my project l&t bbsr

8/12/2019 my project l&t bbsr

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Employee retention strategy.

Summer Internship Project Report

On

EMPLOYEE RETENTION STRATEGY AT L&T

At

LARSEN & TOUBRO Ltd, BHUBANESWAR

(Submitted For the Parti al F ul fi llment of the Requir ement f or the Degree of M aster in

Business Administration)

INTERNAL GUIDE: - SUBMITTED BY:-

DR. MIHIR RANJAN NAYAK MONALISA DASH

DIRECTOR OF IIPM SCHOOL OF MANAGEMENT, MBA (2010-2012)

IIPM - SCHOOL OF MANAGEMENT REGD NO. 1006262048

Biju Patnaik University of Technology, Rourkela, Odisha.


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INDEX

SL NO. CONTENT PAGE NO.

1. ACKNOWLEDGEMENT 03

2. DECLERATION 04

4. EXECUTIVE SUMMARY 05

5. HISTORY OF THE COMPANY 06-08

6. INTRODUSTION OF THE COMPANY 09-11

7. METHOD OF THE RESEARCH 12

8. ABOUT THE TOPIC 13-21

9. EMPLOYEE RETAINTION TOOL 22-26

10. PRIMARY DATA ANALYSIS 27-38

11. FINDINGS 39-42

13. CONCLUSION 43

14. BIBLIOGRAPHY 44


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Acknowledgement

This summer internship program(sip), at L&T Bhubaneswar, beings a great learning experience

for me, I learn many things about the corporate business. This all happens only because of the

management of the L&T who had given me the platform to do my sip. The four weeks of

industrial exposure at L&T, Bhubaneswar has been a god send for me and I pay all my gratitude

and thanks to the Almighty who has always showered his blessings at every crossroads and in

adverse and bizarre circumstances of my life.

Internship at L&T Bhubaneswar has been a great worth and underpinning of learning for me.

Preparing this project report entitled employe retention strategy at L&T Bhubaneswarhas

augmented my horizon of knowledge concerning various aspects of the subject, and I have made

all my efforts at articulating and systematizing an unambiguous concept regarding the subject.

Though the completion of this project was not an easy but an uphill task, yet the path was made

easier by the fervent aid and encouragement of my near and dear ones. This report is not an

upshot of my solo effort; rather several factors have canalized the efforts to this end. Im ever

thankful to my parents and other family members who have always stood by me and it is their

benediction which helped me to complete this task.

I express my earnest gratitude and heartiest thanks toMr Anurag Khanna, Branch manager,

Mr Benudhar M Naidu HR managerand all other employees of the different Department, at

large at each hierarchical level whose cooperation and guidance has made this work simpler and

easier.

Deeply indebted Im to my unparallel, dynamic and versatile faculty guide Prof. (Dr.) Mihir

Ranjan Nayak, Director, IIPM-SOM. Without his noble suggestions, inadvertent support and

guidance, this report would not have the gleam of vividness. Highly grateful Im to Prof. Surjit

Kumar Kar,Faculty & SIPCoordinator, and all other faculty members of the college whose

retiring support and guidance has always been there with me.Last but not the least; I would

dedicate this project report to a man who for eternity will be etched in my heart and who has

always been there for me with his courteous, supportive and encouraging persona. He is none

other than my faculty guide. This report is not an end in itself and it has every scope of elegance.

I welcome all suggestions for its aptness.


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DECLEARATION

I, Monalisa Dash, student of MBA (2010-12) studying at IIPM School of Management,

Kansbahal, hereby declare that the project entitled employe retention strategy at L&T

Bhubaneswar undertaken at L&T , Bhubaneswar, was carried out by me for the partial

fulfillment of MBA programme under Biju Patnaik University of Technology, Rourkela, Odisha.

This project was undertaken as a part of academic curriculum according to the university

rules and norms at by no commercial interests or motives.

Date- Monalisa Dash

PlaceKansbahal Regn. No: 1006262048

MBA (2010-12)


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Dr. Mihir Ranjan Nayak

Director & prof of HR

IIPM School of Management

Kansbahal

CERTIFICATE

This is to certify that Miss Monalisa Dash registration no-1006262048, a student of iipm-som,

under Biju Patnaik University of Technology; Rourkela has undergone her summer internship

entitled Employee retention strategy L&T Bhubaneswar. The summer internship report is

original to the best of my knowledge and belief. I recommend for evaluation

Date Dr. MIHIR RANJAN NAYKDirector & Prof of HR

IIPM School of management


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HISTORY OF THE COMPANY

Henning Holck-Larsen & Soren Kristen Toubro came to India in 1934, as employees of FLSmidth, Denmark, to provide engineering services to Cement Plants in India. During their staythey became fond of India and its culture. They realized the growing business potential in thiscountry and laid the foundation of their partnership firm in the year 1938, christened as Larsen &

Toubro.

The company had its humble beginning in a tiny room in South Mumbai near to theCorporate Headquarters. With time the company took huge achievement strides and the

Marshy land in south Mumbai was transformed to a sprawling enterprise spread over 99 acres,employing more than 24,000 people and catering to the engineering needs of the world withdiverse product lines. Today, t he expertise of the company lies in Engineering andConstruction but it is constantly leveraging its knowledge in other areas like InformationTechnology.

1940s

The adventure that began so humbly surpassed even the well-established companies, theevidence of which is contained in the following milestones.

Engineering, Construction Corporation (ECC) is incorporated. ECC was altogether a newdirection in the nature of the company's commitment.

The partners sign a dealership agreement with the Tractor Company, Caterpillar Inc.,and USA-one of the largest manufacturers of earthmoving equipment.

Larsen & Toubro Private Limited comes into being on February 07, 1946

L&T acquires 55 acres of undeveloped marsh, swamp and jungle at Poway in 1948

1950s

L&T becomes a Public Company in December 1950, with a paid-up share capital of Rs.20Laces. Sales turnover at the time was Rs. 109 laces.

Tractor Engineers Limited (TENGL) is incorporated as a joint venture of L&T andCaterpillar Inc. USA on September 18, 1952, to manufacture Tractor undercarriagecomponents.

A major part of the company's Bombay office moves to IC House at Ballard Estate in1956. In 1966 the building is purchased by the company and re-christened as L&T House,

our Corporate Headquarters.

L&T receives a substantial order for the erection of the first three blast furnaces and apig-casting machine at Rourkela, followed by another for the erection of the rolling mill building

1960s

L&T emerges as the largest and most outstanding erection contractor in India.


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A Switchgear Workshop is set up. Rapid expansion of facilities follows to meet increasingdemand. By the mid-sixties, L&T emerges in the forefront of Switchgear manufacture.

Prestigious contracts include turnkey construction of the Radiological Laboratories forthe Atomic Energy Establishment, Tomboy. The laboratory, besides being verysophisticated, was one of the largest in Asia. Construction included hot cell facilities to

enable handling of highly radioactive material.

L&T secure a contract from Sumitomo, Japan for the erection of an Iron ore beneficiationplant for Hindustan Steel Limited at Barsua, Orissa.

Eutectic Alloys of India Limited, an associate company of L&T, was set up in April 04,

1962. It was later renamed EWAC Alloys Limited and became a subsidiary of L&T.

L&T manufacture Indiasfirst indigenous Nuclear Reactor Vessel for

Rajasthan Atomic Power Plant.

1970s:

L&T invests in facilities for the manufacture of hydraulic excavators in collaboration withPoclain, S.A., France. This represented a new technology and a distinct edge over the cable-operated excavator then in operation.

L&T manufacture a high speed bottling plant (Capacity: 24,000

bottles/hour) for the Delhi Milk Scheme.

L&T supplies and commissions India's largest indigenous Cement plant

(1,200 TPD). Six more plants of the same capacity are supplied.

L&T fabricates and delivers motor casings for Indian Space Research

Organization (ISRO).

1980s

Manufactures the first multi-wall vessel for ammonia separation for

Hindustan Fertilizer Corporation Limited, Namur.

L&T manufactures India's first indigenous adjustable throat armor, at

Kansbahal, for a blast furnace at TISCO.

L&T receive national recognition for its path breaking achievement in developing the tri-junction welding technique for critical parts of nuclear reactors. It receives the Republic DayAward for this meritorious invention in 1982.

L&T secure an order from ISRO for the manufacture of rocket motor casing made frommanaging steel for the Polar Satellite Launch Vehicle (PSLV).

L&T establishes itself as India's largest manufacturer of low-tension switchgear, withthe widest range. A new Switchboard-Motor Control Center (Type TQ)-incorporating


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several technical innovations is introduced.

L&T sets up Cement plants at Awarpur. The company's marketing efforts help convert acommodity into a brand.

Heavy Engineering facilities are set up at Hazira near Surat for the manufacture of heavy and

large equipment. Commercial production at this water front facility commences in 1987.

L&T establishes thrust in electronics-Computer peripherals,Telecommunications, Medical electronics

1990s

L&T emerges as India's largest integrated engineering and Construction

Company.

The company ventures into software development-later spun off as a subsidiary.Builds the Bahai Temple, New Delhi-a novel landmark.

Builds Asia' highest viaduct at Panel Nadi.

Fabricates giant oil platforms, including India's biggest marine structure.

L&T emerge as the largest producer of cement. Sets up cement plants in

Orissa, Gujarat, Madhya Pradesh, and Andhra Pradesh.

Consolidates its leadership position in low-tension switchgear.

Fabricates India's first indigenous hydrocracker reactor.

2000 onwards

L&TJohn Deere Ltd. formally opened in Sanaswadi near Pune.

HHL receives the Padma Bhushan.

L&T cement business is disinvested to Grasim Industries of Aditya Birla

Group

L&T Glass Business divested

Sale of JV stake in tractor business


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INTRODUCTION TO THE COMPANY:

LARSEN & TOUBRO LIMITED is a major multi-dimensional conglomerate, ranked among thetop five companies in India's private sector. It holds leadership position in most of its major

domestic businesses -- engineering and construction, electric-cal and electronics, cement and

Information Technology.

In the engineering and construction segment, L&T's reputation is based on a track-record of

success in supplying plant and equipment of unprecedented scale and sophistication for criticalindustries -- oil & gas, refinery, petrochemical, chemical, power, cement, steel and mining.

VISION

L&T shall be professionally-managed Indian multinational, committed to customer satisfaction

and enhancing share holder value.

L&T its shall be an innovative entrepreneurial and empowered team constantly creating value

and attaining global bench mark.

L&T its shall foster a culture of caring, trust and continuous learning while meeting expectationof employees stakeholders and society.

BOARD OF DIRECTOR

A.M. NAIK- CHAIRMAIN &

MANAGING DIRECTOR

J. P Naik

President(m

echinery &

industrial

product)

M.V.Kotwal

Sr. Executive

Vice

President(He

avyEngineeri

ng

Y. M.Deosthalee

ChiefFinancialOfficer

K.

Venkatarama

nanPresident

Engineering&

Construction Projects)

R.N. Mukhija

Precidnt

(electrical &

electronics)

V.K.MagauSr.ExecutiveVicePresident

K. V.

RangaswamiSr.

ExecutiveVic

e President(Construction


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BUSINESS DIVISIONS OF L&T:

ENGINEERING, CONSTRUCTION & CONTRACTS (ECC)

ELECTRICAL & ELECTRONICS BUSINESS GROUP (EBG)

HEAVY ENGINEERING DIVISION (HED)

ENGINEERING & CONSTRUCTION PROJECTS (E&C) INFORMATION TECHNOLOGY SERVICES MACHINERY & INDUSTRIAL PRODUCTS DIVISION (MIPD) PERSONAL POLICIES OF L&T

PERFORMANCE MANAGEMENT SYSTEM

TRAINING & DEVELOPMENT

PROMOTION & CARRIER DEVELOPMENT

MANAGEMENT DEVELOPMENT CENTRE

LEADERSHIP PROGRAMS

BENEFITS FOR THE EMPLOYEES

COMPENASATION & BENEFITS LEAVE TRAVEL ASSISTANT HOLIDAY HOME FACILITIES LONG SERVICE AWARD & LONG SERVICE SPECIAL AWARD GROUP PERSONAL ACCIDENT POLICY

HEAD OFFICE OF L&T FINANCE & ACCOUNTS MERGER & ACQUISITION RISK MANAGEMENT LEGAL L&T MARKETING NETWORK


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SHARED SERVICE CENTRE CORPORATE GOVERNANCE CORPORATE AUDIT SECRETERIAL

CORPORATE COMMUNICATION VP OFFICE(Delhi) POWAE GROUP MAINTENANCE POWAE WORK PERSONAL CORPORATE HR


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Method of research

This project is an analytical research where in we had to use the available facts as information

and analyze this to make a critical evolution of the topic. At the same time this is also an applied

research which means to find a solution for an immediate problem face by an industry or anorganization.

Type of research:

1) Analytical research

2) Applied research

SAMPLE SIZE: 50

SAMPLING TYPE: SYSTEMATIC RANDOM SAMPLING

SOURCES OF DATA:

Primary data: All the primary data were collected through interviews with executives, employees

of L&T (Bhubaneswar).

Secondary data:

(a)Annual report of the company

(b)Company records of L&T

(c)From website

(d) L&T Employee handbook


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ABOUT THE TOPIC

Employee retention refers to policies and practices companies use to prevent valuable employees

from leaving their jobs. How to retain valuable employees is one of the biggest problem that

plague companies in the competitive marketplace. Not too long ago, companies accepted therevolving door policy as part of doing business and were quick to fill a vacant job with another

eager candidate. Nowadays, businesses often find that they spend considerable time, effort, and

money to train an employee only to have them develop into a valuable commodity and leave the

company for greener pastures. In order to create a successful company, employers should

consider as many options as possible when it comes to retaining employees, while at the same

time securing their trust and loyalty so they have less of a desire to leave in the future.

MEANING

Employee retention involves taking measures to encourage employees to remain in the

organization for the maximum period of time. Corporate is facing a lot of problem in employee

retention these days. Hiring knowledgeable people for the job is essential for an employer. But

retention is even more important than hiring. There is no dearth of opportunities for talented

person. There are many organizations which are looking for such employees. If a person is not

satisfied by the job hes doing, he may switch over to some other more suitable job. In todays

environment it becomes very important for organizations to retain their employees.

DEFINITION

According to Get Les McKeonsemployee retention is define as effective employee retention

is a systematic effort by employers to create and foster an environment that encourages current

employees to remain employed by having policies and practices in place that address their divers

needs. Also of concern are the costs of employee turnover (including hiring costs. productivity

loss). Replacement costs usually are 2.5 times the salary of the individual. The costs associatedwith turnover may include lost customers, business and damaged morale. In addition there are

the hard costs of time spent in screening, verifying credentials, references, interviewing, hiring,

and training the new employee just to get back to where you started.


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BENEFITS OF EMPLOYEE RETENTION.

Employee retention refers to policies and practices companies use to prevent valuable

employees from leaving their jobs. How to retain valuable employees is one of the biggest

problem that plague companies in the competitive marketplace. Not too long ago, companies

accepted the revolving door policy as part of doing business and were quick to fill a vacant job

with another eager candidate. Nowadays, businesses often find that they spend considerable

time, effort, and money to train an employee only to have them develop into a valuable

commodity and leave the company for greener pastures. In order to create a successful company,

employers should consider as many options as possible when it comes to retaining employees,

while at the same time securing their trust and loyalty so they have less of a desire to leave in the

future.

Every company should understand that people are their best commodity.

Without qualified people who are good at what they do, any company would be in serious

trouble. In the long run, the retention of existing employees saves companies money. As Beverly

Kaye and Sharon Jordan- Evan stated in Training and Development: Studies have found that the

cost of replacing lost talent is 70 o 200 percent of that employees annual salary. There are

advertising and recruiting expenses, orientation and training of the new employee, decreased

productivity until the new employee is up to speed, and loss of customers who were loyal to

the departing employee. Finding, recruiting, and training the best employees represents a major

investment. Once a company has captured talented people, the return-on-investment requires

closing the back door to prevent them from walking out.

When an employee leaves a company for a direct competitor, there is always a chance

that they will take important business strategies and secrets with them to be explained by the

competition. This is yet another reason why the retention of employees is so crucial to some

businesses. While this practice seems a bit unscrupulous, it skills happens quite frequently. As

Bill Leonard stated in HR Magazine: Because employers know that the best-qualified applicants

Will come directly from competitors, recruiting and hiring employees away from mother of

inventive and sometimes controversial business practices. Recruiting and hiring from your

competitors is probably as old as business itself. But what is newand a hot topic among


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employersis how to attract and retain qualified candidates in a highly competitive labor market

while also preventing their own intellectual capital from winding up in the hands of competitors.

One way for a company to prevent employees from giving valuable information to competitors is

to make it a policy to enforce strict noncompeting and confidentiality agreements amongst its

employees. The existence of such agreements could in fact deter a competitor from hiring a

valuable employ because they might not want to risk possible legal entanglements with the other

company. Of course, all this could possibly lead to animosity with the employee who could feel

that his or her options are being limited. Many employees dont always remember signing such a

document, so a copy of it should always be kept on file for the employee to refer to. This area

could prove to be a highly sensitive one between employer and employee, so extreme caution is

suggested in all instances.

IMPORTANCE OF EMPLOYEE RETENTION

Why is retention so important? Is it just to reduce the turnover costs? Its not only the cost

incurred by a company that emphasizes the need of retaining employees but also the need to

retain talented employees from getting poached.

The process of employee retention will benefit an organization in the following ways

The Cost of Turnover:

The cost of employee turnover adds hundreds of thousands of money to a company's

expenses. While it is difficult to fully calculate the cost of turnover (including hiring costs,

training costs and productivity loss), industry experts often quote 25% of the average

employee salary as a conservative estimate.

1. Loss of Company Knowledge:When an employee leaves, he takes with him valuable knowledge about the company,

customers, current projects and past history (sometimes to competitors). Often much time and

money has been spent on the employee in expectation of a future return. When the employeeleaves, the investment is not realized.

1. Interruption of Customer Service:Customers and clients do business with a company in part because of the people. Relationships

are developed that encourage continued sponsorship of the business. When an employee leaves,


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the relationships that employee built for the company are severed, which could lead to potential

customer loss.

2. Turnover leads to more turnovers:When an employee terminates, the effect is felt throughout the organization. Co-workers are

often required to pick up the slack. The unspoken negativity often intensifies for the remaining

staff.

3. Goodwill of the company:The goodwill of a company is maintained when the attrition rates are low. Higher retention rates

motivate potential employees to join the organization.

4. Regaining efficiency:If an employee resigns, then good amount of time is lost in hiring a new employee and then

training him/her and this goes to the loss of the company directly which many a times goes

unnoticed. And even after this you cannot assure us of the same efficiency from the new

employee.


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The 3 Rs of Employee Retention

To keep employees and keep their satisfaction levels high, any organization needs to implement

each of the three Rs of employee retention: respect, recognition, and rewards.

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 do not respect employees.

RESPECT

RECOGNITION

REWARD


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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.

Rewardsare 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.

You determine the precise methods you choose to implement the three R's, but in general,

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

seem hollow and have little effector they have negative effects. The magic truly is in the mix

of the three. When implemented, the 3 R's approach yields reduced turnover and the following

benefits:

Increased productivity, Reduced absenteeism, A more pleasant work environment (for both employees and management/employer), Improved profits.

Furthermore, an employer who implements the three R's will create a hard-to-leave workplace,

one known as having more to offer employees than other employers. It becomes a hard-to-leave

workplace one with a waiting list of applicants for any position that becomes available

purposefully, one day at a time.


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Ten Ways to Retain Your Employee

Retaining key personnel is critical to long-term success of any organization. A sound retention

strategy thus becomes essential for any organization to be productive over time and should be

treated as an important part of their hiring strategy by attracting the best candidates who know of

their track record for caring for employees. In fact, some companies do not have to recruit

because they receive so many qualified unsolicited submissions due to their history of excellence

in employee retention.

How do you get your employees to "fall in love" with the organization and let them stay

in love with the organization? This is a great question. Some recently conducted research

lists these top ten strategies:

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

good employees than it is to hire and train new ones. Your top 20-25% should be courted as

you would court and then service your top customers.

2. Get your employees to "fall in love" with your organization. Communicate your vision

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

opportunities for people to connect with each other for support and to improve

communication in work teams.

o Capture the hearts of your workforce with: Compelling vision/balance/celebration-fun.

o Open Communication: Internal listening is a priority, multiple lines ofcommunication (various channels). This is essential for managing change in a

positive way with less sabotage, anger, resistance, and fear.

o Create partnerships: Squash status barriers/open the books/pay for performance (nottitles), share the "bad" times the "good" times.

o Drive Learning: "Guarantee Employability," Encourage Life Long Learning (Trainoutside of job description). Loyalty comes from trusting your employees to develop

their skills for the good of the company and for their needs for personal growth and

satisfaction.


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o Emancipate Action: Freedom to Fail, reduce bureaucracy, and challenge the "statusquo." Breathe life into your organization. Do not let your employees stagnate.

3. Strong retention strategies become strong recruiting advantages.

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

Know the job. Know the employee and their motivations. Half of the Fortune 500

companies are now using assessments to more fully understand each job and the soft skills

that are required for top production within their specific company culture. These

benchmarked skills are then compared against qualified applicants to help determine who

will be successful in the position and fit well within their company's culture. These

assessments are also used as a powerful professional development tool to enhance the

training of continuous lifelong learning (which is another powerful retention strategy). As an

example, Advanced Fiber Communication is beginning to use this assessment process in

hiring.

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

your compensation plan is in the top 20-30% of your industry, then money will often not be

the reason why people leave.

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

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

changed to make your company a better place to work?

Some companies, such as Advance Fiber Communication (AFC), have recognized that the

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

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

company has identified the top 25% of their staff and caters to these special people by

meeting their financial requirements and looking for the best package of benefits that these

people will find most positive as incentives to stay. They even have employee committees

that work as "focus groups" to determine why people stay at AFC and what they might want

to see changed to make AFC an even better place to work.


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7. Leadership must be deeply invested in retention. Management must be skillful

communicating company policies in a way that creates "buy-in" from their staff and be open

to employee input. Help create "ownership" in your employees.

The companies with the best retention percentages are the same companies that are actively

committed to retention. They know that is costs less to keep good people than to

continuously have to replace unsatisfied employees and managers.

8. Recognition, in various forms, is a powerful retention strategy. It does not have to cost a

lot. Research shows 46% of people leave their jobs because they feel unappreciated.

9. Remember, the "fun factor" is very important to many employees. Greg Peters, Past

President and CEO of Maui Networks in Petaluma, is one of many executives who reported

that retention is often related to interpersonal connections and amount of fun in work

teams. The FUN Factor is part of the generation of workers that use activities as stress

management in highly charged production environments where long hours are required. Greg

has encouraged Ping-Pong tournaments and basketball leagues for interpersonal interaction,

fun, and stress management. Though not everyone can participate in physical activities, this

sets the tone in a culture based on competition, health/well-being, and interactions that are

inclusive beyond work.

10. Know the trends in benefit packages. Do your best to offer the ones your employees

need? Consider offering the best of the rest.


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EMPLOYEE RETENTION TOOLS

Hiring individuals who are truly fit to succeed in the position for hire will dramatically increase

the chances of that employee being satisfied with his or her work and remaining with the

company for extended period of time. By far, we have found this to be the biggest predictor of

future employee retention.

Communication:Communication has become so heavily stressed in the workplace that it almost

seems clich. However communication couldnt be more important in the effort to retain

employees. Be sure that team members know their rules, job description, and responsibilities

within the organization. Communicate any new company policies or initiatives to all employees

to be sure that everyone is on the same page. Nobody wants to feel that they are being left out of

the loop.

Include employees in decision making:It is incredibly important to include team members in

the decision making process, especially when decision will effect an individuals department or

work team. This can help to create of employee involvement and will generate new ideas and

perspectives that top management might never have thought of.

Allow team members to share their knowledge with others: The highest percentage ofinformation retention occurs when on shares that information with others. Having team members

share when they have learned at a recent conference or training workshop will not only increase

the amount is information they will retain, but also lets a team member know that he is a

valuable member of the organization. Facilitating knowledge sharing through an employee

mentoring program can be equally beneficial for the team member being mentored as well as

mentor.

Shorten the feedback loop: Do not wait for an annual performance evaluation to come due

to give feedback on how an employee is performing. Most team members enjoy frequent

feedback about how they performing. Shortening the feedback loop will help to keep

performance level high and will reinforce positive behavior. Feedback does not necessarily need

to be


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Scheduled or highly structured; simply stoppingby a team members desk and letting them know

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

retention.

Balance work and personal life:Family is incredibly important to team members. When work

begins to put a significant strain on ones family no amount of money will keep an employee

around. Stress the importance of balancing work and ones personal life. Small gestures such as

allowing a team member to take an extended lunch once a week to watch his sons baseball game

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

Provide opportunities for growth and development: Offer opportunities for team members to

acquire new skills and knowledge useful to the organization. If an employee appears to be bored

or burned out in a current position offer to train this individual in another facet of the

organization where he or she would be a good fit. Nobody wants to feel stuck in their position

will no possibility for advancement or new opportunities.

Recognize team members for their hard work and let them know they are appreciated:

This can be one of the single greatest factors affecting employee retention. Everybody, in the all

levels of an organization, wants to know that their efforts are appreciated and recognized. This

can be as simple or as extravagant as a supervisor may desire. Often time a short e-mail or

quickly stopping by a team members desk and saying thanks can do wonder for morale. Other

options might include a mention in the company newsletter for outstanding performance or gift

certificates to a restaurant o movie theatrethe possibilities are endless.

Clearly define what is expected of team members: Nothing can be more frustrating or

discouraging for an employee than the lack of a clear understanding of what is expected of him

on the job. In a performance driven workplace a lack of clarity regarding job duties and

expectations can cause fear and anxiety among employees who are unclear of what is expected

of them. Even worse outright

Anger can occur when a team member receives a negative performance evaluation based on

expectations and job duties that he or she was unaware of or unclear about.


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The quality of supervision and mentorship:It has been said so often that it is almost clich,

butpeople leave, not their jobs. Supervisors play the largest role in a team members

development and ultimate success within an organization. All employees want to have

supervisors who are respectful, courteous, and friendly that is a given. But more importantly

team member want supervisors who se clear performance expectations, deliver timely feedback

on performance, live up to their word and promises, and provide an environment where

the employee can grow and succeed. Failure by supervisors and management to provide this can

cause an employee to start looking for greener pastures.

Fair and equitable treatment of all employees:One of the surest ways to create animosity and

resentment in an organization is to allow favoritism and preferential treatment of individual team

members. The so-called good ole boys club can create a noxious organization culture and

foster resentment among team members. This culture will only get worse and can create a

devastating exodus of valued team members.

Best employee reward programs:If these rewards are in terms of money, by dividing it into

two parts and giving the first half parts with the initial months salary and the remaining after six

months helps in retaining the employee for six months.

Career development program:Conditional assistance for certain courses should be provided

within the company in which the company will bear the expenses only if he/she scores a certain

aggregate of marks.

Performance based bonus: Toget more work out of the employees, remuneration in the form

of bonus helps to retain individuals who are highly productive. It doesnt add extra pressure on

the companys budget. It can be arranged by cutting a part of the salary hikes.

Employee referral plan:Introducing employee referral plans and giving referral bonus after six

to nine months of continuous working of the new employee as well as existing employee reduces

the hiring cost of new employee as well as helps retention of the existing ones for a longer period

of time.


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Loyalty bonus: After successful completion of a specified period of time in an organization

rewarding employees with money or position gives recognition and satisfaction to them. It also

gives encouragement to the fellow employees.

Giving voice to the knowledge banks:The important intellectual assets of the company are the

workforce. The company should retain it through involving I in some of the important decisions

Employee recreation:Involvement of top management along with the lower and middle level

management in some recreational activities makes the employees feel that they are very close to

the management and are treated equality.

Gifts on some occasions:Giving some gifts on festivals and special occasions to the employees

makes them feel good and realize that the management is concerned about them.

Accountability: Creation of an environment that demands accountability and transparency

helps employees to feel that they are as superiors. This helps in emotional bonding of the

employees.

Surveys: Conducting regular surveys, feedbacks from superiors as well as other issues like

morale, development plans, etc. This make them feel important and understand that the company

really cares for them

Fun and laughter at workplace: Fun and laugher in a workplace lend a competitive advantage

to an organization through its human recourses. The presence of humor in a workplace enables

the employees to work with interest and enthusiasm that reduce the work pressure and attrition

levels. It instills a sense of joy among the employees that can go a long way in creating a bond

between the employees and the employer and thereby decreasing the rate of employee attrition.

In a nutshell, creating a fun and laughter filled wok environment in an organization will pave

the way for its success in the marketplace. Such a company is sure to emerge as an employer of

choice.


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For every company, workforce is an intellectual capital which is the source of its competitive

advantage and helps achieve the bottom line. Hence, retaining a well trained, skilled and

contented workforce can lead a company to dizzy heights while the lack of it can hamper its

growth badly. So, every resignation saved is every dollar earned.

JIST OF THE EMPLOYEE RETAINTATION TOOL IN THE LNT BBSR.

No doubt, soaring retention levels are proving to be a serious problem for organizations.

Concerted efforts to keep retention on tight leash will definitely help. How retention level will

lead to fewer operational problems, greater productivity and soaring morale and huge cost saving

to the organization. In this context, attrition management has become the strategic focus and

compelling necessity of businesses today. Thus, ignoring the problem of mounting attrition level

can have devastating consequences for the business. Organization can afford to ignore the

problem at own peril.

This work enables me to gain a practical explore along with my theoretical knowledge. I

am sure that it will help me to pursuer my future studies.


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PRIMARY DATA ANALYSIS

To find the result over this topic, I had made a questionnaire with the help of my guide Mr.

Benudhar M. Naidu HR Manager, L&T Bhubaneswar. I had collected the sample of 50

respondents, the employees of L&T Bhubaneswar.

My first question of the schedule was

Qstn no-1=ARE YOU AWARE OF ANY RETENTION EFFORTS IN YOUR COMPANY?

(a)YES

(b)NO

From the above question 37 no. of employee from 50 no of employees are aware about theretention efforts in L&T Bhubaneswar.

Only 13 no. of employees are not aware about the retention efforts from 50 employees On analyzing the entire result I got the idea that many employees are aware about the

retention effort of the organization, which is a good sign for the L&T and also for my

research also. As because what they feel is very important for this study.

no of emplyee yes no

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Qstn no.2- WHY DO YOU STAY WITH L&T?

(a) GOOD WORK CULTURE

(b) GOOD SALARY

From the above graph we can know that 32 no of employees says t hat they stays with L&T forgood work culture.

18 no. of employees says that they stay with L&T for good salary.

This is the second question in this I wanted to test or to know the make them to stay with L&T.

no of

employee

good work

culture

good salary

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Qstn no.3-DID ANY EMPLOYEE DISCUSS WITH YOU WHAT WOULD HAVE MADE THEM STAY?

(a) YES

(b) NO

From the above graph 8 no. of employees says that they discuss that what make them stay withthe company.

42 no. of employees says that they dont discuss about this.In the third segment of the questionnaire, I had enquired that whether the employees discuss the

reason for staying with the organization or not

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no of employee yes no

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Qstn no.4-DO YOU KNOW OF SPECIFIC RETENTION PROBLEMS IN YOUR ORGANISATION?

(a) YES

(b) NO

From the above graph 8 no. of employee knows about the retention problem in L&T. 42 no of employee do not know about the retention problem of the organization.

The next study is about the reasons by which a employee basically leaves aOrganization. From my study I come to know that from the employees of L&T people

wants for more growth opportunities. So if they find no growth opportunity they leave the

job.

no of employee yes no

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QSTN NO.5. WHAT MAKES EMPLOYEES TO LEAVE

1. Job is not what the employee expected to be:

2. No growth opportunities:

3. Job and person mismatch:

4. Lack of appreciation:

5. Stress from overwork and work life imbalance:

6. Lack of trust and support in co-workers, seniors and management:

7. Compensation:

8. New job offer:

From the above graph 23 no of employees says that Jobis not what the employeeexpected to be means job satisfaction makes employee to leave the organization.

32 no of employees say that No growth opportunities is the reason employee attrition. 12 no of employees says that employee leave the job for Job and person mismatch Lack of appreciation is told by 8 no. of employee. 23 no of employee says that Stress from overwork and work life imbalance. Lack of trust and support in co-workers, seniors and management is told by 7 no of

employee.

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2 No. of employee said Compensation 16 no of employee said new job offer is another reason for that employees leave the job.

Qstn no.6- WHAT IS UNIQUE ABOUT YOUR COMPANYS RETENTION STRATEGY?

1.

Leadership:2. Selection:3. Professional growth

4. Meaningful work and ownership:

5. Recognition and rewards:

From the above graph we can know that the leadership program is most unique feature of L&T.

After that meaningful work and ownership is another unique system of L&T (Bbsr).Less no of

employees says that professional growth is unique in the organization.

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Qstn no.7-WHAT TYPE OF WORK SYSTEM IS MOST APPEALING TO YOU.?

1. Identify the cost of employee turnover

2. Understand why employees leave

3. Implement retention strategies

The above questioner is about the culture or system of the organization which is appealing to the

employees.From the above graph we can know that the identification of the cost of employee

turnover is most appealing system of the organization.

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Stun no.8-WHAT TYPE OF BENEFITS ARE MOST IMPORTANT TO Your employee in your

organization?

(A)CARRIER GROWTH

(b)INCEASE IN RESPONSIBILITY

(c) AUTHORITY

(d) JOB SATISFACTION

(e) GOAL FULFILLMENT

From the above graph we can know that more no. of employees are saying that carrier growth is

the most important benefit in the organization .After that job satisfaction , then authority af the

employee is important benefit in an organization . Increase in responsibility and goal fulfillment

is also another important benefit for the employees.

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Qstn no.9-WHAT TYPE OF SKILLS & TRAINING BENEFITS ARE IMPORTANT for the employee in your

organization?

(A) TECHNICAL

(b) NONTECHNICAL

Going to the next session we can know about the training need which is more important for the

employees. As the L&T (BBSR) is a corporate office so more no. of employees said that non

technical skill and training is more important for the organization.

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QSTN NO.10-Considering the expectations you had as you joined this organizations, do you

think that they have been satisfactorily?

(a) YES

(b) NO

From the above graph we can know that 94% of employees are satisfied with L&T

(Bhubaneswar).From 50 no. of employee 47 are saying that the expectations they had joined

L&T they have been satisfactory.

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no. of employee yes no

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QSTN NO-11-Are the reasons why you want to stay in this organization different from the reasons

you had for joining this organization?

(a) YES

(b) NO

According to this graph we can know that most of the employees join L&T having different

reason for joining other organization. It may be for good culture, environment and woke ethics of

the organization. But 13 no. of the employees says that they have same reason for joining L&T.

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no. of employee yes no

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QSTN NO-12-REASONS FOR EMPLOYEE TO STAY WITH THE ORGANISATION?

1. Confidence Factor-they believe in potential success/leadership strategies2. Emotional Factor- (Huge) contribution, recognition, appreciation3. Trust Factor- 2 ways- promises/commitments kept (strong link to loyalty)4. Fit Factor- Values/ethics are a good fit5. Listening Factor- Are they heard and valued?

As per my questioner from the above graph we can conclude that most of the employees stays

with the organization for the emotional factor like the contribution , recognition , appreciation

make them to stay with the organization .Less no. of employee said that listening factor means

what they heard and valued make them to stay with the organization.

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FINDINGS

WHY RETENTION?

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

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

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

imbedded organizational knowledge and learning

Employee retention matters. Organizational issues such as training time and investment; lost

knowledge; mourning, insecure co-workers and a costly candidate search aside, failing to retain a

key employee is costly. Various estimates suggest that losing a middle manager costs an

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

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

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

with departing employees provide valuable information that can used to retain remaining staff.

WHY PEOPLE LEAVE THEIR JOB

With retention being such a high priority, why are people leaving organizations? Some literaturesuggests that people leave their jobs for a wide variety of reasons, including:

1. Unmet expectations

2. Inappropriate fit for the role

3. Lack of fit with company culture

4. Lack of sufficient opportunities for growth and advancement

5. Inadequate recognition and appreciation

6. Problems with a manager or supervisor

7. Dissatisfaction with compensation

8. Stress

9. Lack of work/life balance

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


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MANAGING EMPLOYEE RETENTION:

The task of managing employees can be understood as a three stage process:

1. Identify the cost of employee turnover

2. Understand why employees leave

3. Implement retention strategies

identify the cost of employee turnover:

The organizations should start with identifying the employee turnover rates within a particular

time period and benchmark it with the competitor organizations. This will help in assessing the

whether the retention rates are healthy in the company. Secondly, the cost of employee turnover

can be calculated. According to a survey, on an average, attrition costs companies 18 months

salary for each manager or professional who leaves, and 6 months pay for eachhourly employee

who leaves. This amounts to major organizational and financial stress, considering that one out

of every three employees plans to leave his or her job in the next two years.

Understanding Why Employees Leave:

Why employees leave often puzzles top management. Exit interviews are an ideal way of

recording and analyzing the factors that have led employees to leave the organization. They

allow an organization to understand the reasons for leaving and underlying issues. However

employees never provide appropriate response to the asked questions. So an impartial person

should be appointed with whom the employees feel comfortable in expressing their opinions.

Implement retention strategies:

Once the causes of attrition are found, a strategy is to be implemented so as to reduce employee

turnover. The most effective strategy is to adopt a holistic approach to dealing with attrition. An

effective retention strategy will seek to ensure:

Attraction and recruitment strategies enable selection of the right candidate for eachrole/organization

New employees initial experiences of the organization are positive Appropriate development opportunities are available to employees, and that they are kept

aware of their likely career path with the organization

The organizations reward strategy reflects the employee driversThe leaving process is managed effectively


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ROLE OF MANAGER IN EMPLOYEE RETENTION

When asked about why employees leave, low salary comes out to be a common excuse.

However, research has shown that people join companies, but leave because of what their

managers do or dont do. It is seen that managers who respect and value employees

competency, pay attention to their aspirations, assure challenging work, value the quality of worklife and provided chances for learning have loyal and engaged employees. Therefore, managers

and team leaders play an active and vital role in employee retention.

Managers and team leaders can reduce the attrition levels considerably by creating a motivating

team culture and improving the relationships with team members. This can be done in a

following way:

1. Creating a Motivating Environment:Team leaders who create motivating environments are

likely to keep their team members together for a longer period of time. Motivation does not

necessarily have to come through fun events such as parties, celebrations, team outings etc. They

can also come through serious events e.g. arranging a talk by the VP of Quality on career

opportunities in the field of quality. Employees who look forward to these events and are likely

to remain more engaged.

2. Standing up for the Team:Team leaders are closest to their team members. While they need

to ensure smooth functioning of their teams by implementing management decisions, they also

need to educate their managers about the realities on the ground. When agents see the team

leader standing up for them, they will have one more reason to stay in the team.

3. Providing coaching:Everyone wants to be successful in his or her current job. However, not

everyone knows how. Therefore, one of the key responsibilities will be providing coaching that

is intended to improve the performance of employees. Managers often tend to escape this role by

just coaching their employees. However, coaching is followed by monitoring performance and

providing feedback on the same.

4. Delegation:Many team leaders and managers feel that they are the only people who can do a

particular task or job. Therefore, they do not delegate their jobs as much as they should.

Delegation is a great way to develop competencies.

5. Extra Responsibility:Giving extra responsibility to employees is another way to get them

engaged with the company. However, just giving the extra responsibility does not help. The

manager must spend good time teaching the employees of how to manage responsibilities given

to them so that they dont feel over burdened.


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6.Focus on future career:Employees are always concerned about their future career. A

manager should focus on showing employees his career ladder. If an employee sees that his

current job offers a path towards their future career aspirations, then they are likely to stay longer

in the company. Therefore, managers should play the role of career counselors as well.

RETENTION STRATEGIES:

1. Selection:Retention starts up front, in the selection and hiring of the right employees. This

requires not only an assessment of basic job skills, but also an examination of the "softer" issues

of motivation, values, and being able to fit into the organizationfactors that have a powerful

impact on an employee's success and tenure with a company.

2. Leadership:To a great extent, an employee's experience at a company is shaped by his or her

boss. Employees rely on supervisors for everything from communication to promotions and

rewards. Not surprisingly, a number of studies show that ineffective supervisorsthat is, "bad

bosses"are the largest single factor driving employee turnover. Companies need to select theright people for supervisory positions, and then offer them development opportunities to make

sure they continue to enhance their leadership and communication skills.

3. Professional growth: Today's employees know that a successful career depends on constant

learning and on picking up skills and experience that will make them more employable in the

open market. That means that access to ongoing training and development is important to them,

and a strong incentive to stay with a company. This is a fundamental paradox of employee

retention: By preparing people to leave, a company can actually encourage them to stay.

4. Meaningful work and ownership:People need to know they are making a difference and

being effective in their jobs. Expectations and responsibilities need to be clearly defined, so that

employees can understandtheir roles, and see how their jobs are linked to the organization's

overall success. Employees must also be involved in determining how work is done, so that they

have a sense of ownership and an opportunity to contribute to improvements in the company's

performance.

5. Recognition and rewards:In addition to salary and similar compensation, people appreciate

and respond to alternative forms of acknowledgement, such as dinners, awards, comp time, and

so forth. To be effective, such recognition should be clearly tied to achievement, and encourage

the desired behavior in individuals or teams.

6. Culture and environment: It may seem obvious that employees will tend to stay with an

organization that makes them feel comfortablewhere stress is minimized and they feel valued

and respected. However, too many companies still operate with a culture based on control and

fear, rather than one that provides well-defined direction and values, and emphasizes care for

customers and employees alike.


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CONCLUSION

Doing my sip in L&T Bhubaneswar, was just a dream comes true for me. I had

learned many things which I was totally unaware of that. This all happens only

because of the management of

Retention programs often fail because managers do not know and, therefore, do

not act on the most important areas affecting an employees intention to leave.

Across the organizations, individual development and career advancement stand

out as both frequent and critical key drivers of any employees intent to leave.

While the general conclusions across organizations may appear similar, at a

more micro level, the composition and ordering of specific retention key drivers is

unique to each company. In addition, the meaning attached to specific drivers

(e.g., opportunities for personal growth and development) and, therefore, the

actions to be taken may vary by organization.

Before implementing targeted solutions to improve retention, managers need to

determine which factors drive retention in their organization as well as the

meaning of those drivers.

After going through the interaction and filling my questionnaire with the customer,

I came to know many things which the management might be aware but couldnt

pay much attention towards those matters. Those problems I had mention in my

findings.


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BIBLIOGRAPHY

Www.http://en.wikipedia.org/wiki/lntaccessed on 25th aug2011.www.moneycontrol.com/lnt-bhubaneswaaccessed on 21staug2011www.larsentoubro.comaccessed on 25th aug2011company.monsterindia.com/Latin accessed on 23rd aug 2011www.larsentoubro.com/lntcorporate/Default.aspx?res=P_CORPO

RATEaccessed on 23rd aug2011

www.dictonary.refrence.com accessed on 23rd aug2011www.scribid.com accessed on 28th aug2011www.employee-retention-hq.com accessed on 03rd sept2011www.employeeretentionconsulting.com accessed on 02 sept2011www.retentionbenchmarking.com accessed on 5thsept2011www.managementparadise.com accessed on 23rd sept2011
http://en.wikipedia.org/wiki/lnthttp://en.wikipedia.org/wiki/lnthttp://en.wikipedia.org/wiki/lnt

my project l&t bbsr

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Transcript of my project l&t bbsr