Employee engagement report1

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CHAPTER –I

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1.1 INTRODUCTION
Employee engagement is a level of commitment and interest the
employees have towards the organization.Human resource executives still are finding
ways to retain the employees.Engagement is all about encouraging and appreciating
employees for the effort they put forward to improve the organization.It is always
said that employee engagement forms an intrinsic liaison with customer loyalty and
profitability.Organizations of today ‘s realize that a satisfied employee is not
necessarily the most better employee in terms of loyalty and productivity.It is only an
engaged employee who is intellectually and emotionally bound with the
organization.
Employee engagement has become the main focus of Human resources
department in recent times and we could trace the origin of training and
development,growth opportunities and CSR activities to be a part of the employee
engagement activities.Recent reports also mentioned that a good boss or manager
also have an impact on the employee engagement activities.Employee might not like
to be committed or interested to work in an environment where there is no good
relationship with the manager.
Thus,employee engagement plays a vital role in all the organizations.In
this project,the main variables that are contributed to the level of employee
engagement are proved to have a greater impact on it and to find the ways to
improve the employee engagement at equitas . If employees feel attached to an
organization, then there would be less chance for them to leave the company.

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1.2 NEED FOR THE STUDY
An organization’s ability to manage employee engagement is closely related
to high performance levels and superior business.The following reasons led to the
study of the employee engagement at the company.
 Engaged employees will stay with the company even during the
difficult times and contribute to bottom line business success.
 They will perform better and be motivated always.
 There is a significant link between the employee engagement and
profitability.
 The engaged employees form an emotional connection with the
company which forms their attitudes towards the client or
customers and overall improve the customer satisfaction at service
levels.
 Employee engagement creates an energetic environment and boosts
the employees to work in an arduous situations.
 It evolves trust worthiness among all
 It will refrain employees from moving to another company(ie will
reduce the turnover rate)
Therefore, engagement is directly linked to the employee retention .It would be very
appropriate for a company to concentrate more on engagement activities rather than
thinking of other ways to retain the employees.
Engagement activities are not only meant to cherish or encourage employees to
work but also to improve the image of the company by increasing the profits.

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Employees are the greatest assets for the organizations and their contribution is the
main reason behind the company‘s success.
1.3 OBJECTIVES OF THE STUDY
Primary Objective:To find the impact of good boss,training and development
and growth opportunities on employee engagement and prove that these
three factors are very much greatly contributed to the levels of the employee
engagement.
Secondary Objective:
To find out the ways to improve the employee engagement activities at
Equitas.
1.4 RESEARCH DESIGN & METHODOLOGY:
Sampling Mode: Random sampling
Population Size: 200
Sample Size: 67
1.5DATA COLLECTION:
Primary data collection:
The data was collected by interacting with the ex employee through phone.
Questions were framed based on the independent variable and those
questions were asked to the employees in various regions.
1.6 SCOPE OF THE PROJECT:
Physical Scope:
It is done in Equitas Holdings Private Limited , Nandhanam andconsidering
employees those who worked in the organization.

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Conceptual Scope:
Study is based on the employee engagement practices at Equitas Holdings
Private Limited. The information is collected from the ex-employees (Sales
officer and branch Manager) based on
 Growth Opportunities
 Training and development at the company
 Rewards and incentives
 Relationship with the manager
 Salaries
1.7 Challenges in Engagement:
 Controlling Attrition: Despite providing with extra benefits and soaps Attrition
rate is high in Corporate and IT sector.People are restless and changes job very
suddenly.Sensing attrition in starting is very crucial and organisation are
working toward that.
 Driving High Performance: Aligning mindset toward high performance is not
easy and organizations are still finding it difficult to drive high performance
from employees.
 Creating future leadership: Finding leaders and grooming them for future is
another aspect where organisations are working so as to create new leaders
that would drive them in future.
 Attracting Womens toward high Powered Job: corporate and board rooms are
still marked by absence of female in them.It is high time management satrt
worrking toward having ambitious and high enery women in corporate nad
boardrooms.
1.8 Factors for Employee Engagement:

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 Motivation: Managers are needed to motivate their employees for work and
make them feel proud about the organisation, a motivated employee always
works harder than other has and is highly engaged. If a person is motivated
about the work s/he do/does, they are certainly engaged in will put their
maximum effort.
 Job Satisfaction: An employee will work for the maximum only when there is
right matching between their job and skill they posses. If a person is put on a
job, which s/he does not know how to do /he will certainly get bore of that
work very easily and it will harm organisation. Managers should keep a tab on
the employees regarding this and keep taking feedback whether their
employees are satisfied with the kind of job they are doing or not.
 Commitment: Creating a workforce of committed employee is one thing,
which is always on the mind of employee, and it is not easy. However, a
committed employee would always work for the betterment of organisation.
They would always stand with organisation and will always put on a good
image of the organisation.
 Loyalty: Every organisation needs loyal employees who would stand with the
organisation in time of crisis.
 Trust: Trust is very important between employer and employees. Employers
should have trust on their employee to take them as party in important
decisions and employees should trust their employer in matters regarding
administrative and functional decisions of organisation.
 Good Boss: A good and fair boss is always r equired to take organisation to
pinnacle of success. If there is a democratic and hard working boss, he/she
would easily motivate and lead employees by his/her work standards. However
if there is undemocratic and Impassionate manager he/she would not be able
to take employees as a unit toward the common goal.

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 Values: Right and just values of the organisation motivate employees to give
their best. If employees would feel cheated and organisation did not have right
values, employees would also not respect their organization and their work.
 Training & development: Training and development became the important
factor of employee engagement.If organizations provide intensive training to
employees according to their job profile,it will provide an opportunity for
employees to learn new things and aspects of the work.It will also improve
their skill and knowledge regarding the work.It would help the employees to
upgrade their knowledge with latest technology and help them to switch over
to other job profiles confidently.
 Growth Opportunities: Growth opportunities are directly linked to the
employee retention. When employees view very good growth opportunities at
the company, they will never change their mind to leave the company.

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2.1 Industry Profile:
Microfinance:
Microfinance refers to a variety of financial services that target low-income clients,
particularly women. Since the clients of microfinance institutions (MFIs) have lower
incomes and often have limited accessto other financial services, microfinance
products tend to be for smaller monetary amounts than traditional financial services.
These services include loans, savings, insurance, and remittances. These institutions
commonly deliver these loans for various purposes such as income generation,
repayment of old dues, microenterprise development etc. without any collateral.
More broadly, microfinance refers to a movement that envisions a world in which
low-income households have permanent access to a range of high quality and
affordable financial services offered by a range of retail providers to finance income-
producing activities, build assets, stabilize consumption, and protect against
risks.Microfinance definitions can be somewhat misleading. Microfinance is not
defined by the form but the intent of the lender. A loan provided by a market
intermediary to a small borrower is not viewed as microfinance. However an NGO
providing a similar loan to a low income borrower is considered as microfinance. It is
assumed that microfinance is given with a laudable intention and non-exploitative
connotation.
Classification of the sector:
Microfinance providers can be classified into three broad sectors:
i. Formal
ii. Semi-formal
iii. Informal

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Formal Sector: The formal sector comprises of banks such as Small Industries
Development Bank of India (SIDBI), National Bank for Agricultural and Rural
Development (NABARD) and other regional rural banks (RRBs). These banks are
primarily built to provide credit to poor and assisting them in agricultural and micro
enterprise development process. They charge an interest of about 12-13.5% but
including transaction costs(such as number of visits to banks, compulsory savings and
costs incurred for payments to animators/staff/local leaders etc.) they come out to
be as high as 21-24%.
Semi-formal Sector: These constitute the majority of institutional microfinance
providers in India and are referred to as Microfinance Institutions (MFI). They are
registered under various legal acts and differ greatly in philosophy, size and capacity.
They are primarily offshoots of NGOs spread all over India. They could be NBFCs,
societies, trusts etc.
Informal Sector: The informal sector, apart from friends and family, consists of
moneylenders, landlords and traders. While estimates of their importance vary their
significance is undeniable.
Microfinance in India
History
Microfinance in India can be traced back to its origins in the 1970s when the Self
Employed Women’s Association (―SEWA‖) of the state of Gujarat formed an urban
cooperative bank, called the Shri Mahila SEWA Sahakari Bank, with the objective of
providing banking services to poor women employed in the unorganised sector in
Ahmedabad City, Gujarat. The government also realized the need for credit services
to the ―unbanked people‖ who have no access to formal financial services but must

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rely on either family, or informal providers of finance, such as the village
moneylender. Relying on the limited resources of village moneylenders exposes the
poor to coercive lending practices, personal risks and high interest rates, which can
be a much as 150%. Hence the government and the RBI came up developmental
Banks like NABARD which could provide undivided attention towards this cause. In
1980s the microfinance sector developed around a concept of self-help groups
(SHGs). SHGs were village based financial intermediaries usually composed of 10-20
women. The development of these groups provided for an innovative approach by
NABARD to extend the outreach of financial institutions to these SHG. This gave birth
to the SHG-Bank Linkage program (SBLP) in 1992 on pilot basis. Initially the pilot
project started with a target of linking 500 SHGs with banks wherein the banks will
provide access to the group members for their savings on regular basis while also
providing credit to the group to meet its emerging credit needs of its members, in
proportion to the savings of its members. The program caught the imagination of not
only financial institutions but also governmental and nongovernmental agencies that
joined hands with NABARD in this effort. Today this unique initiative inIndia has
about 4000 partners and has blossomed into a decentralized yet most cost effective
microfinance initiative in the world enabling about 97 million poor households’
access to sustainable financial services from the banking system.Under another form
of group formed by the NBFCs called the Joint Liability Group (JLG) the individual
loans are jointly and severally guaranteed by the group. The NBFCs providing this
model started as a not for profit organization but later were unable to raise adequate
resources for rapid growth of the activity, they converted themselves into for profit
NBFCs. NABARD has been popularizing the scheme and detailed guidelines for
financing of JLGs has been issued to all banks during 2009. During the year ended
31March 2011, 85766 JLGs were formed and an amount of USD 134.63million was

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disbursed as loan. Cumulatively, 141045 JLGs have been formed and USD 233.73
million has been disbursed as on31 March 2011.
From humble beginnings, the microfinance sector has grown significantly over the
years to become a multi-billion dollar industry, with bodies such as the Small
Industries Development Bank of India and the National Bank for Agriculture and Rural
Development devoting significant financial resources to microfinance. Today, the top
five private sector MFIs reach more than 20 million clients in nearly every state in
India and many Indian MFIs have been recognized as global leaders in the industry.

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COMPANY OVERVIEW:
Equitas (formerly, UPDB Micro Finance Pvt Ltd) was set up on 22-June-2007 by Mr P
N Vasudevan, Mr M Anandan, and Mr V P Nandakumar. Mr Vasudevan was
previously Vice President in Cholamandalam Investment & Finance Co Ltd, Chennai
handling their retail business division comprising of vehicle finance with operations.
Equitas is a non-deposit-taking NBFC, registered with the Reserve Bank of India (RBI).
Equitas is a microfinance institution (MFI), lending to women organised as joint-
liability groups. The company had cumulative disbursements of USD 458 million as on
December 31, 2011. It had 265 branches, with about 1.2 million borrowers and a
portfolio outstanding (based on assets under management) of USD 142.3 million as
on March 31, 2012.
Equitas has diversified into two new asset classes of used commercial vehicles and
housing finance. Under the structure, there is a holding company and three operating
subsidiaries – one each for microfinance, vehicle finance and housing finance. Equitas
acquired two NBFCs (SIFPL and V A P Finance Ltd) to run the micro and vehicle
finance businesses and has obtained licence from National Housing Bank in January
2011 for housing finance business.Equitas’s assets and liabilities in its microfinance
business stands transferred, under an SoA, to Singhvi Investment & Finance Pvt Ltd
(SIFPL). The current microfinance entity will then become the nonoperating holding
company. V A P Finance Ltd has been reconstituted as a private limited company and
renamed Equitas Finance Pvt Ltd (EFPL). The housing finance business will be
undertaken by Equitas Housing Finance Pvt Ltd (EHFPL). The holding company will
hold the common capital and infuse capital into the subsidiaries on need basis. The
current allocation of capital for the three segments is as follows: microfinance -
Rs.1.8 billion (USD 36,740); used vehicle finance - Rs.0.60 billion (USD 12,244); and
housing finance – Rs.0.3 billion (USD 6,122).SIFPL is a wholly owned subsidiary of

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Equitas. The holding company transferred the microfinance business to SIFPL, a
newly acquired NBFC, with effect from April 1, 2011. The Madras High Court has
recently approved of a scheme of arrangement (SoA) between Equitas and SIFPL for
the transfer of the microfinance business. Equitas will be renamed Equitas Holdings
Pvt Ltd and SIFPL will be renamed as Equitas Micro Finance India Pvt Ltd shortly.
Mission:
To improve quality of life by increasing total asset value of those who are not
effectively served by the formal financial sector by providing transparent and
trustworthy access to financial and other relevant products and services by deploying
cutting edge technology and forming partnerships and alliances.
Vision:
To be the leader in microfinance in the country
Unique features of EQUITAS:
 The most fair & transparent company in the world. Equitas has always
communicated the reducing balance interest and the interest rate was set
based on a moderate margin assumption. The Equitas model has been
validated by RBI’s adoption of its practices as the norm for microfinance
institutions and NBFCs in general.
 Customer-friendly repayment practices adopted in all lending businesses.
Borrowers under financial stress due to unexpected circumstances (such as
death in the family etc) are provided suitable comfort. Over Rs 50 Lakhs has
been waived as per this policy.

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 Highest levels of corporate governance. Clause 49 complied with since Day
One. Board of Directors conduct a peer evaluation of each other.
Equitas has been rated as a Great Place to Work for the past few years now. The
company has adopted unique HR practices such as
ESOP for all employees at every level, enabling them to participate in the value
creation
Health insurance for all staff including those covered under ESI
Health insurance for dependent parents of all staff in the company, which is
unique amongst corporates in India
Rs. 500 plus a day off given to employees on their Wedding Anniversaries,
enabling them to spend time with their families
Sponsoring of video charges (upto an amount) for employees getting married
while in service.
Supporting continual education programme: 50% of tuition fees paid by
company and if employee passes in I Class, reimbursing the remaining 50% also
Celebrating birthdays of all staff by cutting cake in respective branch office.
Fair and transparent staff appraisal system with staff having direct access to
M.D to air grievances
Largest scale of social initiatives by any company. 5 Lakh health camp
beneficiaries and 2.5 lakh skill development program beneficiaries.

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Equitas was founded in 2007 on three basic principles:
1.Clarity of Purpose
2. Honesty of Intention
3.Integrity of Execution
An organization that adopts these three principles tends to be supported by every
resource across the world in its endeavours. And Equitas has been fortunate to have
gained the trust & support of stakeholders across the world!. Equitas has adopted a
unique model of responsible lending, which was borne out of extensive field visits
which revealed the following”
From the Client Side
Micro Credit services were a needed service from the perspective of the low income
groups, be it in rural or urban. This was regarded by its recipients as a good alternate
between low cost but inefficient bank loans and highly efficient but high cost money
lender loans.
From the Supply Side
The focus by most Microfinance institutions (MFI) were only on 3 factors: Growth in
number of clients, loan outstanding and no. of staff. There was hardly any mention
amongst MFIs of efficiency improvements, technology adoption, cost parameters and
ultimate cost to clients. The common refrain was ‘clients don’t mind the interest
rate, they just need the money quickly’.
Clearly what was lacking from the supply side was any form of fairness or
transparency in their dealing with the clients and other stakeholders. Against this
backdrop, Equitas was formed in 2007 with an intent to create an organization which

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the most fair and transparent MFI in the World!
And the crowning glory for Equitas was when, in the aftermath of the 2010 crisis in
the MFI sector, the RBI appointed Malegam Committee recommended tight
regulation for the sector. All the 12 major recommendations of this Committee were
a reflection of the exact model that Equitas had created right from inception,
including our lending rate of 25.5% of our first loan.
We are indeed proud that Regulation has chosen to follow the Equitas model
including setting an interest rate cap at 26%.
In 2011, Equitas expanded the scope of providing financial services for the financially
excluded segments of the society. Equitas has setup separate businesses for
providing finance for purchase of used commercial vehicles and housing loans for
self-employed through wholly owned subsidiaries. In the next few years, Equitas
expects to balance its portfolio equally across these 3 businesses

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There are seven parts to the mission statement.
(1) The main purpose: to improve the quality of life of our customers
(2) Indicator: While there are many indicators of quality of life, we have chosen the
yardstick of measuring the asset value as the indicator of quality of life.
(3) Who are our customers: Those not served by the formal financial sector
(4) How do we serve: Transparent and trustworthy access. Equitas, in Latin means
‘Equitable’ meaning fair and transparent. Everything done here would be tested

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against this measure and only those which pass would be allowed to be rolled out.
Every action that the company does should be transparent and shouldcreate trust in
the minds of customers and other stakeholders. Our pricing is very fair and not
opportunistic. We have priced our products such that at an optimum efficiency of
operation we would be able to get reasonable return on equity, even though there
exists a temporary opportunity to price higher. We are also totally transparent in our
communication of interest rate to clients. As per a communication ( in 2008 ) Mr
Chuck Waterfield of mftransparency.org, Equitas may be the first MFI in the world to
print the true IRR in the customer pass books.
(5) What do we offer: Both financial and non financial products and services. While
we are currently offering only finance, the plan is to roll in non-financial products and
services shortly
(6) How do we do this: By leveraging technology to ensure lower cost and hence
lower price to customer. Equitas has put in place significant innovations both in
processes and IT to improve efficiency and reduce cost. Our ‘Sticker’ process for
collections is protected now through a Copyright. Our SMS meeting tracker system,
Form Tracker system and Optical Mark recognition are recognised as unique
initiatives with the OMR being the first in the BFSI sector in India. We are already
better than all leading competitors in terms of various productivity parameters and
expect to be the lowest cost organisation during the coming year.
(7) Do we go alone in this: Not necessarily. Wherever we can form alliance or
partnership with others we would be happy to look at the same. We have
successfully outsourced many non-core activities to various vendors, thus improving
productivity and controls.

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INVISIBLE MISSION STATEMENT!
The core of our mission is that:
1) All our actions with respect to all stakeholders will be totally fair and completely
transparent
2) This philosophy would be reflected in the everyday action of all staff right across
all the branches
To achieve this, we did the following:
1) Ensure our mission statement is not displayed in any walls at HO or at any
branch, but instead resides in the hearts of our employees
2) Institutionalize a process where every evening at 5PM across all our branches,
the staff gather to discuss their activities for the day and check whether any of it was
either unfair or non-transparent; and take action not to repeat it.
We proudly invite any visitor to test us out on this and would be happy to take
feedback for improving ourselves further.”

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CHAPTER –III

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3.1 EMPLOYEE ENGAGEMENT PRACTICES AT EQUITAS:
Given the mission of the organization and its focus on consumers, the company also
has a separate mission for the HR team that would enable it to serve its internal
consumers – the employee’s better. The Human Resource mission is, “To Acquire,
Align, Assess and Retain Trustworthyemployees”.
Acquiring the right resource: The Company follows an elaborate recruitment
process, which includes behavioural assessment of candidates.Sixty percent of staff
is recruited through employee referral. Only employees who have completed one
month of employment are eligible to refer, as it is important for new employees to
understand the work culture in order to provide quality references. There is a second
level line manager screening and a HR round to clear possible employees. Candidates
are then sent on field visits to understand and experience what their role and the
work of the organisation is like. Frequently, candidates do not join after the field
visits. This helps the organization filter out those who would not fit into the culture
even before they enter the system.
Another mechanism to assess fitment is “Know your candidate’s family well,” where
the supervisor visits the selected candidate’s residence to understand the cultural
aspects of and bond with the family. This also serves as a background check. Given
that employees deal with customers’ money, this assessment is very important.
Equitas also ensures that all candidates hired are posted close to their residence to
ensure a balanced work life and also enable closer supervision.
Alignment of the workforce to create “unity and uniformity” in employees’
understanding of the organisation’s objectives is critical, as most employees come
from diverse backgrounds and work in different regions. This is accomplished
through a vernacular two week induction program for all field staff at Regional
Training Centres. After this training, staff can only go into the field once they have

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cleared the company’s certification program. When a new region is being set-up, the
team leading the effort undergoes a two week intensive and additional training on
recruitment, infrastructure creation and statutory compliance.
Assess: Performance Management at Equitas follows a”Win-Win Agreement,” where
goals are measurable and agreed to through due process. Employees are accountable
for their goals and the company for rewarding performers. Process guidelines and
cultural guidelines are put in place. The role of the employee is clearly defined and
communicated. Performance reviews are undertaken twice a year. Area-wise and
role-wise normalization prevents favouritism. For example in most regions the sales
roles are income generating and viewed more critical to support roles, in the process
of normalisation across a region, the general practice is to place the sales roles at the
high end of the curve and the support roles at the lower end. By having normalisation
done across both sales roles and support roles separately, this bias is minimised. The
company uses a transparent method of computing performance and promotion
increments.
Retain: The guiding principle of Equitas is to”Treat your employees the way you want
them to treat your best customers”. Just as the focus of Equitas is to improve the
quality of life of its customers, it also strives to improve the “Quality of life” of its
employees by addressing the four key aspects of the whole person:
Physical - by enabling employees a certain minimum standard of living through
provision of various health and insurance benefits. One of the best practices is a,
“Snack Allowance”. Since most field staff begin the day early they miss
breakfast and get time to have lunch only late in the afternoon. Equitas
introduced a snack allowance of Rs.30 apart from their other allowances with
which they could buy some biscuits and water. Given the tendency of most

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people to save up on that money, Equitas also arranged for surprise audits of
its field staff to ensure they are making use of this allowance.
Mental - by providing opportunities to learn and grow in the form of educational
allowances for higher education which is almost 100% depending on the
performance of the employee in the course that has been taken up.
Even in the time of the crisis, Equitas had a no retrenchment policy which was
communicated openly to all the employees. Two additional lines of business in the
form of vehicle loans and home loans were started to improve the situation without
affecting the livelihood of the employees.
Emotional- by making them feel cared for through provision of employee stock
options for every employee; a branch award scheme where the entire winning
team gets to go for an outing with their families (in case of an annual award
winner, the entire Branch team gets to go abroad with his/her family);
communication channels such as A Monthly Hotline with the National Business
Head which is an email facility where employees can send their concerns and
issues at work to the National Business Head, who is committed to resolving
them within 48 hours. If the resolution is likely to take longer, the employee is
kept informed. It is mandatory for all employees to respond to an email from
the National Business Head even if they do not have any concerns to raise. This
provides a channel to communicate any issues or concerns and have them
addressed.
Spiritual - by emphasizing on the quality of work through its alignment with the
mission statement; career enhancement policy where employees can move to
different roles through their internal job postings and open house sessions
where they provide suggestions for people practices.

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ACHIEVEMENTS AND WHAT’S NEXT
Equitas tracks the progress it has made with respect to its mission by measuring the
improvement of the total household assets of its customers. Since it has a no credit
policy for consumer durables, this mechanism helps in making a rudimentary
estimation of any improvement in the quality of life of its customers. Equitas needs
to improve its measures and metrics in this respect. The significantly low attrition
rate, as compared to its competitors, indicates Equitas is the employer of choice for
its employees.
Industry recognition awarded to Equitas includes:
CRISIL rating of 3 for corporate governance on a scale of one to eight, with one
being the highest.
"Unitus Accelerator" Award for 2008 - More than 80,000 clients with life
changing microfinance services in less in 8 months.
Winner of the TiE-Canaan Entrepreneurial Challenge (2008)-a national level
business plan competition for Early Stage Entrepreneurs in India.
Optical Mark Reader (OMR) Implementation at Equitas as the “Best
Implementation of the year 2009 – PC-Quest” an I.T magazine
The Equitas focus on being “trustworthy”, “fair” and “transparent” in all its
dealings has been a key differentiator for the company in the microfinance
industry. Incidents of employees taking bribes from customers to process loans
have led to stringent risk management practices in the company. Despite its
policy of, “treating employees the way they would have them treat their best
customers,” the environment that most of its employees come from makes it
difficult to practice. Although practices like having the employees stay within a
radius of 15 kms from the office helps work life balance, it also enables
monitoring of the employees whereabouts. Hence, Equitas’ risk management

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practices have led to its employees feeling watched which could impact
engagement. However, this is more than offset by the faith of the investors
that their investment with the company is safe.
Taking Microfinance to the next level by focusing on providing an ecosystem of
services to the customers is not just a sustainability initiative but also helps the
organization achieve its mission. Equitas’ HR practices along similar lines can
be viewed as catering to the employees as per Abraham Maslow’s hierarchy of
needs. It begins with small aspects like the snack allowance that pays attention
to their physiological needs; the openly communicated “no retrenchment
policy” even in times of financial crisis addresses their safety needs; Various
communication mechanisms and engagement practices satisfies social needs
and educational assistance and alignment of the work to the mission
statement enables them to fulfil their esteem needs.

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The survey was conducted through telephonic interview with sample size around
67.The questionnaire consists of 19 questions(i.e first 10 questions descriptive,next 9
questions are five scale questions).
The five scale used for this project is as follows
5-Outstanding
4-Excellent
3-Average
2-Bad
1-Very Bad
The following questions were asked through telephone and the answers were
recorded in the excel sheet.The target group belonged to different regions.
NO OF EMPLOYESS
VEHICLE FINANCE 38
MICRO FINANCE 29
67
REGION NO OF EMPLOYEE VEHICLE FINANCE MICRO FINANCE
TN 22 12 10
AP 9 9 0
MH 17 9 8
MP 2 0 2
RAJ 7 1 6
PONDY 2 2 0
GUJARAT 8 5 3

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The analysis and interpretation on the responses for each of the questions are as
follows:
1)How are the growth opportunities at Equitas?
OPINION NUMBER OF EMPLOYEES
Very good 37
Good 11
Ok 9
Not good 10
Total 67
GRAPH:
FINDINGS AND INFERENCES:
From the analysis,it is found that 71% are very happy about the growth
opportunities at equitas.But 39% didn’t get good opportunities during their tenure in
the company.It indicates that the growth opportunities are really good at the
company.
0
10
20
30
40
Very good Good Ok Not good
No Of Ex Employees
No Of Ex Employees

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2)What is your view about the recognition/rewards given by the
management?
Yes,Very good 61
No,Rewards are not given 07
Total 67
GRAPH:
More than 75 % ex employees feel very good about the reward system at Equitas.The
remaining percentage felt that the reward system is not followed and quit the
company due to this reason.
0
20
40
60
80
Yes No
No Of Ex Employees
No Of Ex Employees

BIM TRICHY Page 31
3)Was your position /Role equivalent to the Pay/Salary?
Yes 59
No 8
Total 67
GRAPH:
It was found that 88% ex employees felt that they were paid according to their
position.Only 12% percent were not happy with the salary package.
So,There is no necessary to change the salary structure.
0
20
40
60
80
Yes No
No Of Ex Employees
No Of Ex Employees

BIM TRICHY Page 32
4)Do you agree that frequent chance was given to you for improving
your skill and job knowledge?
Yes 50
No 17
Total 67
GRAPH:
From the analysis ,it was found out that 74% of ex-employees felt that their
knowledge about finance and communication skill had been improved tremendously.
The remaining 26% had not felt any improvement in either their knowledge or skill
So, there is no need for the company to deal in improving the employee’s skill and
knowledge.
0
20
40
60
Yes No
No Of Ex Employees
No Of Ex Employees

BIM TRICHY Page 33
5)Did Manager give you the opportunity to discuss your grievances?
Yes 54
No 13
Total 67
GRAPH:
From the survey ,it is found out that 80% of ex-employees got the support of their
managers during the rainy days in the company.But remaining 20% didn’t the
support. Thus ,the company must conduct get together programmes to ease the way
of approach between the management and the employee.
0
20
40
60
Yes No
No Of Ex Employees
No Of Ex Employees

BIM TRICHY Page 34
6)Were you appreciated for your work?
Yes 48
No 19
Total 67
GRAPH:
FINDINGD AND INFERENCES:
It is found that 71% of ex-employees were appreciated by the managers when the
performance was very good.But,remaining 29%didn’t get any appreciation.
Managers should try to appreciate the employees for the good performance in order
to increase their commitment towards the work
0
20
40
60
Yes No
No Of Ex Employees
No Of Ex Employees

BIM TRICHY Page 35
7)Were you supported by the supervisors during your difficult times?
Yes 54
No 13
Total 67
GRAPH:
From the survey ,it is found out that 80% of ex-employees have got the support of
their managers during the rainy days in the company.But remaining 20% didn’t the
support. Thus ,the company must conduct get together programmes to ease the way
of approach between the management and the employee
0
20
40
60
Yes No
No Of Ex Employees
No Of Ex Employees

BIM TRICHY Page 36
8) Were your ideas considered in the work environment?
Yes 38
No 29
Total 67
GRAPH:
FINDINDS AND INFERENCES:
From the analysis,it is found that 56% of ex-employee’s ideas were considered during
the team meeting.But,remaining 44% employee’s ideas have not been considered.
So,Managers should give the employees an opportunity to reveal their creativity. The
ideas should not only be considered but also implemented.Awards have to be given
for creative ideas.
9) Did you have the materials and equipment to do your work
efficiently?
0
10
20
30
40
Yes No
No Of Ex Employees
No Of Ex Employees

BIM TRICHY Page 37
Yes 67
No
Total 67
GRAPH:
It is found that 100% ex-employees were very happy with the materials and
equipments given for the work to be done successfully.
So,there is no need for the company to change this structure.
10)How do you rate the relationship with the manager?
0
20
40
60
80
Yes No
No Of Ex Employees
No Of Ex Employees

BIM TRICHY Page 38
5 33
4 16
3 8
2 7
1 3
Total 67
GRAPH:
FINDINGS AND INFERENCE:
From the analysis,it is found that 73% of sample size gave the score equal
to or more than four for the question relationship with
manager.But,remaining 27 % were not that happy with the relationship
with the manager.
So,The company should conduct frequent audits to have a track of the
behaviour of the manager and their relationship with the employees.
11)How are the Communications between you and the senior manager?
0
10
20
30
40
Outstanding Excellent Average Bad VeryBad
No of ex employees
No of ex employees

BIM TRICHY Page 39
5 31
4 24
3 5
2 5
1 2
Total 67
GRAPH:
It is found that 82% ex employees had good communication with their managers but
the remaining 18% didn’t have good communication with the managers.
Communication is very important between the manager and the employees,Thus
the management team has to see that the communication is good enough between
the employees and the management.
0
10
20
30
40
No of ex employees
No of ex employees

BIM TRICHY Page 40
12)How do you rate the performance appraisal at Equitas in terms of
fairness and transparency?
5 19
4 35
3 6
2 5
1 2
Total 67
GRAPH:
From the survey,it is very evident that the 80% employees performance appraisal
was fair and transparent but remaining felt a kind of politics being followed in the
company.
Thus,company should see that managers rate the employees based on performance
in the fair and transparent way.
0
5
10
15
20
25
30
35
40
Series1

BIM TRICHY Page 41
13)How do you rate the training and development in the company?
5 27
4 18
3 8
2 11
1 3
Total 67
GRAPH:
It is found that 67%of ex-employees rated the training and development practice at
company more than or equal to four.But,remaining ex-employees scored less than
four.So,Company should improve the practices of training and development to see
that employees will be made aware of the information necessary for the work.
0
5
10
15
20
25
30
Series1

BIM TRICHY Page 42
14)How would you rate the reward system in the company?
5 26
4 29
3 4
2 5
1 3
Total 67
GRAPH:
It is found 82% of ex-employees have rated the compensation package at equitas
more the or equal to four.But,remaining 18% rated it less than four.
Overall,the compensation package is better in the company.
0
5
10
15
20
25
30
35
No of Ex Employees
No of Ex Employees

BIM TRICHY Page 43
15)How would you rate the support provided by the supervisors during
your tenure in the company?
5 31
4 20
3 5
2 4
1 7
Total 67
GRAPH:
It is found that 76% of ex-employees have rated the manager’s support
more than or equal to 4.Remaining percentage of ex-employees didn’t get
the expected support from the managers.So, managers at the company,
especially branch managers need to support and encourage the sales
officer in their work.
0
5
10
15
20
25
30
35
No of Ex Employees
No of Ex Employees

BIM TRICHY Page 44
16)How was the relationship with peers during your tenure ?
5 48
4 17
3 2
2
1
Total 67
GRAPH:
It is found that 97% of ex-employees were very happy with the colleagues during
their tenure in the company.
0
10
20
30
40
50
60
No of Ex Employees
No of Ex Employees

BIM TRICHY Page 45
18)How would you rate the growth opportunities at Equitas ?
5 28
4 19
3 7
2 9
1 4
Total 67
GRAPH:
From the sample it is found that 70% of ex-employees were very happy with the
growth opportunities in the company.But,the remaining percentage didn’t find any
good growth opportunities in the company.Thus, the company should give
promotions and ratings based on the performance but not based on impressions.
0
5
10
15
20
25
30
No of Ex Employees
No of Ex Employees

BIM TRICHY Page 46
19)What is the overall view about the company towards employee
engagement?
5 48
4 15
3 2
2 2
1
Total 67
GRAPH:
It is found that 94% of ex-employees are very happy with the employee engagement
practices being followed in the company.
Thus, company has to concentrate on few more things to make all its employee very
much committed to the company.
0
10
20
30
40
50
60
No of Ex Employees
No of Ex Employees

BIM TRICHY Page 48
5.1 FINDINGS AND SUGGESTIONS:
FINDINGS:
o The growth opportunities in the company are quite adorable. Many employees
are promoted based on the performance.
o The rewards system and the salary packages are up to the mark in the
company.
o Employees are able to accumulate knowledge by Working in this field of work .
o The employee’s communication skill improved because of interaction with
customers.
o The work pressure is considered to be more when compared to other jobs.
o The relationship between the manager and the employee seems to be little
acrid.
o The employees are somewhat happy with the employee engagement practices
being followed in the company.
o Boss,training and development and growth opportunities have a great impact
on the employee engagement.
SUGGESTIONS:
From the survey,the following suggestions are provided so that employees would be
very commited to the company.
- Management style at the Branch Manager level has to be changed.
- Company Policy should be followed 100%.
- Target system of the sales officer should be flexible.
- Monthly Performance Rewards(ie cash) have to be introduced at every
department
- Relaxation measures like team outings,Two days trips should be introduced.

BIM TRICHY Page 49
- Interest rate of the loan has to be reduced.
- Loan development process has to be very fast .
- Frequent auditing should be carried at very branch.
- Create a strong team environment.
- Sense of belonging.
- Provide constant feedback on the positives.
- Give immediate feedback.
- Celebrate both financial and non-financial achievements.
- Delegation

BIM TRICHY Page 51
(A)Employee Engagement Model

BIM TRICHY Page 52
(B)Employee Engagement Model
EMPLOYEE ENGAGEMENT
GOOD BOSS
TRAINING &
DEVELOPMENT
GROWTH
OPPORTUNITIES

BIM TRICHY Page 53
PROJECT SURVEY QUESTIONNAIRE:
1) Did you have the growth opportunities at your work place?
2) What is your view about the recognition/rewards given by the management?
3)Was your position /Role equivalent to the Pay/Salary?
4)Do you agree that frequent chance was given to you for improving your skill and
job knowledge?
5)Did Manager give you the opportunity to discuss your grievances?
6)Were you appreciated for your work?
7)Were you supported by the supervisors during your difficult times?
8) Were your ideas considered in the work environment?
9) Did you have the materials and equipment to do your work efficiently?
10) In overall what is your opinion about this company?
11)How do you rate respect and fair treatment given to all employees in the
organization ?
5 4 3 2 1
12)How are the Communications between you and the senior manager?
5 4 3 2 1
13)How do you rate the performance appraisal at Equitas in terms of fairness and
transparency?
5 4 3 2 1
14)How do you rate the training and development in the company?
5 4 3 2 1

BIM TRICHY Page 54
15)How would you rate the reward system in the company?
5 4 3 2 1
16)How would you rate the support provided by the supervisors during your tenure
in the company?
5 4 3 2 1
17)How was the relationship with peers during your tenure ?
5 4 3 2 1
18)How would you rate the growth opportunities at Equitas ?
5 4 3 2 1
19)What is the overall view about the company towards employee engagement?
5 4 3 2 1

BIM TRICHY Page 55
http://www.equitas.in/
http://hr-practices.com/
http://www.aon.com/human-capital-consulting/thought-
leadership/talent_mgmt/2012_Making_Employee_Engagement_Happen_Best
_Practices_Best_Employers_White_Paper.jsp
http://www.slideshare.net/bestworkplacesconference/equitas-microfinance
http://www.shrmindia.org/knowledge-center/strategic-hrm/organization-
values-and-culture/equitas-microfinance
http://www.peoplematters.in/tej_articles/employee-engagement/equitas-
micro-finance-a-mico-initiative-for-a-macro-vision/1093
REFERENCES

Employee engagement report1

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