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    Employee Retention Strategies

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    Janardhan Thokchom
    This document discusses employee retention strategies. It begins by defining employee retention and explaining why it is important to retain top performers. The major strategies discussed for retaining employees include creating a positive work environment, strategies for employee growth and development, building strong employee relationships, and effective compensation strategies. The document then presents a case study on how the company Naukri adjusted its retention strategies during an economic downturn by focusing on company culture, empowering employees, and revising its employee stock ownership plan. The results were low turnover and many key employees returning after leaving. The lessons highlighted were having a compelling reason for employees to stay, managing talent through economic cycles, and adjusting compensation strategies as needed.

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    Employee Retention Strategies

    Uploaded by

    Janardhan Thokchom
    136 views18 pages
    This document discusses employee retention strategies. It begins by defining employee retention and explaining why it is important to retain top performers. The major strategies discussed for retaining employees include creating a positive work environment, strategies for employee growth and development, building strong employee relationships, and effective compensation strategies. The document then presents a case study on how the company Naukri adjusted its retention strategies during an economic downturn by focusing on company culture, empowering employees, and revising its employee stock ownership plan. The results were low turnover and many key employees returning after leaving. The lessons highlighted were having a compelling reason for employees to stay, managing talent through economic cycles, and adjusting compensation strategies as needed.

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    methods and ways to retain employees

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    This document discusses employee retention strategies. It begins by defining employee retention and explaining why it is important to retain top performers. The major strategies discussed for retaining employees include creating a positive work environment, strategies for employee growth and development, building strong employee relationships, and effective compensation strategies. The document then presents a case study on how the company Naukri adjusted its retention strategies during an economic downturn by focusing on company culture, empowering employees, and revising its employee stock ownership plan. The results were low turnover and many key employees returning after leaving. The lessons highlighted were having a compelling reason for employees to stay, managing talent through economic cycles, and adjusting compensation strategies as needed.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    136 views18 pages

    Employee Retention Strategies

    Uploaded by

    Janardhan Thokchom
    This document discusses employee retention strategies. It begins by defining employee retention and explaining why it is important to retain top performers. The major strategies discussed for retaining employees include creating a positive work environment, strategies for employee growth and development, building strong employee relationships, and effective compensation strategies. The document then presents a case study on how the company Naukri adjusted its retention strategies during an economic downturn by focusing on company culture, empowering employees, and revising its employee stock ownership plan. The results were low turnover and many key employees returning after leaving. The lessons highlighted were having a compelling reason for employees to stay, managing talent through economic cycles, and adjusting compensation strategies as needed.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 18

    Presented by:

    Jagdeep Kaur
    15MBA1071
    Aalam
    15MBA1074
    Th. Janardhan Meetei- 15MBA1075

    Content
    What is employee retention?
    Why is it necessary to retain top
    performing employees?
    What the major strategy to retain
    employees?
    Case study

    What is employee
    retention?
    Employee retentionrefers to the ability
    of an organization to retain its employees
    Efforts to retain employees should be
    targeted at valuable, contributing
    employees.
    Employee turnoverresulted from low
    employee morale, absence of a clear
    career path, lack of recognition, poor
    employee-manager relationships or many
    other issues

    Why is it necessary to
    retain top performing
    employees

    Cost minimization
    Star performer
    Rigorous hiring process
    Familiarity of company policies,
    culture and ethics
    Employee loyalty
    Competitor

    What the major strategy to retain


    employees

    Working environment
    Employee growth strategies
    Employee relationship strategies
    Employee compensation strategies

    Compare the two pictures

    Working environment
    Workplace that attracts, retains and
    nourishes good people.
    Developing a corporate mission,
    culture and value system to insisting on
    a safe working environment.
    Example of good working environment
    Google India
    Marriot hotel, India
    American Express, India

    Fun at work
    Open door policy
    Talent development program
    Cross departmental exposure
    Rewards and recognition

    Employee relationship strategies

    What can you do as a Manager to improve


    employee relationship
    Write a letter of commendation and send a copy to the
    family.
    Write a letter to the family thanking them for supporting
    your employee.
    Have an open house. Invite the families for a tour to see
    what the spouse/parent does.
    Hold social activities such as family picnics, holiday
    parties, special events.
    Celebrate birthdays.
    Take people out to dinner to celebrate an achievement.
    Hold public celebrations when the company hits major
    milestones.

    Employee growth strategies

    Employee growth strategies deal with personal


    and professional growth.
    Good employees want to develop new knowledge
    and skills in order to improve their value in the
    marketplace and enhance their own self-esteem.
    Training and education can include:
    in-house curriculum for skills training and
    development
    outside seminars and workshops
    cross-training
    bringing in outside experts to educate employees
    about subjects that affect their personal lives.

    Employee compensation strategies


    Effective employee compensation strategies stem from one
    fundamental principle: money alone will not retain most
    employees.`

    Smart employers use a variety of hard (monetary) and


    soft (non-monetary) employee compensation strategies
    Discuss total employee compensation (salary, benefits, bonuses,
    training, etc.).
    Design reward systems to stimulate employee involvement.
    Use flexible employee benefits to respond to a changing
    workforce.
    Offer stock options.
    Offer time off, other forms of non-financial employee
    compensation.
    Provide childcare and/or eldercare.
    Provide employee assistance programme

    Case study on employee retention


    The story.Naukri.com, the Indian online recruitment
    company, was founded in 1997. At that time there
    were only 14,000 internet users in India.
    Twelve years and an estimated 50m internet users
    later, the company had come a long way. After an
    initial public offering and expansion into other related
    businesses under the umbrella of its Info Edge parent
    company, Naukri had become Indias leading online
    recruitment company by 2009.
    From the start, Naukri had encouraged an
    organizational culture that valued energy,
    enthusiasm, youth and experimentation. This
    contrasted with the more hierarchical structure at
    many Indian companies and made Naukri the hot
    dotcom business in India for young, bright talent

    The challenge.One of Naukris attractions


    had been its employee stock option plan
    (ESOP). But when the Indian stock market
    plunged following the onset of the global
    financial crisis in late 2008, this lost its appeal
    as a hiring and retention tool.
    Senior executives feared that several
    employees would be tempted by job offers
    from other technology companies.
    Personnel decisions had always been key to
    Naukris growth and development. Now the
    challenge for the company was to adjust its
    hiring and retention strategy, and to keep
    employees motivated.

    The strategy.The company decided to focus more on providing a compelling


    rationale for why anyone should want to work for Naukri.
    Knowing that the falling share price had made the ESOP less attractive, Sanjeev
    Bikhchandani, the companys co-founder and chief executive, and Hitesh Oberoi,
    who went on to become the chief operating officer, took two quick steps to
    address employees financial concerns. First, instead of offering new ESOPs at
    the market price, which had been standard policy, the company issued ESOPs at
    the lower price of Rs10 so employees could see value in them.
    Second, the company introduced monthly financial incentives for its sales team,
    replacing the previous quarterly scheme that was similar to those at many other
    Indian companies.
    Mr Bikhchandani and Mr Oberoi also emphasised the companys culture,
    portraying Naukri as a business that represented the new, young, vibrant India,
    offering a fun work environment and the chance to grow within the organisation.
    The team highlighted Naukris huge brand equity, respect in the market, easy
    access to top management and the incentive of seeing ones work reflected in
    customer traffic to the company.
    Naukris leaders pointed out that working for a large US tech company might
    seem tempting but employees would probably have to wait much longer to get
    to a senior level with the ability to make things happen. At Naukri, by contrast,
    anyone in the marketing or technical department with an idea for improving the
    company website could get this implemented immediately and see the impact.

    The results.Most of Naukris top team from the founding stage


    have stayed with the company. Personnel turnover is low
    compared with other companies in the online recruitment sector,
    and in particular when compared with Indias tech and businessprocess outsourcing (BPO) industries.
    In addition, several key executives who did leave Naukri
    subsequently returned.
    The lessons.Companies must have a compelling rationale at all
    times for why anyone should work for them. They should be ready
    to manage talent through the boom and bust cycle, especially in
    an emerging economy.
    When designing ESOPs, they should be realistic about the pull of
    this tool when the economy is sluggish, and be prepared to adjust
    the terms.
    Companies can contain the cost of talent with sound retention
    policies such as putting people in jobs that play to their core
    strengths, empowering them so that they can perform to their
    best and having an energetic, vibrant and entrepreneurial culture.

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