Employee Retention Techniques Essay Example

Employee Retention Techniques Paper The project work titled, â€Å"A Study on Employee Retention Techniques among employes in Salem District Milk Producers Union Limited†. The main objective of this study is to evaluate the employee turnover level of the company. Employee is not an economic factor but a total personality having his own feelings and a sense of responsibilities towards his family, the industry and the nation. The worker has a vital role in increasing productivity and management has to create conditions in which worker can make their maximum contribution towards the objectives of fulfilling the essential needs of the community. One of the most significant factors determining the productivity and advancement of industries lies in the efficiency and experience of workers. The employee turnover level will be high means it is difficult to retain them. So the organization is to identify the factors and find out way to retain them. The secondary objective of the study is to analyze the problems and difficulties faced by the HR managers in retaining and motivating the key employees in the organization. The research methodology is a systematic way to solve the research problem. The descriptive research design is used in this project. The major purpose of descriptive research is description of the state of affairs as it exists at present. The type of sampling used for the study is simple random sampling. The research was conducted in salem district milk producers union ltd. The sample size of this study is 100. We will write a custom essay sample on Employee Retention Techniques specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Employee Retention Techniques specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Employee Retention Techniques specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Questionnaire is used to collect the data. There are two type of questions used in this study. First is open ended questions and second one is multiple choice questions. After the collection of data, analysis and interpretation has been done by using statistical tools such as simple percentage, chi test. Findings of the study is reveals that the company is first satisfied internal customers so it is suggested that the company is provided the better compensation. 2 1. 2. Statement of the problem Employees are incomparable resources and cannot be substituted by other factors of production. The employee turnover level will be high means it is difficult to retain them. So the organization is to identify the factors and find out way to retain them. Hence, the causes of this must be investigated and effective retention strategies must be done and implemented in order to better understand these circumstances 3 1. 3. Scope of the study This study tries to understand the meaning of retention and the study is only related to employee retention techniques and unrelated to all other HR concepts, the survey is not conducted all over industry and only in Salem District Milk Producers Union Ltd. to employees and executive level. This study aims to know the reasons for employees leaving the jobs and come out with findings and suggestions which will help the HR managers to retain their skilled employees. 4 1. 4. Objectives of the study PRIMARY OBJECTIVE: †¢ To identify the labour turnover of the Salem District Milk Producers Union Limited.. SECONDARY OBJECTIVE: †¢ To find o ut how to retain the employees through motivation techniques in Salem District Milk Producers Union ltd. †¢ To analyze the problems and difficulties faced by the HR managers in retaining and motivating the key employees in the organization. To offer suitable suggestions to improve the labour turnover level of. Salem District Milk Producers Union ltd 5 1. 5. Limitations of the study * It was difficult to meet all the respondents in the unit due to shift constraints. * The respondents were reluctant to answer due to their busy schedule. * This study is restricted to Salem District Milk Producers Union Ltd. 6 1. 6 CHAPTERIZATION: Chapter – I The first chapter deals with the introduction of the concept of Empolyee retention Chapter- II The second chapter deals with the concept and review of related literature. Chapter-III The third chapter deals with the research methodology that contain the research design, sampling detail, data collection details, tools which is used in the study. Chapter-IV The fourth chapter deals with the analysis and interpretation of data. Chapter-V The fifth chapter highlights the findings, suggestions, recommendation and conclusion. CHAPTER – II CONCEPTS AND REVIEW 7 CHAPTER II Concept and review of literature 2. 1. Concept of employee retention techniques Retention will be a challenge, according to a recent study. Retention requires a competitive salary and great benefits. However, retention of your best requires a whole lot more. Employee involvement, recognition, advancement, development and pay based on performance just get you started in your quest to retain your best. An employee retention program boosts the bottom line and improves customer Satisfaction. Employers know only too well the tightening effect that continued growth has had on the labor market. Human resources publications constantly are regaling employers with tales of employers competing for scarce employees using techniques like allowing employees to bring their pets to work or hosting job fairs for convicts. Losing key employees is more than an inconvenience. Employee retention problems cost your organization money and time when you have to find and train replacements. In addition, a low employee retention rate drags down employee morale, hampers long-range planning and negatively impacts customer opinion. If a company cant keep its best employees, then it gains a reputation as a bad place to work and a company others dont want to do business with. Business owners need to put an employee retention plan in place to keep and recruit top employees. Although money plays a part in retention of employees, you might be surprised to learn that its not the most important factor in employee retention. 1. Clear communication of job requirements and performance expectations. 2. Efficient use of your employees skills and talents. 3. Appropriate training and supervision. 4. Opportunities for employees to learn new skills and advance in the company. 5. Consistent rewards and recognition for employee performance. 8 A few methods to reduce labor turnover are as follows: 1. Improve factory –working conditions 2. Handle workers grievances faithfully. 3. Don’t abuse or fire workers for petty matters. 4. Try to minimize fluctuations in the work. 5. Give appropriate wages and incentives to the workers. 6. Take care of employees’ health and welfare. 7. Adopt safety and good house keeping practices. 8. Motivate the employees and try to light up their morale. 9. Be impartial in the matters of promotion and Transfers. 2. 1. 1 EMPLOYEE RETENTION MEANING: Employee retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. Corporate is facing a lot problem in employee retention these days. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. There is no dearth of opportunities for talented person. There are many organizations which are looking for such employees. If a person is not satisfied by the job he’s doing, he may switch over to some other more suitable job. In today’s environment it becomes very important for organizations to retain their employee. 2. 1. 2 DEFINITION: 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. 9 2. 2. REVIEW OF RELATED LITERATURE Khatri, Budhwar and Fern. (2001) indicated that there is dearth of research studies examining employee turnover in Asian and developing countries contexts where this problem has given sleepless nights to HR managers and they put emphasis on the need to carry out research in Asian countries contexts. They further reported that there are very few research studies examining the issue of turnover in Asian context and such investigations have used a limited number of variables with small samples, thus this raises concerns of model specification and generalization. In a more recent article Baruch Budhwar (2006) repeated the call to widen perspectives of turnover research beyond the boundaries of western cultures. Khawaja et al. (2005) used descriptive qualitative research design based on 45 Interviews from registered nurses in Tertiary Care University Hospital, Pakistan Concluded that under-stressed, frustrated and demoralized nurses leave. They further point out that turnover problem is common in all parts of the world including developing countries; however, it has not been examined in Pakistan’s context. A study conducted by Khawaja and Nansey (1999) indicated that nursing turnover from1996 to 1999 has remained above 30%. 10 2. 3 COMPANY PROFILE The Salem District Co-operative Milk Producers Union Limited is a replica of the District Milk Union in Gujarat state based on the famed â€Å"AMUL† system. The Salem Milk Union is, therefore sandwiched in the middle of the 3-tier system popularly know as the â€Å"ANAND† District level and the primary Cooperative societies at the village level. The Salem District Milk Union was registered on 10. 07. 1978 and started functioning on 07. 10. 1978 . Its Area of operation is the entire Salem. District . Milk is now supplied from 1101 primary Milk Co-operative societies to the feeder-balancing Dairy directly and through the chilling centers of Attur,Namakkal and P. Velur cattle feed in being manufactured at the cattle feed plant at Salem the entire project has been funded by the National Dairy Development Board. ’ANAND† through the GOVT of Tamil nadu and the Co-operative Milk producer Federation. Milk is supplied of the feeder balancing Dairy either directly from nearly societies within a radium of approximate 1101 745 primary Milk Co-operative through 93 milk collection routes including B. M. C. These routes are pleased by hired milk trucks twice a day. Milk is received and processed at the feeder at the feeder balancing Dairy to ensure a year round marked for milk producer. When the milk reached the Union, the milk is processed through three plants. These three plants heat the milk between 72 C so those unwanted germs are killed. Then from the processed milk the Standardized milk is 3 lakh litres per day surplus milk produced during the flush season is converted to power for reconstitution during the lean season to ensure a year round available to the concept of feeder balancing dairy. 11 Milk also supplied to other district unions their times of necessary form this union besides to the supply to the TamilNadu Milk Producers Federation for Metro consumption. The Union’s major products are Standardized Butter,Ghee and Skim Miik Powder. The excess at from mik after standardized is converted to butter and ghee. The union has a 10-ton and a 30-tan power plant for production of milk powder. Besides skim powder, butter and ghee the union also manufactures popular products like palkhoa, flavoured milk, masala butter milk and ice cream for local consumer. These products have found a regular market locally. Milk powder, butter and ghee form this union is of the highest quality is in good demand in the up-country markets.