A Study on Employees Attitude towards Monetary and Non-Monetary Rewards and Its Effect on Attrition (With Special Reference

to Education Sector)

Submitted in partial fulfillment of the requirements of The M.B.A Degree Course of Bangalore University

Submitted By

SHWETHA R (REGD.NO: 05 XQCM 6090) Under the Guidance and Supervision of Prof. SAVITHA.G.R

M.P.BIRLA INSTITUTE OF MANAGEMENT Associate Bharatiya Vidya Bhavan # 43, Race Course Road Bangalore-560001

DECLARATION

I hereby declare that this dissertation entitled A Study on Employees Attitude towards Monetary and Non-Monetary Rewards and Its Effect on Attrition - (With Special Reference to Education Sector) is the result of my own research work, carried out under the guidance and supervision of Prof. Savitha.G.R, MPBIM Bangalore.

I also declare that this dissertation has not been submitted earlier to any Institute/Organization for the award of any degree or diploma.

Place: Bangalore

Date:

SHWETHA R

Acknowledgement

There are some people, who simply by being what they are influence and inspire us to do things, which we never thought ourselves capable of doing. Among them are my parents, my teachers and friends to whom I wish to extend my gratitude on the event of completion of this project.

I wish to extend my deep sense of gratitude to our Principal, Dr.N.S.Malavalli, Principal, M.P.Birla Institute of management, Bangalore, for allowing me to do this project.

I am extremely thankful to Prof. Savitha, M.P.Birla Institute of Management, Bangalore, without whose valuable inputs this project would have been incomplete. Finally, I express my sincere gratitude to all my friends and well-wishers who helped me in doing this project.

Shwetha R

PRINCIPALS CERTIFICATE
I hereby certify that this dissertation entitled A Study on Employees Attitude towards Monetary and Non-Monetary Rewards and Its Effect on Attrition - (With Special Reference to Education Sector) is the result of research work carried out by Shwetha R under the guidance and supervision of Prof. Savitha.G.R, M P Birla Institute of Management, Bangalore

Place: Bangalore

Date:

( Dr. N. S. Malavalli)

GUIDES CERTIFICATE

I hereby certify that this dissertation entitled A Study on Employees Attitude towards Monetary and Non-Monetary Rewards and Its Effect on Attrition - (With Special Reference to Education Sector) is a result of the research work carried out by Shwetha R under my guidance and supervision.

Place: Bangalore

Date:

(Prof. Savitha.G.R)

Table of Contents
Chapter No. Executive summary 1 2
Introduction 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 Introduction to the research topic Indian Education sector Background of research study Problem statement Justification and significance of the research Research Objectives Introduction to Rewards Introduction to Attitude Effect of Rewards on Retention 2 3 4 5 5 5 6 7 8 14-22

Contents

Page No.
1

Review of the Literature 3.1 3.2 3.3 Review of the literature Source of the literature reviewed Relevant portion in literature that has bearing on the current research Benefits to the Researcher from the review.

3.4

Research Design 4.1 4.2 4.3 Type of research Research method Research technique 23 23 23

4.4 4.5 4.6 4.7 4.8 4.9 4.10

Data collection sources Data gathering procedure Population of the study Statistical tools Scope of the study Limitations of the study Operational definition of concepts

23 24 24 24 24 24 25

Data Analysis and Interpretation 5.1 5.2 Data analysis and interpretation Findings 26 65

Summary and conclusion 6.1 6.2 Conclusion Suggestions and Recommendations 67 67

Annexure 7.1 7.2 Questionnaire Bibliography 69 72

List of Charts/ Graphs

Chart No. 1 2 Title Preference for Monetary benefits by the Respondents Respondents comment on their attitude towards non-monetary rewards Preference for non-monetary benefits by the respondents Respondents liking of job Factors indicating job satisfaction Impact of compensation on level of motivation Factors influencing motivation on job In-house recreational facilities provided by Institutes Institutions providing additional facilities to faculty members Factors influencing increase in attrition rate Rate of employee turnover in organizations Causes for attrition in Education sector Flow of positive attitude from institutions to control attrition Measures taken by Educational institutions to control attrition Respondents preference to measures of controlling attrition Faculty members response towards continuing their relationship with the institute Institutions response to improve employees attitude on job Respondents preference for accepting overseas projects provided by the institute Counseling facilities provided by the institutions Page No. 27 29

3 4 5 6 7 8 9 10 11 12 13 14 15 16

31 33 35 37 39 41 43 45 47 49 51 53 55 57

17 18

59 61

19

63

Chapter 1

Executive summary

Executive summary
This research titled A Study on Employees Attitude towards Monetary and NonMonetary Rewards and Its Effect on Attrition - (With Special Reference to Education Sector) has been done at selected educational institutions of Bangalore. The research has been a result of recent increase in attrition. The problem is extremely high in the education sector, with faculties facing problems related to recognition by the institutions. They prefer changing jobs in return for better non-monetary rewards such as recognition. This study focuses on employees attitude and their interest in job.

Chapters 2 explain the importance of this study in retaining talent at educational institutions in current competitive world by giving an overview of the employees attitude in education sector. It also explains the objective of the study. The 3rd chapter contains literature review. Various research outcomes delivered by some of the research institutes and researchers are studied. This gives a base to the study conducted further.
th

4 chapter concentrate on the design of the research. This research has adopted survey method to arrive into certain conclusions.

Data analysis and interpretation has been done in chapter 5. This chapter consolidates the whole data of attitude survey into charts and graphs and is followed by interpretation and inferences. It also includes the finding of the survey.

Chapter 6 summarizes the conclusions. It also includes certain recommendations been provided to the institutions in line with their capability and requirements. The last chapter 7th includes a copy of the questionnaire and bibliography.

Chapter 2

Introduction

Overview of the chapter

2.1 Introduction to the research topic 2.2 Introduction to Education sector 2.3 Background of research study 2.4 Problem statement 2.5 Justification and significance of the research 2.6 Research Objectives 2.7 Introduction to Rewards 2.8 Introduction to Attitude 2.9 Effect of Rewards on Retention

2.1 Introduction to the research topic

The most important asset of any business is its human family of workers -managers and employees. Increasing the capabilities and productivity of the staff is simply smart business management. From the purely humanitarian standpoint, it is also a moral obligation.

As the economy grows stronger and the range of new work expands, there is a renewed focus on the importance of attracting and retaining qualified staff. In the scramble to attract and keep top talent, compensation once again becomes a much-discussed topic for both employers and employees.

Empirical evidence shows that employee loyalty and factors influencing retention were often based on the gender, age and income of the respondents:

Female employees are more interested in a flexible work schedule than their male counterparts (17 percent vs. 11 percent) and were more likely to respond positively to "a raise" (52 percent vs. 48 percent); 18 percent of males cited improved benefits, as did 14 percent of females. Only eight percent of males identified stock options, as opposed to 17 percent of males in the year 2000 survey. The female response to stock options remained consistent from last year's survey, at six percent.

In every age group but those 55 and older, roughly 50 percent placed the highest value on increased pay. For those 55-to-64, 48 percent cited "a raise," but for employees over 65, that response dropped dramatically to nine percent. Interestingly, both the oldest group, the over 65s, and the youngest, the 18-to-24s, ranked flexible work schedules as their second priority, at 31 and 23 percent, respectively. Among those ages 35-to-44, improved benefits received the second highest response, at 23.5 percent annual

While household income plays a role in the employee retention debate, that role isn't always predictable. Of those respondents with household incomes of less than $25,000, 47.5 percent said more money would influence a decision to stay with an employer, while 21 percent ranked improved benefits first. Conversely, of individuals with household incomes in excess of $75,000, 52.5 percent said they would continue with a current employer if given "a raise," while a scant 11 percent cited improved benefits as their employer's top lure.

People typically believe that compensation is about money, with employee benefits receiving serious, but secondary, consideration. For that reason, management of educational institutions tends to concentrate on staying competitive primarily in those areas. While both are important, salary and benefits should not be a firms only compensation administration consideration.

2.2 Indian Education sector

Education accounts for about $3 trillion of the world's economy. The General Agreement on Trade in Services (GATS), a hotly debated agreement of the WTO (World Trade Organization), is aimed at increasing trade liberalization internationally, while including `education' as a service. In absolute terms, India has the third largest number of higher education enrolments after China and US.

On a close scrutiny of the cause and effect relationship, one can infer that the lack of even minimal HR initiatives in the education segment is resulting in more serious HR problems to the industry which, if unattended, may derail the economys progress.

Expenditure on Education in India

The Government expenditure on Education has greatly increased since the First five-year plan. The Government of India has highly subsidized higher education. Nearly 97% of the Central Government expenditure on elementary education goes towards the payment of teachers' salaries.

2.3 Background of research study

In Education sector monetary and non-monetary rewards play a vital role. Monetary rewards consist of basic pay, bonuses etc, and non-monetary rewards consist of recognition, training facilities, etc. And employees attitude towards it is an important issue. Researching this issue will reduce turnover and attrition rate. Such a background has resulted in the current research.

2.4 Problem statement

Employee attitude in the corporate sector greatly influences performance, productivity and motivation. There exists a need to conduct research in order to explore and improve employee attitude. Hence this study focuses on Education sector and various issues confronting it. One of them is attrition. The problem is extremely high in education sector, with faculties facing problems related to recognition by the institutions. They prefer changing jobs in return for better non-monetary rewards such as recognition.

The problem to address here is What is the employees attitude towards rewards in educational institutions and how monetary and non-monetary rewards have an effect on controlling attrition in the sector?

2.5 Justification and significance of the research

Employee turnover is a leading problem in the corporate world where it has to be tackled like an emergency. Therefore research in this area becomes very crucial.

2.6 Research Objectives

To study attitudes towards monetary and non-monetary benefits. To study the factors that motivates employees. To identify the factors those motivate IT employees to leave the employer. To study the employee attitude towards their job.

2.7 Introduction to Rewards

A reward is a benefit for performing a given task. It assumes someone in a position to evaluate and judge goodness. "Rewarding" means providing incentives to and recognition of employees, individually and as members of groups, for their performance and acknowledging their contributions to the agency's mission. There are many ways to acknowledge good performance, from a sincere "Thank You!" for a specific job well done to granting the highest level, agency-specific honors and establishing formal cash incentive and recognition award programs.

Concepts like risk and reward, reward and punishment are based on the idea that people do things, or avoid doing things, due to rewards. In psychology there is evidence that they do not, and that conditioning and affective factors are much more important than the rewards or punishments of outsiders.

Goals and Objectives of rewards

Improve performance Employee Motivation Enhancing team spirit Employee retention Employee development

Monetary Rewards
The purpose of monetary incentives is to reward associates for excellent job performance through money. Monetary incentives include profit sharing, project bonuses, stock options and warrants, scheduled bonuses (e.g., Christmas and performance-linked), and additional paid vacation time. Traditionally, these have helped maintain a positive motivational environment for associates (Kepner, 2001).

Non-Monetary Rewards
The purpose of non-monetary incentives is to reward associates for excellent job performance through opportunities. Non-monetary incentives include flexible work hours, training, pleasant work environment, and sabbaticals.

2.8 Introduction to Attitude

An attitude can be defined as persistent tendency to feel and behave in a particular way toward some object.

The Nature and Dimensions of Attitudes

Attitudes can be characterized three ways. First, they tend to persist unless something is done to change them. Second, attitudes can fall anywhere along attitude may be moderately unfavorable. Third, attitudes are directed toward some object about which a person has feelings (sometimes called "affect") and beliefs. Attitudes can be broken down into three components; emotional, informational, and behavioral. The emotional component, the informational component and the behavioral component .

Functions of Attitudes

An understanding of the functions of attitudes is important to the study of organizational behavior. Based on extensive review of surveys of employers, a recent analysis concluded "the most important consideration in hiring and the biggest deficit among new workforce entrants are the attitudes concerning work that they bring with them to their jobs. Mr. Katz has noted that attitudes serve four important functions in this process.

The Adjustment Functions. The Ego Defensive Function The Value Expressed Function. The Knowledge Function.

Changing Attitudes
Employee attitudes can be changed, and sometimes it is in the best interests of management to try to do so. Sometimes attitude change is difficult to accomplish because of certain barriers. After these barriers are identified, some ways of overcoming them and effectively changing attitudes are examined.

2.9 Effect of Rewards on Retention

Getting people to work for and with the organization as a team-and keeping them working is never simple. When making a decision to join (or stay with) n organization, most people sort through and try to prioritize a complex bundle of personal requirements. This hierarchy of needsas originally conceptualized by Abraham Maslow (as explained in the illustration)range from basic survival needs to the utmost psychological desire for self-actualization. Many of these needs do not relate directly to either salary or benefits.

Maslows hierarchy teaches that when an individual accomplishes each level, satisfaction wont necessarily be the result. Rather, the individual is likely to start yearning for achievement at the next-higher level.

For example, once the individual obtains reasonable physical comfort (housing and clothing) and physical safety (money in the bank, home equity, life insurance), the next step might be to seek association with a prestigious firm. After reaching that milestone, the individual might aspire for professional recognition, and so on.

Of the various hierarchical needs described by Maslow, only some have a direct link to compensation. Clearly, money is a primary factor enabling the individual to meet physical needs. Money also is key in achieving safety and security, primarily in the form of adequate insurance and retirement savings. Even the need for prestige and status, as satisfied by a new BMW or a spacious beach house, requires substantial funding.

However, over the full range of Maslows hierarchy, the majority of other needs are NOT tied directly to base salary, bonus, or benefits. Rather, most of Maslows hierarchy addresses needs associated with work activity and the workplace itself.

Self-actualization
Teaching professionals place professional considerations well ahead of their bank balances. One or more of these scenarios are often familiar in the industry: Competent teaching professionals chase money (by changing institutions) only to return to more modest compensation at a institution where they have greater opportunity for self-expression. Talented teaching professionals struggle at close-to-starvation wages to stay involved in teaching. Each scenario illustrates the teaching professionals strong motivation to reach the peak of Maslows hierarchy, i.e., self-actualization. Maslow illuminates the concept thusly:

A musician must make music, an artist must paint, a poet must write, if he is to be at peace with himself. What a man can be, he must be. This is the need we call self-actualization...it refers to mans desire for fulfillment
While teaching professionals probably have greater need for self-actualization than do individuals in other careers, self-actualization is a VERY important part of the teaching professionals psychology. The idea that a teacher must teach has important implications for compensation administration and management of the overall organization.

Money alone will not offset a bad working environment or the lack of true career opportunity. Employees rarely join (or leave) firms solely because of compensation or benefits. Using the lessons taught by Maslows hierarchy, management of education institutions must look to the whole institution and employment experience to attract and retain appropriate staff.

When conditions are right, employees derive non-monetary compensation from those aspects of the employment experience that provides value or satisfaction without necessarily delivering a measurable reward. Said differently, non-monetary compensation is nothing more complicated than psychic income. It rewards the employee in some uniquely psychological way, largely unrelated to salary or employee benefits.

The hierarchy links the search for such opportunities directly to Maslows selfactualization concept. Firms that ignore these needs will tend to have higher turnover and operating costs and lower motivation and morale.

The essential question about monetary vs. non-monetary rewards is not an either-or question. The best firms endeavor to deliver both. In the end, every employee makes a subconscious calculation of the two

Monetary income + Psychic income = Total income

When available in reasonable quantities, psychic income helps the teaching professional see a clear path toward advancement and satisfaction. Most faculties are able to make rational decisions about the trade-off between professional satisfaction and economic reward. Ultimately, most teaching professionals will choose the option that provides the highest total income.

We should bear in mind, this is not an invitation to take advantage of the staffthe management of education institutions should always research the true market value for faculties and compensate their people fairly. The goal is to deliver and maintain a

reasonable balance between monetary and psychic income. In the end, institutions that deliver both monetary income and physic income in a fair, and innovative manner will attract, retain, and develop quality personnel, keep them satisfied, and foster organization loyalty.

Above all, the institutions should remember that the employees are people, each one an important part of the business family-not just a cog in a human machine that goes through certain muscular motions every day with time out for refueling and maintenance. The management should remember that their staff has heart and brains, feelings and ideas-and is made of the same raw materials as them. Their energies are there to be used for their own good and for the management. Some ways of harnessing these energies are:

1. Seeking and using employee's own ideas. 2. Keeping employees informed. 3. Expressing personal interest in employees. 4. Instilling pride in work well done.

These techniques concern various methods of directing employees toward main objective - building a profitable business by satisfying customers. As one put these techniques to use, we will find the job only half begun. The employee still needs more answers to this very important personal question: "What is there in it for me?" This is not a cynical question. It is another way of asking: "How much am I worth? And the management must provide answers for them as well as for itself.

Management must encourage employee ideas and provide the necessary mechanism for obtaining them. Suggestion boxes and idea-discussion employee meetings are a couple of possibilities. Encourage employees to think about problems of the business. Some excellent ideas for their solution may be forthcoming. The management can carefully consider all ideas, and if adopted, can commend or reward the giver. If not adopted, a word of explanation and appreciation can always be given.

To effectively motivate, a definite system of incentives or rewards is necessary. Such a system requires a combination of several groups of incentives, the most important of which are:

1. Recognition-both monetary and non-monetary. 2. Social prestige. 3. Achievement. 4. Self-esteem

Recognition Recognition-Monetary

The first thought concerning recognition is usually money. Good pay is vital. Good pay is essential to employee satisfaction and must be carefully considered in all personnel matters. The employee should not feel that he is underpaid. Pay is the best and most tangible form of recognition of the employee's worth to the company. Besides actual pay increases, other form of monetary recognition commonly used is a bonus plan.

Recognition-Non-monetary
Non-monetary recognition can be tangible or intangible. Examples of tangible recognition: highlighting the key personnels training, experience, and outstanding services. Intangible means of recognition are less formal and might be in the form of a kind word of praise.

Social Prestige

Present-day management theory says it is no longer sufficient to satisfy only subsistence needs. Employee retention will be obtained only when his social and self-esteem needs are supplied on the job. "More money" often becomes an insistent demand when management is concerned only with satisfying minimum cost-of-living needs. When the "whole person" is involved within an enterprise, the employee is often content with less money than he might make elsewhere, simply because he enjoys his work and experiences self-esteem and accomplishment through his work.

Achievement
Ambition falls off when employees do not have enough to do. The only way to solve this problem is to establish reasonable work output standards for each job. Study and evaluation of standards and employee worker contribution should result in a reasonable level of output for each position. Living up to these standards brings a sense of achievement.

Self-Esteem
This group of needs differs from others in that it is concerned with the employee's view of himself. Examples are the opportunity for recognition, status in the community, respect, distinction, attention, importance, and appreciation. These are the most difficult needs to provide. Thus by observing above data it can be said that employee retention is a burning issue in education field and there is a positive relation between monetary and non-monetary rewards with attrition rate. Further part of the report focuses on the empirical evidences and researches which gives a base to the study.

Chapter 3

Review of the Literature

Overview of the chapter

3.1 Review of the literature 3.2 Source of the literature reviewed 3.3 Relevant portion in literature that has bearing on the current research 3.4 Benefits to the Researcher from the review

3.1 Review of the literature

Among the many threats affecting the global workforce over the next few years, the exit of employees could be the most damaging. Despite millions of unemployed workers, there is an acute shortage of talent. Enough research has been done by firms to retain their people. Research suggests that a companys stars are the first ones to be poached by competitors and thus are less likely to stay.

3.2 Source of Literature

1) Employees Again Saying 'Show Me the Money' - What a difference a year makes, Research done by Business & Legal Reports, Inc., 2001 -

http://hr.blr.com/news.aspx?id=3394

Relevant portion in literature that has bearing on the current Research

While stock options were the hot currency of the New Economy scarcely 12 months ago, employees today now regard cash - and freedom - as king, according to a new nationwide survey of working Americans.

In the third annual BridgeGate Report, conducted in February, employee retention is more likely to be influenced by salary increases than by improved benefits, flexible work schedules or stock options. A total of 682 part-time and full-time employees were asked which factors would be most likely to convince them to continue working for their current employer.

The majority of respondents - slightly more than 50 percent - indicated that "a raise" would most influence them to remain with their present company, up from the 46 percent who cited a salary hike in last year's report. By contrast, just 40 percent of those surveyed placed non-monetary concerns ahead of increased pay.

This year's survey marks the first time in the three-year history of the Bridge Gate Report that significantly more respondents said they would remain at a job for higher compensation, over the combined total of respondents most interested in non-monetary offerings - benefits, flexibility, stock options and training.

In perhaps the most significant finding of the report, fully one in seven of those polled could not identify any specific action employers could take to ensure retention, up from one in 16 two years ago.

"Increasingly, people are again saying, `show me the money,' I'll figure out the rest of my life on my own," said Dudley Brown, managing director of Bridge Gate. "Half of those in this year's sample don't buy the idea of assigning responsibility for their career to their employer. It's like investing - individuals want to take control of their destiny, whether in the market or with training, benefits and the like. That's especially true now, amid the growth of enabling services that let you do it yourself."

"Employees don't even know what it would take to get them to stay - how damning for employers, and bad news for workers as well," Brown said. "What's truly frightening for companies is simply this: how do you make an employee happy who doesn't even know what it would take to get them to stick around? They're that disillusioned, and the percentage is going up every year, more than doubling since our first survey."

"All of this underscores the trend toward a 'free agent nation' and signals a decisive move away from corporate paternalism," said Brown. "And that in turn raises a huge issue for employers and employees alike: how do you compete with people who are thinking like free agents?"

In last year's survey, 46 percent stated they would stay on for a salary increase, with an equal percentage (in the aggregate) responding to various non-monetary rewards: employee benefits, flexibility, stock options or training. The inaugural survey, released in

early 1999, found that less than half the sample (43 percent) named "a raise" as the primary influencing factor, while 50.5 percent cited non-monetary options.

Employee loyalty and factors influencing retention were often based on the gender, age and income of the respondents:

Female employees are more interested in a flexible work schedule than their male counterparts (17 percent vs. 11 percent) and were more likely to respond positively to "a raise" (52 percent vs. 48 percent); 18 percent of males cited improved benefits, as did 14 percent of females. Only eight percent of males identified stock options, as opposed to 17 percent of males in the year 2000 survey. The female response to stock options remained consistent from last year's survey, at six percent.

In every age group but those 55 and older, roughly 50 percent placed the highest value on increased pay. For those 55-to-64, 48 percent cited "a raise," but for employees over 65, that response dropped dramatically to nine percent. Interestingly, both the oldest group, the over 65s, and the youngest, the 18-to-24s, ranked flexible work schedules as their second priority, at 31 and 23 percent, respectively. Among those ages 35-to-44, improved benefits received the second highest response, at 23.5 percent. While household income plays a role in the employee retention debate, that role isn't always predictable. Of those respondents with household incomes of less than $25,000, 47.5 percent said more money would influence a decision to stay with an employer, while 21 percent ranked improved benefits first. Conversely, of individuals with household incomes in excess of $75,000, 52.5 percent said they would continue with a current employer if given "a raise," while a scant 11 percent cited improved benefits as their employer's top lure.

Purpose The purpose is to highlight the attitude of employees towards benefits.

Methodology The method carried out is survey.

Conclusion Right benefits to employees increases positive attitude of the employees.

Benefits to the Researcher from the review. The researcher learnt many aspects of employee attitude towards rewards. Literature review as served as a basis for the current research.

Source of Literature
2) Employee Retention Emerges as Top Consideration in Benefits Strategies, Research done by Business & Legal Reports, Inc., 2007 - http://hr.blr.com/news.aspx?id=75507

Relevant portion in literature that has bearing on the current Research

More employers are citing employee retention as the primary objective in putting together a benefits plan, according to a study by MetLife.

Last year, 55 percent of employers identified employee retention as a top objective in putting together a benefits plan, up from less than 50 percent in 2003.

In the five years the company has been conducting the study, 2006 marked the first time employers cited employee retention over controlling health and benefits costs as the top priority in putting together a benefits plan.

The study also found a correlation between benefits satisfaction and job satisfaction. Among employees who are "highly satisfied" with their benefits, 80 percent indicated strong job satisfaction, up from 65 percent in last year's study.

Seventy-two percent of employees who responded to the survey said workplace benefits were a reason for joining their current employer, and 83 percent said it is a factor for remaining there.

The survey found that married employees and those with children were more likely to cite benefits as a top consideration in joining their current employer. Nearly one-third (32 percent) of married employees and 41 percent of young families (parents with children under six-years-old) stated that workplace benefits were a top consideration for joining their current employers, while only 10 percent of singles agreed it was a top consideration for them.

"While employee retention is a major benefits objective for employers, controlling costs is a close second," says Ronald Leopold, MetLife vice president. "The strong relationship between benefits satisfaction and job satisfaction indicates that there is more pressure than ever on employers to strike this balance and utilize benefits strategically to achieve both objectives."

The employee survey polled 1,202 full-time employees. The employer survey consisted of 1,514 interviews with benefits decision-makers at companies.

Purpose The purpose is to highlight the impact of benefits on retention of employees.

Methodology The method carried out is survey.

Conclusion Better benefits given to employees increases positive attitude of the employees towards the job as well as the organization.

Benefits to the Researcher from the review. The researcher learnt many aspects of impact of benefits on retention of employees. Literature review as served as a basis for the current research.

Source of Literature
3) The Power of Positive Feedback, http://www.opm.gov/perform/articles/090.asp by Bob Nelson, 1997 -

Relevant portion in literature that has bearing on the current Research

"You get what you reward." Bob Nelson, author of 1001 Ways to Reward Employees, made this statement during the "TRANSFORMATIONS '97" post-conference workshop, "Making Effective Use of Employee Recognition." Nelson particularly stressed the value of positive feedback, immediate recognition, informal recognition, and effective program design. Positive Feedback Immediate Recognition Informal Recognition Designing Programs Positive Feedback. Nelson emphasized positive feedback throughout the workshop and said supervisors should remember that it can be a motivating force for some employees. He suggested that when delivering feedback or presenting informal recognition, supervisors should remember to use the "I" format: I saw what you did I appreciate it It's important It makes me feel.... Immediate Recognition. Nelson suggested three different methods that supervisors or managers can use to give their employees immediate recognition: give the praise or recognition directly to the employee; give the praise while another employee is present; or give the praise about the employee to another manager or supervisor.

Informal Recognition. While on-the-spot praise is an immediate and easy method of recognizing employees' performance, Nelson noted other ways that employees could be given informal recognition. He gave several effective, low cost, and easy-to-do examples: create a wall of fame by displaying photos of achievers, give certificates of appreciation, present balloons, display computer banners, give award pins, or create a special award. Nelson said that designers of low-cost awards programs should be creative, the award should match the achievement, and the award should be given as soon as possible after the achievement. Designing Programs. Nelson also gave some suggestions to follow when designing a recognition program: Focus on a few areas or goals that will have the most impact. Where should you direct your recognition efforts? Involve your target employee group in the design process. Employee input helps to gain employee buy-in for the new program. Announce the awards program with a fanfare. Let everyone know about the program. Make the program criteria clear. Make sure everyone knows about the program, its criteria, and the nomination process. Publicly track the process of the program. Use graphs, charts, and pictures to show that goals are being met, to track program activity, and to show who its recipients are. Have lots and lots of qualifying recipients. Make sure everyone has an equal chance to receive recognition, not just a select few. Allow for flexibility and choice of rewards. Have a variety of awards so managers have several choices. End or review the program as needed. If the program is not working, it is better to end it quickly and develop a new one. Link informal and formal awards. Ensure that informal awards are in line with the formal awards structure; do so by making informal awards a subset of the formal awards programs already in place.

Find ways to sustain the behavior. Once you have rewarded employees for their efforts, look for other ways to maintain their motivation.

Nelson summarized by saying: "While money is important to employees, what tends to motivate them to perform and to perform at higher levels is the thoughtful, personal kind of recognition that signifies true appreciation for a job well done. Purpose The purpose is to highlight the impact of recognition and positive feedback on employee satisfaction.

Methodology The method carried out is survey.

Conclusion Positive feedback and recognition given to employees enhances job satisfaction and improves employee morale.

Benefits to the Researcher from the review. The researcher learnt the impact of recognition and positive feedback on employee satisfaction. Literature review as served as a basis for the current research.

Chapter 4

Research Design

Overview of the chapter

4.1 Type of research 4.2 Research method 4.3 Research technique 4.4 Data collection sources 4.5 Data gathering procedure 4.6 Population of the study 4.7 Statistical tools 4.8 Scope of the study 4.9 Limitations of the study 4.10 Operational definition of concepts

Employees Attitude Towards Monetary And Non-Monetary Rewards

4.1 Type of research

Technique applied in the study is Descriptive research. It includes surveys and factfindings of different kinds the major purpose of Descriptive research is description of the state of affairs as it exists at present.

4.2 Research method

Survey method has been used to do this research.

4.3 Research technique

Questionnaires covering various parameters of employees attitude to job and benefits have been used to do this research.

4.4 Data collection sources METHODOLOGY

PRIMARY DATA 1. Questionnaire 2. Direct Interview

SECONDARY DATA 1. Internet 2. Books 3. Articles

Primary data has been collected for the purpose of the survey. Secondary data has been used to review the literature.

M P Birla Institute of Management

Employees Attitude Towards Monetary And Non-Monetary Rewards

4.5 Data Gathering Procedure

Data has been gathered by interviewing the employees and through interpreting the result of questionnaire.

4.6 Population of the study

Sample size: 76 Sample description: Faculty members who have experience of more than 3 years.

4.7 Statistical Tools

Tables, graphs and charts have been used to show the analysis of the statistical data.

4.8 Scope of the study

The project aims to give relevant information about the study and the method used in the research. This project also aims to suggest suitable recommendations and suggestions inferred from the findings. The study is limited to educational institutions at Bangalore.

4.9 Limitations of the study

The concept is highly abstract and difficult to study The study is limited to educational institutions at Bangalore. Time constraint and limited sample size

M P Birla Institute of Management

Employees Attitude Towards Monetary And Non-Monetary Rewards

4.10 Operational definition of concepts Attitude: An attitude can defined as persistent tendency to feel and behave in a
particular way toward some object.

Retention: It is a process of holding back people in an organization by providing

them extra benefits.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Chapter 5

Data Analysis and Interpretation

Overview of the chapter

5.1 Data analysis and interpretation 5.2 Findings

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Employees Attitude Towards Monetary And Non-Monetary Rewards

5.1 Data analysis and interpretation

Data has been collected based on different parameters relating to employees attitude towards:

Effective training programs Elements of motivation Mentorship program Work environment Career growth Job challenges Freedom and autonomy Recognition Compensation

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 1: Preference for Monetary benefits by the Respondents. Particulars Bonus Incentives Percentage 30% 70%

Preference for Monetary benefits by the Respondents

fig.1

70% 60% 50% 40% 30% 20% 10% 0% Bonus Incentives Monetary Benefits

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:

From the above data it is seen that majority of the respondents i.e., 70% faculty members prefer to receive incentives and the rest of 30% respondents are satisfied with Bonus as a measure of reward in terms of money.

Inference:

The study revealed that there is more demand for incentives as a part of monetary reward when compared to Bonus and other types of benefits. Most faculty members prefer to have Incentives from the institute, which would motivate them better than any other monetary benefits. Hence it can be recommended that providing incentive can be a strong means of motivating employees.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 2: Respondents comment on their attitude towards nonmonetary rewards.

Particulars V.Positive Positive Negative V.Negative

Percentage 20% 60% 15% 5%

Respondents comment on their attitude towards nonmonetary rewards

fig.2

60% 20% 15% 5%

V.Positive Positive Negative V.Negative 20%

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:
From the above data it is seen that majority of the respondents i.e., 60% faculty members have a positive attitude towards their job; whereas 20% of them have a very positive attitude. 15% of the respondents tend to possess negative feeling while very less number of respondents i.e., 5% possess very negative feeling towards their job.

Inference:
By analyzing the above data it can be said that most of the employees in education sector tend to have positive attitude towards their job and they love their work. As the above graph shows still there are some people who does not like the job. Hence proper measures should be taken to change their attitude towards job and to make them feel comfortable in the workplace. Though the ratio of people possessing negative attitude is negligible, timely action taken by the institutes can help in controlling further adverse impacts.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 3: Preference for non-monetary benefits by the respondents.

Particulars Training Facilities Flexible Working Hours Leave Benefits Recognition

Percentage 5% 26% 30% 44%

Preference for non-monetary benefits by the respondents

fig.3

5%

25% 41%

Training Facilities Flexible Working Hours Leave Benefits Recognition

29%

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:

From the above data it is seen that majority of the respondents i.e., 44% of faculty members ask for recognition from the Institute for their work. The next set of faculty members i.e., 30% respondents would like to enjoy leave benefits in return to their work. While the next group presumes non-monetary benefit as having flexible working hours and the least number of respondents i.e., 5% say that they prefer training facilities to be given.

Inference:

The study revealed that majority of faculty members demand for recognition by the institute for the work they do rather than having leave benefits or flexible working hours or training facilities. Hence it can be said that recognition plays a vital role in enhancing employee morale and job satisfaction in education sector compared to other things. However, the educational institutions can also go for providing leave facilities, flexible working hours as such demands stand immediately next to recognition. While looking into the data obtained by the study training facilities have a least noticeable effect on reducing attrition in education sector.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 4: Respondents liking of job.

Particulars I Love It Immensely I Love It The Job Suits Me Looking for a Change

Percentage 20% 43% 19% 18%

Respondents liking of job

fig.4

18%

20%

I Love It Immensely I lLove It 19% The Job Suits Me Looking for a Change

43%

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:

The above data shows that 35% of faculty members love their job. While 18% of the faculty members love the job immensely, 29% think that the job just suits them. Another set of respondents who include 18% of faculty members are really looking for a change in the job as well from he field itself.

Inference:

By analyzing the above data it can be said that most of the faculty members conceive their job very seriously and they love this work. They feel that work is more important than other things in life. Some people feel that the job suits them and they want to make their career in the field. In contrary to this there are few youngsters who are looking for a change in their job and few among them want to get out of education sector itself.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 5: Factors indicating job satisfaction

Particulars Good Compensation Recognition Working Conditions Promotions

Percentage 23% 58% 10% 9%

Factors indicating job satisfaction

fig.5
70% 60% 50% 40% 30% 20% 10% 0% Good Compensation Recognition Working Conditions Promotions

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:
The survey conducted in various educational institutions in Bangalore revealed that recognition is considered to be a strong factor in measuring job satisfaction by a large number of respondents i.e., 58%. The next set of respondents i.e., 23% faculty members consider good compensation would lead to job satisfaction. While 10% of respondents prefer good working conditions, the rest i.e., 9% say promotion would make them feel more satisfied on job.

Inference:
The study shows that recognition plays a vital role in satisfying employees self actualization needs. A mere recognition by the institute for the work done by them would make them satisfied and motivate them to work harder. Money matters next to recognition followed by good working conditions and promotions. Here it is clear that the non-monetary benefits have greater impact on job satisfaction when compared to compensation, the only monetary benefit that has relatively less scope in the matter.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 6: Impact of compensation on level of motivation. Particulars Yes No Percentage 35% 65%

Impact of compensation on level of motivation

fig.6
70%

60%

50%

40%

30%

20%

10%

0% Yes No

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:
The above data shows that majority of respondents i.e., 65% feel that compensation does not have any direct impact on motivation. While the rest of 35% feel that good compensation paid by the institute would motivate them to work harder.

Inference:
By looking at the results of the survey we come to know that most of the people think there is something other than money that would motivate them. This may include nonmonetary benefits, good working environment, work life balance and other factors. But some people have a perception that compensation directly leads to motivation. They say better the pay, better the work done. Besides this contradiction education sector is the only field in which the level of motivation by work alone is higher than in any other sector.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 7: Factors influencing motivation on job.

Particulars Job itself Working Environment Personality Development Programs

Percentage 54% 41% 5%

Factors influencing motivation on job

fig.7

5%

Job itself Working Environment 54% Personality Development Programs

41%

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:
From the above data it is seen that majority of the respondents i.e., 54% faculty members are motivated directly by the job. Availability of good working environment was preferred by 41% of respondents. The remaining 5% of respondents need personality development programs to be conducted in order to enhance motivation.

Inference:
The study revealed that teaching job is considered to be the strongest factor that enhances the level of motivation among employees. Nothing else will motivate the faculty members as the Job itself does. Though working environment should not be neglected as it contends immediate next to job. Good working environment provided by the institute make the employees relax in their work place. However very less number of people feel that the personality development programs will also contribute in motivating the employees.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 8: In-house recreational facilities provided by Institutes. Particulars Yes No Percentage 80% 20%

In-house recreational facilities provided by Institutes

fig.8

80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:

The above data shows that 80% of the respondents say that their institution provides in-house recreational facilities. Only 20% of the respondents said that their institute does not provide any in-house recreational facilities.

Inference:
The study revealed that most of the institutions in Bangalore have very good infrastructure. Employees are provided with various in-house recreational facilities. And thus in current scenario institutions are focusing mainly on satisfying employees needs. But there are still few institutions, which need to focus on providing infrastructure to the faculty members. A satisfied employee always contributes to improve the overall performance of the institution.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 9: Institutions providing additional facilities to faculty members.

Particulars Yes No

Percentage 78% 22%

Institutions providing additional facilities to faculty members

fig.9
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:

The above data shows that 78% of faculty members say they can get additional facilities from their institutions on their request. 22% of the faculty members said that their institution does not provide any additional facilities.

Inference:
The study revealed that the most of the institutions provide extra facilities to the faculty members on their request. Such facilities would include organizing a seminar, connection to Internet; access to good libraries like IIM library, British library, etc. the respondents who had an access to such facilities were more happy and satisfied when compared to others. Hence it can be recommended that the institutions can take certain measure to improve their infrastructure facilities and they can also focus on providing additional facilities to their employees.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 10: Factors influencing increase in attrition rate. Particulars Higher Pay Good Working environment Better Prospects Percentage 25% 30% 45%

Factors influencing increase in attrition rate

fig.10

25% Higher Pay 45% Good Working Environment Better prospects 30%

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:

The above data shows that majority of respondents i.e., 45% faculty members say better job prospects provided by other institutions influence them to leave the present job. 30% respondents said bad working environment has a greater influence on rising attrition rate. The rest of 25% feel that higher pay given by other institutions make them leave their job.

Inference:
By analyzing the above data it can be said that employees have greater attraction towards better prospects available on job. The above graph reflects the same, as majority of respondents voted for it. There is equal demand for good working environment and better pay too. Hence it can be recommended that the institutions should focus on providing better prospects on job in order to retain its employees. Providing better working environment and good compensation will also help in retaining talent in the organization.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 11: Rate of employee turnover in organizations. Particulars Yes No Percentage 65% 45%

Rate of employee turnover in organizations

fig.11

70% 60% 50% 40% 30% 20% 10% 0% Yes No

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:

From the above data it is seen that 65% of respondents feel that there exists employee turnover in their organization. The remaining i.e., 35% of the respondents feel that employee turnover is very low in their institution and few among them said such problem do not exist at all in their institution.

Inference:
Analysis of the above data gives a picture that employee turnover does exist in most of the educational institutions. The problem of attrition also has its footprint in education sector and the rate of attrition is rising now a days. But still there are some institutions that are successful in retaining the talents in their organization. By the above analysis it can be recommended that the institutions should take timely measures to prevent employee turnover. If not, in very short period, this may change the peoples attitude towards education sector.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 12: Causes for attrition in Education sector.

Particulars Lack of Challenging Work Lack of Job Prospects in Current Institute Lack of Growth Others

Percentage 8% 43% 35% 14%

Causes for attrition in Education sector

fig.12
Lack of Challenging Work Lack of Job Prospects in current Institute Lack of Growth 43%

14%

8%

35%

Others

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:
The above data shows that majority of respondents i.e., 43% faculty members think that lack of good prospects in current job has a direct impact on increasing the attrition rate in education sector. 35% of the respondents feel that lack of growth makes the attrition rate to rise. The next set of respondents i.e., 14% feels other factor such as work life balance, good compensation influence attrition rate to grow. And rest of 8% respondents feel that lack of challenging work causes attrition in education sector.

Inference:
The study revealed that lack of job prospects in current institution makes the employees to change the job. The institutions with all the amenities would attract the best talent and retain the same. Lack of growth in current job also demotivates employees and thus contributes in rising attrition rate. Other factors like work life balance, good compensation also causes attrition. Employees also look for challenging work. Thus, the institutions should focus on providing better job prospects in order to prevent attrition in their organization.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 13: Flow of positive attitude from institutions to control attrition. Particulars Yes No Percentage 75% 25%

Flow of positive attitude from institutions to control attrition

fig.13

80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:
From the above data it is seen that 78% of respondents say that their institution takes certain measures to reduce attrition rate. While 22% of respondents feel that their institution does not take any measures to prevent attrition.

Inference:
The study revealed that most of the institutions are worried about increasing attrition rate in their organization and they take timely measures to prevent it. This reflects managements care towards their employees. But few institutions will not take any measures to control attrition in their organization. Inefficient management acts as a hurdle to implement preventive measures to control attrition rate in their organization. Thus the organizations should focus on taking certain measures to improve the quality of management and to reduce attrition rate.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 14: Measures taken by Educational institutions to control attrition.

Particulars Better Work Life Flexible Timing Better Pay

Percentage 46% 20% 34%

Measures taken by Educational institutions to control attrition

fig.14
50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Better Work Flexible Timing life Better Pay

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:
The above data shows that majority of the respondents i.e., 46% faculty members say that their institutes focus on providing better work life to their employees as a measure of controlling attrition. 34% respondents say their institution provides better compensation to reduce the rate of attrition and 20% of the respondents feel that flexible working time is used as a measure of controlling attrition rate.

Inference:
Analysis of the above study reveals that providing better work environment is used as a measure to control increasing rate of attrition in education sector by most of the institutes. Some organizations feel higher pay would attract the employees and by receiving good compensation people wish to continue their work in the organization very less number of institutions consider providing flexible timing to employees would make them relax in the work place and they would love to continue their work.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 15: Respondents preference to measures of controlling attrition. Particulars Flexible Timing Challenging Work Better Pay Percentage 40% 24% 36%

Respondents preference to measures of controlling attrition

fig.15

Better pay

Challenging Work

Flexible Timing 0% 10% 20% 30% 40%

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:
From the above data it is seen that majority of the respondents i.e., 40% faculty members feel flexibility in working time can be adopted by the institutions to reduce attrition rate. 36% of the respondents think that the institutions can adopt better compensation policies to reduce attrition rate. The rest of 24% respondents feel challenging work can be provided by the institutions can act as a better measure in reducing attrition rate.

Inference:
By analyzing the above data we can say that most of the employees look for flexible working hours. The institutions that provide the faculties what they need will succeed in retaining them. As few faculties prefer better money to be paid, they can provide good compensation as another measure. The management also should facilitate challenging work to motivate the employees. Thus, employee focused policies can help the organization to achieve its goals and objectives much easier, much faster and much better.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 16: Faculty members response towards continuing their relationship with the institute Particulars Will Stay Will Leave Percentage 63% 37%

Faculty members response towards continuing their relationship with the institute

fig.16
70% 60% 50% 40% 30% 20% 10% 0% Stay with Institute Leave the Institute

M P Birla Institute of Management

Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:
From the above data it is seen that majority of the respondents i.e., 63% faculty members prefer to stay with the institute. While 37% respondents would like to quit the job.

Inference:
By analyzing the above data it can be said that most of the employees are loyal to the organization they work for and they would like to continue their relationship with the institution for further period. But few people said that if given an option they would leave the institute for various reasons including bad working environment, lack of recognition for their work and such other factors. Hence the institutions that are facing such problems should focus on understanding faculty members needs and take necessary measures to overcome it.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 17: Institutions response to improve employees attitude on job Particulars Yes No Percentage 65% 45%

Institutions response to improve employees attitude on job

fig.17

70% 60% 50% 40% 30% 20% 10% 0% Yes No

M P Birla Institute of Management

Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:

The above data shows that 65% of respondents are happy about the fact that their institution takes necessary measures to improve their attitude on job. But 45% of respondents said that their institution does not take any steps to improvise its employees attitude towards job and organization.

Inference:
The study revealed that most of the institutions have recognized the importance of human resource in the organization and thus they are stepping towards analyzing the employees problems. Most of the institutions include certain programs which enhances employee motivation. This will lead to employee satisfaction and thus result in retaining talent in the organization. But some institutes have not taking any such activities. This would lead to a serious issue of increasing attrition rate. Thus, such institutions should focus on implementing certain programs that would create a sense of belongingness in the employees towards the organization.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 18:
Respondents preference for accepting overseas projects provided by the institute. Particulars Yes No Percentage 92% 8%

Respondents preference for accepting overseas projects provided by the institute

fig.18

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No

M P Birla Institute of Management

Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:

The above data shows that 92% of respondents are happy to accept overseas education projects or training facilities provided by the institution. But 8% of respondents do not wish to accept such projects.

Inference:
By analyzing the above data it can be said that most of the faculty members wish to accept overseas education projects offered by the institutions as they provide them better exposure. They feel that such projects give them recognition in the society. But some faculty members avoid such offers, as they do not like going abroad for various reasons like family issues, health problem and their unwillingness to fly abroad.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Table 19: Counseling facilities provided by the institutions.

Particulars Yes No

Percentage 60% 40%

Counseling facilities provided by the institutions

fig.19

60% 50% 40% 30% 20% 10% 0% Yes No

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Interpretation:

The above data shows that 60% of respondents say that their institution provides counseling facilities to them. While 40% say their institution provides no such facilities.

Inference:
By analyzing the above data it can be said that most of the institutions consider providing counseling facilities to faculty members help the employees to know their problems and to deal with them in a proper manner. Few institutions still are not able to provide any counseling facilities to its faculty members because of various reasons. The reasons would include managements negligence towards employees and such other factors. Such institutions should try to focus on providing counseling facilities to its employees in order to know their problems.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

5.2 FINDINGS
1. There is more demand for incentives as a part of monetary reward when compared to Bonus and other types of benefits.

2. Most of the employees in education sector tend to have positive attitude towards their job and they love their work.

3. Majority of faculty members demand for recognition by the institute for the work they do. Next comes leave benefits followed by flexible working hours and training facilities.

4. Recognition plays a vital role in satisfying employees self actualization needs. Money matters next to recognition followed by good working conditions and promotions.

5. Most of the people think that the factors including non-monetary benefits, good working environment, work life balance and other factors would motivate them better than money.

6. Teaching job, by itself, is considered to be the strongest factor that enhances the level of motivation among employees.

7. In current scenario most of the institutions are focusing mainly on satisfying employees needs. Employees are provided with various in-house recreational facilities.

8. Faculty members can also avail additional facilities on request like organizing a seminar, connection to Internet; access to good libraries like IIM library, British library, etc.

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Employees Attitude Towards Monetary And Non-Monetary Rewards 9. Highest number of respondents think that better growth prospects is the most important factor for existing of job. And they also felt that need for increased responsibility is the most influential factor for quitting a job.

10. The institutions with all the amenities would attract the best talent and retain the same. While Lack of growth in current job, challenging work, work life imbalance, unfair compensation demotivates the employees.

11. Most of the institutions are worried about increasing attrition rate in their organization and they concentrates on taking timely measures to prevent it.

12. Providing better work environment is used as a measure to control increasing rate of attrition in education sector by most of the institutes.

13. Most of the employees look for availability of flexible working hours on job.

14. Most of the employees are loyal to the organization they work for and they would like to continue their relationship with the institution for further period.

15. Most of the institutions include certain programs which enhance employee motivation and thus are responding positively to improve employees attitude on job.

16. Most of the faculty members wish to accept overseas education projects offered by the institutions as they provide them better exposure.

17. Most of the institutions consider providing counseling facilities to faculty members help the employees to know their problems and to deal with them in a proper manner.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Chapter 6

Conclusion and Recommendations

Overview of the chapter

6.1 Conclusion 6.2 Recommendations

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Employees Attitude Towards Monetary And Non-Monetary Rewards

6.1 Conclusion
Employee turnover rate is increasing in education sector and changing employees attitude towards job is the main reason to it. Faculty members need recognition rather than any other benefits received in terms of money. They wish the management to focus on solving their problems. These conclusions indicate that company should identify their critical employees; understand their needs with regards to career and the environment at work and must create a satisfying professional life at the organization and also be able to continuously meet the expectations and needs of these employees. It is through proactive efforts that the company can reduce the likelihood of losing the critical employees.

6.2 Recommendations
The study conducted to investigate the interdependence of the variables affecting employees attitude towards job and its effect on attrition rate has led to the findings and conclusions as presented in the preceding chapters. Based on those findings the following suggestions have been made. In order to keep employees satisfied and retain them organisations can adopt the following practices: Provide better training facilities for employees. Customized compensation and incentive plans Provide updated technology and software packages. Attribute time for development. Provide challenging work profile and clear career path. Provide and open work culture facilitating individual growth. Create a dynamic organisation open to changes.

M P Birla Institute of Management

Employees Attitude Towards Monetary And Non-Monetary Rewards Ensure transparency in all processes. Ensure competitive compensation plan, which is on par industrial standards. Increase responsibility and quality work. Avoid indifferent attitude and interference in work. Improve communication and communication channel. Provide flexibility in terms of work hours. Avoid politics, bureaucracy, favoritism that could de-motivate Employees. Management should adopt pro-active nature rather than reactive nature to problem solving.

These are practical employee management suggestions, which will bring about more productive and better-satisfied employees. Use of specific incentives rewards in monetary and non-monetary forms constitute tangible results for the employee. Employee who are recognized for their worth to the institute and rewarded accordingly will multiply this value in increasing profits and the social value of the organization.

Implementing these suggestions in no way implies lack of leadership. In fact, such procedures actually increase leadership ability. Each employee is invited to assist management and is expected to participate in plans and discussions. Thus, management and employees have similar responsibility in maintaining good leadership.

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Employees Attitude Towards Monetary And Non-Monetary Rewards

Chapter 7

Annexure

Overview of the chapter

7.1 Questionnaire 7.2 Bibliography

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Employees Attitude Towards Monetary And Non-Monetary Rewards

7.1 QUESTIONNAIRE
Name: Age: Gender: Name of the Institute: Number of years of experience: Educational qualification: Marital Status: Monthly income: < 10000 20000-30000 40000 and above 1. What sort of monetary benefits would you prefer? Bonus Incentives 10000 -20000 30000-40000 Single Married Male Female

2 How do you comment on your attitude towards non monetary rewards? Very positive Very negative Positive Negative

3 What sort of non monetary benefits would you prefer? Training facilities Leave benefits 4 Do you like your job? I love it immensely The job suits me I love it Looking for a change Flexible working hours Recognition

5 According to you what factors indicate job satisfaction? Good compensation Working conditions Recognition Promotions

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Employees Attitude Towards Monetary And Non-Monetary Rewards 6 Does compensation lead to motivation directly? Yes No

7 What factors according to you motivate you better on your job? Job itself Personality development programs 8 Does your institution provide in-house recreational facilities? Yes No Working environment

9 Does the management provide additional facilities if requested by the faculties? Yes No

10 if yes, what kind of facilities would you prefer? 11 According to you what factors influence the faculties to leave the institute? Higher pay given by others Better prospects 12 Is there employee turnover in your institute? Yes No Bad working environment

13 What according to you causes attrition in education sector? Lack of challenge in work institute Lack of growth Others Lack of job prospects in Current

14 Have any measures been taken by your institute to reduce attrition rate? Yes 15 if yes, what kinds of measures Better work life Better pay Flexible timing No

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Employees Attitude Towards Monetary And Non-Monetary Rewards

16 According to you what measures could be taken to reduce attrition rate in your institute? Flexible timing Better pay 17 Given a chance would you stay with institute or leave it? Will stay with the institute Leave the institute Challenging work

18 Does the institute take any measures to improve your attitude on job? Yes No

19 Would you be interested in accepting overseas education projects? Yes No

20 Does the institute provide counseling facility to the faculties? Yes No

21 How do you think an individual employees attitude towards job could be improved?

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Employees Attitude Towards Monetary And Non-Monetary Rewards

7.2 BIBLIOGRAPHY
REFERENCES:
HRM- George T Milovich & John W Boudren Human Resource and Personnel Management- K.Aswathappa. Organizational Behavior 9th edition - Stephen P. Robbins

WEBLIOGRAPHY:
http://www.opm.gov/perform/articles/090.asp http://hr.blr.com/news.aspx?id=3394 http://hr.blr.com/news.aspx?id=75507 http://humanresources.about.com/od/rewardrecognition/Rewards_Recognition_Award s_Thank_You_Ideas.htm www.hrmguide.com www.ninja.com www.wikipedia.com

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