hr retention final presentation1

8/7/2019 HR Retention Final Presentation1

http://slidepdf.com/reader/full/hr-retention-final-presentation1 1/20

e-MPLYOEE retention



Introduction

� An employee leaving a company is like a stonethrown in a still pond: ripples of disruption spreadthrough the organization, creating unbalance. In any

business, this unbalance can be expensive.

� The cost of turnover for a company is more than thecost of retention. Turnover can cost a company in

recruiting and administrative fees and training costs.Lack of attention to core reasons from employees ontheir way out, and slower productivity until newrecruits hit the floor can be costly.



Consider an example, someone who owns an

outdated, overused vehicle but won't even entertain thethought of trading it, even though they can well afford to

upgrade. Because, the owner of the vehicle has probably

invested substantial time, money, and care into keeping itin tip top condition. Now it seems senseless to throw it all

away. Plus, the cost of replacing the vehicle would be

enormous compared to the cost of upkeep on the old

one. Even with inanimate objects, we become

accustomed to Its personality and quirks, and we develop

a common trust between the object and ourselves.



Car Dealership Industry� Booming Industry (Statistics Nissan Motors have 19 dealerships in India and have 16 more

coming up within the next two years.)

� Small experienced pool of human capital market; forced to recruit fresher's.

� Front end is a sales focused Job, where targets matter.

� Peak Months: Mar-Apr and Sep-Oct

� Offer a wide range of services from helping customers sell their used car to new car

financing, insurance, extended warranty, annual maintenance contract and after sales

service.

� High sales force turnover rate: 7-8%

� To satisfy customer service needs, many dealers provide evening and weekend service and

employees work longer hours than other industries.

� The competitive nature of selling is stressful to automotive salespersons, as they try to meet

company sales targets and personal incentives as their pay package for a fresher is onlybetween 6-10,000.

� Most automobile salespersons and administrative workers spend their time at shared desks

in dealer showrooms.

� The number of workers employed by automobile dealers varies significantly depending on

dealer size, location, makes of vehicles handled, and distribution of sales among employees-

anywhere from 4 to 20 cars a month per employee.

� Salespersons success in selling vehicles and services determines the success of the dealer.



How much does it cost to set up a car

dealership in IndiaGuesstimates on financial implications towards starling a car dealership

1. Land / Real Estate: This is the biggest number and would vary city 2 city. However, many dealerships

prefer to lease rather than purchase property outright. Lease rates may vary between 5 lacs - 15 lacs for

the dealership property in Mumbai. A decent size for a dealership can be anywhere upward of 3,000 sq. ft.

2. Interiors and infrastructure: This would include design, renovation, computers, client management

softwares, printers, inverter systems, beverage machines, brochures etc. Figures can range anywhere

between 75 lakhs to 1.5 crores.

3. Other expenses: Recruiting / training staff members, launch advertising, website development,

insurance (for dealership, employees and office inventory) etc. About 25 lakhs. Cost of recruiting a single

employee is about 10,000 to 15,000.

4. Merchandise Inventory: Depends on how many cars the manufacturer requires the delearship to haveon-hand at all times. Concorde motors had several cars most of which were Tata Nano in the basement.

This figure could be 1.5 crore +.

5. Service facilities: About 3 crore to set up. Concorde motors are still in the process of setting one up.

Some manufacturers (Toyota included) follow the 3S rule where each dealership has the sales, service and

spares under one roof.

The most important factor is management skills and a dedication to customer service. Manufacturers arevery particular of how you manage their customers.



Major Players

Stiff competition among the market players, domestic as

well as global

� Maruti Udyog India Ltd

� Tata Motors Ltd� Nissan India Ltd

� Hyundai Motors India Ltd

� Honda India Ltd

�C

hevyIndia Ltd� Ford India Ltd

� Force Motors

� Ashok Leyland Ltd

� Mahindra & Mahindra Ltd



Objective Of The Study

� To identify how to reduce employee turnover

Management Perspective

� To know how to retain employees

Employee Perspective

� To find how much pride and esteem employees have

being attached to their organization

� To know how managers can play a key role inretention strategy



Concorde Motors Tata Motors

SVIMS\HR Emp Retention\HR Project Concorde

Motors.docx



Case Study I Concorde Motors

� Follow core values of parent company Tata Motors.

� Always pay salary on time.

� Focus on hiring procedures and make sure that

fresher's are prepared for the sales job.� Do everything to retain a tenured employee fromleaving.

� Job rotation to make work more interesting.

�Increase responsibility with buddy system.

� Performance review and feed back given on a half yearly basis.

� Incentives given for 70% of targets met.

� Road map of a career path in the organization.



ICHIBAAN NISSAN

SVIMS\HR Emp Retention\nissan_interview.doc



Case Study II - NISSAN

� Hire fresher's and mould them.

� Only retain revenue generating employees.

� Caliber and willingness to work are important traits.

� Give tenured employees responsibility.

� Have faith in them, trust & respect them.

� Provide Information, knowledge and training.

� Give feedback on performance.

� Recognize & appreciate their achievements.

� Keep their morale high.

� Turnover leads to more turnover, good will of thecompany hurt.

� Create a disciplined work environment.



To know how to retain employees from the Employee

Perspective, a questionnaire was prepared and results

measured on 6 parameters with a five point scale.

QUESTIONNAIRE_for_Employees_on_Retentio

_-2.docx



Talent Management System

Recruitment & Selection Training & Development Compensation

Organizational Environment Support Leadership Development

Performance Appraisal Relationship Career Development



Major Aspects of Employee Retention

� Compensation Rewards and Recognition, timelysalary, incentive based performance

� Organization Environment Pride for working in theorganization, Recreation activities, Core Values

� Personal Growth Growth opportunities andvariation of tasks, Planning your future with yourorganization

� Management employee relationship Appreciationof a job well done

� Support for getting the job done Employeeparticipation and support from immediatesupervisors

� Job itself Targets are achievable, willing to go the

extra mile to complete the job



Formula for Retention

Retention = AJ + Eid + C.S + PG + OE + C

AJ = Appropriate Job Choice

Eid = Early identification of vulnerable employees

C x S = Continuous Support

PG = Personal Growth

OE = Organizational Environment

C = Compensation



Pride and Esteem



Key Role of Managers in Retention

Strategy

Is it true people leave Managers and not Organizations?

The answer is YES!!

Managers Role

� Creating motivating environment

� Standing up for the Team

� Providing coaching

� Delegation Extra Responsibility

� Focus on future career



Conclusion

� The process of retention is not as easy at it seems.

� There are so many tactics and strategies used in

retention of employees by the organizations.

� The basic purpose of these strategies is to increase

employee satisfaction, boost employee morale henceachieve retention

hr retention final presentation1

Documents