SUMMER TRAINING PROJECT REPORT

ON

RETENTION MANAGEMENT SYSTEM WITH RESPECT TO

Submitted in partial fulfillment of the requirementsfor the degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED TO

Department of Management StudiesPrin. L.N. Welingkar Institute of Management Development & reserach

SUBMITTED BY

SNEHA CHAWLAPGDM-DLP / HB

Roll No. DPGD/JL12/0246

PRIN. L.N. WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT AND RESEARCH

1

Year of Submission : 2014

2

PLAGIARISM DECLARATION CERTIFICATE

To the best of my knowledge and belief, this Summer training Project Report is my own

work, all sources have been properly acknowledged, and the report contains no

plagiarism.

I have not previously submitted this work or any version in full or part of it, for

assessment in any other university or institution for any degree or diploma program.

I acknowledge that this Summer Training Project Report may be transferred and stored in

a database for the purposes of data-matching to help detect plagiarism.

Student NameSNEHA CHAWLA

22.01.2014

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Company’s Certificate

4

PRIN. L.N. WELINGKAR INSTITUTE OF MANAGEMENT DEVELOPMENT & RESEARCH

DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that Ms. Sneha Chawla has successfully completed the Summer

Training Project Report titled 'Retention Management System with respect to Tech

Mahindra Ltd.' from 20.11.2013 to 20.01.2014, as the partial fulfillment of the

requirement for the award of degree of Masters of Business Administration (M.B.A.)

by Mahamaya Technical University during batch (Batch year).

Signature of HOD

Name :

Designation:

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ACKNOWLEDGEMENT

The authorship of a monograph is usually attributed to one person but a report on the

Internship or a project work like this one is a joint affair. I am indebted to all who have

been of great help to me in doing and writing this project report.

Firstly, I am thankful and express my gratitude to Mr. Chandrakant ,(Project Guide)

Senior Manager (HR), Tech Mahindra Ltd. for his valuable guidance and support at all

time and provided me the best opportunity to completed my summer training project with

an esteemed organization.

I am also grateful and extend my thanks to Sabyascahi Banarjee (HOD) for his able

guidance and support at all time.

Special regard and greatest appreciation is reserved for all the Executives and Employees

of Tech Mahindra Ltd. for their valuable guidance and support at all time.

I am pleased to say that the whole report is just the presentation of the facts that have

been found during the projects through different sources and its each sentence is an exact

representation of the information obtained and the analysis thereof.

I hope that I have manifested my sincere attempts to represent all the information and

other things to the best of ability.

SNEHA CHAWLAMBA (2012-14)

Roll No. DPGD/JL12/0246

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TABLE OF CONTENTS

PREFACE

INTRODUCTION

COMPANY PROFILE

LITERATURE REVIEW

OBJECTIVES OF THE STUDY

RESEARCH METHODOLOGY

GRAPHICAL DATA INTERPRETATIONS

FINDINGS

RECOMMENDATIONS

SUGGESTIONS

CONCLUSIONS

- BIBLIOGRAPHY

- QUESTIONNAIRE

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PREFACE

Tech Mahindra is a global systems integrator and business transformation consulting firm

focused on the communications industry. With the convergence of media and telecom,

the changing landscape of the telecom industry is becoming extremely competitive.

Employee retention at Tech Mahindra 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. 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. Most employees

feel that they are worth more than they are actually paid. There is a natural disparity

between what people think they should be paid and what organizations spend in

compensation. When the difference becomes too great and another opportunity occurs,

turnover can result. Pay is defined as the wages, salary, or compensation given to an

employee in exchange for services the employee performs for the organization. Pay is

more than "dollars and cents;" it also acknowledges the worth and value of the human

contribution. What people are paid has been shown to have a clear, reliable impact on

turnover in numerous studies. Employees comprise the most vital assets of the company.

In a work place where employees are not able to use their full potential and not heard and

valued, they are likely to leave because of stress and frustration. In a transparent

environment while employees get a sense of achievement and belongingness from a

healthy work environment, the company is benefited with a stronger, reliable work-force

harboring bright new ideas for its growth.

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INTRODUCTION

As per philosophically, employee retention is important; in almost all cases, it is

senseless to allow good people to leave your organization. When they leave, they take

with them intellectual property, relationships, investments (in both time and money), an

occasional employee or two, and a chunk of your future. Employee Retention Strategies

helps organizations provide effective employee communication to improve commitment

and enhance workforce support for key corporate initiatives. We also provide full support

for your marketing-communication efforts by helping you build customer loyalty by

distinguishing and positioning your organization’s unique products and services in

today’s crowded marketplace.

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

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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 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. HRM is seen by practitioners in the field as a more

innovative view of workplace management than the traditional approach. Its techniques

force the managers of an enterprise to express their goals with specificity so that they can

be understood and undertaken by the workforce and to provide the resources needed for

them to successfully accomplish their assignments. As such, HRM techniques, when

properly practiced, are expressive of the goals and operating practices of the enterprise

overall. HRM is also seen by many to have a key role in risk reduction within

organizations. There is a long-standing argument about where HR-related functions

should be organized into large organizations, eg, "should HR be in the Organization

Development department or the other way around?"

The HRM function and HRD profession have undergone tremendous change over the

past 20-30 years. Many years ago, large organizations looked to the "Personnel

Department," mostly to manage the paperwork around hiring and paying people. More

recently, organizations consider the "HR Department" as playing a major role in staffing,

training and helping to manage people so that people and the organization are performing

at maximum capability in a highly fulfilling manner.

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COMPANY PROFILE

Tech Mahindra is a global systems integrator and business transformation consulting firm

focused on the communications industry. With the convergence of media and telecom,

the changing landscape of the telecom industry is becoming extremely competitive. As

companies rapidly strive to gain a competitive advantage, Tech Mahindra helps

companies innovate and transform by leveraging its unique insights, differentiated

services and flexible partnering models. This has helped our customers reduce operating

costs and generate new revenue streams. Recognizing that margins from connectivity are

rapidly falling and that future growth in revenues and margins will only come from new

applications, content and services, operators today are busy addressing business

opportunities revolving around Commerce, Content, Convergence and Customer

Experience to gain a sustainable Competitive Advantage. For over two decades, Tech

Mahindra has been the chosen transformation partner for wire line, wireless and

broadband operators in Europe, Asia-Pacific and North America. Majority owned by

Mahindra & Mahindra, one of the Top 10 industrial houses in India, in partnership with

British Telecommunications plc (BT), world’s leading communications service provider,

Tech Mahindra has grown rapidly to become the 5th largest software exporter in India

and the first largest telecom software provider from India.

The telecom software provided by Tech Mahindra can be broadly classified into two

forms:

Telecom Service Provider

Telecom Equipment Manufacturer

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The software industry has made a steady growth in the past 2 – 3 years with the top-tire

competitors growing at the rate of 35% annually. The IT sector of Tech Mahindra is

showing an impressive growth. The general average revenue of the company is estimated

to be Rs 12 billion (US $268) over the last six years. Further, the latest financial estimate

of the company has already crossed Rs 29 billion.

For over two decades, Tech Mahindra has been the chosen transformation partner for

wireline, wireless and broadband operators in Europe, Asia-Pacific and North America.

Majority owned by Mahindra & Mahindra, one of the Top 10 industrial houses in India,

in partnership with British Telecommunications plc (BT), world’s leading

communications service provider, Tech Mahindra has grown rapidly to become the 5th

largest software exporter in India and the first largest telecom software provider from

India.

Over 25,000 professionals service clients across the telecom eco-system, from our global

network of development centres and sales offices across Americas, Europe, Middle-east,

Africa and Asia-Pacific. Committed to quality, Tech Mahindra adds value to client

businesses through well-established methodologies, tools and techniques backed by its

stringent quality processes. Tech Mahindra is ISO 9001:2000 certified and is assessed at

SEI-CMMI Level 5. Tech Mahindra has also been awarded the ISO 20000-1 (IT Service

Management standard) and ISO 27001 (Security Management standard) certification for

its development centers across India and UK. Tech Mahindra is certified at PCMM Level

5 for its people-care practices and is the third company in the world to have been

appraised for SSE-CMM Level 3.

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MANAGEMENT TEAM

The management team of Tech Mahindra are:

Anand Mahindra, Chairman of Tech Mahindra

Anand Mahindra (Born on 1 May, 1955) is the Vice Chairman and Managing Director

of one of India’s largest companies, Mahindra & Mahindra. He now resides in his home

town Mumbai. Mahindra returned to India and joined Mahindra Ugine Steel Company

(MUSCO) where he became President and Deputy Managing Director in 1989. During

this time he initiated the Mahindra Group’s diversification into the new business areas of

real estate development and hospitality. In 1991, he was appointed Deputy MD of

Mahindra & Mahindra Ltd. He became the Managing Director in 1997 and took on the

additional responsibility of Vice Chairman in 2003. Under Anand Mahindra, the

company launched India’s best loved SUV, the Scorpio, which today has gone global. He

has recently been ranked amongst the most influential men & women in Mumbai by

Daily News and Analysis. Mahindra is the co-founder of the Harvard Business School

Association of India, an association dedicated to the promotion of professional

management in India. The association has grown substantially over the years. He is the

co-chair at the World Economic Forum at Davos. Mahindra is a Director of The National

Stock Exchange of India Limited appointed under the "Public Representatives" category.

He is the Chairman of National Safety Council of India. He is the Co-Chairman of the

International Council of the Asia Society, New York.

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Vineet Nayyar, Vice Chairman

An accomplished leader, Sir Vineet Nayyar has led several organizations across

industries, creating high performance teams and successful businesses. In a career

spanning over 40 years, he has worked with the Government, international multilateral

agencies and the corporate sector (both public and private). Vineet holds a Master’s

degree in Development Economics from Williams College, Massachusetts.

Milind Kulkarni, Chief Financial Officer

Milind Kulkarni is responsible for the Finance, Legal and Secretarial functions at Tech

Mahindra. He has been Manager Accounts at Cadbury plc (November 1982-October 1989,

7years experience). Most recently, he was the Senior Vice president, Finance for Tech

Mahindra from October 2009-June 2013. Mr. Milind has extensive experience covering

acquisitions, divestments and formation of joint ventures. A commerece graduate in

Accountancy from M L Dahanukar College of Commerce and a qualified Chartered

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Accountant, Milind has as many as 21 skills like Business Analysis, MIS, Mergers, Due

Diligence, Business Strategy Forecasting, Financial Reporting, Business Planning, Joint

Ventures, Accounting, Strategic Planning, Business Process Re-engineering, Financial

Modeling, Team Management, Contract Negotiation, Mergers & Acquisitions, Financial

Analysis, Analysis, Budgets, Internal Audit, Managerial Finance.

Sujit Baksi, President – Corporate Affairs

Sujit has over 30 years of experience in the areas of people management, operations

management and corporate strategy. At Tech Mahindra, Sujit leads the HR, Resource

Management Group, Infrastructure functions including Technical Infrastructure

Management, Training (Technical & Behavioral), Managed Services and the

Administrative functions. Sujit is a graduate from Presidency College, Kolkata having

completed his post graduate specialization in Personnel Management from XLRI,

Jamshedpur,

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C.P. GURNANI, CEO

CP Gurnani (popular as ‘CP’ within his peer group), is the Chief Executive Officer and

Managing Director of Tech Mahindra. CP played a pivotal role in the four year

transformational journey of the erstwhile Mahindra Satyam before it merged with Tech

Mahindra. An accomplished business leader with extensive experience in international

business development, start-ups and turnarounds, joint ventures, mergers and

acquisitions, CP in many ways led Tech Mahindra's transformation journey, where he

contributed significantly to the company's strategy and philosophy. His inimitable style

of leadership combined with his sharp focus on customer experience helped Mahindra

Satyam and Tech Mahindra to emerge as one of the leading providers in their respective

competencies - IT Services and Telecom Solutions to the global telecom ecosystem. In a

career spanning 32 years, he has held several leading positions with HCL Hewlett

Packard Limited, Perot Systems (India) Limited and HCL Corporation Ltd. An

outstanding people's manager, CP has an entrepreneurial style of management that is a

blend of enthusiasm and dynamism. He tends to focus on people's strengths to bring out

the best in them. 'Work hard and play hard' is his motto and he applies it to all aspects of

his life with complete passion. A chemical engineering degree from the National Institute

of Technology, Rourkela, he is a distinguished and active alumnus of the Institute.

.

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VISION & MISSION OF TECH MAHINDRA LTD.

Vision: To be the leading global software solution provider to the telecom industry.

Mission: To be the global leader in Outsourcing Services to the Telecom industry,

building on our technologies, competencies and customer interests, and creating value for

our shareholders and customers.

The Values that drives Tech Mahindra: Tech Mahindra is focused on creating

sustainable value growth through innovative solutions and unique partnerships. Our

values are at the heart of our business reputation and are essential to our continued

success. We foster an environment to instil these values in every facet of our

organization.

Customer first, Good corporate citizenship, Professionalism, Commitment to

quality, Dignity of the individual

Services offered by Tech Mahindra

Business Consulting, Systems Integration, Application Support and Maintenance

Managed Services

QUALITY STANDARDS FOLLOWED BY TECH MAHINDRA

As a part of its mature quality processes, Tech Mahindra uses well defined process

measurements to monitor the quality of solutions delivered and ensure continuous

improvement. With a strong focus on process management, Tech Mahindra’s Business

Management System (BMS) integrates business needs and industry best practices to

deliver services that constantly improve:

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Customer Satisfaction

Productivity and Cycle-Time

Quality of Solutions and Services

Integration of Initiatives

Tech Mahindra's BMS is designed to develop solutions that meet client specifications in

accordance with statutory and other industry-wide standards. Tech Mahindra’s quality

leadership conforms to world-class quality standards and models. Tech Mahindra is ISO

9001:2000 certified and is assessed at SEI-CMMI Level 5. Tech Mahindra has also been

awarded the ISO 20000-1 (IT Service Management standard) and ISO 27001 (Security

Management standard) certification for its development centres across India and UK.

Tech Mahindra is certified at P-CMM Level 5 for its people-care practices and is the

third company in the world to have been appraised for SSE-CMM Level 3.

Tech Mahindra's Service Delivery Framework - mASTER™

Based on proven methodologies and industry best practices, Tech Mahindra has defined a

holistic transition process framework - mASTER™ - for effective service delivery to

customers. mASTER™ offers a methodology for planning, managing, delivering and

operating complex programs through five defined phases as depicted below:

The mASTER™ methodology covers a broad range of activities that are structured

around quality gates and deliverables, thus ensuring a predictable and measurable

business outcome and consistent quality of deliverables.

MILESTONES

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1986 - Incorporation in India

1987 - Commencement of Business

1993 - Incorporation of MBT International Inc., the first overseas subsidiary

1994 - Awarded the ISO 9001 certification by BVQI

1995 - Established the UK branch office

2001 - Incorporated MBT GmbH, Germany incorporated. Re-certified to ISO

9001:1994 by BVQI

2002 - Assessed at Level 5 of SEI CMM by KPMG. Incorporated MBT Software

Technologies. Limited, Singapore

2003 - Re-certified to ISO 9001:2000 by RWTUV

2006 - Name changed to Tech Mahindra Limited. Assessed at Level 5 of SEI

People-CMM (P-CMM) by QAI India. Raised Rs4.65 billion ($100 million) from

a hugely successful IPO to build a new facility in Pune, to house about 9,000

staff. Formed a JV with Motorola Inc. under the name Canvas.

2007 - Acquired policy Networks Private Limited. Launched the Tech Mahindra

Foundation to address the needs of the underprivileged in our society, especially

children.

2009 -Tech Mahindra wins bid for Satyam. Tech Mahindra has won the bid for

Satyam Computer Services.

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AWARDS & RECOGNITIONS

Ranked #1 in Telecom Software category by Voice & Data, 2009 (V&D100

Ranking)

Ranked 11th Largest TOMS vendor by Gartner in "Market Share: Telecoms

Operations Management Systems – Worldwide, 2006-2008" May 2009

In the Leaders Category in 'The 2009 Global Outsourcing 100' (IAOP's Annual

Listing of the World's Best Outsourcing Service Providers)

Deloitte Technology Fast 500 APAC 2008

Deloitte Technology Fast 50 India 2008

Award for Excellence in Training (Employer Branding Awards 2008-2009)

'Best Overall Recruiting & Staffing Organization of the Year Award' (RASBIC

Awards 2009)

Award for Managing Health at Work (Employer Branding Awards 2008-2009)

Award for Excellence in Training (Employer Branding Awards 2008-2009)

BusinessWeek Award for Asia’s Best Performing Companies, 2008

Ranked 2nd in Telecom Software providers of India by Voice & Data, 2008

(V&D100 Ranking)

“Growth Excellence Award” by Frost & Sullivan, 2008

6th Largest Software Services Company in India (NASSCOM 2008)

10th Largest IT-BPO Employers, FY 07-08 (NASSCOM 2008)

Award for “Best Start-up Company” at Mobile Content Awards & Conference

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2008 (MCA08) to CanvasM

Award in “Largest Revenue Category” of “IT and ITeS (excluding Hardware)

Sector” by D&B – ECGC Indian Exporters Excellence Awards, 2008

Ranked 12th Largest TOMS vendor by Gartner in "Market Share: Telecoms

Operations Management Systems – Worldwide, 2006-2007" April 2008

"Best Billing Solution" Category at "Billing and OSS World (B/OSS) Excellence

Awards 2008", April 2008

The Brand Leadership Award by the Asia Brand Congress, 2008

'Best Overall Recruiting & Staffing Organization of the Year Award' (RASBIC

Awards 2008)

In the Leaders Category in 'The 2008 Global Outsourcing 100' (IAOP's Annual

Listing of the World's Best Outsourcing Service Providers)

'Organization with the most innovative HR practices Award' (Asia Pacific HRM

Global HR excellence Award 2007) 3rd largest BSS Systems Integrator and 5th

largest BSS Vendor (Gartner-Dataquest, World Wide Analysis 2000-2006,

published in 2007)

Product Innovation Award for Enterprise DRM (Frost & Sullivan Asia ICT

Awards 2007)

Vertical Growth Leadership in Telecom Software (Frost & Sullivan Asia ICT

Awards 2007)

The Elite member of the Deloitte Technology Fast 50 India (2007)

The Brand Leadership Award by the Asia Brand Congress, 2007

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IT SERVICES AND TELECOM SOLUTIONS

Tech Mahindra is the global leader in delivering the end to end IT services and solutions

The company has 15000 professionals’ service clients in various telecom segments, from

various offshore development centers including 7 cities in India and UK and 13 sales

centers in Americas, Europe and Asia-Pacific.

The company integrates domain expertise in OSS and Business Support Systems systems,

intelligent leadership and a global workforce advantage to deliver services. The company

has service premium telecom companies worldwide.

IT provides a wide variety of services ranging from IT strategy and consulting to system

integration, design, application development, implementation, maintenance and product

engineering. It has a rich telecom heritage, dedicated to quality; Tech Mahindra adds

value to client business process by well-established methodologies, tools and techniques

backed by Quality. Tech Mahindra is ISO 9001:2000 certified and is also a SEI-CMMi

Level 5 organization. Tech Mahindra is also BS7799 certified at all development centers.

Majority owned by Mahindra & Mahindra, India’s fifth largest commercial group, in

partnership with BT Plc (BT), Europe’s second largest telecom service provider, It has

grown in a rapid way to attain the position the 8th largest software exporter in India

Vision- To be the leading global software solutions provider to the telecom industry.

Mission Statement- To be the global leader in outsourcing services, To the telecom

industry, Building on our technologies and competencies, And customer interests, And

creating value for our share holders and customers

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THE VALUE THAT DRIVES TECH MAHINDRA

Tech mahindra is focussed on creating remarkable value growth through innovative

/creative solutions and partnerships. Their values are at the heart of their business /brand

name and are essential to their sustained success they foster an environment to instill

these values in every aspect of their organization

1. Corporate citizenship

2. Professional approach

3. Customer satisfaction first

4. Customer centricity

5. Dedication towards quality

6. The integrity of individual

Infrastructure

Tech mahindra has seven software development centers, one in United Kingdom and six

in India (mumbai. Chennai, pune, Bangalore, kolkata, noida). 13 regional offices spread

over UK, USA, Germany etc.

Achievements

1. It is ranked by NASCOMM as the eight largest IT services in context of export

revenue.

2. The relationship with BT has given an edge, now they have an established presence in

the European market, they have grown in North American market with clients such as

AT&T, and they have also come into picture in south Asian countries with clients in

countries like Thailand, Malaysia and India.

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3. Their revenue grew at the annual growth rate of 26% and their no of employees grew

at an annual growth rate of 24% in 2004-2006.

SERVICES

Solution integration- This is a kind service that enables client to identify, develop and

implement the most effective solutions to their change needs/requirements. There is

requirement of business processes across organization’s entire value chain of customers,

partners, suppliers and employees.

Solution integration is crucial in different domains of organization due to different

factors:

1. Multi - tasking systems for various domains.

2. Post mergers acquisitions, process & networks need integration.

3. New product implementations require integration/unification with other existing

systems.

4. Increased business value is demanded

5. Investment maximization is necessary

6. There is a requirement to integrate with business partners, suppliers, customers to

decrease inventory.

7. There is a need to decrease manual interactions/transactions.

TECH MAHINDRA ADVANTAGE

1. World leading track record in telecom industry.

2. Application outsourcing experience is of two decades now

3. The company has flexible procedures

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4. The focus is on SLA’S that improves efficiency.

APPLICATION DEVELOPMENT AND MANAGEMENT

Consulting

The organization offers complete range of consulting services, which is used to analyze

client’s business need to implement software systems. The constancy is proved in the

field of re – engineering solutions, strategic control.

The strategic alliance has given edge to market penetration and competitiveness in

emerging markets. This is also effective in product evaluation.

Global Managed Services

The key to success in current scenario is focus on core competency. Business today faces

increased network complications, varied bandwidth needs, and decreased budgets and it

is found that traditional solutions to these challenges causes distraction from their core

business strategies.

Organizations are therefore looking at outsourcing services to a managed service

provider. Tech Mahindra’s managed services provide an opportunity to customers to

outsource business and operations process, high standard of quality, accountability is

assured .it is cost effective and the risk is low. Global managed services; A specialized

team is created which has the expertise to manage an enabling infrastructure and process.

BPO Services

This is a logical extension of IT services, tech Mahindra provides an e2e package to its

telecom clients, The global facilities in context to outsourcing is provided.

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HUMAN RESOURCES PROCESS AT TECHM

Personal administration (PA)

Personal development (PD)

Implementation process

The projects which are undertaken by tech Mahindra are done in following phases:

Scoping

What needs implemented, which sub modules are required be implemented, some clients

may not require finance management, example, marketing people along with project

manager do it.

BPO (BUSINESS PROCESS OWNER) is the clients employee who has knowledge of

the client business processes probably a middle management executive, it could more

than one, collection of all the ISO documents, if client is ISO certified, reports and forms

at this stage and analyze how and when the reports /forms are generated, What is the

source of data.there is level –2 training is done for BPO so he is made aware of all the

required transactions in SAP. After its completion BPO starts learning with the

consultants, help more about SAP. This is crucial because if there is a miss on any

transactions the BPO may neglect some of business processes which may arise later.it is a

good practice to ask the BPO to construct flow charts to understand business process.

The processes are mapped to SAP. Some processes are not sure whether they are present

in SAP or not we try to do a configuration of those processes, and along with BPO, BPO

involvement is needed as he be able to tell his needs better once the business modeling is

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accomplished, we will also be made aware the gaps between as – is and to – be, here

decisions has to be made as to whether an ABAP development/system modifications is

needed or not and so on, the BPO involvement should be involved and document

everything.

Business blue print

Here the as-is and to-be and gap analysis is understood. This is the document that is used

to perform the integration in the realization phase.

Realization phase

The configuration takes place in the development server (there are three domains –

development, quality, production. The master data format is being decided upon, so that

BPO is able to collect the master data. ABAP specifications are delivered to forms

reports systems modifications, etc.

Unit testing

BPO and few key users are involved to test the configuration in the module .It is best to

test the BDCs that you need for uploading information at this stage, so that there is

realistic data and BDCs are tested.

Integration testing

After unit testing is over then configuration is moved to the quality sever, where testing

for all the functions/domains is done byBPOs and end user, this helps to check if any

issue’s are there in context to integration between various functions, once it is approved

from the QA sever config is moved to the production server.

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VALUABLE CLIENTS OF TECHM

Major clients of Tech Mahindra in ERP are:

1. British telecom

2. AT&T

3. Motorola

4. Mahindra & Mahindra

5. MEA Bangkok

Clients Testimonials

“It has shown/maintained a very important role in BT’s strategy and proving to be

stronger partner. India is a very important market for BT, Business is growing at fast pace

and I am proud to be a part of tech mahindra’s second growth phase here in Asia pacific”

BT GROUP

Taking TMF Catalyst initiative, Tech Mahindra studied our "As Is" processes to identify

and analyze the Gaps by answering questions like, what does eTOM mean to these

processes, where can we find these processes in the eTOM mapping, etc? The 'To Be'

processes were built up by using the eTOM business process framework.

The credit goes to Tech Mahindra for the excellent support and for the good teamwork.

We will always look forward to work with Tech Mahindra.”

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LITERATURE REVIEW

Effective employee retention is a systematic effort by employers to create and foster an

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 realise 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, organisations 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.

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 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 organisational

knowledge and learning.

Employee retention matters, as, organisational 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. Various estimates suggest that

losing a middle manager in most organisations, translates to a loss of up to five times his

salary. This might be worse for BPO companies where fresh talent is intensively trained

and inducted and then further groomed to the successive stages. In this scenario, the loss

of a middle manager can often prove dear. In fact, some reports suggest that attrition

levels in IT companies are as high as 40 per cent. The only way out is to develop

appropriate retention strategies. Though BPO industry shoots ahead at 40 to 50 per cent a

year, it is now losing 35 to 40 per cent of its 350,000-odd employees as well.

In India there are few sectors where the attrition level is much larger compared to other

sectors. For example: IT sector and BPO. Where as there are organizations like Air India,

HAL, DRDO, BARC where the attrition is nearly 5% or less than that Employee

Retention Strategies helps organizations provide effective employee communication to

improve commitment and enhance workforce support for key corporate initiatives.

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“Employee retention is a process in which the employees are encouraged to remain in

the organization for the maximum period of time.”

Employee Retention involves taking measures to encourage competent employee to

remain in the organization for the maximum period of time. Corporate are facing a lot

problem 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 is 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 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.

There are various HR issues the a corporate deals:

1. EMPLOYEE TURNOVER

2. ATTRITION

These basic needs other than routine and future HR tasks are to be taken care of on

Priority before it becomes late.

WHY RETENTION?

Key employee retention is critical to the long term health and success of your business.

Managers readily agree that retaining your best employees ensures customer satisfaction,

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product sales, satisfied co-workers and reporting staff, effective succession planning and

deeply imbedded organizational knowledge and learning employee retention matters.

Organizational issues such as training time and investment; lost knowledge; mourning,

insecure co-workers and a costly candidate search aside, failing to retain a key employee

is costly. Various estimates suggest that losing a middle manager costs an organization up

to 100 percent of his salary. The loss of a senior executive is even more costly.

Employee retention is one of the primary measures of the health of the organization.

Losing critical staff members means other people in the departments are looking as well.

Exit interviews with departing employees provide valuable information that can used to

retain remaining staff.

WHY PEOPLE LEAVE THEIR JOB?

With retention being such a high priority, why are people leaving organizations? Some

literature suggests that people leave their jobs for a wide variety of reasons, including:

1. Unmet expectations

2. Inappropriate fit for the role

3. Lack of fit with company culture

4. Lack of sufficient opportunities for growth and advancement

5. Inadequate recognition and appreciation

6. Problems with a manager or supervisor

7. Dissatisfaction with compensation

8. Stress

9. Lack of work/life balance

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10. Lack of confidence in the company and/or leadership

RETENTION INVOLVES FIVE MAJOR THINGS:

O Compensation

O Environment

O Growth

O Relationship

O Support

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. 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

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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. 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.

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RETENTIONS STRATEGIES ADOPTED BY TECH MAHINDRA

Strategy adapted by company for retention of employees

1) Right Hiring

2) Training employee properly

3) Rewarding - For career Progression and Development

4) Performance Management

5) Regulating Employee cycle

Annual rate of employee leaving is 9%- 10% yearly.

SKILLS ANALYSED BY COMPANY

TECHNICAL SKILLS BEHAVIOURAL SKILLS

1) Communication skills

2) Attitude

3) Accommodation

4) Flexibility towards work

5) Willingness for 24/7 dedication.

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EMPLOYERS & THEIR KEY DRIVERS TO ATTRACT AND RETAIN TALENT

o Early responsibilities in career

o Flexible and transparent organizational culture

o Global opportunities through a variety of exposure and diverse experiences

o Performance Recognition

o Strong global brand

o Value-based environment

o Pioneer in many people practices

o Learning and growth opportunities

o Competitive rewards

o Opportunity to grow, learn and implement

o Strong social security and employee welfare performance- oriented culture

o Strong values of trust, caring fairness, and respect within the organization

o Freedom to operate at work

o Early responsibility in career

o Training and learning opportunities

o Visible, transparent and accessible leaders

o Competitive rewards

o Innovative HR programs and practices

o Organization philosophy and culture

o Job stability

o Company brand

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o Open , transparent, and caring organization

o Management according to the managing with respect to guiding principles

o Training ad development programs

o High degree of autonomy

o Value compatibility

ORGANIZATION ENVIRONMENT

It is not about managing retention. It is about managing people. If an organization

manages people well, employee retention will take care of itself. Organizations should

focus on managing the work environment to make better use of the available human

assets.

People want to work for an organization which provides?

Appreciation for the work done

Ample opportunities to grow

A friendly and cooperative environment

A feeling that the organization is second home to the employee

Organization environment includes

Culture

Values

Company reputation

Quality of people in the organization

Employee development and career growth

Risk taking

Leading technologies

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Trust

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IMPORTANCE OF RETAINING EMPLOYEES

THE CHALLENGE OF KEEPING EMPLOYEES

Its changing face has stumped managers and business owners alike. How do you manage

this challenge? How do you build a workplace that employees want to remain with …

and outsiders want to be hired into?

Successful managers and business owners ask themselves these and other questions

because—simply put—employee retention matters:

➤ High turnover often leaves customers and employees in the lurch; departing

employees take a great deal of knowledge with them. This lack of continuity

makes it hard to meet your organization’s goals and serve customers well.

➤ Replacing employees costs money. The cost of replacing an employee is

estimated as up to twice the individual’s annual salary (or higher for some

positions, such as middle management), and this doesn’t even include the cost of

lost knowledge.

➤ Recruiting employees consumes a great deal of time and effort, much of it futile.

You’re not the only one out there vying for qualified employees, and job

searchers make decisions based on more than the sum of salary and benefits.

➤ Bringing employees up to speed takes even more time. And when you’re short-

staffed, you often need to put in extra time to get the work done.

The Three Rs. of Employee Retention

To keep employees and keep satisfaction high, you need to implement each of the three

Rs. of employee retention: respect, recognition, and rewards.

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Respect is esteem, special regard, or particular consideration given to people. As the

pyramid shows, respect is the foundation of keeping your employees. Recognition and

rewards will have little effect if you don’t respect employees.

Recognition is defined as “special notice or attention” and “the act of perceiving

clearly.” Many problems with retention and morale occur because management is not

paying attention to people’s needs and reactions.

Rewards are the extra perks you offer beyond the basics of respect and recognition that

make it worth people’s while to work hard, to care, to go beyond the call of duty. While

rewards represent the smallest portion of the retention equation, they are still an

important one.

You determine the precise methods you choose to implement the three Rs, but in general,

respect should be the largest component of your efforts. Without it, recognition and

rewards seem hollow and have little effect—or they have negative effects. The magic

truly is in the mix of the three.

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REWARDS & RECOGNITION AT TECHM

When you implement the “three Rs” approach, you will reduce turnover and enjoy the

following:

➣ Increased productivity

➣ Reduced absenteeism

➣ A more pleasant work environment (for both employees and you!)

➣ Improved profits

Furthermore, an employer who implements the three Rs will create a hard- to leave

workplace, one known as having more to offer employees than other employers. You

become a hard-to-leave workplace—one with a waiting list of applicants for any position

that becomes available—purposefully, one day at a time.

A steadfast philosophy that sets Employee Retention Strategies apart:

• Uses only research-based, theory-supported approaches to improving employee

engagement. Avoided are gimmicks such as employee of the month, suggestion

boxes, prizes or other “carrots.” While commonly used, these short-term fixes fail

to produce genuine employee loyalty.

• Employs an easy-to-understand systems approach to ensure the root causes of

turnover are addressed and the potential for lasting change unleashed.

• Customizes all activities to your organization’s unique history, current practices

and strategic objectives. Also considered are challenges unique to your industry

sector, competitive marketplace issues and talent shortages.

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• Involves those responsible for implementing change in actually creating the

change, ensuring input and improved shared understanding and support of all

initiatives.

• Integrates hands-on, action-oriented approaches that enable organizations to move

forward quickly and effectively

• Recognizes the research-proven role of no-cost strategies in developing the “glue”

that builds employee loyalty and commitment.

• Brings to your organization leading-edge organization-development best practices

to effectively and quickly build a retention-rich culture.

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KEI’S EMPLOYEE RETENTION MANAGEMENT WHEEL ADOPTED BY BPO COMPANIES AS LIKE AS TECHM

The first step to improving your employee retention is to understand why employees stay

with their current employer. Many "experts" dwell on the reasons employees leave,

which is not as important or revealing as the reasons they stay. Companies have tried

many different programs and perks to hold onto good employees. However, studies show

that these efforts are not enough to retain good employees when the support that is

needed to achieve job success is not adequate.

Don't Waste Your Money on Things That Don't Make a Difference...

Among the countless inducements offered, only those identified in the center of KEi's

Employee Retention Wheel™ are truly what give employees a consistent reason for

saying "no thank you" when tempted with a "sweeter offer." After years of study and

experience, KEi has determined, and presented in the Retention Wheel, what factors do

have the greatest impact on keeping employees. KEi has used this information to give

employers the tools to meet the core needs that keep employees successful at their jobs,

thus reducing the high costs associated with unwanted employee turnover.

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USING THE WHEEL TO IMPROVE EMPLOYEE RETENTION

KEi's Employee Retention Strategy is based upon two primary beliefs:

(1) It is difficult for employers to retain good employees if they don't have a process

to hire the right people in the first place.

(2) Retention processes must directly support the reasons that successful, satisfied

employees stay.

KEi's concentration on the center of the Employee Retention Wheel provides employers

with Internet-based tools that give employees systematic, ongoing support to be

successful in their work and satisfied with their employment.

The Center of KEi's Employee Retention Wheel: EIGHT FACTORS

Definition of successful: my job is helping me to grow personally, professionally and

financially.

Definition of satisfied: my employer is providing what I need to perform my job

successfully.

These eight central processes of the Employee Retention Wheel are the factors that are

most critical to an employee's job performance success.

ATTITUDE FOR EMPLOYING

A process to clearly define the way supervisors are expected to interact with

employees; a process to give employees a way to express what is most important

to achieve job success; and a process to give employers a way to demonstrate

"Employing Values" through employment policies.

This "Employer Mission Statement" is about how and who you hire, how you

treat them, and the organization's values as an employer. It is about making sure

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that the Values for Employing™ are communicated to your employees and

consistently implemented throughout your organization. It is about the total

employment package that goes beyond salary and traditional benefits.

FINDING CANDIDATES

A process that gives employers a comprehensive way to communicate to job

seekers what it takes to achieve short-term and long-term job success, and to

attract the candidates who fit this criteria.

SORTING APPLICANTS

A process that gives employers a way to confirm whether the attitudes and

behaviors of job seekers are a match for their work environment.

CHOOSING EMPLOYEES

A process that gives employers a way to define the specific interview questions

that prove job seeker abilities to successfully perform the target skills; and a

process that gives employers a way to verify the accuracy of resume/application

data and interview responses.

STARTING EMPLOYEES

A process that provides a way for new employees (before performing the job) to

understand "why the employers business exists;" "what makes the business

organization successful;" "why the employee's job exists;" and "what it will take

for the employee to achieve job success."

INFORMING EMPLOYEES

A process that gives employers a way to provide essential information (from

five critical information sources) that is needed by employees to make daily

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work decisions.

IMPROVING EMPLOYEES

A process that gives supervisors and employees a way to work together to build

personalized plans for improving each employee's priority job skills; and a

process that gives the employer a way to "deliver skills-improving training

curriculum" and to "measure the learning effectiveness" from the training

experiences.

REWARDING EMPLOYEES

A process that gives employers a way to define and communicate exactly how

individual employee salaries are determined; and a process that gives employers

a way to provide employees with extra incentive income that is earned through

the achievement of cash generating business goals.

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10 WAYS TO RETAIN YOUR EMPLOYEE

Retaining key personnel is critical to long term success of an organization. A Retention

Strategy has become essential if your organization is to be productive over time and can

become an important part of your hiring strategy by attracting the best candidates who

know of your track record for caring for employees. In fact, some companies do not have

to recruit because they receive so many qualified unsolicited submissions due to their

history of excellence in employee retention.

How do you get your employees to "fall in Love" with your organization? This is a

great question. Some recently conducted research lists these

TOP TEN STRATEGIES:

1. Treat your employees like you treat your most valuable clients. It is cheaper to

keep your good employees than it is to hire and train new ones. Your top 20-25%

should be courted as you would court and then service your top customers.

2. Get your employees to "Fall in Love" with your organization. Communicate

your vision in a compelling way. Show everyone the role they have to contribute

to this vision. Create opportunities for people to connect with each other for

support and to improve communication in work teams.

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Capture the Hearts of your workforce with: Compelling vision / Balance /

Celebration-Fun

Open Communication: Internal listening is a priority, multiple lines of

communication. This is essential for managing change in a positive way

with less sabotage, anger, resistance, and fear.

3. Strong retention strategies become strong recruiting advantages.

4. Retention is much more effective when you put the right person into the right

job. Know the job! Know the employee and their motivations.

Half of the Fortune 500 companies are now using assessments to more fully

understand each job and the soft skills that are required for top production within

their specific company culture. These benchmarked skills are then compared

against qualified applicants to help determine who will be successful in the

position and fit well within their company's culture. These assessments are also

used as a powerful professional development tool to enhance the training of

continuous life-long learning. Advanced Fibre Communication is beginning to use

this assessment process in hiring.

5. Money is important but it is not the only reason people stay with an

organization.

If your compensation plan is in the top 20-30% of your industry, then money will

often not be the reason why people leave.

6. Employee committees to help develop retention strategies is a very effective

strategy.

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Get their input! Ask, what do people like about working here? What would you

like changed to make your company a better place to work? Some companies,

such as Advance Fibre Communication (AFC), have recognized that the special

engineers and technical experts that are the cornerstones of their business, require

special attention. Victoria Perrault, VP of Administrative Services for AFC, says

that her company has identified the top 25% of their staff and caters to these

special people by meeting their financial requirements and looking for the best

package of benefits that these people will find most positive as incentives to stay.

They even have employee committees that work as "focus groups" to determine

why people stay at AFC and what they might want to see changed to make AFC

an even better place to work.

7. Leadership must be deeply invested in retention.

Management must be skillful communicating company policies in a way that

creates "buy-in" from their staff and be open to employee input. Help create

"ownership" in your employees. The companies with the best retention

percentages are the same companies that are actively committed to retention.

They know that is costs less to keep good people than to continuously have to

replace unsatisfied employees and managers.

8. Recognition, in various forms, is a powerful retention strategy.

It does not have to cost a lot. US Dept. of Labor - 46% of people leave their jobs

because they feel unappreciated.

9. Remember, the "Fun Factor" is very important to many employees.

Greg Peters, Past President and CEO of Mahi Networks in Petaluma, is one of

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many executives who reported that retention is often related to interpersonal

connections and amount of FUN in work teams. The FUN Factor is part of the

generation of workers that use activities as stress management in highly charged

production environments where long hours are required. Greg has encouraged

Ping-Pong tournaments and basketball leagues for interpersonal interaction, fun,

and stress management. Though not everyone can participate in physical

activities, this sets the tone in a culture based on competition, health/well-being,

and interactions that are inclusive beyond work.

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EMPLOYEE MORALE PREVENT COMPANIES FROM ACHIEVING RETENTION SUCCESS

Despite years of research that point to far different solutions, many companies use the

wrong tactics when trying to improve employee morale, satisfaction and retention. These

myths prevail, in part, because businesses have used these methods, however wrong, for a

very long time and have become used to trying the same ideas.

MYTH #1: PEOPLE MOST OFTEN LEAVE A COMPANY FOR MORE PAY.

Exit interviews, conducted to learn why people leave an organization, contain some of

America’s greatest fiction. People frequently say they’re leaving for more money because

it’s the easiest reason to give. More often the causes leading to departure are related to

issues that were unsatisfying in the job or the company. Typical issues that cause

dissatisfaction are company policies and procedures, quality of supervision, working

conditions, relationship with the immediate supervisor and salary.

Yes, pay does matter. While research shows most people don’t actually leave a job for

more money, there are two important facts: Very-low-income workers will leave for

more money because it’s a survival issue. For the rest of workers, the issue of money

actually is about fairness. People become dissatisfied with pay when they feel it is unfair

within the company, within the industry or when pay doesn’t seem to match the amount

or type of work required. To increase employee satisfaction and retention, companies

make more gains by working to improve whether people feel a sense of achievement,

recognition, competence and growth, whether there are choices about how work gets

done and whether employees feel respected by management..

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MYTH #2: INCENTIVE PROGRAMS PRODUCE LONG-TERM PROFITS AND

IMPROVE PRODUCTIVITY AND MORALE.

So, who doesn’t like free stuff? However, incentives such as gifts and cash bonuses for

meeting speed and volume goals don’t affect employee commitment. They’re really a

throwback to outdated management beliefs that workers must be coerced in order to work

hard. All the extras don’t add up to the real glue that creates employee commitment: the

chance to learn and grow, meaningful work, good supervisors and respect and

appreciation for a job well done. Incentives have been over-used particularly in the past

decade, as management books touted the importance of improving recognition of

excellent work. Yet, studies show that carrot-and-stick motivation actually does not pay

off in long-term company profitability or employee satisfaction or retention. To the

contrary, incentives can harm quality when employees aim for speed or other goals rather

than quality.

MYTH # 3: PEOPLE DON’T WANT MORE RESPONSIBILITY.

They don’t want more work if they’re already overloaded due to lean staffing; but people

indeed want the opportunity to grow and develop their skills, advance their careers and

have the opportunity for greater variety. Keep in mind what the research confirms: People

do want to try new things, to feel skillful and to experience the personal satisfaction of

higher levels of achievement.

People don’t need a job promotion in order to gain more responsibility. The same job can

be broadened to include more variety, more contact with different parts of the

organization and greater control over decisions on accomplishing work tasks.

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MYTH #4: LOYALTY IS DEAD.

Not at all, though it is ailing in many organizations. People are seeking greater work-life

balance than in the past, and employers have made great strides in providing more

flexible hours and dress codes. Still, people seek to make a contribution, and

organizations that provide healthy doses of the main satisfiers enjoy significantly lower

turnover and higher morale. Profits are higher, too, according to recent research studies.

Things have changed, indeed. Today’s workers will, in fact, change careers and jobs

much more often. When the economy is good, people have become much more at ease in

changing companies, are more likely to acquire new skills and move to companies that

offer greater chance to use more of their knowledge and more willing to take the risks of

starting anew at another organization.

What has emerged in current management studies are that the same qualities that hold

employees are the ones that best serve the customers: Employees who can make quick

decisions on behalf of the customer and the company; employees who have a broader

scope of responsibility that allows them some freedom and leverage to solve customer

problems; learning opportunities that give employees the skillfulness to address customer

issues; and supportive management and supervisors who use any mistakes that occur as

teaching opportunities.

MYTH #5: IMPROVING EMPLOYEE SATISFACTION IS EXPENSIVE.

Research tells us the true satisfiers can’t even be bought: career growth, meaningful

work, respect and appreciation and being able to influence how work gets done. In these

leaner times employers have the same opportunity to gain true loyalty despite lowered

budgets.

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The trinkets and prizes given in recognition and rewards programs aren’t necessary

ingredients for developing an engaged workforce. The “glue” that holds people is made

of much different stuff: Management that listens and responds to employees’ ideas about

improving service, supervisors who support people’s growth and initiative, training in

how to do the job successfully, good relationships with coworkers and genuine

appreciation for a job done well. There are no costs incurred to build or enhance these

motivators.

MYTH #6: EMPLOYEE SATISFACTION IS “FLUFF.”

Does having engaged workers make a difference in the bottom line? Studies now show

that lower turnover and greater levels of employee satisfaction have a definite positive

impact on customer satisfaction and profitability, which are the key factors in company

growth and sustainability. Consider these facts:

• A strong link was found in a study by PricewaterhouseCoopers between employee

retention and the quality of service as rated by companies’ customers.

• According to the American Society of Training & Development, organizations

that invested the most in training had higher gross margins and income per

employee.

• The cost of replacing an employee who leaves has been estimated by various

studies to be between 70 and 200 percent of that worker’s annual salary.

• The Council on Competitiveness found that a 10-percent increase in education has

a more positive impact on productivity than a 10-percent increase in work hours.

Investing in people and using the most effective management practices increases profits.

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MYTH #7: SUPERVISORS ARE THE PROBLEM.

Many senior leaders express dismay about the quality and actions of their middle

managers and front-line supervisors. The “blame game” is old, yet the solutions are

strikingly similar to those required to build an engaged workforce.

In most organizations today, supervisors have more people reporting to them than in the

past, more demanding customers than ever and greater amounts of change – all occurring

at the same time. Yet, the amount of training provided to managers and supervisors in

many organizations is minimal. More importantly, the amount of time that senior

managers spend in dialogue with middle and line managers also is minimal.

Middle managers and supervisors can appear resistant to improvement efforts. However,

the true failure exists in our understanding of their world, the challenges they face and the

support they need in order to be successful. Successful organizations seek to build

teamwork between senior leaders and middle managers and line supervisors.

MYTH # 8: MY COMPANY/INDUSTRY/PEOPLE ARE DIFFERENT!

Yes, every company is unique, and every industry has its own set of unusual challenges.

However, a very costly mistake is made when we believe information from other sectors

doesn’t apply to us or our organization. Retention research studies cross all industries, all

types of work settings and in varied economic conditions. Still, the same results come up

time and again. We build employee loyalty – and, indirectly, customer loyalty – through

providing people with growth and learning opportunities, minimizing red tape, allowing

people to think and make good choices, supporting middle managers and front-line

supervisors and appreciating the efforts that people give to help our customers. It’s

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downright dangerous to ignore these findings – risky to the bottom line and the

organization’s future.

BARRIERS TO SUCCESS

Lack of support from management team.

Inability to provide hard numbers.

Company culture does not support change.

Back lash from single workers.

Failure of other programs due to low utilization.

Managers do not view work/life initiatives as business tools that impact employee

retention.

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FACTORS AFFECTING EMPLOYEE RETENTION AT

TECHM

Most managers understand the importance of employee retention and its impact on the

overall health and vitality of an organization. The importance of retaining top

organizational talent will only increase over the coming years as the massive cohort of

baby boomers begin to reach retirement age making it easy for younger employees to find

work.

In a previous article we identified some useful tips to help improve employee retention in

your organization. Given the importance of employee retention, we have compiled

another list of 10 important factors that can affect employee retention in your

organization.

• Shorten the feedback loop

Do not wait for an annual performance evaluation to come due to give feedback on how

an employee is performing. Most team members enjoy frequent feedback about how they

are performing. Shortening the feedback loop will help to keep performance levels high

and will reinforce positive behavior. Feedback does not necessarily need to be scheduled

or highly structured; simply stopping by a team member's desk and letting them know

they are doing a good job on a current project can do wonders for morale and help to

increase retention.

• Offer a competitive compensation package

Any team member wants to feel that he or she is being paid appropriately and fairly for

the work he or she does. Be sure to research what other companies and organizations are

offering in terms of salary and benefits. It is also important to research what the regional

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and national compensation averages are for that particular position. You can be sure that

if your compensation package is not competitive, team members will find this out and

look for employers who are willing to offer more competitive compensation packages.

• Balance work and personal life

Family is incredibly important to team members. When work begins to put a significant

strain on one's family no amount of money will keep an employee around. Stress the

importance of balancing work and one's personal life. Small gestures such as allowing a

team member to take an extended lunch once a week to watch his son's baseball game

will likely be repaid with loyalty and extended employment with an organization.

• Beware of burnout

Staff adequately to reduce the amount of unwanted overtime a team member must work.

Some employees enjoy the extra money that accompanies overtime hours, while others

would rather spend their time with their families or doing other activities they enjoy.

Burnout can be a leading cause of turnover. Recognize the warning signs and give

employees a break when they need it.

• Provide opportunities for growth and development

Offer opportunities for team members to acquire new skills and knowledge useful to the

organization. If an employee appears to be bored or burned out in a current position offer

to train this individual in another facet of the organization where he or she would be a

good fit. Nobody wants to feel stuck in their position will no possibility for advancement

or new opportunities.

• The ability to provide input and be taken seriously

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Everybody has opinions and ideas, some are better than others. However every team

member wants to feel that their input is welcome and will be taken seriously without

ridicule or condescension. Some of the greatest ideas can come from the most unlikely of

places and people. Creating a culture where input is welcome from all level of the

organizational chart will help your organization grow and encourage employee retention.

• Management must take the time to get to know team members

It's not a big surprise that one of the greatest complaints that employees express in exit

interviews is a feeling that management didn't know they existed. Nobody wants to feel

like just another spoke in a big wheel. Managers are very busy - everybody is busy, but it

is crucial that managers and supervisors take the time get to know the team members who

work under them. Learn and remember a team member's name, what skills and talents

they bring to the table, and what their business interests are. The time spent by

management getting to know team members is well invested and can eliminate the

headaches caused by having to continually hire and re-train new employees.

• Provide the tools and training an employee needs to succeed

Nothing can be more frustrating to an employee than a lack of training or the proper tools

to successfully complete his or her duties. You wouldn't try to build a house without a

hammer, so why should an office job be any different? Providing a team member with the

tools and training she needs to be successful shows a commitment and investment in that

employee and will encourage the team member to stay with the organization.

• Make use of a team member's talents, skills, and abilities

All team members have knowledge, skills, and abilities that aren't directly related to their

job description, but are still useful to an organization. Utilizing a team member's talents

60

in areas other than their current position will indicate to an employee that management

appreciates and recognizes all that an employee has to offer to the organization. This can

also provide work variety and helps to break up the everyday grind of work.

• Never threaten a team member's job or income

While threatening an employee with termination or demotion might seem like a surefire

way to get the results needed from him or her, doing so will likely cause the employee to

leave the organization. Put yourself in the employee's shoes, what is the first thing you

would do if your job was threatened? Odds are you would probably update your resume

and start checking for open job postings expecting the worst. If a team member's

performance is not what you had hoped it would be, work with that team member on

ways to improve his performance, saving termination only as a last resort.

REASON FOR EMPLOYEE TO COME TO TECHM

Pay, Location, Benefits, Advancement Possibilities, Job Security, Nature Of

Work, Personal/Family Time.

REASONS FOR EMPLOYEE TO STAY WITH TECHM

Confidence Factor-they believe in potential success/leadership strategies

Emotional Factor- (Huge) contribution, recognition, appreciation

Trust Factor- 2 ways- promises/commitments kept (strong link to loyalty)

Fit Factor- Values/ethics are a good fit

Listening Factor- Are they heard and valued?

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SOLUTION FOR THE PROBLEMS

FINDING THE CAUSE OF ATTRITION

 Have a survey among employees to find the reasons for attrition. If possible, have exit

interviews to know the reasons for resignations. If a key employee resigns, it should be

taken up on a priority basis and the senior management should meet the employee to

discuss his reasons for leaving and evaluate whether his issues bear merit and whether

they can be resolved. Steps can be taken to avoid similar reasons from occurring in the

case of others, in similar positions.

 What can be done?

 Though, it is impossible to scrap problems totally, there are certain ways by which BPO

managements can tackle attrition. Since the every organisation is unique, these

companies need to develop innovative ways to tackle their problems. Human Resources

department of companies must address these issues, and along with the management need

to evolve strategies to retain employees at all levels.

 At the time of Recruitment  

Select the right people through competency screening.

Use psychometric tests to get people who can work at night and handle the

monotony.

Offer an attractive, competitive, benefits package.

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Make clear of performance enhanced incentives and other benefits. Keep these

promises, later.

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AT THE OFFICE

An employee’s work must be communicated to him clearly and thoroughly. The

details of the job, its importance, the way it should be done, maximum time that

can be allotted to complete it etc., must be made clear. If there are changes to any

of these, let the employee know at the earliest

Give the employees necessary tools, time and training. The employee must have

the tools, time and training necessary to do their job well - or they will move to an

employer who provides them.

Have a person to talk to each employee at regular intervals. Listen and solve

employee complaints and problems, as much as possible. Fairness and impartial

treatment by seniors is important. Help employees manage stress, both at work

and if possible, off work too. Give them special concessions, when in need. Treat

the employees well & provide dignity of job.

The quality of the supervision an employee receives is critical to employee

retention. Frequent employee complaints arise on this issue.

Provide the employees a stress free work environment. People want to enjoy their

work. Make work and work place cheerful and fun-filled as possible.

64

NIGHT SHIFTS

 

1. Have doctors to advise them about health problems and the ways and means to

deal with them. Provide dietary advice: - Dos and donts. Help them to maintain

their health.

2. Organize programmes where people from other professions, who have night shifts

talk to BPO employees about their experiences. Other organisations like Army,

Railways, Hospitals and various government services etc., also have night shifts.

3. Organize training, counselling and development programmes for employees. Tell

them that their work is important. Encourage the best performers 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.

4. If needed, provide special lights in the office/workplace to ensure that their bodies

get sufficient vitamin D.

One distinct disadvantage of night shifts is the sense of disorientation with friends

and family members. Concentrate on this problem and develop innovative solutions

and ways to deal with it. Additional holidays for work on national holidays and

festivals, holidays for family functions etc., can go a Long way.

65

EMPLOYEE RECOGNITION INCREASES RETENTION

It seems that now more than ever employee recognition is limited at best in many

organizations. Unfortunately many managers don't understand the importance of

recognizing a team member's hard work and a job well done. Many might even ask why

they should recognize their employees when they are "just doing their job." The truth is

that recognizing employees for their hard work is one of the least expensive and easiest

ways to improve the level of employee retention in your organization. The return on

investment for a manager's time and limited expenses can be incredible. Recognizing an

employee's performance reinforces positive behavior and encourages additional positive

behavior. If a team member feels that he or she is appreciated they will be much more

likely to repeat their behaviors in the future and even put out more effort than before.

When a business leader understands the power of recognizing his or her employees the

culture of an organization reacts to this recognition and moves in a positive direction

helping to retain more employees. Employee recognition can be as simple or as

extravagant as one desire. The following is a short list of simple ways to recognize team

members for a job well done and improve retention in your organization.

• A simple "thank you" or "nice job" given in regular frequency can significantly

boost team morale. Often times a team member will greatly appreciate the time

you spent to find him at his desk and deliver the message in person.

• Send a thank you card or e-card. Also photocopy the thank you and document the

reason for the recognition in the employee's file. Let the employee know you did

this - it will let her know that her hard work will not be forgotten.

66

• Movie tickets, gift certificates, or an engraved gift are excellent rewards for an

employee who has excelled or put in the extra effort to make a project happen.

• Recognize the team member's contribution in front of members of management.

This can reduce the tendency for employees to feel that their supervisors take all

the credit for their hard work.

• Recognize loyalty and exceeding expectations. Mention the team member's hire

anniversary, large contract won, or surpassing of a sales goal in the company

newsletter or at a staff meeting.

• Know how to recognize your staff. Not all staff members want to be singled out at

a gathering of hundreds of fellow team members, while for others it would make

their week. The approach to recognizing team members can vary greatly by

generational cohort. You might seriously embarrass a baby boomer by having

them stand up in front a

67

RETENTION MANAGEMENT STRATEGIES HELP TO DRIVE REVENUE GROWTH

Employee satisfaction is essential to any effective employee retention strategy - any good

HR manager knows that. However few managers think of the impact that employee

satisfaction has on their customers and ultimately company profits. One can assume that

happier, more productive employees will make more sales, treat customers better, and

ultimately make more money for the company, but few companies have analyzed this

assumption to the extent that Sears, Roebuck and Company has. Sears has put this

common assumption to the numbers test and the results are intriguing to say the very

least.

1992 was the worst year on record for Sears, losing almost 4 billion dollars on over 52

billion dollars in retail sales. The early and mid 1990s were truly trying times for the

retail giant and tested the will and resolve of managers and employees alike. During this

time the company was in near shambles, morale was low, revenues were suffering, and

the bottom line was hemorrhaging red ink. This was in stark contrast to nearly a century

of stellar results that Sears had comfortably enjoyed. For Sears, something needed to be

done, and fast!

Sears began their turnaround by identifying three key objectives: Creating a compelling

place to work, a compelling place to shop, and lastly creating a compelling place to

invest. One of the tools used to establish these objectives was the employee-customer-

profit chain. The employee-customer-profit chain is essentially a flow chart that diagrams

revenue creation starting with employee attitudes and satisfaction, followed by its effect

68

on customer satisfaction, and ultimately the effect on revenue and bottom line profit

generation.

One thing Sears realized it needed to do was exert a greater effort focusing on the

customer. This is often times easier said than done for many organizations. However

Sears took an innovative approach to increasing customer focus. Based on the employee-

customer-profit chain, it realized that it could not better focus on the customer without

first focusing on its employees.

For Sears 70% of its workforce was part-time status and turnover among its part-time

workforce had become alarmingly high. Sears suspected that low morale and poor

employee attitudes towards the company were to blame. Sears began a rigorous process

of measuring employee attitudes and satisfaction via a 70 question employee survey. The

results of this survey were then juxtaposed to customer satisfaction surveys and

ultimately compared to revenue and profit trends for the company. The correlations

drawn from the data were greater than Sears could have ever imagined.

Undoubtedly Sears expected to see some positive correlation between employee and

customer satisfaction and ultimately revenue and profit generation; however they were

amazed to see just how great an impact employee satisfaction levels had on the bottom

line. The data revealed that for each five point improvement on the employee attitude

scale, there was a subsequent 1.3% improvement in customer satisfaction, and a 0.5%

increase in revenue growth.

A 0.5% increase in revenue might sound miniscule, however when it is based on

revenues of over 50 billion dollars it adds up quickly and significantly. For Sears this

would equate to a 250 million dollar increase in revenues a year! This revenue increase

69

does not require investments into advertising, new facilities, or improved operations, only

an investment into the satisfaction and happiness of employees.

There are also cost savings that can be attributed to improved levels of employee

satisfaction. It should come as no surprise that happy employees stay in their jobs longer

than unhappy employees. By focusing on increasing employee satisfaction Sears was able

to concurrently increase revenues and reduce the costs associated with employee

turnover. Sears was also able to determine that employees with greater levels of

satisfaction and a favorable attitude towards the company were more likely to speak

positively about the company and recommend shopping there to friends and family

members.

By increasing employee satisfaction Sears was able to generate free word of mouth

advertising spread by its employees, thus in a way reducing the reliance on paid

advertising to generate revenue. Sears realized the importance of its employees and their

levels of satisfaction and made it a corporate goal to increase levels of employee

satisfaction throughout the company.

70

STUDY SUGGESTS EMPLOYEES LEAVE BOSSES, NOT JOBS

Careful selection of employees and managers can have a huge impact on your employee

retention efforts and employee turnover costs at your organization. It has been said more

than once, and for good reason, that employees leave their bosses - not their jobs. A

Florida State University study scheduled for full release in the Fall 2007 issue of

Leadership Quarterly confirms this. The study shows that 40% of employees work for

bad bosses based on survey results. The reasons that employers score poorly are varied

and many:

• 39% of workers said their supervisor failed to keep promises.

• 37% indicated their supervisor failed to give credit when due.

• 31% said their supervisor gave them the "silent treatment" during the past year.

• 27% report their supervisor made negative comments about them to other

employees or managers.

• 24% indicated their boss invaded their privacy.

• 23% said their supervisor blamed other to cover up personal mistakes or minimize

embarrassment.

So what does this all boil down to? The effects of having bad bosses in your organization

can be devastating. High turnover, poor employee morale, employee theft, diminished

customer service, substandard employee performance, lower production, and an

organizational culture of fear and mistrust can all be blamed in part on poor bosses and

managers. The costs of having poor managers and bosses can be incredible. Consider the

cost of employee turnover, which is different for all industries and positions, but has been

roughly estimated at $15,000 - $17,000 per employee in low to moderately skilled

positions.

71

EMPLOYEE RETENTION STRATEGIES FOR REDUCING EMPLOYEE TURNOVER COSTS

At The Rainmaker Group we are committed to helping your organization Maximize

Possibility by identifying and retaining top performers to achieve a high retention and

high performance workforce. We understand that time is money to your organization.

Every minute of every day that your employee retention problems persist your

organization is losing valuable time, energy, and resources. With the use of the powerful

tools at our disposal, our employee retention experts will get to know your team and

organizational culture better than you ever could have imagined. By doing so we can get

down to the real causes of employee turnover in your organization and develop an

employee retention program that is right for your team. Our employee retention

programs deliver results - we guarantee it! Our clients always see a sizable return on

investment in the form of improved profitability, reduced employee turnover, and

enhanced employee morale. Stop unwanted employee turnover dead in its tracks and get

back to doing what you do best: growing and leading your organization.

72

REAL HR PRACTICES - TECH MAHINDRA

To retain employees it is very important to give them a feeling of belongingness in the

company. For this they conduct many activities like:

1. There’s a weekly meeting of every dept where the employees are asked what their

expectations are from the company to make the atmosphere and climate joyful.

2. After every 15 days one day FUN TRIP is conducted (within 50-70 Kms) from

the company. Places like Essel world, Lonavla, Alibagh Beach, Matheran Hill

Station etc where the employee can have fun and relax from their regular work.

The destination of the fun trip is decided by the employee themselves. The

expense is held by the company.

3. Every Employee is given a Laptop, Mobile (Rs 500 card free every month) or

Landline Phone free.

4. “MY DAY”- Every week the employee can have 2 “my days”, i.e. for two days a

week they can have their own time away from office after 1.30 pm.

5. Annual Day – The annual day is on 24th dec. Every employee gets a gift voucher,

Lunch at some good hotel and a fun tour to Essel world or water Kingdom etc.

73

6. Annually they also have interdepartmental matches like Cricket Matches,

Volleyball Matches etc to improve team building and feeling of belongingness.

7. Culture: On every Indian festival there’s a big celebration.

a. Ex: On Sank rant they have a “BHARTIYA JEVAN”. They fly colourful

kites and have competition between the employees.

b. Ex: On Diwali they enjoy sweets and crackers with traditional dresses.

8. Departmental Lunch: Everyday one dept have lunch together. Each and every

member of the that Dept eat and drink together. This helps in improving the team

spirit and the feeling of belongingness in the dept.

9. Employee of the week- AWARD:

a. Every week one worker is honoured based on the performance of the

worker. This improves their moral and encourages them to work hard for

the coming week.

b. Every month one employee is honoured as Employee of the Month

c. Annually one employee is honoured as Employee of the year.

Their names are declared on the Notice board and company magazine which

encourages others also to work better.

10. New employees joining the company are given a training of 8-10 days.

The training consists of induction and orientation program along with a 2 day trip.

This is a good ice breaking session and helps them to know their colleague. The lasts

two days training is conducted in the actual job site.

74

11. Higher education: If any employee wishes for higher education the company

sends the employee to South Korea for training and encourages them to study

hard.

12. Car is provided to the entire manager and above. The petrol expense are taken

care by the company.

13. Annually every employee gets a 5 days paid leave.

14. The company provides the facility of all indoor games along with a Swimming

pool for the refreshment of the employee.

Ex. Table Tennis, Chess, Badminton, Snooker, etc.

75

BPO SECTOR INDUSTRYBUSINESS PROCESS OUTSOURCING

Business process outsourcing (BPO) is a broad term referring to outsourcing in all

fields. A BPO differentiates itself by either putting in new technology or applying

existing technology in a new way to improve a process.

Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive

business processes to an external provider that in turn owns, administers and manages the

selected process based on defined and measurable performance criteria. Business Process

Outsourcing (BPO) is one of the fastest growing segments of the Information Technology

Enabled Services (ITES) industry.

Few of the motivation factors as to why BPO is gaining ground are:

Factor Cost Advantage

Economy of Scale

Business Risk Mitigation

Superior Competency

Utilization Improvement

Generally outsourcing can be defined as - An organization entering into a contract with

another organization to operate and manage one or more of its business processes.

When there are so many benefits associated with BPO industry…. when there are so

many privileges for the BPO employees than what makes them to change the

76

company/industry?? Is it only MONEY that matters or anything else as well?? After

taking exit-interviews and analyzing the trend I am able to list out following reasons for a

BPO professional to change his/her job.

No growth opportunity/lack of promotion

For higher Salary

For Higher education

Misguidance by the company

Policies and procedures are not conducive

No personal life

Physical strains

Uneasy relationship with peers or managers

In an industry like BPO, the work can often be monotonous and opportunities for career

growth minimal. So when opportunities beckon, the high rate of attrition is not surprising.

However, there are some common reasons that especially cause people to leave. Surveys

have listed night shifts, money, inability to handle various types of stress, monotonous

work; company policies, lack of career growth, problems with those in senior positions

etc., as some of the most common reasons listed by BPO employees, as reasons for

quitting jobs.

77

OBJECTIVES OF THE STUDY

To analyze the retention management system adopted by Tech Mahindra.

To analyze about retention strategies at Tech Mahindra.

To analyze about organization and culture programme used in BPO/IT

companies.

To study about employee retention strategies and all the systematic effort used to

create and foster an environment that encourages current employees.

To know the reason of Tech Mahindra employees attrition and trends causing the

job churning, problems facing in retaining qualified people or achieving

workforce stability in a present implemented Employee Retention processes.

To know the extent of effectiveness of employee retention strategies adopted by

Tech Mahindra.

Exploring and developing the employee retention strategies to mitigate the effect

of factors causing high employee turnover

78

RESEARCH METHODOLOGY

RESEARCH DESIGN

A research design is purely and simply the framework or plan for a study that

guides the collection and analysis of data.

The research was taken in view of latest information and technology using in a

stock market or securities companies.

DATA SOURCES

Primary Data are those which are collected for the first time for a certain

investigation. These are original and essential raw data. No doubt the information

has been collected as per company's holistic development of investors used in

securities market controlling their risk. In the study, the primary data and

secondary data collection methods are used.

DATA SOURCES

Secondary data was obtained from journals, magazines, newspapers, books and

of course the Internet.

RESEARCH INSTRUMENT

For doing the survey research, structured questionnaire with both open-ended

and closed-ended questions was used.

79

PLACE OF STUDY

Tech Mahindra, Sector-58, Noida (Uttar Pradesh)

LIMITATIONS OF THE STUDY

Sample size is too small to reflect the opinion of the whole organization

Any organization should not reveal all the details of the Tech Mahindra with a

focus on investors’ behaviour in stock market.

There is a time bound limit, as no one can study exhaustively in a very less time

period of a number of days.

Lack of coordination and communication was experienced while collecting the

data for the present volatile market.

Respondents seemed to be over burdened with work so they didn’t give proper

attention.

People are hesitating in answering the question.

Employees were not interested in filling open- ended questions

80

GRAPHICAL DATA INTERPRETATIONS1 Reasons wise analysis at TECHM:Reasons Numbers Percentage

Personal Reasons(Relocation health Marriage) 14 23%

Higher Education 4 7%

Other Reasons 5 8%

Inadequate career growth/development opportunities 6 10%

Dissatisfaction with Payroll & Benefits. 16 27%

Problem with reporting manager 3 5%

Dissatisfied with Induction/ Training 3 5%

Dissatisfaction with working condition 3 5%

Lack of reward & Recognition opportunities 6 10%

Total 60  

GRAPHICAL DATA INTERPRETATION

As per above graph, there are 27% are dissatisfied with payroll and benefits provided by

TECHM and 23% are dissatisfied due to personal reasons, while most of dissatisfied due

to working condition, induction and training, recognition opportunities while rest are of

growth of career, reporting to manager and other reasons are mentioned.

81

2 Analysis on areas of improvement at TECHM:

Improvement Areas Numbers Percentage

Improvement in services like transport & cafeteria 10 17%

Any other areas 5 7%

Improvement in communication channels with TL's

/Managers

10 17%

Improvement in HR policies/guidelines/practices 15 25%

Improvements in organizational policies and practices 10 17%

Improvements in resources /materials infrastructure 10 17%

Total 60

GRAPHICAL DATA INTERPRETATION

As per above graph, there are 25% known their HR policies, guidelines, practices and

17% assume that there are improvement in organizational policies and practices, 17% are

of assume that improvements in resources and material infrastructure.

82

3 Is the training adequate at TECHM?

Is the training adequate at TECHM?

Feedback No. Percentage

Yes 38 63.33%

No 22 36.67%

Total 60

GRAPHICAL DATA INTERPRETATION

As per above graph, there are 64% approx assume that the training adequate at TECHM

while rest are assume as NO.

83

4 Is the induction adequate at TECHM?

Feedback No. Percentage

Yes 36 60%

No 24 40%

Total 60

GRAPHICAL DATA INTERPRETATION

As per above graph, there are 60% assumes that there should be induction adequate at

TECHM and rest are said NO.

84

5 Analysis on most and least liked practices at TECHM:

Best liked Practice  

Practice No. PercentageMedical 11 18%Education Policy 6 10%Bi- Annual Appraisal 17 28%All Policies are good 12 20%Leave Policy 10 17%Marriage 4 7%

Total 60

GRAPHICAL DATA INTERPRETATION

As per above graph, there are 28% assume that the best bi-annual appraisal at TECHM

while 20% assume that all policies are good while 17% assume that the leave policy are

good and rest are above mentioned and liked by the employees of TECHM.

85

6 Referring or suggesting their friends / colleagues / relations to join TECHM or

NO?

Yes 44 73%

No 16 27%

Total 60

GRAPHICAL DATA INTERPRETATION

As per above graph, there are 73% assume that they are suggesting their friends

/colleagues / relations to join TECHM while rest are said ‘No’.

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7 Anything which could prevent from departure to their employees at TECHM?

Change No. PercentageNothing 13 22%Good Pay Package 25 42%Long Leave 12 20%Promotion 10 16%Total 60

GRAPHICAL DATA INTERPRETATION

As per above graph, there are 42% said that good pay package prevent from departure to

their employees while 20% said long leave and rest promotion policies i.e. 16% of

TECHM prevents to leave their employees.

87

8 MAJOR FACTOR OF JOINING NEW ORGANIZATION

Factor No. Percentage

Not Joining any Company 22 30%

Salary 18 37%

Promotion & Salary 6 10%

Change of TL 9 15%

Designation 5 8%

Total 60

GRAPHICAL DATA INTERPRETATION

As per above graph, there are 37% said that salary is the best way to join a new

organization while 30% said that not joining any company, 10% said that salary and

promotion is basic aims of their career growth path while 15% aims are of change of TL

and rest are desire of their designation as well.

88

1 Reasonwise analysis :

Total Respondents for the month 60

Reasons Numbers Percentage

Personal Reasons(Relocation health Marriage) 6 10%

Higher Education 5 8%

Other Reasons 5 8%Inadequate career growth/development opportunities 6 10%

Dissatisfaction with Payroll & Benefits. 10 17%Problem with reporting manager 13 22%

Dissatisfied with Induction/ Training 4 7%

Dissatisfaction with working condition 4 7%Lack of reward & Recognition opportunities 7 12%

Total 60  

Reason Wise March-April'07

0%

5%

10%

15%

20%

25%

Pers

onal

Reasons(R

elo

catio

n

health

Marr

iage)

Hig

her

Educatio

n

Oth

er

Reasons

Inadequate

care

er

gro

wth

/develp

om

ent

opport

uniti

es

Dis

atis

factio

n w

ith

Payro

ll &

Benefit

s.

Pro

ble

m w

ith

report

ing m

anager

Dis

satis

fied w

ith

Inductio

n/ T

rain

ing

Dis

satis

factio

n w

ith

work

ing c

onditi

on

Lack o

f re

ward

&

Recogniti

on

opport

uniti

es

Reason

%

According to the survey done in IICM, the most prompting reason for the employees appears to be “problem with the reporting manager” as it got 22% votes followed by “Dissatisfaction with Payroll & Benefits” with 17% .

89

Analysis on areas of improvement for organization

Improvement Areas Numbers PercentageImprovement in services like transport & cafeteria 13 22%

Any other areas 10 17%Improvement in communication channels with Managers 12 20%Improvement in HR policies/guidelines/practices 10 17%Improvements in organizational policies and practices 7 12%

Improvements in resources /materials infrastructure 8 12%

Total 60  

Areas of Improvement: IICMin spite of being considered as one of the place to work, majority of employees think “Improvement in communication channels with Managers” need to be improved with 20% votes

90

0%

5%

10%

15%

20%

25%

Impr

ovem

ent i

nse

rvic

es li

ke tr

ansp

ort

& c

afet

eria

Any

oth

er a

reas

Impr

ovem

ent i

nco

mm

unic

atio

nch

anne

ls w

ith

Man

ager

s

Impr

ovem

ent i

n H

Rpo

licie

s/gu

idel

ines

/pra

ctic

es

Impr

ovem

ents

inor

gani

zatio

nal p

olic

ies

and

prac

tices

Impr

ovem

ents

inre

sour

ces

/mat

eria

lsin

fras

truc

ture

Areas

%

Is the training adequate at TechM?

Feedback No. Percentage

Yes 34 56.67%

No 26 43.33%

Total 60

Was the training Adequqte?

56.67%43.33%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

Yes No

Feedback

%

Training: Around 57% employees are satisfied with the training programmes

91

Is the Induction adequate at TechM?

Feedback No. Percentage

Yes 33 55%

No 27 45%

Total 60

Was Induction Adequate ?

55%45%

0%

10%

20%

30%

40%

50%

60%

Yes No

Feedback

%

Induction: Around 55% employees think that induction program was adequate

92

Analysis on Most and Least liked practices at

TechM

Best liked Practice  

Practice No. Percentage

Medical 12 20%

Education Policy 12 20%

Bi- Annual Appraisal 26 43%

All Policies are good 3 5%

Leave Policy 5 8%

Marriage 2 4%

Total 60

Most Liked Policy

20% 20%

43%

5% 8% 4%0%5%

10%15%20%25%30%35%40%45%50%

Medical

EducationP

olicy

Bi-

Annual

Appraisal

All

Policies

are good

LeaveP

olicy

Marriage

Policy

%

Best Liked Practices: “Bi annual appraisal” appeared to be the best liked practice at

Tech Mahindra Ltd. which has got 43% whereas about the least liked practices,

“NO INCENTIVES” got 32%

93

Least liked Practice at TechM.  

Practice No. Percentage

Leave Policy 16 27%

Nothing 4 6%

No Incentives 19 32%

Appraisal 6 10%

Transfer Policy 15 25%

Total 60

Most Disliked Policy March-April'07

27%32%

10%

25%

6%0%

5%

10%

15%

20%

25%

30%

35%

LeaveP

olicy

Nothing

No

Incentives

Appraisal

TransferP

olicy

Policy

%

Interpretation: Referring or suggesting their friends to join the

Company or Not?

94

Feedback No. Percentage

Yes 39 65%

No 21 35%

Total 60

Referring to Friends March-April '07

65%

35%

0%

10%

20%

30%

40%

50%

60%

70%

Yes No

Feedback

%

Interpretation: Referring to Friends about 65% employees said that they will refer

this company to their family and friends.

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ANYTHING WHICH COULD PREVENT FROM DEPARTURE

Change No. Percentage

Nothing 11 18%

Good Pay Package 20 33%

Long Leave 4 7%

Promotion 6 10%

Good hr practices 10 17%

Change of TL 9 15%

Total 60

Prevention from Departure March-April '07

18%

33%

7% 10%17% 15%

0%

5%

10%

15%

20%

25%

30%

35%

Nothi

ng

Goo

d Pay

Pac

kage

Long

Lea

ve

Prom

otion

Goo

d hr

pra

ctice

s

Chang

e of T

L

Change

%

Prevention from departure: “Good pay package” seems to be the primary reason

which can prevent employees from leaving

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MAJOR FACTOR OF JOINING NEW ORGANIZATION

Factor No. Percentage

Not Joining any

Company 9 15%

Salary 21 35%

Promotion & Salary 12 20%

Good hr practices 10 17%

Designation 8 13%

Total 60

Factor For joining new organization March-April '07

15%

35%

20% 17%13%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Not Joiningany

Company

Salary Promotion &Salary

Good hrpractices

Designation

Factor

%

Major factor joining other company: “Good pay package” appears to be the

primary reason with 35% for joining the other company followed by “salary and

promotion” with 20%supports

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FINDINGS & ANALYSIS

1. According to the survey done in Tech Mahindra, the reason which prompts

employees to leave the company appear to be” Dissatisfaction with Payroll &

Benefits” with27% followed by Personal Reasons (Relocation health Marriage)

as it has got 23%.

2. Areas of Improvement: Tech Mahindra employees think that HR policies need be

improved which got 25%votes.

3. Training: Around 63% employees are satisfied with the training programmes.

4. Induction: Around 60% employees think that induction program was adequate.

5. Best Liked Practices: “Bi annual appraisal” appeared to be the best liked practices

whereas about the least liked practice, “leave policy” seem to be fall in this

category.

6. Referring to Friends: About 73% employees said that they will refer this company

to their family and friends.

7. Prevention from departure: “Good pay package” seem to be the primary reason

which can prevent employees from leaving.

8. Major factor joining other company: “Salary” appears to be the primary reason for

joining the other company.

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FUTURE SCOPE - CHALLENGES FOR A HR PROFESSIONAL IN BPO

Brand equity: People still consider BPO to be "low brow", thus making it difficult to

attract the best talent.

Standard pre-job training: Again, due to the wide variety of the jobs, lack of general

clarity on skill sets, etc, there is no standard curriculum, which could be designed and

followed.

Benchmarks: There are hardly any benchmarks for compensation and benefits,

performance or HR policies. Everyone is charting their own course.

Customer-companies tend to demand better results from outsourcing partners than what

they could actually expect from their own departments. "When the job is being done

10,000 miles away, demands on parameters such as quality, turn around timeliness,

information security, business continuity and disaster recovery, etc, are far higher than at

home. So, how to be more efficient than the original?

Lack of focused training and certifications given this background, the recruiting and

compensation challenges of HR departments are only understandable.

In general a person with any graduation can join any of the BPO. Some BPO's like to

take people with MBA but then again the specialization are of an individual hardly makes

any difference. Again, this is the industry; where there is no reference checks and very

often people don't even specify there exact age. Lets me share with you some of the

reasons as why people prefer to join a company:

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• Not get a better job.

• Find nothing better to do.

• Education level doesn't matter.

• Good work environment.

• Good Benefits.

• Flexibility of time.

• Attractive life style.

• Transport facility.

WHY PEOPLE LEAVE IN BPO COMPANY?

When there are so many benefits associated with BPO industry.when there are so many

privileges for the BPO employees than what makes them to change the

company/industry?? Is it only MONEY that matters or anything else as well?? Here are

some of the reasons for a BPO professional to change his/her job.

1. No growth opportunity/lack of promotion

2. For higher Salary

3. For Higher education

4. Misguidance by the company

5. Policies and procedures are not conducive

6. No personal life

7. Physical strains

8. Uneasy relationship with peers or managers

 

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HR RETENTION PRACTICES ADOPTED BY TECHM

As per NHRDN has specifically recognized Tech Mahindra for its performance

orientation that has become central to the company culture. The performance

management system at the company is aligned to both, the business goals and values

adherence. The company values/ operating principles are broken down into behavioral

indicators that are observed and measured on a regular basis, which in turn linked to the

personal effectiveness parameters in an individual's performance review. There is also an

ongoing emphasis on training needs assessment and people development. Tech Mahindra

was also noted for its innovative practices in the areas of attracting the right talent,

reward and recognition, promoting fun as a written down operating principle, learning,

employee communication and compensation which are amongst the key reasons for the

spectacular success of the company.

A part from the legal and mandatory benefits such as provident-fund and gratuity, these

are: --

1. Group Medi-claim Insurance Scheme: This insurance scheme is to provide

adequate insurance coverage of employees for expenses related to hospitalization

due to illness, disease or injury or pregnancy in case of female employees or

spouse of male employees. All employees and their dependent family members

are eligible. Dependent family members include spouse, non-earning parents and

children above three months.

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2. Personal Accident Insurance Scheme: This scheme is to provide adequate

insurance coverage for Hospitalization expenses arising out of injuries sustained

in an accident. This covers total / partial disablement / death due to accident and

due to accidents.

3. Subsidized Food and Transportation: The organizations provide transportation

facility to all the employees from home till office at subsidized rates. The lunch

provided is also subsidized.

4. Company Leased Accommodation: Some of the companies provides shared

accommodation for all the out station employees, in fact some of the BPO

companies also undertakes to pay electricity/water bills as well as the Society

charges for the shared accommodation. The purpose is to provide to the

employees to lead a more comfortable work life balance.

5. Recreation, Cafeteria, ATM and Concierge facilities: The recreation facilities

include pool tables, chess tables and coffee bars. Companies also have well

equipped gyms, personal trainers and showers at facilities.

6. Corporate Credit Card: The main purpose of the corporate credit card is enable

the timely and efficient payment of official expenses which the employees

undertake for purposes such as travel related expenses like Hotel bills, Air tickets

etc

7. Cellular Phone / Laptop: Cellular phone and / or Laptop are provided to the

employees on the basis of business need. The employee is responsible for the

maintenance and safeguarding of the asset.

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8. Personal Health Care (Regular medical check-ups): Some of the BPO'S

provides the facility for extensive health check-up. For employees with above 40

years of age, the medical check-up can be done once a year.

9. Loans: Many BPO companies provide loan facility on three different occasions:

Employees are provided with financial assistance in case of a medical emergency.

Employees are also provided with financial assistance at the time of their

wedding. And, the new recruits are provided with interest free loans to assist them

in their initial settlement at the work location.

10. Educational Benefits: Many BPO companies have this policy to develop the

personality and knowledge level of their employees and hence reimburses the

expenses incurred towards tuition fees, examination fees, and purchase of books

subject, for pursuing MBA, and/or other management qualification at India's top

most Business Schools.

11. Performance based incentives: In many BPO companies they have plans for,

performance based incentive scheme. The parameters for calculation are process

performance i.e. speed, accuracy and productivity of each process. The Pay for

Performance can be as much as 22% of the salary.

12. Flexi-time: The main objective of the flextime policy is to provide opportunity to

employees to work with flexible work schedules and set out conditions for

availing this provision. Flexible work schedules are initiated by employees and

approved by management to meet business commitments while supporting

employee personal life needs .The factors on which Flexi time is allowed to an

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employee include: Child or Parent care, Health situation, Maternity, Formal

education program

13. Flexible Salary Benefits: Its main objective is to provide flexibility to the

employees to plan a tax-effective compensation structure by balancing the

monthly net income, yearly benefits and income tax payable. It is applicable of all

the employees of the organization. The Salary consists of Basic, DA and

Conveyance Allowance. The Flexible Benefit Plan consists of: House Rent

Allowance, Leave Travel Assistance, Medical Reimbursement, Special

Allowance

14. Regular Get together and other cultural programs: The companies organizes

cultural program as and when possible but most of the times, once in a quarter, in

which all the employees are given an opportunity to display their talents in

dramatics, singing, acting, dancing etc. Apart from that the organizations also

conduct various sports programs such as Cricket, football, etc and regularly play

matches with the teams of other organizations and colleges.

15. Wedding Day Gift: Employee is given a gift voucher of Rs. 2000/- to Rs. 7000/-

based on their level in the organization.

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RECOMMENDATIONS

It is recommended that the Tech Mahindra provide their best technique in

considering must be adopted to check the MTI effect in more appropriate manner

in initial round. .

It is recommended that the Tech Mahindra provides their talent express should be

modified to grab quality resources.

It is recommended that the facility management should me improved like lockers

should be given to all employees.

Attrition problem in BPO is consistent, so to over come win-win model needs to

be devised for this, satisfying the needs of both, the employer and the employee.

Needs of the employer : To get maximum returns from each employee, recover

training and development costs, minimize cost in terms of time in training new

workforce, ensure that adequate no of people are there to carry on the process.

Needs of the employee : Enriched job profile, better career path, challenging

work environment, future prospects of the job.

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SUGGESTIONS

1. Develop an attractive employee value proposition.

An employee value proposition means that your company has something attractive to

offer that is perceived as valuable to an employee. as an employer, you must understand

what makes your organization attractive to potential recruits and current employees.

Branding yourself as an employer of choice is not just a slick set of marketing tactics.

The best advocates for an employer’s brand are its current employees. What messages do

they send to others about their employer? Are they honestly saying and believing that,

“This is a great place to work.”

2. Create a total reward structure that includes more than compensation.

Every company should have all the normal compensation mechanisms common to their

type of employment. yet, total rewards packages go far beyond money. While money

might temporarily retain employees, it does not always equate with engagement. People

want a chance to make a difference and realize themselves. That self-realization is multi-

dimensional and different for each employee. The total reward structure should include,

in addition to compensation, support for employees to attain their personal objectives

aligned with the goals of their organization.

3. Give feedback on employee performance on a regular basis.

Most managers and employees are not enamored with the performance appraisal process

in their organization. yet, an effective performance management process serves many

purposes. Ongoing performance feedback allows employees to better know where they

stand, gives them a formal means to provide input, indicates that their managers pay

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attention to them and that their performance matters. This feedback contributes to

employee engagement and retention.

4. Be flexible in terms of work-life balance.

Workers more and more value a balance between work and life. They want more flexible

ways to engage with their employer. To attract and retain workers with different work

and career expectations, organizations have to be more flexible in structuring work and

its expectations. It calls for a different managerial mindset and practices that involve

letting go of old ways of controlling workers’ time and attendance in favor of result

criteria such as output, productivity and quality.

5. Create a culture of engagement.

Employees have become more connected with others in the organization through project-

based team work and process management activities. Employees are shifting their loyalty

to people, teams and projects and away from company loyalty. It is organizations that

create the culture and climate that allow people, processes and projects to become fully

connected and engaged with one another. Engaged employees are more likely to stay

with their employer.

6. Train managers to be effective.

Exit interviews consistently show that “poor and bad” management practices greatly

contribute to an employee’s decision to leave a company. It is imperative to provide

supervisors and managers with adequate tools to become effective managers since we

cannot assume that these competencies are innate.

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CONCLUSION

It is concluded that retention strategies adopted by Tech Mahindra and other BPO’s

companies it plays an important role for small and medium BPOs, that has been receiving

considerable attention from academicians, researchers and practicing HR managers. In its

essence, retention comprises important elements such as the need or content, search and

choice of strategies, goal-directed behaviour, social comparison of rewards

reinforcement, and performance-satisfaction. The increasing attention paid towards

Retention is justified because of several reasons. Motivated employees come out with

new ways of doing jobs. They are quality oriented. They are more productive. Any

technology needs motivated employees to adopt it successfully. Several approaches to

Retention are available. Early theories are too simplistic in their approach towards

Retention. For example, advocates of scientific Management believe that money is the

motivating factor. The Human Relations Movement posits that social contacts will

motivate workers. Mere knowledge about the theories of Retention will not help manage

their subordinates. They need to have certain techniques that help them change the

behavior of employees. One such technique is reward. Reward, particularly money, is a

motivator according to need-based and process theories of Retention. For the behavioral

scientists, however, money is not important as a motivator. Whatever may be the

arguments, it can be stated that money can influence some people in certain

circumstance. Being an outgrowth of Herzberg’s, two factor theory of Retention, job

enrichment is considered to be a powerful motivator.

An enriched job has added responsibilities. The makes the job interesting and rewarding.

Job enlargement refers to adding a few more task elements horizontally. Task variety

helps motivate job holders. Job rotation involves shifting an incumbent from one job to

another.

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BIBLIOGRAPHY

BOOKS / JOURNALS

Charles R. Greer, Strategic Human Resource Management: A General Managerial

Approach, Second Edition, Person Education, 2008.

“Perceived Supervisor Support: Contributions to perceived organizational support

and Employee Retention”. Journal of Applied Psychology, 2008, 565-573

Khanewal Rohit (February 2008), "Winning the Retention Game", Human

Capital, Pg. 10-12.

Human Resource Management C.B.Memoria

MAGAZINES & NEWS PAPERS

BUSINESS WORLD

BUSINESS TODAY

OUTLOOK

The Economic Times

The Hindustan Times

The Hindu Business Standard Line

WEBSITES

www.techmhr.com

www.hrbpoindustry.com

www.bpo.org

www.techmahindrabpo.com

www.googlesearchengine.com

www.bpoindia.org

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ANNEXURES

QUESTIONNAIRE

Name : _____________________

Qualification : _____________________

Designation : _____________________

1 What are the reasons which are prompting you to leave?

1. Higher Education

2. Personal Reasons

3. Dissatisfaction with pay/benefits

4. Problems with reporting manager (relocation, health, marriage etc.)

1. Dissatisfaction with induction/training

2. Dissatisfaction with working conditions

3. Inadequate career growth/development opportunities

4. Lack of reward & recognition opportunities

5. Any other reasons(Please specify)

2 In which areas are improvements required to be done to change the perceptions of

people about the organisation?

1. Improvements in organisational policies/practices

2. Improvements in HR policies/guidelines/practices

3. Improvements in services like transport, cafeteria etc.

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4. Improvements in communication channels with team leaders/managers/Centre

Head

5. Improvements in resources/materials/infrastructure

6. Any other areas (Please specify)

Please specify the improvements which you feel are required in the above areas in the

space given below

3 Did you find the training adequate?

If yes why?

If no why?

4 Did you find the induction adequate?

If yes why?

If no why?

5 To what extent on a scale of 1 - 10 would you rate the leadership qualities of your

reporting manager?

Rating 10 9 8 7 6 5 4 3 2 1

1. Give one practice you liked the best and why

2. Give one practice you liked the least and why

6 What circumstances could have prevented your departure from the company?

7 Would you recommend this company to your family/friends?

1. If yes why?

2. If no why?

Please let us know the major attracting factor in the new organisation you propose to join.

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Any other comments/suggestions which you would like to make

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