18-06-2012, 02:20 PM
A STUDY ON EMPLOYEE RETENTION STRATEGIES ADOPTED BY AMRITA INSTITUTE OF MEDICAL SCIENCES
INTRODUCTION
Talented men leave…dead wood doesn’t
Employee turnover is one of the largest though widely unknown costs an organization faces. Employee turnover costs companies 30 to 50% of the annual salary of entry-level employees. . Now that so much is being done by organizations to retain its employees, why is retention so important? Is it just to reduce the turnover costs? Well, the answer is a definite no. It’s not only the cost incurred by a company that emphasizes the need of retaining employees but also the need to retain talented employees from getting poached.
Employee retention is a process in which the employees are encouraged to remain in the organization for the maximum period of timeEmployee retention is beneficial for the organization as well as the employee. Employees today are different. They are not the ones who don’t have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. If they don’t, they would be left with no-good employees. A good employer should know how to attract and retain its employees..
Philosophically, employee retention is important. In all cases it is senseless to allow good people to leave the organization. When they leave they take with them the intellectual property, relationships, investments, occasionally an employee or two and a chunk of company’s future.
Employee retention strategies help organization provide effective employee communication to improve commitment and enhance work force support for key initiatives. They also provide full support to the marketing communication efforts by helping the organization build customer loyalty by distinguishing and poisoning the firm’s unique products and services in the crowded market place
SIGNIFICANCE OF THE STUDY
High turnover often leaves customers and employees in the lurch;
departing employees take a great deal of knowledge with them. This lack of continuity makes it hard to meet the organization’s goals
Replacing employees’ costs money. The cost of replacing an employee is estimated as up to twice the individual’s annual salary (or higher for some positions, such as middle management), and this doesn’t even include the cost of lost knowledge
Recruiting employees consumes a great deal of time and effort, much of it futile. Bringing employees up to speed takes even more time
OBJECTIVES OF THE STUDY
1. To document the nature and extent of employee turnover
2. To identify underlying causes of employee retention and turnover.
3. . To identify the challenges faced by the organization in retaining the employees.
4. To assist the firm in the development of a focused employee retention Strategy
SCOPE OF THE STUDY
This project entails in detail the turnover rate, its causes and challenges faced by the management. It also aims to provide necessary suggestions for further improvement and design an appropriate retention strategy for the same.
RESEARCH METHODOLOGY
• Descriptive research design
Data collection method;
• Primary data
Data is collected through a structured questionnaire and personal interview with the department heads.
• Secondary data;
Company reports, turnover records, journals
Sample size=100 samples
Sampling units;
Sampling method; simple random sampling.
LIMITATIONS
1. lack of support from the employees can be a limitation
2. Unavailability of exact figures.