Report 4th Sem1

8/4/2019 Report 4th Sem1

http://slidepdf.com/reader/full/report-4th-sem1 1/79

RESERCH REPORT

ON

RETENTION STRATEGIES

IN

WIPRO

Submitted in partial fulfillment of

MASTERS OF BUSINESS ADMINISTRATION

PROGRAME

Conducted by

G B TECHNICAL UNIVERSITY, LUCKNOW

Under the guidance of : Submitted by:

Ms. RINKI VERMA RICHA RUPALI

(Asstt. Professor) MBA IV SEMESTER

LBSIMDS

(Lucknow)



LAL BAHADUR SHASTRI INSTITUTE OF

MANAGEMENT & DEVELOPMENTSTUDIES, LUCKNOW

PREFACE

Research report is an internal part of MBA program. It helps the students to

understand the practical aspects of Marketing and Human Resource (HR). As a part of my MBA program at “Lal Bahadur Shashtri Institute of Management and

Development Studies Lucknow. I was supposed to make the report. I have made

report on the topic “RETENTION STATEGIES”.

In this report I have studied various strategies which the company should use in

order to increase retention of employees.

Retention of Key employees is critical to the long term health and success of any

organization. It is a known fact that retaining your best employees ensures

customer satisfaction increased product sales, satisfied colleagues and reporting

staff, effective succession planning and deeply imbedded organizational

knowledge and learning.

2



ACKNOWLEDGEMENT

Every work needs to be followed by a deep sense of gratitude to those who

made is through success. It takes the opportunity to thanks all those people who

render their immense help and guidance for completion of this report. Indeed

this page of acknowledgement shall never be able to touch the generosity of

those who rendered their cooperation.

I also want to thanks head of department of LBSIMDS, Prof. TRIPTI

BARTHWAL, my faculty guide Ms. RINKI VERMA for enlightening my ways

for the completion of this report. Without her able guidance I would not have

been able to complete this report.

One of the biggest challenges companies are facing the attraction and retention of

the good employees and top performers. The purpose of this project study was

also to prove how employees’ retention is essential in this day and age, and if the

organization are not awake to the situation and immediate action are not taken to

that effect, what repercussions lay ahead and how they would affect the

organization and the industry.

3



INDEX

TABLE OF CONTENTS

S.No Page No.

1 INTRODUCTION TO REPORT1(i) Executive summary

1(ii) Introduction

2 LITRETURE REVIEW

2(i) Benefits of retention

2(ii) Importance of employee retention

2(iii) Factors affecting employee retention

2(iv) Retention strategy process map

2(v) Retention strategies

2(vi) Unique organizational structure

2(vii) Variable benefit strategy

2(viii) Internal advertisement strategy

2(ix) Retention tool

4



3. ABOUT WIPRO

3(i) Overview

3(ii) Human Resource Planning

INDEX

TABLE OF CONTENT

S.NO PAGE NO.

4. HUMAN RESOURCE POLICIES

5. RETENTION STARTEGIES

5(i) Pay and Benefit5(ii) Career Growth

5(iii) Work Environment

5(iv) Training

5(v) Job Satisfaction

6. RESEARCH METHODOLOGY

Objective

Sample Design

7. ANALYSIS AND

INTERPRETATION

8. CONCLUSION AND

SUGGESTION

5



9. COMPARIOSION

Comparison between strategies

10. BIBLIOGRAPHY

INTRODUCTION TO THE

REPORT

6



Executive Summary

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. Most employees feel that they are worth more than they are actually

paid. There is a natural disparity between what people think they should be paid

and what organizations spend in compensation. When the difference becomes too

great and another opportunity occurs, turnover can result. Pay is defined as the

wages, salary, or compensation given to an employee in exchange for services the

employee performs for the organization. Pay is more than "dollars and cents;" it

also acknowledges the worth and value of the human contribution. What people

are paid has been shown to have a clear, reliable impact on turnover in numerous

studies. Employees comprise the most vital assets of the company. In a work place where employees are not able to use their full potential and not heard and

valued, they are likely to leave because of stress and frustration. In a transparent

environment while employees get a sense of achievement and belongingness from

7



a healthy work environment, the company is benefited with a stronger, reliable

workforce harboring bright new ideas for its growth

INTRODUCTION

Effective employee retention is a systematic effort by employers to create and

foster an environment that encourages current employees to remain employed by

having policies and practices in place that address their diverse needs. Also of

concern are the costs of employee turnover (including hiring costs, training costs,

productivity loss). Replacement costs usually are 2.5 times the salary of the

individual. The costs associated with turnover may include lost customers,

business and damaged morale. In addition there are the hard costs of time spent in

screening, verifying credentials, references, interviewing, hiring, and training the

new employee just to get back to where you started.”

Employee retention matters as organizational issues such as training time andinvestment; lost knowledge; insecure employees and a costly candidate search are

involved. Hence failing to retain a key employee is a costly proposition for an

organization.

Employee retention refers to policies and practices companies use to prevent

valuable employees from leaving their jobs. How to retain valuable employees is

one of the biggest problem that plague companies in the competitive marketplace.

Not too long ago, companies accepted the “revolving door policy” as part of

doing business and were quick to fill a vacant job with another eager candidate.

Nowadays, businesses often find that they spend considerable time, effort, and

money to train an employee only to have them develop into a valuable commodity

8



and leave the company for greener pastures. In order to create a successful

company, employers should consider as many options as possible when it comes

to retaining employees, while at the same time securing their trust and loyalty so

they have less of a desire to leave in the future.

THEORITICAL VIEW ABOUT

RETENTION STRATEGIES

9



RETENTION STRATEGY

DEFINITION:-

According to Get Les Mckeown’s employee retention is define as “ effective

employee retention is a systematic effort by employers to create and foster an

environment that encourages current employees to remain employed by having

policies and practices in place that address their divers needs. Also of concern are

the costs of employee turnover (including hiring costs. productivity loss).

Replacement costs usually are 2.5 times the salary of the individual. The costs

associated with turnover may include lost customers, business and damaged

morale. In addition there are the hard costs of time spent in screening, verifying

credentials, references, interviewing, hiring, and training the new employee just to

get back to where you started.”

Typically, high attrition also leads to a chronic or systemic cycle—attrition

brings decreased productivity, people leave causing others to work harder and this

contributes to more attrition. All this has a significant impact on the company’s

strength in managing their business in a competitive environment.

Productivity and profitability are both impacted, either negatively and positively,

according to the type of attrition. The cost of hiring is sometimes not less than two

to three times the salary of the employee.

10



BENEFITS OF EMPLOYEE RETENTION.

Every company should understand that people are their best commodity. Without

qualified people who are good at what they do, any company would be in serious

trouble. In the long un, the retention of existing employees saves companies

money. As Beverly Kaye and Sharon Jordan- Evan stated in Training and

Development:

“Studies have found that the cost of replacing lost talent is 70 o 200 percent of

that employee’s annual salary. There are advertising and recruiting expenses,

orientation and training of the new employee, decreased productivity until the

new employee is up to speed, and loss of customers who were loyal to the

departing employee. Finding, recruiting, and training the best employees

represents a major investment. Once a company has captured talented people, the

return-on-investment requires closing the back door to prevent them from walking

out.”

When an employee leaves a company for a direct competitor, there is

always a chance that they will take important business strategies and secrets with

them to be explained by the competition. This is yet another reason why the

retention of employees is so crucial to some businesses. While this practice seems

a bit unscrupulous, it skills happens quite frequently. As Bill Leonard stated in

11



HR Magazine: “ Because employers know that the best-qualified applicants will

come directly from competitors, recruiting and hiring employees away from

mother of inventive and sometimes controversial business practices. Recruiting

and hiring from your competitors is probably as old as business itself. But what is

new—and a hot topic among employers – is how to attract and retain qualified

candidates in a highly competitive labor market while also preventing their own

intellectual capital from winding up in the hands of competitors.

One way for a company to prevent employees from giving valuable information

to competitors is to make it a policy to enforce strict non compete andconfidentiality agreements amongst its employees. The existence of such

agreements could in fact deter a competitor from hiring a valuable employ

because they might not want to risk possible legal entanglements with the other

company.

Of course, all this could possibly lead to animosity with the employee who could

feel that his or her options are being limited. Many employees don’t always

remember signing such a document, so a copy of it should always be kept on file

for the employee to refer to. This area could prove to be a highly sensitive one

between employer and employee, so extreme caution is suggested in all instances.

12



IMPORTANCE OF EMPLOYEE RETENTION

Why is retention so important? Is it just to reduce the turnover costs? 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.

The process of employee retention will benefit an organization in the following

ways:

1. The Cost of Turnover: The cost of employee turnover adds hundreds of

thousands of money to a company's expenses. While it is difficult to fully

calculate the cost of turnover (including hiring costs, training costs and

productivity loss), industry experts often quote 25% of the average employee

salary as a conservative estimate.

2. Loss of Company Knowledge: When an employee leaves, he takes with him

valuable knowledge about the company, customers, current projects and past

history (sometimes to competitors). Often much time and money has been

spent on the employee in expectation of a future return. When the employee

leaves, the investment is not realized.

3. Interruption of Customer Service: Customers and clients do business with a

company in part because of the people. Relationships are developed that

encourage continued sponsorship of the business. When an employee leaves,

13



the relationships that employee built for the company are severed, which

could lead to potential customer loss.

4. Turnover leads to more turnovers: When an employee terminates, the

effect is felt throughout the organization. Co-workers are often required to

pick up the slack. The unspoken negativity often intensifies for the remaining

staff.

5. Goodwill of the company: The goodwill of a company is maintained when

the attrition rates are low. Higher retention rates motivate potential employees

to join the organization.

6. Regaining efficiency: If an employee resigns, then good amount of time is

lost in hiring a new employee and then training him/her and this goes to the

loss of the company directly which many a times goes unnoticed. And even

after this you cannot assure us of the same efficiency from the new employee

14



FACTORS AFFECTING EMPLOYEE RETENTION

1. Internal Factors:

Factors which affect the job satisfaction of the employee inside the

organization for example; strained superior subordinate relationship. Certain

factors are employee centric such as:

• Family responsibilities,

• Personal preference for location of job etc.

2. External factors

When an employee compares his/her position with that of same position in

another company, this may lead to an inequity in the mind of employees, this

will result in employee attrition these include:

• An employee comparing his salary,

• position,

• work environment,

15



• benefits with that of same position in another company may lead to

preference for the other company.

RETENTION – A BIG CHALLENGE

Fundamental changes are taking place in the work force and the workplace that

promise to radically alter the way companies relate to their employees. Hiring and

retaining good employees have become the chief concerns of nearly every

company in every industry. Companies that understand what their employees

want and need in the workplace and make a strategic decision to proactively

fulfill those needs will become the dominant players in their respective markets.

The fierce competition for qualified workers results from a number of workplace

trends, including:

• A robust economy

• Shift in how people view their careers

• Changes in the unspoken "contract" between employer and employee

• Corporate cocooning

• A new generation of workers

• Changes in social mores

• Life balance

Concurrent with these trends, the emerging work force is developing very

different attitudes about their role the workplace. Today's employees place a high

priority on the following:

16



• Family orientation

• Quality of life issues

• Autonomy

• Social status of the job

17



RETENTION STATEGIES PROCESS

18



TYPES OF RETENTION STAREGIES

19



Every individual is different, his needs are different, and his emotions, his

problems are different. There are many employee retention strategies are available

in the industry. The companies should adopt these strategies to retain their

employees into the organization.

Retention strategies are classified into 3 major types these are:-

1. Unique organizational structure strategy

2. Variable benefit strategy

3. Internal advertisement strategy

UNIQUE ORGANIZATIONAL STRUCTURE

ORGANIZATIONAL STRATEGY

Creating a company-specific organization structure and position title is the crux of

this theory. This will reduce the employee’s tendency to compare his position title

and benefits with that of same in other companies. Rather than force the employee

to confine his talents to structured jobs, set job titles according to the knowledge,

skill and ability of the employee.

If an organization possess a unique structure with position titles and its

responsibilities will keep the employee concentrated in the same company rather

than choosing the job in other companies. Following important factors must be

present in the unique organizational structure.

20



a. Set Clear Expectations

When people enter in a company for the first time as an employee, he/she mayhave many expectation regarding the salary, work environment etc. the primary

need for the employee is to yearn a decent salary to live, when this objective is

fulfilled the employee will look for social status such as attractive position titles

and benefits structure which satisfy the egoistic needs of human being. So the

company must manage this expectation by understanding the employee’s

perception.

o What is the employee’s attitude to other organization and its

benefit structure for the same position?

o What are the employee’s expectations from employers/team-

members? What are the parameters to measure their performance?

o A good communication channel present in the organization.

o What will be the rewards, if the employees exceed the expected

level?

If the employees are not having any expectations, how an employer is going to

appraise, the employees? This must be based on some standard.

The employee must have the feeling that his role is important for the company.

Also his position title must be socially acceptable. It should fulfill the egoistic

needs of the employee.

Setting expectations initiates the process. Managers need to sit down with each

employee and clearly define what's expected of them. When expectations are not

clear, employees may not be in sync with their job's current demands and

priorities. Setting expectations is not a once and done activity. Jobs change.

21

http://ezinearticles.com/?id=37225

http://ezinearticles.com/?id=37225



outcome. In the activities trap, developing a plan is the goal, rather than

increasing your market share.

2. Relevance.

The principle of relevance helps define the "why" of the assignment. If your

employees have a full understanding of the project's importance, they can

make adjustments as unanticipated factors crop up within the process. They

probably also will be more committed to the result because they can see more

easily how it fits into the big picture and how their efforts impact the

company.

This understanding typically is accomplished through dialogue between the

manager and subordinate, which allows for a more thorough review of the

situation and for feedback and discussion. This process builds good will with

the employee and sets the stage for additional responsibilities.

3. Simplicity.

Simplicity creates a sense of grounding for employees as they endeavor to

carry out assignments. If managers identify the work in simple,

straightforward terms, employees will find it much easier to follow through on

managers' wishes. To accomplish this, a manager must identify the key

message in a fashion that the employee can embrace.

b. Talent and Skill utilization

23



Talent and skill utilization is another environmental factor your key

employees seek in your workplace. A motivated employee wants to contribute

to work areas outside of his specific job description. How many people could

contribute far more than they currently do? You just need to know their skills,

talent and experience, and take the time to tap into it. As an example, in a

small company, a manager pursued a new marketing plan and logo with the

help of external consultants. An internal sales rep, with seven years of ad

agency and logo development experience, repeatedly offered to help. His offer

was ignored and he cited this as one reason why he quit his job. In fact, the

recognition that the company didn't want to take advantage of his knowledgeand capabilities helped precipitate his job search. In this case the manager can

easily change the position title of the employee and include the relevant job

description in the position title.

c. Fairness and Equitable Treatment

The perception of fairness and equitable treatment is important in employee

retention. In one company, a new sales rep was given the most potentiallysuccessful, commission-producing accounts. Current staff viewed these

decisions as taking food off their tables. The employer can bet a number of

them are looking for their next opportunity. In another instance, a staff person,

just a year or two out of college, was given 20,000 in raises over a six month

time period. Information of this type never stays secret in companies so the

employer must know, beyond any shadow of a doubt; the morale of several

other employees will be affected.

d. Career Growth

24



The best employees, whom you want to retain, seek frequent opportunities to

learn and grow in their careers, knowledge and skill. Without the opportunity

to try new opportunities, sit on challenging committees, attend seminars and

read and discuss books, they feel they will stagnate. A career-oriented, valued

employee must experience growth opportunities within your organization.

VARIABLE BENEFIT STATEGY

Periodical change in the benefit structure leads to increased awareness and

satisfaction with the benefits. One of the purpose of benefit structure is to

motivating the employee. Unfortunately continues enjoyment of the benefits

leads to reduced satisfaction and motivation. This can be solved by

periodical change in benefit structure, i.e. periodically introduce new

benefits and remove the old benefits.Following are the important factors present in the variable benefit structure.

a. Proper Rewarding:-

Proper rewarding is important for the employee to be motivated during the

job.

b. Attracting the Employees

25



The aim of employee reward policies and practices, if any in your

organization is to help attract, retain and motivate high-quality people. Getting

it wrong can have a significant negative effect on the motivation, commitment

and morale of employees. Personnel and development professionals will be

involved frequently in reward issues, whether they are generalists or

specialize in learning and development or employee relations. Keep following

parameters in mind, while designing a reward policy:

c. Recognition of the Work

Recognition is the most cost-effective motivator. While the high cost of other

rewards forces us to give them sparingly, recognition can be given any time,

at very little cost.

Some very ordinary items and events can be imbued with extraordinary

motivational significance, far in excess of their monetary value, motivation of a

pizza or movie tickets can be high if it is given with sufficient appreciation. A

sincere thank you can be delivered at any place and at any time, costs absolutely

nothing and can be more motivationally powerful than a substantial monetary

bonus. Organizations can provide innovative recognition in an infinite number of

ways.

For example, (A Hypothetical Incident) a small manufacturing company made its

employees feel like heroes when they attained a major safety milestone - 100 days

without a single accident. On the morning of day 100, it was announced that a

catered lunch would be served the next day, if they made it to the 5:30 shiftwithout an accident. At 5:15 anticipating was building. Managers took confetti

and streamers to the balcony overlooking the shop floor. When the 5:30 whistle

blew, there were congratulations all around, confetti flew through the air and

26



banners were unfurled. It was a great moment for everyone - and one that was not

soon forgotten. The recognition value of this celebration was extremely high,

while the monetary cost was relatively low.

Highly motivating organizations even celebrate small successes. A health-

conscious company distributes fruit bowls to employees' work areas when key

personal milestones are attained. Another company uses a more fattening

approach: fresh-baked chocolate-chip cookies to say thank you.

Clearly the traditional "pay for loyalty" systems in most organizations need to be

changed. Don't let attendance be your major criterion for rewards. Most

employees resent those who only put in their time and yet receive the same

reward as those who go the extra mile. Today's employees have higher

expectations for what work can and should be, and they want to receive rewards

that reflect their personal efforts and contributions.

This is why so many companies are moving toward performance-based rewards,

including performance bonuses, gain-sharing and non-monetary recognition.

Although not a panacea, companies are finding that these new reward systems do

allow them to give substantial rewards to those who really deserve them. Smart

organizations are looking for opportunities to reduce across-the-board

entitlements, and thereby find more resources for discretionary performance-

based rewards, without increasing the total cost of rewards.

The Law of Rewards - "What you reward is what you get" - Is extremely

powerful. No matter what your orientation materials or job description might say,it is the rewards your organization gives that communicate the real expectations.

The most important question to ask in evaluating the reward system in your

organization is, do the rewards we are giving elicit the performance we want?

27



Start with the results you want to achieve and then pinpoint the types of behaviors

needed to achieve them. For example: Also, don't confuse employees with too

many rewards. It is better to focus rewards on the critical few behaviors and

results, rather than diluting them by rewarding the trivial many.

d. Timely Action

Rewards should be given as soon as possible after the performance has taken

place. This is why the most successful gain-sharing programs pay employees

monthly, rather than quarterly or annually as in the past.

There is a well-accepted law of behavioral psychology, that if you want someone

to repeat a behavior, you should positively recognize it immediately. From this

law, smart supervisors and managers can learn a vital lesson: Look for any

employee doing something right, right now, and recognizes it.

e. Type of reward

Rewards are as different as the people who receive them and it doesn't make senseto give rewards that recipients don't find rewarding. For example, some people

prefer more pay, while others prefer more time off. A promotion might be more

rewarding to one person, while a job-sharing arrangement might be more

rewarding for another. Some people are excited about sports events, others about

movies. Some employees would love a dinner in a romantic restaurant, others a

book by their favorite author. Food, fun, education, improved work environment,

gifts, travel, family-oriented activities - the options are endless.

How do you know what will be rewarding to employees? Ask them. Smart

organizations are also letting employees choose their own rewards from reward

menus and catalogs. Personalizing rewards shows that a company cares enough to

28



discover what "interests" each employee, rather than just distributing generic

items.

f. Longevity of the reward

Increase the longevity of rewards can be done in a number of ways: One of the

keys to reward longevity is symbolism. The more symbolic an item is of the

accomplishment, the more likely it is to continue reminding the employee of why

it was given. For instance, a T-shirt of coffee mug with a meaningful inscription

will continue rewarding those who wear it, or use it, long after its initial receipt.

While the monetary rewards received are spent and forgotten.

Another way to increase the longevity of rewards in your organization is by using

some kind of point system. Rather than rewarding each individual behavior or

accomplishment, points can be awarded, which employees can accumulate and

eventually trade for items from a reward menu or gift catalog. This keeps the

anticipation of rewards fresh for longer periods of time. It also addresses the need

for reward individualization.

One company that designs motivational systems offers an electronic debit-card

system to help larger clients cope with the complexity of distributing, tracking

and redeeming employees' points.

Employees can use their points to purchase virtually anything they want, from

sports equipment and clothing to automobiles and overseas vacations. They only

caveat for such programs is to make sure that the recognition value of the rewards

isn't lost because of the impersonal nature of the technology.

g. Decrease the de-motivators

29



Interestingly, when researchers have investigated the motivational dynamics of

these workplace games, they have found that the major motivator is the playing,

not the prize.

Most de-motivators can be dramatically reduced by soliciting employee

involvement in identifying highest-priority de-motivators and by enlisting top-

management commitment to support their reduction.

It is probably self-evident that considerable sensitivity is needed in the

administration of any reward system. One de-motivator that is probably endemic

in any reward system modification (especially as an organization moves from

entitlements to more performance-based rewards) is a sense that something is

being taken away. Employees need to be educated about the reasons that this is

being done, understand the ultimate benefits to them and the organization, and

should probably have some input into the change process.

h. Avoid perception errors

To avoid the perception of unfairness, it is important, first and foremost, that the

process for allocating rewards is viewed by employees as being impartial. This

requires an objective measurement system that few organizations have. Without

such objective measurement, any reward system is probably destined to failure.

INTERNAL ADVERTISING STRATEGY

30



It communicates the advantages and benefits an employee received from the

company. The theory holds that an organization must extend its marketing

strategies to inside the organization. Competition is not just confined to

marketing division of the organization but it directly affects the Human

Resource division as well. The organizations are competing with each other to

acquire the scarce talent pool.

Internal advertisement simply meant to tell the employee that the

organization which they are working is good and a company favorable

comparison should be given to employees to solve the inequity they perceive.

The major difference with internal advertisement is that the communicationchannel is different from that of marketing channels. Here the communication

1. Communications

Communication is the first step toward creating the kind of environment that

people care about, and if they care, they just may stay. Keep the employees in

the loop about what's happening with the company. At any time, all of your

employees should have a pretty good idea of how business has been, and theyshould be aware of what issues the company is attempting to address.

Regularly keep the employees up to date with important events affecting the

company. If November was good, let them know, and while you're at it, tell

them what you expect to happen in December. Share good news, as well as

points of concern.

Listen to the employee’s when they have ideas for improvement. Again, the benefits extend beyond just making people feel appreciated for their

contributions. These are, after all, the people who do the work every day.

They may have some ideas to improve productivity, and when the employees

31



do come up with one, let everybody know where it came from. Post a "brag

board" in your break room, or circulate an internal newsletter that touts these

contributions. The pay-off is a contagious feeling of pride and, perhaps, some

new efficiency that saves the company money.

2. Speak freely

The ability of the employee to speak his or her mind freely within the

organization is another key factor in employee retention. Does the

organization solicit ideas and provide an environment in which people are

comfortable providing feedback? If so, employees offer ideas, feel free to

criticize and commit to continuous improvement. If not, they bite their

tongues or find themselves constantly "in trouble" - until they leave.

RETENTION TOOL

Apart from the legal and mandatory benefits such as provident-fund and gratuity,

below is a list of other benefits employees should get.

32



1. Group Medi-claim Insurance Scheme: This insurance scheme is to provide

adequate insurance coverage of employees for expenses related to

hospitalization due to illness, disease or injury or pregnancy in case of

female employees or spouse of male employees. All employees and their

dependent family members are eligible. Dependent family members

include spouse, non-earning parents and children above three months

2. Personal Accident Insurance Scheme: This scheme is to provide adequate

insurance coverage for Hospitalization expenses arising out of injuries

sustained in an accident. This covers total / partial disablement / death due

to accident and due to accidents.

3. Subsidized Food and Transportation: The organizations provide

transportation facility to all the employees from home till office at

subsidized rates. The lunch provided is also subsidized.

4. Company Leased Accommodation: Some of the companies provides

shared accommodation for all the out station employees, in fact some of

the companies also undertakes to pay electricity/water bills as well as the

Society charges for the shared accommodation. The purpose is to provide

to the employees to lead a more comfortable work life balance.

5. Recreation, Cafeteria, ATM and Concierge facilities : The recreation

facilities include pool tables, chess tables and coffee bars. Companies also

have well equipped gyms, personal trainers and showers at facilities.

6. Corporate Credit Card: The main purpose of the corporate credit card is

enable the timely and efficient payment of official expenses which the

employees undertake for purposes such as travel related expenses like

Hotel bills, Air tickets etc

33



7. Cellular Phone / Laptop : Cellular phone and / or Laptop are provided to

the employees on the basis of business need. The employee is responsible

for the maintenance and safeguarding of the asset.

8. Personal Health Care (Regular medical check-ups): Some of the

company’s provides the facility for extensive health check-up. For

employees with above 40 years of age, the medical check-up can be done

once a year.

9. Loans: Many companies provide loan facility on three different occasions:

Employees are provided with financial assistance in case of a medical

emergency. Employees are also provided with financial assistance at the

time of their wedding. And, the new recruits are provided with interest

free loans to assist them in their initial settlement at the work location.

10. Educational Benefits : Many companies have this policy to develop the

personality and knowledge level of their employees and hence reimburses

the expenses incurred towards tuition fees, examination fees, and purchase

of books

11. Performance based incentives : In many companies they have plans for,

performance based incentive scheme. The parameters for calculation are

process performance i.e. speed, accuracy and productivity of each process.

The Pay for Performance can be as much as 22% of the salary.

12. Flexi-time : The main objective of the flextime policy is to provide

opportunity to employees to work with flexible work schedules and set out

conditions for availing this provision. Flexible work schedules are initiated

by employees and approved by management to meet business

commitments while supporting employee personal life needs The factors

34

http://www.bpoindia.org/research/retention-strategies-call-center-industry.shtml

http://www.bpoindia.org/research/retention-strategies-call-center-industry.shtml



36



ABOUT WIPRO

WIPRO

Overview

Wipro started as a vegetable oil company in 1947 from an old mill founded

by Azim Premji's father. When his father died in 1966, Azim, a graduate in

Electrical Engineering from Stanford University, took on the leadership of the

company at the age 21. He repositioned it and transformed Wipro (Western India

Vegetable Products Ltd) into a consumer goods company that produced

37



hydrogenated cooking oils/fat company, laundry soap, wax and tin containers and

later set up Wipro Fluid Power to manufacture hydraulic and pneumatic cylinders

in 1975. At that time, it was valued at $2 million.

In 1977, when IBM was asked to leave India, Wipro entered the information

technology sector. In 1979, Wipro began developing its own computers and

in 1981, started selling the finished product. This was the first in a string of

products that would make Wipro one of India's first computer makers. The

company licensed technology from Sentinel Computers in the United States and

began building India’s first mini-computers. Wipro hired managers who werecomputer savvy, and strong on business experience.

In 1980 Wipro moved in software development and started developing

customized software packages for their hardware customer s. This expanded

their IT business and subsequently invented the first Indian 8086 chip.

Since 1992, Wipro began to grow its roots off shore in United States and by

2000 Wipro Ltd ADRs were listed on the New York Stock Exchange.

With over 25 years in the Information Technology business, Wipro Technologies

is the largest outsourced R & D Ser vices provider and one of the pioneers in the

remote delivery of IT services. Being a global provider of consulting, IT

Services, outsourced R&D, infrastructure outsourcing and business process

services, we deliver technology- driven business solutions that meet the strategic

objectives of our Global 2000 customer s. Wipro today employs 96,000 people

in over 50 countries. A career at Wipro means to learn and grow continuously,

opportunities to work on the latest technologies alongside the finest minds in the

industry, competitive salaries, stock options and excellent benefits.

38



Human Resource Planning

(HRP)

Human resources planning is an important component of securing future

operations. For sustainability, plans must be made to ensure that adequate

resources are available and trained for all levels of an organization. Although

police organizations are stretched to meet current service requirements, it is

important that they also spend time to create plans to ensure there will be

officers to fill future positions. These plans must be prepared well in advance,

with targets set for the short, mid and long term. Not only must adequate

resourcing be considered for the bulk of the workforce but special

consideration must be given for the leadership of each organization. This

requires developing specialized succession plans for identifying and

grooming potential future leaders. The leader candidates must receive

management, leadership, and all relevant knowledge and skills training. Plansshould also be created to leverage the knowledge of those leaving today’s

leadership roles so that future leaders are fully informed. Securing future policing

operations requires careful planning and a clear implementation strategy.

“When I look at where we have come, what gives me tremendous satisfaction is

not so much the success, but the fact that we achieved this success without

compromising on the value we defined for ourselves. Values combined with a

powerful vision can turbo-charge a company to scale new heights and make it

succeed beyond one’s wildest expectations.”

39



Azim Premji

The basic purpose of having a manpower plan is to have accurate estimate of

required manpower with matching skills requirements. The main objectives are:

• Forecast manpower requirements.

• Cope with changes ± environment, economic, organizational.

• Use existing manpower productively.

• Promote employees in a systematic way.

Wipro is the first People Capability Maturity Model (PCMM) Level 5, SEI

Capability Maturity Model (CMM) Level 5 and version 1.1 of CMMi

certified IT Services Company globally. Wipro¶s people processes are based on

the cur rent best practices in human resources, knowledge management and

organization development, giving a great focus to match changing business needs

with development of employee competencies.

Capability Maturity Model (CMM)

40



Wipro has expertise in Six-Sigma methodologies, which have been put in

use to streamline and enhance existing people processes in organizations,

enabling decision making based on metrics and measurements.

• The central idea behind Six Sigma is that if you can measure how many

defects´ you have in a process, you can systematically figure out how to

eliminate them and get as close to ³zero defects´ as possible.

• Six Sigma starts with the application of statistical methods

for translating information from customers into specifications for

products or services being developed or produced. Six Sigma is the

business strategy and a philosophy of one working smarter not harder

Wipro is the first Indian company to adopt Six Sigma. Today, Wipro has one of the most mature Six Sigma programs in the industry ensuring that91% of the projects are completed on schedule, mush above the industryaverage of 55%. As the pioneers of Six Sigma in India, Wipro has

41



already put around ten years into process improvement through Six Sigma.Along the way, it has scaled Six Sigma ladder, while helping to roll out over 1000 projects. The Six Sigma program spreads right across verticals and

impacts multiple areas such as project management, market developmentand resource utilization

Evolution of Six Sigma at Wipro :-

Six Sigma at Wipro simply means a measure of quality that strives for near

perfection. It is an umbrella initiative cover ing all business units anddivisions so that it could transform itself in a world class organization. AtWipro, it means:

(i) Have products and services meet global benchmarks(ii) Ensure robust processes within the organization(iii) Consistently meet and exceed customer expectations(iv) Make Quality a culture within.As timely reviews play a very crucial role to judge the success of a project. Wiprohad to develop a team of experts for this purpose. The task assigned was to see thetimeliness, find out gap, week areas and to check the outcome as per the plan.

Build the Culture:

Implementation of Six Sigma required support from the higher level managers. Itmeant restructuring of the organization to provide the infrastructure, training and

42



the confidence in the process. Wipro had to build this culture and that took time inimplementation.

Project selection:The first year of deployment was extremely difficult for Six Sigma success. Theydecided to select the project on the basis of high probability of their success and targeted to complete them in a short period to assess thesuccess. These projects were treated as pilot projects with a focus to learn.For the selection of the right project the field data was collected, processmap was developed and the importance of the project was judged from theeyes of customers.

Training:

After the set up, the first step of implementation was to builda team of professionals and train them for various stages of Six sigma. Thetraining was spread in five phases:

• Defining,

• measuring,

• analyzing,

• improving and controlling the process and

• lastly increasing customer satisfaction.

These phases consisted of statistics, bench marking and design of

experiments. To find the r ight kind of people and train them was a difficult job. This motivated Wipro to start their own consultancy to train the people.

Resources:

It was difficult to identify resources that required for short-term basis and long-term basis as it varied from project to project. Wipro did it on the basis of seriousness and importance of the project.Human Resource Policies :-

• Manpower Planning

• Recruitment & Selection

• Training & Development

•Performance Appraisal

• Promotion, Transfer, & Demotion

• Welfare Activities

43



HUMAN RESOURCE POLICIES OF

WIPRO

RECRUITMENT

44



Recruitment refers to the process of screening, and selecting qualified people for a job at an organization or fir m, or for a vacancy in a volunteer-basedorganization or community group. While generalist managers or administratorscan undertake some components of the recruitment process, mid- and large- sizeorganizations and companies often retain professional recruiters or outsourcesome of the process to recruitment agencies. External recruitment is the process of attracting and selecting employees from outside the organization.

A. Internal Sources:-

• Promotions and Transfer

•

Job postings• Employee Referrals

B. External Sources:-

• Advertisement

• Employment Agencies

• On campus Recruitment

• Employment exchanges

• Education and training institute

Recruitment process :-

WIPRO recruitment process consists of three rounds.

Round 1 : Written test

1. Verbal:This section will have 15 questions related to synonyms, antonyms, Analogies,SC, Prepositions and reading comprehension.

2. Aptitude:This section will have 15 questions related to aptitude topics like Time &

Work, Time & Distance, Blood Relations, Series Completion, Puzzles,Calendars, Clocks, Percentages, Ratio proportions, Ages, Pipes and Cisterns etc.

3. Technical:

45



This section will have 20 questions related to basic technical concepts fromC, C++, Java, Linux, UNIX, DBMS, SQL, Programming fundamentals,Hardware, Software Engineering, Micro Processors etc. Candidates are

informed to brush up their technical skills which were covered in their regular academic curriculum.

Round 2: Technical Interview:-

This is a major elimination round. Candidates should be thorough with their basictechnical skills to clear this round. Candidates are here by informed to be prepared with their core subjects.

Round 3: HR Interview:-

Candidates can expect basic HR inter view questions like Tell me about your self, Why should I hire you, Why only WIPRO, What is SIX sigma level.Candidates will be tested in their communication and vocabulary during technicaland HR interviews.

Round 4: Placement:-

Upon Joining, the incumbent shall be given an employee code number by

Manager(HR) and he shall fill up the joining for ms and shall submit the same tothe Manager(HR) for further course of action.

Wipro recruit 40% employees from campus recruitment. Another popular source for Wipro’s Recruitment is the Online Placement throughNSR (National Skill Registry).

TRAINING

46



TrainingThe term training refers to the acquisition of knowledge, skills, and competenciesas a result of the teaching of vocational or practical skills and knowledgethat relate to specific useful competencies.Training & Development of individuals is a key focus area at Wipro. Our Talent Transformation Division handles this. For those with less than one year of

experience a well-structured induction training program is conducted. This willcover all aspects of software development skills that are required. _

• As a PCMM Level 5 organization, there is also high focus onCompetency Development. Talent Transformation has a mandate to provide technical & business skill training based on the departmental anddivisional need. All employees are eligible to take training based on thecompetency gap identified or Project need.

• In addition to class room training one can take e-Learning with out waitingfor class room training.

• Compliance and Regulatory training is an important aspect intoday’s regulated environment and is often implemented as part of

corporate initiatives. All large companies have mandatory trainings be itin the field of Environment, Health & Safety, Ethics, Risk-Management,Finance, Law, etc.

47



Rapid Learning:-At Wipro, we know how critical time is for fulfilling training needs and hence we

have developed competency in the area of Rapid Learning. An emerging formof content development, Rapid Learning helps to develop content in a shortspan of time using various tools; the content deliver y can be both synchronousas well as asynchronous. Wipro has strategic partnerships with leadingtechnology providers to help you choose the tool that suits your requirement best. Based on research conducted in this area, Rapid ContentDevelopment can be used for any of the following content areas:

Critical Training when the training requirement is critical and must beaddressed immediately

Minor change when the difference between what is known and what isnew is minimal

Short shelf life when the content in question has a very short shelf life

Frequent updates when the content needs to be updated frequently.

Process Training:Large enterprises keep updating their processes to improve the efficacies of their systems. Business process training is typically a part of any organization’ overall

change management plan. Wipro provides Process Training in several fieldsincluding HR, Quality, Operation, Payroll, Recruitment, and more. For ameaningful transition of the process, quality training is extremely critical.Understanding the complexities involved in rolling out these processtrainings, we bring you quick solutions that help deliver effective training for your organization.The components of process training are:1. Analyze2. Inform3. Involve4. Support

DEVELOPMENT

48



Wipro Leaders Qualities Survey, which started in 1992, is one of our oldestleadership development initiatives. It has successfully contributed in our endeavor to nurture top class business leaders in Wipro. We have 8 WiproLeadership Qualities, which are based on Wipro vision, values and businessstrategy. In order to identify and help leaders develop these competencieswe adopt a 360-degree survey process. This is an end-to-end program, whichstarts with the obtaining of feedback from relevant respondents and ends witheach leader drawing up a Personal Development Plan (PDP) based on thefeedback received. The PDP is developed through³Winds of Change´which is a seven-step program that helps in identifying strengths

and improvement areas, and deter mining the action steps.The Leadership developmental framework

Leadership Lifecycle ProgramsWipro has developed an approach for Life Cycle Stage Development Plan.Training and development programs at various stages have been designed bymapping the competencies to specific roles. Competencies specify the specific

success behaviors at every role.

49



Entry-level program (ELP)

• The program covers the junior management employees with theobjective of developing managerial qualities in the employee. The targetgroup is campus hires and lateral hires at junior level. - It is popular lyknown as NLP and aims at developing New Leaders¶ Program (NLP) potential people managers, who have taken such roles or are likely to getinto those roles in the near future.

Wipro Leaders Program (WLP)

• This program is for middle level leader with people, process, businessdevelopment and project management responsibilities. These leadersare like the flag bearers of Wipro values and Wipro way of doing business.

• This is for senior leaders with business

Business Leaders¶ Program (BLP)

At this level, people are trained up for revenue generation; and Profit & Lossresponsibilities. The program covers commercial orientation, clientrelationship development, and team building and performance managementresponsibilities among other things.

Strategic Leaders Program (SLP)

- This program covers top management employees.

• The focus is on Vision, Values, Strategy, Global Thinking and Acting,Customer Focus and Building Star Performers. Wipro ties up withleading business schools of international repute to conduct this programfor Wipro leaders.

Custom Content Development

As a part of the Custom Content Development Service, Wipro providesinnovative and affordable learning content solutions. This ser vice is customizedspecially to meet your requirements and help you get a competitive edge. Wipro’sCustom Content Development Service goes through a rigorous development cycleto ensure Quality and Timely Delivery of the solution.

50



Custom Content Development Service includes:

• Application Training

• Process Training

• Compliance and Regulatory Training

• Product Training

• Rapid Training Solutions

PERFORMANCE APPRAISAL

Performance appraisal is a method by which the job performance of anemployee is evaluated in terms of quality, quantity, cost and time.Performance appraisals are regular reviews of employee performance withinorganizations.

Aims of a per formance appraisal :-

• Give feedback on performance to employees.

• Identify employee training needs.

• Document criteria used to allocate organizational rewards.

• Form a basis for personnel decisions: salary increases, promotions,disciplinary actions, etc.

• Provide the opportunity for organizational diagnosis and development.

• Facilitate communication between employee and administrator.

• Validate selection techniques and human resource policies to meet federalEqual Employment Opportunity requirements.

Wipro’s solution aims at strategic value delivery in the least possible timeincorporating rich functional features, aided by smooth workflow, notification,authorization, etc.

•

Align employee objectives to the business goals. Enable strategicPerformance Management through Management by Objectives (MBO)

• Measure and Assess employee performance periodically and providefeedback and support to achieve quantitative, qualitative and processtargets

51



• Evaluate and track Hi-Performance and achievers based on Competencydriven practices.

• Enable online Reward and Recognition. Performance Appraisal

PROMOTION

Promotion is the advancement of an employee's rank or position in an

organizational hierarchy system. Promotion may be an employee’s reward for good performance i.e. Positive appraisal. Before a company promotes an

employee to a particular position it ensures that the person is able to handlethe added responsibilities by screening the employee with inter views and testsand giving them training or on-the-job experience.As per Guidelines for supervisory employees promotion/up gradation, applicableto the present year, Manager (HR) prepares the list of eligible employees.Simultaneously, V P (HR) also asks for recommendations from HODs. Acomprehensive list is then prepared by Manager(HR) and submitted to the EPPPwhich is announced by the Site President, for Executive and Manager family,and by the Group President ( MSD), for Leader Family.

Bases Of Promotion :-

• Seniority: - Seniority simply depends upon how long the employees isdoing job with the company. The length of service and talent are bothinterrelated with each other. It is based on the tradition of respect for older people. It creates a sense of security among employees andavoids conflict arising from promotion decision

• Merit: - Merit implies the knowledge, skill and performance recordsof an employee. It helps to motivate competent employee to work hardand acquire new skills. It helps to attract and retain young and promising employees in the organization.

On the above basis, promotion of employees is done in Wipro. Wipro also promptemployee by conducting different case studies on different aspects of Information Technology. Working at Wipro is very comparative & to get promotion required smart work and projection.

52



TRANSFER Transfers are generally effected to build up a more satisfactory work team and Tomeet the Organizational requirement / Employees request the employees has been transfer from one assigned job to another or one location to another location.

A transfer is a horizontal or lateral movement of an employee from one job,section, department, shift, plant or position to another at the same or another place where his salary, status and responsibility are the same or may be vary.Generally does not involve a promotion, demotion or a change in job status other than movement from one job or place to another.´

Purposes of Transfers :-

• To satisfy needs of an organization

• To met employees own needs

• To utilize workforce

• To increase the versatility of employees

• To provide relief

• Transfer s for the maintenance of a tenure system

Every organization should have a just and impartial policy which should be

known to each employee. The responsibility for effecting transfers is usuallyentrusted to an executive with power to prescribe the conditions under requestsfor transfers are to be approved. For successful transfer policies, it is necessaryto have a proper job description and job analysis.

A good transfer policy should contain following.i. Specifically clarify the type of transfers and why they are madeii. Deciding the authorized person who may initiate and implement transfer siii. Indicate the basis of transfer iv. Decide the rate of pay to be given to the transfereev. Intimate the fact of transfer to the person concerned well in advance

vi. Be in writing and duly communicated to all concernedvii. Not be made frequent and not for the sake of transfer only.

COMPENSATION

53



Compensation is a systematic approach to providing monetary value toemployees in exchange for work performed. Compensation may achieveseveral purposes assisting in recruitment, job performance, and job satisfaction.

Wages and salaries structure is very vital for the retention of the employees as dueto stiff competition, if proper salary is not given then the employees will goto those organization offering higher salaries. Jivraj Tea Ltd is activelyinvolved in retaining good manpower in the organization by providing proper salary and incentive methods.

Wipro runs 50 offices in India.

It has a br anch office in USA, Canada, Europe, Middle east, Africa etc.Payscal of Employee at Wipro

Employee Class No of Employee Salary (Rs/Month)A+ Class 128 120000 U.S $A Class 1240 150000B+ Class 33000 60000B Class 22000 40000Technician 4000 35000Zero level 3440 10000Total 63808

EMPLOYEE WELFARE

Employee Welfare According to the Oxford dictionary, employee welfare or labour welfare means the efforts to make life worth living for workmen.´ Labour Welfare means anything done for the comfort and improvement, intellectual or social, of the employees over and governmental, which is not a necessity of theindustry.

Welfare Activities:-

1.Education : Wipro has its own institute, where the education is given to theemployees children absolutely free. The school has classes from JR. kg to class-XII in English medium. Free transportation facility is also provided to them.

2.Medical Company’s philosophy is Nobody should die without fund´. Company believes its responsibility towards health services to provide to the

54



employees go beyond the statutory provision. Being the petrochemicalindustry and some of their process are considered ³Hazardous .́ Companyrecognizes the importance of good occupational health services. Therefore,

at the manufacturing sites, they have well equipped, full fledged medicalcentre, which are manned round the clock.

3. Housing :Company has it¶s own township at different location inBangalore. If house is available, the new employees are allotted the houseotherwise the company can also hire house. All the maintenance in houses provided to employees by company is done by the company.

4. Canteen: The Company gives canteen facility under which food is provided to the employees but it is not compulsory for them. They get theallowance in their salary. The Contract Cell at Wipro invites tenders and the

Contract cell signs detailed agreement with the contractor. The operation of thecanteen is given on the contract.

5. Sports : To motivate the employees of the company organizes different sportstournaments i.e. Cricket, Volleyball, Table Tennis, Badminton Etc.

6. Recreation activities : For the recr eation of the employee, company organizedgets to gather once in a year with their family. And also arranged shortdistance picnic. For picnic they get Rs. 100/- and free transportation once in ayear.

7. Club membership: The purpose of the club membership is to meet theother members of the industrial community and inter act with them for r elation personnel leisure. This facility is provided only to the SMC and above.

8. Insurance Policy: Wipro provides personal accident insurance policy of Rs100000 for employees. Premium of the company is half pay by employeeand other will pay by Wipro

55



RETENTION STATEGIES USED BY

WIPRO

56



STUDY FOR RETENTION STRATEGY:-

Study of Wipro various reasons for attrition of the employees and also strategies

to retain the employees. This study includes general study and also case study of

Wipro.

Retention management is the latest and most pressing problem of the new

Millennium. Each and every business in this economy has now become

knowledge based. It has therefore become essential for the top management to

preserve the dynamic repositories of learning, which are their employees.

Staff retention in the current economic environment is a major challenge. Themajor focus for employees in hyperinflation environment is survival. If the

organization cannot provide enough to enable the employee to survive, the

employee is likely to look elsewhere for survival. However if organizations

manage to identify causes of staff turnover that they can control, they should

target those areas for change or making improvements.

NEED FOR THE STUDY:

Employers have a need to keep employees from leaving and going to work for

other companies. This is true because of the great costs associated with

hiring and retraining new employees. The best way to retain employees is by

providing them with job satisfaction and opportunities for advancement in

their careers. 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.

57



A study of employee retention in Wipro is taken for the following reasons:

1. Wipro is emerging as one of the top global player in the IT sector.

2. The number of projects in Wipro has been increasing the last two years.

3. Wipro has the highest attrition r ate in the IT industry at 20.3%.

4. The cost of attrition is very high and eats into the profits of the company.

5. The loss from the knowledge pool is very high and can lead to bringing projects

to a standstill.

6. The cost and time involved in replacing an employee is very high and it mighteffect the reputation of the company.

7. Wipro uses a combination of these to succeed in their talent management

efforts. The various talents management strategies and the success achieved by

Wipro uses following retention strategies:

1. pay and benefits

2. career growth

3. work environment

4. training

5. job satisfaction

58



PAY AND BENEFITS:

Pay constitutes the largest part of the employee retention process. The employees

always have high expectations regarding their compensation Packages. Pay

includes salary and wages, bonuses, benefits, prerequisites, stock options,

bonuses, vacations, etc. Employee benefits typically refer to retirement plans,

health life insurance, life insurance, disability insurance, vacation, employee stock

ownership plans etc. Pay is the most important factor responsible for

keeping the employees in the organizations. It should be kept competitive to

ensure that the employees do not defect to competitors. IT & ITES players areusing variable pay as a strategic tool not only to retain but also for taking the best

out of their employees.

Hewitt’s research also shows that the services sectors offer variable pay

more than capital intensive sectors. The success of a services company lies in its

people, and therefore service-oriented organizations are more willing to include a

higher variable pay component in their compensation structures. Offering flexible

benefits is another way to raise employee satisfaction. In India, some 10-15

percent of companies allow executives to make their own mix of salary packages

the study in Wipro was conducted on two factors, viz. Performance based pay and

the benefits given to the employees. Performance based pay is accepted well by

majority of the employees. The component of Performance based pay in the pay

in the pay structure is increasing year by year. However, on one hand when

performance based pay motivates an employee to work to his best, care should

also be taken to make sure that the component of performance based pay should

not be too stressful for the employee. It might so happen that an employee was

unable to perform for a particular period considered due to some personal issues,

however, he is generally at the top of the performance rating.

59



Chart 1: Responses For Pay and Benefits

The above shown graph shows that Pay and benefits is significant for retention of

employees

CAREER GROWTH:

Career Growth can be defined as a way of success where at every regular

interval we must have new challenges to face, new activity to do, responsibilities

to handle and most importantly new process to learn.

A promotion is the advancement of an employee's rank or position in an

organizational hierarchy system Before the company promotes an employee to a

60



particular position it ensures that the per son is able to handle the added

responsibilities by screening the employee with interviews and tests and giving

them training or on-the-job experience. As per Guidelines for supervisory

employees’ promotion/up gradation, applicable to the present year, Manager (HR)

prepares the list of eligible employees.

Bases of Promotion:-

1. Seniority: - Seniority simply depends upon how long the employees is doing

job with the company. The length of service and talent are both interrelated witheach other. It is based on the tradition of respect for older people. It creates a

sense of security among employees and avoids conflict arising from promotion

decision.

2. Merit:- Merit implies the knowledge, skill and performance records of

an employee. It helps to motivate competent employee to work hard and

acquire new skills. It helps to attract and retain young and promising

employees in the organization. Wipro also prompts employee by conducting

different case studies on different aspects of Information Technology.

Working at Wipro is very competitive and smart work and projection is

required for growth.

61



Chart 2: Responses for Career Growth

The above shown graph that career growth is significant for retention of

employees

TRAINING AND DEVELOPMENT:

According to the recent review by Harvard Business Review, there is a direct link

between training investment of the companies and the market capitalization.

Those companies with higher training investment had higher market

capitalization. It clearly indicates that the companies which have

successfully implemented training programs have been able to deliver

customer goals with effective results.

With the growing investment by IT companies in the development of their

employees many companies have now started their own learning centers.

Companies are investing in both the technical training, which has always been an

essential part in IT industry, as well as in managerial skills development.

Companies now keep aside 3-5% of revenue for training programs. As an

62



example, some of the major players like Accenture and Wipro are allocating 7%

and 3% respectively of the company’s overall revenue.

Training & Development of individuals is a key focus area at Wipro. Wipro

invests about 4 percent of its annual revenues in Learning and Development, to

build competency capital within the company in cutting edge technologies,

domain and functional areas. Special emphasis is placed on providing

necessary learning interventions to associates with potential of being leaders in

the company. Wipro has state of the art training facilities in all its delivery

centers. The centers are equipped with world- class infrastructure. The Talent

Transformation Division handles this in Wipro. For those with less than one year of experience a well-structured induction training program is conducted. This will

cover all aspects of software development skills that are required.

Chart 3: Responses for Training and Development

The above given graph proves that training and development is significant for employee retention

63



WORK ENVIRONMENT

A healthy corporate culture of caring for the workers, community and

environment will strengthen the social spiritual capital, leading to a positive work

climate of empowered and supported workers.

Father N. Casimir Raj, XLRI, and Founder Director of LIBA, said, "There has

been a clear shift in the values and this has emerged as one of the key areas of

concern as this is being increasingly neglected. A new breed of self approach

stands out where the focus is on monetary benefits."

Feedback system also plays a major role in building positive work culture in

organizations as it provides a channel by which the problems and grievances can be heard by the top management an also a medium by which top management can

be updated by the market conditions by the employees which are in direct contact

with the market. Wipro as an organization believes in connecting and listening

people. There are various communication and feedback programs at Wipro.

Chart 4. Response for work environment

This graph proves that a good work environment is significant for retention of employees

64



JOB SATISFACTION:

Benefits and high profits are key essentials when it comes to having a high job

satisfaction among the company’s employees and a low turnover rate.

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 in regard to one's feelings or state-of- mind regarding the nature of

their work. Job satisfaction can be influenced by a variety of factors, e.g., the

quality of one's relationship with their supervisor, the quality of the physicalenvironment in which they work, degree of fulfillment in their work, etc..́ This

company goes above and beyond the typical benefits, providing free gourmet

meals, onsite oil changes, onsite car washes, a $500 voucher for takeout food after

the birth of a child, a free annual ski trip, unlimited sick days, and more. Wipro

focuses on job satisfaction in order to keep employees with their company and

receive a better output from their employees. Wipro realizes that providing

flexible timings to employees is not the only way of increasing job

satisfaction. Wipro endows responsibilities to its employees and lets the

employee utilize his responsibility. Another measure taken is to respect and

nurture every employee’s work life balance.

Sessions are conducted on the importance of work life balance. In Wipro, every

employee career path is marked out, helping the employee work correctly and

therefore giving the company very satisfied employees.

65



Chart 5: Responses for Job Satisfaction

The above given graph proves that on job satisfaction is highly important for

employees.

66



RESEARCH METHODOLOGY

67



RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the problem .For this

purpose, Objectives (research problem) should be clearly defined. Finally, the

data is collected in order to meet the objectives of research problem.

WHAT IS RESEARCH-

The ADVANCED LEARNER’S DICTIONARY of Current English lays down

the meaning of research as “a careful investigation or inquiry especiallythrough search for new facts in any branch of knowledge.”

OBJECTIVES OF THE STUDY

1. To study the factors that affect employee retention in WIPRO.

2. To study the attributes that can be adjusted to retain employees in

Wipro Technologies

3. The understand the nature of the work, employment, and labour

relationships in WIPRO.

4. To prove how employees’ retention is essential in this day and age

RESEARCH DESIGN

It is a conceptual structure with in which research would be conducted. The

function of research design is it provide for the collection of maximal relevant

information with minimal expenditure of effort, time, and money. In this

research problem the research design would be OBSERVATORY in nature.

68



OBSERVATORY RESEARCH:

This type of research design is rigid in nature. It understands problems creates

findings and produces a report for it. In this the researcher must be able to define

clearly what he wants to measure and must find adequate method for measuring it

with clear definition of population he wants to measure.

The main aim is to obtain complete and accurate information. The research design

must provide provision for protection against biasness and maximize reliability.

SAMPLE DESIGN:

TYPE OF SAMPLING : Convenient sampling

DATA TYPE : SECONDARY DATA

TYPE OF RESEARCH : It is an OBSERVATORY Research,

in which the researcher has

no control over the variables he

can only report what

has happened or what is

happening

DATA COLLECTION TOOL : Secondary data includes reports

and records of the organizations for the

past two years and the data collected

from the NASSCOM website on the rates

of attrition. Research studies conducted by

69



individuals, institutions and agencies, and

various other journals were considered

ANALYSIS AND

INTERPRETATION

70



FINDINGS

• PAY AND BENEFIT: Wipro has adopted a flexible pay system in which

all managerial employees can design their own compensation package

based on their individual needs like car, furnishings, etc. the graph shows

that compensation pays a vital role in employee retention.

• CAREER GROWTH: every employee of the organization wishes to have

a job profile which will help them to grow further in their career and thus

have a bright future.

• TRAINNG AND DEVELOPMENT: to make employees understand kind

of work in the company training is highly important. Proper training

session should be conducted for employees.

• WORK ENVIRONMENT: A friendly working atmosphere needs to be

maintained to ensure a healthy working atmosphere.

•JOB SATISFACTION: employees should be satisfied with the work culture and environment so that they are satisfied with the job and work

properly.

71



CONCLUSION:

A huge fraction of the people have less experience only one to two years in

Wipro and hence high level of importance should be given to employee

retention All the factor s viz. Pay and Benefits, Career Growth, Training and

Development, Work Environment and Job Satisfaction are important for

employee retention.

For retaining a talent from an age group of 20 to 30 years, the HR manager must

concentrate more on career growth and charting out a good career plan When it

comes to an employee of an age group of 30 to 40 years, more emphasis must be

paid on training and development as without training, this cadre of employees

may not be on par with the current technology.

• Performance Based Pay should be given utmost importance. Employees

are happier if they are paid according to their performance and this

encourages them to perform better. Benefits are important for retention

however with varied opinions.

• Career Aspirations of all employees have not been met uniformly.

However, mentoring in Wipro is pretty successful as most employees feel

its being done in the right direction.

• The data reveals that equal opportunity is not being given to all employees

to attend the training programs of their choice. Therefore this aspect

should be taken care.

73



• The opinions regarding the friendliness and approachability of managers

seem varied.

SUGGESTIONS:

• The younger group of employees should be well appreciated to increase

their morale to enable them to work better.

• The experienced group of employees should be exposed to the current

case technology to enable them to move forward and not be redundant in

the industry.

• The HR managers should check on the career paths drawn for all

employees.

• To retain the good talent who are new to the industry, they must

be given a pay package according to industry standards.

• Employees should be rated correctly according to their performance and

paid accordingly.

•

The career aspirations of all employees should be carefully under stood bythe HR managers and career paths should be designed accordingly.

• Training provided should be at par with industry standards. All employees

should be provided the training of their choice, and no favoritism should

be shown amongst the employees

• The managers should be friendly and approachable so as to realize the first

signs of attrition. If attrition is stopped at the preliminary stage then steps

can be taken to curb the same.

• Employees should be encouraged to take pride in the work they do

74



COMPARISION

75



COMPARISION BETWEEN MAIN STRATEGIES AND STRATEGIES

USED BY WIPRO

1. CLEAR EXPECTATIONS:-

The company should set clear expectations

in front of its employees. Everything should be clearly mentioned in the

code of conduct of the company. This activity is not performed by either of the companies. There are certain changes which are made by the

company without giving any prior notice. This creates problem among the

employees.

2. TALLENT AND SKILL:-

There are certain cases where talent

and skills of the employees are not encouraged. They are not given a

change to prove themselves. There are certain people who are capable

enough to get promoted but they are not promoted due to certain clauses

of the company. This activity de-motivates the employees. The

management should try to motivate its employee to perform well.

3. TIMELY ACTION:-

It should be always kept in mind that if any activity

is performed it should be done on time otherwise it does not have any

relevance. In same way if any decision is to be taken regarding employee

welfare it should be prompt, so that timely advantage is gained out of it.

76



4. LONGETIVITY OF REWARD:-

The reward given to the employees should

be such that they are prolonged and the advantage of it is gained for longer

duration of time.

5. REGOGNITION OF WORK:-

The work assigned to the employeesshould be initially taught to them, so that in case of any doubt they can

clarify it Companies should move toward performance-based rewards,

including performance bonuses, gain-sharing and non-monetary recognition.

Company should give substantial rewards to those who really deserve them.

77



BIBLIOGRAPHY

78



Books

1. C. R. Kothari, Research Methodology methods and techniques, Second edition,

Wishwa Prakashan year 1997

2. Donald R. Cooper, Pamela S. Schindler. Business Research methods,: Eight

editions Tata McGraw-Hill year 2004

3. K. Aswathappa, Organizational Behavior , Fifth editions, Himalaya Publishing

House year 19894. V.S.P Rao, The Human Resource management text and cases, second editions ,

Excel Books year 1992

Journals

1. The ICFA In Journal of management and research,Volume V No:2

February 2007, ICFAI university press, Page no 65: Human resource development

climate in IT companies in India.

2. HRM review, Employer’s brand, ICFAI university press, June 2006

Websites

http://www.employeeretentionstrategies.com/bottomline.htm

http://www.ioma.com/audioconferences/471.html





Report 4th Sem1

Documents

Transcript of Report 4th Sem1