A STUDY ON EMPLOYEE RETENTION IN PL.A GROUP OF COMPANIES

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Ms. M. Buela Rose and Ms. Leema Rose, “A Study on Employee Retention In PL.A Group of
Companies” – (ICAM 2016)
A STUDY
A STUDY ON EMPLOYEE RETENTION IN PL.A GROUP OF COMPANIES
Ms. M. Buela Rose
Assistant Professor, Department of Management Studies,
K. Ramakrishnan College of Engineering Samayapuram, Trichirappalli
Ms. Leema Rose
Student: I MBA,
K. Ramakrishnan College of Engineering, Samayapuram, Trichirappalli
ABSTRACT
Employee retention is the foremost problem; which all organizations are now facing in
the global competitive environment. In this conceptual paper, I have attempted to bring out
some employee retention approaches, which have developed over a period of time. Retention
strategies for knowledge workforce, for achieving competitive advantage are also
highlighted. Employee Retention refers to the ability of the organization to retain its
employees and it's emerging as a big challenge to organizations. Organization culture, pay
and remuneration, flexibility and job satisfaction highly influence the retention rate for any
company. Retention of employees is an important function of the HRM. Unless there is a
deliberate and serious effort from the management towards this direction, the competitors in
the industry are likely to attract and snatch the talent already nurtured in the company over a
period of time. Careful strategies for crafting and implementing employee retention strategies
are a skill and should be given top priority by the management. The retention of knowledge
worker has become extremely critical for the success of a business organization in the present
scenario especially in the service sector with lot of people interface. HR department has to
play a key role in designing the policies, practices and strategies, which can enable an
organization to retain the human resources contributing significantly to the business. The t-
test, annova, chi square test and correlation test is used for evaluation of the data.
Cite this Article: Ms. M. Buela Rose and Ms. Leema Rose. A Study on Employee Retention
In PL.A Group of Companies. International Journal of Management, 7(2), 2016, pp. 385-395.
http://www.iaeme.com/IJM/index.asp
1. INTRODUCTION OF EMPLOYEE RETENTION
1.1. Employee Retention
Employee retention refers to the ability of an organization to retain its employees. Employee retention
can be represented by a simple statistic (for example, a retention rate of 80% usually indicates that an
organization kept 80% of its employees in a given period). However, many consider employee
retention as relating to the efforts by which employers attempt to retain employees in their workforce.
In this sense, retention becomes the strategies rather than the outcome.
In a Business setting, the goal of employers is usually to decrease employee turnover, thereby
decreasing training costs, recruitment costs and loss of talent and organisational knowledge. By
INTERNATIONAL JOURNAL OF MANAGEMENT (IJM)
ISSN 0976-6502 (Print)
ISSN 0976-6510 (Online)
Volume 7, Issue 2, February (2016), pp. 385-395
http://www.iaeme.com/ijm/index.asp
Journal Impact Factor (2016): 8.1920 (Calculated by GISI)
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IJM
© I A E M E

International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 -
6510(Online), Volume 7, Issue 2, February (2016), pp. 385-395 © IAEME Publication
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implementing lessons learned from key organizational behavior concepts employers can improve
retention rates and decrease the associated costs of high turnover. However, this isn't always the case.
Employers can seek "positive turnover" whereby they aim to maintain only those employees who they
consider to be high performers.
In a time of demographic change the binding of employees is especially important for the survival
of companies. Today firms should recognize that the number of workers in absolute terms is falling.
Companies should take measures in advance and set up a systematic retention management, which is
becoming a major issue for many businesses. A manager should keep in mind: "getting good staff is
only half of the battle; the other half is keeping them".
1.2. Definition of Retention Management
The workforce planning for Wisconsin State Government (2005) defines retention management as “a
systematic effort by employers to create and foster an environment that encourages
current employees to remain at the same employer having policies and practices in place that address
their diverse needs”.
1.3. Objectives and Principles of Retention Management
Retention management focuses on the effective system of measures that lead to retention of employees.
It includes all activities that systematically influence the binding, performance and degree of loyalty of
staff.
David J. Forrest (1999) defines 5 basic principles of retention management, that lead to successful
employee performance and satisfaction, and therefore to their retention.
First of all, employees need to feel they are appreciated, valued and trusted. It is about respecting
people and their contributions to the company effort.
The second principle is development. Employees who participate in their own growth and
development plans are going to stay with the company because they know their company wants more
for them.
The next principle is growth in responsibility. Most people want to grow and to feel more
competent and more responsible, at any level. A good company helps people manage themselves by
consistently focusing on performance and results. The manager teaches the employee what they are
good at, what else they need to know and how to get it. As they grow they receive higher levels of
responsibility and accountability. This attitude also encourages innovation and creativity.
The fourth principle is a good relationship with the manager. The supervisor represents the
personal experience of a corporation of employees and therefore reflects, for better or for worse, its
underlying attitudes toward them.
The fifth principle is success. The valued and successful employee stays. This implies, of course,
that the work is meaningful to the corporate enterprise. The strong employer rewards employees for
helping to make others successful as well.
As a result a company expects from its staff power, loyalty and willingness to stay in the company.
Employees expect a fair treatment and a personal appreciation, which lead to the efficiency of retention
management.
2. THE PROCEDURE OF RETENTION MANAGEMENT
The procedure of retention management consists of six steps:
1. Identification of the target and actual needs of the staff
2. Analysis of the fluctuation risk of the staff
3. The Analysis of factors of Motivation/Demotivation of the retention group
4. Identification of the targeted measures
5. Implementation of the measures
6. Evaluation of the measures

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2.1. Step 1: Identification of target and actual needs of the staff:
The starting point is the corporate strategy and business objectives. The product, market or
organisational goals of the company can help to identify strategic staffing needs and the strategic
relevant skills of employees.
2.2. Step 2: Analysis of the fluctuation risk of staff:
In step 2, the HR manager is interested in the degree of the fluctuation risk. First, it is important, to
analyse the common portfolio of the potentials and performance of the employees. In large companies,
this could be done through a management audit. In small businesses this can be clarified with an
employee interview. This gives the manager information about the power structure in the relevant
group. But this information is not enough to estimate the probability of fluctuation. It is also necessary
to consider the demand for the relevant skills in the labor market. When a manager combines the
results of the analysis he can identify three risk categories, which would cause a priority for the
retention management:
 Those employees, who are in great demand in the labor market and who have a high capacity,
are the key target group for retention management measures.
 Those employees, who perform well and whose skills are somewhat in demand in the labor
market, have a mean fluctuation risk. Depending on the corporate strategy they are the second
important target group for retention management measures.
 Employees that have skills that exist in large numbers in the labor market and who also who
perform well are currently not a relevant retention target.
2.3. Step 3: Analysis of factors of Motivation/Demotivation of the retention group:
Now motivators and demotivators must be found in the identified retention target group. The
motivators must be taken into account and demotivators must be removed with the help of appropriate
measures, to ensure that the employees develop affective commitment. Motivators and demotivators
can be estimated from the outcome of questionnaires. Subsequently a Motivation/Demotivation profile
of the retention target group should be formed.
2.4. Step 4: Identification of the targeted measures:
The various measures of human resource management relate to different motivational factors. These
connections can be used to create a specific matrix in which the action areas of personnel management
and appropriate measures will be brought together with the motivational factors.
2.5. Step 5: Implementation of the measures:
After the analysis measures will be implemented. Here are some important aspects:
 Conceptual foundations: The measures must be defined and applied according to clear rules,
in this context ad hoc measures lead only to short-term success with negative cultural impact.
 Cultural fit: Measures must be in accordance with the corporate culture and the existing
Management tool system For example, a variable compensation system makes little sense
without a performance appraisal system!
 Marketing personnel action: The application of the measures must be accompanied by internal
communication. Only then the efforts of a retention manager will be perceived!
 Retention factors: By the design and implementation of retention management policies respect
and transparency must be taken into account. Only when these measures convey these values,
they will have great influence!
2.6. Step 6: Evaluation of the measures:
After the implementation of the measures it is necessary to assess the success of the activities. This can
be achieved by comparing the results to the objectives that were set in the retention management
strategy. After the expiry of the defined period and after application of the retention policies the
manager can check how the objectives were achieved. For example, if the objective was that 80% of
the defined strategically relevant staff should be in business at time X, then the manager can determine

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whether this ratio was reached at time X, and whether it was exceeded or not exceeded. From this
statement the manager can derive new measures and draw conclusions about the practice of the concept
of retention management. Important conditions for the success of retention management are on the one
hand, human resource management in the company, and on the other hand project management of the
implementation of retention management.
3. HERZBERG’S THEORY
An alternative motivation theory to Maslow’s Hierarchy of Needs is the Motivator-
Hygiene (Herzberg’s) theory. The theories have overlap, but the fundamental nature of each model
differs. While Maslow’s Hierarchy implies the addition or removal of the same need stimuli will
enhance or detract from the employee’s satisfaction, Herzberg’s findings indicate that factors garnering
job satisfaction are separate from factors leading to poor job satisfaction and employee turnover.
Herzberg’s system of needs is segmented into motivators and hygiene factors. Like Maslow’s
Hierarchy, motivators are often unexpected bonuses that foster the desire to excel. Hygiene factors
include expected conditions that if missing will create dissatisfaction. Examples of hygiene factors
include bathrooms, lighting, and the appropriate tools for a given job. Employers must utilize positive
reinforcement methods while maintaining expected hygiene factors to maximize employee satisfaction
and minimize retention.
4. RETENTION STRATEGIES – DEFINITION
Any employee retention strategy would necessarily include a plan for redressing employee grievances
and ways and means to address employee issues. This would mean that the employees would be
enabled to take their issues regarding pay, their work, their role etc. to the HR manager for each
division and expect to get a fair hearing in the process. There should be a plan where the HR manager
in conjunction with the manager of the employee who has raised the issue works towards resolving the
issue.
5. COMPONENTS OF A RETENTION STRATEGY
Taking each of these strategies in turn, job rotation is the practice of moving the employees around
divisions and within divisions with a clear emphasis on making sure that they operate in domains other
than the ones assigned to them initially. This would mean that the employees get trained on
competencies beyond that of their assigned plant and this would lead to greater motivation to pick up
additional skills and motivate them to perform better. The importance of grievance redressal and
mitigation cannot be emphasised more. This is the most critical and crucial component of the HRM
plan as research has shown that an employee with pending issues awaiting resolution is twice more
likely to quit the company than the other employees. Hence, all efforts must be made to redress the
grievances of the employees.
6. GRIEVANCE REDRESSAL
An effective retention strategy would focus on preventing as well as addressing grievances . Though it
is not the contention that all grievances can be prevented, they can be “pre-empted” by actively
listening to the employees from time to time. This strategy of “listening” to the employees would
revolve around a concept of “one-one” meetings between the employees and the manager and
employees and the HR representative for the unit or division. The idea of the regular “one-one”
meetings would be to identify potential causes of friction among the employees and any issues they
may have vis-à-vis their job and benefits. These issues need to be brought out into the open before they
become contentious resulting in the employee feeling frustrated and quitting the job. Hence, all efforts
must be made to identify sources of employee dissatisfaction and “hygiene factors” that must be taken
care of for proper functioning of the employees.
7. WAYS TO MITIGATE JOB DISSATISFACTION
Management theorists often emphasise the fact that one of the reasons for low employee morale in
organizations is the fact that the employees and often feel alienated and cut off from the larger purpose.
The contention is that the employees feel themselves to be part of an impersonal setup and perceive
themselves to be unable to make a difference to the whole unit. Hence, there is a need to involve the
employees in the larger picture and provide them with perspective on the bigger picture. In engineering
units with assembly line manufacturing, the engineer is often responsible for his or her part of the chain

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and is not in a position to relate to the bigger picture. Hence, there should be effective strategies like
job rotation, interaction with other units, timely promotions and cross functional teams wherein the
engineers would feel themselves to be contributing to the larger goal of the company.
8. SEVEN WAYS TO IMPROVE EMPLOYEE RETENTION
8.1. Hire for "Fit"
One of the best ways to improve employee retention is to make sure you are hiring the right people to
start with. This involves going beyond making sure that you are hiring people who have the necessary
skills, but also ensuring that you're hiring people who are a good fit for the culture of your
organization.
According to CNN Money, companies should communicate information about company culture
early in the recruitment process, using psychometric assessments to determine key characteristics and
have prospective hires interview with several people across the organization.
8.2. Leadership Development
According to Forbes.com, manager behaviors play a major role in employee retention. The way that
employees feel about their managers - and company leadership as a whole -has a huge impact on
whether or not they decide to stay or leave. Those who feel micro managed and who view management
as unappreciative or unwilling to listen to them tend to feel dissatisfied, and are thus inclined to leave.
Providing leadership development training to supervisory employees to make sure they know how
to build a strong team and create a positive environment that meets the needs of workers can go a long
way toward boosting retention.
8.3. Performance Appraisals
Employees want to know how they are doing in their jobs and to be clear on what is expected of them.
Those who don't get such feedback may start to feel lost, become disengaged and start to think about
leaving.
Companies that want to improve retention are well-served by implementing a formal, performance
evaluation system as a tool for improving retention that includes frequent performance-related
communication between employees and managers as well as completing formal employee evaluation
forms periodically.
8.4. Recognition Programs
Recognizing employees for their contributions and accomplishments can go a long way toward
boosting employee retention. According to World at Work: The Total Rewards Association, companies
that utilize formal employee recognition programs have worker satisfaction ratings double that of
companies that do not have such programs in place, resulting in a positive impact on employee
retention.
These programs can take many forms, from recognizing years-of-service with plaques
and promotional items to publicizing employee accomplishments in company newsletters to
providing incentives for outstanding accomplishments and more.
8.5. Employee Training
Providing employees with access to job-related training opportunities can have a powerful impact on
retention. According to HCareers.com, providing employee training can increase retention by as much
as 70 percent.
Some of the impact can be attributed to the fact that teaching people how to do their jobs can have
an impact on how effectively they perform, thus reducing performance-related terminations as well as
employees who decide to leave because they don't feel comfortable with what they are doing.
Additionally, when a company is willing to invest in employee development, workers are likely to feel
valued and appreciated.

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8.6. Promote from Within
Companies that exhibit a willingness to promote employees from within often enjoy higher employee
retention rates than those who do not. Employees who want to move up are simply not likely to stay in
jobs where they do not feel that advancement is a possibility.
Even if you have a policy that allows and encourages internal promotions, employees are not likely
to see advancement as a real opportunity if they don't see the organization making decisions to promote
from within.
8.7. Employee Benefits
Offering a comprehensive benefits packages can play a major role in improving employee retention. In
a2012, more than 60 percent of employees who reported satisfaction with benefits also reported feeling
loyal to their employers, something that The Society for Human Resource Management(SHRM) sees
as an indicator of just how critical benefits packages are to employee retention.
Microsoft Business recommends finding out what kinds of benefits are important to the members of
your workforce and designing packages that meet those needs.
9. EMPLOYEE RETENTION STRATEGIES FOR A HIGH PERFORMANCE
ENVIRONMENT
1. Hire retainable employees
2. Plan careers, don’t fill roles
3. Make retention personal
4. Get to the heart of underperformance
10. NEED FOR THE STUDY
 To understand the employees knowledge, ability, and skills.
 To know the retention method of the organization.
 To know about the effort taken by the organization to implement the retention techniques.
11. SCOPE OF THE STUDY
 This study belongs to the area of Human Resource management specification.
 This study restricts to Employee Retention towards PL.A Group of companies.
 This study result can be applicable to all similar type of the leather quality assurance& control
business organizations.
12. OBJECTIVE OF THE STUDY
12.1. Primary Objective
A Study on Employee Retention in “PL.A Group of companies”, Trichy.
12.2. Secondary Objective
 To find the reason for Employee Retention in “PL.A Group of companies”
 To analyze how the employees retained in the organization.
13. RESEARCH DESIGN
Descriptive research design has used for this study. The study shows the Employee Retention in “PL.A
Group of companies”
13.1. Sources Of Data
Primary data has used for this study.

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13.2. Sample Area
The sampling area is Trichy city.
13.3. Sample Size
The Size of the sample is 100.
13.4. Period Of Study
Limited period of time for this study
13.5. Type Of Survey
The researcher has used convenience sampling method.
13.6. Research Approach
Questionnaire survey method was adopted for completing the data collection in this research.
13.7. Tools Used For Analysis
 ANOVA
 Correlation
 T- Test
 Chi- Square Test
 Percentage Analysis
13.8. Tools Used For Presentation
 Bar Chart
 Pie Chart
14. HYPOTHESIS
1. There is a significant association between the age of the respondents and employee retention
strategies in various dimensions.
2. There is a significant association between the experience of the respondents and employee
retention strategies in various dimensions.
3. There is a significant association between the training program of the respondents and
employee retention strategies in various dimensions.
4. There is a significant association between the monthly income of the respondents and
5. There is a significant difference between the gender of the respondents and employee
6. There is a significant difference between the marital status of the respondents and employee
7. There is a significant difference between the educational qualification of the respondents and
8. There is a significant difference between the type of family of the respondents and employee
9. There is a significant difference between the domicile of the respondents and employee
10. There is a significant difference between the designation of the respondents with regard to
11. There is a significant difference between the department of the respondents with regard to

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15. LIMITATION OF THE STUDY
 The duration of the study is limited.
 The Results are based on Trichy city.
 The study on limited to 100 respondents.
 The scope is limited as it covered only questionnaire approach for data collection.
16. DATA ANALYSIS AND INTREPRETATION, FINDINGS, SUGGESTIONS AND
CONCLUSION
 56% of the respondents belong to below 30 years category
 70% of the respondents belong to male.
 40% of the respondents work in finance department.
 42% of the respondents work in HR department.
 68% of the respondents belong to rural area.
 79% of the respondents belong to nuclear family.
 64% of the respondents have below 3 yrs experience.
 76% of the respondents complete their post graduate.
 52% of the respondents are unmarried.
 38% of the respondents earn Rs.10,000 to Rs.15,000
 84% of the respondents attend the training programme.
 52% of the employees have high level of employee retention in retention effort.
 50% of the employees have high level of employee retention in retention problems.
 62% of the employees have high level of employee retention in satisfactorily fulfilled.
 52% of the employees have high level of employee retention in career goals.
 54% of the employees have high level of employee retention in sufficient recognition.
 52% of the employees have high level of employee retention in training and career
development.
 102% of the employees have high level of employee retention in overall activities.
17. HYPOTHESIS FINDINGS
1) Null Hypothesis for Alternative Hypothesis
H (0)
There is a significant association between the age of the respondents and Employee Retention in
various dimensions.
H (1)
There is no significant association between the age of the respondents and Employee Retention in
various dimensions.
Result:
Reject null hypothesis and accept alternative hypothesis.
H (0)
There is a significant association between the experience of the respondents and Employee
Retention in various dimensions.
H (1)
There is no significant association between the experience of the respondents and Employee

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Result:
H (0)
There is a significant association between the Training Program of the respondents and Employee
H (1)
There is no significant association between the Training Program of the respondents and Employee
Result:
H (0)
There is a significant association between the monthly income of the respondents and Employee
H (1)
There is no significant association between the monthly income of the respondents and Employee
Result:
H (0)
There is a significant association between the gender of the respondents and Employee Retention
in various dimensions.
H (1)
There is no significant association between the gender of the respondents and Employee Retention
Result:
H (0)
There is a significant difference between the marital status of the respondents and Employee
Retention in various dimensions
H (1)
There is no significant difference between the marital status of the respondents and Employee
Result:
H (0)
There is a significant difference between the educational qualification of the respondents and
Employee Retention in various dimensions.
H (1)
There is no significant difference between the educational qualification of the respondents and
Result:

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H (0)
There is a significant difference between the type of family of the respondents and Employee
H (1)
There is no significant difference between the type of family of the respondents and Employee
Result:
H (0)
There is a significant difference between the domicile of the respondents and Employee Retention
H (1)
There is no significant difference between the domicile of the respondents and Employee
Result:
H (0)
There is a significant difference between the designation of the respondents with regard to
H (1)
There is no significant difference between the designation of the respondents with regard to
Result:
H (0)
There is a significant difference between the department of the respondents with regard to
H (1)
There is no significant difference between the department of the respondents with regard to
Result:
18. SUGGESTIONS
The quality of the supervision an employee receives is critical to employee retention. People leave
managers and supervisors more often than they leave companies or jobs. It is not enough that the
supervisor is well-liked or a nice person, starting with clear expectations of the employee, the
supervisor has a critical role to play in retention. Anything the supervisor does to make an employee
feel unvalued will contribute to turnover. Frequent employee complaints center on these areas. --Lack
of clarity about expectations, --lack of clarity about earning potential, --lack of feedback about
performance, --failure to hold scheduled meetings, and --failure to provide a framework within which
the employee perceives he can succeed.
Every supervisor who works in the organization should be aware of these frequent employees
complaint and make the employees to feel satisfied in their job by providing the best offers to them.

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19. CONCLUSION
An organization can’t survive if the employees are not serious about it and are more concerned about
their personal interests. The organization is completely at loss when the employees leave their job once
they are fully trained. Employee retention takes into account the various measures taken so that an
individual stays in an organization for the maximum period of time.
Research says that most of the employees leave an organization out of frustration and constant
friction with their superiors or other team members. In some cases low salary, lack of growth prospects
and motivation compel an employee to look for a change. The management must try its level best to
retain those employees who are really important for the system and are known to be effective
contributors.
It is the responsibility of the line managers as well as the management to ensure that the employees
are satisfied with their roles and responsibilities and the job is offering them a new challenge and
learning every day.
BIBLIOGRAPHY
[1] Managing Employee Retention – Jack J. Phillips
[2] Keeping good people – Roger E. Herman
[3] Retaining Top Employees – Leslie McKeon

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