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PROJECT REPORT ON RETENTION STRATEGIES OF PRIVATE BANKS (ICICI, HDFC & SCB)
Submitted in partial fulfillment of the requirements for the award of the degree of

Bachelor of Business Administration (BBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Ms Sneha Sharma

Submitted by: Amit Kumar 08424401710

Institute of Innovation Technology & Management, New Delhi 110058

Batch (2010-2013)

Certificate
I, Mr./Ms._______________________________, Roll No. ________________ certify that the Project Report/Dissertation (BBA-310) entitled ________________________________ is done by me and it is an authentic work carried out by me at ___________________________ (Name of the organisation or of the Institute). The matter embodied in this project work has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief. Signature of the Student Date:

Certified that the Project Report/Dissertation (BBA-310) entitled __________________ done by Mr./Ms._______________________________, Roll No. ________________, is completed under my guidance. Signature of the Guide Date: Name of the Guide: Designation: Address: Institute of Information Technology & Management, New Delhi110058

Countersigned Director/Project Coordinator

ACKNOWLEDGEMENT

I have taken efforts in this project. however; it would not have been possible without the kind support and help of many individuals and organization. I would like to extend my sincere thanks to all of them.

I am highly indebted to INSTITUTE OF INNOVATION IN TECHNOLOGY AND MANAGEMENT for their guidance and constant supervision as well as for providing necessary information regarding the project and also for there support in completing the project.

I would like to express my special gratitude and thanks to Ms. ALKA SAHNI - BRANCH MANAGER OF ICICI BANK JANAKPURI, Mr.Sandeep Srivastava Deputy Manager at HDFC Bank and Nidhi Rawal HR Relationship Manager at Standard Chartered BANK.

I would like to express my gratitude towards my project guide Ms Sneha Sharma for her kind cooperation and encouragement that helped me in completion of this project.

EXECUTIVE SUMMARY

Retention management was ranked first by HR professionals as the most challenging, among the various workforce management processes that they are charged with. A majority of the respondents (65%) consider this to be an area of shared accountability with other functional heads.

It appeared that for every level in the organization, there were different sets of reasons for retention most often requiring strategies for retention. Our study findings establish very clearly that one-size-fits-all strategies are not likely to work and organizations need to address retention at different levels through different interventions. These findings support the literature, which suggests that individuals seek different rewards from the job and the organization, as they gather experience and grow in their jobs and careers. The challenge for most organizations was to identify the causal factors leading to retention at various levels and evolve targeted retention strategies as quickly and efficiently as possible.

The research suggests that the core reason people join organizations is different from those that compel them to leave.

It is interesting to note that there is a disconnect between the reasons for retention and the push factors identified by the respondents in our research. As an example, compensation does not figure in the reasons for retention for the junior and middle level managers, yet features prominently in the list of push factors for both levels (with the reverse being true for the senior level managers). It would seem that the reasons for retention are based on the respondents actual learning from exit interviews with those who have left their companies. This is in line with what is reported by global literature on retention.

On the other hand, the push factors seem to be reported based on what is generally believed by executives, to be the reasons people leave companies, not surprisingly, compensation features prominently..

A look at the retention strategies from an overall perspective indicate that HR professionals believe that it is through providing people opportunity to grow and develop that you can retain talent. It is also noticed that employee engagement is a leading retention strategy employed in India. Our data provides ample evidence that work culture, supervisors management style and profile of people in the company are, clearly, key factors that should be paid attention to. It is clear that compensation alone is not going to achieve the goal of retention.

CONTENTS S No 1 2 3 4 5 6 7 8 Topic Certificate (s) Acknowledgements Executive Summary List of Tables List of Figures List of Symbols List of Abbreviations Chapter-1: Introduction 1.1Literature review 1.2 Company Profile 1.3Retention strategies used in ICICI,HDFC and SCB 1.4Objectives of ICICI,HDFC and SCB 9 10 11 12 13 Chapter-2: Methodology Chapter-3: Data Analysis & Interpretation Chapter-4: Summary and Conclusions References/Bibliography Appendices Page No -

CHAPTER 1

INTRODUCTION Employee Retention

This entails understanding just a little history. The term employee retention first began to appear with regularity on the business scene in the 1970s and early 80s. Until then, during the early and mid-1900s, the essence of the relationship between employer and employee had been (by and large) a statement of the status quo: You come work for me, do a good job, and, so long as economic conditions allow, I will continue to employ you. It was not unusual for people who entered the job market as late as the 1950s and 60s to remain with one employer for a very long timesometimes for the duration of their working life. If they changed jobs, it was usually a major career and life decision, and someone who made many and frequent job changes was seen as somewhat out of the ordinary. As a natural result of this status quo emplo yer-employee relationship, an employee leaving his or her job voluntarily was seen as an aberration, something that shouldnt really have happened. After all, the essence of status quo is just that little or nothing should change in the relationshipand leaving was a pretty big change!

What is Employee Retention? Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees. Employee retention matters as organizational issues such as training time and investment; lost knowledge; insecure employees and a costly candidate search are involved. Hence f a i l i n g t o r e t a i n a k e y e m p l o ye e i s a c o s t l y p r o p o s i t i o n

f o r a n o r g a n i z a t i o n . V a r i o u s estimates suggest that losing a middle manager in most organizations costs up to five times of his salary. Intelligent employers always realize 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 t h e b e s t in the business, or even for the second or the third best. Retention of k e y employees and treating attrition troubles has never been so important to companies In an intensely competitive environment, where HR managers are poaching fromeacho t h e r , o r g a n i s a t i o n s c a n e i t h e r h o l d o n t o t h e i r e m p l o y e e s t i g h t o r l o s e t h e m t o competition. For gone are the days, when employees would stick to an employer for years for want of a better choice. Now, opportunities abound. It is a fact that, retention of key employees is critical to the long-term health and successor any organization. The performance of employees is often linked directly to quality work, c u s t o m e r s a t i s f a c t i o n , a n d i n c r e a s e d p r o d u c t sales and even to the image of a com pan y.

Employee retention matters, as, organisational issues such as t r a i n i n g t i m e a n d investment, costly candidate search etc., are

i n v o l v e d . H e n c e , f a i l i n g t o r e t a i n a k e y employee is a costly proposition for any organization. Various estimates suggest that losing a middle manager in most organizations, 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.

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The Importance of Retaining Employees

The challenge of keeping employees:

1. Its changing face has stumped managers and business owners alike.
2. How do you manage this challenge? 3. 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 becausesimply putemployee 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 organizations goals and serve customers well. Replacing employees costs money. The cost of replacing an employee is estimated at up to twice the individuals annual salary (or higher for some positions, such as middle management), and this doesnt even include the cost of lost knowledge. Recruiting employees consumes a great deal of time and effort, much of it futile. Youre 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 youre short-staffed, you often need to put in extra time to get the work done.

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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 reward.

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 dont respect employee.

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 peoples needs and reactions.

Rewards Are the extra perks you offer beyond the basics of respect and recognition that make it worth peoples 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 a. Increased productivity b. Reduced absenteeism c. A more pleasant work environment (for both employees and you) d. Improved profits

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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 workplaceone with a waiting list of applicants for any position that becomes availablepurposefully, one day at time.

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EMPLOYEE RETENTION WHEEL

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The first step to improving your employee retention is to understand why employees stayw i t h t h e i r c u r r e n t e m p l o ye r . M a n y " e x p e r t s " d w e l l o n t h e r e a s o n s e m p l o ye e s l e a v e , 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 t h a t t h e s e e f f o r t s a r e n o t e n o u g h t o r e t a i n g o o d e m p l o ye e s w h e n t h e s u p p o r t t h a t i s needed to achieve job success is not adequate.

Keys Employee Retention Wheel Is truly what gives employees a consistent reason for saying "no thank you" when tempted with a "sweeter offer?" After years of study and experience, Key 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 t hat keep employees successful at their jobs, thus reducing the high costs associated with unwanted employee turnover.

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COMPANY PROFILE

ICICI BANK

ICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91 billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million) for the year ended March 31, 2011. The Bank has a network of 2,774 branches and about 10,021 ATMs in India, and has a presence in 19 countries, including India.

ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries in the areas of investment banking, life and non-life insurance, The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE)

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ICICI Bank Limited (the Bank) is a banking company. The Bank, together with its subsidiaries, joint ventures and associates, is a diversified financial services group providing a range of banking and financial services, including commercial banking, retail banking, project and corporate finance, investment banking, broking and treasury products and services. It operates under four segments: retail banking, wholesale banking, treasury and other banking

Vision
To be the leading provider of financial services in India and a major global bank.

Mission
i. ii. We will leverage our people, technology, speed and financial capital to be the banker of first choice for our customers by delivering high quality, worldclass products and services. iii. Expand the frontiers of our business globally

play a proactive role in the full realisation of India's potential iv. Maintain a healthy financial profile and diversify our earnings across businessman and geographies. v. vi. vii. Maintain high standards of governance and ethics Contribute positively to the various countries and markets in which we operate Create value for our stakeholder

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HDFC BANK

HDFC Life is Indias leading private life insurance company offering a range of individual and group insurance solutions. It is a joint venture between Housing Development Finance Corporation Limited (HDFC), Indias leading housing finance institution and Standard Life PLC, the leading provider of financial services in the United Kingdom. In 2010-11, the companys total premium income stood at R9004 crore In 2010, HDFC Life partnered with the Yuva Unstoppable in Ahmedabad, Gujarat to bring English, general knowledge and leadership development to government school children, touching the lives of about 1000 disadvantaged children. HDFC Life was awarded the Yuva unstoppable Icon Award by former president APJ Abdul Kalam in September 2010 HDFC Life employs a mix of both innovative and cost effective sources of recruitment to reach the right applicants. We have a graduate trainee programme to select, train, and groom fresh graduates from across the country, who are looking for a rewarding career in insurance industry and thereby ensure a ready pool of insurance trained sales professionals for the company. Our employee referral policy apart from providing a source for quality recruitment ensures that candidate is a good fit to the companys culture. Our management trainee programme ensures quality managers for future. We also have a rehire policy to bring back former

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employees. We also encourage lateral movement in the interest of overall career enrichment of individuals. We have had more than 49% vacancies filled from within in the year 2010-11. Our flexi working hours, benevolent employee leave policy, Friday/weekend dressing, paternity leave are some of the newer additions. Owing to fast pace of recruitment in insurance industry, dependence on external sources (especially consultants) is higher which accounts for highest recruitment cost. The industry average for external sourcing is 60-65% and the rest 40-35% is through internal sourcing

Vision To be customer driven best managed enterprise that enjoys market leadership in providing housing related finance.

Mission To provide a package of attractive financial services for housing purposes through a competent and motivated team of employees using the state of the art technology to maintain financial stability and growth of the organization whilst contributing to the national goal of providing decent housing to all.

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Standard Chartered BANK

IT is a British multinational banking and financial services company headquartered in London, United Kingdom. It operates a network of over 1,700 branches and outlets (including subsidiaries, associates and joint ventures) across more than 70 countries and employs around 87,000 people. It is a universal bank with operations in consumer, corporate and institutional banking, and treasury services. Despite its UK base, around 90% of its profits come from Africa, Asia and the Middle East. Standard Chartered has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately 33 billion as of 23 December 2011, the 13th-largest of any company with a primary listing on the London Stock Exchange.It has secondary listings on the Hong Kong Stock Exchange and the National Stock Exchange of India. Its largest shareholder is the Government of Singapore-owned Temasek Holdings. The Standard Bank was a British bank founded in the Cape Province of South Africa in 1862 by Scot, John Paterson. Having established a considerable number of branches, Standard was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. Half the output of the second largest gold field in the world passed through The Standard Bank on its way to London. Standard expanded

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widely in Africa over the years, but from 1883 to 1962 was formally known as the Standard Bank of South Africa. In 1962 the bank changed its name to Standard Bank Limited, and the South African operations were formed into a separate subsidiary which took the parent bank's previous name, Standard Bank of South Africa Ltd. Standard Chartered announced an agreement on 27 April 2010 to buy the African custody business from Barclays PLC in order to provide the bank with custodial capability in its African markets. On 13 May 2010, Standard Chartered PLC launched the first-ever Indian Depository Receipt IDR offer On 17 June 2010, Standard Chartered Bank and the Agricultural Bank of China strengthened their strategic partnership .Hong Kong has been identified as a potential pilot region for the two banks' co-operation journey. The two banks' declared aim is to cooperate to provide their corporate and individual customers with world class financial markets products. A joint co-operation committee will be formed by both banks to drive the strategic direction of the partnership. The committee was to be co-chaired by Peter Sands, CEO of Standard Chartered, and Zhang Yun, President of ABC.In December 2010, Standard Chartered was recognised as the Global Bank of the Year in The Banker's Bank of the Year 2010 awards. Income rises 10 per cent to US$17.64 billion, profits 11 per cent to US$6.78 billion. Strong balance sheet growth: customer loans up 9 per cent to $269 billion and customer deposits up 11 per cent to $352 billion.. Diverse income 24 markets delivered over US$100 million of income, 14 over US$100 million of profit.

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Business momentum continued Consumer Banking profits up 26 per cent and Wholesale Banking exceeding US$5 billion for the first time. Expense growth in line with revenue growth whilst continuing to invest in the business. Ongoing support for customers, lending up 91 per cent since 2006. Annual dividend per share increased 10 per cent to 76 cents per share.

Visionandmission
An organisations aspirations and strategies for the future

The vision describes the main purpose of an organisation; its reason to exist. As a long term view of where the organisation is aiming, a vision should be both aspirational and achievable. This part of our model illustrates the influences on an organisation, the environment in which it operates and the factors which support and steer the fulfilment of their vision. A mission summarises where the organisation is going over a given period as it moves towards achieving its vision. The mission must be practical and realistic, and have the support of all employees and other relevant stakeholders.

Strategies are achievable and accountable plans to reach the objectives of the mission. The strategies should also be in keeping the organisations values and culture the way things are done around here.

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External factors Economic environment

This is the state of the economy in any country where the organisation operates, including; where it is based; countries into which it sells; countries from which it sources products and services. Issues such as inflation, interest rates, employment, and economic growth or decline all affect the success of an organisation. The organisation needs to be steered through the ups and downs of the economic cycle.

Technological advancements
Technological developments can give organisations a competitive advantage. Recent changes in internet and ebusiness technology have made a dramatic impact on many businesses. Developments in technology also enable more efficient processes, faster research and development and improved sharing and use of data. These are all illustrations of why successful organisations should keep abreast of emerging technologies.

Social environment
Organisations are increasingly recognising that they have a requirement to demonstrate to their stakeholders that not only have they effectively managed finances

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RETENTION STRATEGIES USED IN ICICI , HDFC AND STANDARD CHARTERED BANK

SCB BANK SCB using Employee Retention Strategies

According to the bank focuses on the performance of the internal people who can quicken their self-development and fit with their leadership roles in the changed environment because leadership development is needed for sustainability, growth of the business and a satisfied employee. Because of the rapid growth of multinational companies, building their internal talent pipelines is essential. In-house training and development is the most important of successful organization (Gareth Waiters cited by E.learning age, 2009). Therefore, leadership development is a good method of the bank by focusing on their employees that benefit both direct and indirect to organization which provide opportunities for existing employees and retaining valuable employees. There are some other benefits from the leadership development program to the appropriate performers: Encourage employee morale: It is the most apparent benefit with the most difficult measurement. Poor managers can make their team distressed, and the troubled team would not do their jobs well. Effective managers are important to lead their team and prevent the impact on the work environment. Less employee turnover: Leadership development program is also a retention program that attracts talent employees motivated by showing them the respect and career path and developing them the higher needed skills. Employee turnover impacts directly to the costs of recruitment and training new employees. Its better to give the talent employees rewards to keep them.

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More productivity: Talent managers are able to lead their team with the minimize barrier. Any error might be reduced while the productivity tends to increase because of the effective elements of the program that help managers to be the talent and accomplish the organizations goal. Better vision: When managers are well-bonded with their team, they can see any problem affecting them better. The problems tend to solve easier and keeps the group vision away from the blind side of the problems. If the managers walk with their team, the tangible goal set tends to be built for the team achievement. Best supporter: effective managers are best supporters that make their team comfortable enough to share new ideas, and letting them to create and discuss any ideas in positive. Being good helpers of their team creating new ideas can help organization moving forward dynamically To get the managers with their best skills which is the way of leadership development, Standard Chartered introduces a structured interview process which would help them to create profiles to improve their self-awareness, coaching and self-help tools. The structured interview process has shown a high reliability and validity. Some strong points of this interview are employees are asked the same questions and rated in the same scale of evaluation. With the same standard of interview process, its easier for managers to evaluate their teams performance without any arguments of their team about the bias answers and unfair process. Standard Chartered is like the other multinational enterprises that facing the situation of skill people shortage in the emerging markets. Instead of hiring external candidates which cost expensively and risk losing the internal talents who work hard for the organization but nobody sees them as valuable assets. Talent Management is an effective strategy that is introduced as core strategic objectives to serve the critical positions of the organization.

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HR practices in performance management are used to advice managers how they support their talents and plan for the future needs of talents, and develop themselves becoming the talent as well. The global standards and tools are launched to solve the distance trouble between managers and their local talents; it is the Country Conversations, the appraisal process that use the booklet as the source of action so that there are no problems what kind of managers personalities is. The bias would be reduced obviously. This approach strategy shows that HRs role is not the main leader but advisor for the managers to manage th eir talents. And with the Human Capacity Scorecard that is developed becoming the extensive database keeping employees and businesses performance. It is an essential measurement to classify employees performance with other factors effecting toward their performance. This scorecard can be used in various purposes such as acquisition, development and retention. Standard Chartered Bank decides to focus on the people strengths instead of the old HR model for serving the urgently case of the lack of talent in the emerging markets. However, in the long run, the HR competency model would be more effective and standard. Moreover, it is necessary for the sustainably business success. Another interesting tool that is used in this case is a structured interview process which helps managers themselves in their leadership development and also their team performance improvement. Standard Chartered emphasizes the internal pipeline of people which would benefit to employees who try to be the talents and the organization which get the talent with loyalty. Performance management is not about the appraising and rating performance but it involves training and development, rewarding and planning for the future organizational capacity. In the business market, there is no the best strategy for all of the organizations all the time. The business environment could always change. The best way is to choose the strategies that would be optimal for the organization at that time like Standard Chartered that choose the strategies for today situation to solve the talent

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shortage, and the goals to be the talent factory and become increasing leadership capacity by 2011.

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HDFC BANK

HDFC Bank using Customer Retention Strategies

With bad economy, HDFC Bank has come out with well tailored customer retention strategies. Though not known to be as aggressive as ICICI Bank, HDFC Bank has now started to focus more on existing customers. This is done more in order to prevent existing customers from switching accounts. Last morning I got a call from a lady who told me that she has been assigned to my account based on the balance I maintain. So for my account 1) All charges has been waived off 2) Services like locker, de-mat etc would now be charged at 50%. Would let me know in case it can be waived off completely 3) The charges on my debit card have been taken off. 4) Gave her number to contact regarding any service This happened not only for my high balance account but all 4 accounts which my wife, brother and father maintain. I was particularly moved by the way they waived off all charges and converted my account to a classic account. While they have little relationship with HDFC but they were much ready to discuss the home loan stuff and wanted to help on that front too. I see this more as a welcome move at the time when finance markets has to get down to the basics i.e. look after their existing customers. I am sure others would now follow suit and ultimate beneficiary would be the customer.

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Everyone must recall how last year people shifter tomes of money from private banks to public ones like SBI. Though too late, these banks have started to reposnse.

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ICICI BANK ICICI BANK USING CUSTOMER RETENTION STRATERGY

The aim of this research is to analyze the impact of several customer satisfaction-relevant constructs that influence customers decision to stay or leave their bank. These constructs were rated by customers as having strong effects on loyalty on their banks. An effort will also be made to ascertain the views of those who are using the service of ICICI Bank, and afterward give some recommendation how to increase the customer satisfaction and market share through better customer service. The banking industry is highly competitive, with banks not only competing among each other; but also with non-banks and other financial institutions. Most bank product developments are easy to duplicate and when bank provide nearly identical services, they can only distinguish themselves on the basis of price and quality. The competition gave the customer bargaining power and switching power to choose the product and service. To retain the customer and satisfy the customer is the major issue for the organization to become cost leadership and to become product/ service differentiation. To maintain the service quality in the cost conscious market is the challenge to the organization. The organization use various driver of the customer satisfaction to retain the customers, such as service quality, customer value and customer loyalty. In the retail banking industry the service quality is the main criteria to enhance the business. Heskett at al., (1997) said that the high quality of service believed to be influenced by customer value and customer satisfaction, again the customer satisfaction directly influence the customer loyalty.

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Day (1990) said that in order to become cost leadership and product/service differentiation it is required to create superior customer value. The customer were satisfied when they feel they were getting more out of what they paid in, therefore it is important for the banking industry to meet the expectation of the customers. Higher the perceived benefit, higher the customer value and result in high satisfaction and loyalty.

Customer Value: A firm which gives value to its customers receives the customer satisfaction as an out come. Day (1990) advocated that in todays competitive environment, creating superior customer value is most important for companys performance. The concentration of the firm on the customer values leads to increase the profit as well as market value. Porter (1980) said that a company can adopt two market strategies (1) cost leadership and, (2) product differentiation. But Day (1990) argued that both the strategies have same objective to create superior customer value. Without the superior customer value the achieving of market leadership is in vain. Again Khalifa (2004) said that the concept of customer value is used not only in different fields such as finance, economics, management, information system, justice, ethics, etc., but including relationship marketing, customer behavior, pricing and strategy. The consumer value signifies how the customers recognize product or services, not what the firm wants to deliver to its customers. Customer value is linked to use of a product or services. Woodruff (1997) said that the customer value is related to the trade off between what the customer pays in exchange for acquiring and using a product or services from seller and what the customer viewed what he/she received.

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OBJECTIVES

HDFC

Customers To provide a caring customer service anticipating solutions required by our customers and innovatively satisfying them beyond expectations.

Shareholders To optimize return on shareholders' funds.

Organization To commit ourselves to the highest standards in corporate and business ethics whilst maintaining financial stability and growth.

Employees To motivate, develop, recognize and reward our employees.

Community To be strongly committed to contribute to the national goal of providing shelter for all.

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Industry Setting industry benchmarks of international standard in delivering customer value through out comprehensive product range, customer service and all our activities Ethics Maintaining the highest ethical standards worth of a leading corporate citizen

ICICI BANK

Broad objectives of the ICICI are: (a) to assist in the creation, expansion and modernisation of private concerns; (b) to encourage the participation of internal and external capital in the private concerns; (c) to encourage private ownership of industrial investment.

What are the functions of the ICICI? (i) It provides long-term and medium-term loans in rupees and foreign currencies. (ii) It participates L* the equity capital of the industrial concerns. (iii) It underwrites new issues of shares and debentures. (iv) It guarantees loans raised by private concerns from other sources. (v) It provides technical,managerial and administrative assistance to industrial concerns

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Capital Initially: The Corporation started with the authorised capital of Rs. 25 crore. At the end of June 1986, the authorised capital was Rs. 100 crore and the paid-up capital was 49.5 crore. Various sources of financial resources of the Corporation are Indian banks, insurance companies and foreign institutions, including the world Bank, and the public. The government and the IDBI have also provided loans to the Corporation.

Financial Assistance: The performance of the ICICI in the field of financial assistance provided to the industrial concerns has been quite satisfactory. Over the years, the assistance sanctioned by the Corporation has grown from Rs.14.8 crore in 1961-62 to Rs. 43.0 crore in 1970-71 and Rs. 36229 crore in 2001-02. Similarly the amount disbursed has increased from Rs.8.6 crore in 1961-62 to Rs.29.8 crore in 1970-71 and to Rs. 25831 in 2001-02. Cumulatively, at the end of March 1996, the ICICI has sanctioned and disbursed financial assistance aggregating Rs. 66169 crore and Rs. 36591 crore respectively.

What are the features of ICICI? The important features of the functioning of the ICICI arc as given below: (i) The financial assistance as provided by the ICICI includes rupee loans, foreign currency loans, guarantees, underwriting of shares and debentures, and direct subscription to shares and debentures.

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(ii) Originally, the ICICI was established to provide financial assistance to industrial concerns in the private sector. But, recently, its scope has been widened by including industrial concerns in the public, joint and cooperative sectors. (iii) ICICI has been providing special attention to financing riskier and non-traditional industries, such as chemicals, petrochemicals, heavy engineering and metal products. These four categories of industries have accounted for more than half of the total assistance. (iv) Of late, the ICICI has also been providing assistance to the small scale industries and the projects in backward areas. (v) Along with other financial institutions, the ICICI has actively participated in conducting surveys to examine industrial potential in various states. (vi) In 1977, the ICICI promoted the Housing Development Finance Corporation Ltd. to grant term loans for the construction and purchase of residential houses. (vii) Since 1983, the ICICI has been providing leasing assistance for computerisation, modernisation and replacement schemes; for energy conservate; for export orientation; for pollution controller balancing and expansion: etc. (viii) The ICICI has not contributed much to reduce regional disparities. About three-fifth of the total assistance given by the ICICI has been received by the advanced states of Maharashtra, Gujrat and Tamil Nadu. (ix) With effect from April 1, 1996, Shipping Credit and Investment company of India ltd, (SCICI) was merged with ICICI. (x) The ICICI Ltd. was merged with ICICI Bank Ltd. effective from May 3, 2002.

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Standard Chartered Bank Development of BSC begins with determining or updating the companys over-all strategy or vision and mission (reflecting the values of the company). Understandably, it is

advisable to clarify the organizations future direction right from the start. In this phase, it is important to consult with top management, rather than line managers, to obtain a clear picture of where the company wants to be in, say, three (3) to five (5) years. With the

corporate strategy in place, one now has the guide in the derivation of three to five goals relative to the four or more, depending on industry or corporate that applies it perspectives that are of customers, internal business, innovation or growth and learning, and the financial -- and the development of specific measures to support each goal. Subsequently, the BSC approach proceeds by associating with each objective series of measures and targets, and by identifying initiatives that relate to this objective. Finally, the BSC approach cascades objectives and measures down to business units, teams and even individuals.

In short, the BSC approach requires articulation of vision and strategy, establishment of objectives that support the vision and strategy, and development of the relevant measurements that can tract progress toward the objectives. (While dispensable in relation to our purpose, let us still mention that the next steps are creating systems for relevant data collection and analysis, and matching of reward systems to objectives .

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CHAPTER 2

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RESEARCH METHODOLOGY
The research design indicates the type of research methodology under taken to collect the information for the study .The researcher used both descriptive and analytical type of research design for his research study. The main objective of using descriptive research is to describe the state of affairs as it exists9 at present. It mainly involves surveys and fact finding enquiries of different kinds. The researcher used descriptive research to discover the characteristics of employees.The researcher also used analytical research design to analyze the existing facts from the data collected from the employees.

OBJECTIVES RESEARCH OBJECTIVE To study attrition among employees in the company. To study the retention strategies used by the company. To study the challenges which come in the path of retaining an employee in the company. To study the causes and consequences of attrition

RESEARCH METHODOLOGY Primarily through Corporate offices, websites, articles, through questionnaires, company records, research organizations, research libraries, individual one to one interviews from company officials. Interviews of company officials, customers with the help of structured questionnaire are the most suitable method to collect information in the study. Websites, company brochures, newspapers, company magazines, and websites have been major

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sources of information. Standardized questionnaires will be prepared after studying the secondary data carefully. For Part I of the project: o Got a clear idea about concepts of retention strategy. o Understood the general working of employee. o Learnt about each process by discussions with the respective executives in charge in the bank. For PART II of the project: o Understood the retention strategy through various documents and articles. o Analyzed the exit interview forms in depth to understand the reasons for resignations

LIMITATIONS OF THE STUDY

However I shall try my best in collecting the relevant information for my research report,yet there are always some problems faced by the researcher. The prime difficulties which I face in collection of information are discussed below:-

Data collected is based on questionnaire. The result would be varying according to the individuals as well as time. Some respondents hesitated to give the actual situation; they feared that management would take any action against them

The findings and conclusions are based on knowledge and experience of the respondents sometime may subject to bias.

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The time period for carrying out the research was short as a result of which many facts have been left unexplored.

Lack of time and other resources as it was not possible to conduct survey at large level.

Only 50 employees have been chosen which is a small number, to represent whole of the population

While collection of the data many consumers were unwilling to fill the questionnaire. Respondents were having a feeling of wastage of time for them

Area of study
The area of study is in ICICI, HDFC & SCB

Research instrument:
The Structured questionnaire is used as the research instrument for the study.

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CHAPTER 3

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DATA ANALYSIS

1. How long have you been thinking about leaving the company.

More than 5 months SCB 38%

One month or less HDFC 32%

One to 5 months ICICI 30%

This study is based out the primary research and I would like to gather primary data from the questionnaire itself as per this question suggested employee thinking to switchover the job and since how long they are thinking like the same. 30% of the people in ICICI suggested that they are trying to switch over their Job in 5 months.38% of the people in SCB suggested that they trying some other company more than last 5 months and 32% of the people in HDFC looking out for Job out side in last one month. This is the one of the major concerning area for the banking sector .

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2. How satisfied are you with your respected banks currently working for.

ICICI 38%

HDFC 32%

SCB 30%

This question giving an insight of the satisfaction level of the employees as per this study 30 % of the employees of SCB is satisfied, 32 % in HDFC and 38 % in ICICI with the work. This area is called the gray area for every banks because almost half of the people are not happy with the bank although some 40 % of the people are satisfied or very satisfied to working with the company.

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3. How is your working experience till now.

SCB 20% ICICI 50%

HDFC 30%

This question is meant for the till now how employee of ICICI , HDFC and SCB is experienced towards there satisfaction level , as per our study suggested that 50 % of the people working in ICICI are thinking positive than the other employees working in HDFC ( 30 %) and SCB(20%) .Recommendation for the HR team of these two banks is to find out the gap analysis and try to cover up this pitfall in the employee behavior.

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4. If your experience is more negative, than what factors do you hold responsible for that. Select all that apply.

Medical benefits Vacation 2% 5% Relocation 4%

Any Other 8%

My preformance evaluation and outcome 14%

My role, responsibility 7%

My compensation 23% My co-workers 12% My boss 17%

Job training 8%

This question is primarily made for the for what reason employees of this company are perceiving that they have lesser positive and more negative experience with their banks. As per our graph suggested that 23% of the employees have lesser compensation than there perceiving value which is why they are not experiencing good while working with this company. 12% of the employees suggested that there bank workers are not good so they have negative powerhouse in there thinking. 17% of the people suggested that their Boss is not cooperative and so they are not happy to working with there respected bank. These are the area where HR can work out and try to reduce this anxiety as much as possible. Because ultimately the employees are not happy with this company.

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5. Rank the following reasons in the order of priority if you have to consider them for leaving the job

Personal reasons 9% Work not challenging 8%

Reallocation 10%

Benefits 7%

Better job opportunities 9% Commutation 9%

Working conditions 13%

Pay 10%

Family reasons 15%

Conflict with other employees 10%

Reason which is cause for leaving the job of any employees would be various but I try to figure out some of the basic causes which is why people would like to leave this organization, as per our study 13% of the employee accepted that the working condition is not good while 10% of them wanted to leave this organization because of the lower salary pay , 15% of the employees want to leave this organization for the family reasons although 9% of the employees want to leave this company because of the better opportunity that will have in the other banks. It is very good point that banks like HDFC, ICICI and SCB can think off to reduce the causes factor which is possibly force employee to quit the organization.

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6. How flexible is the company with respect to your family responsibilities

Somewhat inflexible 12%

Very inflexible 15%

Very flexible 25%

Neither 25%

Somewhat flexible 23%

In terms of the flexibility that provided by the company to there employees could be the one of the reason which force employees to quit the organization. As per our study suggested that almost 48% of the employees of this these banks perceived that there company is quite flexible in terms of family responsibility although 27% of the employees are not happy with the kind of the flexibility provided by there banks.

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7. Do you have a clear path for career advancement?

HDFC YES 40% SCB 30%

ICICI 30%

As per this question 40% of the employees of HDFC has a clear path in career planning than ICICI (30%) and SCB (30 %) . Which is one of good area where these Banks are very reliable in terms of incentive given to the employees and there career development.

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8. Does working conditions affect you to leave a job?

HDFC NO 20%

SCB YES 40%

ICICI YES 40%

This Study is suggested that the working condition is how affected to leave an employee. as per our data suggested that 40 % of the employees in both ICICI and SCB are agree that working condition is forcing him/her to leave the organization although 20% of the employees of HDFC are not believing on this that working condition is forcing him to quiet the job.

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9. How would you rate the morale in your company?

SCB HIGH 20%

ICICI HIGH 20%

HDFC HIGH 60%

Moral Value of the employee is one of the key highlighter that suggest employer that how it there company practicing in terms of career planning and the development, as per our study suggested that 60% of the people who is working in HDFC has High moral value although in both SCB and ICICI who has only 20 % high morale rate and the motivational level while working with this company.

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10. Is there cooperation and understanding among the team members?

SCB Agree 25%

ICICI Agree 25%

HDFC Agree 50%

Cooperation and understanding among the team member is giving us insight that how well your team doing and if team is doing well they are motivated so it is easy task for any organization to achieve their organizational goal. 50% of the employees in HDFC suggested that they have cooperation and understanding among the team member while the employees in both SCB and ICICI only 25 % are agree .

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11. Could your bank has done anything to encourage you to stay

SCB YES 20%

ICICI YES 20%

HDFC Yes 60%

As per our study suggested that the employees are not very happy while working with there banks although it is responsibility for the organization to provide some of the motivational things to employee so they can work with them as longer period. As per our study suggested that 60% of the employees in HDFC are saying they has defined encourage or motivational factor like incentive scheme, welfare scheme and promotion scheme while employees in both SCB and ICICI only 20 % are encouraged or motivate.

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12. Do you have a documented Recruitment policy?

SCB YES 25%

ICICI YES 25%

HDFC YES 50%

This section of the question is asked for the HR department to give their input I took 50 HR interview for this issue and got to know 50% of HR in HDFC suggested they have well defined HR policy and it is documented in the well manner while 25 % of HR in both SCB and ICICI suggested they have well defined HR policy and it is documented in the well manner.

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13.Rank the following in order of priority in the your Banks . Work Fresher challenging work assignment career growth plans recognition to individuals compensation and benefits corporate system culture and value 1 1 7 1 1 0 Experienced 3 2 2 2

The retention rate is the major concern for every company now a days because the finding good talent is the most crucial factor is for the organization as per our 10 Hr personal survey result suggested that fresher leave this company because of the challenging work assignment while 2 Hr person suggested that Work experience leave this company because some time they find there selves in the stagnation of their career although for the fresher Hr does not think that compensation is that force Fresher to quiet the company.

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14. Have you benchmarked your HR practices?

SCB YES 20%

ICICI YES 20%

HDFC Yes 60%

As per our study suggested that Hr practice of this company has benchmarked there practice which means they are trying to find out the gap any special recommendation that may be help to reduce the level of employees living the job. 60% of the HR professional in HDFC are agree that they have did the benchmarking. While in both SCB and ICICI only 20% of the HR professional in HDFC are agree that they have did the benchmarking.

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15. What are the retention strategies in your organisation from past 5 years?

SCB Significant increasing 20%

ICICI Significant increasing 20%

HDFC Significant increasing 60%

As per our study HR suggested there has been experiencing the increasing trend of the retention as per our data suggested that 60% of the HR in HDFC suggested that this trend is growing in their respective company because of the various competitor are now utilizing experienced resources for them. While in both SCB and ICICI only 20 % of the HR suggested that this trend is growing in their respective company

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CHAPTER 4

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FINDINGS

The Human Resource Dept. at of HDFC,ICICI and SCB is a perfect example of integration of HR and systems. I would ultimately conclude that the HR department has to be a link between the employees and the management. It also has the responsibility to bridge the gap between the various departments in the organization. HR needs to change its role from a facilitator to a strategic business partner. My involvement with the HR processes: I was involved with almost all the HR processes and so I gained knowledge regarding all the processes. Firstly I was involved with the joining formalities of a new recruit i.e. helping in the check in formalities.

Secondly I was involved for completing the reference checks of around 20 new recruits who had joined recently.

After this, I co-ordinated for the two training programs which were conducted during my training period.

I was involved in doing an audit of the leaves taken by the employees through the leave management system.

I was then taught to make the entries regarding tax exempted investments made by the employees into the SAP system for calculation of tax of all the employees.

I was also made to understand the making of a Training Calendar for the year by amassing all the information regarding the training needs identified.

39% of the employees joined for Growth and development opportunities as a career expectation.

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5% of the employees have said that all their expectations fulfilled completely and 10% of the employees have said that none of their expectations fulfilled. Aided Factors for employee fulfillment of their expectations are Effective Training Recognition of individual performance Freedom to speak Good Canteen Congenial work Environment Fairness of Treatment Good Job& Adequate compensation.

Aided Factors for employee non-fulfillment of their expectations are Inadequate compensation Designation Unattractive Increment Job Mismatch and stress on job Lack of Growth and learning opportunity Long Term of Agreement

28% of the employees have said unattractive remuneration and 25% have said lack of growth opportunities are the main factors that made them to resign. 40% of the employees have said that Inadequate compensation was the immediate flashpoint that triggered them to resign. 31% of the employees have said that Fair and Competitive compensation could have made them rethink their decision to quit. In the Views regarding Human Dimension & Job Context 27% of the employees have said that organization image & reputation as the most excellent factor.

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28% of the employees have said that Transparency of decisions & communication as the most satisfactory factor.

22% of the employees have said that Concern for employees and Fairness of treatment as the Needs improvement factor.

The poor factors given by the employees are o Complaint Resolution and Concern for employees. o Fit between the organisation and employee. o Recognition of individual performance o Opportunity to offer feedbacks and suggestions

50% of the employees have said that Better designation and Job are the factors in which the new assignment is likely to be better than their assignment in other banks. 45% of the employees have said that Fair and competitive compensation provided by the other organisation was the most appealing reasons for taking up the new offer. Suggestions given by the employees are Reduce the term of agreement Provide attractive increments. Enhance Training activities and improve communication channels. Medical Coverage for employees and Family Members and defined growth and development programme.

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CONCLUSION
Retention is an important concept that has been receiving considerable 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 Herzbergs, 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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REFRENCES/BIBLOGRAPHY HDFC
1. www.hdfc.com 2. Brochures of hdfc bank 3. Wikipedia 4. Magazines 5. A2zmba.blogspot.com

ICICI
1. Hrmba.blogspot.com 2. www.icici/bank.com 3. Wikipedia 4. Magazines 5. Brochures of icici bank

SCB 1. Mbafin.blogspot.com
2. Magazine 3. www.scb/bank.com 4. Newspapers 5. Wikipedia

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ANNEXURE
QUESTIONNAIRE
1. How long have you been thinking of you been thinking about leaving the company? (a) One month or less (c) More than 5 months 2. How satisfied are you with the company you are currently working for. (a) Extremely satisfied (b) Very satisfied (b) One to 5 months

(c) Neither satisfied nor dissatisfied (d) Very satisfied (e) Extremely satisfied 3. How is your working experience till now. (a) Much more positive than negative (b) More positive than negative (c) More negative than positive (d) Much more negative than positive

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4.

If your experience is more negative, than what factors do you hold responsible for that. Select all that apply. (a) My performance evaluation and the outcome. (b) My role, responsibility (d) My boss (f) My compensation (h) Medical benefits and insurance (j) Any other (c) Job training (e) My co-workers (g) Relocation (i) Vacation

5.

Rank the following reasons in the order of priority if you have to consider them for leaving the job (a) Benefits (c) Commutation (e) Family reasons (g) Working conditions (i) Personal reasons (b) Better job opportunities (d) Conflict with other employees (f) Pay (h) Work not challenging (j) Reallocation

6.

How flexible is the company with respect to your family responsibilities (a) Very flexible (c) Neither (e) Very inflexible (b) Somewhat flexible (d) Somewhat inflexible

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7.

Do you have a clear path for career advancement? (a) Yes (b) No

8.

Does working conditions affect you to leave a job? (a) Yes (b) No

9.

How would you rate the morale in your company. (a) Low (c) High (b) Very low (d) Very high

10.

Is there cooperation and understanding among the team members? (a) Agree (b) Neutral (c) Disagree

11.

Could this company has done anything to encourage you to stay (a) Yes (b) No

12.

Do you have a documented Recruitment policy? (a) Yes (b) No

13.

Rank the following in order of priority as the attraction practices for (i) Fresher (a) Challenging work assignment (ii) Work Experienced (b) Career growth plans

(c) Recognition to individuals (d) Compensation and benefits (e) Corporate culture and value system

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14.

Have you benchmarked your HR practices? (a) Yes (b) No

15.

Whats the retention trend in your organisation from past 5 years? (a) Significant increase (c) Neutral (e) Significant decrease (b) Moderate increase (d) Moderate decrease