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21PGDM-BHU003,Aditi_Saha_Capstone_Report.docx
1. IMPACT OF EMPLOYEE RETENTION
STRATEGIES ON JOB SATISFACTION OF
EMPLOYEES IN AN ORGANISATION
A Capstone Research Project Report
Submitted to
International Management Institute
Bhubaneswar
IN PARTIAL FULFILMENT FOR THE AWARD OF
POST GRADUATE DIPLOMA
In
MANAGEMENT
By
ADITI SAHA
21PGDM-BHU003
2023
2. 2
Preface
As a part the of PGDM curriculum and to gain practical knowledge in the field of
management, we are required to make a Capstone Project report on the “Impact of employee
retention strategies on job satisfaction of employees in an organization”.
The basic objective behind this project report is to list down the various employee retention
strategies, analyze these strategies and find out the extent to which it makes an impact
on the job satisfaction of employees. The study will help organizations understand which
strategies are generally important to provide job satisfaction to employees. In addition, it
aims to have conclusive recommendations for further study as well.
3. 3
Acknowledgement
"I would like to express my sincere gratitude to [my faculty guide Prof. Bindu Chhabra] for
her valuable contributions to this project. Her guidance, feedback and support has been
invaluable in completing this project.
I would also like to thank my father and my brother for helping me with data collection which
was critical to the success of this project.
Finally, I would like to express my appreciation to my family and friends for their unwavering
support and understanding during this project. Their love and encouragement have been my
source of strength and inspiration.
Thank you all for your contributions and support."
4. 4
Student’s Undertaking
I, Aditi Saha bearing Institute Roll.no 21PGDM-BHU003, declare that the Capstone Project
report titled “Impact of employee retention strategies on job satisfaction of employees in
an organization” is my original work and completed under the supervision of Prof. Bindu
Chhabra.
Signature:
Name: Aditi Saha
Date: 06.03.2023
Place: International Management Institute, Bhubaneswar
5. 5
CERTIFICATE
This is to certify that the Capstone Project titled
“________________________________________” submitted to the International
Management Institute, Bhubaneswar in partial fulfillment of the requirements of the Post
Graduate Diploma in Management is an original work done by Mr./Ms.
______________________________________ at International Management Institute,
Bhubaneswar under my supervision and guidance.
To the best of my knowledge, this report has not formed the basis for the award of any previous
degree/diploma to any candidate of any university/ Institute.
Date:
Name and Signature
(Supervisor)
IMI, Bhubaneswar
6. 6
Table of Contents
Sr. No. Content Page No.
1 Preface 1-2
2 Acknowledgment 3
3 Table of contents 6
4 Introduction 7-13
5 Literature Review 14-15
6 The objective of the study 16-17
7 Scope of the Study 18-22
8 Problem Identification & Hypothesis Formulation 16
9 Research Methodology 17
10 Data Analysis & Interpretation 23-24
11 Findings 25
12 Conclusion 25
13 Recommendations 26
14 Annexure 29-31
15 Reference 32
16 Plagiarism Report 33
7. 7
Abstract
Employee retention is a dynamic concept in the field of HR Strategies. In the changing market
and environment, the cognitive mind of people is constantly changing and needs exploratory
research to explore different strategies that influence and impact the job satisfaction of
employees in an organization. Employee retention strategies are crucial in today's world to help
organizations retain top talent, save costs, adapt to changing work preferences, maintain a
positive work culture, and retain knowledge and expertise. Hence, this research is done to
achieve the same.
This project explores the concepts of a comprehensive study on the impact of employee
retention strategies on job satisfaction of employees. It aims to examine several factors that
influence job satisfaction of employees in an organization.
Literature Review resulted in highlighting the importance of retaining talented and committed
employees for organizational success. The paper emphasizes the need for organizations to align
their policies and practices with HR strategies to effectively retain top-performing employees.
After conducting a Multiple Linear Regression, we found that the Perks and Recognition-
reward system positively impacts the job satisfaction of employees in an organization.
8. 8
Introduction
Employee retention is the ability of a company to retain its employees over a long period of
time. It is an important factor in any business, as it can have a major impact on the overall
productivity and performance of the organization. Companies use a variety of strategies to
improve employee retention, One way to attract and retain employees is by offering attractive
compensation packages and benefits, ensuring job stability, promoting a pleasant working
atmosphere, providing opportunities for career growth, and recognizing and rewarding
outstanding performance.
IMPORTANCE-
Employee retention is important because it reduces the costs and time associated with
recruiting, interviewing, and onboarding new employees. Additionally, retaining employees
can help improve morale, reduce turnover, and increase productivity. It can also help employers
save money by reducing the need for additional training, as experienced employees may be
able to perform tasks more efficiently. Finally, retaining high-performing employees can help
improve the overall culture of the organization and create a more positive work environment.
Various Employee Retention strategies followed in an organization are –
Onboarding and orientation
Mentorship programs
Employee compensation
Perks
Wellness offerings
Work Culture
Communication
Training and development
Recognition and rewards systems
Work-life balance (Flexibility)
9. 9
Onboarding and orientation
Onboarding and orientation are integral parts of employee retention. It’s important to make
sure that employees have all the necessary information and resources they need to be successful
in their roles and familiarize them with the company’s culture and values. Onboarding should
include detailed job descriptions, expectations, and performance reviews. It should also include
introductions to key personnel, job-related training, and further information on company
policies and procedures. Orientation should provide new employees with an overview of the
company’s culture, history, mission, and values. It should also provide personal introductions
to the team, a review of company policies and procedures, and an opportunity to get answers
to any questions they may have. By providing a comprehensive onboarding and orientation
experience, employers can help employees feel more comfortable and confident in their roles,
which can lead to increased job satisfaction and improved employee retention.
Mentorship programs
Mentorship programs are an effective way to help with employee retention. These programs
provide employees with an experienced mentor who can provide guidance, support, and advice
to help them succeed in their current roles and progress in their careers. They can also help to
improve employee engagement, reduce turnover, and create a positive and productive work
environment. Mentorship programs can be tailored to the individual needs of each employee
and can help create a supportive and encouraging culture. Additionally, mentorship programs
can provide employees with access to valuable resources, such as career development courses,
networking opportunities, and access to industry experts.
Employee compensation
Employee compensation is one of the most important factors in employee retention. Employers
should ensure their employees are paid competitively and receive additional benefits such as
bonuses, insurance, retirement contributions, and other forms of compensation. Additionally,
employers should focus on creating a positive work environment, providing development
opportunities, and offering rewards for excellent performance. These strategies will help create
a culture of appreciation, which will improve employee satisfaction and ultimately reduce
employee turnover.
10. 10
Perks
1. Flexible Scheduling: Allowing employees to customize their working hours can help Find
ways to decrease stress levels and improve the balance between work and personal life.
2. Training and Development Opportunities: Offering employees the chance to learn new
skills and gain knowledge of their industry can help them stay engaged and motivated.
3. Remote Work Options: Allowing employees to work remotely can help them maintain
productivity while still having the flexibility to manage their own time.
3. Employee Recognitionn: Allowing employees to work remotely can help them maintain
productivity while still having the flexibility to manage their own time.
5. Paid Time Off: Offering generous vacation and sick leave can help employees take time
off when needed, reducing stress and promoting a healthy work-life balance.
6. Employee Discounts: Offering discounts on products or services can help employees feel
valued and boost loyalty and engagement.
Wellness offerings
1. Flexible Work Schedules: Offering flexible work schedules is an effective way to retain
employees. This allows employees to work when it best suits them, allowing them to better
manage their work-life balance.
2. On-Site Health Services: Companies can offer on-site health services such as health
screenings, vaccinations, and mental health counseling to promote well-being and help
employees stay healthy.
3. Ergonomic Workstations: Providing ergonomic workstations helps to reduce injury and
fatigue, which can lead to improved employee productivity.
4. Recreation Programs: Companies can offer recreation programs such as physical
activities, group outings, and team-building activities to engage employees and help them
destress.
5. Wellness Incentives: Companies can offer incentives such as discounts on gym
memberships, wellness classes, and healthy food options to encourage employees to make
healthier lifestyle choices.
6. Employee Assistance Programs: Firms can provide employee support programs that give
access to counseling and legal guidance to assist workers in dealing with personal or job-
related concerns.
7. Mental Health Days: Allowing employees to take mental health days off from work helps
to reduce stress and promote better mental health.
11. 11
Work Culture
1. Encouraging open communication: Open communication should be encouraged among
all levels of employees to ensure they feel heard and valued. This can be achieved through
team meetings, surveys, and informal conversations.
2. Promoting collaboration: Promote collaboration through activities such as group
projects, brainstorming sessions, and social events.
3. Celebrating successes: Celebrate successes, both big and small, to foster a feeling of
accomplishment and recognition. This can be done through rewards, awards, and
recognition programs.
4. Recognizing hard work: Recognize employees for their hard work and dedication. This
can be done through verbal and written acknowledgments, awards, and recognition
programs.
5. Fostering a positive work environment: A positive work environment should be
fostered through activities such as team-building exercises, social events, and recognition
programs.
6. Promoting work-life balance: Promote a healthy work-life balance by providing flexible
hours, remote work, and other benefits.
7. Providing feedback: Provide regular and timely feedback to employees to ensure they
are aware of their performance.
Communication
Effective communication and teamwork can have a significant impact on employee retention.
Here are some reasons why:
Builds trust and engagement: When employees feel that they are part of a team and have
open channels of communication with their colleagues and supervisors, If employees feel
connected and dedicated to their work, they are more inclined to be satisfied with their job
and remain loyal to the company, ultimately reducing the likelihood of quitting.
Facilitates problem-solving: Communication and teamwork are essential for solving
complex problems and making decisions. When employees work together, they can share
their perspectives and knowledge to find the best solutions to challenges. This can help
employees feel more invested in the success of the organization and less likely to leave.
12. 12
Fosters a positive work environment: Good communication and teamwork can create a
positive work environment where employees feel respected, supported, and valued. This can
lead to higher morale and job satisfaction, which can ultimately lead to higher retention rates.
Promotes learning and development: When employees work together and communicate
effectively, they can learn from each other and develop new skills. This can help employees
feel that they are growing and developing in their careers, which can increase their
commitment to the organization.
Overall, communication and teamwork are crucial components of a positive workplace
culture that can help to retain employees. Organizations that prioritize these areas are more
likely to have engaged, committed, and satisfied employees who are less likely to leave the
organization.
Training and development
Training and development for employee retention can involve a variety of activities. These
activities can include providing employees with the training and resources they need to excel
in their roles, offering feedback and coaching to help individuals develop their skills, and
creating opportunities for employees to gain new experiences and skills. Additionally,
employers can work to create a supportive and inclusive work environment that encourages
employees to stay with the organization. This may involve providing employees with flexible
work arrangements, promoting a work-life balance, and offering rewards and recognition for
employees who go above and beyond in their roles. Finally, employers should also focus on
creating meaningful relationships with their employees, as this can help to build loyalty and
encourage employees to stay with the company.
Recognition and rewards systems
1. Performance-Based Bonuses: Companies can reward employees with bonuses based on
performance. This reward system encourages employees to exceed expectations and
continuously improve their work.
2. Profit Sharing: Companies can share a portion of their profits with employees as a reward
for their hard work and dedication. This can be done through either a lump sum payment or
a split among employees.
13. 13
3. Stock Options: Companies can offer stock options to employees as a reward for their
performance. This gives employees the opportunity to become shareholders in the company
and benefit from its growth.
4. Recognition Programs: Companies can recognize employees for their hard work and
dedication through programs such as Employee of the Month or Excellence Awards. This
acknowledges employees for their contributions and encourages them to continue their good
work.
5. Flexible Working Hours: Companies can provide employees with flexible working hours
as a reward for their commitment and dedication. This allows employees to choose their own
hours and work-life balance.
6. Training and Development Opportunities: Companies can provide employees with
training and development opportunities such as seminars, conferences, and workshops. This
allows employees to increase their knowledge and skills, and keep up with the latest trends
in the industry.
Work-life balance
Maintaining a healthy balance between work and personal life is crucial for retaining
employees. When employees are able to achieve this balance effectively, they are more likely
to be productive, motivated, engaged, and satisfied with their job and employer. This leads to
increased job satisfaction and loyalty, resulting in lower turnover rates. Employers can promote
work-life balance by offering flexible working hours, providing generous vacation policies,
and offering work-from-home options. They can also provide support for employees to manage
stress, such as onsite counseling or mental health services. Additionally, employers should
make sure that their employees have the resources and tools they need to manage their
workloads while still having time to take care of their personal needs.
14. 14
LITERATURE REVIEW
A PAPER ON EMPLOYEE RETENTION STRATEGIES
Research paper by
M.S.Kamalaveni
S.Ramesh
T.Vetrivel
The paper under review emphasizes the importance of managing and retaining talented
employees by aligning HR strategies with organizational policies and practices. The
authors argue that retaining top-performing employees is critical for organizations to remain
competitive and successful in a dynamic business environment. The study reviews several
research papers and concludes that organizations must focus on factors that enhance employee
satisfaction and commitment to retaining their talented workforce.
The authors highlight that the effective management of talent is a significant challenge for
organizations. It is crucial to design policies and practices that are consistent with HR
strategies, including recruitment and selection, training and development, performance
evaluation, and compensation, to retain the most qualified employees. The study argues
that retention strategies that do not consider these factors would be ineffective.
The paper's findings are supported by several studies that the authors review. For instance, a
study by Saks and Gruman (2014) showed that job satisfaction, organizational commitment,
and employee engagement are crucial predictors of employee retention. Another study by Bock
and Kim (2002) revealed that employees' perception of fairness and equity in the workplace
significantly affects their job satisfaction and commitment.
The authors note that organizations are increasingly adopting various policies and strategies to
retain their talented employees. They highlight that retaining talented employees is critical to
avoid poaching by competitors and to survive in a dynamic environment. The authors argue
that organizations must focus on factors that enhance satisfaction and commitment among
employees to retain them. They note that such factors include providing opportunities for
growth and development, fair compensation, recognition, and a supportive work environment.
15. 15
The paper's conclusion suggests that the effective retention of talented and committed
employees requires a holistic approach that considers various organizational policies and
practices. The authors emphasize that organizations must align HR practices with their
retention strategies to retain the best employees successfully. They also highlight that
organizations must focus on enhancing employee satisfaction and commitment to retain their
talented workforce.
In conclusion, this literature review highlights the importance of retaining talented and
committed employees for organizational success. The paper emphasizes the need for
organizations to align their policies and practices with HR strategies to effectively retain
top-performing employees. The authors argue that organizations must focus on factors that
enhance employee satisfaction and commitment, such as growth and development
opportunities, fair compensation, recognition, and a supportive work environment, and
work culture, to retain their talented workforce.
16. 16
Research Topic
“Impact of employee retention strategies on job satisfaction of employees in an
organization”
Research Objectives:
• The objective of the study is to list down the various employee retention strategies and
analyze these strategies.
• To find out the extent to which it makes an impact on the job satisfaction of employees.
Research methodology -This research requires a definite and structured plan to find the impact
of various employee retention strategies on the job satisfaction of employees in an
organization.We will use primary data to conduct exploratory research using multiple
regression analysis to find out the Please evaluate the effectiveness of different strategies in
improving employee job satisfaction and determine which strategies have a greater impact on
enhancing job satisfaction.
The study is an empirical study and the target segment to collect the data will be IT
Professionals. The sampling method is convenient sampling and the data collected will be
mostly from different parts of the country by floating google forms and floating a structured
questionnaire. The data will then be analyzed with the help of Excel and SPSS
Research Framework:
The google form was shared with employees working in the corporate sector (IT). The sample
size was 178. The sampling method used is Convenient Sampling.
Data Collection: Primary Data (Survey)
Type of Research –Quantitative Research
Method of Data collection –Questionnaire Method
17. 17
Sources of Data –Collect real-time data through questionnaires and analyze the data collected
from the questionnaires.
Tool used for Analysis- The analysis of data collection is completed and presented
successfully and systematically with the use of Microsoft Excel, MS Word, and SPSS. The
various tools that were used for the analysis of the demographic factors were Bar Graphs, Pie
charts, and Column graphs and exploratory research Multiple linear regression was used with
the help of SPSS where the respondents were asked to rate 10 independent factors involved in
their job satisfaction.
Dependent Variable - Job satisfaction of employees in an organization
Independent Variables-
Onboarding and orientation
Mentorship programs
Employee compensation
Perks
Wellness offerings
Work Culture
Communication
Training and development
Recognition and rewards systems
Work-life balance (Flexibility)
18. 18
Response Analysis:
Interpretation
From the above pie chart, we can interpret that out of 178 respondents 107 were male and the
rest were female which were 71 in number.
Interpretation
The above pie chart shows that most of the respondents lie in the age-group of 24-28.
19. 19
Interpretation
The above pie chart shows the income range/month of the respondent. Out of all
respondents most of their income lies between 60,000-90,000 per annum.
Interpretation
The above pie chart shows that about 29% of the respondents feel that they are paid
fairly compared to others in the same type of position working elsewhere.
20. 20
Interpretation
The above pie chart shows that about 37% of the respondents feel that their onboarding and
orientation made them feel confident about their job.
Interpretation
The above bar graph shows that about 32% of the respondents feel that they are satisfied with
the mentorship programs held in the organization.
21. 21
Interpretation
The above bar graph shows that about 30% of the respondents feel that they are satisfied with
the perks that they get currently.
Interpretation
The above pie chart shows that about 34% of the respondents feel that there is teamwork and
cooperation in their organization.
22. 22
Interpretation
The above pie chart shows that about 30% of the respondents feel that their organization cares
about their physical and mental well-being.
Interpretation
The above pie chart shows that about 35% of the respondents feel that they get the recognition
that they deserve.
23. 23
Interpretation
The above bar graph shows that about 30% of the respondents feel that their organisation
support work-life balance.
Interpretation
The above pie chart shows that about 34% of the respondents feel that their organisation
encourages them to participate in training to improve skills and competencies.
24. 24
Interpretation
The above pie chart shows that about 31% of the respondents recommend their organization to
their friends/relatives/juniors as great place to work.
Interpretation
The above pie chart shows that considering overall about 33% of the respondents are satisfied
with their organisation.
25. 25
Multiple Linear Regression
Model Summary
In this study, multiple regression analysis has been used to find out the impact of employee
retention strategies on job satisfaction. The model summary shows that Adj R^2 value is .850
i.e.,85 percent of the dependent variable (Job satisfaction) is explained by the independent
variables (perks, recognition and reward system, training, and development, communication,
work-life balance) taken into consideration in the model.
Hypothesis Testing
Coefficients
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.
B Std. Error Beta
1 (Constant) .000 .111 .003 .998
Perks .353 0.68 .350 5.176 .000
Recognition and
reward system
.260 0.67 .256 3.884 .000
Communication .204 0.63 .207 3.241 .001
Work-life balance .173 0.85 1.65 2.042 .043
a. Dependent Variable: Considering overall, how much are you satisfied with your organization?
H1 – Perks significantly impact job satisfaction.
H2– Recognition and reward system significantly impacts job
satisfaction.
H3– Communication significantly impacts job satisfaction.
H4–Work-life balance significantly impacts job satisfaction.
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .924 .853 .850 .501
a. Predictors: (Constant), perks, recognition and reward system, training,
and development, communication, work-life balance
26. 26
Testing H1
According to the table, it can be concluded that Perks have a significant influence
on employee job satisfaction in the organization. This is supported by a Beta value
of .350 and a p-value of 0.000, which is lower than the significance level of 0.05.
Therefore, we can accept the alternative hypothesis (H1) that Perks have an
impact on job satisfaction.
Testing H2
From the table, the result shows that there is a significant impact of the Rewards
and recognition system on the job satisfaction of employees working in an
organization with Beta = .256 and a p-value of 0.000 which is less than 0.05. Thus,
we accept H2.
Testing H3
From the table, the result shows that there is a significant impact of
Communication on the job satisfaction of employees working in an organization
with Beta = .207 and a p-value of 0.001which is less than 0.05. Thus, we accept
Testing H4
Based on the table, it can be concluded that Work-life balance has a significant
effect on employee job satisfaction in the organization. The analysis shows a Beta
value of .165 and a p-value of .043, which is below the critical level of 0.05.
Therefore, we can accept the alternative hypothesis (H4) that Work-life balance
has a significant impact on job satisfaction.
Based on SPSS results, the Regression Model in the study of job satisfaction of
employees working in an organization is = .000(constant) + .353(Perks) + .260
Recognition and reward system) + .204(Communication) +.173(Work life
balance)
It can be interpreted that -
The job satisfaction of employees working in an organization has mainly been
impacted by four variables namely Perks, Recognition and reward system,
Communication, and Work-life balance)
27. 27
RESULTS & FINDINGS
The study used multiple regression analysis to identify which strategy had
the most impact, using ten influential factors as independent variables.
The study's results suggest that the reward system of Perks and Recognition
is the most important factor in determining employee job satisfaction within
an organization.
28. 28
RECOMMENDATIONS
The organisations must focus on their work culture, Wellness offerings, Onboarding
and orientation, Mentorship programs, Employee compensation and training and
development.
Constant improvement in these strategies can bring changes.
HR professionals must implement wellness schemes, mental health leaves, flexible
work schedules.
To improvise on Onboarding and orientation for C’s can be implemented i.e.,
compliance, clarification, culture and connection.
One to one mentoring sessions with superiors can help employees open up which can
help them to gain confidence. The plan and agenda of mentoring session must be made
clear by the HR professionals.
Compensation schemes should be reviewed timely, and it must be ensured that
employees are paid competitively. Following SMART goals can help organisation
achieve an even compensation distribution.
Employees should be given personalized recommendations to take up certifications and
courses to keep them updated with the changes in the industry.
29. 29
Annexure
1. Gender*
Male
Female
Other:
2. Age Group*
less than 18
18-24
24-28
28-35
Above 35
3.Income level*
0-10,000
10,000-30,000
30,000-60,000
60,000-90,000
Above 90000
4.The onboarding and orientation made me feel confident that I can do my job
well. *
Strongly disagree.
Disagree
Neutral
Agree
Strongly agree.
5.On a scale of 1-5, how much are you satisfied with the mentorship from the
internal members, or the mentoring programs held in your organization? (1-
highly dissatisfied, 5-highly satisfied)
*
1
2
3
4
5
6.I get paid fairly in the current position compared to others in the same type of
position working elsewhere.
*
Strongly disagree.
Disagree
30. 30
Neutral
Agree
Strongly Agree
7.On a scale of 1-5 how much are you satisfied with the perks that you get
currently? (1-highly dissatisfied, 5-highly satisfied)
*
1
2
3
4
5
8.My organization cares about my physical and mental well-being.
*
Strongly disagree.
Disagree
Neutral
Agree
Strongly Agree
9.There is a culture of teamwork and cooperation within your organization.
*
strongly disagree.
Disagree
Neutral
Agree
Strongly Agree
10.I am encouraged to participate in training to improve my skills and
competencies.
*
strongly disagree.
Disagree
Neutral
Agree
Strongly Agree
11.I get the recognition that I deserve for my performance.
*
Strongly disagree.
Disagree
Neutral
Agree
Strongly agree.
12.On a scale of 1-5, I would rate my organization for supporting work-life
balance. (1-Very low,5-Very high)
*
1
2
3
31. 31
4
5
13. On a scale of 1-5, how much are you satisfied with your organization? (1-
Highly dissatisfied,5-highly satisfied)
*
1
2
3
4
5
14. How likely are you to recommend your organization to my
relatives/friends/juniors as a great place to work?
Very unlikely
Unlikely
Neutral
Likely
Very likely
32. 32
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