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Employee retention Essay

In these changing times both the employee & employer are under tremendous pressure to perform. There is fierce competition not only in the industry but also across categories. This new liberalized cutting edge technology driven environment has made employee retention mind-boggling. The fast pacing change across the globe has made the new employee & employer relationship irreversible. However all corporations not only in IT sector but also traditional manufacturing sector are attempting to stem attrition. This paper attempts to unravel this paradox & study the various facts that surround this burning issue. There are many tactics and strategies used to retain employees in organizations. The basic purpose of these strategies is to increase employee’s satisfaction, boost employee morale, and achieve retention. Sometimes, retention strategies are not used properly and wrong retention strategies are used. As a result of this, these strategies fail to achieve the desired results.

There are costs associated with employee turnover. The impact of employee turnover on organizations is that it often engenders far-reaching consequences and may jeopardize efforts to attain organizational objectives (Hill and Jones, 2001). In addition, Hill and Jones (2001) indicated that when an organization loses a critical employee, there is a negative impact on innovation, consistency in providing service may be jeopardized, and major delays in the delivery of services to customers may occur. A decline in the standard of service could also adversely affect the satisfaction of internal and external customers and consequently, the profitability of the organization. It is for these reasons that the paper sought to assess retention strategies in organizations and how they affect workers‟ performance. Let us see what “Employee Retention” used to mean

This entails understanding just a little history. The term “employee retention” first began to appear with regularity on the business scene in the 1970s and early ’80s. Until then, during the early and mid-1900s, the essence of the relationship between employer and employee had been (by and large) a statement of the status quo: You come work for me, do a good job, and, so long as economic conditions allow, I will continue to employ you. It was not unusual for people who entered the job market as late as the 1950s and ’60s to remain with one employer for a very long time—sometimes for the duration of their working life. If they changed jobs, it was usually a major career and life decision, and someone who made many and frequent job changes was seen as somewhat out of the ordinary.

What is Employee Retention?

Employee retention refers to the various policies and practices which let the employees stick to an organization for a longer period of time. Every organization invests time and money to groom a new joinee, make him a corporate ready material and bring him at par with the existing employees. The organization is completely at loss when the employees leave their job once they are fully trained. Employee retention takes into account the various measures taken so that an individual stays in an organization for the maximum period of time. The human resource of an organization consists of management and employees.

Human resources are key assets to organizations. Employees have to be motivated to stay in an organization. When employee retention strategies function properly, they increase the commitment of employees towards organizational goals. Thus, if the commitment of employees is won by management through employee retention strategies, it increases job satisfaction, motivates employees to work hard as well as encourages workers to stay in their organization. Hence, employees will be satisfied with their job and be motivated to work hard, thereby leading to improved employee performance. Improvement in employee performance leads to achievement of organizational goals.


Williams and Dreher (1992), wages is the key factor influence in the employee attraction and retention, and play important role in the recruitment process. Highhouse et al, (1999) recommend that only pay is not sufficient to retain the employees. He argues that low pay package will drive workers out the organization but it is not necessary that high pay package bring and keep the workers in the organization. Ultimately, the workers stay in the organization due to others factors i.e. work environment, co-workers behaviour and supervisor support etc. which compel the employee to retain in the organization.

According to Osteraker (1999), the employee satisfaction and retention are considered the Cornerstone for success of organization. Past study divided it into social, mental or physical Dimension. The grouping is based on social contacts at works, characteristics of the work task or the physical and material circumstances associated with work. The retention factors of the mental dimension are work characteristics, employees are retaining by flexible tasks where they can use their knowledge and see the results of their efforts. The social dimension refers to the contact employees have with other people, both internal and external. The physical dimension consists of working conditions and pay. order to retain employees the organization need to gain information about the dynamics that characterized the motivation to work.

According to Smith (2001) money bring the workers in the organization but not necessary to keep them. According to Ashby and Pell money satisfies the employee but it is not sufficient to retain the employee means it is insufficient factor. Money is not considered as primary retention factor (Brannick, 1999). Many organization implement very good employees retention strategy without offering high compensation or pay based retention strategy (Pfeffer, 1998). In such circumstances a wide number of factors are seems for successful retention of employees. The existence of other retention factors cannot be ignored.

Kehr (2004), explains that the implicit retention factors in spontaneous, expressive and pleasurable behaviour and can be divided into three variables; power, achievement and affiliation. Power refers to dominance and social control. Achievement is when personal standards of excellence are to be met or exceeded and affiliation refers to social relationships which are established and intensified. Implicit and explicit retention factors relate to different aspects of the person, but both are important determinants of behaviour

Thompson and Prottas (2005) examined the relationship between employee turnover intention and organization support such as supervisor support, flex time work family culture and co-worker support etc, and they conclude that organization support reduced the employee turnover intention.

Pasewark and Viator (2006) places flexible work arrangement as an very important part of work family support that plays pivotal rule in the retention of employees.

Ihsan and Naeem (2009), indicated that Pharmaceutical sales force rated pay and fringe benefits as the most important retention factor which is supported by the findings of past studies In addition, it indicate that pay and fringe benefits is highly valued by the sales force of all demographic Backgrounds. It’s possible explanation could be that pays and fringe benefits enable salespersons to fulfil their physiological as well as esteem needs. Thus, critical review of the current incentive schemes is required to make them more effective to cater to needs of the sales in both multinational and local pharmaceutical companies to retain their talent workers.

Yanadoria and Katob (2010) investigated the family support effects at workplace and concluded the statistical importance of relationship between work family support and employee retention, the recent research recognize that existence of family support within the organization reduce the turnover intention and help the retention of talented employees in the organization.

According to BC Jobs, in a survey commissioned by their company, only two percent of executives said employees leave because of lifestyle changes, such as relocation. When top performers start jumping ship, it’s most often for professional, not personal, reasons. In another survey commissioned by the same company, executives said that good employees leave primarily because of limited opportunities for advancement (39 percent), unhappiness with management (23 percent) and lack of recognition (17 percent) (BJ JOBS, 2012).

Employee retention techniques go a long way in motivating the employees for them to enjoy their work and avoid changing jobs frequently.

Why do Employees Leave?

Research says that most of the employees leave an organization out of frustration and constant friction with their superiors or other team members. In some cases low salary, lack of growth prospects and motivation compel an employee to look for a change. The management must try its level best to retain those employees who are really important for the system and are known to be effective contributors. It is the responsibility of the line managers as well as the management to ensure that the employees are satisfied with their roles and responsibilities and the job is offering them a new challenge and learning every day.

Let us understand the concept of employee retention with the help of an example: Manisha was a talented employee who delivered her best and completed all her work within the desired time frame. Her work lacked errors and was always found to be innovative and thought provoking. She never interfered in anybody else’s work and stayed away from unnecessary gossips and rumours. She avoided loitering around at the workplace, was serious about her work and no doubts her performance was always appreciable. Kumar, her immediate boss never really liked Manisha and considered her as his biggest threat at the workplace. He left no stone unturned to insult and demotivate Manisha. Soon, Manisha got fed up with Kumar and decided to move on.

Situation 1 – The HR did not make any efforts to retain Manisha and accepted her resignation. Situation 2 – The HR immediately intervened and discussed the several issues which prompted Manisha to think for a change. They tried their level best to convince Manisha and even appointed a new boss to make the things better for her. Situation 1 would most likely leave the organization in the lurch. It is not easy to find an employee who gels well with the system and understands the work. Hiring an employee, training him and making him fit to work in an organization incur huge costs and thus sincere efforts must be made to retain the employee. Every problem has a solution and the management must probe into the exact reasons of an employee’s displeasure. Employees sticking to an organization for a longer time tend to know the organization better and develop a feeling of attachment towards it. The employees who stay for a longer duration are familiar with the company policies, guidelines as well as rules and regulations and thus can contribute more effectively than individuals who come and go.

10 important factors that can impact employee retention in the organization

Shorten the feedback loop- Do not wait for an annual performance review or evaluation to come due to give feedback on how an employee is performing. Most team members enjoy frequent feedback about how they are performing. Shortening the feedback loop will help to keep performance levels high and will reinforce positive behavior. Feedback does not necessarily need to be scheduled or highly structured; simply stopping by a team member’s desk and letting them know they are doing a good job on a current project can do wonders for employee morale and help to increase retention. Offer a competitive compensation package- Any team member wants to feel that he or she is being paid appropriately and fairly for the work he or she does. Be sure to research what other companies and organizations are offering in terms of salary and benefits. It is also important to research what the regional and national compensation averages are for that particular position. You can be sure that if your compensation package is not competitive, team members will find this out and look for employers who are willing to offer more competitive compensation packages.

Balance work and personal life- family is incredibly important to team members. When work begins to put a significant strain on one’s family no amount of money will keep an employee around. Stress the importance of balancing work and one’s personal life. Small gestures such as allowing a team member to take an extended lunch once a week to watch his son’s baseball game will likely be repaid with loyalty and extended employment with an organization. Beware of burnout- staff adequately to reduce the amount of unwanted overtime a team member must work. Some employees enjoy the extra money that accompanies overtime hours, while others would rather spend their time with their families or doing other activities they enjoy.

Burnout can be a leading cause of turnover. Recognize the warning signs and give employees a break when they need it. Provide opportunities for professional development and growth – 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.

The ability to provide input and be taken seriously – everybody has opinions and ideas, some are better than others. However every team member wants to feel that their input is welcome and will be taken seriously without ridicule or condescension. Some of the greatest ideas can come from the most unlikely of places and people. Creating a culture where input is welcome from all level of the organizational chart will help your organization grow and encourage long term employee retention. Management must take the time to get to know team members- it’s not a big surprise that one of the greatest complaints that employees express in exit interviews is a feeling that management didn’t know they existed. Nobody wants to feel like just another spoke in a big wheel. Managers are very busy – everybody is busy, but it is crucial that managers and supervisors take the time get to know the team members who work under them. Learn and remember a team member’s name, what skills and talents they bring to the table, and what their business interests are. The time spent by management getting to know team members is well invested and can eliminate the headaches caused by having to continually hire and re-train new employees. Provide the tools and training an employee needs to succeed- nothing can be more frustrating to an employee than a lack of training or the proper tools to successfully complete his or her duties. You wouldn’t try to build a house without a hammer, so why should an office job be any different? Providing a team member with the tools and training she needs to be successful shows a commitment and investment in that employee and will encourage the team member to stay with the organization.

Make use of a team member’s talents, skills, and abilities- all team members have knowledge, skills, and abilities that aren’t directly related to their job description, but are still useful to an organization. Utilizing a team member’s talents in areas other than their current position will indicate to an employee that management appreciates and recognizes all that an employee has to offer to the organization. This can also provide work variety and helps to break up the everyday grind of work.

Never threaten a team member’s job or income – While threatening an employee with termination or demotion might seem like a surefire way to get the results needed from him or her, doing so will likely cause the employee to leave the organization. Put yourself in the employee’s shoes, what is the first thing you would do if your job was threatened? Odds are you would probably update your resume and start checking for open job postings expecting the worst. If a team member’s performance is not what you had hoped it would be, work with that team member on ways to improve his performance, saving termination only as a last resort.

The Advantages of Employee Retention

Acquiring Talent
When organizations retain their employees, they avoid hiring costs. These are often hidden costs. The cost to post on job boards can be annual or a one-time expense. Agencies charge a percentage of an employee’s annual wages. Larger companies may have staffing departments whose sole responsibility is screening and interviewing talent. Other companies may assign this task to department heads or other individuals in the organization. The time an individual spends screening and reviewing resumes takes him away from his main job responsibilities. The hiring process is risky. Background checks, personality testing and aptitude testing can predict a candidate’s capability, but there is still a risk.

Training and Development
Retaining workers reduces training costs. Recruits need to be trained in business practices specific to the employer’s software, culture and office practices. Training requires one or more current employees to take time away from their job responsibilities to educate the new employee on the organization’s way of doing business. Two or more people are on the company payroll producing the results of one person. In the first 90 days, a new hire costs the company money. When companies retain employees, training dollars can be used to further develop the work force. Long-term associates have the experience to review what has worked before and apply that knowledge to future situations.

Skilled Labour Force
Employment retention develops a strong staff. Working individually or in teams these individuals share knowledge and expertise. The future managers of an organization come from this work pool. These employees are the historians of an organization’s successes and challenges, and provide mentoring to new hires They are committed to the continued growth of the origination and its work force. These individuals have finessed the inner workings of an organization. As they continue to develop their skills, the organization benefits.

Impact on Customer Service
Employee retention has a positive impact on customer service. Turnover brings disruption in customer service, loss of business and possible negative business impacts. An organization’s customer base expects consistent and reliable service. There is a learning curve with new hires and thus the potential for error or poor communication with a client. This can impact business relationships. Long-term employees develop relationships with customers. They know the clients’ preferences and can anticipate future needs. This knowledge develops over time.

Dr. Reddy’s Laboratories Ltd, is a pharmaceutical company based in Hyderabad, Andhra Pradesh, India. The company was founded by Anji Reddy, who had previously worked in the publicly owned Indian Drugs and Pharmaceuticals Limited, of Hyderabad, India. Dr. Reddy’s originally launched in 1984 producing active pharmaceutical ingredients. In 1986, Reddy’s started operations on branded formulations. Within a year Reddy’s had launched
Norilet, the company’s first recognized brand in India. Soon, Dr. Reddy’s obtained another success with Omez, its branded omeprazole – ulcer and reflux oesophagi is medication – launched at half the price of other brands on the Indian market at that time. Within a year, Reddy’s became the first Indian company to export the active ingredients for pharmaceuticals to Europe. In 1987, Reddy’s started to transform itself from a supplier of pharmaceutical ingredients to other manufacturers into a manufacturer of pharmaceutical products. Dr. Reddy’s manufactures and markets a wide range of pharmaceuticals in India and overseas.

The company has over 190 medications, 60 active pharmaceutical ingredients (APIs) for drug manufacture, diagnostic kits, critical care, and biotechnology products. Dr. Reddy’s began as a supplier to Indian drug manufacturers, but it soon started exporting to other less-regulated markets that had the advantage of not having to spend time and money on a manufacturing plant that would gain approval from a drug licensing body such as the U.S. Food and Drug Administration (FDA). By the early 1990s, the expanded scale and profitability from these unregulated markets enabled the company to begin focusing on getting approval from drug regulators for their formulations and bulk drug manufacturing plants in more-developed economies. This allowed their movement into regulated markets such as the US and Europe.

By 2007, Dr. Reddy’s had six FDA plants producing active pharmaceutical ingredients in India and seven FDA-inspected and ISO 9001 (quality) and ISO 14001 (environmental management) certified plants making patient-ready medications – five of them in India and two in the UK. In 2010, the family-controlled Dr Reddy’s denied that it was in talks to sell its generics business in India to US pharmaceutical giant Pfizer, which had been suing the company for alleged patent infringement after Dr Reddy’s announced that it intended to produce a generic version of Atorvastatin, marketed by Pfizer as Lipitor, an anti-cholesterol medication. Reddy’s was already linked to UK pharmaceuticals multinational Glaxo Smithkline.

To become a discovery ruled global pharmaceutical company with a core purpose of helping people lead healthier lives MISSION:
To be first Indian pharmaceutical company that successfully takes its
products from discovery to commercial launch globally VALUES:

In pursuit of purpose of providing affordable and innovative medicines for healthier lives, Dr. Reddy’s will create an environment of innovation and learning while continually reaching for higher levels of excellence. Integrity and Transparency: Dr. Reddy’s will uphold the highest standards of integrity and transparency in all their interactions. Safety: Dr. Reddy’s are committed to providing safe working environments through continuous improvement of their infrastructure, work practices and behaviors.

Quality: Dr. Reddy’s are dedicated to designing quality into their products and processes to delight their stakeholders. Productivity: Dr. Reddy’s strive to achieve more with less through a culture of innovation, continuous improvement and a sustained focus on elimination of waste. Respect for the Individual: Dr. Reddy’s are committed to creating a work environment that encourages diverse perspectives and upholds the dignity of work and of individuals. Collaboration and Teamwork: Dr. Reddy’s will leverage expertise and resources from across their global network to create greater value for their stakeholders. Sustainability: Dr. Reddy’s will create value for all their stakeholders in a manner that respects their natural environment and serves the best interests of the communities in which they live and work.


Dr. Reddy’s board of directors are experts in the diverse fields of medicine, chemistry and medical research, human resource development, business strategy, finance, and economics. They review all significant business decisions and committees appointed by the board focus on specific areas.

G.V. Prasad – Chairman and chief executive officer
Satish Reddy – vice chairman and managing director

1. Dr. Omkar Goswami
2. Mr. Ravi Bhoothalingam
3. Mr. Anupam Puri
4. Dr. J. P.Moreau
5. Ms. Kalpana Morparia
6. Dr. Bruce LA Carter
7. Dr. Ashok Ganguly
8. Mr. Sridhar Iyengar

There are seven board- level committees at Dr. Reddy’s, namely 1. Audit Committee
2. Nomination, Governance & Compensation Committee
3. Risk Management Committee
4. Science, Technology and Operations Committee
5. Shareholders’ Grievance Committee
6. Investment Committee
7. Management Committee
The Management Council is the top tier of Dr. Reddy’s company’s management structure. The management of Dr. Reddy’s has developed and implemented policies, procedures and practices that attempt to translate our company’s vision, mission and purpose into reality. The management also identifies, measures, monitors and controls the risks factors in the business and ensures safe, sound and efficient operation. The Management Council meets every quarter under the chairmanship of the CEO.

Global employee strength of DR. REDDY’S

Fig 1.2.1

Employee turnover

Turnover Rate

Fig 1.2.2

Dr. Reddy’s has dozens of individual and team-based awards that recognizes teamwork, innovation, institution-building, and social Dr. Reddy’s uses extensive structured coaching to encourage continual dialogue between managers and employees to enhance employee engagement. As well, the company has a formal system in which senior managers mentor employees and job mentors serve as mentors in plants.

Respect for the Individual: They are committed to creating a work environment that encourages diverse perspectives and upholds the dignity of work and of individuals.They have begun to have more presence at campuses, they have announced higher rewards for team members on successful referrals of women or differently able professionals to the organisation and they continue to encourage employees to shift within the organisation to different domains and functions through internal job posting opportunities. One of the key attempts of the leadership at Dr. Reddy’s is to enable each one of their talented employees to see the cathedral they are helping to raise, and give them a hand if they run into rough spots. Building this environment to inspire are several elements drawn from global HR experiences and the best of management intuition.

Exit interviews: Exit interviews are conducted with departing employees just before they leave. From the employer’s perspective, the primary aim of the exit interview is to know the reasons for the person’s departure, on the basis that criticism is a helpful driver for organizational improvement. Good exit interviews should also yield useful information about the employer organization, to assess and improve all aspects of the working environment, culture, processes and systems, management and development, etc.


To find out the Factors that make employees retain in the organization for a long period of time. To know the reasons why employees move out of the organization How is Dr. Reddy’s putting efforts in understanding employees? What are the steps taken by the company to retain their employees? What are the important elements that an employee looks in an organization to work?


The scope of this project was to focus on employee retention in DR. Reddy’s Laboratories CTO1 Bollaram, Hyderabad , India (pharmaceutical company). The scope is limited to R0 and R1 employees in the organization. The approx. number is 100. The sample size is 40 employees out of 100 R0 and R1 employees.

No proper inputs were provided by Dr. Reddy’s laboratories CTO1 management. Dr. Reddy’s has instead to limit the questions in a questionnaire to 10. Duration for of the project was just two months.

4. Research Methodology

4.1. Research Design
In this study where we translate a research problem into questionnaires, and then use the questionnaires to create data and also indicated that survey is a process of asking many people the same questions and examining their answers. Hence, respondents were asked the same questions. The aim of a survey is to obtain information which can be analyzed and comparisons made

4.2. Sample Selection
The target population for the study was all employees working in DR. Reddy’s. The list of all the workers in the organizations served as the sampling frame. Out of the sampling frame, the sampling units were identified. The individual persons in the organizations such as R0 and R1 categories of employees were used as sampling units for the study. The study population was junior and senior staffs DR. Reddy’s. The total number of employees in these categories is approximately 100. Out of the 100, 40 respondents were selected to specifically provide information that would be relevant to the study. The sample size was obtained by calculating 40% on the total population.

4.3. Data Collection

Methods for Collecting Primary Data
Questionnaires were the tools used for collecting the primary data for the study. The questionnaires contained closed-ended questions. The questions focused on employee’s work satisfaction in the organization. Questionnaires and face-to-face interviews were effective methods used in collecting the primary data. Questionnaires were useful for the research since I could reach many respondents within a short time. Moreover, the face-to-face interview also enabled me to observe the surroundings and nonverbal communication of respondents. The language that was used for the face-to-face interview was English, Hindi and Telugu.


1. How long have you been employed at Dr. Reddy’s?

Graph 5.1

As per the respondents 0% of employees mentioned that they have been employed at Dr. Reddy’s for less than 1 year, 15% of employees mentioned that they have been employed at Dr. Reddy’s from 1-3 years, 30% of employees mentioned that they have been employed at Dr. Reddy’s from 3-5 years, 35% of employees mentioned that they have been employed at Dr. Reddy’s from 5-10 years and 20% of employees mentioned that they have been employed at Dr. Reddy’s for more than 10 years.

2. What factors have influenced you to remain with Dr. Reddy’s? SCORE 3 as most preferred, 2 as second preferred and 1 s last preferred)

Graph 5.2

As we can see in the above graph, leadership (brand) has got majority score, which is actually retaining the employees in the organization. Benefit packages, working conditions and shift works are also motivate employees in a large scale to retain in DR. Reddy’s. Pay has got the lowest score as per the respondents i.e. 8.75%

3. How satisfied are you with your career development within Dr. Reddy’s?

Graph 5.3

As per the respondents 0% of employees mentioned that they are dissatisfied with the career development at Dr. Reddy’s, 17.5% of employees mentioned that they are somewhat dissatisfied with the career development at Dr. Reddy’s, 27.5% of employees mentioned that they are neutral with the career development at Dr. Reddy’s, 70% of employees mentioned that they are satisfied with the career development at Dr. Reddy’s, 10% of employees mentioned that they are very satisfied with the career development at Dr. Reddy’s

Regarding the promotions and hikes within the organization, majority of the employees seem to be satisfied. This is a good sign, but still Dr Reddy’s laboratories ltd management need to work on this issue as this plays a vital role in retaing employees in the organization for a longer period of time

4. What is your level of satisfaction with the attitude of teamwork within Dr. Reddy’s?

Graph 5.4

As per the respondents 32.5% of employees mentioned that they are neutral towards the level of satisfaction with the attitude of teamwork at Dr. Reddy’s, 67.5% of employees mentioned that they are satisfied with the level of satisfaction with the attitude of teamwork at Dr. Reddy’s and none of the employees choose the rest of the options i.e; dissatisfied, somewhat dissatisfied and very satisfied.

Most of the employees seem to be satisfied with their colleagues which will in turn reduces the internal conflicts between the employees.

5. I feel that my contribution is respected and appreciated by the department.

Graph 5.5

As per the respondents 0% of employees mentioned that they strongly disagree that their contribution is respected and appreciated by the department, 0.05% of employees mentioned that they disagree that their contribution is respected and appreciated by the department, 42.5% of employees mentioned that they are neutral that their contribution is respected and appreciated by the department, 47.5% of employees mentioned that they agree that their contribution is respected and appreciated by the department and 0.05% of employees mentioned that they strongly agree that their contribution is respected and appreciated by the department.

Approximately 50% here agree that their work is appreciated by the department which is a good sign. But Dr Reddy’s laboratories ltd needs to work more in this area to increase these figures in a positive way.

6. I have a comprehensible course for career advancement inside Dr. Reddy’s.

Graph 5.6

As per the respondents 0% of employees strongly disagree that they have a comprehensible course for career advancement inside Dr. Reddy’s, 20% of employees disagree that they have a comprehensible course for career advancement inside Dr. Reddy’s, 57.5% of employees are neutral that they have a comprehensible course for career advancement inside Dr. Reddy’s, 22.5% of employees agree that they have a comprehensible course for career advancement inside Dr. Reddy’s and 0% of employees strongly agree that they have a comprehensible course for career advancement inside Dr. Reddy’s

Coming to career development within the organization employees are not much satisfied and they are on a diplomatic side by answering neutral.

7. The workload placed on personnel is fair and realistic.

Graph 5.7

As per the respondents 0% of employees strongly disagree that the workload placed on personnel is fair and realistic, 7.5% of employees disagree that the workload placed on personnel is fair and realistic, 17.5% of employees are neutral that the workload placed on personnel is fair and realistic, 52.5% of employees agree that the workload placed on personnel is fair and realistic and 22.5% of employees strongly agree that the workload placed on personnel is fair and realistic.

These figures tell us that Dr Reddy’s laboratories ltd is a friendly environment to work with, where there is no work pressure.

8. Have you ever considered leaving Dr. Reddy’s?

Graph 5.8

As per the respondents 32.5% of employees mentioned that they considered leaving Dr. Reddy’s and 67.5% of employees mentioned that they never considered leaving Dr. Reddy’s.

It’s a good sign were approximately 70% of the employees are not considering to leave Dr Reddy’s laboratories ltd.

9. If your answer was yes to the previous question; what would be the reasons? Previous question (Have you ever considered leaving Dr. Reddy’s?)

Graph 5.9

We can notice as majority of the employees i.e. 48.75% of employees want to leave the organization for better pay and benefits. Better opportunities and relocation are also playing a vital role in employees leaving the organization. Only 6% of employees feel there is no proper communication in the organization.


Retention is all about managing people. If an organization manages people well, employee retention will take care of itself. Organization should focus on managing the work environment to make a better use of human resources. As
per the survey, Dr Reddy’s laboratories ltd employees like to work where these are present.

Appreciation for the work done by the employee.
More opportunities to grow within in the organization.
A friendly and cooperative environment between the employees. A feeling that the organization is second home to the employees.

Findings regarding Dr. Reddy’s Laboratories

Effective leadership is also motivating them to work with Dr. Reddy’s. Salaries are not up to the expectations of the employees in Dr. Reddy’s. Dr. Reddy’s is having an employee friendly environment. Where employees feel more comfortable while working. Dr. Reddy’s has cross-functional project teams, encourage employees to shift within the organization to different domains and internal job posting opportunities. Dr. Reddy’s SPEAK OUT program is a communication channel open to all employees.

The program is conducted every month by the Senior Managers of the respective locations encourages the employees to open up and discuss any issues be it professional or personal. Dr. Reddy’s REACH OUT program similar to speak out, which encourages employees to use drop boxes to convey their suggestions, raise or highlight any issue which they may not be comfortable to come forward or if they wish to maintain anonymity. Dr. Reddy’s has a team-based award that recognizes teamwork which in turn motivates employees.


Retention has emerged as one of the dominant themes in management studies during the past decade. The goal of this report was to understand the reasons behind employee’s retention in the organization. The report attempts to provide the facts with a better understanding of employees and their needs. The employee demands such as good working conditions and having development opportunities are just two factors to be mentioned. Dr. Reddy’s laboratories should have good communication, hiring management with strong human relation skills, providing growth opportunities and consulting with employees, formally and informally, will strengthen the bond with the organization, but will not guarantee their loyalty. Herzberg, through his motivation-hygiene theory suggests that job satisfaction and job dissatisfaction are produced by different work factors. What makes people unhappy is not what they do but how well they are treated.

Though Dr Reddy’s laboratories ltd is doing a great job it can still improve its working conditions to have work satisfaction in the employees and to retain them for a longer period of time. Dr. Reddy’s management can provide support in the form of work-life balance. Work life balance includes Flexible hours

Alternate work schedules
Dr. Reddy’s management should give little more importance to the Career growth and development of the employee within the organization. A manager plays a role of a mentor, they are the ones who involve employees in the work. So they need to hire managers who can make and maintain good relations with their subordinates. Promoting team work will improve the relationship between employees. This can lead to good and healthy competition and relation between the employees. Management of Dr. Reddy’s can support employees by providing them recognition and appreciation.


1. How long have you been employed at DR.Reddy’s?
1. Less than 1 year
2. 1-3 years
3. 3-5 years
4. 5-10 years
5. More than 10 years

2. What factors have influenced you to remain with Dr. Reddy’s? ( SCORE 3 as
most preferred, 2 as second preferred and 1 s last preferred) 1. ___ Pay
2. ___ Benefit Package (Health Insurance, ect.)
3. ___ Promotional Opportunities
4. ___ Work hours/Shift work
5. ___ Loyalty to community
6. ___ Team culture/peer relations
7. ___ Working conditions( i.e. Safety)
8. ___ Leadership (Dr. Reddy’s only)
9. ___ Training
10. ___ Retirement plan
11. ___ Contribution to the Organization

3. How Satisfied are you with your career development within Dr. Reddy’s? 1. Dissatisfied
2. Somewhat Dissatisfied
3. Neutral
4. Satisfied
5. Very Satisfied

4. What is your level of satisfaction with the attitude of teamwork within Dr. Reddy’s? 1. Dissatisfied
2. Somewhat Dissatisfied
3. Neutral
4. Satisfied
5. Very Satisfied

5. I feel that my contribution is respected and appreciated by the department. 1. Strongly Disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly Agree

6. I have a comprehensible course for career advancement inside Dr. Reddy’s. 1. Strongly Disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly Agree

7. The workload placed on personnel is fair and realistic.
1. Strongly Disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly Agree

8. Have you ever considered leaving Dr. Reddy’s?
1. Yes
2. No

9. If your answer was yes to the previous question; what would be the reasons? (SCORE 3 as most preferred, 2 as second preferred and 1 s last preferred)

1. Pay and benefits ____
2. Better opportunity ____
3. Family reasons ____
4. New challenges ____
5. Relocation ____
6. Leadership ____
7. Poor or no communication ____
8. Job security ____

Essay Topics:

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