Summer Training Report

On
STUDY THE RETENTION POLICIES OF ERIC

Submitted in partial fulfillment of the requirement for the

award of degree of
Bachelor of Business Administration
Session 2015-2018

Under the supervision of: Submitted by:

MR. VIDHUR CHANDNA ARIHANT JAIN

( . ) BBA 3rd year

5874213

Panipat Institute of Engineering & Technology, Samalkha

Affiliated to Kurukshetra University, Kurukshetra

1
 DECLARATION

This is to certify that I ARIHANT JAIN student of Panipat Institute of Engineering &Technology studying in BBA
5th Semester, Roll No. 5874213 has prepared a project report entitled STUDY THE RETENTION POLICIES OF
ERIC for the partial fulfillment of degree of Bachelor of Business Administration from Kurukshetra University,
Kurukshetra.

I hereby declare that the project report submitted to the Kurukshetra University, Kurukshetra is a record of
an original work done by me under the guidance of Ms. MEENAKSHI SHARMA

The matter presented in this project work has not been submitted by me for the award of any Degree or
diploma/ associateship / fellowship & similar degree or any other institute

Name: ARIHANT JAIN

Roll No. 5874213

2
 ACKNOWLEDGEMENT

Gratitude of highest order is expressed to Mr. Yoginder Kataria (Head & Associate Professor) for
encouragement & support during my project. His care, endless support & trust motivate me for opportunity
to achieve. This project could not be completed without his insight & achieve.

I am neither expert nor a trend spotter. I am a management student with foundations of management
principles & theories who is keen in different industries, it's happening mainly in EQUITY RESEARCH AND
INVESTMENT CONSULTANTS (DELHI).

I am highly obliged to Mr. VIDHUR CHANDNA my prime internal guide for his invaluable support; guidance &
knowledge that he has shared with me thereby aiding me in making this project a success along with other
employees who provided their utmost working knowledge, which has broaden my area of interest &
benefited mostly in completing the project.

I am highly grateful to my project guide Ms. MEENAKSHI SHARMA, (Assistant Professor, PIET) for her
inspiring guidance & blessings for fulfilling the project report. I am very grateful to Ms. MEENAKSHI SHARMA
for his/her research advice, knowledge & many insightful discussion & suggestions.

Lastly I thank faculty & staff members of P.I.E.T, Panipat which gave me an opportunity regarding training
purpose & helped me in building some experience in my career.

ARIHANT JAIN

5874213

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 EXECUTIVE SUMMARY

Employee retention is a process in which the employees are encouraged

to remainwith the organization for the maximum period of time or until
the completion of theproject. Employee retention is beneficial for the
organization as well as theemployee. Employees today are different.
They are not the ones who dont havegood opportunities in hand. As
soon as they feel dissatisfied with the currentemployer or the job, they
switch over to the next job. It is the responsibility of theemployer to
retain their best employees. If they dont, they would be left with
nogood employees. A good employer should know how to attract and
retain itsemployees.Most employees feel that they are worth more than
they are actually paid. There isa natural disparity between what people
think they should be paid and spend in compensation. When the
difference becomes too great andanother opportunity occurs, turnover
can result. Pay is defined as the wages, salary,or compensation given to
an employee in exchange for services the employeeperforms for the
organization. Pay is more than "dollars and cents;" it alsoacknowledges
the worth and value of the human contribution. What people are paidhas
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 whereemployees are not able to use their full potential and
not heard and valued, theyare likely to leave because of stress and
frustration. In a transparent environmentwhile employees get a sense of
achievement and belongingness from a healthywork environment, the
company is benefited with a stronger, reliable work-forceharboring
bright new ideas for its growth

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 INDEX

Chapter number Topic Pages

CHAPTER 1 INTRODUCTION

1.1) Introduction to the Industry 1-9

1.2) Introduction to the Company

1.3) Introduction to the Topic 10-27

28-48

CHAPTER 2 LITERATURE REVIEW 49-51

CHAPTER 3 RESEARCH METHODOLOGY

3.0) Research methodology

3.1)Statement of the problem

3.2) justification of study

3.3) Objectives of the study

}}/
3.4) Scope of the study
\[]
3.5 ) Research design

3.6) Collection of data

52-56
3.7)Sources of data collection

3.8)Sampling technique

3.9)Analytical tool used in study

3.10) Limitations of study

CHAPTER 4 ANALYSIS & INTERPRETATION 56-67

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CHAPTER 5 FINDINGS,SUGGESTION& CONCLUSION

5.1) Findings 68-69

5.2)Conclusion

5.3) Suggestion

70

BIBLIOGRAPHY/ REFERENCES 71

(ONLY SINGLE FORMAT APA OR HARVARD

ANNEXURE

6
CHAPTER: 1

INTRODUCTION

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 1.1) Introduction to Insurance Industry

Overview

The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen today to secure themselves against loss
and disaster existed in primitive men also. They too sought to avert the evil
consequences of fire and flood and loss of life and were willing to make some sort
of sacrifice in order to achieve security. Though the concept of insurance is largely
a development of the recent past, particularly after the industrial era past few
centuries yet its beginnings date back almost 6000 years.

The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose
to 176 companies with total business-in-force as Rs.298 crore in 1938. The
Insurance Act 1938 was the first legislation governing not only life insurance but
also non-life insurance to provide strict state control over insurance business.

Some of the important milestones in the life insurance business in India are:

1818: Oriental Life Insurance Company, the first life insurance company on Indian
soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance
company started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz.
LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of
India.

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The General insurance business in India, on the other hand, can trace its roots to
the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the

general insurance business in India with effect from 1st January 1973.

With largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. Its a business growing at the rate of
15-20 per cent annually and presently is of the order of Rs 450 billion. Together
with banking services, it adds about 7 per cent to the countrys GDP. Gross
premium collection is nearly 2 per cent of GDP and funds available with LIC for
investments are 8 per cent of GDP.

Yet, nearly 80 per cent of Indian population is without life insurance cover while
health insurance and non-life insurance continues to be below international
standards. And this part of the population is also subject to weak social security
and pension systems with hardly any old age income security. This itself is an
indicator that growth potential for the insurance sector is immense.

A well-developed and evolved insurance sector is needed for economic

development as it provides long term funds for infrastructure development and at
the same time strengthens the risk taking ability. It is estimated that over the next
ten years India would require investments of the order of one trillion US dollar.
The Insurance sector, to some extent, can enable investments in infrastructure
development to sustain economic growth of the country.

India has come a full circle from being an open competitive market to
nationalization and back to a liberalized market again. Tracing the developments in

9
the Indian insurance sector reveals the 360 degree turn witnessed over a period of
almost two centuries.

Present Scenario

The Government of India liberalized the insurance sector in March 2000 with the
passage of the Insurance Regulatory and Development Authority (IRDA) Bill,
lifting all entry restrictions for private players and allowing foreign players to enter
the market with some limits on direct foreign ownership.

The opening up of the sector is likely to lead to greater spread and deepening of
insurance in India and this may also include restructuring and revitalizing of the
public sector companies. In the private sector 14 life insurance and 8 general
insurance companies have been registered. A host of private Insurance companies
operating in both life and non-life segments have started selling their insurance
policies..

Life Insurance Market

The Life Insurance market in India is an underdeveloped market that was only
tapped by the state owned LIC till the entry of private insurers. The penetration of
life insurance products was 19 percent of the total 400 million of the insurable
population. The state owned LIC sold insurance as a tax instrument, not as a
product giving protection. Most customers were under- insured with no flexibility
or transparency in the products. With the entry of the private insurers the rules of
the game have changed.

The 12 private insurers in the life insurance market have already grabbed nearly 9
percent of the market in terms of premium income. The new business premiums of
the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year.
Innovative products, smart marketing and aggressive distribution. That's the triple
whammy combination that has enabled fledgling private insurance companies to
sign up Indian customers faster than anyone ever expected. Indians, who have
always seen life insurance as a tax saving device, are now suddenly turning to the
private sector and snapping up the new innovative products on offer.

The private insurers also seem to be scoring big in other ways- they are persuading
people to take out bigger policies. Buoyed by their quicker than expected success,
nearly all private insurers are fast- forwarding the second phase of their expansion
plans.

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Major Insurance Players

Licenses have been issued for the following companies

ICICI Prudential Life Insurance Limited

ICICI Prudential Life Insurance Company Limited

HDFC Standard Life Insurance Company Limited

Birla Sun Life Insurance Company Limited

TATA AIG Life Insurance Company Limited

Max New York Life Insurance Company Limited

SBI Cardiff Life Insurance Company Limited

ING Vysya Life Insurance Company Limited

Bajaj Allianz Life Insurance Company Limited

MetLife Life Insurance Company Limited

Aviva Life Insurance Company Limited

AMP Sanmar Life Insurance Company Limited

Sahara India Life Insurance Limited

Sri Ram Life Insurance Limited

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Protection of the interests of policyholders:

IRDA has the responsibility of protecting the interest of insurance policyholders.

Towards achieving this objective, the Authority has taken the following steps:

1) IRDA has notified Protection of Policyholders Interest Regulations 2001 to

provide for: policy proposal documents in easily understandable language;

claims procedure in both life and non-life; setting up of grievance redressal

Machinery; speedy settlement of claims; and policyholders' servicing. The

Regulation also provides for payment of interest by insurers for the delay in

settlement of claim.

2) The insurers are required to maintain solvency margins so that they are in a

position to meet their obligations towards policyholders with regard to

payment of claims.

3) It is obligatory on the part of the insurance companies to disclose clearly the

benefits, terms and conditions under the policy. The advertisements issued

by the insurers should not mislead the insuring public.

4) All insurers are required to set up proper grievance redress machinery in

their head office and at their other offices.

12
The Authority takes up with the insurers any complaint received from the
policyholders in connection with services provided by them under the insurance
contract.

1.2) INTRODUCION TO COMPANY

EQUITY RESEARCH AND INVESTMENT

CONSULTANTS (ERIC)

Equity Research & Investment Consultants (ERIC) is India's one of few "Multi
Family Office Firm" founded by members having decade of experience in the field
of financial domain.ERIC was operates out of two offices at New Delhi &
Bengaluru (Soon to start operation in pune , Lucknow and Hyderabad).The
foundation of ERIC was guided by a single minded client centric approach.
Its model has been developed keeping in mind the very needs of a client. ERIC's
unique selling point is that it brings all the investment of client under one roof and
that being guided by Unique IPS ( Investment Policy Statment).In other words a

13
 ERIC treat every client as unique and provides solution based on client need ,
financial position and circumstances.

Over time the acceptance of ERIC's financial planning tools by private clients at
large and the goodwill that it has generated in the Private Wealth Industry
continues to be the source of energy for its growth. Today ERIC serves the needs
of Middle and Senior level professional, Entrepenuers , Businessman / Woman ,
Budding Investors.
Currently we are working closely with 330 HNI families and managing there
portfolio of insurance. mutual fund and real estate. The ratio of 25 clients per
adviser guarantees full focus and personalised touch to each clients from ERIC.

OUR DNA

Ethics || Stands for putting Clients Interest First

Responsibility || We stand for our Actions
Independence || Our advice not influenced by any outside forces.
Customer centric || Our solutions revolves around customer

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OUR MISSION

To put all the financial transactions of client at one place for easy access and
planning.

OUR VISION

To be most admired wealth management firm with best components

15
 PRACTICES WE FOLLOW

Our Core advisory practices falls under 6 areas:

WEALTH MANAGEMENTWEALTH MANAGEMENT

RETIREMENT PLANNING

WEALTH PROTECTION

ESTATE PLANNING

RISK PROTECTION AND INSURANCE

TAX PLANNING

16
 OUR ASSOCIATES

"Two Minds are better than one"

Since our Private Clients are unique and are in need for unique solution to meet
there specific goal and objective. at ERIC we serve the customer with the best
product and solution avalable in the market. We are preffered partner for various
financial conglomerates who are specialists in the areas of asset management,
Taxation, Investment Banking, Insurance. As of today we have several Domain
Partners whose expertise complements our own, and would be useful in designing
apt solution for the Client.

OUR CLIENTS

Diverse Clients
Old to Young5
Seasoned to First Time Investor
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 Businessmen and Service Professionals
Middle and Senior Management Professional

1.3) Introduction to the Topic

EMPLOYEE RETENTION

Employee Retention involves taking measures to encourage employees to

remain in the organization for the maximum period of time. It 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. 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. Retention of key employees is
critical to the long-term health and success of any organization. It is a known fact
that retaining the best employees ensures customer satisfaction, increased product
sales, satisfied colleagues and reporting staff, effective succession planning, and
deeply embedded organizational knowledge and learning. Employee retention
matters, as organizational issues such as training time and investment, 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.
Various estimates suggest that losing a middle manager in most organizations costs
up to five times his salary. Corporate is facing a lot of problems in employee

18
retention these days. Hiring knowledgeable people for the job is essential for an
employer, but retention is even more important than hiring.
There is no dearth of opportunities for a talented person. There are many
organizations which are looking for such employees. If a person is not satisfied by
the job hes doing, he may switch over to some other more suitable job. In todays
environment it becomes very important for organizations to retain their employees.
The top organizations are on the top because they value their employees and they
know how to keep them glued to the organization. Intelligent employers always
realize the importance of retaining the best talent. Retaining talent has never been
so important in the Indian scenario; however, things have changed in recent years.
In prominent Indian metros at least, there is no dearth of opportunities for the best
in the business, or even for the second or third best. Retention of key employees
and treating attrition troubles has never been so important to companies. In an
intensely competitive environment where HR managers are poaching from each
other, organizations can either hold on to their employees tight or lose them to
competition. For gone are the days when employees would stick to an employer for
years for want of a better choice. Now, opportunities are abound. Employees stay
and leave organizations for some reasons. The reason may be personal or
professional. These reasons should be understood by the employer and should be
taken care of. The organizations are becoming aware of these reasons and adopting
many strategies for employee retention. A strong retention strategy, therefore,
becomes a powerful recruitment tool.
Employee retention is a new era of modern technology and competitive
business environment. Organizations are continuously changing .this changing
environment is not only effecting the organizations but also the employees working
in it. In order to maximize organizational efficiency and for optimal utilization of
the resources, human resources must be managed properly. Human resource
19
management plays a vital role in this regard. They are responsible that how
employees are treated in the organization. Employee retention is a vital issue and
challenge to all the organizations now days. There are numbers of factors which
promote the employees to stay or leave the organization. It may be external factors,
internal factors and the combined effect of both. Human resource practices counts
a lot in this regard. It is the need of the hour that hr managers should identify the
needs of the employee and then devises the retention strategies. One strategy does
not fit to all as different individuals have different priorities. Hr professionals face
the vital challenge to retain talented employees. Employee retention is very critical
to the long term health of any organization. When an organization loses its talented
employee it lefts a negative impact on innovation, customer satisfaction,
knowledge gain during the past years and on the profitability of the organization
.more over replacing cost of another employee contribute a lot to the organization.

Employee retention is a vital issue and challenge to all the organizations

now days. There are numbers of factors which promote the employees to stay or
leave the organization. It may be external factors, internal factors and the
combined effect of both. Human resource practices counts a lot in this regard. It is
the need of the hour that hr managers should identify the needs of the employee
and then devises the retention strategies. One strategy does not fit to all as different
individuals have different priorities. Hr professionals face the vital challenge to
retain talented employees. Employee retention is very critical to the long term
health of any organization. When an organization loses its talented employee it
lefts a negative impact on innovation, customer satisfaction, knowledge gain
during the past years and on the profitability of the organization .more over
replacing cost of another employee contribute a lot to the organization. It is the
need of the hour that hr managers should identify the needs of the employee and

20
then devises the retention strategies. One strategy does not fit to all as different
individuals have different priorities. Hr professionals face the vital challenge to
retain talented employees. Employee retention is very critical to the long term
health of any organization. When an organization loses its talented employee it
lefts a negative impact on innovation, customer satisfaction, knowledge gain
during the past years and on the profitability of the organization. More over
replacing cost of another employee contribute a lot to the organization.

1.2 Definition of the study:

He explains the first key to success is indeed people. He fined the right
people first; the vision and strategy can follow. It is the people in organization,
who are the key to success.

The organizations want to hold the valued employees. Many approaches are
used in this regard. The one approach sees success in rewards the second in making
jobs more valuable (training and advancement).
- Jim Collins

The relationship between the employees job performance and their retention
also differ significantly with organizational culture values. The cultural effects
were stronger than the combined influences of the labour market and the new
employees demographic characteristics.
- John e. Sheridan

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1.3 Retain employees:
Motivation is necessary for work performance because, if people do not feel
inclined to engage themselves in work behavior, they will not put in necessary
efforts to perform well. However, performance of individual in the organization
depends on variety of factors besides motivation. It is therefore desirable to
identify various factors. For instance, employees knowledge and skills are
important performance drivers. Another factor is the companys ability to retain its
employees with attractive benefit packages. Motivation is a prominent tool to
retain employees with greater compensation packages.

Companies have now realized the importance of retaining their qualitative

workforce and retaining their quality performers, contributes to productivity of the
organization and increase morale among employees. Middle and top management
plays a vital role in the people dimensions of the organization. The organization
culture in a long run converts to organizational ethics and people feel reluctant to
leave by making it as a stepping stone when appreciation and rewards in form of
compensation awaits them in comparisons to the market trend. In view of the
description given it is necessary to examine the facts as how to retain them. There
are four basic factors that play an important role in increasing employees
retention, include: salary and remuneration, providing recognition, benefits and
opportunities for individual growth as presented in figure 1.1. But are they really
positively contributing to the retention rates of the company? Salary these days
hardly reduce turnover. Todays employees look beyond money factor. In order to
ensure that organizations are behaving more customer-oriented, they need to be
equally employee centric in order to match the intellectual property and their
products and services.

22
1.4 Importance of the study:

Employee Retention refers to the techniques employed by the management

to help the employees stay with the organization for a longer period of time.
Employee retention strategies go a long way in motivating the employees so that
they stick to the organization for the maximum time and contribute effectively.
Sincere efforts must be taken to ensure growth and learning for the employees in
their current assignments and for them to enjoy their work.

Let us understand why retaining a valuable employee is essential for an

organization:

Hiring is not an easy process: The HR Professional shortlists few

individuals from a large pool of talent, conducts preliminary interviews and
eventually forwards it to the respective line managers who further grill them
to judge whether they are fit for the organization or not. Recruiting the right
candidate is a time consuming process.
An organization invests time and money in grooming an individual and
makes him ready to work and understand the corporate culture: A new
joinee is completely raw and the management really has to work hard to
train him for his overall development. It is a complete wastage of time and
money when an individual leaves an organization all of a sudden. The HR
has to start the recruitment process all over again for the same vacancy; a
mere duplication of work. Finding a right employee for an organization is a
tedious job and all efforts simply go waste when the employee leaves.

23
 When an individual resigns from his present organization, it is more
likely that he would join the competitors: In such cases, employees tend to
take all the strategies, policies from the current organization to the new one.
Individuals take all the important data, information and statistics to their new
organization and in some cases even leak the secrets of the previous
organization. To avoid such cases, it is essential that the new joinee is made
to sign a document which stops him from passing on any information even if
he leaves the organization. Strict policy should be made which prevents the
employees to join the competitors. This is an effective way to retain the
employees.

The employees working for a longer period of time are more familiar
with the companys policies, guidelines and thus they adjust better:
They perform better than individuals who change jobs frequently.
Employees who spend a considerable time in an organization know the
organization in and out and thus are in a position to contribute effectively.
Every individual needs time to adjust with others: One needs time to
know his team members well, be friendly with them and eventually trust
them. Organizations are always benefited when the employees are
compatible with each other and discuss things among themselves to come
out with something beneficial for all. When a new individual replaces an
existing employee, adjustment problems crop up. Individuals find it really
difficult to establish a comfort level with the other person. After striking a
rapport with an existing employee, it is a challenge for the employees to
adjust with someone new and most importantly trust him. It is a human

24
 tendency to compare a new joinee with the previous employees and always
find faults in him.
It has been observed that individuals sticking to an organization for a
longer span are more loyal towards the management and the
organization: They enjoy all kinds of benefits from the organization and as
a result are more attached to it. They hardly badmouth their organization and
always think in favour of the management. For them the organization comes
first and all other things later.
It is essential for the organization to retain the valuable employees
showing potential: Every organization needs hardworking and talented
employees who can really come out with something creative and different.
No organization can survive if all the top performers quit. It is essential for
the organization to retain those employees who really work hard and are
indispensable for the system.

25
 CHAPTER 2
LITERATURE REVIEW

Muhammad Hassan (1): Employee retention is the vital challenge in all

organizations. This papers focus on one industry that is the leather industry of
Pakistan which is facing the same problem of retention of employees due to many
reasons. As Leather industry is the third largest export earning sector in Pakistan so
these reasons are discussed in detail. The turnover rate in Leather Industry of
Pakistan is around 25 30% annually, its observed that mostly second line
managers change their jobs for high salaries offer, recognition, authority and also
to seek for more knowledge and to get more competitive edge in terms of
processing; In tanneries its critical and alarming because of the process and article
secrecy. In order to achieve competitive advantage, maximum utilization of
resources and to get organizational efficiency employees must be retained in a true
spirit in order to cope with all these conditions. In this paper the authors tried to
know the reasons behind this dilemma that how employees can be retained and
some suggestions were given to deal with it. One edge of this paper is that one of
the author belongs to the same industry i.e. leather industry.

Tammy C. Morse (2): Humor has been in existence since the beginning of time.
Some even claim that humor is the best preventive medicine for stress management
and good health. If hum or is good for living productively, can it also be good for

26
employee retention and/or employee satisfaction? The purpose of this conceptual
and practical paper is to explore the extent to which the use of appropriate humor
relates to employee retention and satisfaction, which can enhance the commitment,
cohesiveness and performance of a companys workforce. Another objective is to
explore and emphasize the importance of humor and employee retention in the
workplace. The paper provides practical recommendations for todays managers
and offers a focus for future researchers to empirically test the use of humor and its
relationship to employee retention and employee satisfaction.

Muhammad Umer (3): Investigate the impact of variables (career development,

supervisor support, work environment, work life balance) on employee retention.
A total of 50 interviews were taken from managers of different BPO organizations
in Pakistan. Graphical Analysis is indicating that these variables have significant
and positive impact on employee retention. Very less research have been done
about employee retention in business process out sourcing, especially in Pakistan.
So, these finding will provide some insights to BPOs managers to make policies
about employee retention in Pakistan.

Ruslan Gurtoviy (4): We model deferred compensation as a share of an uncertain

future profit granted by a nancially constrained employer to her employee in
mutual agreement. Deferred compensation serves as a retention mechanism,
helping the employer to avoid bankruptcy. The optimal combination of cash and
deferred payments that a firm can use to retain qualified personnel depends on the
cost of new credit and bank- ruptcy risk: If interest rates are greater (smaller) than
the ex-ante odds of bankruptcy, the employer will to defer compensation (pay in
cash) to the employee. The employee always improves his position in the labor
market if imminent bankruptcy is avoided.
27
Klara Nelson (5): Illuminates significant relationships between three major
knowledge management (KM) design dimensions and the perceived ability of 150
organizations to retain their knowledge workers. Knowledge worker retention is a
critical challenge for todays organizations as they face increasing global
competition with its demands for even more such workers, while dramatically
shifting workforce demographics hasten their exit. KM design initiatives that
accelerate knowledge creation, acquisition, and particularly knowledge capture,
sharing and retention, are receiving unprecedented levels of investment as a result.
While many factors impact organization financial performance, this research
indicates that successful knowledge worker retention is significantly related with
higher reported financial performance.
The implications of these results are noted.

Dr. Nafees A. Khan (6): Retention of Key employees is critical to the long term
health and success of any organization. It is a known fact that retaining the best
employees, ensures customer satisfaction, increased product sales, satisfied
colleagues and reporting staff, effective succession planning and deeply imbedded
organizational knowledge and learning. Now days companies are struggling to
retain employees. As employee attrition has continuously been on increase, and its
coeval phenomenon of employee retention has become an evolving concept. The
ultimate solution to the ever increasing employee attrition is to increase employee
engagement/ involvement in the organizations.

Atif Anis (7): Employee retention is a critical aspect for every company regarding
competitive advantage because human resource is the most critical asset of todays
modern world. Other resources can be arranged effortlessly but to get efficient and
28
retain talented human capital is the most difficult task. Therefore, organizations are
now more focused towards employee retention. Organizations use different HR
techniques for retention. Our main emphasis is on compensation packages after
employee training and development practices for retention purposes. We will also
see how a relaxed work environment will help in the retention of employees. For
this purpose, we conducted this study in Lahore and collected data from corporate
groups. The numbers of respondents in our study are 330. For analysis we used the
structural equation modelling technique with the use of AMOS 18.0. In this study,
we used compensation as the mediating variable between the training and retention
of employees. Results reveal that retaining employees long term, after their
training and development has been completed, without increasing their
compensations is not as favourable as when compensation is increased to reflect
the completion ability to apply their field related skills and capabilities.

Ijaz-Ur-Rehman (8): Comprehensive survey to date of labour turnover and

employee loyalty in New Zealand. The widely held view that the New Zealand
worker has become more mobile in the contemporary labour market is shown to be
somewhat simplistic. Instead, the picture is one of increasing employment stability
as people get older and as they become better paid, lending support to the idea that
there are identifiable developmental stages affecting the careers of both men and
women. In terms of the reasons for employee turnover, the study demonstrates that
motivation for job change is multidimensional: no one factor will explain it. While
interesting work is the strongest attractor and retainer in the labour market, the
results also show that there is a strong employee expectation that management
should make personnel decisions based on merit, demonstrate that extrinsic
rewards (such as pay, promotion and security) play a role in both employee
retention and turnover, lend support to the idea that there is growing concern with
29
worklife balance, and underline the retention value of good relationships with co-
workers and supervisors. The results demonstrate that employee turnover is not
riskless for individuals: some benefit a lot (for example, in finding worthwhile
promotion), while others do badly out of it. The study offers suggestions for
improving retention in firms with dysfunctional employee turnover.

Malvern W. Chiboiwa (9): Worldwide, a number of factors have been attributed

to the increase in the level of employee turnover. The way people are paid,
recognised and achieve salary advancement are critical factors in attracting,
retaining, and motivating employees. The challenge for most organisations today is
the formulation of an effective employee retention strategy that will help in
retaining employees that are considered critical in attaining organisational goals.
The prevailing hostile economic environment in Zimbabwe has made the
formulation of a realistic retention strategy particularly difficult for managers in
the face of an ever changing economic environment that is characterised by hyper
inflation with a depleted labour market occasioned by skill emigration. This
research was a case study of a major private sector medical laboratory company in
Zimbabwe and was aimed at achieving the following objectives: identify the
causes of employee turnover in the organisation, examine the current retention
practices in the organisation, establish the effectiveness of the practices, and
attempt a workable retention practice that could reduce the high rate of employee
turnover in the organisation. Qualitative research design was employed using
structured interviews as well as administering research questionnaire to all
category of employees. The total population of the organisation nationwide
comprised of 3820 employees with a sample size of 2240 respondents. The result
of the research showed that labour turnover is higher amongst non-managerial
employees. Similarly, majority of the employees would soon quit the organisation
30
and lastly, the high rate of employee turnover in the organisation is largely
attributed to poor reward system administration.

Ward Whitt (10): A mathematical model is developed to help analyze the Benet
in contact-center perfor- mance obtained from increasing employee (agent)
retention, by increasing agent job satisfaction. The contact-center \performance"
may be restricted to a traditional productivity measure such as the number of calls
answered per hour or it may include a broader measure of the quality of service,
e.g., revenue earned per hour or the number of problems successfully resolved per
hour. The analysis is based on an idealized model of a contact center, in which the
number of employed agents is constant over time, assuming that a new agent is
immediately hired to replace each departing agent. The agent employment periods
are assumed to be independent and identically distributed random variables with a
general agent-retention probability distribution, which depends upon management
policy and actions. The steady-state staff experience distribution is obtained from
the agent-retention distribution by applying renewal theory. An increasing real-
valued function specifies the average performance as a function of agent
experience. Convenient closed-form expressions for the overall performance as a
function of model elements are derived when either the agent-retention distribution
or the performance function has exponential structure. Management actions may
cause the agent-retention distribution to change. The model describes the
consequences of such changes upon the long-run average staff experience and the
long-run average performance.

Aaisha Arbab Khan (11): Identify factors reducing employee turnover and to
explore the impact of retention strategies on workforce. Serena Hotel, Faisalabad,
Pakistan was selected as sample for this study because of its uniqueness in
31
practicing modern HR techniques. The research was based on case study method;
for this purpose thirty surveys and six face to face interviews with key personnel
were carried out. A total of 36 respondents were selected within the population of
285. Variables like HR strategies, work place environment, training and
development, and compensation were found more effective in employee retention
at Serena Faisalabad. The study revealed that for higher control over retention,
management must work over monetary rewards and career progression. Overall,
current HR practices at Serena may be benchmarked by others to decrease
turnover.

William A. Brown (12): Non-profit organizations rely on the mission to attract

resources and guide decision making. Increasingly, mission statements are
recognized as a strong management tool that can motivate employees and keep
them focused on the organizations purpose. This research investigated employee
attitudes toward the mission in a youth and recreation service organization. In
general, the employees expressed positive attitudes toward the organizations
mission, and those attitudes were related to employee satisfaction and intentions to
remain with the organization. However, dissatisfaction with pay tended to override
employees mission attachment as explanation of why they may leave the
organization. The implication is that mission might be salient in attracting
employees but less effective in retaining them.

Claire Crutchley (13): When companies pay bonuses to employees of bankrupt

companies to stay with the firm, popular press often describes this as greedy
managers expropriating the last bit of wealth from shareholders. In addition,
research has found that, on average, retaining pre-bankruptcy management has
negative consequences. Nevertheless, the incidence of these retention plans has
32
been growing. In this paper, we study key employee retention plans (KERPs) and
the corporate environment which allows the payment of a KERP. We find no
evidence that the companies that declare KERPs have poor corporate governance
or overpay top executives. Instead, we find these companies are very similar to
non-KERP bankrupt companies, both before and in resolution of bankruptcy. The
main difference between the two samples is that KERP companies are larger and
from industries that are more employee-driven, such as wholesale and retail. We
find that KERPS do not speed up the bankruptcy process, but instead companies
with KERPs spend more time in bankruptcy.

Muhammad Asif Khan (14): Establish link between perceived human resources
internal service quality practices with employee retentions in mediating
environment of employee job satisfaction. This study was conducted in twin cities
of Rawalpindi and Islamabad. For the analyses of research work, the data has been
collected about the employees of public and privatized banks employees. A total
of 550 copies of the questionnaire were distributed to different bankers of selected
areas and 400 copies of the same were collected back. The study finds that
employee selection, employee training and development, work design, job
definition employee rewards and compensation report high, positive and
significant dimensionality to internal service quality in human resource
management. The study further finds that internal service quality in human
resource has positive and significant effect on employee job satisfaction and
employee job satisfaction has positive and significant effect on employee retention.
Based on findings of the study that the human resource development departments
should review and enhance the motivation, training, and retention of good
employees and that employee should support the concept of the ISQ. The
employees selection and their rewards and recognitions, their training and
33
development, work design and job definition all are the most important human
resource management areas in enhancing the employees job satisfaction and the
retention of prospective employees.

Maya Michielsen (15): In this continuously changing contemporary economy,

companies have to be able to anticipate technological innovations and to compete
with other companies worldwide. This need makes important a companys ability
to evolve through its employees learning and through continuous development.
Securing and retaining skilled employees plays an important role in this process,
because employees knowledge and skills are central to companies ability to be
economically competitive. Given that employee retention is very important for the
functioning and competitiveness of a company, this study focuses on the
organisational and personal factors that influence employee retention. A special
interest is taken in employees learning, because this is seen as a retention
supporting activity. A questionnaire was administered to 349 employees, and 11
employees were interviewed. The interviews are used to illustrate and
contextualise the quantitative results. The results show a large positive contribution
of appreciation and stimulation of the employee to employee retention. This result
is consistent with findings of earlier research. However, the retention benefits
arising from personal development offer new possibilities when attempting to
enhance employee retention. This study also showed that individual differences
influence employee retention. Leadership skills and seniority have a positive
relationship with employee retention and the level of readiness and initiative
regarding learning is negatively related to retention.

Zhang Weiwei (16): Understand the reasons of foreign teachers who are working
at a demonstration school in terms of retention. A qualitative research approach
34
was applied to answering the research questions proposed for this study,
employing a Phenomenological strategy. The setting involved purposive sampling
that was used to identify 7 participants who had experienced this phenomenon.
Interview data, document reviews were integrated to answer the two research
questions. The participants were interviewed by using an in-depth semi-structured
interview. All the perceptions were interpreted into nine categories, they were: (1)
Reason for teaching career, (2) Life experience, (3) Work environment, (4) Work
experience, (5) Reason for retention, (6) Reason for leaving, (7) controversial FTS
position, (8) Problem issues, (9) Future plan. The important findings of this study
regarding employee retention are their reasons for retention and leaving.
Concerning the retention issue, the reasons mainly conclude enjoying teaching,
good vacation, good salary, and pleasant work environment as well as some
personal reasons. At the same time, the potential leaving reasons refer to
dissatisfaction with management, communication problems in terms of cultural
understanding, and personal reasons for going back to their countries.

John E. Sheridan (17): Retention rales of 904 college graduates hired in six
publics accounting firms over a six-year period. Organizational culture values
varied significantly among the firms. The variation in cultural values had a
significant effect on the rates at which the newly hired employees voluntarily
terminated employment. The relationship between the employees' job performance
and their retention also varied significantly with organizational culture values. The
cultural effects were stronger than the combined exogenous influences of the labor
market and the new employees' demographic characteristics. The cultural effects
are estimated to have resulted in over six million dollars' difference in human
resource costs between firms with different cultural values. Implications for
research on person-organization fit are discussed.
35
Shelly Mohanty (18): Employee retention is arguably the biggest issue facing
corporate leaders as a result of the shortage of skilled labour, economic growth and
employee turnover. Hiring knowledgeable people for the job is essential for an
employer, but retention is even more important than hiring. Employee retention
involves taking measures to encourage them to remain in the organization for the
maximum period of time. The key to retention is to understand the employees
expectations and achieve proper alignment of their expectations with those of the
organization.

Michael J. Howard (19): A content model of 12 retention factors is developed in

the context of previous theory and research. Coding of open-ended responses from
24,829 employees in the leisure and hospitality industry lends support to the
identified framework and reveals that job satisfaction, extrinsic rewards,
constituent attachments, organizational commitment, and organizational prestige
were the most frequently mentioned reasons for staying. Advancement
opportunities and organizational prestige were more common reasons for staying
among high performers and non-hourly workers, and extrinsic rewards was more
common among low performers and hourly employees, providing support for
ease/desirability of movement and psychological contract rationales. The findings
highlight the importance of differentiating human resource management practices
when the goal is to retain those employees valued most by the organization.

William R. Meek (20): Uses a sample of 47 high-growth small firms to examine

the understudied topic of employee retention. We found that firms reporting very
low annual voluntary turnover (0-2%) rates engaged in creating a positive work
environment, provided employees more freedom and flexibility, offered ample
36
employee involvement and opportunities for growth; were clear about the
processes associated with compensation and benefits, and frequently
communicated with and provided assistance to their employees. Firms reporting
turnover higher than 10% for the past year described their retention practices in
much diminished frequency and richness along these same dimensions. Given that
these firms were all part of a pool of 77 high growth small companies (over $1
million annual revenue, less than 12 years old and compound annual growth
greater than 15%), retention of intellectual capital would be a prime issue. Industry
differences among the companies are explored and theoretical and practical
implications are discussed.

37
 CHAPTER - 3
RESEARCH METHODOLOGY

3.1) Introduction:
Research is the process of systematic and in-depth study or search for any
particular topic, subject or area of investigation, backed by collection, compilation,
presentation and interpretation of relevant details or data. Research methodology is
a way to systematically solve the research problem. It may be understood as a
science of studying how research is done scientifically.

Research may develop hypothesis and test it. In it we study the various steps that
are generally adopted by the researcher in studying his research problem along
with the logic behind them.

3.2) OBJECTIVE OF STUDY

To study about the employee retention of Equity Research & Investment
Consultants,Delhi.
To ascertain the problems of the employee in the organization.
To offer suggestion the employee retention of Equity Research &
Investment Consultants ,Delhi.
To decide about various recruitment and selection schemes.

38
 To study various factors that motivate the employees and retain them for
long duration.
To know the importance attached to employee retention in todays corporate
world.
Strategies employed by the company to improvise on the rate of employee
turnover rates.
General problems faced by the companies while practicing employee
retention.

3.3) Scope Of The Study

It is not about managing retention.It is about managing people.If an organization
manages people well,employee retention will take care of itself. Organiation
should focus on managing the work environment to make better use of the
available human assests. People work for an organization which provides
Appreciation for the work done
Ample opportunities to grow
A friendly and cooperative environment
A feeling that the organization is second home to the employees
The researcher attempts to determine employee's retention in the Equity
Research & Investment Consultants ,Delhi.. This study is designed to explore the
main retention factors for Equity Research & Investment Consultants ,Delhi.
employees. The researcher also made an attempt to understanding about
Employee's satisfaction and in Equity Research & Investment Consultants ,Delhi..

39
3.4) BACKGROUND OF THE STUDY
The retention of employees has been shown to be significant to the
development and the accomplishment of the organizations goals and objectives.
Retention of Employees can be a vital source of competitive advantage for any
organization. This study attempted to explore the main factors that contribute to
employee Retention existing in the private sector in Kuwait. The next paragraphs
discuss the Background of the study by clarifying the theoretical framework for the
main Problems with employee retention.

Today, changes in technology, global economics, trade agreements, and the

like are directly affecting employee/employer relationships. Until recently, loyalty
was the cornerstone of that relationship. The loss of talented employees may be
very Detrimental to the companys future success. Outstanding employees may
leave an Organization because they become dissatisfied, under paid or unmotivated
(Coff 1996), and while trying to retain employees within the organization they may
present other challenges as well. They may demand higher wages, not comply with
organization practices, and not interact well with their co-workers or comply with
their managers directions.

3.5) Research design:

A research design is purely and simply the frame work plan for a study that
guides the collection and analysis of a data. In this study the researcher has adopted
descriptive research design.

40
Descriptive research design:

It includes surveys and fact finding enquires of different kinds. It simply

describes something such as a demographic of employees. It deals with description
of the state of offers as it is and the researchers have no influence on the
respondents.

3.6) Data collection:

Data collection is one of the most important aspects of research. For the
success of any project accurate data is very important and necessary. The
information collected through research methodology must be accurate and
relevant.

Methods of data collection:

Primary Data
Secondary Data

Primary Data:

Data collected by a researcher is known as primary data. It is collected

by a person for his own use obtained from findings. This is considered as
firsthand information. This is that data which is collected by us to meet our
own specific purpose. The data is collected by the means of questionnaire
filled in by the employees at different posts of Nagpur area office. This
method of data collection is very popular particularly in big organizations.

41
 Secondary Data:

Secondary data means data that are already available i.e., they refer to
data which has already been collected and analyzed by someone else. This
type of data information can also be used by the researcher for his use as
second hand information sources through which secondary data can be
collected. Secondary data may either be published data or unpublished data.

The research approach:

Survey Method

The research instrument:

Questionnaire

The respondents:

The employees of the organization.

Sampling:

It is the process of selecting representative subset of a total population for

obtaining data for the study of the whole population the subset is known as sample.
The sample size is selected for the study 100 employees. The techniques of
sampling unit in this study are convenience sampling.

Technique of sampling:

In this method the sample units are chosen primarily on the basis of the
convenience to the researcher.

42
Statistical tools used:

A. Simple percentage analysis

B. Chi-square

A. Simple percentage analysis:

Simple percentage can also be used to compare the relationship

distribution of two or more items. For calculations the simple percentage the
following formula used.

Percentage of the respondents = Number of respondents/Total

respondents*100

B. Chi-square analysis:

Chi-square is anon parametric test. The chi-square method is the

application of testing the significance different between observed and
expected values.

For calculating the value of chi-square test, the following formula used:

= [(0-E) /E]

E=Row total*column to/Grant total

Degree of freedom=(R-1) (C-1)

Where as

O-observed frequency

E-Expected frequency

P-Number of rows

43
 CHAPTER-4

DATA ANALYSIS AND

INTERPRETATION
Analysis:

Analysis is classifying and rearranging the raw data to arrive at meaningful

interpretation.

Interpretation:

Interpretation is essential because it brings the outcome of the analysis into

forefront.

It is through interpretation that the researcher can understand the abstract

principles that work beneath his founds. Through this he can linkup the same
abstract with those of other studies having the same abstract principle.
Interpretation leads the establishment of explanatory concepts that can serve
as a guide for tutor research studies.
Research can appreciate only through interpretation which can make other to
understand of researcher finding a per project study. The data collect are

44
 analyzed sing simple percentage tool as the against the total number of the
respondents.
The content analysis presented in the form of tables and charts.

TABLE NO: 4.1

AGE OF THE RESPONDENTS

S. No Age No of Respondent Percentage

1 20 Years to 25 years 20 20
2 26 Years to 30 years 33 21
3 31 Years to 35 years 27 23
4 Above 36 Years 7 7
Total 100 100


INTERPRETATION:
The above table shows that 25 percent of the respondents are between 20years to 25years
of age, 38 percent of the respondents are between 26years to 30years, 32 percent of the
respondents are between 31years to 36years and 5 percent of the respondents are between
above 36years.

45