A STUDY ON EMPLOYEE RETENTION TECHNIQUES IN iSOFT CHENNAI

PROJECT REPORT Submitted by

V. CHANDRAPRAVEENA Register No.:098001903009

in partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

in FACULTY OF MANAGEMENT

ERODE BUILDER EDUCATIONAL TRUSTs GROUP OF INSTITUTIONS NATHAKADAIYUR

JUNE 2011

ERODE BUILDER EDUCATIONAL TRUSTs GROUP OF INSTITUTIONS

FACULTY OF MANAGEMENT PROJECT WORK PHASE II JUNE 2011 This is to certify that the project entitled

A STUDY ON EMPLOYEE RETENTION TECHNIQUES IN iSOFT CHENNAI

Is the bonafide record of project work done by V. CHANDRAPRAVEENA Register No. : 098001903009 of ___________________________________ during the year 2009 2011. _______________ Project Guide _______________ Head of the Department

Submitted for the project viva-voce examination held on _______________ _______________ Internal Examiner _______________ External Examiner

DECLARATION
I affirm that the project work titled ________________________________________ being submitted in the partial fulfillment for the award of _________________________ is the original work carried out by me. It has not formed the part of any other project work submitted for award of any degree or diploma, either in this or any other university.

(Signature of the Candidate) V. Chandrapraveena Register No.: 098001903009

I certify that the declaration made above by the candidate is true.

(Signature of the Guide) Prof. G. Suresh, Assistant Professor Faculty of Management EBETi

ACKNOWLEDGEMENT I sincerely thank for providing me with an opportunity to pursue my final year project at their organization. I sincerely thank Mr. Basil Fredrick, Senior Manager, HR of iSOFT R&D Pvt. Ltd., for guiding me throughout this project. Mr. Basil Fredrick has not only been a project guide during this project period but also a mentor and guided me through the entire business of the organization and also the initiatives of iSOFT. I would like to extend my sincere thanks to the staffs at iSOFT, for helping me whenever needed and also for facilitating me in the completion of the project. I convey my sincere thanks to our Dean. Dr. A.G.V Narayanan ERODE BUILDERS EDUCATIONAL TRUSTS GROUP OF INSTITUTIONS, TIRUPPUR for providing me this opportunity of carrying out my project, which has truly been an enriching experience. I would also like to thank my project guide Prof. G. Suresh for his constant encouragement and valuable guidance in completing the project successfully. To conclude, I owe every bit of this report to the peerless tutelage of industry professionals and academia, under which this project was engendered.

TABLE OF CONTENT CHAPTER NO. List of Tables List of Figures List of Abbreviations 1. Introduction 1.1 Objectives 1.2 Scope 1.3 Company Profile 1.4 Product Profile 1.5 Industry Profile 2. Review of Literature 2.1 Introduction To Employee Retention Techniques 2.2 Employee Retention Techniques 2.3 Managing Employee Retention 2.4 Need and Importance of Employee Retention 2.5 Seven Steps to Increase Employee Retention 3. Research Methodology and Design 3.1 Introduction 3.2 Type of Research 3.3 Data Collection 3.4 Research Instrument 3.5 Questionnaire Design 3.6 Sampling Procedure 3.7 Sample Size 3.8 Limitations of the Study 4. 5. 6. Data Analysis and Interpretation 4.1 Data Analysis and Interpretation Suggestions Reference TITLE PAGE NO.

CHAPTER 1
1. INTRODUCTION 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. Employees today are different. They are not the ones who dont 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 dont, they would be left with no good employees. A good employer should know how to attract and retain its employees. Retention involves five major things: Compensation Environment Growth Relationship Support COMPENSATION 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. While setting up the packages, the following components should be kept in mind: Salary and monthly wage: It is the biggest component of the compensation package. It is also the most common factor of comparison among employees. It includes

Basic wage House rent allowance Dearness allowance City compensatory allowance

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 employees 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.

ORGANIZATION ENVIRONMENT It is not about managing retention. It is about managing people. If an organization manages people well, employee retention will take care of itself. Organizations should focus on managing the work environment to make better use of the available human assets.

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

Types of environment the employee needs in an organization Learning environment: It includes continuous learning and improvement of the individual, certifications and provision for higher studies, etc. Support environment: Organization can provide support in the form of work-life balance.

Work life balance includes:

Flexible hours Telecommuting Dependent care Alternate work schedules Vacations Wellness

Work environment: It includes efficient managers, supportive co-workers, challenging work, involvement in decision-making, clarity of work and responsibilities, and recognition. Lack or absence of such environment pushes employees to look for new opportunities. The environment should be such that the employee feels connected to the organization in every respect. GROWTH Growth and development are the integral part of every individuals career. If an employee can not foresee his path of career development in his current organization, there are chances that hell leave the organization as soon as he gets an opportunity. The important factors in employee growth that an employee looks for himself are: Work profile: The work profile on which the employee is working should be in sync with his capabilities. The profile should not be too low or too high.

 Personal growth and dreams: 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 hes not satisfied with his growth, hell not be able to contribute in organization growth. Training and development: Employees should be trained and given chance to improve and enhance their skills. Many employers fear that if the employees are well rained, theyll leave the organization for better jobs. Organization should not limit the resources on which organizations success depends. These trainings can be given to improve many skills like:

Communications skills Technical skills In-house processes and procedures improvement related skills Customer satisfaction related skills Special project related skills

Need for such trainings can be recognized from individual performance reviews, individual meetings, employee satisfaction surveys and by being in constant touch with the employees. IMPORTANCE OF RELATIONSHIP IN EMPLOYEE RETENTION PROGRAM 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 employees interest and he becomes de-motivated. 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. Respect for the individual: Respect for the individual is the must in the organization. Relationship with the immediate manager: A manger plays the role of a mentor and a coach. He designs ands plans work for each employee. It is his duty to involve the employee in the processes of the organization. So an organization should hire managers who can make and maintain good relations with their subordinates. Relationship with colleagues: Promote team work, not only among teams but in different departments as well. This will induce competition as well as improve the relationships among colleagues. Recruit whole heartedly: An employee should be recruited if there is a proper place and duties for him to perform. Otherwise hell feel useless and will be dissatisfied. Employees should know what the organization expects from them and what their expectation from the organization is. Deliver what is promised. Promote an employee based culture: The employee should know that the organization is there to support him at the time of need. Show them that the organization cares and hell show the same for the organization. An employee based culture may include decision making authority, availability of resources, open door policy, etc.

 Individual

development:

Taking

proper

care

of

employees

includes

acknowledgement to the employees dreams and personal goals. Create opportunities for their career growth by providing mentorship programs, certifications, educational courses, etc. Induce loyalty: Organizations should be loyal as well as they should promote loyalty in the employees too. Try to make the current employees stay instead of recruiting new ones. SUPPORT 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. Employers can also provide valuable feedback to employees and make them feel valued to the organization. The feedback from supervisor helps the employee to feel more responsible, confident and empowered. Top management can also support its employees in their personal crisis by providing personal loans during emergencies, childcare services, employee assistance programs, counseling services, et al. Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees. Thus employers can support their employees in a number of ways as follows: By providing feedback By giving recognition and rewards By counseling them

By providing emotional support

1.1 OBJECTIVES To study about the employees mindset of the work environment, nature of their job and their interaction with their supervisors To study about the employees expectations towards the management To identify the employees flexibility towards their work To identify the problems regarding the package, traveling time etc., 1.2 SCOPE The management can know the reason behind the attrition in their organization The management can use some other effective tools to retain their employees The management can use some other effective strategies to retain their employees 1.3 COMPANY PROFILE Company Name: iSOFT R&D Private Limited Address: No.19 Hafiz Court, Dr.M.G.R Salai, Nungambakkam, Chennai-34 Phone No: (44) 39818500 Email: info@isofthealth.com Web Site: www.isofthealth.com Industry: IT-Software Services Level of Company: MNC Level of Office: Head Office Sector: Private Sector iSOFT Group Limited, an information technology company , designs, develops, and delivers healthcare IT platforms and applications that address the administrative, clinical, and connectivity requirements of healthcare organizations.

The companys product portfolio comprises clinical management solutions, such as i.Clinical Manager and LORENZO Clinical; and emergency solutions. It also offers Endoscopy solutions, Health record management solutions and Health views; and Laboratory products. In addition, the company provides maternity solutions comprising Evolution; Patient management solutions and Pharmacy solutions. Further, it offers primary care solutions consisting of Synergy, Premiere, and LORENZO Primary Care, Radiology products and also various solutions for operation theatres. Additionally, the company offers patient safety software, including the AIMS system, which enables healthcare organizations to record, monitor and take relevant management action to minimize future adverse medical events. iSOFT Group Limited operates in Australia, Newzealand, China, India, and United Kingdom, as well as in South East Asia, Africa, the Middle East, and the Mainland Europe. The company was formerly known as IBA Health Group Limited and changed its name to iSOFT Group Limited in May 2009. iSOFT Group Limited is headquartered in Sydney, Australia. iSOFT R&D Pvt Ltd, Chennai is the product development centre for iSOFTs global operations. The purpose is to harness Information Technology to deliver speedy, error-free and cost-effective healthcare to benefit the Clinician, the business manager and the patient alike. It specializes in the design, development & delivery of innovative, patient-centric software application packages to keep abreast of the ever-changing requirements of information systems, supporting both public and private healthcare providers, in the modern communities. In India, iSOFT has its branches in Chennai and Bangalore with the manpower of 1265 and 180 respectively in each branch.

1.4 PRODUCT PROFILE: iSOFTs range of internationally recognized solutions provide health

professionals with accurate, timely information that lets them focus on the patient in front of them. Developed to automate care processes and support defined workflows, the solutions improve patient outcomes by enabling the transfer, storage and availability of patient information across the care continuum. iSOFT understand the inherent need for providers to share vital information across care facilities through Health Information Exchange technologies that create electronic health records capable of traveling with an individual and available at every point of care. Clinical Collaboration iSOFT Clinical Collaboration solutions help healthcare providers better manage and share clinical information across disparate care facilities and departments. The collaboration solutions facilitate the exchange and bringing together of relevant patient information in a context that assists meaningful analysis and effective treatment. Integration Engine The integration engine provides easy the integration platforms enable software solutions to share information when needed and in the required form, ensuring seamless integration and letting the best of breed applications communicate with each other. Application Development Tools iSOFT Application Development Tools lets the patient improve the interoperability and extend the functionality of the existing systems as well as integrating new applications into the workflows.

Lorenzo Lorenzo solutions enable collaboration and interoperability across all sectors of care and remove traditional barriers to sharing health related information and electronic record management. Lorenzo creates virtual health networks that securely connect doctors, care facilities and patients while protecting the organizations previous investments by integrating seamlessly with existing systems. Department iSOFT Department solutions are designed to provide comprehensive management and process support across all hospital departments while withstanding the demanding and dynamic hospital environment. Enterprise Scheduling Proven booking and referral solutions for the healthcare community. iSOFT Enterprise Scheduling enhances staff productivity and patient service by delivering greater operational efficiency and increased patient throughput. Hospitals & Clinics iSOFT Hospital and Clinic solutions provide complete information and administrative support systems that helps to better manage the patient journey whilst ensuring accuracy and safety. Diagnostic iSOFT Diagnostic solutions provide rich functionality that supports workflow across laboratories, radiology and medical imaging within hospital or independent diagnostic facilities. These solutions reduce analysis time and improve communication with remote and disparate facilities and providers

Primary Care iSOFT Primary Care solutions are tailor made to meet the needs of Aged Care, Social Care, Community Care and GP practices of any size. Designed to improve patient care whilst delivering you cost and time savings, these tools help you streamline your processes and better utilize, manage and share the data your organization creates. Business solutions iSOFT Business solutions provide a powerful and flexible financial processing and management information solution that uniquely fits within the healthcare environment. Utilizes the latest in database management and web architecture technology to implement sophisticated workflows and deliver reduced processing costs and improved procurement management. Consumer Health, Media & Life Sciences iSOFTs Consumer and Media division works to leverage the latest advances in information and communications infrastructure to provide health professionals with tools that deliver personalized care in a community setting. 1.5 INDUSTRY PROFILE: The Indian Information Technology industry accounts for a 5.19% of the country's GDP and export earnings as of 2009, while providing employment to a significant number of its tertiary sector workforce. More than 2.5 million people are employed in the sector either directly or indirectly, making it one of the biggest job creators in India and a mainstay of the national economy. In 2010-11, annual revenues from IT-ITES sector is estimated to have grown over US$76 billion compared to China with $35.76 billion and Philippines with $8.85 billion. Indias outsourcing industry is expected to increase to US$225 billion by 2020. The most prominent IT hub is IT capital Bangalore.

The other emerging destinations are Chennai, Hyderabad, Kolkata, Pune, Mumbai, NCR and Kochi. Technically proficient immigrants from India sought jobs in the western world from the 1950s onwards as India's education system produced more engineers than its industry could absorb. India's growing stature in the information age enabled it to form close ties with both the United States of America and the European Union. However, the recent global financial crises has deeply impacted the Indian IT companies as well as global companies. As a result hiring has dropped sharply and employees are looking at different sectors like the financial service, telecommunications, and manufacturing industries, which have been growing phenomenally over the last few years. India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group in partnership with Burroughs. The first software export zone Santacruz Electronics Export Processing Zone (SEEPZ) was set up here way back in 1973, the old avatar of the modern day IT Park. More than 80 percent of the country's software exports happened out of SEEPZ, Mumbai in 1980s. Each year India produces roughly 500,000 engineers in the country, out of them only 25% to 30% possessed both technical competency and English language skills, although 12% of India's population can speak in English. India developed a number of outsourcing companies specializing in customer support via Internet or telephone connections. By 2009 India is the 12th largest country in the world in terms of broadband Internet users.. By 2010 the Indian IT and ITES services industry could directly employ approximately 2.3 million people, besides providing indirect employment to another 6.5 million workers, according to the report. The industry employed about 1 million staff and provided indirect employment to 2.5 million people in the fiscal year to March 31 2010, according to data released by National Association of Software & Service Companies (NASSCOM).

However staff shortage could be a major bottleneck for the industry, according to the report. The skills and quality of the workforce needs to be improved as only 25 percent of technical graduates are suitable for employment in the offshore IT industry in India, while only 10 percent to 15 percent of general college graduates are suitable for employment by the ITES industry, according to Jayant Sinha, partner at McKinsey & Co. The report proposes setting 10 or 12 integrated townships in India with associated infrastructure like roads and international airports. Major reasons for the significant growth of the IT industry of India are 1. Abundant availability of skilled manpower 2. Reduced telecommunication and internet costs 3. Reduced import duties on software and hardware products 4. Cost advantages 5. Encouraging government policies

CHAPTER 2 2. REVIEW OF LITERATURE 2.1 INTRODUCTION TO EMPLOYEE RETENTION TECHNIQUES Employees are a valuable asset to any organization. It is essential to protect this vital resource as talented and motivated employees play a crucial role in overall growth and success of the organization. Focusing on employee retention techniques can positively impact the organization as it increases employee productivity, performance, quality of work, profits, and reduces turnover and absenteeism. Effectively creating an engaging environment, recognizing good performance, giving benefits and rewards, promoting mutual respect are some of the ways for effective employee retention. Increase Employee Engagement Effectively implementing employee retention program by increasing employee engagement ensures that the employees are satisfied with their work, take pride in their work, report to duty on time, feel responsible for their job, feel valued for their contributions, and have high job satisfaction. As employees actively focus on their work, it increases the productivity levels in the organization and leads to improvement in several associated areas. Employee engagement ensures that the employees have a clear understanding of their roles and responsibilities in the organization. Increasing employee engagement helps to develop emotional connection, enthusiasm among the employees that promotes teamwork and healthy environment at the workplace. Motivate Employees Motivating employees by offering them better opportunities for career development can help in employee retention. Giving rewards, recognitions, promotions, and appreciation can motivate them to increase their productivity, commitment to work, and loyalty to the organization.

They feel that their contributions are valued in the organization. Giving incentives, pay hikes, bonuses can also help to motivate employees. Recognizing their contributions and aspirations motivates them to work productively and increases his confidence that helps in their retention. Focus On Team Building Promoting team culture helps to actively involve all employees in achieving the goals and in overall success of the organization. Promoting team building imbibes a sense of belongingness among them that they are a part of larger goals or objectives of the organization. Team building promotes team work and team effort that help them to tackle work pressure and thus provide a competitive advantage to organization. Focusing on team building activities can help to reduce workplace conflicts between team members as they work in a team. Organizing team building games, seminars, outdoor events help to promote team spirit, unity, and reduce stress. Recognition of Performance Recognition of performance of employees is an effective method of employee retention. Although monetary compensation can act as a motivating factor, openly recognizing the performance, initiative, and good work increases the morale and motivates the employee to work more productively. Appreciating the performance motivates the employee and they feel valuable within the organization. This helps in employee engagement and to increase the productivity levels. 2.2 EMPLOYEE RETENTION TECHNIQUES 1. Employee Reward Program- You can make a provision of Monthly or Quarterly Award (depending upon the budget) for the best employee, Awarding 2 or 3 best workers each month. The award can be in terms of gifts or money.

If it is money then it should be divided into two parts, first part to be given with the next month salary and the remaining after 6 months. In this way he/she can be retained for 6 more months. These rewards shall be considered at the time of appraisal. 2. Career Development Program- Every individual is worried about his/her career. You can provide them conditional assistance for certain courses which are beneficial from your business point of view. Conditional assistance means the company will bear the expenses only if he/she gets an aggregate of certain percentage of marks. And entrance to that course should be on the basis of a Test and the number of seats to be limited. For getting admitted to such program, You can propose them to sign a bond with the company, like they cannot leave the company for 2 years or something after the successful completion of the course. 3. Performance based Bonus- The employee always comes to know about the profit of the company which is of course based on the strategic planning of the top management and the productivity of the employee. To get more work out of the employee, You can make a provision of Bonus. By this employee will be able to relate himself with the companys profit and hence will work hard. This bonus should be productivity based. You can make sure that this bonus is not adding extra-pressure on the budget of Your Company and you can arrange this by cutting a part of the salary hikes and presenting it to the employees in the form of bonus. 4. Employee Referral Plan- You can introduce Employee Referral Plan. This will reduce your cost (charges of external consultants and searching agencies) of hiring a new employee and up to an extent you can rely on this new resource. On every successful referral, employee can be given a referral bonus after 6 or 9 months of continuous working of the new employee as well as the existing employee. By this you can get a new employee at a reduced cost as well as are retaining the existing one for a longer period of time.

5. Loyalty Bonus- You can introduce a Loyalty Bonus Program in which you can reward your employee after a successful completion of a specified period of time. This can be in the form of Money or Position. This will encourage the fellow employees as well whether they are interested in money or position, they will feel fascinated. 6. Giving a voice to the Knowledge Banks- First of all you should try to retain your workforce intact, as they are the intellectual asset of the company. And above that you cant afford losing your knowledge banks. These are the people who stabilize the process. You can involve them in some of the decisions. 7. Employee Recreation- You should also let your employees enjoy in a light mood. You can take your employees to a trip or for an outing every year or bi-yearly. You can make use of this trip as well. You can start this trip with an opening note about the management views and plans, strategies etc. At the same time you can involve your top management into some of the fun activities as this will make feel the employees that they are very close to the management and everybody is same. 8. Gifts at some Occasions- You can give some gifts at the time of one or two festivals to the employees making them feel good and understand that the management is concerned about them. 9. Accountability- You should make each employee accountable so that he can also feel that he is as important as his manager. If he/she will be filled with this sense, he/she will seldom think of leaving the company. 10. Making the managers effective and easily accessible- You should make the management easily accessible so that the employee expectations can be clearly communicated to the top management, as it is impossible for the top management to reach each employee frequently.

11. Surveys- You should conduct regular surveys for feedbacks from employee about their superiors as well as other issues like food, development plans and other suggestions. This will make them feel of their importance and the caring nature of the company. Some of the suggestions might be of real good use for the company. 2.3 MANAGING EMPLOYEE RETENTION The task of managing employees can be understood as a three stage process:

1. Identify the cost of employee turnover 2. Understand why employee leave 3. Implement retention strategies 1. Identify the cost of employee turnover: The organizations should start with identifying the employee turnover rates within a particular time period and benchmark it with the competitor organizations. This will help in assessing the whether the employee retention rates are healthy in the company. Secondly, the cost of employee turnover can be calculated. According to a survey, on an average, attrition costs companies 18 months salary for each manager or professional who leaves, and 6 months pay for each hourly employee who leaves. This amounts to major organizational and financial stress, considering that one out of every three employees plans to leave his or her job in the next two years. 2. Understand why employees leave: Why employees leave often puzzles top management. Exit interviews are an ideal way of recording and analyzing the factors that have led employees to leave the organization. They allow an organization to understand the reasons for leaving and underlying issues. So an impartial person should be appointed with whom the employees feel comfortable in expressing their opinions.

3. Implement retention strategy: Once the causes of attrition are found, a strategy is to be implemented so as to reduce employee turnover. The most effective strategy is to adopt a holistic approach to dealing with attrition. An effective retention strategy will seek to ensure:

Attraction and recruitment strategies enable selection of the right candidate for each role/organization

New employees initial experiences of the organization are positive Appropriate development opportunities are available to employees, and that they are kept aware of their likely career path with the organization

The organizations reward strategy reflects the employee drivers The leaving process is managed effectively

2.4 NEED & IMPORTANCE OF EMPLOYEE RETENTION Let us understand why retaining a valuable employee is essential for an organization. Hiring is not an easy process: The HR Professional shortlists few individuals from a large pool of talent, conducts preliminary interviews and eventually forwards it to the respective line managers who further grill them to judge whether they are fit for the organization or not. Recruiting the right candidate is a time consuming process. An organization invests time and money in grooming an individual and makes him ready to work and understand the corporate culture: A new joinee is completely raw and the management really has to work hard to train him for his overall development. It is a complete wastage of time and money when an individual leaves an organization all of a sudden. The HR has to start the recruitment process all over again for the same vacancy; a mere duplication of

work. Finding a right employee for an organization is a tedious job and all efforts simply go waste when the employee leaves. When an individual resigns from his present organization, it is more likely that he would join the competitors: In such cases, employees tend to take all the strategies, policies from the current organization to the new one. Individuals take all the important data, information and statistics to their new organization and in some cases even leak the secrets of the previous organization. To avoid such cases, it is essential that the new joinee is made to sign a document which stops him from passing on any information even if he leaves the organization. Strict policy should be made which prevents the employees to join the competitors. This is an effective way to retain the employees. The employees working for a longer period of time are more familiar with the companys policies, guidelines and thus they adjust better: They perform better than individuals who change jobs frequently. Employees who spend a considerable time in an organization know the organization in and out and thus are in a position to contribute effectively. Every individual needs time to adjust with others: One needs time to know his team members well, be friendly with them and eventually trust them. Organizations are always benefited when the employees are compatible with each other and discuss things among themselves to come out with something beneficial for all. When a new individual replaces an existing employee, adjustment problems crop up. Individuals find it really difficult to establish a comfort level with the other person. After striking a rapport with an existing employee, it is a challenge for the employees to adjust with someone new and most importantly trust him. It is a human tendency to compare a new joinee with the previous employees and always find faults in him. It has been observed that individuals sticking to an organization for a longer span are more loyal towards the management and the organization: They enjoy all kinds of benefits from the organization and as a result are more attached

to it. They hardly badmouth their organization and always think in favour of the management. For them the organization comes first and all other things later. It is essential for the organization to retain the valuable employees showing potential: Every organization needs hardworking and talented employees who can really come out with something creative and different. No organization can survive if all the top performers quit. It is essential for the organization to retain those employees who really work hard and are indispensable for the system. The management must understand the difference between a valuable employee and an employee who doesnt contribute much to the organization. Sincere efforts must be made to encourage the employees so that they stay happy in the current organization and do not look for a change. 2.5 SEVEN STEPS TO INCREASE EMPLOYEE RETENTION Conduct job analysis audits to provide realistic job previews. Conduct job analysis audits with behavioral assessments, cognitive reasoning assessments, job simulations, and hard skills assessments (e.g., computer skills, etc.) to objectively define the core competencies required for success in each role (competency modeling). This helps in providing a realistic job preview for candidates and managers. Oftentimes what managers think they need for a certain role is different from that they actually need. Implement a well-designed assessment and selection process. Include behavioral assessments and structured behavioral interviewing techniques to increase the likelihood of hiring people that can, and will, do the job at a high level in your environment and for your managers (job fit assessment). Provide good employee orientation. The people you hire today are potentially your greatest resource for corporate success in the years ahead. As a senior leader, your participation in new employee orientation sends a vital cultural and leadership message: "Were all involved here in the drive toward what we want to be in the future." Everyoneeven the newest employeehas value.

 Implement programs for employee training and development. Provide ongoing professional development to show your willingness as an organization to develop your greatest assetyour people. Improve manager and employee relationships. Concentrate on the people that stay with you to learn what makes them happy then give them more of it! "People leave managers, not companies. If you have a turnover problem, look first at your managers," Marcus Buckingham and Curt Coffman write in First, Break All the Rules. Provide an equitable or fair pay system. Be competitive! Encourage succession planning. Identify roles for which employees may be suited in the future and work with them on designing their succession plan within the organization. Invest in cross-training, job shadowing, coaching, mentoring, and cross-experience.

CHAPTER 3 3. RESEARCH METHODOLOGY AND DESIGN 3.1 INTRODUCTION Research means a systematic and scientific research for pertinent information on a specific topic. According to Clifford Woody, research comprises defining and redefining problems, formulation of hypothesis or suggesting solutions, collecting, organizing and evaluating data. Making deduction and reaching conclusions and at last carefully testing the conclusions to determine where they fit the formulating hypothesis. A research design is the specification of methods and procedures for acquiring the needed data to solve the problem. 3.2 TYPE OF RESEARCH In this study descriptive research is used for testing. Descriptive research includes surveys and fact findings enquiries of different kinds. The main purpose of descriptive research is description of the state of affairs, as it exists at present. The main characteristic of this method is that the researcher has no control over the variables. The researcher can only report what has happened or what is happening. The methods of research utilized in descriptive research are survey methods of all kinds, including comparative and correlation methods. 3.3 DATA COLLECTION The data used for the purpose of the study are: Primary data Secondary data Primary Data

 Survey Secondary Data Internet Data from company executives 3.4 RESEARCH INSTRUMENT The research instrument used in the study is a Structured Questionnaire. This questionnaire comprises of definite concrete and predetermined questions, relating to the aspect, for which the researcher collects data, interprets and suggests suitable measures to improve the level of job satisfaction. 3.5 QUESTIONNAIRE DESIGN The questionnaire used for collecting the data is a structured questionnaire. It consists of 21 questions i.e., personal details and questions that are framed based on the objectives of the study. Questionnaire design is of structured type which consists of: Open ended Close ended Multiple choice 3.6 SAMPLING TECHNIQUES AND SIZE Simple Random Sampling method has been used in this study. This method is used for selecting 150 members as a random from the group of 1500 employees in iSOFT R&D Private Ltd., Chennai. Therefore it is a probability sampling technique. 3.7 TOOLS FOR ANALYSIS The statistical tools used for analysis by the researcher are that the percentage analysis and the chi square test. 3.8 LIMITATIONS OF THE STUDY The results and findings are confined to a limited area. The opinions of the respondents may be biased.

 Time and resource constraint. The sample taken for research was concerned only for 150 respondents.

CHAPTER 4

4. DATA ANALYSIS AND INTERPRETATION

4.1 DATA ANALYSIS AND INTERPRETATION The data after collection has to be processed and analyzed in accordance with the outline laid down for the purpose at the time of developing the research plan. This is essential for a scientific study and for ensuring that we have all the relevant data processing implies editing, coding, classification and tabulation of collected data so that they are acquainted with the analysis. The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exists among data groups. Thus in the process of analysis, relationships or differences supporting or conflicting with original or new hypothesis should be subjected to statistical tests of significance to determine with what valid data can be said to indicate any conclusions. Analysis of data in a general way involves a number of closely related operations that are performed with the purpose of summarizing the collected data and organizing them in such a manner that they answer the research questions.

Age wise Classification TABLE NO.: 4.1.1 Age in Years 21 25 years 26 30 years 31 35 years 36 40 years Above 40 years Total Number of Respondents 75 22 33 20 0 150 Percentage 50 14.67 22 13.33 0 100

Inference: The above table indicates that, 50% of the employees are between 21-25 years of age and 15% of the employees are between 26 30 years of age and 22% of the

employees are between 31 35 years of age and nearly 13 % of employees are 36 40 years of age.

Gender wise Classification TABLE NO.: 4.1.2 Gender Male Female Total Number of Respondents 87 63 150 Percentage 58 42 100

Inference: The above table indicates that, 58% of the employees are male and 42% of the employees are female.

Education wise Classification TABLE NO.: 4.1.3 Education Diploma Under Graduation Post Graduation Total Number of Respondents 0 96 54 150 Percentage 0 64 36 100

Inference: The above table indicates that, 64% of the employees are Under Graduates and 36% of them are Post Graduates.

Experience in iSOFT TABLE NO.: 4.1.4 Work Experience <1 year 1 to 5 years 5 to 10 years 10 to 15 years Above 15 years Total Number of Respondents 55 42 43 10 0 150 Percentage 36.67 28 28.67 6.66 0 100

Inference: The above table indicates that, 37% of the employees have experience of <1 year and 28% of them have 1 5 years of experience, 28% of them have experience of 5 10 years and 7% of them have experience of 10 15 years.

Holding Current Position TABLE NO.: 4.1.5

Current Position <1 year 1 to 5 years 5 to 10 years 10 to 15 years Above 15 years Total

Number of Respondents 22 118 10 0 0 150

Percentage 14.67 78.67 6.66 0 0 100

Inference: The above table indicates that, 15% of the employees are holding the current position for <1 year and 78% of them hold it for 1 5 years and 7% of them hold it for 5 10 years

Promotions in iSOFT TABLE NO.: 4.1.6

Promotions 1

Number of Respondents 11

Percentage 7.33

2 3 >3 None Total

21 11 10 97 150

14 7.33 6.67 64.67 100

Inference: The above table indicates that, 7% of the employees have got 1 promotion and 14% of the employees have got 2 promotion and 8% of the employees have got 3 promotions and 7% of the employees have got >3 promotions and 64% of the employees have not got any promotions Expectation towards Organization TABLE NO.: 4.1.7 Expectation Towards Organization Team Work Encouragement Stable Employment Job Security Favorable Package Career Growth Number of Respondents 33 33 11 10 63 Percentage 22 22 7.33 6.67 42

Others (Specify) Total

0 150

0 100

Inference: The above table indicates that, the expectation of the employees towards the organization are that 22% of the employees expect team work encouragement, 22% of the employees expect Stable employment, 8% of the employees expect job security, 6% of the employees expect favorable package and 42% of them expect career growth Part of Team and Working towards Organizations Goals TABLE NO.: 4.1.8 Part of Team Strongly Agree Agree Neutral Disagree Strongly Disagree Total Number of Respondents 85 54 11 0 0 150 Percentage 56.67 36 7.33 0 0 100

Inference: The above table indicates that, 57% of the employees strongly agree that they are part of the team and they are working towards organizations goals and 36% of them agree with this and 7% of them are neither agree nor disagree

Mutual Respect TABLE NO.: 4.1.9

Mutual Respect Strongly Agree Agree Neutral Disagree Strongly Disagree Total

Number of Respondents 74 65 11 0 0 150

Percentage 49.34 43.33 7.33 0 0 100

Inference: The above table indicates that, 49% of the employees strongly agree that they have mutual respect, 44% of them agree and 7% of them neither agree nor disagree

Leave TABLE NO.: 4.1.10 Leave Strongly Agree Agree Neutral Disagree Strongly Disagree Total Number of Respondents 42 86 22 0 0 150 Percentage 28 57.33 14.67 0 0 100

Inference: The above table indicates that, 28% of the employees strongly agree that they can avail leave easily during emergency, 57% of them agree and 15% of them neither agree nor disagree

Work Challenging and Interesting TABLE NO.: 4.1.11 Work Challenging & Interesting Strongly Agree Agree Neutral Disagree Strongly Disagree Total Number of Respondents 85 54 11 0 0 150 Percentage 56.67 36 7.33 0 0 100

Inference: The above table indicates that, 57% of the employees strongly agree that their work is challenging and interesting, 36% of them agree and 7% of them neither agree nor disagree.

Job TABLE NO.: 4.1.12 Job Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total Number of Respondents 64 86 0 0 0 150 Percentage 42.67 57.33 0 0 0 100

Inference: The above table indicates that, 43% of the employees are highly satisfied with their job and 57% are satisfied

Team Work TABLE NO.: 4.1.13

Team Work Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total

Number of Respondents 64 65 10 11 0 150

Percentage 42.67 43.33 6.67 7.33 0 100

Inference: The above table indicates that, 43% of them are highly satisfied with the team work, 43% are satisfied, 7% of them are neither satisfied nor dissatisfied and 7% of them are dissatisfied

Supervisor TABLE NO.: 4.1.14 Supervisor Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total Number of Respondents 54 85 11 0 0 150 Percentage 36 56.67 7.33 0 0 100

Inference: The above table indicates that, 36% of them are highly satisfied with their supervisor, 57% are satisfied, 7% of them are neither satisfied nor dissatisfied

Salary TABLE NO.: 4.1.15 Salary Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total Number of Respondents 21 65 54 10 0 150 Percentage 14 43.33 36 6.67 0 100

Inference: The above table indicates that, 14% of them are highly satisfied with their salary, 43% are satisfied, 36% of them are neither satisfied nor dissatisfied and 7% of them are dissatisfied

Employee Welfare and Health TABLE NO.: 4.1.16 Welfare and Health Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total Number of Respondents 43 86 0 21 0 150 Percentage 28.67 57.33 0 14 0 100

Inference: The above table indicates that, 29% of them are highly satisfied with the employee welfare and health, 57% are satisfied and 14% of them are dissatisfied

Incentives TABLE NO.: 4.1.17 Incentives Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total Number of Respondents 10 55 44 31 10 150 Percentage 6.67 36.67 29.33 20.66 6.67 100

Inference: The above table indicates that, 7% of them are highly satisfied with their incentives, 37% are satisfied, 29% of them are neither satisfied nor dissatisfied, 20% of them are dissatisfied and 7% of them are highly dissatisfied

Performance Appraisal TABLE NO.: 4.1.18 Performance Appraisal Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total Number of Respondents 10 44 66 20 10 150 Percentage 6.67 29.33 44 13.33 6.67 100

Inference: The above table indicates that, 7% of them are highly satisfied with the performance appraisal of the organization, 29% are satisfied, 44% of them are neither satisfied nor dissatisfied, 13% of them are dissatisfied and 7% of them are highly dissatisfied

Relationship with Supervisor TABLE NO.: 4.1.19 Relationship with Supervisor Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Total Number of Respondents 64 86 0 0 0 150 Percentage 42.67 57.33 0 0 0 100

Inference: The above table indicates that, 35% of them are highly satisfied with the relationship with their supervisor, 37% are satisfied, 28% of them are neither satisfied nor dissatisfied

Supervisor Listen to Your Suggestions TABLE NO.: 4.1.20 Supervisor Listen to Your Suggestions Sometimes Mostly Neutral Always Not at all Total Number of Respondents 11 52 22 54 11 150 Percentage 7.33 34.67 14.67 36 7.33 100

Inference: The above table indicates that, 7% of the employees say that their supervisors listen to their suggestions sometimes, 35% of them mostly, 15% of them say neutral, 36% of them say always and 7% of them say not at all

Supervisor Treating Fairly TABLE NO.: 4.1.21 Options Yes No Total Number of Respondents 150 0 150 Percentage 100 0 100

Inference: The above table indicates that, 100% of the employees say that their supervisors treat them fairly.

Challenging Assignments TABLE NO.: 4.1.22 Options Yes No Total Number of Respondents 150 0 150 Percentage 100 0 100

Inference: The above table indicates that, 100% of the employees say that their supervisors provide them with challenging assignments

CHAPTER 5 5. SUGGESTIONS The main expectation of the employees is that the career growth and the next is the team work encouragement. It would be better if we can improve the salary and also concentrate on employee welfare and health. The employees are also dissatisfied with the incentives and the performance appraisal.

 If these suggestions are taken into account then the existing employees can be retained to an extent.

CHAPTER 6 6. REFERENCE www.ZERORISKHR.com http://retention.naukrihub.com/retention.html http://www.contentwriter.in/articles/hr/employee-retention-tools.htm http://retention.naukrihub.com/managing-employee-retention.html http://www.managementstudyguide.com/importance-of-employee-retention.htm