EMPLOYEE BRANDING IS A POWERFUL TOOL FOR EMPLOYEE RETENTION IN THE INDIAN EDUCATIONAL INSTITUTES

A SYNOPSIS SUBMITTED TO THE SHRI JAGDISH PRASAD JHABARMAL TIBREWALA UNIVERSITY, FOR THE DEGREE OF DOCTOR OF PHILOSOPHY
IN

MANAGEMENT

By Surbhi Jain Registration No: 161011315 UNDER THE GUIDENCE OF Dr. Sapna Nadange. (HOD department of Human ResourcesIMCOST Mumbai) SHRI JAGDISHPRASAD JHABARMAL TIBREWALA UNIVERSITY VIDYANAGARI, DIST. JHUNJHUNU, RAJASTHAN (INDIA) 333001 Year: 2012

CONTENTS

1. Introduction 2. 3. 4.
5.

Literature survey Objectives Hypothesis Research Methodology/ Planning of work References

6.

INTRODUCTION

In todays world brands not only influence consumers but also company members. Indian Educational Institutes have recently battled with an acute problem: Employee retention. With the dearth of dedicated and experienced academicians, the cost of retention and the rate of attrition have spiraled out of control.

I Surbhi Jain being closely associated with the Indian Educational Institutes, working as an Assistant Professor at Swayam Siddhi Institute of Management and Research, under the expert guidance of Dr. Sapna Nadange, venture forward to explore the causes of high attrition, to study the various theories regarding employee retention and in particular ascertain if Employee Branding is a powerful tool for Employee Retention in Indian Educational Institutes.

As an employee crosses the threshold of employability and becomes desirous to Institutes he/she has the power to choose whom to work for and thus before taking the decision, considers the following: Am I getting what the brand promises? Whats in it for me to choose to work here? Why should I choose to engage?

Any employer brand must answer these questions, to simplify the choices employees make-so they in turn serve willingly.

For employee branding an Institute must have a brand which articulates its promise to the employees, support the strategy, define the behaviour code, define clearly what is expected of them, make the employees aware of the benefits they are entitled to by being a part of that organization, treat its employees with respect, offer growth opportunities, and a good reputation.

This exhaustive statement leads us to believe that employee branding will have a direct and major impact on employee retention.

This study aims to establish the same through extensive study of relevant literature, connected studies and research work regarding the theories of employee retention and interactions with academicians currently working with Indian Educational Institutes.

Employee Branding
Culture and identity are concepts that are similar and interrelated. I consider them together to be essential components to an organizations employee branding. An organizations identity is the aspect of culturally embedded sense-making that is self-focused. It defines who we are in relation to the larger social system to which we belong (Hatch & Schultz, 2000, p. 25. According to Kornberger, referring to identity, brands are identities-inaction that allow stability to be maintained while simultaneously enabling change (Kornberger, 2010, p.87). In regards to culture, he argues that, culture takes as its point of departure the idea that brands are enacted in the behavior of organizational members (Korneberger, 2010, p.87). Culture is visible and audible behavior, norms, the way things are done inside a company, identity, on the other hand, refers to what the company

stands for, mission, vision, name, logo, and how the company wants to be represented. Culture is deeper; its the behavior that after a few weeks, months, or years of being inside a company, employees do not reflect upon. Culture and identity are different concepts, but at the same time they are interconnected and share commonalities, they are both essential to the company brand and they help define what the organization is and what it stands for. Employee branding is a new twist on identity regulation. Employee branding shapes employees behavior so that they project the brand identity of their organizations products through their everyday work behavior. Employee branding is intended to induce employee-brand identification, a psychological connection between the employee and the brand, to provide an unobtrusive, seemingly unproblematic engine for on brand behavior. To introduce organizational scholars to issues involved in employee branding, this study outlines some of the assumptions, tactics and practices of employee branding and their significance and effectiveness in employee retention. I draw on theories from marketing and organizational studies to define employee-brand identification and to develop a preliminary model of how employee branding programs could induce employee-brand identification. In addition, I raise questions about the relationships between the organization, the employee, and the brand that employee branding reinforces, and propose directions for future research.

REVIEW OF LITERATURE

Abernathy et al. (1999) researched on Private Labels and said that Private labels are the retailers creation of a unique product line with strong point of differentiation that distinguishes them from their competitors by selling the product under their own name and license. Ashton et al., (2004) This publication deals with the impact of organizational structures on workplace learning. A qualitative empirical study was carried out to explore the relevance of this model for an understanding of the impact of organizational structures on learning. Baldinger et al. (2002) highlighted on the importance of household penetration for a private label to understand its acceptance, growth and development. Banjamin Laura 2007), Retention is not a simple , fast initiatives that can be solved by quick hit approaches. Employee retention efforst require going back to fundamental rather than looking for an interim measure to invalidate years of negligence Bernick Lavin(2002) give a case study of Alberto-Culver North America, where employee turnover was running at more than twice the industry average, and was halved over the past seven years and the company's ability to attract top people from other firms has increased by focusing on organizational culture. Branham Leigh (2005) On basis of an informal study of IT professionals enumerates the common reasons that corporate retention initiatives fail. These may be (i) too much emphasis on pay , benefits and perks.(ii) blindly following other companies best practices(iii) failure to train managers and hold them accountable. He says that the companies must look into their

individual needs for employee retention so that suitable practices can be obtained to retain their employees.

Chachare , Kartz and Williams (1998) have argued that rather than approach the issue from traditional perspective of turnover, it is more valuable to look at the issue from the positive perspective of employee retention. They suggest that by viewing employees as a capital investment; rather than an expenditure, organizations can take a more positive and strategic role in retaining the employees.

Gonzalez Luis G. and Gurtoviy Ruslan (2006) present a theoretical model of bargaining over deferred compensation. They used the axiomatic Nash bargaining framework to determine the retention role of deferred compensation. The authors investigated the optimal combination of cash and deferred payments that a firm can use to keep qualified personnel to avert bankruptcy. Hameed (2011). The success or failure of the organization depends on employee performance. Therefore, organizations are investing huge amount of money on employee development. Harris Jim (2007) observes that in the war for talent, employee retention is getting harder day after day. He describes ten trends that impact the turnover of tc employees and describes the strategies to be followed to counter them including Global Competition, Entrepreneurial Boom, Free Agent World, Options-Options-Options, Mass Customization, Worker Backlash, and Workplace.

Herman Roger E. (2002) has discussed the benefits of stability of the workforce and goes on to provide various tips for retaining the employees in

the organization These according to him may be (i) Hiring right to begin with (ii) caring about your people (iii) Making training count and (iv) Be out there for your employees. But too low employee retention is also detrimental for an organization.

Hinkin Tothy & Tracey Bruce's (2000), show that even for jobs that do not require very elaborate skills, retention strategy can positively affect the engagement, turnover and ultimately financial performance, especially, for positions that involve interaction with customers.

Johnson (1998) suggests that "although cash and benefits may act in the short term to attract, in the long term, the ongoing development of people will build strong relationships and ultimately strong corporate cultures. Kaiser and Hawk (2001) conducted a study on IT employees and their result concluded that the technical training was the highest rated retention practice as regarded by the IT professionals that influenced them to stay in the organization. Companies have been offering cross training and multitasking training as more business looks harder at increasing their productivity. Legge and Wolfe (2003) give top ten strategies critical to successful retention: 1. be data driven. 2. Develop a profile of your ideal candidate. 3. Develop a compelling value proposition. 4. increase your pool of candidates. 5. Improve your selection process. 6. Invest in employee orientation. 7. Focus on people development. 8. Develop your managers. 9. Run a high-performing organization. 10. Provide employee recognition.

Leslie et al., (1999) The term Teaching Firm is used to describe a company that takes part in employee education. Characteristics of a Teaching Firm

include: 1. a long-term view of the company's activities and goals, 2. a focus on systems, and 3. a perspective that employees are assets.

MacHatten et al (1997) also highlight the promise of the realistic job preview (RJP). Potential managers can make better decisions about their "fit" with a potential employer, thereby improving their career decision making and reducing. the chances of earlier turnover. Mallikarjunan K.(2007) puts forward that employees have to get incentives for every good work done and those incentives should be such that they not only reward the deserving , but also encourage them and even motivate them towards improvement and excellence in fixture performances. Meyer et al (2003) and others have emphasized the importance of providing `realistic job previews' to potential employees. These provides potential new hires with more than just cursory glance at company's operations, providing the candidate with enough information to make a decision about whether it is the right workplace for him/her. Morrissette and Rosa (2003) find very little correlation between quit rates and the introduction of different bundles of alternative work practices in the Canadian manufacturing sector, and they site a number of other studies that support similar conclusions.

Murty (2007) elucidates a few retention practices that need to be practiced in order to encourage employees to stay loyal to the organization including compensation, job designing, job sculpting, nursing social ties, job location, recruiting techniques and creating and enabling organic bureaucracy.

Newton Mark ( 2005), business have to understand the needs and fit the applicant to the job and not the job to the applicant. Management needs to define exactly who the right people are in the company. This can be done through job descriptions, jobs analysis etc but it needs to be done.

Philips and connel ( 2003) have put forward that rewards and recognisation have a reliable and clear impact an employee turnover. They say that a meaningful and credible reward system can be helpful in employee retention and lowering turnover. Priya (2005) Nearly 84% or two-thirds of human resource professionals do not use structured employee development programs. Instead, they rely on informal and generic training processes in their organizations Rajeev et al., (2009) In scientific and research organizations, the training needs facilitator roles and methods have undergone a change necessitated by rapid information and technology boom. Shelton et al., (2001) This research analyzes the significance of employee development programs on employee retention and job satisfaction. Smith (2001) states: Make no mistake about it: all organizations will do a better job by spending more resources on training and development. A business that provides education and training will be more competitive and productive and will win the loyalty of the workforce. Smith ( 2001)attributes 60 percent undesirable turnover to bad hiring decisions on part of the employer. Bad Hiring Decisions may cover a number of considerations including overly hasty selection process that fail to ensure that the job candidate really has the adequate skills and qualifications to do the job for which he/ she is hired. Smith (2007) How is the quality of teaching portfolios being assessed in summative assessment contexts? This question is of special importance in the growing debate on standards and criteria in assessment. Thornthwaite Louise and Sheldon Peter (2004) examined two leading cases of Austrian organisations providing employee Self rostering for work family balance and highlights that such schemes can be successful for managements and employees even in high routine mechanized production environments.

OBJECTIVES
The following objectives are considered: 1. To Explore what is the cause of high rate of attrition of the faculty members in the Indian Educational Institutes 2. To understand the concept of Employee Branding. 3. To study the motivational factors contributing to Employee Retention. 4. To analyze the correlation between employee branding and employee retention. 5. To establish which tools are most powerful for the purpose of employee retention in Indian Educational institutes

HYPOTHESIS
H0 = Employee branding does not play a role in retention of qualified faculty members in the Indian educational Institutes H1 = There is a significant drop in the attrition rate of faculty members due to employee branding.

RESEARCH METHODOLOGY
Sources of Data a) Primary data: An exhaustive and extensive research shall be carried out so as to gather necessary inputs for the creation of this proposed model. The research shall be conducted through a survey using well defined structured questionnaires

b) Secondary data: This shall be gathered from books and publications, magazines, internet, journals and periodicals, etc. Research Area Mumbai City. Analysisof data The Hypothesis would be done using Statistical methods as below: Non Parametric Test - Chi Square Sampling Plan Stratified Random sampling

Sample Size Data shall be collected from Educational institutes in and around Mumbai. No. of Institutes = 20 No. of participants from each Institute = 20 Total sample Size = 20*20 = 400.

REFERENCES

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Chachere, D. R. and Williams, P. M. (1998) Human Resource an Investment

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Harris, J. (2007). "Ten Trends Impacting Employee Retention", In IUP on HRM-Recruitment and Retention. Hyderabad: ICFAI University Press. Hameed A, A Waheed, (2011) Employee Development and Its Affect on Employee Performance A Conceptual Framework International Journal of Business and Social Science, 224: 2(13). Herman Roger E. (2002). "Employee Retention: Your Key to Bottom Line Success". Ideas at Work , Canada. Hinkin, T. and Tracey Bruce, (2000). The cost of turnover ; Putting a price on the learning curve, Cornell hotels and restaurant administration quarterly, 41(3) pp.14-21 Johnson Mike, (1998). "Global Executive Talent Famine Forces Companies To Rethink Their Strategies for Attracting and Retaining Talent", Economic Intelligence Unit in Cooperation with Hewitt Associate, Kaiser, K. and Hawk Stephan (2001). "An Empirical Study on the Recruitment and Retention of IT Personnel", Paper presented at the Decision sciences institute 32nd Annual Meeting Legge, S.Robert and Wolfe, R.Mauree (2003). "Ten Strategies for Improving Call Centre Employee Retention", Legge and Company, LLC. Leslie (1999)Goal Orientation and organizational Commitment as Explanatory Factors of Employees' Mobility" Personnel Review,34(3), pp.331-353. MacHatton, T.Michael , Van Dyke, Thomas and Steiner, Robert (1997)."Selection And Retention of Managers in the US Restaurant Sector", International Journal of Contemporary Hospitality Management, 9(4), pp.155-160.

Mallikarjunan, K. (2007). "Retention through Reward. Management". In IUP on HRM-Recruitment and Retention. Hyderabad: ICFAI University Press. Meyer, J., Topolnytsky, L. Krajewski, H. and Gellatly, Ian. (2003).Best Practices: Employee Retention, Toronto: Tomson -Carswell. Morrissette and Rosa (2003). "Evolving Workplace Series: Innovative Work Practices and Labour Turnover in Canada", Working Paper, Catalogue7l-584-MIE#7, Statistics Canada Murty, R.K. (2007). "Talent Retention: Businesses Gotta Make Work Passionate", in IUP on HRM-Recruitment and Retention. Hyderabad: ICFAI University Press. Newton, M. (2005). "Finding Great People!" Gwinnett Business Journal. Phillips, Jack J. and Adele O. Connell (2003).Managing Employee Retention: A Strategic Accountability Approach. Amsterdam; Boston: Butterworth-Heinemann. Priya, (2005) Employee participation and productivity Labour Economics. 715-740: 11(6). Rajeev P, M S Madan, K Jayarajan, (2009) Revisiting Kirkpatrick s model an evaluation of an academic training course, 272276: 96(2). Shelton, (2001) The impact of organizational structure and practices on learning in the Workplace International Journal Of Training & Development, 4353: 8 Smith, P.Gregory (2001). Here today, Here tomorrow, Chicago: Dearborn Trade Publishing. Smith K, H Tillema,(2007) Use of Criteria in Assessing Teaching Portfolios: Judgemental practices in summative evaluation, scandinavian

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Thornthwaite, L. and Sheldon, Peter (2004). "Employee Self-Rostering for Work-Family Balance- Leading Examples in Austria", Employee Relations, 26 (3), pp. 238