EMPLOYEE RETENTION TECHNIQUES AT MAHAGENCO

EMPLOYEE RETENTION TECHNIQUES AT MAHAGENCO

 PREFACE

Corporate are facing a lot problem in employee retention these days. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. In a Business setting, the goal of employers is to decrease employee turnover, training costs, and loss of talent which is great hindrance to proper planning and smooth working of organization.

      For the organization like MAHAGENCO which is an important source of power (Electricity) generation which is the basic need of people, Employees retention is very important. In today’s competitive world it has became difficult to retain the talent hence it is a serious problem. This problem requires comprehensive and integrated approach, which cannot be solved only through either by piecemeal efforts or by different punishment.

The present study seeks to provide an insight into absenteeism in MAHAGENCO

INTRODUCTION:

Organizations are 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.

 “Employee retention is a process in which the employees are encouraged to remain in the organization for the maximum period of time.” Employee retention refers to the efforts by which employers attempt to retain employees in their workforce. In a Business setting, the goal of employers is to decrease employee turnover, training costs, and loss of talent. By implementing lessons learned from key organizational behavior concepts employers can improve retention rates and decrease the associated costs of high turnover. Corporate are facing a lot problem in employee retention these days. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. There is no dearth of opportunities for a talented person. There are many organizations which are looking for such employees.

 There are various HR issues the a corporate deals

1.      EMPLOYEE TURNOVER

2.      ATTRITION

These basic needs other than routine and future HR tasks are to be taken care of on Priority before it becomes late. Have you ever phoned or revisited a client and discovered that the person you were dealing with is no longer working for the company? It’s an unfortunate and frustrating realization. All that time – and often money – spent developing a relationship and sharing business strategies with someone you trusted went out the window. Now recall how you felt about the organization your client represented. Their reputation became unreliable, you lost faith in their business practices and you probably lost interest in working with them. So if you have felt this way about other companies, then your clients likely feel the same about yours if you have trouble retaining your top talent. For managers, nothing feels better than having a strong, successful, happy workforce in place who are mutually focused on the organization’s performance. Hiring top-quality individuals is an important task on its own, but essential to any manager’s ongoing process is a critical retention strategy. In fact, hiring does not end when the candidate has accepted the position. Advantageous initiatives and well-planned processes must be firmly in place and consistently nurtured so that employees will have reasons to remain with your company for growth to continue. Following a well developed strategy will let you reduce recruitment through retaining your top-performing talent. Obviously, you cannot hold onto all your best people, but you can certainly minimize the loss. Reducing employee turnover is a strategic and vital issue, beneficial to your company’s bottom line. It has taken considerable time and resources to attain a staff whom you are proud of – to replace them starves your organization of many essential success factors (money, overall attitude, productivity, etc.) and the company’s ultimate triumph. The intent of this whitepaper is to help you discover the importance of retaining your valuable employees and provide you with a list of solutions.

PEOPLE ARE VALUABLE

           Like an art collector who has spent time and research attaining that Great Master’s work which embodies the talent, skills and training of the artist, getting excellent staff requires the same passion. The collector protects the painting with superior security and environmental methods. In your position as a manager of people you must do whatever you can to keep that priceless individual who works hard for your company and generates strong results. As an experienced business person, you have undoubtedly used, or are in the process of using,

Effective hiring tools to assemble what you believe to be the best staff, with exceptional skills and who fit well into your company’s unique culture. In a competitive, professional world, top performers are often made a variety of offers before they settle on one career position. But once they are working for you, they need reason and motivation to remain. The old adage “Look after the small things and the big things look after themselves” can easily apply to your workforce. “Look after your people and the business will look after itself”. It could not be more relevant today as when it was first said. Your staff is more than employees. They are valuable individuals with unique competencies and characteristics who require appreciation as much as a paycheck. In fact, people are the single most valuable element within your organization. Without them, you simply cannot do business or generate revenue. It is not just human resource companies that are in the people business – every business needs excellent people to prosper. Can you think of a Fortune 500 company that reached success without top performing people who have grown and developed over time with the company? Each individual who performs a function at your organization – no matter how junior or senior – are the puzzle pieces that fit together to create the larger picture of success. Missing one of those pieces puts a hole in the picture and stops your company being successful. To keep them, your company must develop a retention strategy with clearly defined goals. There are more opportunities for a talented person. It is of paramount importance to keep in mind that retaining the employees is very critical part of the HR Policy. There are many organizations which are looking for such employees. The researcher have decided to study the retention techniques at MAHAGENCO

RECOGNIZING THE PROBLEMS:-

A)    Who is ultimately responsible for staff retention?

Retention starts at the top. Sourcing, hiring and retaining motivated employees is the responsibility of the company’s governing board and Leadership Team. Getting and keeping good staff demands focused, formal and informal policies and procedures that make retention a prime management outcome. Managers need to appreciate staff every day and constantly work to keep them on board. The HR department alone cannot reduce turnover. For significant, positive change, company leaders must establish distinct retention processes and programs within all levels of an organization. After finding the right people, it is management’s primary role to take responsibility for the success of their employees including leading people towards performance goals and targets.

 B)   Why are people leaving?

If you are baffled as to why people are leaving your company, then take a look at a typical workplace scenario: Kevin had grown frustrated with his current employer. He felt he was very talented in his job and had won several key accounts as proof. Yet he hadn’t had a raise in two years, and his boss seemed incapable of saying anything nice about his work. Kevin was putting in a lot of overtime and was stressed from the huge amount of work he was expected to complete with decreasing resources. Past downsizings and employee reductions had left his department shorthanded, and yet workloads were rising rapidly. He wasn’t sleeping well, and his home life was suffering because he never had energy or time for life outside of work. Kevin had had enough and began interviewing with other companies. But when he was made an offer from a major competitor, he wasn’t sure what to do. In some ways he liked his existing job. He recalled having faith and being happy with the company before the downturn and he liked his fellow workers — although he knew that several of them were looking as well. He couldn’t help but think, maybe things would improve soon? This scenario has become increasingly familiar in companies in North America. The nature of work environments at all levels has become such that employees are faced with increased workloads, ever-stressed bosses, lack of incentives and fear of reductions. This has caused many talented employees to leave their current organizations. In most cases they are not blind to the fact that things might not be better elsewhere but they are hoping for some recognition and perhaps a bit of relief, even if temporary, from their current situation. Globalization and off-shoring have created a sense of discomfort and lack of loyalty to companies. Increased corporate recruitment efforts are aiming to snatch top performers and the natural shift of age dynamics means retirement levels will soon come in waves, leaving once unattainable roles open. Never has it been more critical to organize your company’s retention programs before high turnover takes hold and strongly impacts your business goals.

C) The High Cost of Employee Turnover:

The costs of high staff turnover can be incredible. Some of the substantial costs that occur when a person leaves your organization include the following:

a)    Recruitment costs from advertising to the time spent interviewing and sourcing.

b)    Training costs orientation materials and trainers’ time (ex. call center agents require on average 4 - 6 weeks or more of classroom training).

c)    Lost Productivity Costs a new employee operates between 25%- 50% of productivity levels for the first three months, not including the time spent by existing employees to assist.

d)    Lost sales costs the loss of business when the role is vacant.

According to advisor to entrepreneurial companies, figures can easily reach 150% of an employee’s annual salary. The cost will be significantly higher (200% to 250% of salary) for managerial and sales positions. With  direct financial costs of replacing staff include the loss of key skills, knowledge and experience, disruption to operations and the negative effect on workforce morale.

D) The Impact to Your Business:

Replacing staff is obviously expensive. But in addition a company’s reputation is also at stake. No one feels confident dealing with an organization which cannot hold onto their employees. It suggests instability, poor management and a lack of good planning. Regardless whether an individual is let go or leaves on their own accord, more often than not the employee leaves with a bitter taste in their mouth. That feeling is taken with them – along with the skills they learned while working for you – and their sentiments are often repeated to future employers and their personal network..

Lastly, constant high turnover creates unrest in present employees. Positions which are made vacant create increased workloads for other staff members – often outside their position profiles. The sense of instability and frustration can cause work backlogs and slow productivity. Yet, perhaps more fundamentally, the employee’s lack of faith in the organization when they see their co-workers departing will effect productivity work levels in unbelievably negative ways.

E) What are you doing about the problem?

Dr. Sullivan says that most firms have by now long forgotten any of the lessons they learned about retention during the 1990s. Many managers have grown arrogant because the last few years of high unemployment guaranteed that most employees would have to take whatever they dished out. Over 75% of firms have no distinct retention strategies and those with plans have let them fall into neglect.

                         The study proposed to MAHAGENCO for employee retention.