A Synopsis on Project

Employee retention : a special reference to the jain irrigation systems ltd., jalgaon (2008-09)
Submitted for the partial fulfillment of MBA(HR) to Yashwantrao Chavan Maharashtra Open University, Nashik.

Submitted By Patil Yogesh L.

Guided By Prof. R. V. Deshmukh

Submitted to Nutan Institute of Management Development and Research, Jalgaon.

(June 2011)

INTRODUCTION It's one of the largest costs in all different types of organizations, yet it's also one of the most unknown costs. It's employee turnover. Companies routinely record and report costs such as wages and benefits, Workman's Compensation Insurance, utilities, materials, and space, yet most companies have no and report the cost of employee turnover. It can be much higher than you think. How Much is it Costing You? Several well-regarded studies have recently estimated the cost of losing an employee:

SHRM, the Society for Human Resource Management, estimated that it costs $3,500.00 to replace one $8.00 per hour employee when all costs -- recruiting, interviewing, hiring, training, reduced productivity, et cetera, were considered. SHRM's estimate was the lowest of 17 nationally respected companies who calculate this cost!

Other sources provide these estimates: It costs you 30-50% of the annual salary of entry-level employees, 150% of middle level employees, and up to 400% for specialized, high level employees!

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Do a quick calculation: Think of a job in your organization where there has been some turnover, perhaps supervisors. Estimate their annual average pay and the number of supervisors you lose annually. For example, if their average annual pay is $40,000, multiply this by .125% (or 125% of their annual pay, a reasonable cost estimate for supervisors). This means it costs $50,000 to replace just one supervisor. If this company loses ten supervisors a year, then 10 times $50,000 equals $500,000 in replacement costs for just supervisors. This is the bottom line cost. The top line cost? If the company's profit margin is 10%, then it costs $5,000,000 in revenues to replace these ten supervisors.

Do These Numbers Seem Unbelievable? Here's an actual calculation from a well-regarded

organization in my community. The HR Manager of this human services organization (housing for disabled persons, sheltered workshops, etc.), estimated that 30 entry level people leave his organization on average every quarter. This averages out to ten people per month. Let's be extra conservative and shave SHRM's estimate (see above) down to $3,000.00 to replace each employee.

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This amounts to $30,000 per month, or $1,000.00 in employee turnover costs every day of the month! Annually, this totals $360,000.00. Actual turnover costs are usually much higher than we think they are -- until we estimate them. IMPORTANCE OF THE STUDY You may be thinking, "Some employee turnover is unavoidable, even desirable." You're right. Some turnover is necessary, to replace marginal or poor employees with more productive ones and to bring in people with new ideas and expertise. However, high turnover costs are both avoidable and unnecessary. This is where companies need to focus their efforts. The goal is to retain valued performers while replacing poor ones. Most companies group both types of performers together when looking at turnover. By doing so, they're missing the cost and significance of replacing the good performers. RATIONALE The once-revered concept of company loyalty sure has taken a beating in recent years. Today, the idea of spending a lifelong career in the service of a single company seems hopelessly outdated to most workers. In fact, according to recent labor market
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statistics, the typical employee will change jobs anywhere from five to ten times over the course of their career. No group embodies this fickle ethos more fully than todays younger workers. So-called Gen-Y and millennial workers have never known a world in which lifelong employment with one company was the norm. Paired with this groups tendency to prize personal satisfaction over job stability and financial security, the prospect of hanging onto your talented younger workers can often turn into a tricky proposition. OBJECTIVES OF THE STUDY To study how the Employee Retention is necessary. To study the returns generated by Employee Retention strategies of a Company. HYPOTHESES A hypothesis is the proposition, condition, or principle which is assumed perhaps without belief, in order to draw out its logical consequences and by this method to test its accord with facts which are known or may be determined. A hypothesis is the proposition which the researchers wants to verify. Hypothesis is generally concern with cause of certain phenomena or relationship between two variables taken under the

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investigation. The hypothesis proportion for the study had been framed as under The returns generated by Employee Retention strategies of a Company is to retain a good performer employee. RESEARCH METHODOLOGY The research will be based on primary data collections through sample survey and personal interviews. A limited use of secondary data is also intended. Details in this respect are given below: Area of Study: The area of study is Jalgaon city which is rapidly developing city of Maharashtra. Selection of organization: The research will be based on purposive sampling method. The reason behind the selection of this method is to get more authentic information. Also due to paucity of time this representative sampling method is more suitable for research. Survey Method: Descriptive Analysis. Sample Size: 100 employees of The JAIN IRRIGATION SYSTEMS Ltd., Jalgaon. Time Span: Survey will be conducted during April 2008 to March 2009 and the period will be of one year. A structured

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schedule can be used to collect necessary details from the respondents. Personal Discussions: Besides the actual survey, personal discussions with bankers, technical experts and customers can be conducted. It is helpful for revealing some information which could not be covered by the structured schedule. Primary Data: Primary sources are original works. These sources represent original thinking; reports on discoveries, or share new information. Usually these represent the first formal appearance of original research. Primary source statistical data, manuscripts, surveys, speeches, biographies /

autobiographies, diaries, oral histories, interviews, works or art and literature, research reports, government documents, computer programs, original documents (birth certificates, trial transcript.) etc. Here the primary data is collected through

Questionnaires for one year 2008-09 from 15% of employees of the organization. Secondary Data: Secondary sources are usually studies by other researchers. They describe, analyze, and / or evaluate
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information found in primary sources. By repackaging information, secondary sources make information more accessible. A few examples of secondary sources are books, journal and magazine articles, encyclopedias, dictionaries, handbooks, periodicals, indexes, etc. Here the secondary data is collected from various websites, newspaper reports and various magazines. Analysis of Data: The collected data will be analyzed with the help of necessary statistical tools and techniques such as average, percentage, mean, bar diagram, etc. EXPECTED CONTRIBUTION The research study will be useful for small scale organization. The company will come to know which type of employee retention strategy is to be used. The organization will come to know what are the expressions and expectations of the small scale organization from employee retention strategy. The organization will come to know which steps should takes to may the existing employee retention strategy more comprehensive and suitable.

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CHAPTERIZATION: The chapterization for present research will be as follows 1. Introduction 2. Employee Retention: A Theoretical Analysis 3. The JAIN IRRIGATION SYSTEMS Ltd., Jalgaon: An Overview 4. Need of Employee Retention in The JAIN IRRIGATION SYSTEMS Ltd., Jalgaon. 5. Data analysis and interpretation 6. Conclusion 7. Suggestions Bibliography Appendix 1: Questionnaire

Student (Patil Yogesh)

Guide (Prof. R. V. Deshmukh)

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