Employee Retention

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Worldwide), the cost of replacing an employee ranges from 29% (non-management) to 46% (management) of the person’s annual salary. Then there are the sunk costs such as induction and training expenses, other administrative people costs incurred on the person, expenses are also incurred when someone else does the person’s job in the interim, leading to the domino effect on employee cost. Subsequently, there is a new hiring cost that on average would be 25% of the annual salary. There is also the probability that the new employee’s salary would be higher. Companies are increasingly mapping employee

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retention and hiring costs and eventually, retention is emerging as a cost-effective tool.

MOST COMMON ANSWERS WHEN ASKED ABOUT LEAVING A JOB?

 The job is not what employee expected to be.

 Lack of opportunities for personal and career development in the organisation.

 Lack of appreciation and recognition.

 Stress from overwork and work-life imbalance.

 Financial consideration.

 Inappropriate organisational culture and work environment.

 Resistance to change.

 For higher education.

 Lack of cordial relations with peers and superiors.

 Job and person mismatch.

 Sexual harassment

WHY IS EMPLOYEE RETENTION IMPORTANT?

Manage Employee Turnover

Employers implement retention strategies to manage employee turnover and attract quality employees into the organisation. Retention programs focus on the relationship between management and their workers. Competitive pay, benefits, employee recognition and employee assistance programs are all a part of a company’s attempt to

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maintain employee satisfaction. Human resources specialists utilise feedback they receive from exit interviews and focus groups to improve employee relations and reduce turnover.

Cost Effective

A company can significantly benefit from employee retention programs because of a direct effect on an employer’s bottom line. High turnover can be very expensive. According to the Society for Human Resources Management, “employee replacement costs can reach as high as 50 to 60 percent of an employee’s annual salary.” Strategies geared towards retaining good workers helps offset employee replacement costs and reduces the indirect costs such as decreased productivity and lost clients.

Maintain Performance and Productivity

Employee retention practices help support an organisation’s productivity. Recruiting and training new employees takes time. An unfilled position means work is not getting done. Even if a position is filled, there is still a learning curve most employees must overcome before their work becomes profitable. Taking the necessary steps to keep current workers satisfied with their roles will ensure productivity is not interrupted.

Enhances Recruitment

Effective retention strategies often begin during the employee recruitment process. Employees are more inclined to remain with a company that fulfils the promises made when their employment offer was extended. Companies that provide a realistic

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view of their corporate environment, advancement opportunities and job expectations to new hires can positively influence employee retention.

Increases Morale

Employees that enjoy what they do and the atmosphere in which they work are more likely to remain employed with their company. Retention strategies are important because they help create a positive work environment and strengthen an employee’s commitment to the organisation. Strategies that target employee engagement, such as team-builders and community involvement, increase company morale and give employees a sense of pride in what they do.

1.2 ABOUT THE SECTOR India’s power sector is one of the most diversified in the world. Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, the hydro and nuclear power to viable non-conventional sources such as the wind, solar, and agricultural and domestic waste. Electricity demand in the country has increased rapidly and is expected to rise further in the years to come. The Government of

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India’s focus on attaining ‘Power for all’ has accelerated capacity addition in the country. Total installed capacity of power stations in India stood at 315,426.32 Megawatt (MW) as of February 28, 2017. An important Electricity Act that came in 2003.

An Act to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity and generally for taking measures conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalization of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally benign policies, constitution of Central Electricity Authority, Regulatory Commissions and establishment of Appellate Tribunal and for matters connected therewith or incidental thereto.

1.3 ABOUT THE ORGANIZATION

Vision

“We will be a profitable consumer-oriented power utility consistent with global standards meeting the expectations of consumers, employees and other stakeholders.”

The core values of the organisation are as follows:

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Core Values

• Customer Happiness – Bring a smile on the face of your customer

• Credibility – Instil trust and confidence with your actions

• Humaneness – Be Caring and Respectful to all

• Execution Excellence – Put your heart and soul into your actions

• Speed – Move ahead of time

• Risk Taking – Dare to go beyond

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