Project Final

A SUMMER PROJECT REPORT

ON

“Benchmarking Retention Policies

Public Sector v/s Private Sector

AT

NTPC Limited”

Submitted in partial fulfillment for the award of

MASTER OF BUSINESS ADMINISTRATION (MBA)

Submitted by

PUNEET NANDA

Enroll no: 06212303909

DELHI INSTITUTE OF ADVANCED STUDIES

Guru Gobind Singh Indraprastha University, Delhi

JUNE-JULY 2010

Page | 1

ACKNOWLEDGEMENT

I would like to acknowledge the efforts of many individual who have helped brining this project on “Benchmarking retention techniques” to a successful completion.

Firstly I would like to thank Ms. QURATULAIN KHALID, DGM (HR-Rect.) for giving me the wonderful opportunity to undertake this project at NTPC. Her expert guidance and suggestions helped me to make this project a successful one.

I would like to extent my gratitude to my industry guide Ms DEEPA GURNANI for her deep interest in the subject helped me to refine my ideas to reflect on the topic. Her patience, continuous guidance and support enabled me to understand the relationship between recruitment and retention and thus gave me a better insight to the retention techniques.

I would also like to thank all the members of the Recruitment department for their helpful support to

make the successful completion of this project possible.

I would like to show my greatest appreciation to my faculty guide Ms. N. Malati, for her tremendous

support and guidance which helped me a lot to in completion of the project.

Puneet Nanda

(06212303909)

MBA – 3A

Page | 2

EXECUTIVE SUMMARY

This study examines the practices that companies can use to overcome the challenges that organizations face with employee retention in an increasingly competitive labor market. Just competitive salaries aren't the lone factor in reducing turnover. As this study illustrates, other uses of the money are also very effective.

It also analyzes the current retention practices in the organizations across public and private sector and thus providing a benchmark of practices for effective talent retention irrespective of different sectors, different industries and different companies.

The project includes the factors such as:

Social Practices. Financial Practices. Non-Monetary Incentive Practices. Transparent Work Culture and Communication Practices. Quality Work Environment and Work Life Balance Practices. Empowerment Practices.

Page | 3

TABLE OF CONTENTS

TOPIC PAGE NO.

1. INTRODUCTION

1.1Objective

1.2Research methodology

2. COMPANY PROFILE

3. LITERATURE REVIEW

4. CONCEPTUAL FRAMEWORK

5. ANALYSIS & FINDINGS

5.1Data Analysis And Interpretations

6. FINDINGS AND SUGGESTION

6.1 Key Findings

6.2 Suggestions

6.3 Conclusion

6.4 Limitations

7. ANNEXURE

7.1 Questionnaire

8. BIBLIOGRAPHY

9. MISCELLANEOUS

Page | 4

INTRODUCTION

The benchmarking project was taken to focus on the retention policies and procedures to help the

company compare the practices followed, with the opinion of the market trend. The HR team can

identify, attract, and retain outstanding employees by understanding and adapting the effective and

innovative practices that the companies are all ready using. Leading companies seek a deeper

understanding of how to best manage their talented employees to meet short term goals as well as long

term strategic goals.

The insight and best practices showcased in this report are distilled from lessons learned from

interviews with executives who have intensive experience in designing implementing and managing

HRD and Retention systems. This research is a combined body of knowledge concerning excellence in

talent retention, which will provide a value able operational compass to guide NTPC corporate efforts to

improvise its retention policies to attain a best in class retention system. The retention policies are of

paramount importance in order to retain its human resource which enables the company to fulfill its

corporate aims and objectives, control budget for recruitment. A good retention policy and procedure

promotes and support good practice for those with responsibility for employee engagement.

It is necessary to regularly review HR policies to ensure growth of an organization.

Obsolescence comes faster than it is spelt. Similarly, policies have to be monitored continuously and

modified based on the projected needs. Policies should contribute to the achievement of the objective of

an organization and not hinder its growth and vision. In industries where knowledge transfer takes place

and hence, it needs policies and procedures in place. Thus, developing retention & engagement policy

and procedure through benchmarking features as a critical activity in the business world as it is a vital

approach for sharing and transferring knowledge. Companies across globe have embraced these but

have done so with a varied level of success. Some have managed to create huge marketplace advantages

whilst others have fared less favorably.

Page | 5

The purpose of this research is to establish the level of benchmarking activity and application to create

best-in-class engagement system. The information gathered included both the hard and soft issues

associated with benchmarking and following analysis, attempted to evaluate the level of benchmarking

maturity reached across different industry fields and size of operation. This study helps undertaking

what leads to effective benchmarking and development of best practices for Employee Retention and

Engagement.

As retention management is a highly topical subject and an important dilemma many organizations

might face in the future, if not facing it already.

International competition, the rapidly growing size and complexity of organizations, the changing

values, career concerns and the structure of workforce- all these and a host of other factors have made

the traditional approach to personnel management absolute. The current trend demands a more

comprehensive, more strategic perspective recruit utilize and conserve valuable human resources.

Making effective selection decisions for personnel and effectively retaining them is one of the most

important functions of HRM, which comprises the following sub functions:

Determining the nature of jobs to be filled.

Determining the type of personnel required.

Determining the source of recruitment.

Determining the selection process.

Determining the factors responsible for employee engagement.

Determine what retention practices to be followed.

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

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.

NTPC uses systematic and standardized practices for employee retention management which results in

NTPC having one of the biggest pools of talented, skillful as well as satisfied and engaged employees,

as NTPC has become a Social Status for its employees. And NTPC secured 7th rank amongst the top

ten companies in the “India’s Best Companies TO WORK FOR”; A study by THE ECONIMICS

TIMES & GREAT PLACE TO WORK INSTITUTE INDIA.

Page | 6

OBJECTIVES OF THE PROJECT

To identify the best retention policies/practices across the industry.

To analyze the consistency of best practices with respect to Public Sector vs. Private Sector.

To suggest the strategies and steps for reducing turnover and improving retention.

To analyze policies practices and procedures of various companies that may help to eradicate

obsolete procedures, thereby maximizing the effectiveness of retention practices.

Thus the study would help the HR department of NTPC shift into a more strategies role. It would

bring in focus the effectiveness of the retention policy and practices of NTPC.

Page | 7

RESEARCH METHODOLOGY

This chapter explains the methods used to carry out the study, giving special emphasis to the treatment

and techniques used to analyze the data.

As an initial step in developing this project, the policies practiced at NTPC were studied

thoroughly.

Then a study was done to know the various policies practiced at NTPC.

Based on the data available and on the experience of the HR department of NTPC, an initial list

was developed which grouped policies under different heads as per their effective results.

Then a study/survey was conducted which covered many reputed companies across Delhi NCR,

both public and private sector.

The approach and methodology followed for data collection and analysis was the same for all

the companies.

The second phase involved studying the requirement of retention policies as per different sectors

and work profile of the employees, through various interviews with HR executives.

The purpose of the interviews was to gain an in depth understanding of trends and issues related

to the practice of various retention policies across public and private sector companies at both

the corporate and departmental levels.

After reviewing the feedback from the interview process, the data was finalized to review the

potential best practice activities and identify the corporate recruitment programs.

The third phase involved comparing and benchmarking the retention policies and procedures of

NTPC against other public and private sector companies.

After collecting data at the departmental level, best practices were assembled to identify

horizontal trends across departments.

Type of Research: Explorative

Population: HR Executives

Sample Size: 65

Sampling Technique: Convenient Sampling

Page | 8

INSTRUMENTS DEVELOPED

There was a single booklet of questionnaire consisting of 4 pages; the whole questioner was

divided into different set of questions. It was prepared on the basis to assess NTPC on various

grounds of retention and engagement policies and procedures practiced.

A. General questions on Retention Policies and there practice standards.

B. Questions on effectiveness on various measures for talent retention.

C. Question on views about retention practices that need to be practiced.

The questionnaire was structured in a way so that some of the questions could be measured on

Likert Scale and the rest of the questionnaire was build up on dichotomous questions.

Administration of one book let of questionnaire took approximately 5-7 minutes.

TOOLS OF DATA COLLECTION

Both primary and secondary data were collected for the analysis.

1. Primary Data :

The information about various retention and engagement practices in NTPC was collected by

talking to the HR personals across different HR departments in NTPC.

For finding out the best practices for retention and engagement of employees at NTPC,

questionnaires were administered to people as per the target.

For the purpose of benchmarking, information about the various retention practices was sought

form HR staff of different companies via e-mail and interviews.

Page | 9

2. Secondary Data :

Secondary data was collected for the purpose of effective and successful benchmarking.

Information about the various recruitment activities of different companies was collected from:

Organizational brochure on INTERNET.

Organizational Manuals.

Previous records and documents of organizations on INTERNET.

STATISTICAL METHODS & TECHNIQUES USED FOR DATA ANALYSIS:

Mean response method is use extensively to evaluate the responses.

Various charts and graphs are used to presents the analyzed data such as-

o Pie Chart

o Bar Graphs

Page | 10

OVERVIEW OF THE COMPANY

NTPC Limited (Formerly National Thermal Power Corporation) is the largest state-owned power

generating company in India. Forbes Global 2000 for 2009 ranked it 317th in the world. It is an Indian

public sector company listed on the Bombay Stock Exchange although at present the Government of

India holds 84.5%(after divestment the stake by Indian government on 19october2009) of its equity.

With a current generating capacity of 31134 MW, NTPC has embarked on plans to become a 75,000

MW company by 2017. It was founded on November 7, 1975.

Figure 1 Installed Capacity & Generation of NTPC

NTPC's core business is engineering, construction and operation of power generating plants and

providing consultancy to power utilities in India and abroad.

The total installed capacity of the company is 31134 MW (including JVs) with 15 coal based and 7 gas

based stations, 4 Joint Venture Projects (1,054 MW). NTPC acquired 50% equity of the SAIL Power

Supply Corporation Ltd. (SPSCL) located across the country. In addition under JVs, 3 stations are coal

based & another station uses naphtha/LNG as fuel. By 2017, the power generation portfolio is expected

to have a diversified fuel mix with coal based capacity of around 53000 MW, 10000 MW through gas,

9000 MW through Hydro generation, about 2000 MW from nuclear sources and around 1000 MW from

Renewable Energy Sources (RES). NTPC has adopted a multi-pronged growth strategy which includes

capacity addition through green field projects, expansion of existing stations, joint ventures, subsidiaries

and takeover of stations. NTPC has set new benchmarks for the power industry both in the area of

power plant construction and operations. It provides power at the cheapest average tariff in the country.

Page | 11

NTPC has been operating its plants at high efficiency levels. Although the company has 18.79% of the

total national capacity it contributes 28.60% of total power generation due to its focus on high

efficiency. NTPC’s share at 31 Mar 2001 of the total installed capacity of the country was 24.51% and

it generated 29.68% of the power of the country in 2008-09. Every fourth home in India is lit by NTPC.

170.88BU of electricity was produced by its stations in the financial year 2005-2006. The Net Profit

after Tax on March 31, 2006 was INR 58,202 million. Net Profit after Tax for the quarter ended June

30, 2006 was INR 15528 million, which is 18.65% more than for the same quarter in the previous

financial year. 2005).

Figure 2 NTPC in Indian Power Sector

In October 2004, NTPC launched its Initial Public Offering (IPO) consisting of 5.25% as fresh issue

and 5.25% as offer for sale by Government of India. NTPC thus became a listed company in November

2004 with the government holding 89.5% of the equity share capital. The rest is held by Institutional

Investors and the Public. The issue was a resounding success. NTPC is among the largest five

companies in India in terms of market capitalization.

The concept of Corporate Social Responsibility is deeply ingrained in NTPC's culture. Through its

expansive CSR initiatives, NTPC strives to develop mutual trust with the communities that surround its

power stations.

Page | 12

NTPC is committed to the environment, generating power at minimal environmental cost and

preserving the ecology in the vicinity of the plants. NTPC has undertaken massive a forestation in the

vicinity of its plants. Plantations have increased forest area and reduced barren land. As a responsible

corporate citizen, NTPC is making constant efforts to improve the socio-economic status of the people

affected by its projects. Through its Rehabilitation and Resettlement programs, the company endeavors

to improve the overall socio economic status Project Affected Persons.

NTPC was among the first Public Sector Enterprises to enter into a Memorandum of Understanding

(MOU) with the Government in 1987-88. NTPC has been placed under the 'Excellent category' (the best

category) every year since the MOU system became operative.

Page | 13

NTPC’s VISION

"A WORLD CLASS INTEGRATED POWER MAJOR, POWERING INDIA’S GROWTH, WITH INCREASING GLOBAL PRESENCE."

NTPC’s MISSION

“DEVELOP AND PROVIDE RELIABLE POWER, RELATED PRODUCTS AND SERVICES AT COMPETITIVE PRICES, INTEGRATING MULTIPLE ENERGY SOURCES WITH INNOVATIVE AND ECO-FRIENDLY TECHNOLOGIES AND CONTRIBUTE TO SOCIETY.”

CORE VALUES

This corporate plan provides details of the overall agenda for NTPC. The successful delivery of this

agenda would require a committed work force that identifies with and supports the vision. To ensure

realization of this corporate agenda, a set of core values should be central to, and govern each activity of

the organization.

Known as one of the MAHARATNAS’s of the PSU’s NTPC has its following core values. They are

known as (BCOMIT) as follows: -

B-Business Ethics

C-Customer Focus

O-Organizational & Professional pride

M-Mutual Respect and Trust

I- Innovation & Speed

T-Total quality for Excellence

Page | 14

THE HUMAN RESOURSE

Powering India’s Growth: Through People

It strongly believes in achieving organizational excellence through Human Resources and follows

"People First" approach in order to leverage full potential of its 25,000 strong workforce.

At NTPC, People before Plant Load Factor is the mantra that guides all HR related policies. NTPC has

been awarded No.1, Best Workplace in India among large organizations and the best PSU for the year

2009, by the Great Places to Work Institute, India Chapter in collaboration with The Economic Times.

All HR initiatives are undertaken within this broad framework to actualize the HR Vision of "enabling

the employees to be a family of committed world class professionals making NTPC Ltd a learning

organization.

To induct talent and groom them into dedicated cadre of power professionals “Executive Trainee”

Scheme was introduced in the year 1977 for recruitment in the disciplines of Mechanical, Civil,

Electrical, control and instrumentation, HR and finance disciplines also. Besides a comprehensive one

year training comprising theoretical inputs as well as on-the-job training, the new recruits are also

attached with senior executives under a systematic and formal ‘Mentoring System’ of the company to

integrate them into the culture of the company.

As part of post employment training and development opportunities, a systematic Training plan has

been formulated for ensuring minimum seven man days training per employee per year and includes

level wise planned intervention designed to groom people for assuming positions of higher

responsibility, as well as specific need based on scientific Training Needs Analysis. NTPC has set up 15

project training centres, 2 simulator training centres and an apex institute namely 'Power Management

Page | 15

Institute' (PMI). While the project training centres (Employee Development Centres) have specialized in

imparting technical skills and knowledge, PMI places emphasis on management development.

In order to realize the HR Vision of making NTPC a learning Organization by providing opportunities

to continually learn new capabilities a number of initiatives have been taken. NTPC Open Competition

for Executive Talent (NOCET) is organized every year in which teams of executives compete annually

through oral and written presentation on a topical theme. Similarly "Professional Circles" have been

formed department-wise where Executives of the department meet every fortnight to share their

knowledge and experiences and discuss topical issues. In order to tap the latent talent among non

executives and make use of their potential for creativity and innovation, Quality Circles have been set

up in various units/offices in NTPC.

Besides a management journal called "Horizon" is published quarterly to

enable employees to share their ideas and experiences across the

organization. Demonstrating its high concern for people, NTPC has developed strong employee welfare,

health & well-being and social security systems leading to high level of commitment. NTPC offers best

quality-of-life through beautiful townships with all amenities such as educational, medical and

recreational opportunities for employees and their family members. The motivation to perform and

excel is further enhanced through a comprehensive NTPC Rewards and Recognition system.

In order to institutionalize a strong Culture based on Values a number of initiatives are taken to

actualize the Vision and Core Values (BCOMIT) across the company. A culture of celebrating

achievements and a strong focus on performance are a way of life in NTPC. NTPC has institutionalized

“Development Centers" in the company to systematically diagnose the current and potential

competency requirements of the employees with the objective of enhancing their development in a

planned manner. These Centers give a good insight to the employees about their strengths and

weaknesses, the gaps in their competencies which they can bridge through suitable support from

company. Due to innovative people management practices there is a high level of pride and

commitment amongst employees as reflected in the various external surveys including Great Places to

Work for in India in which NTPC was rated third Great Place to work for in the country in 2005.

Page | 16

HR OBJECTIVESEmployee DevelopmentCareer PlanningDeveloping Employee Commitment and prideEmployee RelationsQuality of Work Life

HR VISION“To Enable Our People to Be a Family of Committed World Class Professionals, Making NTPC a learning organization”

HR GOALSActualize the HR Vision

Enhance organizational performance and commitment of employeesBuild a competency based organization

Institutionalize core values create culture of team building.

In alignment of NTPC’s Vision and Mission, the HR vision is also defined to the following HR

Objectives and HR Goals.

To realize its HR vision and HR goals, there are well defined strategies which ultimately aim at

achieving the corporate objective and vision. These strategies are futuristic in nature and with main

emphasis laid on building competency as well as commitment. The following measures are being

adopted:

Page | 17

HR STRATEGIESCompetency Building Measures:

Revised Performance Management System.Leadership Development.Integrated Career Planning, Development and Succession Planning.Training and Development.E-Learning and Global Exposure.

Commitment Building Measures:Enabling Organizational Climate.

Rewards and Recognition.Culture Building and System Building Measures.

Core Value Actualization.Communication and Knowledge Management System.

Benchmarking.

THE SUCCESS STORY OF GLORIOUS YEARS

1975 Electricity Supply Act, 1948 amend & NTPC Incorporated on 7th Nov.

Page | 18

1977 NTPC acquired the first patch of land at Singrauli in September.

The first batch of executive trainees joined the company.

1979 Govt. of India approved the implementation of Farakka project in March.

1980 Former Soviet Union offers to assist in setting up of power stations.

1981

Farakka Super Thermal Power Project in West Bengal was the fourth among the first

series of four super thermal power projects taken up by NTPC. On 29th December late

Smt. Indira Gandhi, the then Prime Minister laid the foundation stone for the project.

1982

Power Management Institute, Delhi, a center of education established.

On 12th November late Smt. Indira Gandhi, the then Prime Minister laid the foundation

stone for Vindhyachal Super Thermal Power Project in Madhya Pradesh.

1983 In the very first year of commercial operation, NTPC earned a profit of ` 4.51 Crore in

the financial year 1982-83.

1986 Synchronization of its first 500MW unit at Singrauli.

Became one of the first PSUs to issue bonds in the debt market.

1989 The first gas (88MW) of first gas based combined cycle power plant at Anta, Rajasthan

Commissioned.

1990 The total installed capacity crossed 10000 MW

1993

For the first time, IBRD extended the direct loan of USD 400 Million under time slice

concept for its projects.

1994 Crossed 15000 MW of installed capacity.

Declared a dividend of ` 65 crore for the first time.

1995

NTPC celebrated 20 years of its existence. Various programs were organized to mark its

twentieth anniversary.

A new logo was adopted.

Page | 19

1997 Identified by GoI as one of the Navratna public sector undertakings.

Achieved 100 billion units generation in one year.

2000 Commenced construction of a first hydro-electric project of 800MW capacity in

Himachal Pradesh.

2002 Three wholly owned subsidiaries of NTPC viz. NTPC Electric Supply Company Ltd,

NTPC Hydro Ltd and NTPC Vidyut Vyapar Nigam Ltd Incorporated.

2004

NTPC became a listed company.

NTPC made its debut issue of euro bonds amounting to USD 200 million in the

international market.

2005

NTPC received the International Project Management Award, 2005 for its Simhadri

project.

NTPC was ranked as the Third ‘Great Place to work for in India’ for the second time in

succession by a survey conducted by Grow Talent and Business World 2005.

The companies name changed to NTPC Ltd.

2006

For the fourth consecutive year, NTPC continued to realize 100% of current bills.

Agreement signed with government of Haryana and Delhi for setting up 1500 MW plant

in Jhujjar.

2007

Ministry of coal, GOI granted in-principle approval of a new coal block, namely, Chhati

Baristu South to NTPV, subject to the conditions stipulated in the approval letter. The

share of reserve was indicated as 354 million tones.

Vindhyachal Super Thermal Power Project became the largest power station in the

country with an installed capacity of 3260 MW

2008 NTPC allocation 0.5% of distributable profits annually for its R & D fund for sustainable

energy for development of green & clean technologies.

Strategic foray into manufacturing by forming Joint Venture Companies with BHEL and

Bharat Forge.

Page | 20

Joint Venture Company under the name “National Power Exchange Ltd” was

incorporated on 11th December 2008 with NHPC Ltd. , PFC Ltd. , to operate power

exchange at national level.

NTPC was ranked Number 1 in the ‘Best Work place for Large Organizations’ and

number 8 overall for the year 2008 by Great place to work Institute’s. India chapter in

collaboration with the Economic Times

2009

500 MW Unit VI of Sipat brought under commercial generation.

NTPC Has achieved the highest ever single day generation of 655.22 MUs on 2nd

March, 209 with highest ever single day coal based generation of 579.02 MUs.

2010

Government of India, Deptt. Of Public Enterprises, Ministry of Heavy Industries &

Public Enterprises vides Office Memorandum dated 19th May, 2010 has conveyed grant

of Maharatna status to NTPC apart from three other Central Public Sector Enterprises

(CPSEs). Since, presently NTPC has requisite number of non-official Directors on its

Board, therefore, only NTPC is eligible to exercise delegated Maharatna powers.

NTPC bagged two awards at the Asia Best Employer Brand Ceremony held at Singapore

recently for Best HR Strategy in line with Business and Award for Talent Management.

NTPC Limited has been ranked 7th overall in ‘India’s Best Companies to Work for

2010’, a study by The Great Places to Work Institute India and The Economic Times.

The Company is also ranked 1st among large organizations’ with over 10,000 employees,

1st in the Public Sector Enterprises segment and 1st in the Manufacturing and Production

Industry segment.

RETENTION POLICIES AT NTPC

Career Advancement & Opportunities

Page | 21

We have a well established talent management system in place, to ensure that we deliver on our promise

of meaningful growth and relevant challenges for our employees. Our talent management system

comprises PERFORMANCE MANAGEMENT, CAREER PATHS and LEADERSHIP

DEVELOPMENT.

Sound Communication & Employee participation

SAP ERP implementation titled project ‘Lakshya’, the pilot implementation of the project at

Ramagundam, Faridabad, Koldam, NCR HQ and Corporate were completed in a span of 10 months.

The SAP solution is expected to help NTPC achieve faster exchange of information, improved

productivity and reduction of costs, better data consistency, knowledge sharing and unification of

planning and budgeting process. A management journal called "Horizon" is published quarterly to

enable employees to share their ideas and experiences across the organization.

Rewards & Recognitions

We have, from inception, created a culture of rewards and recognitions through celebration of various

achievements and events and recognizing the contributions behind such success.

Knowledge Management in NTPC

To meet our ultimate objective of becoming a learning organization, an integrated Knowledge

Management System has been developed, which facilitates tacit knowledge in the form of learning and

experiences of employees to be captured and summarized for future reference.

Innovate, Create, Compete

We have introduced numerous initiatives which seek to enhance the creativity, innovation, functional

aptitude and teamwork of our employees. These initiatives include National Open Competition for

Executive Talent (NOCET), Professional Circles, Quality Circles, Business Minds and Medha

Pratiyogita (a quiz for our employees). A management journal called “Horizon” is published quarterly

to enable the employees to share their ideas and experiences across the organization.

Quality of Work-Life

NTPC is proud of its systems for providing a good quality of work-life for its employees. In addition to

providing beautiful and safe work places, NTPC encourages a culture of mutual respect and trust Page | 22

amongst peers, superiors and subordinates. Away from hectic city life, NTPC townships provide an

environment of serenity, natural beauty and close community living. Numerous welfare and recreation

facilities including schools, hospitals and clubs are provided at the townships to enhance quality of life

& the well being of employees and their families. An entire range of benefits, from child care leave to

post retirement medical benefits are extended to employees to meet any exigency that may arise in a

person's life.

Training & Development

NTPC subscribes to the belief that efficiency, effectiveness and success of the organization, depends

largely on the skills, abilities and commitment of the employees who constitute the most important asset

of the organization.

Our Training Policy envisages a minimum of 7 man days of training per employee per year. We have

developed our own comprehensive training infrastructure.

Education Up-gradation Schemes

To meet the academic aspirations of employees and match them with the needs of the organization,

NTPC has tie-ups with institutes of repute like MDI, Gurgaon; IIT Delhi; BITS Pilani, etc. NTPC

sponsors fixed size batches of employees who are inducted into these courses based on their

performance rating in the company and their performance in the entrance exam conducted by the

respective institute. Unlike other study leave and sabbaticals, employees undergoing these courses do

not forego their salary or growth during the duration of the course.

Employee’s Relations

The new recruits are being molded in the culture and environment of the organization with the help of a

systematic and formal ‘Mentoring System’ of the company to integrate them into the culture of the

company.

Page | 23

Seeking Feedback

We actively seek and encourage employee feedback to ensure that our HR interventions and practices

remain relevant and meaningful. We regularly conduct Employee Satisfaction and Organizational

Climate Surveys.

LITERATURE REVIEW

1. Research on “Work life Balance, Employee Engagement, Emotional

Consonance/Dissonance & turnover Intention”

Page | 24

Tara Shankar and Jyotsna Bhatnagar, Management Development Institute, Gurgaon (2010) identifies

that

- Higher Work Life Balance leads to higher Employee Engagement mediated by emotional

consonance

- High WLB will lead to High Employee Engagement, and low intention to quit.

- Higher the emotional consonance, higher is the Work Life Balance mediated by Employee

Engagement.

2. Research on “Employee Engagement: Role of Self-efficacy, Organizational

Support & Supervisor Support”

Surya Prakash Pati and Pankaj Kumar, Indian Institute of Management-Lucknow (2010) identifies that

- An empowered employee can be expected to be engaged.

3. Research on “The impact of the Health Insurance Portability and Accountability

Act on Participant Recruitment and Retention”

Deidre D. Wipke-Tevis and Melissa A. Pickett, University of Missouri-Columbia (2007) identifies that

- Despite of increase in costs due to HIPAA implication the recruitment and retention of

participants improved as the participants were self-motivated due to the benefits.

4. Research on “Effect of Paced and Unpaced Practice on Skill Application and

Retention: How Much Is Enough?”

Provalis Research, University of Montréal (2003) identifies that

Page | 25

- Practicing until mastery improved individual exam scores, group success rates, and long-term

retention.

- Over learning provided additional benefits, especially in long-term retention.

- Fluency-building instructions did not further increase academic achievement or long-term

retention.

- A positive relationship was found between amount of practice and attitudes toward the course,

the subject matter, and practice activities.

5. Research on “Employee Retention-Talent Management”

Mythri Isukapally Jr., Alliance Business Academy (2006) identified that

The foremost step necessary for effective implementation of retention strategies is to understand the

scope of the retention problem that is unique to one's organization.

Working strategies for effective retention are-

- Form Employee retention committee to motivate & inculcate sprit of belongingness.

- Reward the employees who have longevity in your organization.

- Succession planning.

- Make the employees aware of their career tree.

- Celebration of the performance.

- Turning exit interviews to Recruiting interviews.

- Family orientation

Page | 26

CONCEPTUAL FRAMEWORK

RETENTION:

“High performers are like frogs in a wheelbarrow-

They can jump out at any time”

-Mc Kinsey & Company Study.

“Genius begins and labor finishes” is an old saying that would be profoundly significant if interpreted in

the context of corporate and large employers. Concepts, visions and decisions do take shape within the

four walls of corporate boardrooms. However, it is only the employees that implement and give

tangibility to the corporate’s mission. In other words if it is the highest rung in the corporate hierarchy

that has ideas, it is the employees’ rung that has the chisel to bring the vision to life.

In the best of worlds, employees would love their jobs. Like their co-workers, work hard for their

employers; get paid well for their work, ample chances of advancement and flexible schedules so they

could attend to personal or family needs when necessary. And never leave.

But then there’s the real world. And in the real world, employees, do, leave, either because they

want more money, hate the working conditions, hate their co-workers, want a change, or because their

spouse gets a dream job in another state. Unlike inanimate products and systems that subject themselves

to fine tuning without any reaction, employees would not subject themselves to any measure taken

without reaction and analysis. Hence managing human resources, particularly retaining them, is an art

that calls for special skills and strategies.

Page | 27

EMPLOYEE RETENTION

Employee Retention involves taking measures to encourage employees to remain in the organization for

the maximum period of time. Corporate is facing a lot of problems 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 a 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 employees.

The top organizations are on the top because they value their employees and they know how to keep

them glued to the organization. Employees stay and leave organizations for some reasons.

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.

Employee retention is a business management term referring to efforts by employers to retain current

employees in their workforce. The purpose is to avoid employee turnover and associated costs: hiring

and training expenses; productivity loss; lost customers; diminished business; and damaged morale

among remaining members of the workforce. Retention is particularly a problem in high stress

occupations such as teaching, nursing and social care work.

JOB SATISFACTION:

Job satisfaction describes how content an individual is with his or her job. The happier people are within

their job, the more satisfied they are said to be. Job satisfaction is not the same as motivation, although

it is clearly linked. Job design aims to enhance job satisfaction and performance; methods include job

rotation, job enlargement and job enrichment. Other influences on satisfaction include the management

style and culture, employee involvement, empowerment and autonomous work groups. Job satisfaction

is a very important attribute which is frequently measured by organizations. The most common way of

measurement is the use of rating scales where employees report their reactions to their jobs. Questions

relate to rate of pay, work responsibilities, variety of tasks, promotional opportunities the work itself

and co-workers.

Page | 28

RETENTION POLICIES:

RETENTION POLICY OF ANY ORGANISATION is derived from the market conditions in which the

company works. In other words the former is highly very closely related to the latter. However retention

policy by itself should take into consideration the policies of other organizations regarding talent hunt

and retention of talent pool, etc.

Retention policy should commit itself to the organization personnel policy like enriching the

organizations Human resource. The policy must incorporate motivating the potential employee,

improving the employee loyalty to the organization by absorbing the laid-off or casual /temporary

employee or dependent of present or former employee etc. subject to their capabilities.

WHAT MAKES EMPLOYEE LEAVES?

Employees do not leave an organization without any significant reason. There are certain circumstances

that lead to their leaving the organization. The most common reasons can be:

Job is not what the employee expected to be: Sometimes the job responsibilities don’t come out to be

same as expected by the candidates. Unexpected job responsibilities lead to job dissatisfaction.

1. Job and person mismatch: A candidate may be fit to do a certain type of job which matches

his personality. If he is given a job which mismatches his personality, then he won’t be able to

perform it well and will try to find out reasons to leave the job.

2. No growth opportunities: No or less learning and growth opportunities in the current job will

make candidate’s job and career stagnant.

3. Lack of appreciation: If the work is not appreciated by the supervisor, the employee feels de-

motivated and loses interest in job.

4. Lack of trust and support in co-workers, seniors and management: Trust is the most

important factor that is required for an individual to stay in the job. Non-supportive co-workers,

seniors and management can make office environment unfriendly and difficult to work in.

5. Stress from overwork and work life imbalance: Job stress can lead to work life imbalance

which ultimately many times lead to employee leaving the organization.

6. Compensation: Better compensation packages being offered by other companies may attract

employees towards themselves.

7. New job offer: An attractive job offer which an employee thinks is good for him with respect to

job responsibility, compensation, growth and learning etc. can lead an employee to leave the

organization.

Page | 29

RETENTION MYTHS

The process of retention is not as easy as it seems. There are so many tactics and strategies used in

retention of employees by the organizations. The basic purpose of these strategies should be to increase

employee satisfaction, boost employee morale hence achieve retention. But sometimes these strategies

are not used properly or even worse, wrong strategies are used. Because of which these strategies fail to

achieve the desired results. There are many myths related to the employee retention process. These

myths exist because the strategies being used are either wrong or are being used from a long time. These

myths prevent the employer from successfully implementing the retention strategies. Let us have a look

on some of these myths:

1. Employees leave an organization for more pay: Money may be the motivating factor

for some but for many people it is not the most important factor. Money matters more to the

low-income-employees for whom it’s a survival issue. Money can make an employee stay in an

organization but not for long. The factors more important than money are job satisfaction, job

responsibilities, and individual’s skill development. The employers should understand this and

work out some other ways to make employees feel satisfied. When employees leave,

management tries to retain them by offering more money. But instead they should try to figure

out the main reason behind it. Issues that are mainly the cause of dissatisfaction are

organization’s policies and procedures, working conditions, relationship with the supervisor and

salary, etc. For such employees, achievement, growth, respect, recognition, is the main concern.

2. Incentives can increase productivity: Incentives can surely increase productivity but not

for long term. Cash incentives, volume work targets and speed awards are old management

beliefs. They can generate work speedily and in volumes but can’t boost employee commitment.

Rather speed can hamper the quality of work produced. What really glues employees to their

work and organization is quality work, meaningful responsibilities, recognition, respect, growth

opportunities and friendly supervisors.

3. Employees run away from responsibilities: It is a myth that employees run from

responsibilities. In-fact employees feel more responsible if they are given extra responsibilities

apart from their regular job. Employees look for variety, greater control on the processes and

authority to take decisions in their present job. They want opportunities to learn and grow.

Management can assign extra responsibilities to their employees and appreciate them on the

completion of these tasks. This will induce a sense of pride in the employee and will improve

the relationship between the management and the employee.

Page | 30

4. Loyalty is a thing of the past: Employees can be loyal but what they need is an employer

for whom they can be loyal. There is no reason for the employee to hop jobs if he’s satisfied

with the employer.

5. Taking measures to increase employee satisfaction will be expensive for the

organizations: The things actually required improving employee satisfaction like respect,

career growth and development, appreciation, etc. can’t be bought. They are free of cost. An

employer or management that reacts well to the employee’s ideas and suggestions is enough for

the employees to be retained

Page | 31

ANALYSES AND FINDINGS

1. What is the Average Stay per employee in your organization?

17%

33%

50%

Public Sector0-3 Years 3-5 Years 5-8 Years 8-10 years More Than 10 Years

Chart-1

The above graph shows that 50% of the public sector employees have an average stay of more than 10years, 33% of the employees have an average stay of 8-10 years, 17 % have an average stay of 5-8 years and no responses lies in the range of 0-3 years and 3-5 years.

71%

29%

Private Sector0-3 Years 3-5 Years 5-8 Years 8-10 years More Than 10 Years

Chart-2

The above graph shows that 71% of the private sector employees have an average stay of 3-5 years, 29% of the employees have an average stay of 5-8 years and no responses lies in the range of 0-3 years, 8-10 years and more than 10 years.

Page | 32

2. As Per Your Organization How Important Talent Retention is?

Very low extent Low extent Moderate extent High extent Very high extent

1 2 3 4 5

67%

33%

Public SectorVery low extent Low extentModerate extent High extentVery high extent

14%

14%

43%

29%

Private SectorVery low extent Low extentModerate extent High extentVery high extent

Chart-3 Chart-4

The above graphs shows that importance of talent retention is of very high extent in 33 % of the public sector companies in comparison of 29% of the private sector companies, high extent in 67 % of the public sector companies in comparison of 43% of the private sector companies, moderate extent in 14% of the private sector companies where as no response from public sector companies in this range, low extent in 14% of the private sector companies in comparison of no response from public sector

companies and no response by companies from both the sectors in very low extent range.

Page | 33

3. Does the organization have strategies for talent retention?


1 2 3 4 5

17%

50%

33%

Public SectorVery low extent Low extent Moderate extentHigh extent Very high extent

43%

29%

29%

Private SectorVery low extent Low extentModerate extent High extentVery high extent

Chart-5 Chart-6

We can observe that the strategies for talent retention is of high extent in 33 % of the public sector companies in comparison of 29% of the private sector companies, moderate extent in 50 % of the public sector companies in comparison of 28% of the private sector companies, low extent in 17 % of the public sector companies in comparison of 29 % of the private sector companies and no response by companies from both the sectors in Very high extent and very low extent range.

Page | 34

4. Does your organization keeps these strategies up to date?

Yes No

1 2

YES

NO

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

50

50

42.85

57.14

Public Sector Private Sector

Chart-7

The above graphs shows that 50 % of the public sector companies keep the retention strategies up to date in comparison of 42.85 % private sector companies, and 50 % of the public sector companies do not keep the retention strategies up to date in comparison of 57.14 % private sector companies.

Page | 35

6. How effective are the following practices for employee retention rate on five point

rating scale?


1 2 3 4 5

Social Practices

Giving gifts to employee on occasions like, birthdays, an-niversaries, marriage, etc.

Celebrate birthdays, anniversaries, retirement and promotions of employees.

Get-togethers for employees & family members on occasions like Diwali, Holi, New Year, etc.

Arrangements for indoor games at the premises.

Organizing get together for watching football, hockey and cricket matches.

Organizing annual sports meets for employees.

Ice cream Fridays.

Child care and elder care services.

Outing on weekend with the immediate boss once a month.

Personalized well done and thank-you cards from supervisors.

Voicemails or messages from top management.

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

Social Practices

PRIVATE SECTOR PUBLIC SECTOR

MEAN SCORE

PRAC

TICE

S

Chart-8

Page | 36

The graph shows that the highly effective (Mean Score ≥3) practices for talent retention for private sector and public sector are -

Social Practices (Public Sector) Mean Score

Giving gifts to employee on occasions like, birthdays, anniversaries, marriage, etc. 4.17

Celebrate birthdays, anniversaries, retirement and promotions of employees. 4


4

Arrangements for indoor games at the premises. 4.67

Organizing get together for watching football, hockey and cricket matches. 3.17

Organizing annual sports meets for employees. 3.5

Personalized well done and thank-you cards from supervisors. 4.17

Voicemails or messages from top management. 3

Social Practices (Private Sector)

Giving gifts to employee on occasions like, birthdays, anniversaries, marriage, etc. 3.29

Celebrate birthdays, anniversaries, retirement and promotions of employees. 3.29

Arrangements for indoor games at the premises. 3.29

Organizing get together for watching football, hockey and cricket matches. 3.57

Organizing annual sports meets for employees. 3.85

Personalized well done and thank-you cards from supervisors. 3.57

Page | 37

Financial Practices


1 2 3 4 5

Competitive pay packages.

Assistance with tax calculations and submission of forms.

Financial planning assistance.

Providing insurance plans like: - health insurance, travel insurance, etc.

Scholarships for employee’s children.

Loans and Advances for Employees.

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

Financial Practices

PRIVATE SECTOR PUBLIC SECTORMEAN SCORE

PRAC

TICE

S

Chart-9

Here the response shows that the highly effective practices (Mean Score ≥3) related to financial practices for public sector and private sector companies are:-

Financial Practices (Public Sector) Mean Score

Competitive pay packages. 4.33

Assistance with tax calculations and submission of forms. 3.33

Financial planning assistance. 3.5

Providing insurance plans like: - health insurance, travel insurance, etc. 4.17

Scholarships for employee’s children. 3.83

Loans and Advances for Employees. 4.33

Financial Practices (Private Sector) Mean Score

Competitive pay packages. 4.42

Providing insurance plans like: - health insurance, travel insurance, etc. 3.71

Loans and Advances for Employees. 4.71

Page | 38

Non-Monetary Incentive Practices.


1 2 3 4 5

Non-monetary incentives fixed by the management on regular time intervals.

Incentives as per the employees interest or need, like a tour package to an adventure loving guy.

Varying amount of incentive as per the level in organization irrespective of their achievement.

Incentives to all the employees irrespective of any achievement or not.

0 0.5 1 1.5 2 2.5 3 3.5 4

Non-Monetary Insentive Practices


MEAN SCORE

PRAC

TICE

S

Chart-10

We can see here that the highly effective Non-Monetary practices for public sector and private sector companies are as follows-

Non Monetary Incentive Practices (Public Sector) Mean Score

Non-monetary incentives fixed by the management on regular time intervals. 3.67


3.33

Non Monetary Incentive Practices (Private Sector) Mean Score

Non-monetary incentives fixed by the management on regular time intervals. 3.86

Page | 39

Transparent Work Culture and Communication Practices.


1 2 3 4 5

Unbiased policies for awards, rewards, promotions & appraisals.

Sharing the policies, future plans, upcoming projects & achievements with the employees.

Continuous encouragement for coming up with new ideas by immediate boss.

An open door culture to encourage sharing of thoughts, ideas, grievances, etc.

Encourage frequent formal and informal discussions among the teams.

Frequent meetings and Social gatherings.

Use of Emails, Newsletters, Intranet to boost the effective communication among the employees.

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Transparent Work Culture & Communication Practices


MEAN SCORE

PRAC

TICES

Chart-11

Page | 40

From the responses we can see the highly effective Transparent Work Culture and Communication Practices as per public sector and private sector companies are as follows:-

Transparent Work Culture and Communication Practices (Public Sector)Mean Score

Unbiased policies for awards, rewards, promotions & appraisals. 4.83

Sharing the policies, future plans, upcoming projects & achievements with the employees. 3.5

Continuous encouragement for coming up with new ideas by immediate boss. 3.83

An open door culture to encourage sharing of thoughts, ideas, grievances, etc. 3.5

Encourage frequent formal and informal discussions among the teams. 3.67


3.5

Transparent Work Culture and Communication Practices (Private Sector)Mean Score

Unbiased policies for awards, rewards, promotions & appraisals. 4.00

Sharing the policies, future plans, upcoming projects & achievements with the employees. 3.71

Continuous encouragement for coming up with new ideas by immediate boss. 3.57

An open door culture to encourage sharing of thoughts, ideas, grievances, etc. 3.43

Encourage frequent formal and informal discussions among the teams. 3.57

Frequent meetings and Social gatherings. 3.14


3.43

Page | 41

Quality Work Environment and Work Life Balance Practices.


1 2 3 4 5

Addressing their work life issues i.e. the physical work environment, social environment.

Suitable and flexible working hours.

Self planning of leaves in the calendar by employees.

Medical benefits, and other benefits like pick & drop cab, work place cafeteria, etc.

Autonomous work groups

Job enrichment and clear information about jobs need to be performed.

Continuous career oriented training for personal/professional development.

Only job oriented training to make employees most suitable for the particular job.

Extended paternal/maternal leave in case of single father/mother.

Day care facility for the employee’s kids at the work place.

Provision for female employees to bring their baby of less than 1 yr along at the work place.

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Quality Work Environment And Work Life Balance Practices.


Chart-12

Page | 42

It can be observed from the graph that the Quality Work Environment and Work Life Balance Practices rated highly effective by the public sector and private sector companies are as follows -

Quality Work Environment and Work Life Balance Practices (Public Sector) Mean Score

Addressing their work life issues i.e. the physical work environment, social environment. 3.33

Suitable and flexible working hours. 3.17

Medical benefits, and other benefits like pick & drop cab, work place cafeteria, etc. 4.33

Job enrichment and clear information about jobs need to be performed. 3.83

Continuous career oriented training for personal/professional development. 3.83

Extended paternal/maternal leave in case of single father/mother. 4.00

Quality Work Environment and Work Life Balance Practices (Private Sector) Mean Score

Addressing their work life issues i.e. the physical work environment, social environment. 3.43

Suitable and flexible working hours. 3.14

Medical benefits, and other benefits like pick & drop cab, work place cafeteria, etc. 3.86

Job enrichment and clear information about jobs need to be performed. 4

Continuous career oriented training for personal/professional development. 3.43

Page | 43

Empowerment Practices.


1 2 3 4 5

Encouraging The Managers to share the authority and accountability with the junior employees.

Promoting a Suggestion system among the employees and evaluating & implementing the suggestions.

Encourage employees to feel free to provide feedbacks and share their views.

Providing mentors to the new employees to make them understand the organizations culture in a better way.

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

Empowerment Practices


MEAN SCORE

PARC

TICES

Chart-13

Page | 44

The highly effective Empowerment Practices rated by public sector and private sector companies are -

Empowerment Practices (Public Sector) Mean Score


3.5


3.33

Encourage employees to feel free to provide feedbacks and share their views. 4


4.33

Empowerment Practices (Private Sector) Mean Score


3.57


3.71

Encourage employees to feel free to provide feedbacks and share their views. 4


3

Page | 45

KEY FINDINGS

THE SUCCESSFUL COMPLETION OF THE STUDY PROJECTS FOLLOWING FINDINGS:-

1. At NTPC the HR department practices following policies for retention management : -a. Career Advancement & Opportunitiesb. Sound Communication & Employee participationc. Rewards & Recognitionsd. Knowledge Management in NTPCe. Innovate, Create, Competef. Quality of Work-Lifeg. Training & Developmenth. Education Up-gradation Schemesi. Employee’s Relationsj. Seeking Feedback

2. The average stay of majority of employees in a single company comes out to be –

Sectors Years Percentage of EmployeesPublic Sector Companies More than 10 years 50%Private Sector Companies 3-5 years 71%

It is up to 24 years in case of NTPC. This explains the ultra-low 0.9% attrition and the highly efficient 0.82 man-to-megawatt ratio.

3. In comparison of 67 % of public sector companies only 43 % of private sector companies stated Talent Retention to be of higher importance for their organization.

4. 50 % public sector companies keep their retention policies changing as per the need where as only 42.85 % private sector companies bring changes in their policies.

Page | 46

5. Social Practices rated highly effective for talent retention by both the public sector as well as private sector companies are –

Practices Mean Score Public Sector companies

Mean Score Private Sector companies

Giving gifts to employee on occasions like, birthdays, anniversaries, marriage, etc.

4.17 3.29


4 3.29

Arrangements for indoor games at the premises. 4 3.29


4.67 3.57

Organizing annual sports meets for employees. 3.17 3.85

Personalized well done and thank-you cards from supervisors. 3.5 3.57

6. Financial Practices rated highly effective for talent retention by both the public sector as well as private sector companies are –



Competitive pay packages. 4.33 4.42

Providing insurance plans like: - health insurance, travel insurance, etc. 4.17 3.71

Loans and Advances for Employees. 4.33 4.71

Page | 47

7. Non-Monetary Incentive Practices rated highly effective for talent retention by both the public sector as well as private sector companies are –



Non-monetary incentives fixed by the management on regular time intervals.

3.67 3.86

8. Transparent Work Culture and Communication Practices rated highly effective for talent retention by both the public sector as well as private sector companies are –



Unbiased policies for awards, rewards, promotions & appraisals. 4.83 4.00


3.5 3.71


3.83 3.57


3.5 3.43

Encourage frequent formal and informal discussions among the teams. 3.67 3.57


3.5 3.43

Page | 48

9. Quality Work Environment and Work Life Balance Practices rated highly effective for talent retention by both the public sector as well as private sector companies are –




3.33 3.43

Suitable and flexible working hours. 3.17 3.14


4.33 3.86

Job enrichment and clear information about jobs need to be performed. 3.83 4


3.83 3.43

10. Empowerment Practices rated highly effective for talent retention by both the public sector as well as private sector companies are –




3.5 3.57


3.33 3.71


4 4

Page | 49


4.33 3

11. By the responses of public sector and private sector companies stated above we observe that many practices are equally effective for talent retention companies of both the sectors.

6.1 CONCLUSION

In the dynamic business world, competition is inevitable. Climbing to the top is relatively easy than staying at top. Many organizations have grown at a very fast speed but simultaneously they have failed to sustain their growth. Sustenance of growth requires proportionate development. Such world-class organizations are those who remain ahead of competitors and have managed to maintain sustainable competitive growth.

NTPC Ltd is one of those world-class organizations, which have maintained its excellence over the years by continuously working towards growth and development. Such an ambitious goal requires an excellent planning and perfect implementation of the strategies. For this it becomes extremely necessary to retain the Talent by engaging the employees with the organization so that the organization can fulfill its goal of sustenance of growth.

The organization has been recruiting hundreds of graduates and post graduates every year who are providing there worth in the company. But what happens after the recruitment process? The organization spend its resources to train the recruits and to make them best fit for what job they are performing or going to perform, but eventually due to lack of encouragement for engagement with the organization the company losses its valuable assets the employees. There is a need of policies to retain those hired and trained people. The credibility of the process can be estimated form this that NTPC not only recruit and train executives to fulfill the requirements of its plants/ stations but it also practice such policies which makes a strong bond between the employee and the employer. Such policies are termed as retention policies which encourage employee engagement and helps in fulfillment of ultimate goal of sustainable competitive growth.

After being in business for such a long time, it has gained expertise in both recruiting and retaining its technical and non-technical employees of the organization.

After a thorough study of ‘benchmarking best practices of retention and engagement’, I learned that the role of recruitment and retention of employees are of equal importance as they are an asset to the company. NTPC, as a constantly learning organization, has realized the need to streamline its retention policies with the social, psychological and economical factors in order to achieve its goals.

Page | 50

The Recruitment and Retention policies in NTPC ltd. are one of the major tasks of the Corporate HRD. While undertaking this project and working upon the recruitment process with the ET Recruitment Cell of HRD, I made some interesting observations. The following observations establish the recruitment and retention policies at NTPC ltd. as one the best practices in the corporate world:

The processes and policies practiced at NTPC ltd. are very much based on idealistic process for

recruitment and retention.

There are well defined requirements and expectations from the candidates and employees. The

policies and policies are also well defined. The whole process is much more transparent and fair as

it clearly states the company’s people oriented approach.

Selection process for candidates is given due importance so as to screen the quality candidates

keeping in mind the company’s corporate objectives, goals, vision, mission, and values. The quality

candidates make the retention practices more important.

The whole process of recruitment is so designed to check the candidates of his/her technical

knowledge, the general aptitude, the attitude and the physical well being. Thus only best suited

candidates get selected.

Page | 51

SUGGESTIONS

It would be a great job for the HR department if they regularly take feedback of its employees on the retention policies to keep the policies updated as the change is inevitable and the needs of employees changes with time, so a timely up gradation of policies keep the organization ahead of all.

NTPC should showcase the recruitment department at community outreach fairs and special events.

To make the department more visible both inside and outside the organization they should go for go speaking at conferences/seminars and universities.

“The Right Employee at the Right Place at the Right Time” is the key mantra for the success of the goals of the organization. So efficient recruitment is very important.

Quantify the organization’s promotion rates, publicly thanking those who have excelled and been promoted via publicizing in local news papers and publicizing internal contests and competitions.

It would be very beneficial for the organization to make the prospective future employees aware of its people oriented policies at the time of advertising for recruitments as it will develop a brand image of the organization and will attract the best candidates for the vacancies.

The employees should be encouraged to tell their own stories about how NTPC’s people oriented policies have affected their lives.

There should be “Exit Interviews” to keep a check on where did the company lacked in its retention policies and required steps should be taken.

Page | 52

6.4 LIMITATIONS

In every research there are certain limitations, and this research is not an exception, so in whole process of research the situation in which the research conducted can affect the research to a small extent. The research conducted come across certain restrictions and limitations, so some of these limitations can be overlooked for the successful conduction of research. Some of the limitations that can be over looked are:-

A. The findings of the study are subjected to bias and prejudice of the respondents.

B. Area of the study is confined to the employees in Delhi NCR only.

C. Due to time constraint the questionnaire could not be administered to most of the competent

companies and so the representative sample was only 5%.

D. The findings of the study are solely based on the information provided by the respondents.

E. Many of the respondents did not wish to respond to a few questions and because of that total

score went down and could not get an accurate analysis.

F. For benchmarking, it was really difficult to get information from different companies people

were not ready to shell out information about their companies

G. Since the retention factor varies from industry to industry and company to company the

outcomes were really not in any one direction.

H. Findings of the research may change due to area, demography, age condition of economy etc.

Page | 53

Page | 54

Questionnaire

Name : ______________________________

Designation : ______________________________

Organization : ______________________________

Page | 55

Q1. Rank the following statements from 1 to 9 in order of your preference for talent retention.

1. Hire the right people in the first place.

2. Empower the employees: Give the employees the authority to get things done.

3. Make employees realize that they are the most valuable asset of the organization.

4. Have faith in them, trust and respect them.

5. Provide them information and knowledge.

6. Keep providing them feedback on their performance.

7. Recognize and appreciate their achievements.

8. Keep their morale high.

9. Create an environment where the employees want to work and have fun.

Q2. What is the average stay per employee in your organization?

0-3 years 3-5 years 5-8 years 8-10 years more than 10 years.

Q3. As per your organization how important the Talent Retention is?

Very Important Important Least Important Not Important

Q4. Does your organization have strategies for talent retention?

Very low extent Low extent Moderate High extent Very high extent

Q5. Does the organization keep these strategies up to date?

Yes No

Q6. How effective are the following measures for employee retention, rate them on the scale of 1 to 5, (5 for most effective & 1 for least effective) as per your organization.

Page | 56

A. SOCIAL

a. Giving gifts to employee on occasions like, birthdays, anniversaries, marriage, etc.

b. Celebrate birthdays, anniversaries, retirement and promotions of employees.

c. Get-togethers for employees & family members on occasions like Diwali, Holi, New Year, etc.

d. Arrangements for indoor games at the premises.

e. Organizing get together for watching football, hockey and cricket matches.

f. Organizing annual sports meets for employees.

g. Ice cream Fridays.

h. Child care and elder care services.

i. Outing on weekend with the immediate boss once a month.

j. Personalized well done and thank-you cards from supervisors.

k. Voicemails or messages from top management.

B. FINANCIAL

a. Competitive pay packages.

b. Assistance with tax calculations and submission of forms.

c. Financial planning assistance.

d. Providing insurance plans like: - health insurance, travel insurance, etc.

e. Scholarships for employee’s children.

f. Loans and Advances for Employees.

C. NON-MONETARY INCENTIVE.

a. Non-Monetary incentives fixed by the management on regular time intervals.

b. Incentives as per the employees interest or need, like a tour package to anadventure loving guy.

c. Varying amount of incentive as per the level in organization irrespective of their achievement.

Page | 57

d. Incentives to all the employees irrespective of any achievement or not.

D. TRANSPARENT WORK CULTURE AND COMMUNICATION.

a. Unbiased policies for awards, rewards, promotions & appraisals.

b. Sharing the policies, future plans, upcoming projects & achievements with the employees.

c. Continuous encouragement for coming up with new ideas by immediate boss.

d. An open door culture to encourage sharing of thoughts, ideas, grievances, etc.

e. Encourage frequent formal and informal discussions among the teams.

f. Frequent meetings and Social gatherings.

g. Use of Emails, Newsletters, Intranet to boost the effective communication among the employees.

E. QUALITY WORK ENVIRONMENT AND WORK LIFE BALANCE.

a. Addressing their work life issues i.e. the physical work environment,social environment.

b. Suitable and flexible working hours.

c. Self planning of leaves in the calendar by employees.

Page | 58

d. Medical benefits, and other benefits like pick & drop cab, work place cafeteria, etc.

e. Autonomous work groups.

f. Job enrichment and clear information about jobs need to be performed.

g. Continuous career oriented training for personal/professional development.

h. Only job oriented training to make employees most suitable for the particular job.

i. Extended paternal/maternal leave in case of single father/mother.

j. Day care facility for the employee’s kids at the work place.

k. Provision for female employees to bring their baby of less than 1 yr along at the work place.

F. EMPOWERMENT

a. Encouraging The Managers to share the authority and accountability with the junior employees

b. Promoting a Suggestion system among the employees and evaluating & implementing the suggestions.

c. Encourage employees to feel free to provide feedbacks and share their views.

d. Providing mentors to the new employees to make them understand the organizations culture in a better way.

Q7. Being an employee what would you suggest as the mantra for employee engagement other then what has already been mentioned?

a.________________________________

b.________________________________

c.________________________________

Page | 59

BIBLIOGRAPHY

Page | 60

Books

Venkata Ratnam, C.S. and Srivastava, B.K. Personnel Management & Human Resource. Tata Mcgraw-Hill publishing company Ltd, 2005.

Burack, Elmer H and Smith, Robert D. Personnel Management: a Human Resource system Approach. John Wiley & Sons Inc

Pattanayak, Bniswajeet. Human Resource Management. Prentice-Hall of India Pvt. Ltd, 2005.

Rao, V.S.P. Human Resource Management.

WEBLINKS

http://www.publishingindia.com/Research/Article-Listing.aspx?IssueID=88&IssueYear=2010&IssueName=Issue%201&ProductName=Indian%20Journal%20of%20Industrial%20Relations&VolumeName=Volume%2046&ProductID=22

“Paper on Work Life Balance, Employee Engagement, Emotional Consonance/Dissonance & Turnover Intention by Tara Shankar & Jyotsna Bhatnagar”

&

“Paper on Employee Engagement: Role of Self-efficacy, Organizational Support & Supervisor Support by Surya Prakash Pati & Pankaj Kumar”

http://wjn.sagepub.com/content/30/1/39.abstract

“Paper on Impact of the Health Insurance Portability and Accountability Act on Participant Recruitment and Retention”

http://aer.sagepub.com/content/40/3/769.abstract

“Paper on Effect of Paced and Unpaced Practice on Skill Application and Retention: How Much Is Enough?”

http://www.citehr.com/32436-article-retention.html#axzz16LSAmarZ, Oct 12, 2010.

http://www.citehr.com/62371-retention-strategies.html#axzz16LSYS038, Oct 15, 2010

www.ntpc.co.in

Page | 61

http://www.ntpc.co.in/

http://www.citehr.com/62371-retention-strategies.html#axzz16LSYS038

http://www.citehr.com/32436-article-retention.html#axzz16LSAmarZ,%20Oct

http://wjn.sagepub.com/content/30/1/39.abstract




1. Ranking of Practices for the purpose of Talent Retention form 1 to 9.

Page | 62

Practices

NT

PC

NH

PC

FC

I

IDB

IB

ank

SB

BJ

DM

RC

Hire the right people in the first place. 1 1 2 1 1 3

Empower the employees 6 9 9 9 9 2

Employees the most valuable asset of the organization 5 4 3 8 5 7

Have faith in them, trust and respect them. 9 7 5 7 7 6

Provide them information and knowledge. 3 3 4 5 3 8

Keep providing them feedback on their performance. 8 8 7 4 7 9

Recognize and appreciate their achievements. 2 2 1 3 2 5

Keep their morale high. 7 5 8 6 8 4

Create an environment where the employees want to work and have fun.

4 6 6 2 4 1

Practices

Indi

a B

ulls

HC

L

Fri

gori

fico

All

ana

Ltd

Den

ave

Ltd

.

RS

A

Taj

Gro

up o

f H

otel

s

NII

T

Hire the right people in the first place. 2 1 1 2 1 1 1

Empower the employees 3 6 9 7 6 8 9

Employees the most valuable asset of the organization.

8 5 2 6 7 2 5

Have faith in them, trust and respect them. 6 8 7 4 4 6 3

Provide them information and knowledge. 7 4 3 3 2 4 8

Keep providing them feedback on their performance.

5 9 5 5 9 9 4

Recognize and appreciate their achievements. 4 2 6 1 5 5 6

Keep their morale high. 9 7 8 9 8 7 7

Create an environment where the employees want to work and have fun.

1 3 4 8 3 3 2

2. What is the Average Stay per employee in your organization?

Page | 63

Average Stay

NT

PC

NH

PC

FC

I

IDB

I B

ank

SB

BJ

DM

RC

0-3 Years

3-5 Years

5-8 Years √8-10 years √ √More Than 10 Years √ √ √

Average StayIn

dia

Bu

lls

HC

L

Fri

gori

fico

All

ana

Den

ave

Ltd

.

RS

A

Taj

Gro

up

of

Hot

els

NII

T

0-3 Years

3-5 Years √ √ √ √ √5-8 Years √ √8-10 years

More Than 10 Years

3. As Per Your Organization How Important Talent Retention is?

Page | 64

Very low extent Low extent Moderate extent High extent Very high extent1 2 3 4 5

Sl. No. Name of the company Five Point Ratings1 NTPC 42 NHPC 53 FCI 44 IDBI BANK 55 SBBJ 46 DMRC 4

1 India Bulls 22 HCL 33 Frigorifico Allana 44 Denave Ind Ltd. 45 RSA 56 Taj Group of Hotels 47 NIIT 5

4. Does your organization have strategies for talent retention?

Very low extent Low extent Moderate extent High extent Very high extent1 2 3 4 5



5. Does your organization keeps these strategies up to date?

Page | 65

Yes No1 2



6. How effective are the following practices for employee retention rate on five point

rating scale?

Page | 66


1 2 3 4 5In Case of Social Practices

Social Practices

NT

PC

NH

PC

FC

I

IDB

I B

ank

SB

BJ

DM

RC


5 3 2 5 5 5


4 3 3 3 3 4


5 5 2 3 5 4

Arrangements for indoor games at the premises. 5 5 4 5 5 4


4 2 3 4 3 3

Organizing annual sports meets for employees. 4 5 3 3 3 3

Ice cream Fridays. 3 1 1 3 1 3

Child care and elder care services. 4 2 1 2 2 1

Outing on weekend with the immediate boss once a month. 3 1 1 4 4 4

Personalized well done and thank-you cards from supervisors. 5 4 3 5 5 3

Voicemails or messages from top management. 4 3 3 3 3 2

Page | 67

Social Practices

Ind

iaB

ull

s

HC

L

Fri

gori

fico

All

ana

Den

ave

Ltd

.

RS

A

Taj

Gro

up

of

Hot

els

NII

T


2 3 4 4 4 3 3


3 4 3 3 4 4 2


2 2 4 2 4 2 4

Arrangements for indoor games at the premises. 3 3 3 4 3 3 4


5 3 3 4 3 4 3

Organizing annual sports meets for employees. 4 4 3 4 3 5 4

Ice cream Fridays. 1 3 1 1 3 4 2

Child care and elder care services. 2 1 2 1 3 2 3

Outing on weekend with the immediate boss once a month.

2 2 2 1 2 2 4

Personalized well done and thank-you cards from supervisors.

4 5 3 4 4 3 2

Voicemails or messages from top management.3 4 2 3 2 2 4

Page | 68

In Case of Financial Practices.


1 2 3 4 5

Financial Practices

NT

PC

NH

PC

FC

I

IDB

I B

ank

SB

BJ

DM

RC

Competitive pay packages. 4 3 4 5 5 5

Assistance with tax calculations and submission of forms. 4 2 3 4 4 3

Financial planning assistance. 4 2 2 5 5 3


3 4 4 5 5 4

Scholarships for employee’s children. 4 4 2 5 4 4

Loans and Advances for Employees. 4 5 3 5 5 4

Financial Practices

Ind

ia B

ull

s

HC

L

Fri

gori

fico

A

llan

aD

enav

e L

td.

RS

A

Taj

Gro

up

of

Hot

els

NII

T

Competitive pay packages. 4 4 4 5 4 5 5

Assistance with tax calculations and submission of forms. 2 3 5 2 2 2 4

Financial planning assistance. 1 2 3 2 4 3 3


3 3 5 3 4 4 4

Scholarships for employee’s children. 2 1 1 1 1 2 1

Loans and Advances for Employees. 5 4 5 5 4 5 5

Page | 69

In Case of Non-Monetary Incentive Practices.


1 2 3 4 5

Non-Monetary Incentive Practices

NT

PC

NH

PC

FC

I

IDB

I B

ank

SB

BJ

DM

RC

Non-Monetary incentives fixed by the management on regular time intervals.

4 3 3 4 4 4


4 2 1 4 4 5


4 3 3 2 3 3


2 3 3 1 3 3

Non-Monetary Incentive Practices

Ind

ia B

ull

s

HC

L

Fri

gori

fico

A

llan

aD

enav

e L

td.

RS

A

Taj

Gro

up

of

Hot

els

NII

T

Non-Monetary incentives fixed by the management on regular time intervals.

4 3 5 4 4 4 3


3 2 4 2 3 2 3


2 4 3 2 2 4 3


1 2 1 1 2 1 1

In Case of Transparent Work Culture and Communication Practices.Page | 70


1 2 3 4 5

Transparent Work Culture and Communication Practices N

TP

C

NH

PC

FC

I

IDB

I B

ank

SB

BJ

DM

RC


5 3 3 5 5 5


4 3 4 3 3 4


5 3 3 5 3 4


5 2 3 5 3 3


4 3 4 4 4 3

Frequent meetings and Social gatherings. 3 3 2 2 2 2


4 3 2 4 4 4

Transparent Work Culture and Communication Practices

Ind

ia B

ull

s

HC

L

Fri

gori

fico

A

llan

a

Den

ave

Ltd

.

RS

A

Taj

Gro

up

of

Hot

els

NII

T


4 5 3 5 5 4 2


4 3 4 5 4 3 3


3 4 3 5 4 3 3


3 4 3 4 4 2 4


4 4 3 3 4 4 3

Frequent meetings and Social gatherings. 5 3 2 2 4 4 2


4 5 2 2 4 2 5

In Case of Quality Work Environment and Work Life Balance Practices.

Page | 71


1 2 3 4 5

Quality Work Environment and Work Life Balance Practices N

TP

C

NH

PC

FC

I

IDB

I B

ank

SB

BJ

DM

RC


4 2 2 4 4 4

Suitable and flexible working hours. 3 1 3 4 3 5


3 1 2 4 3 4


5 4 2 5 5 5

Autonomous work groups 4 2 2 2 2 3


4 3 3 5 4 4


4 4 2 5 4 4


3 5 2 3 2 2


4 5 3 4 4 4


2 1 1 5 1 2


2 1 1 1 1 2

Page | 72

Quality Work Environment and Work Life Balance Practices

Ind

iaB

ull

s

HC

L

Fri

gori

fico

All

ana

Den

ave

Ltd

.

RS

A

Taj

Gro

up

of

Hot

els

NII

T


4 3 3 5 3 3 3

Suitable and flexible working hours. 4 4 3 2 2 3 4


3 5 1 2 3 3 3


5 4 1 4 4 4 5

Autonomous work groups 2 4 1 1 4 3 2


4 4 3 5 4 5 3


5 4 2 4 3 4 2


2 3 3 2 3 3 4


1 2 2 2 3 2 4


1 1 1 1 1 2 2


2 1 1 1 1 1 1

Page | 73

In Case of Empowerment Practices.


1 2 3 4 5


NT

PC

NH

PC

FC

I

IDB

I B

ank

SB

BJ

DM

RC


4 2 3 4 4 4


4 2 2 4 4 4


4 3 4 5 4 4


5 4 3 4 5 5


Ind

iaB

ull

s

HC

L

Fri

gori

fico

A

llan

aD

enav

e L

td.

RS

A

Taj

Gro

up

of

Hot

els

NII

T


2 3 4 5 3 4 4


3 3 3 5 3 5 4


4 4 3 5 4 5 3


2 5 2 1 4 2 5

Page | 74

Project Final

Documents

Transcript of Project Final