1 page/≈275 words
Business & Marketing
Common retention policies in the present Indian Manufacturing Industry (Essay Sample)
common retention policies in the present Indian Manufacturing Industrysource..
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It is important for employers to have employees motivated in an organization. It would help both the employee and the company get the most of the employees, while an organization is also able to retain the best employees. Most companies look for the best employees, and these employees are always in high demand. Good employees would always want to change companies if they are not well motivated in their place of work. It should be noted that employee motivation does not necessarily entail using a lot of money, but having the ability to think creatively and being flexible. Business managers and leaders in most cases may find it difficult to motivate their workers. This is mainly contributed by the fact that one drives one employee in work place is totally different from one drives another person. It is therefore, important to understand what drives every employee in your company. Some employees could be motivated by the belief that their jobs are secure and reassuring, and that their job is not overwhelming or too hard. It is also important for employers to accept the limitations of their employees hence should not push them too much towards advancement. “Assuming that their work is satisfactory, however, continues to assure them of their security by maintaining consistency in their tasks, so they remain capable of sufficiently doing their jobs” (Mosley, 2007).
List of contents
problem of statement
Purpose of study
Objectives of the study
Scope and feasibility
Definition of terms
factors affecting retention of employees
Job fulfillment and worker retention
Management of Career and retention of employee
Significant of culture in employee retention
Difference of the Indian culture with other countries
Responsibility and accountability
Impact of the Indian culture on multinational companies in India
Theory of internal marketing
Porter’s five forces model
Qualitative versus quantitative research
Quantitative research design
Reasons for Adopting a Quantitative Approach in this Study
Weakness of the approach
Challenges during data collection
Maintaining a cohesive culture
Advantages for maintaining a cohesive culture among employees
How to maintain a cohesive culture among employees
Relationship building among employees
How administration improvement contributes to employee performance
Conclusions and Recommendations
Empirical analysis of Indian manufacturing industry as it concerns employee attrition rates revealed a lot. The overall attrition rate for the country across all industries as at 2013 was 13%. Personal reasons and search for better pay has been rated as the chief reason for the high employee turnover industry-wide. The overall Variable Pay as a percentage of CTC across all the sectors in India is 16%.for sales staff, the payout is monthly or quarterly. For other staff, the frequency of payroll is observed to be annual for most companies. The main challenge for the Indian market is retaining skilled manpower. For the reasons of the high attrition rates within the country, employers have adopted a number of ways to counter the effects of the trend. Top on the list of the counter initiatives is off shoring and outsourcing some of the activities of companies (Citizen Journalist 2013).
Figure 1. Attrition in India in 2013 in comparison to other countries
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As most companies in Asia continued experiencing voluntary employee turnover rates amidst economic recession, India topped the region’s attrition rate with 13.8%. While many common beliefs may mislead that economic uncertainty should keep workers glued to their jobs, a survey by Hewitt Annual Asia Pacific Salary Increase Survey reveals the contrary. Better external opportunities were cited as the main reason why most Indian employees in the manufacturing industry were leaving their current jobs. Companies consistently search for talented workers even in tight economic situations. For this reason, organizations keep facing tough talent market.
98.33% of all companies in the manufacturing sector in India face the challenge of enhancing their abilities to retain employee talent. This provides a lot of challenges to the companies to exercise more caution and innovation in retaining the top persons in their firms with tighter budgets. 64% of companies in the Indian manufacturing sector focus on pursuing different management strategies that suit its own workforce. Variable Pay Program is the strategy observed to be employed by a majority of these companies. In surveys to determine the take of the top management and firm ownership of the manufacturing companies, it was discovered that all companies attested to the fact that losing talent held detrimental effects on firm performance. 72% of these companies would do anything, including discriminatory pay increase to retain their high performing members of the workforce (The Economic Times 2013).
A number of factors have contributed to the success of employee involvement initiatives and these include;
Consistency- various organizations are now moving towards a consistency and cohesive approach whereby workers are involved in decision making. This is embedded in the HR approach of an organization.
Leadership skills – the success of any given organization is enhanced by the presence of a senior managers that champion employee involvement in an organization. It is equally important for other supervisors to lead by example by involving their workers and their representative so that they can be effective and efficient in service delivery.
Openness and trust – most organization have tried to incorporate the culture of trust in their line of communication, even when the message is unpalatable to their employees.
Training- on training has been the key factor to the success of major companies. This is essential to employees when solving problems in their places of work. The value and role of training to of both employees and the management is very important in addressing issues and new ways of working that cannot be underestimated.
42% of the companies fear losing their high performing workforce for they believe the good performers have the ability to bail the firms out of tough economic situations. They trust in the talent of the good trained and motivated workforce to provide them with a competitive advantage over competitors. 23% of companies in the Indian manufacturing sector, however, fear losing their high performers for their fear of the unknown. Whereas they believe that there is often a chance of getting more motivated, better performers, they cannot gamble with the chances of failing to attain the best the workforce can provide. They, therefore, decide to use all sorts of means to retain their employees. The battle between the employee’s desire to leave for better opportunities and the employers trying to retain them at all costs provide drama in the manufacturing industry in India. Even for companies that experience unprecedented levels of uncertainty and have cost cutting pressures have to reward and retain the best talents they have with special incentives. Challenging market of talent in the manufacturing sector has compelled companies to reward their employees differently. Performers receive 50% higher rewards than average performers.
Further findings reveal that attrition is not just about to end. More employees are willing to leave their current jobs for better terms and conditions. Survey reveals that there is a likelihood of attrition rate of up to 31% sa employees are not satisfied with the annual salary hikes, and would look out for prospects they consider better and more lucrative.
Table 1. Average Turnover Rates for 2011-2013
Year Average Annual Turnover Average Voluntary Turnover Average Involuntary Turnover 201114% 8% 7% 20 1215% 13% 9% 201313% 9% 6%
Sourced from: (NEHA GUPTA 2013)
Employers in the past 30 years have developed means and ways in which they try to secure more engaged workers. This is achieved by;
Being fair when dealing with internal problems among individuals as it contributes to individual performance. However, this does not closely related to employee engagement.
Identifying the factors that enhance employee engagement and being well informed about day to day happenings of the organization. The manager should therefore be committed to the organization.
Measuring the attitudes of the employees so as to identify areas that need improvement hence act on the survey findings.
Worker contentment plays an important role in manipulating the achievement of organiz...
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