death of motivation, increasing opportunities for assignments abroad
and decreasing loyalty towards the organization. Retention of excellent employees is one
of the most important challenges in organizations today.
In order to address these issues, this study designed to help employers to better
understand turnover and retention challenges. This study confirms that employers view
workforce retention as one of the most critical issues facing them and identifies strategies
& techniques for retaining the best employees while the competition for human talent
escalates.
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OBJECTIVES:
To find out the root cause of existing employee turnover problem and retention needs of
top talent.
retention.
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like the strongest Brand Ambassadors for every company. Retention of excellent
employees is one of the most important challenge in organizations today.
Hence the rationale behind doing this project is to Identify the root cause of
attrition of employees and managements ability to hire, motivate and retain the staff. So
that it could become the Market Leader with skilled teamwork and could improve the
productivity.
FOCUS AREA:This in- house project shows that employee attitudes are a better predictor of future
employee behavior than past behavior. The Focus area are as follows:
Employee Loyalty
Corporate Culture
Supervisor/coworkers Relations
Corporate communications
Employee
Empowerment/Economic
Advancement etc.
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Security/Respect
and
LIMITATIONS:1. Insufficient data for project work:The sample size is small to reflect the opinion of whole organization.
2. Lack o f Time:The time provided for conducting the study also limited its scope and coverage.
3. Answers given by respondents have been believed to be taken for granted to truly reflect
their desire.
4. Sometimes respondent were quite engaged with their job to provide the assistance.
5. It was difficult to find out the root cause of attrition rate of other organizations
(competitors) due to the absence of reliable source for collecting the data.
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LITERATURE REVIEW
1. Subsequent research has indicated that actual alternatives are a better predictor of
individual turnover than perceived opportunities. Research on the impact of
unemployment rates as a proxy for actual opportunities in employee turnover
revealed that unemployment rates affected the job-satisfaction/turnover intent
relationship but not actual turnover (Kirschenbaum & Mano-Negrin, 1999).
2. Tang et al's (2000) study confirmed the link between commitment and actual
turnover and Griffeth et al's(2000) analysis showed that organizational
commitment was a better predictor of turnover than overall job satisfaction.
3. Allen & Meyer (1990) investigated the nature of the link between turnover and
the three components of attitudinal commitment: affective commitment
refers to employees' emotional attachment to, identification with and involvement in
the organization; continuance commitment refers to commitment base on costs that
employees associate with leaving the organization; and normative commitment refers
to employees' feelings of obligation to remain with the organization. Put simply,
employees with strong affective commitment stay with an organization because they
want, those with strong continuance commitment stay because they need to, and those
with strong normative commitment stay because they feel they ought to. Allen and
Meyer's study indicated that all three components of commitment were a negative
indicator of turnover.
4. Griffeth et al (2000) found that overall job satisfaction modestly predicted
turnover. In a recent New Zealand study, Boxall et al (2003) found the main reason by
far for people leaving their employer was for more interesting work elsewhere. It is
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generally accepted that the effect of job satisfaction on turnover is less than that of
organisational commitment.
Job satisfaction
Working conditions
work content
Pay
Autonomy
Hours
The challenge
Relativity
Achievements
Security
Lack of prospects
Responsibility
Poor communication
Good relationship
Lack of direction
(Hygiene factors)
(Motivation factors)
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THE KEIS EMPLOYEE RETENTION WHEEL:The first step to improving employee retention is to understand why employees stay with
their current organization. Many "experts" dwell on the reasons employees leave, which
is not as important or revealing as the reasons they stay.
Keis Employee Retention Wheel is a tool to measure the core needs that keep employees
successful at their jobs, thus reducing the high costs associated with unwanted employee
turnover.
Controllable employee turnover is cause by only two things: Bad hiring and Bad
treatment. Employers try numerous things to keep good employees. However, studies
show that the programs in the outer two rings do not have as great impact on retaining
employees as the process identified in the center of Keis Employee Retention Wheel.
Employers need to focus on providing supervisors with the tools that implement the
processes at the center of the wheel.
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EMPLOYEE RETENTION
MEANING OF RETENTION:The act of retaining/keeping of a thing within ones power or possession is
RETENTION.
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NEED OF EMPLOYEE RETENTION:BUSINESS success is more dependent than ever before on people. Strategies can be
copied. Technology can get outdated. Thus, the human capital is getting to be the real
currency of the new economy.
Companies are challenged to work doubly hard to remain competitive to survive. In
meeting this challenge, therefore, organizations need to retain their high performers and
for some, hire individuals who can help bring the organization closer to its goals. Thus,
the "war for talent" might even be more apparent in these tough conditions.
In todays turbulent,often chaotic environment, it is getting more difficult to find and
keep talented workers.Each and every day good employees quit their employers for better
jobs elsewhere. U.S. businesses spend over $200 billion annually recruiting and replacing
their employees. Average organizations spend more money on recruitment and
replacement programs, while good organizations invest in employee retention. Now,
more than ever, it is important to become an employer of choice organization.
Successful organizations realize employee retention and talent management are integral
to sustaining their leadership and growth in the marketplace. Becoming an Employer of
Choice by retaining high-caliber employees in today's labor market should be the highest
priority.
THE EMPLOYEE RETENTION CHALLENGE:In a world where technologies, processes and products are quickly duplicated
by competitors and the pace of change and level of competition are constantly increasing.
People are the key to the most reliable source of advantage better service, increased
responsiveness, strong customer relationships , creativity and innovation that keep a
company one step ahead .
At the same time, however, its getting tougher to hold on to those employees.
Unemployment is at its lowest point in a quarter of a century. Retirement is expected to
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reduce management ranks by 20% or moreover the next 5 years. Younger, highly mobile
workers are bringing new values and expectations to the workplace, complicating
retention efforts. And after years of turn moil in business, the traditional sense of
company loyalty has disappeared among virtually all employees.
Thus the problem of employee retention is having an impact far beyond front
line managers and beyond even the HR department. It affects the performance of the
entire company meaning that the ability to keep good employees is rapidly becoming a
critical competitive weapon.
WHY EMPLOYEES QUIT THEIR JOB:Employee leave the organization for many reasons: Some leave for better paying jobs elsewhere.
Dissatisfaction in their present job to seek alternative employment.
Due to poor working conditions, Lack of opportunities/Support for advancement,
conflict, Health hazards.
Resolve performance and attitude problems, inadequate compensation.
Others depart because they do not fit the culture.
Many more exit because their managers and supervisors are not properly trained.
However, there are five important areas that motivate people to leave their jobs.
1. Poor match between the person and the job
2. Poor fit with the organizational climate and culture
3. Poor alignment between pay and performance
4. Poor connections between the individual, their coworkers, and the supervisor
5. Poor opportunities for growth and advancement
These five P's can be addressed successfully. Employee retention begins by paying
attention to what causes low job satisfaction as well as what attracts and retains your
workforce.
EMPLOYEE TURNOVER IS EXPENSIVE:-
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A continual effort to replace departing workersto keep the revolving door full,
instead of stopping it altogetheris bleeding organizations dry. Its expensive to
constantly replace people that turnover. The cost of attracting, recruiting, hiring, training,
and getting new people up to speed is tremendously more costly as well as tremendously
more wasteful than most realize. Just consider these costs:
SAP determined is cost $678,000 in recruiting, training, and missed sales opportunities
every time an experienced sales person quit.
A typical medical center spends over $2 million each year replacing staff members.
High employee turnover is a fact of life these days in many industries. Yet the costs to
recruit and train new employees eat away at bottom line. To stay competitive, its not
only necessary to attract the best possible employees for the job, but develop a clear-cut
strategy to retain them.
PRODUCTIVITY AND PROFITABILITY IS DIRECTLY TIED TO EMPLOYEE RETENTION:-
Studies from the Gallup organization show that employees who have an aboveaverage attitude toward their work will generate: 38 percent higher customer satisfaction scores
22 percent higher productivity
27 percent higher profits for their companies.
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Thats why the retention of skilled and talented employees is very essential in
organizations today.
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"Todays work force brings many things to the table, creative thinking, new ideas,
boundless energy and some issues that have not been dealt with in the past.
Continually it is made apparent that employees are not willing to follow in the
footsteps of prior generations. Donna J. Murphy, Senior Vice president, Jefferson
Bank
WHEN DOES EMPLOYEE TURNOVER BECOME PROBLEMATIC?
There is no set level of employee turnover above which effects on the employing
organization become damaging. Everything depends on the type of labour markets in
which we compete. Where it is relatively easy to find and train new employees quickly
and at relatively little cost (i.e where the labour market is loose), it is possible to sustain
high quality levels of service provision despite having a high turnover rate. By contrast,
where skills are relatively scarce, where recruitment is costly or where it takes several
weeks to fill a vacancy, turnover is likely to be problematic from a management point of
view. This is especially true of situations in which they lose staff to direct competitors or
where customers have developed relationships with individual employees as is the case in
many professional services organizations.
Some employee turnover positively benefits organizations. This happens whenever a poor
performer is replaced by a more effective employee, and can happen when a senior
retirement allows the promotion or acquisition of welcome 'fresh blood'. Moderate levels
of staff turnover can also help to reduce staff costs in organizations where business levels
are unpredictable month on month. In such situations when business is slack it is
straightforward to hold off filling recently created vacancies for some weeks.
When executives attempt Employee Selection internally, they often focus on short term
goals, like sales quotas, rates of return, and the like. Unfortunately, this myopic
conception of Employee Selection often leads executives down the wrong path. The truth
is that building a tight ship means hiring the right people. As the saying goes, "Gold in,
Gold out.
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EMPLOYEE RETENTION:A VITAL STRATEGY:Employee retention is most critical issue facing corporate leaders as a result of the
shortage of skilled labor, economic growth and employee turnover. This project explores
all aspects of the workforce stability issue in the face of unprecedented churning in the
employment market with a focus on retaining their employees. This is one of the hottest
topics for corporate leaders in all fields in the whole world.
Retaining employees means lower training costs and a familiar well established
workforce. Retention requires keeping employees happy, which has other benefits as
well.
Good pay and benefits can, in many industries, be a win-win situation. Employees get
more of what they want, and by minimizing turnover, customers get better service and
shareholders get more profits.
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STEPS FOR EMPLOYEE RETENTION PROGRAM:There are eight steps for perfecting programs to keep the most talented employees:
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A robust economy
Corporate cocooning
Baby boomers striking out on their own after hitting corporate ceilings
Life balance
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Concurrent with these trends, the emerging work force is developing very different
attitudes about their role the workplace. Today's employees place a high priority on the
following:
Sense of community
Volunteerism
To hold the people (employee), its necessary to work counter to prevailing trends
causing the job churning.
CAREER / SELF DEVELOPMENT:It is so important Bcoz employees want to progress. Career development is the
responsibility of employee, but giving a clear line of sight for career growth to the
employee is the employers responsibility. The extent to which the employer assists in
the process improves both the responsibility between the employee and employer and
creates more value for both parties.
The company can encourage this process by:
Sharing information about future business vision and the skill sets that will be
needed.
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CULTURE AND ENVIRONMENT:It may seem obvious that employees will tend to stay with an organization that makes
them feel comfortable- where stress is minimized , full safety measurement/wellness
occurred. And they feel valued and respected. However , too many companies still
operate with a culture based on control and fear, rather than one that provides well
defined direction and values, and emphasizes care for customers and employees alike.
The implication is clear: The more enriching the work environment, the more likely
to retain a staff of satisfied, productive employees.
To maintain low levels of turnover and high level of employee satisfaction, four types
of culture exists:
Culture of choice
Culture of balance
Culture of care
Culture of development
REWARDS AND RECOGNITION PROGRAMS:(Motivate and retain the most valuable assets)
Employees want to be recognized for a job well done. Rewards and recognition
respond to this need by validating performance and motivating employees toward
continuous improvement. Rewarding and recognizing people for performance not
only affect the person being recognized, but others in the organization as well.
When the reward system is credible, rewards are meaningful; however, if the reward
system is broken, the opposite effect will occur.Unrecognized and nonvalued
performance can contribute to turnover. Recognition for a job well done fills the
employees' need to receive positive, honest feedback for their efforts.
Manager must offer the tangible intrinsic rewards that give value experience,
NELSON,2000.
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EMPOWERMENT:The employee needs to feel a sense that they are in control of their worlplace options
such as flexible work schedules to give the power of decision making etc.
LEADERSHIP:To a great extent , an employees experience at a company is shaped by his or her Boss:
employees rely on supervisors for everything from communication to promotions and
rewards. Not surprisingly, a number of studies show that ineffective supervisors that is,
bad bosses-are the largest single factor driving employee turnover. Companies need to
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select the right people for supervisory positions, and then offer them development
opportunities to make sure they continue to enhance their leadership and communication
skills.
PROFESSIONAL GROWTH(TRAINING AND DEVELOPMENT):Todays employee know that a successful career depends on constant
learning and on picking up skills and experience that will make them more employable in
the open market. That means that access to ongoing training and development is
important to them, and a strong incentive to stay with a company.
These programs provide a positive perception to employees that their employer is willing
to invest in their continued professional growth, which will not only have a positive
impact on productivity and effectiveness in their respective roles, but also on the
employer's ability to retain individual employees.This is a fundamental paradox of
employee retention. By preparing people to leave, a company can actually encourage
them to stay.
MEANINGFUL WORK AND OWNERSHIP:People need to know they are making a difference and being effective in their jobs.
Expectations and job responsibilities/description need to be clearly defined so that
employees can understand their rolesand see how their jobs are linked to the
organizations overall success. Employees must also be involved in determining how
work is done, so that they have a sense of ownership and an opportunity to contribute to
improvements in the companys performance.
FAMILY FRIENDLY BENEFITS :Benefits that make it easier for employees to balance work with family obligations have
been shown to increase productivity, reduce absenteeism and lower turnover rates.
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HR UPDATE
As the leading edge of baby boomers become eligible for retirement, experts believe
that all business sectors will need to become more strategic about Identifying , cultivating
and keeping staff with vital skills.
TOOLS TO TUNE UP RETENTION EFFORTS:Experts suggest following tips: FIND OUT WHAT EMPLOYEES THINK:
A well crafted survey, administered by an outside provider to ensure confidentiality
can be well worth the investment to help a company pinpoint recurring issues that
contribute to employee turnover or dissatisfaction. A more focused approach on this
theme is to identify top performers and invite them to individual discussions on job
satisfaction and career planning.
SET A CLEAR AND CONSISTENT TONE FROM TOP:
In a 2005 SHRM (Society for HRM) workplace forecast 92% of executives said
employee alignment with business goals was important to overall success. However ,
many of those same leaders do not effectively communicate key business objectives or
the non financial elements that makes the company distinctive. The effectiveness of this
step can be measured in regular employee engagement surveys or in smaller focus groups
held on an annual or semi annual basis.
STRENGTHEN THE MANAGER EMPLOYEE RELATIONSHIP:
Retention studies consistently show that the supervisor employee relationship is
one of the biggest factors in whether the worker chooses to stay or leave a job.
CONSIDER FLEXIBLE WORK ARRANGEMENTS:
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Nearly 60 % of employees in the SHRM study said Work / life practices such as
flextime, telecommuting and compressed workweeks were very important to job
satisfaction.
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REVIEW OF LITERATURE IN THIS REGARD:Developing comprehensive vision & mission statements is seen as critical to success of
organization in all sectors (COLLIUS & PORRAS,1991).
Williams (2002)further suggested that organization with a more comprehensive mission
statement do better financially than those with an ambiguous mission or no mission at
all.
A mission statement identifies, operational objectives, assists in goal directed behavior
of staff, describes performance standards and speaks to organizational survival ( Smith,
Heady, Carson & Carson ,2001)
A good match between employee and organizational values is related to employee
attraction, satisfaction and turnover ( Werbel & Gilliland ,1999)
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Listening to problems
WHY IS IT SO IMPORTANT?
EMPLOYEE ENGAGEMENT ensures the successful execution of any business
strategy. Engaged employees are the competitive advantage of an organization and play
the most important role in the implementation of their organizations business initiatives.
There is a significant link between employee engagement and profitability.
DRIVERS OF EMPLOYEE ENGAGEMENT:The survey conducted by Business Today identifies following drivers:
PEOPLE / QUALITY
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WORK / COMPENSATION
OPPORTUNITIES
FACTORS OF ENGAGEMENT:Many organizational factors influence employee engagement and retention such as:
Empowerment
Innovative leadership
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Wasting time and money invested in training and development programs for the
existing workers.
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RESEARCH METHODOLOGY:1. NATURE AND TYPE OF STUDY:The study of human relations is an extremely complex area where external
industry environment interact with companys internal policies and practices in a variety
of ways. This research study was Descriptive type of research study because it includes
surveys and fact- finding enquiries of different kinds and description of state of affairs as
it was exists at present.
2. TOOLS USED FOR RESEARCH:The quality and reliability of research study is dependent on the information
collected in the scientific and methodological manner. Employee satisfaction survey is
the best method for Employee retention program. The quantifiable (Employee retention
survey) survey questionnaires and personal interviews were main weapon to extract
information from the respondents. These questionnaires were specifically designed to
determine some basic facts and overall measure of employee perception, attitudes,
motivation, compensation, work environment underlying causes of employee
dissatisfaction towards organization that affect real business metrics, like , Employee
retention rates and turnover.
SOURCES OF DATA:(a) NATURE OF DATAThe main source of data used for this research study was Primary source
because the data collection was occurred directly to the ABB employees through
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questionnaire (filled up) and personal Interviews. The structure of questionnaire was of
multiple choice of questions.
SURVEY BASED ON THE EMPLOYEE SATISFACTION FORM:To assess ABB employees perception regarding work environment, corporate
communication, training and development program, work force motivation and
engagement, compensation, pay and overall satisfaction towards the organization and to
accumulate the employees suggestions regarding the Retention Program(how should
retain the employees in ABB).
A total of around 100 survey forms were distributed to the ABB employees of
middle level management placed in various departments. Some issues were discussed
with several employees that were relevant to the research study and as a result new ideas
were framed.
(B) METHODS OF DATA COLLECTON:The method of data collection was on Observational base through questionnaire
rather than communicational base. Only the purpose of the study was explained to all
respondents in order to get good response.
(C) SAMPLING DESIGN(TECHNIQUES OF SAMPLING):In this study, the Probability (Random) sampling is used. In Simple Random
Sampling method ,the chances of any particular unit (item) in the population being
selected is known, i.e, the sampling operation is controlled. The randomness is involved
in the selection process thus the estimates of sampling error can be made.
(D) SAMPLE SIZE:-
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The sample size for the survey was 50 employees of ABB consisting of all the
departments.
DATA ANALYSIS AND INTERPRETATION:In order to express the complex data into concise and logical
form the data collected was transformed into the form of tables and Pie chart diagram.
2) 75%
3) 50%
4) 25%
ANALYSIS:
4
6%
1
22%
1
3
30%
2
3
4
2
42%
Up to what extent you are satisfied with HRD activities & HR dept.?
1) 100%
2) 75%
3) 50%
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4) 25%
ANALYSIS:-
1
8%
4
24%
2
30%
2
3
4
3
38%
Up to what extent you are agree with organizational goal, vision & mission?
ANALYSIS:
CONCLUSION:disagree
1%
not
applicable
5%
somewhat
agree
38%
agree
agree
56%
somewhat agree
not applicable
disagree
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2. EMPLOYEE LOYALTY:The following questions were included in this part: Please indicate the number of years you have worked in your current job?
ANALYSIS:more
than five
years
16%
less
than 1
year
32%
4-5
years
4%
1-3
years
48%
2) 50%
3) 75%
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4) 100%
ANALYSIS:
1
12%
4
24%
2
14%
1
2
3
4
3
50%
YES
YES
64%
NO
NO COMMENT
CONCLUSION: 48 % Of employees are working in this organization from last 1-3 years.
Max 50 % of employees have 75% belongness with this organization.
64 % of employees want to join another organization for better career growth and
prospects.
It means thatApproximately more than 50 % of employees are loyal to the organization.
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Not
accordin
g to you
20%
Good
Best
Worst
2%
Worst
Good
65%
Best
13%
Not according to
you
Disagree
2%
Somew hat
Agree
38%
agree
agree
60%
80
Disagree
6%
Somew hat
Agree
24%
agree
Somew hat Agree
agree
70%
Disagree
agree
Somew hat Agree
agree
76%
81
Disagree
Frequently
10%
Alw ays
28%
Never
4%
Alw ays
Sometimes
Never
Frequently
Sometimes
58%
CONCLUSION:Approximately 70% ABB employees are agreed about workforce motivation and
engagement provided by manager and supervisors.
5. CORPORATE CULTURE:-
NO
COMME
NT
34%
BEST
8%
BEST
GOOD
NEED IMPROVE
GOOD
52%
NOT
NEED
GOOD
IMPROV
4%
E
2%
CONCLUSION:-
82
NOT GOOD
NO COMMENT
52% employees are agreed for good corporate culture in sense of decision
making, vast , varied, friendly & encouraging.
6. PAY,BENEFITS AND COMPENSATION: Are you satisfied with your pay, benefits and incentives as your current
organization providing?
ANALYSIS:-
1
10%
4
14%
1
2
2
34%
3
42%
CONCLUSION:20% employees are satisfied with their Pay, Benefits and compensation.
NO
30%
YES
No
comment
28%
25%
6%
NO
50%
34%
100%
10%
YES
70%
25%
50%
75%
100%
75%
22%
No comment
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CONCLUSION: Approximately 35% of employees are satisfied with T & D pgm and remaining
are dissatisfied.
Approximately 70% of employees
advancement and economic security.
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empowerment,
FINDINGS:-
From the above survey, for employee retention, we come to know that approximately 40
% of ABB employees are fully satisfied with this organization and remaining are quite
satisfied and they dont want to continue their job in ABB.
WHY EMPLOYEES WANT TO STAY WITH THIS ORGANIZATION:There is no one strategy to insure successful employee retention. Generally, a
combination of factors influences an employees decision to stay in a job. Those factors
may differ for an individual depending on his/her age, family situation, external job
market or job title, position and experience. There are some following reasons to stay in
this organization given by ABB employees:1. ABB brand and reputation(MNC)
2. Market leader in power and automation
3. Best interpersonal relationship, Ethics and values
4. Good work environment/ culture.
5. Availability for career growth and advancement
6. Positive support from superiors and managers
7. Flat structure ( No hierarchy)
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WHY EMPLOYEES DONT WANT TO STAY WIH THIS ORGANIZATION:Max. Percentage of employees wants to leave that because of following reasons:
1. Poor HR activities, bonding and support with employees
2. Not provision of best salary/Incentive and remuneration.
3. Attrition rate is very high.
4. No visibility of career planning process and no teamwork / spirit.
5. Limited training programs and personality development
6. No facilities or employees like Conveyance, Library, Restrooms, Games, car and
home loans etc.
7. Not awareness of total work area of ABB
8. Dirty politics system.
9. No opportunity for enhance job responsibility / description.
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87
88
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It is impossible to retain 100 % of employees, but by creating a great place of work, there
will be possibility of mitigation of factors which encourage the employees to leave while
enhance the properties that encourage the employees to stay. Beyond these implications,
the study shows ,t that retaining talent is of course, not a simple matter. The results
suggest that a "one-size-fits-all" approach may not be effective because age and position
can influence one's decision to stay or quit. Understanding needs and motivations as a
function of age and position might help the human resources department to develop
customized and effective retention programs.
There are some suggestions by which organization can retain employees based on the
results o the study.
A IMPLEMENTATION PLAN ( STRATEGY) TO IMPROVE EMPLOYEE
RETENTION PROGRAM IN ABB:1. Determine organizational retention issues .
2. To provide better growth and advancement to employees by changing position role
( Job Rotation)according to his / her performance.
3. Paying attention of individual problem.
4. Provision of motivational activities like leadership, benefits and job satisfaction.
5. Proper judgement for Pay packet / Improve compensation .
6. Proper division of work.
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V.S.P. Rao(1995),Human Resource Management, Text & Cases, Excel Books, New
Delhi.
3.
4. Magazines
ABB Outlook
5. Websites
www.abbinside.com/co.in
www.abb.com/co.in
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www.employeeretentionconnection.com
www.google.com
www.businessranks.com
www.pearsonel.co.in
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50 %
75%
100%
2. Up to what extent you are satisfied with your job and post at company ABB.
25%
50%
75%
100%
Somewhat agree
Agree
Not applicable
4. Do your manager/ supervisor encourage you for high achievements by reducing the
fear of failure?
Disagree
Somewhat agree
Agree
Not applicable
5. Up to what extent you are satisfied with HRD activities & HR dept.?
25%
50%
75%
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100%
6. Does your company provide Training & development program? If YES, then how
much you are satisfied with them?
Yes
No
25%
50%
75%
100%
7. How is the relationship between management /dept. heads and their subordinate?
Excellent
Better
Good
Poor
8. Please indicate the no. of years you have worked in your current job.
less than 1 year
1-3 years
4-5 years
50%
75%
100%
10. Are you satisfied with your pay, Benefits & Incentives as your current organization is
providing?
25%
50%
75%
100%
11. Are you satisfied with HR policies of ABB LTD. like : Conveyance
Medical
house rent
Over time reimbursement
competitive salaries
Welfare activities,
Outdoor work expenses & Other schemes
According to you, on which policies this company should improve upon:Please comment:
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12. Are you satisfied with your salary package as your company providing?
Yes
No
Disagree
Sometimes
Never
Frequently
No
16. Does your superior provide you the right climate to implement new ideas and
methods suggested by you and for making a right change in the refined work?
Agree
Disagree
17. Did you get respect, advancement, economic security and empowerment from your
organization?
Disagree
Somewhat agree
Agree
Not applicable
18. Did you feel sufficiently trained and oriented for your job?
Pleasecomment:
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23. Kindly suggest /inform for betterment of the organization .So, we can retain the
employees.
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98
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