THE SHARP CHALLEGE FOR TRADERS-KNOWLEDGE RETENTION

Trade and the motive of traders is not the constant for all the types of market
prevailing globally. The developing countries has different trade strategy where as the
developed countries has also acquired superior strategy for their dynamic growth. The
measuring scale i.e. economy of a nation clearly explains the growth of trade in a
particular nation. Trade practices are no more similar for all the players prevailing in
the market in the same way driving workforce for fulfilling their need is also not an
constant one. Globalisation and the stiff competition have challenged every
organisation to adapt unique business model for existence and growth in the future.
The quality of workforce and the quantity is not very much constant now a days
because of penetration of various companies in a single nation. The trade completion
along with the knowledge retention has placed tough barriers for companied through
out the world. The scenario of revolution in the various fields of business has already
taken the speed in the micro as well as the macro environment, which serves an
indication towards the utilization of skills. Organizational plan and the design to
approach the job is important for every organizations to be in touch with their own
ethics. The manpower requirement is a big deal for every organization and the
planning phase to gain the desired manpower in the particular stipulated time.

From the technical aspect it is clear that the leading countries of the world
create new innovations to fetch the market strategy for their growth. The investment
of a particular company towards a product starting from its planning to sell in the
market is associated with the human techniques. The cost of employee turnover is
from 40% - 100% of an employee's annual salary, when we consider productivity,
recruiting costs, reduced efficiency in transition and time.1 The strategic management
techniques are not only useful for the organisations to make present changes but also
to invent new strategies for the future. The use of talents becomes the primary
concern now days to get the remarkable identity. Outsourcing the talents and getting
the best of it has a challenge for every business organization. The demand for talents
1
Collected from the article Talent Retention "Human Asset - A valuable Asset" by N. Viswanadham.
www.indianmba.com/faculty_column
in the IT, FMCG, SERVICE, MANUFACTURING SECTOR, RESEARCH
ORGANISATIONS is growing due to the rational increase of consumers and
awareness among the consumers to know about the products. Many multinational
companies have comedown to India to share their innovations and to share their
business. The demographic profile is the key factor for the business organizations to
catch the essence of the consumers and to lunch their products in an innovative way.
Indian resources and the projects held by Indian companies for making dynamic
changes will become a dream if there is adequate dearth of knowledge. Each and
everyday good employees quit their employees for better jobs. The challenge is not
only to attract the best employees but also to retain them for the future not only for the
same task but also can be used for similar type of job without loosing them. Rising
opportunities for monetary payback, carrier development, way of life decisions, job
changing, unbalanced work life, pitiable mentoring, future growth, stress and other
benefits are some factors which influence an individual's decision to carry on or give
up.
 The mounting economy of India has given a chance to explore the talents by
feeding them the appropriate knowledge of business. India is currently the ninth
largest retail market in the world and the Indian retail market is pegged at US$ 350
bn. In the developed countries, the retail industry has urbanized into a full-fledged
industry where the organised sector accounts for almost 80% of the total retail trade.
In contrast to this, in India organised retail trade accounts for nearly 3% of the total
retail business. 2 The wider prospect based on retail industry is that there is expected
growth rate at a CAGR40% in the coming years 2010. It is expected to grow to US$
22 bn.3 High Competition in this sector is based upon many factors like assortment,
products, advertising, price, quality, quantity, service, location, reputation, credit and
availability etc. New entrants are expected to further intensify the competition. The
other players also have taken the advantage to crack the Indian retail sector. The retail
sector is booming and has given a specific way for retail business by considering the
retail management practices. The upcoming retail sector WALL MART has kept the
eyes wide open for other entrepreneurs who are in the same sector. Growth in Indian
retail has been driven by the country's economic fundamentals over the past few
years. Economic growth, accretion to income levels of the rising Indian middle class
and the consequent rise in disposable incomes will fuel the growth of the retailing
sector. Improved retail services, easy financing options and changing consumers’
mindset regarding credit will give further fillip to retail industry. The search has
already started by many retail organizations to utilize the retail management talents
for completion. Inspite of retail sector there is also a huge demand of employees for
various projects acquires by IT companies. The major it players of India like Infosys,
Wipro, TCS, Cognizant, Microsoft, Adobe, Accenture etc. Ever-increasing opposition,
pressure on billing rates and increasing commoditisation of lower-end function
development and maintenance services are among the key reasons forcing the Indian
software industry to make a fast move up the software value chain. The software
services segment of the industry continues to grow by leaps and bounds. However,
growth in the domestic market has been relatively staid. Given that India is among the
fastest-growing economies in the world and the burgeoning IT budgets of India Inc.,
focusing on the domestic market will without doubt be a chance to take
2
The figures shown are being collected from www.equitymaster.com. Based on retail sector data.
3
The figures shown are being collected from www.equitymaster.com. Based on retail sector data.
benefit of. Competition in the IT sector is global in nature and stretches across
boundaries and geographies because of the global players’ participation. It is likely to
build up due to the attempted replication of the Indian offshoring model by MNC IT
majors for forward expansion. From the wider prospect the it industry is growing at a
rate CAGR of 6%.4 The IT services and ITES-BPO is expected to grow faster as
compared to the other segments of IT sector. The offshore outsourcing story is
expected to continue to play out, as firms look for superiority work done at most
favourable cost. IT being a resource-intensive industry, human resources will play a
major role in times to come. Attrition rates will have to be managed by the companies
In order to preserve margins, firms will have to maintain workforce at optimum level,
improve utilization rates and control selling, general and administrative expenses.
Though the major challenge for every IT industry is not till now stable due to the
employee movement from one IT industry to the other in their due course of time for
fulfilling their own requirements. The monetary notion that has developed a huge gap
among the employees if we compare the employees of IT industry with any other
industry. Inspite of these sectors the attrition rate is less in public sector undertaking
organisations and government organisations. The intangible benefits that is attracting
the employees to retain themselves in that organisation.

4
Collected from sector wise report of www.equitymaster.com
 Employee retention is an important part for every organisation. The two things
which are the company’s reputation and productivity for which organisations stick
themselves for retaining employees. By maintaining organisations reputation is the
best possible way to attract employees to work for them. An organisation with good
employees increases the chances of maintaining reputation in the market. The self
driven personality towards work and to improve others qualities by good negotiation
help to increase productivity and improve quality of work life. That increases total
productivity of the organization.

The rapid business institutional growth has proved that the there is no shortage
of talents for operating business in this scenario. The scenario of revolution in the
various fields of business has already taken the speed in the micro as well as the
macro environment, which serves an indication towards the utilization of talents. The
talents are being pulled by the organizations for existence in this competitive field.
The young talents may get chance to share their decisions as they concerned more
with this generation. In a best possible way talent can be retained by business growth.
Therefore Retaining talent and growing business are interdependent. Organizational
Growth is therefore a must.

Indian workforce presently molded to a multitask oriented which fulfills the

requirement of many multinationals of our country. A few Indian companies will have
established brand equity in the US on par with US companies because of the
improved quality and the demand. Employing high quality, local staff for certain
customer-interface activities to give a local face in the markets will be changed.
Creating physical and technological infrastructure in India and overseas adapted by
the companies will retain more employees which will reduce the risk up to a certain
extent. Growth of organization plays a vital role depending upon which one can set
his goals in the field of business, where there is severe pull and push effects going on
for capturing the talents and utilizing the knowledge. In the coming years 2008
onwards their may be huge crisis of real talents because of the changing awareness
and willing to adapt new things from the consumer side. I think, it’s important to
know about all the organizations and their business so, that they can make them
efficient enough according to organizations requirement.

NAME OF COMPANY NUMBER OF EMPLOYEES BY 2007

TCS 1082295
WIPRO 821226
SATYAM 344057
INFOSYS 886018

5
www.desihotmasala.com
6
www.desihotmasala.com
7
http://economictimes.indiatimes.com
8
www.ciol.com
 High attrition is observed in middle and senior level positions, which is
damaging the performance rate of software industry. It is a known fact among Indian
IT professionals that only minority % of employee stick to a company for more than 2
years! Majority of them keeps altering job and aims to earn more salary.Most of the
IT companies recruiting science graduates to overcome this problem by training them
properly which is costly and time consuming. The problem has captured the Indian it
giants-WIPRO, TCS, SATYAM and INFOSYS. These four companies are facing high
attrition rates. These companies are facing problems in retaining their employees
though there are various schemes available in their company which are in favor of the
employees.

Attrition rates-2006-20079

Wipro 16.2%
Satyam 14.9%
Infosys 13.7%
TCS 11.5%
9
http://retention.naukrihub.com/attrition-rates.html

20.00%

15.00%
WIPRO
SATYAM
10.00%
INFOSYS
TCS
5.00%

0.00%

[ATTRITION GRAPH]
Options for employee retention-competitive strategies
There are many competitive strategies drawn by many analysts in this deep concern
regarding the retention and benefit schemes. The strategic model is self explanatory
and it is essential for understanding the basic strategic model by which nature of
orientation of employees can be understood easily in a best possible way.

Through the growing business: showing the growing business and their. A future
plan regarding growth is an important tool for the employees to retain their attention
towards the organisation. The facts and figures of past and future that the organisation
is going to achieve practically increase the orientation of employees towards the
organisation to serve in a better way. Progress of organisation as compared to the
other organisations competing in the same line.
Proper information of employees: Collecting proper information regarding the
employee history may help the organisations to forecast for the future activities of the
employee.
Improvements in favour of employees: Comprehensive improvements must be taken
by the organisation for the development of workers for getting the right performance
by improving new policies and removing old policies which are not of use.
Feed back system before leaving the organisation: It is obvious that no one can force
an employee to serve for his organisation but the feed back is important for companies
to record, why the employee is leaving the organisation?
Equal opportunity for all employees: The decision making capability boosts a person
a lot by realizing him that he can take decisions along with his other higher level
employees.
Introduction of success stories of employees presently working over there: By
sharing the success stories and work methodology of employees of their company
working in different branches or in same.

Dynamic HR strategies with the dynamic business environment:

The demanding quality, time line and the service are the few things associated with
every organisation. The hr policies followed by the employees of the organization
keeps them in a proper platform. Services industries employees have a tough work
with their clients. Regular approach to the similar client and the timer line of their
service improves the quality of work and positive response towards their organisation.
the smooth line of of the qualitative service is a valuable supplement for them. The hr
personnel’s keep the environment in such a way where the quality of work can be
maintained by the workers itself upto their standard. The business policies are
changing and that is forcing the employees to adapt new work syatems.The business
environmnment and the interpretation is a key for their success.

Conclusion:
The goal of the strategic management in an organization is to assess, deploy and
allocate resources providing the management with a competitive advantage.
Globalisation, scientific innovation, employee perception and customer expectation
have in the recent times created the need for rather more competitive organisations.
Under these conditions employees have pushed themselves to the central part of the
competition to feel the major changes from time to time. Now many top ITeS
companies have devised an early warning system (EWS) to track employee behaviour
and predict their likelihood of leaving. Identifying the employee is just the beginning;
the HR has to then work out solutions for every possible employee on the verge of
quitting. The IT industry is widening the talent pool continuously through innovative
resource exploration to meets its aggressive hiring objectives. A prospect to grow and
learn at work is emerging as a primary determinant of attracting and retaining
employees. The administration must provide fine retention approach to improve
human assets. the creative employee retention techniques has to be generated.
Material benefits are not the right tools for the highly motivated employees in the long
term basis. Organizations and companies succeed, or fail, based on the quality and
effectiveness of their employees. Today’s successful firms recognize that to compete
in global markets, they must have world class Human Resource managers who are
active participants in strategic and operational decision. Strategic management
process first analyzes a company’s competitive situation, develops its strategic goals
and mission, its external opportunities and threats, and its internal strength and
weaknesses to generate alternatives.

REFERENCES:
1. HUMAN RESOURCE MANAGEMENT- V.S.P. RAO
2. CRAFTING AND EXECUTING STRATEGY- CONCEPTS AND CASES-
ARTHUR A THOMPSON Jr.,A.J.STRICKLAND III,JOHN E GAMBLE,ARUN
KUMAR JAIN.
3.WWW.CAPITALINE.COM
4. WWW.EQUITYMASTER.COM
5. WWW.INDIAINFOLINE.COM
6. WWW.MYRIS.COM
7.WWW.MONEYCONTROL.COM
8. WWW.INDIANMBA.COM
9. WWW.NAUKRIHUB.COM

DECLARATION:
 THIS WHOLE ARTICLE IS PREPARED BY UNDERSTNDING THE
ATTRITION RATE OF EMPLOYEES MOSTLY IN THE IT AND RETAIL
SECTOR WHO ARE THE QUANTITATIVE EMPLOYEES OF THIS
SENARIO.BASED UPON THAT THIS WHOLE ARTICLE IS PREPARED BY
CONSIDERING THE ECONOMY OF COUNTRY, COMPETITION, MARKET,
STRATEGY OF DIFFERENT ORGANISATIONS, CONSUMER SATISFACTION,
SERVICE QUALITY,EMPLOYEE SATISFACTION. HERE ONLY TWO SECTORS
ARE MAJORLY TARGATED THATT IS IT SECTOR AND RETAIL
SECTOR.THIS ARTICLE IS NOT COPIED FROM ANY OTHER SOURCES.IT IS
PREPARED BASED UPON UNDERSTANDING THE CURRENT TRENDS
AFTER REFERING VARIOUS ARTICLES PUBLISHED IN
MAGAZINES,JOURNALS,WEBSITES,CASE STUDIES FROM BOOKS ANSD
CONSULTATION. THE GRAPHICS USED HERE ARE NOT COPIED FROM ANY
SOURCE,THESE ARE PREPARED BY ME THROUGH MY OWN CREATIVITY.