A study on_the_retention_issues_at_metlife_india_insurance_co[1]
1. “A STUDY ON THE RETENTION ISSUES AT METLIFE INDIA
INSURANCE Co.Ltd.”
Project Report Submitted In Partial Fulfillment Of The Requirements Two
Year Post Graduate Diploma In Business Administration.
By
(Bency Babu)
Under the guidance of
(Prof. Smitha Sharma)
Mount Carmel Institute of Management Bangalore 560 052
2009-10
2. GUIDE CERTIFICATE
Certified that this dissertation is based on the original project study conducted by
(Bency Babu) under my guidance. She has attended all the required guidance
sessions held. This project report has not formed a basis for the award of any other
Degree/ Diploma of any University of Institution.
(Prof Smitha Sharma)
4. ACKNOWLEDGEMENTS
Apart from the efforts of me, the success of any project depends largely on the
encouragement and guidelines of many others. I take this opportunity to express my
gratitude to the people who have been instrumental in the successful completion of
this project.
I would like to show my greatest appreciation to the Director of MCIM-Sr Albina
for providing me the opportunity to do the project and our college Dean
(Academics)-Prof. Michael Noronha for the great support.
I would also like to thank Professor-Smitha Sharma who has been of a great
support to me by providing me with required guidance and direction to carry on
with the project.
In addition, my companies guide Mr. Purushothaman.k (Sr. Sales Manager) for
providing me the opportunity to work on this project. He always allowed me to
encroach upon his precious time and showed his generosity by helping me carrying
out my training smoothly.
I also convey my thanks to all those who have knowingly or unknowingly helped
me to give this report a realistic dimension.
5. LIST OF CONTENTS:
SR NO: CONTENTS PAGE NO:
CHAPTER 1
1.1 Introduction 9
1.2 Employee retention 10
CHAPTER 2
2.1 Introduction 17
2.2 Statement of the Problem
2.3 Scope of the Study
2.4 Objectives of the study
2.5 Operational Definitions
2.6 Methodology
2.7 Tools and Techniques
2.8 Limitation
2.9 Overview
CHAPTER 3
3.1 History
3.2 Functional structure
3.3 Organization Structure
3.4 SWOT Analysis
3.5
3.6
3.7
CHAPTER 4
6. 4.1 Analysis and Interpretation
CHAPTER 5
5.1 Summary of Findings, Conclusions and
suggestions
Bibliography
Annexure
8. CHAPTER 1:
HUMAN RESOURCE MANAGEMENT
1.1 INTRODUCTION
9. Human resource management (HRM) is the strategic and coherent approach to
the of management an organization's most valued assets - the people working there
who individually and collectively contribute to the achievement of the objectives of
the business. The terms "human resource management" and "human resources"
(HR) have largely replaced the term "personnel management" as a description of
the processes involved in managing people in organizations. Human Resource
management is evolving rapidly. Human resource management is both an academic
theory and a business practice that addresses the theoretical and practical
techniques of managing a workforce.
The Human Resources Management (HRM) function includes a variety of
activities, and key among them is deciding what staffing needs you have and
whether to use independent contractors or hire employees to fill these needs,
recruiting and training the best employees, ensuring they are high performers,
dealing with performance issues, and ensuring your personnel and management
practices conform to various regulations. Activities also include managing your
approach to employee benefits and compensation, employee records and personnel
policies. Usually small businesses (for-profit or nonprofit) have to carry out these
activities themselves because they can't yet afford part or full-time help. However,
they should always ensure that employees have -- and are aware of -- personnel
policies which conform to current regulations. These policies are often in the form
of employee manuals, which all employees have
1.2 Employee Retention:
10. Effective employee retention is a systematic effort by employers to create and
foster and environment that encourages current employees to remain employed by
having policies and practices in place that address their diverse needs.
A strong retention strategy becomes a powerful recruitment tool. Retention of key
employees is critical to the long-term health and success of any organization. It is a
known fact that retaining your best employees ensures customer satisfaction,
increased product sales, satisfied colleagues and reporting staff, effective
succession planning and deeply imbedded organizational knowledge and learning.
Employee retention matters as organizational issues such as training time and
investment; lost knowledge; insecure employees and a costly candidate search are
involved. Hence failing to retain a key employee is a costly proposition for an
organization. Various estimates suggest that losing a middle manager in most
organizations costs up to five times of his salary.
Intelligent employers always realize the importance of retaining the best talent.
Retaining talent has never been so important in the Indian scenario; however,
things have changed in recent years. In prominent Indian metros at least, there is no
dearth of opportunities for the best in the business, or even for the second or the
third best. Retention of key employees and treating attrition troubles has never been
so important to companies.
In an intensely competitive environment, where HR managers are poaching from
each other, organizations can either hold on to their employees tight or lose them to
competition. For gone are the days, when employees would stick to an employer
for years for want of a better choice. Now, opportunities abound.
11. It is a fact that, retention of key employees is critical to the long-term health and
success of any organisation. The performance of employees is often linked directly
to quality work, customer satisfaction, and increased product sales and even to the
image of a company.
Whereas the same is often indirectly linked to, satisfied colleagues and reporting
staff, effective succession planning and deeply embedded organizational
knowledge and learning. Employee retention matters, as, organizational issues such
as training time and investment, costly candidate search etc., are involved. Hence,
failing to retain a key employee is a costly proposition for any organisation.
WHAT IS EMPLOYEE RETENTION?
12. The picture states the latest statement that corporate believes in
“Love them or lose them”
Employee Retention involves taking measures to encourage employees to remain in
the organization for the maximum period of time. Corporate is facing a lot of
problems in employee retention these days. Hiring knowledgeable people for the
job is essential for an employer. But retention is even more important than hiring.
There is no dearth of opportunities for a talented person. There are many
organizations which are looking for such employees. If a person is not satisfied by
the job he’s doing, he may switch over to some other more suitable job.
In today’s environment it becomes very important for organizations to retain their
employees. The top organizations are on the top because they value their
employees and they know how to keep them glued to the organization. Employees
stay and leave organizations for some reasons. The reason may be personal or
professional. These reasons should be understood by the employer and should be
taken care of. The organizations are becoming aware of these reasons and adopting
many strategies for employee retention.
1.3 IMPORTANCE OF EMPLOYEE RETENTION:
Now that so much is being done by organizations to retain its employees, why is
retention so important? Is it just to reduce the turnover costs? Well, the answer is a
definite no. It’s not only the cost incurred by a company that emphasizes the need
of retaining employees but also the need to retain talented employees from getting
poached.
13. The process of employee retention will benefit an organization in the following
ways:
1. The Cost of Turnover: The cost of employee turnover adds hundreds of
thousands of money to a company's expenses. While it is difficult to fully calculate
the cost of turnover (including hiring costs, training costs and productivity loss),
industry experts often quote 25% of the average employee salary as a conservative
estimate.
2. Loss of Company Knowledge: When an employee leaves, he takes with him
valuable knowledge about the company, customers, current projects and past
history (sometimes to competitors). Often much time and money has been spent on
the employee in expectation of a future return. When the employee leaves, the
investment is not realized.
3. Interruption of Customer Service: Customers and clients do business with a
company in part because of the people. Relationships are developed that encourage
continued sponsorship of the business. When an employee leaves, the relationships
that employee built for the company are severed, which could lead to potential
customer loss.
4. Turnover leads to more turnovers: When an employee terminates, the effect is
felt throughout the organization. Co-workers are often required to pick up the slack.
The unspoken negativity often intensifies for the remaining staff.
5. Goodwill of the company: The goodwill of a company is maintained when the
attrition rates are low. Higher retention rates motivate potential employees to join
the organization
14. .
6. Regaining efficiency: If an employee resigns, then good amount of time is lost
in hiring a new employee and then training him/her and this goes to the loss of the
company directly which many a times goes unnoticed. And even after this you
cannot assure us of the same efficiency from the new employee.
1.4 WHAT MAKES EMPLOYEE LEAVES?
Employees do not leave an organization without any significant reason. There are
certain circumstances that lead to their leaving the organization. The most common
reasons can be: Job is not what the employee expected to be: Sometimes the job
responsibilities don’t come out to be same as expected by the candidates.
Unexpected job responsibilities lead to job dissatisfaction.
15. 1. Job and person mismatch: A candidate may be fit to do a certain type of job
which matches his personality. If he is given a job which mismatches his
personality, then he won’t be able to perform it well and will try to find out reasons
to leave the job.
2. No growth opportunities: No or less learning and growth opportunities in the
current job will make candidate’s job and career stagnant.
3. Lack of appreciation: If the work is not appreciated by the supervisor, the
employee feels de-motivated and loses interest in job.
4. Lack of trust and support in co-workers, seniors and management: Trust is
the most important factor that is required for an individual to stay in the job. Non
supportive co-workers, seniors and management can make office environment
unfriendly and difficult to work in.
5. Stress from overwork and work life imbalance: Job stress can lead to work
life imbalance which ultimately many times lead to employee leaving the
organization.
6. Compensation: Better compensation packages being offered by other companies
may attract employees towards themselves.
16. 7. New job offer: An attractive job offer which an employee thinks is good for him
with respect to job responsibility, compensation, growth and learning etc. can lead
an employee to leave the organization.
CHAPTER 2
17. DESIGN OF THE STUDY
2.1 INTRODUCTION:
Employee retention is a process in which the employees are encouraged to remain
with the organization for the maximum period of time or until the completion of the
project. Employee retention is beneficial for the organization as well as the
employee.
18. Employees today are different. They are not the ones who don’t have good
opportunities in hand. As soon as they feel dissatisfied with the current employer or
the job, they switch over to the next job. It is the responsibility of the employer to
retain their best employees. If they don’t, they would be left with no good
employees. A good employer should know how to attract and retain its employees.
Retention involves three major things:
COMPENSATION SUPPORT GROWTH
• Compensation:
Compensation constitutes the largest part of the employee retention process. The
employees always have high expectations regarding their compensation packages.
Compensation packages vary from industry to industry. So an attractive
compensation package plays a critical role in retaining the employees.
19. Compensation includes salary and wages, bonuses, benefits, prerequisites, stock
options, bonuses, vacations, etc. While setting up the packages, the following
components should be kept in mind:
Salary and monthly wage: It is the biggest component of the compensation
package. It is also the most common factor of comparison among employees. It
includes
Basic wage
House rent allowance
Dearness allowance
City compensatory allowance
Salary and wages represent the level of skill and experience an individual has. Time
to time increase in the salaries and wages of employees should be done. And this
increase should be based on the employee’s performance and his contribution to the
organization.
Bonus: Bonuses are usually given to the employees at the end of the year or on a
festival.
Economic benefits: It includes paid holidays, leave travel concession, etc.
Long-term incentives: Long term incentives include stock options or stock grants.
These incentives help retain employees in the organization's startup stage.
Health insurance: Health insurance is a great benefit to the employees. It saves
employees money as well as gives them a peace of mind that they have somebody
to take care of them in bad times. It also shows the employee that the organization
cares about the employee and its family.
20. After retirement: It includes payments that an Employee gets after he retires like
EPF (Employee Provident Fund) etc.
Miscellaneous compensation: It may include employee assistance programs (like
psychological counseling, legal assistance etc), discounts on company products, use
of a company cars, etc.
• Growth and Career
Growth and development are the integral part of every individual’s career. If an
employee can not foresee his path of career development in his current
21. organization, there are chances that he’ll leave the organization as soon as he gets
an opportunity.
The important factors in employee growth that an employee looks for himself are:
Work profile: The work profile on which the employee is working should be in
sync with his capabilities. The profile should not be too low or too high.
Personal growth and dreams: Employees responsibilities in the organization
should help him achieve his personal goals also. Organizations cannot keep aside
the individual goals of employees and foster organizations goals. Employees’
priority is to work for them and later on comes the organization. If he’s not satisfied
with his growth, he’ll not be able to contribute in organization growth.
Training and development: Employees should be trained and given chance to
improve and enhance their skills. Many employers fear that if the employees are
well rained, they’ll leave the organization for better jobs. Organization should not
limit the resources on which organization’s success depends. These trainings can be
given to improve many skills like:
Communications skills
Technical skills
In-house processes and procedures improvement related skills
C or customer satisfaction related skills
Special project related skills
Need for such trainings can be recognized from individual performance reviews,
individual meetings, employee satisfaction surveys and by being in constant touch
with the employees.
22. • Support
Lack of support from management can sometimes serve as a reason for employee
retention. Supervisor should support his subordinates in a way so that each one of
them is a success. Management should try to focus on its employees and support
them not only in their difficult times at work but also through the times of personal
crisis.
The feedback from supervisor helps the employee to feel more responsible,
confident and empowered. Top management can also support its employees in their
personal crisis by providing personal loans during emergencies, childcare services,
employee assistance programs, counseling services, et al.
Employers can also support their employees by creating an environment of trust
and inculcating the organizational values into employees. Thus employers can
support their employees in a number of ways as follows:
o By providing feedback
o By giving recognition and rewards
o By counseling them
o By providing emotional support
2.2 STATEMENT OF THE PROBLEM:
Retention is the major concerning issue in many of the organizations today.
Employee Retention involves taking measures to encourage employees to remain in
the organization for the maximum period of time. Corporate is facing a lot of
23. problems in employee retention these days. Hiring knowledgeable people for the
job is essential for an employer. But retention is even more important than hiring.
There is no dearth of opportunities for a talented person. There are many
organizations which are looking for such employees. If a person is not satisfied by
the job he’s doing, he may switch over to some other more suitable job. In today’s
environment it becomes very important for organizations to retain their employees.
The top organizations are on the top because they value their employees and they
know how to keep them glued to the organization. Employees stay and leave
organizations for some reasons. Thus it is important to know the reasons to reduce
attrition in the organisation.
2.3 SCOPE OF STUDY:
24. The project limits to only 1 branch of MetLife in Bangalore and the project was
accomplished with the complete support of all the printed materials required and
the information needed and a supportive staff.
2.4 OBJECTIVES OF THE STUDY:
• To study retention strategies implemented in MetLife
• To analyze employee perception on retention strategies
• To study factors which help in employee retention
• To study the drawback of current strategy used
• To develop new retention strategies
2.5 OPERTIONAL DEFINATION OF CONCEPTS:
i. Compensation
Compensation constitutes the largest part of the employee retention process.
25. The employees always have high expectations regarding their compensation
packages.
Compensation packages vary from industry to industry. So an attractive
compensation package plays a critical role in retaining the employees.
ii. Attrition rate:
Attrition rate/ churn rate is a measure of the number of individuals or items moving
into or out of a collection over a specific period.
It is a reduction in the number of employees through retirement, resignation or
death. Thus, we can see that attrition rate and retention rate are very closely related
and loosely speaking attrition rate is inverse of retention rate.
2.6 RESEARCH METHODOLOGY:
RESEARCH DESIGN: An exploratory research design is used for the project
SAMPLE SIZE : 50 respondents
SAMPLE DESIGN :
A Sample design is a definite plan for obtaining a sample from a given population.
It is the procedure used by the researcher in selecting items for the sample. Thus
Stratified Random Sampling technique is used.
2.7 TECHNIQUES OF DATA COLLECTION:
26. PRIMARY SOURCE:
• Personal discussions with HR manager
• Questionnaire
SECONDARY SOURCE:
• Journals
• Books
• Websites (given in the annexure)
2.8 LIMITATIONS:
• One constraint has been regarding the cost, as study involves the collection
of primary and secondary data. Therefore, the cost incurred was much more.
• Another constraint has been geographical area, which is confined only to
MetLife (M.G Road Branch.)
• Normally employees hesitate to disclose the information.
2.9 OVERVIEW OF THE CHAPTER SCHEME:
27. CHAPTER 1
Introduction of the Research Topic
CHAPTER 2
Design of the Study
CHAPTER 3
Profile of the Company
CHAPTER 4
Analysis and Interpretation
CHAPTER 5
Summary of Findings, Conclusions and Suggestions
29. 3.1 HISTORY:
MetLife: A Fortune 500 company in India. The Metropolitan Life Insurance
Company (MetLife ®), established in1868, is one of the largest insurers in the US,
with over US$ 2.4 trillion of life insurance. MetLife serves approximately 10
million individual households in the US as well as 88 of the Fortune 100
companies. MetLife’s institutional clients have approximately 33 million
employees and members. MetLife India Life Insurance Company Private Limited
was incorporated in India in 2001 as a joint venture between MetLife International
Holdings Inc., The Jammu and Kashmir Bank, M. Palling and Co. Pvt. Ltd. and
other private investors. MetLife India has developed and distributes a range of life
insurance products in India.
MetLife India is headquartered in Bangalore with offices and presence in major
Indian cities, and an additional 1000 outreach points through its channel partners.
MetLife India is driven by the principles of uncompromising integrity and the
highest level of professionalism. Its mission is to work with utmost integrity,
fairness and financial prudence in all its dealings.
The company has 600 employees, 3,000 commission agents and 300- 400 other
distributors. MetLife India has a capital base of US$ 35 million. Working towards a
goal of 5 million customers by 2010, MetLife India currently has more than
100,000 customers.
MetLife is a joint venture between its parent company, Metropolitan Life Insurance
Company (MetLife), Jammu and Kashmir Bank, M.Pallonji and Co. and other
private investors. MetLife, having 130-year-old reputation, is the largest Life
Insurance Company in the U.S. MetLife operates in 15 countries throughout
30. Americas, Europe and Asia and it serves approximately 9 million individual
households in the U.S as well as 87 of the Fortune 100 companies.
MetLife benefits from its parent company’s global presence in the field of
insurance, track record of establishing successful insurance operations in emerging
markets and the unique strengths of its other Indian promoters. MetLife,
headquartered in Bangalore, delivers value and world class service to customers
through its financial advisors and corporate sales representatives.
VISION:
“To be formidable player in the industry in the Indian Life Insurance Industry”
METLIFE CORE VALUES:
• INTEGRITY AND HONESTY
• INNOVATION
• PARTNERSHIP
MetLife Worldwide:
• Financially strong company
• A recognized brand name
31. • Serves 90 of 100 Fortune 500 companies
• Largest life insurer by sales
• A Fortune -39 company
• A 140 year old financial giant
• Assets> USD 580 Billion
• Trustworthy company -70 Million customers world wide
• Highest ratings by external agencies
3.2 FUNCTIONAL STRUCTURE:
MetLife’s sales function is divided into two functional structures within the
organization. These two Structures are: Banc assurance, Agency
Both types of structures are described as follows:
BANCASSURANCE OR BANCA: -
MetLife is a pioneer in offering life insurance solutions through banks and
alliances. Within a short span of two years, and with nearly a large number of
partners, B & A has emerged as a vital component of the company’s sales and
distribution strategy, contributing to approximately one third of company’s total
business. The business philosophy at B&A is to leverage distribution synergies
with their partners and add value to its customers as well as the partners.
Flexibility, adaptation and experimenting with new ideas are the hallmarks of this
channel. The business philosophy at B&A is to leverage distribution synergies with
its partners and add value to the business of both. Bancassurance Team include
32. Banks:
• The Jammu and Kashmir Bank
• Axis Bank
• Dhanalakshmi Bank
• Karnataka Bank
Corporate Agents:
• Karvy Consultants Limited
• Geojit Securities
• Way2wealth Consultancy
• Mini Muthoottu Bank
AGENCY:-Agency is the largest distribution channel of MetLife comprising a
large advisor force that targets various customer segments. The strength of agency
lies in an aggressive strategy of expanding and procuring quality business. With
focus on sales & people development, agency has emerged as a robust, predictable
and sustainable business model. Generally this advisors works under the leadership
33. of sales manager, who motivate them in every step by providing training and
guidance to them, usually each sales manager have 20 to 30 advisors under them.
• Branch Sales Manager (BSM)/ Area manager
• Agency Manager(AM)
• Sales Manager (SM)
Advisors:- Advisors are the people who are the regular employees of the
METLIFE, Commissioned agents are also a part of agency but they are not the
regular employees of the company and are being paid for insuring peoples with
MetLife’s traditional and nontraditional insurance policy.
34. 3.3 ORGANIZTIONAL STRUCTURE:
MANAGING DIRECTOR
HUMAN
ACTURIAL COMPLIANCE AGENCY MARKETING
RESOURCES
STATUTORY INERNAL REGIONAL REWARDS AND BRAND MGMT
VALUATION CONTROL AGENCY SALES PERFORMANCE
INDIVIDUAL REGIONAL HR CHANNEL
BOARD AFFAIRS
PRICING CORE AGENCY MKTG
GROUP AGENCY INTERNAL
IRDA RECRUITMENT
BUSINESS STRATEGY COMM.
PAYROLL GOVT.
GAAP RBI SALES TRAINING
SERVICES RELATIONS
Fig: 1
BANGALORE AGENCY:
MetLife Bangalore branch is divided into three agency headed by one agency
manager with senior sales managers and sales managers in their individual team.
35. Then the sales manager appoint financial advisors who work as the agents for the
company. The multiple distribution channels will help an insurance company to
offer a range of contact points to the customer, thereby increasing the chances of
success.
However, along with these distribution channels comes the challenge of
'relationship management'. Since most of the new channels involve collaboration
with various entities whose demands and powers of negotiation are varied, it
requires delicate skills on the part of the insurance company to manage these
relationships. Effective management of channel conflict, and curtailing the costs of
distribution will be of utmost importance. The advisory agents undergo proper
training prior to join the organization in assigned branches.
3.4 SWOT ANALYSIS:
36.
37. CHAPTER 4
ANALYSIS AND INTERPRETATION
4.1 ANALYSIS AND INTERPRETATION OF DATA:
This chapter analysis the data collected with respect to the objectives of the project
and draws appropriate inferences there from
38. Objective 1: To study the retention strategies implemented in MetLife
TABLE 1: For how long have you been working in MetLife?
NUMBER OF YEARS NUMBER OF
RESPONDENTS
3-4 YEARS 35
2-3 YEARS 10
1-2 YEARS 3
<1 YEAR 2
GRAPH 1:
INFERENCE:
The graph(1) shows that there are 35 employees who have been working in
MetLife for almost 5 years and only 5 have joined within a time span of 1-2 years.
39. TABLE 2: Are you satisfied with your current job?
OPTIONS NUMBER OF RESPONDENTS
YES 45
NO 5
GRAPH 2:
INFERENCE:
The graph (2) shows that maximum numbers of employees are satisfied with the
job in MetLife and only 5 employees are dissatisfied.
ANALYSIS:
The company takes ample measure to retain their employees in the organization for
the company to grow in all ways.
40. The major issue faced by all employees in all jobs is the growth career and it is
resolved only through identification of proper adequate training needs and
implementing it.
MetLife always initiates training requirements and supports the employees. The
main aim of MetLife is to equipping the employees to become an all –round sales
professional through world class training and coaching. This training support is
done through:
• Product and Process training
• Sales Personality development
• Skills training
• Professional courses
Sales and Entrepreneurship Programme (STEP): a half day training intervention
program was introduced to ensure consistent knowledge and skill development of
sales management.
MetLife Management Induction school Program (MMIS): was introduced to train
all the employees in Management issues faced in the organization as their day to
day activities.
“In an organization every employee tends to rise to his level of incompetence thus
work is accomplished by those who have not reached their level of incompetence.”
41. In order to incentivize each one of the employees a whole new Recruitment
Rewards and Recognition Program (R&R) is been launched.
The R&R includes Monetary and the Non Monetary benefits such as
• Free training camps
• Free coupons for the Month end
• Free service ( free insurance life policy)
• Awards and certificates
• Medal of honor for the excellent performance of the year
Launch of long term retention programmes for both managers and the employees is
the initiative taken in this current year by the Director Mr. Samal Bansal.
The goal sheets have been simplified in order to provide the employees with an
opportunity to aspire for better and higher achievements. The agency structure also
has been simplified to enable faster decision making and career progression.
MetLife conducts monthly all round meetings with all its employees and managers
for discussing the current issues faced by them in the organization for
implementing the transparencies in the working of the organization.
Job rotation is on employee need basis and the need for the organization for both in
the benefit of the employee as well as the managers.
The hirechial structure is becoming quite narrow and the manager needs to handle
only 4-5 employees in a row, which speeds up the decision-making process and
makes the employees happy, as they need not report to many managers at a time.
42. The work is also inclusive of incentive-based structure as and when clients are
increased, the monetary benefits are raised to the next level.
Objective 2: To analyze employee perception on retention strategies
43. TABLE 3: Do you think MetLife does consider retention issues seriously?
OPTIONS NUMBER OF RESPONDENTS
YES 45
NO 5
GRAPH (3):
INFERENCE:
As shown in the graph (3) the employees feel that the managers are making ample
measures to safeguard the interest of the employees in the organization and it
makes the employees happy and satisfied to work in MetLife.
TABLE 4: Is MetLife flexible when it comes to modifying its strategies?
RESPONSE NUMBER OF
44. RESPONDENTS
FLEXIBLE 40
NOT VERY FLEXIBLE 5
RIGID 5
GRAPH (4):
INFERENCE:
As shown in the graph (4) 40 employees feel that the strategies implemented are
quite flexible in nature and can be modified as per the results achieved by the
organization and only five employees feel it is rigid.
TABLE 5: Do you have the authority to take part in the formulation of retention
strategies?
45. OPTIONS NUMBER OF RESPONDENTS
YES 40
NO 10
GRAPH 5:
INFERENCE:
As shown in the graph (5) majority of the employees have the authority to have a
say in the affairs of the company rewards and recognition policy.
ANALYSIS:
MetLife is an organization that endeavors in equal participation of employees as
well as the employers in the functioning of the company for its future existence and
for the goodwill of the company.
46. This also helps the employees in building good rapport between the management
and the staff in order to create a congenial atmosphere to work in.
A good relation with the manager and the peers is one of the factor which tends to
make the employees stick to the organization for a longer period of time and thus
resulting in reduction of attrition rates.
Objective3: To study factors which help in employee retention
47. TABLE 6: Rate the factors in a scale of (1-4) for you to retain in MetLife
(lowest to highest)
OPTIONS NUMBER OF
RESPONDENTS
FLEXIBILITY 5
PAY PACKAGE 25
GROWTH OPPURTUNITY 15
RELATIONSHIP WITH PEER 5
AND MANAGER
GRAPH (6):
INFERENCE:
As shown in the graph (6) pay package and growth opportunities are the most
important factors that motivate the employees to stay in the organization
48. ANALYSIS:
The most important factor pertaining to employees is the pay package and the
growth career in their lives. These two factors gives them satisfaction and personal
growth and development to climb the ladder in the corporate world.
The flexibility is the secondary factor that helps in maintains a balance between the
professional and the personal life of the employees. It can be possible if the work is
done from home or there is shift timings whichever is comfortable to the employees
and the work is not hampered in any of the ways.
The relationship with the manager and the peers is also a very crucial factor as the
behavior and the integrity of the employee is known and analyzed in this factor.
This helps the work to be done in a cordial and friendly manner that results in
proper understanding and avoids conflicts and chaos in an organization.
The work culture and the work behavior is maintained.
Objective 4: To study the drawback of current strategy used
TABLE 7: Do you think the current strategies used with respect to Retention are
motivating the employees to stay in the organization?
49. OPTIONS NUMBER OF RESPONDENTS
YES 40
NO 10
GRAPH 7:
INFERENCE:
As shown in the graph (7) majority of the employees are satisfied with the current
strategies used in the organization and that is the reason the attrition rate is too low.
Only 10 employees feel that there needs to be changed with respect to flexibility in
timing i.e. work from home can be introduced if required.
TABLE 8: Do you feel there needs to be a change in the retention Policies
undertaken?
50. OPTIONS NUMBER OF RESPONDENTS
YES 10
NO 40
GRAPH 8:
INFERENCE:
51. As shown in the graph (8) maximum employees do not need any change in the
retention strategies in the organization, as they are able to balance their professional
with their personal life.
ANALYSIS:
The employees in MetLife feel that the strategies used are quite acceptable to them
with only the rigidness of timings and the implementation of shift timings would be
an alterations in the policies.
Objective 5: To develop new retention strategies
52. • Implementation of the shift timings and the flexibility of work from home
will be a new way to make the employees build a balance between the
personal and the professional life which will result in the reduction of
attrition rate.
• Fun activities, games to be organized so that employees feel the ease in the
work pressure and tend to come to work happily and thus feel contended and
satisfied.
• No uniforms to be implemented so that employees are free to wear their
choice and are more adaptable to changes in a positive manner
• Attainable targets to be formulated and given to the employees to be
achieved.
• Personal counseling to be provided to all the employees so that they feel de-
stressed and relaxed to work
53. CHAPTER 5
SUMMARY OF FINDINGS, CONCLUSIONS
AND SUGGESTIONS
5.1SUMMARY OF FINDINGS:
54. The findings include the following:
• High salaries and incentives is the primary tool for employee retention. Most of
the companies attract the employees by paying them high salaries and other
incentives time to time. Monetary packages are able to attract and retain talent,
however, in long run it becomes limiting for the organization to pay huge cash.
• The best and foremost HR practice to retain employees is proper and tangible
recognition and appreciation to employees for their individual performance.
The tools like employer of the year/month, best performer/trainee of the project
etc are those appreciations that not only retain employees but also encourage
them for better performance.
• For employee satisfaction, the most important aspect to take care by the
organization is that the job profiles offered should match with individual
capabilities and aspirations. This makes the employee feel satisfied and glad in
his job.
• Better work culture is also very important where the relationship between
employee and employer is such that individual problems and conflicts are
properly addressed with time.
• Excellent career growth should be provided to the employees to move on the
vertical ladder of organizational hierarchy. The most common reason for
leaving
55. the job is the expectation of higher level of responsibility and position.
• Work-life balance initiatives are important. Innovative and practical employee
policies pertaining to flexible working hours and schemes, granting
compassionate and urgency leave, providing healthcare for self, family and
dependants, etc. are important for most people. Work-life balance policies
would have a positive impact on retaining skilled employees, as well as on
attracting high-caliber recruits.
• Organized training, counseling and development programmes for employees
also used to motivate them for their work. Best performers should be
encouraged to share their experiences with others and guide others. The
emphasis is to create the desire to learn, enjoy and be passionate about the work
they do.
56. CONCLUSION:
As employees are the bases for company so retention of employees is a major focus
for HR department. The management should identify the important factors that
affect retention and should take necessary measures to improve these. Also, the
management should take appropriate measure to identify the reasons of employee
voluntarily leave.
It is only the employees that implement and give tangibility to the corporate
mission. In other words if it is the highest rung in the corporate hierarchy that has
ideas, it is the employees’ rung that has the chisel to bring the vision to life.
In the best of worlds, employees would love their jobs. Like their co-workers, work
hard for their employers, get paid well for their work, have ample chances of
advancement and flexible schedules so they could attend to personal or family
needs when necessary. And never leave. But then there’s the real world. And in the
real world, employees, do, leave, either because they want more money, hate the
working conditions, hate their co-workers, want a change, or because their spouse
gets a dream job in another state.
Unlike inanimate products and systems that subject themselves to fine tuning
without any reaction, employees would not subject themselves to any measure
taken without reaction and analysis. Hence managing human resources, particularly
retaining them, is an art that calls for special skills and strategies.
Employee survey and exit interviews can be used for assessing the reasons of
employee voluntarily leave. HR interventions such as improving selection process,
57. effective orientation and training, better employee relation, better career
development programs and planning etc should be used to improve employee
retention.
SUGGESTIONS:
1. Following steps/ efforts should organization take to retain its employees:
o Lucrative opportunities
o Implement good employment practices
o Maintain healthy organizational climate
o Proper training should be provided to employees according to their skills
o Proper salary structure should be there.
2. Need to restructure company’s policy and follow certain process to overcome
problems.
3. Should make a hierarchy for various positions.
BIBLIOGRAPHY:
58. (A) BOOKS:
• Gupta Shashi K. & Joshi Rosy, Human Resource Management, Tata
McGraw Hill, Fourth Revised & Enlarged Edition, 2007. (Page 20.9-20.14)
• KOTHARI C.R., Research methodology, New Age Publishing House,
Second Edition.
(B) WEBSITES
• www.google.com
• www.yahoo.com
• www.scribd.com
Annexure:
59. Questionnaire:
Name :
Designation :
Q.1) For how long have you been working in MetLife?
a) 3-4 years
b) 2-3 years
c) 1-2 years
d) < 1 year
Q.2) Are you satisfied with your current job?
a) Yes
b) No
Q.3) Do you think MetLife does consider retention issues seriously?
a) Yes
b) No
Q.4)Is MetLife flexible when it comes to modifying its strategies?
a) Flexible
b) Not very flexible
c) Rigid
60. Q.5) Do you have the authority to take part in the formulation of retention strategies?
a) Yes
b) No
Q.6) Rate the factors in a scale of (1-4) for you to retain in MetLife(lowest to highest)
a) Flexibility in job timing
b) Pay package
c) Growth opportunities
d) Relationship with the peers and the managers
Q.7) Do you think the current strategies used with respect to Retention are motivating
the employees to stay in the organization?
a) Yes
b) No
If No, specify which strategy.....................................................................
Q.8) Do you feel there needs to be a change in the retention Policies undertaken?
a) Yes
b) No
