Organization work culture -

Tools for retaining employees

From:
Voonna.Santosh Kumar
Pharma Regulatory Affairs
Manipal university,Manipal.

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 ½ontents:
Y.ëntroduction
2.Critical challenges
3.Why do people leave their organization
4.Factor for retaining employees
5.Employ retention survey - exit interview
6.Examples
7.How to calculate attrition rate
8.Turn over facts and rates
9.Attrition and retention rate of some ëndian companies
Y . Conclusion
YY. References

INTRODU½TION

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 Culture refers to an organization's values, beliefs, and behaviors. ën general, it is concerned with
beliefs and values on the basis of which people interpret experiences and behave, individually and
in groups.

The concept of organizational culture had gained acceptance on a large scale as a means for
understanding human systems and how these function in the workplace. Each aspect of the
organizational culture is an important environment condition which affects systems and
subsystems. Examining organizational culture is a valuable analytical tool for looking at
organizations and how work groups evolve over time.

During this evolution, two basic challenges must be met: integration of individuals into
the organization and adaptation of the organization to the external environment influences in
order to survive. As a group, organizations which find solutions to its problems fosters a
collective learning process that ultimately creates a shared set of organizational values and beliefs
that defines what is called organizational culture.Y

People who analyze organizational culture work with three basic frameworks for
understanding this phenomenon: identifying the shared frames of reference for individuals within
an organization, the origin of these beliefs, and how well the values and beliefs are created,
communicated and sustained.

The elements which define an organization¶s culture may include:

· stated and unstated values;

· the expectations of the behavior from each member within the organization;
· customs and rituals unique to the organization;
· the organization¶s history and organization idioms.
· The way in which individuals interact with each other, outsiders of the
organization and the external environment also contributes to this analysis.2

The strengths of the organizational culture must focus on the human side of organizational life,
finding significant meaning even in what appears to be the mundane aspects of an organization. The
little things can mean a lot for deciphering what makes an organization functional, or even
dysfunctional.

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 ôrganizational culture stresses the importance of creating systems which are appropriate for helping
people work together in order to achieve desired outcomes. Each individual within the organization,
especially the leaders, must understand the impact that their behavior can have on the culture within
the organization.Y

DEFINITION:

ôrganization work culture is a work place or environment that is formulated from the interaction
of the employee in the work place. ët is defined by all of the life experience, weakness, education
and so forth of the employees.5

Organization work culture is reflected2:

Y. ën the attitude of staff

2. Their shared belief about the organization
3. Their shared value system
4. Approved of behaving at work

· Jssets of organization ± employees

The ³ 5 F´ culture at work6:

Fast : The organization believes in speedy actions what ever we do.

Friendly : The organization believes in practices and strong people orientation.
Flexible: Believes in the spirit of innovation to respond to changing business situations.
Fun: Believe in having fun at the work place while focusing on complex business problems.
Focused : The organization remains strongly focused on its business objectives and strategies.

Why organization has to retain the employee3?

· Talented employees are the foundation of any healthy and successful organization. Creating the
right environment, developing leadership skills among management team members, and
gathering feedback from employees are the keys to retaining the existing talent in your
organization.

·  o organization, large or small can win over the long run without energized employees who
believe in its mission and understand how to achieve it. That¶s why you need to take the measure
of employee engagement at least once a year through anonymous surveys in which the
employees feel completely safe to speak their minds.´

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THE ½RITI½J ½HJ ENGES FJ½ING TODJ
6:

Y. Attracting the right people at all levels

2. Retaining them and motivating them
3. Focusing on top performers needs
4. Engaging them

WH
ORGJNIZJTION IS NOT J E TO RETJIN THE EMP O
EE?

Y
 People do not get integrated

Most organizations had orientation programs which are more focused on compliance trainings that
are being completed. The focus should be more on enabling employee to form networks within
themselves.

2
 Reward systems are not transparent

Most of the employees show the particular skill at particular time which makes the pathway for
the company success and due to this there is an increment in the salary of the employee.But there
would be questions arising in the mind of the people that can you share details about how they have
been compensated?

3
 No career planning
People are aware of the way in which they can grow in the organization. Who is the role model
with in the organization? ëf there are no opportunities present in the organization for the growth of
the employee then employee will be dissatisfied in the organization and leave the organization.4

4
 Office incivility
ët means rudeness in the behavior.
Almost 4 % of the employee leave the organization due to incivility.

Rudeness takes its toll on the employee behavior:

 53% lost work time worrying about the incident.
 22% decreased efforts at work.
 Y2% changed job.

5
 Unmet expectation & reality of the work place

ëf the expectation of the employee (rest room, insurance policy etc
within the organization is not
satisfied then he will leave the organization.7

6
 ½onflicts, job person mismatches

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 ëf the behavior and personality conflicts arise among the workers and with higher level of the
management then it will break the interpersonal relationship of the employee and he will the leave
the organization.7

7
 Work stress
ët is recognized world wide as a major challenge to worker health and health of the organization.
Workers who are in stress condition, are unhealthy, poorly motivated, less productive and less safe at
work. All this make a unsuccessfully pathway of the organization and the person finally leave the
organization.

8
 oss of trust
ët is very important that employees should have trust on the management of the company and its
morale so that employee can do better in his work which in turn helps in making good relation with
the management.

9
 Money

Some people work for love, some people work to achieve a goal but whatever the reason behind this
finally every one wants money that provide food, shelter, clothes etc.

ëf there is any unfair system existing in the organization regarding the money. Due
to that the employee is not satisfied then he leaves the organization and finally joins the other
organization.8

Y
Poor management practice &unhealthy culture

ëf there is no competition and growth in the company regarding work then the employee will be
dissatisfied at his work and search for the new company for joining.

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Fear of uncertainty

ëf there is fear in mind of the employee that his job is not secure and he is not permanent in the
organization, at the same time if he get chance in the other company then he will leave the
organization.

Y2
Unproductive work environment

Whatever the efforts a person doing in the organization,it doesn¶t show any result finally he will be
unsatisfied and leave the organization.

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 E
FJ½TORS FOR RETJINING EMP O
EESIN ORGJNIZJTION9:

Y
 uilding a mentoring culture

Employee generates new ideas and creates the solution that our organization needs people spend
entire day on working. And for their development organization should consult coaches, guide etc
ët is important to integrate elder people who understand our value, concept and culture with
the new employee who makes him to implement them.which inturn helps in retention of employee.

2
 uild an organization based on value

Values means honesty and satisfaction. These are not only related with customer but also with
employee in turn it helps in the retention of employee.

3
 uild an strategic framework

ëf any organization has clear mission, vision and goals. Then it will create the interest in the
employee to do the work so that employee will not leave the organization.

4
 Developing team norms

Team is important factor and if each member of team develop a way how to communicate with one
another and with other members of the organization,regarding how to solve a problem, how to take a
decision,how to implement new strategies. All these things help in maintaining inter personal
relationship in the organization.

5
 Trust rules
What is trust? ët is a belief and it helps in making a foundation or a way of good communication in
retaining a employee and motivating people .With the help of this we can achieve success in
organization and make people feel happy.

6
 Training 8

a
Professional : ët helps the employee to give the answers for any questions asked by the
customer.

b
civility : With help of this we can teach the employee how to respect each other, how to maintain
skills etc. ët will ultimately remove the ruddiness from the organization.

7
 Self directed work team

³Minnesota based 3m´ is a company that involve employee in the daily management of their
business through work teams. This team is empowered to take corrective action to resolve day to day
problems. Business weak recently reported that (2 6
self directed team is 3 -5 % More
productive.
Jdvantage: Ability to attract and retain employees.

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 8
 oyality
Higher level authority should be loyal towards their lower level and should not be rude in behavior.
9
 Open and honest communication
Communication from higher level to lower level and vice versa is necessary in the organization.
Whatever be the decision taken by the higher level regarding the financial condition ,customer
overview, sales. Etc has to be transferred towards the lower level and this will help in retaining the
employee.
Y
Providing learning opportunities
ëf opportunities are available to an employee in the organization, then he will take it for improving
its status.

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Working condition and atmosphere

How a employee feel about his job is directly influenced by its working conditions.so the office
should be little bit decorative and pleasant to give some privacy in the working condition and it will
help in increasing the work capabilities of the employee.

Y2
Having fun

ët will help in enhancement of the profitability, productivity and the morale of the employee.

Y3
Employee recognition

Many organizations are not serious about this factor. Managers are of intention that why should
we recognize an employee, why should we say thanks to them,they are doing their job.

Recognition is not just a nice word to say but it is more than a reward for an employee
who is doing a creative work. ët will help in retaining a employee.

Y4
enefit and life style perks

The company should distribute profit which was earned among the employees in terms of
bonus ,incentives, allowances.This kind of strategy helps in retaining the people.

Example: The wipro company which made a good profit in the year 2 6 was distributed among
the employees.

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 Y5
Operating system

ëf an organization has a good policy and procedure manual which is distributed among the employee
to know them about their duties and reposibilites regarding work,then the employee are aware of
their work to be done and show more interest in doing it efficiently.9

Ex: (Microsoft and Disney companies

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Role of managers and supervisors

· take time to identify each employee's unique attributes both strengths and weaknesses and
delegate assignments accordingly.
· Set clear, stable, and achievable expectations for each employee.
· Communicate often with reporting staff.
· Establish and adhere to a regular meeting schedule.
· Provide regular performance feedback.
· Seek employee input and ideas.

EMP O
EES RETJINING PROGRJM ± ³ JN EXIT INTERVIEW´

ët is a way to identify consistent trends, patterns and themes and to reduce turn over on large scale.
These are important part of an HR management and monitoring employee retention and satisfaction.
ët is important to understand why an employee leaves and what information you can use to avoid the
employee losses in future.Y

Goals for exit interview:

· ëmprove employee retention and reduce turn over.
· ëncreae company objectivity
· Work satisfaction and schedule flexibility.
· ôpportunities for carrier development.

Employee exit interview questions like-

· Why did u join the organization
· What were your best experiences here?
· What were your worst experiences here and so many «.

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 Example of an organization having unique work culture and practices:9

Y. Whole food market ( WFM): one of the most profitable grocery retailer in the u.s.

Success:

Grassroots management- Divide the system of a company into team up to highest level of
theocracy.

Transparency-The company disclosed critical financial information to its employees.

2. TJTJ consultancy services (T½S):

According to the business line ± financial daily from THE Hë DHU groups of publishers at 29 th
july 2 5. TCS has the lowest attrition rate (2.8%
mainly due to work environment provided by the
company is more flexible in improvement of the individual in turn helps in retention of employee.

SU½½ESS-

Training: Provided good training to the employee.

Opportunities: provided huge number of opportunities which help in the growth of the employee.

Turn over or Jttrition:

ët is defined as reduction or decrease in numbers, size, or strength of the organization.

There are three types of turnover.

Voluntary turnover: ët is defined as in which the employee makes the decision to leave.

ënvoluntary turnover: ët is defined as in which the organization terminates the employment

relationship.

Dysfunctional turnover : ët occurs when an employee whose performance is at least adequate

voluntarily quits.

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How to ½alculate Jttirition Rate:

Attrition rate: There is no standard formula to calculate the attrition rate of a company. This is because
of certain factors as:

d The employee base changes each month. So if a company has Y, employees in April 2 4
and 2, in March 2 5, then they may take their base as 2, or as Y,5 (average for the
year
. ëf the number of employees who left is 3 , then the attrition figure could be Y5 percent or
2 percent depending on what base you take.
d Many firms may not include attrition of freshers who leave because of higher studies or within
three months of joining.
d ën some cases, attrition of poor performers may also not be treated as attrition. Calculating
attrition rate:

Attrition rates can be calculated using a simple formula:

Jttrition = (No. of employees who left in the year / average employees in the year) x 100

Thus, if the company had Y, employees in April 2 4, 2, in March 2 5, and 3 quit in the year,
then the average employee strength is Y,5 and attrition is Y x (3 Y5
= 2 percent. Besides this,
there are various other types of attrition that should be taken into account. These are:

d Fresher attrition that tells the number of freshers who left the organization within one year. ët
tells how many are using the company as a springboard or a launch pad.
d ënfant mortality that is the percentage of people who left the organization within one year. This
indicates the ease with which people adapt to the company.
d Critical resource attrition which tell the attrition in terms of key personnel like senior executives
leaving the organization.
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d †ow performance attrition: ët tells the attrition of those who left due to poor performance .

Employee Turnover ½ost ½alculation:

1) Employee Detachment ½ost7

Exit interview (ône Hour: Preparation, interview, follow up

Cost of termination time
Cost spent in administrative procedures
ëncreased unemployment (based on the Department of †abor

2) ½ost of vacancy
ôvertime

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 †abor
Wages

3) ½ost of substitution
Job advertising
Pre-employment administration
Cost of new hires¶ interviews
Staff cost

4) ½ost of training
Stationary cost (Books, training, manual «

Formal training sessions (Class room, lab«

ënformal training (Mentors, etc.

5) Employee performance differential

Difference in performance (Productivity, learning, etc.

Turnover facts and rates:

( a survey by †ife Work Solutions : A provider of staff retention and consulting services, new south
wales ,Australia in march 2 7

M ôver 5 % of people recruited in to an organization will leave within 2 years.

M ône in four of new hires will leave within 6 months.

M early 7 % of organizations report that staff turnover has a negative financial impact due to the
cost of recruiting, hiring, and training a replacement employee and the overtime work of current
employees that¶s required until the organization can fill the vacant position.

M early 7 % of organizations report having difficulties in replacing staff.

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M Approximately 5 % of organizations experience regular problems with employee retention .

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Jttrition rates in Jsia:

ën Asia, organizations faced an overall attrition rate of Y6% in 2 5. Attrition rate was Y4% in 2 4 and
Y % in 2 3.
According to Hewitt¶s Attrition and Retention Study Asia Pacific 2 6, the no.Y reason for this growing
attrition rate is compensation unfairness. 2Y% of the organizations who took part in the survey said that
their employee left the organization because they got offers from other organizations offering better pay
packages. The no. 2 reason was less growth opportunities and no. 3 reason was role stagnationYY×

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JTTRITION RJTE JND RETENTION RJTE OF INDIJN ½OMPJNIES:

(ët differs from company to company,the company which had the ability to retain the employee
lead to greater heights compared to neighbours.

S. o Company name Attrition rate Retention rate

Y. JPTE½H TRJINING 50% 50%
2. IR J SOFT 33.2% 50%
3. D½M DJTJ S
STEM - 86%
4. OSTON EDU½JTION JND 67% 36%
SOFTWJRE
5. SJT
JM ½OMPUTER - 90%
6. SIEMENS 18% -

½ON½ USION:

Retention of an employee of a company is essential because it increases the performance in the

following areas.9

· Customer satisfaction will increase

· rowth and productivity of a company will increase
· §uality and morale of an employee will increase
· Team work and cooperation
· Safety

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