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A Study on “Employees’ Attitude towards Monetary and Non-Monetary Rewards and Its Effect on Attrition” (With Special Reference to Education Sector) Submitted in partial fulfillment of the requirements of The M.B.A Degree Course of Bangalore University Submitted By SHWETHA R (REGD.NO: 05 XQCM 6090) Under the Guidance and Supervision of Prof. SAVITHA.G.R M.P.BIRLA INSTITUTE OF MANAGEMENT Associate Bharatiya Vidya Bhavan # 43, Race Course Road Bangalore-560001
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Shwetha R.-0583-Employees Attitude Towards Rewards

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Page 1: Shwetha R.-0583-Employees Attitude Towards Rewards

A Study on

“Employees’ Attitude towards Monetary and Non-Monetary Rewards and Its Effect on Attrition”

(With Special Reference to Education Sector)

Submitted in partial fulfillment of the requirements of

The M.B.A Degree Course of Bangalore University

Submitted By

SHWETHA R (REGD.NO: 05 XQCM 6090)

Under the Guidance and Supervision of Prof. SAVITHA.G.R

M.P.BIRLA INSTITUTE OF MANAGEMENT Associate Bharatiya Vidya Bhavan

# 43, Race Course Road Bangalore-560001

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DECLARATION I hereby declare that this dissertation entitled “A Study on Employees’

Attitude towards Monetary and Non-Monetary Rewards and Its Effect

on Attrition - (With Special Reference to Education Sector)” is the

result of my own research work, carried out under the guidance and

supervision of Prof. Savitha.G.R, MPBIM Bangalore.

I also declare that this dissertation has not been submitted earlier to any

Institute/Organization for the award of any degree or diploma.

Place: Bangalore

Date: SHWETHA R

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Acknowledgement

There are some people, who simply by being what they are influence and

inspire us to do things, which we never thought ourselves capable of doing. Among them

are my parents, my teachers and friends to whom I wish to extend my gratitude on the

event of completion of this project.

I wish to extend my deep sense of gratitude to our Principal,

Dr.N.S.Malavalli, Principal, M.P.Birla Institute of management, Bangalore, for allowing

me to do this project.

I am extremely thankful to Prof. Savitha, M.P.Birla Institute of

Management, Bangalore, without whose valuable inputs this project would have been

incomplete.

Finally, I express my sincere gratitude to all my friends and well-wishers

who helped me in doing this project.

Shwetha R

Page 4: Shwetha R.-0583-Employees Attitude Towards Rewards

PRINCIPAL’S CERTIFICATE

I hereby certify that this dissertation entitled “A Study on Employees’

Attitude towards Monetary and Non-Monetary Rewards and Its Effect

on Attrition - (With Special Reference to Education Sector)” is the

result of research work carried out by Shwetha R under the guidance

and supervision of Prof. Savitha.G.R, M P Birla Institute of

Management, Bangalore

Place: Bangalore Date: ( Dr. N. S. Malavalli)

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GUIDE’S CERTIFICATE I hereby certify that this dissertation entitled “A Study on Employees’

Attitude towards Monetary and Non-Monetary Rewards and Its Effect

on Attrition - (With Special Reference to Education Sector)” is a result

of the research work carried out by Shwetha R under my guidance and

supervision.

Place: Bangalore Date: (Prof. Savitha.G.R)

Page 6: Shwetha R.-0583-Employees Attitude Towards Rewards

Table of Contents Chapter No. Contents Page No.

1

Executive summary 1

Introduction

2.1 Introduction to the research topic

2

2.2 Indian Education sector

3

2.3 Background of research study

4

2.4 Problem statement

5

2.5 Justification and significance of the research

5

2.6 Research Objectives

5

2.7 Introduction to Rewards

6

2.8 Introduction to Attitude

7

2

2.9 Effect of Rewards on Retention

8

Review of the Literature

14-22

3.1 Review of the literature

3.2 Source of the literature reviewed

3.3 Relevant portion in literature that has bearing on the current research

3

3.4 Benefits to the Researcher from the review.

Research Design

4.1 Type of research

23

4.2 Research method

23

4

4.3 Research technique 23

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4.4 Data collection sources

23

4.5 Data gathering procedure

24

4.6 Population of the study

24

4.7 Statistical tools

24

4.8 Scope of the study

24

4.9 Limitations of the study

24

4.10 Operational definition of concepts

25

Data Analysis and Interpretation

5.1 Data analysis and interpretation

26

5

5.2 Findings

65

Summary and conclusion

6.1 Conclusion

67

6

6.2 Suggestions and Recommendations

67

Annexure

7.1 Questionnaire 69

7

7.2 Bibliography 72

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List of Charts/ Graphs

Chart No.

Title Page No.

1 Preference for Monetary benefits by the Respondents

27

2 Respondent’s comment on their attitude towards non-monetary rewards

29

3 Preference for non-monetary benefits by the respondents

31

4 Respondent’s liking of job

33

5 Factors indicating job satisfaction

35

6 Impact of compensation on level of motivation

37

7 Factors influencing motivation on job

39

8 In-house recreational facilities provided by Institutes

41

9 Institutions providing additional facilities to faculty members

43

10 Factors influencing increase in attrition rate

45

11 Rate of employee turnover in organizations

47

12 Causes for attrition in Education sector

49

13 Flow of positive attitude from institutions to control attrition

51

14 Measures taken by Educational institutions to control attrition

53

15 Respondents’ preference to measures of controlling attrition

55

16 Faculty members’ response towards continuing their relationship with the institute

57

17 Institutions’ response to improve employees’ attitude on job

59

18 Respondent’s preference for accepting overseas projects provided by the institute

61

19 Counseling facilities provided by the institutions 63

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Chapter 1

Executive summary

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Executive summary

This research titled “A Study on Employees Attitude towards Monetary and Non-

Monetary Rewards and Its Effect on Attrition - (With Special Reference to Education

Sector)” has been done at selected educational institutions of Bangalore. The research has

been a result of recent increase in attrition. The problem is extremely high in the

education sector, with faculties facing problems related to recognition by the institutions.

They prefer changing jobs in return for better non-monetary rewards such as recognition.

This study focuses on employees’ attitude and their interest in job.

Chapters 2 explain the importance of this study in retaining talent at educational

institutions in current competitive world by giving an overview of the employees’ attitude

in education sector. It also explains the objective of the study.

The 3rd chapter contains literature review. Various research outcomes delivered

by some of the research institutes and researchers are studied. This gives a base to the

study conducted further.

4th

chapter concentrate on the design of the research. This research has adopted

survey method to arrive into certain conclusions.

Data analysis and interpretation has been done in chapter 5. This chapter

consolidates the whole data of attitude survey into charts and graphs and is followed by

interpretation and inferences. It also includes the finding of the survey.

Chapter 6 summarizes the conclusions. It also includes certain recommendations

been provided to the institutions in line with their capability and requirements. The last

chapter 7th includes a copy of the questionnaire and bibliography.

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Chapter 2

Introduction

Overview of the chapter

2.1 Introduction to the research topic

2.2 Introduction to Education sector

2.3 Background of research study

2.4 Problem statement

2.5 Justification and significance of the research

2.6 Research Objectives

2.7 Introduction to Rewards

2.8 Introduction to Attitude

2.9 Effect of Rewards on Retention

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2.1 Introduction to the research topic The most important asset of any business is its human family of workers -managers and

employees. Increasing the capabilities and productivity of the staff is simply

smart business management. From the purely humanitarian standpoint, it is also a moral

obligation.

As the economy grows stronger and the range of new work expands, there is a renewed

focus on the importance of attracting and retaining qualified staff. In the scramble to

attract and keep top talent, compensation once again becomes a much-discussed topic for

both employers and employees.

Empirical evidence shows that employee loyalty and factors influencing retention were

often based on the gender, age and income of the respondents:

• Female employees are more interested in a flexible work schedule than their male

counterparts (17 percent vs. 11 percent) and were more likely to respond

positively to "a raise" (52 percent vs. 48 percent); 18 percent of males cited

improved benefits, as did 14 percent of females. Only eight percent of males

identified stock options, as opposed to 17 percent of males in the year 2000

survey. The female response to stock options remained consistent from last year's

survey, at six percent.

• In every age group but those 55 and older, roughly 50 percent placed the highest

value on increased pay. For those 55-to-64, 48 percent cited "a raise," but for

employees over 65, that response dropped dramatically to nine percent.

Interestingly, both the oldest group, the over 65s, and the youngest, the 18-to-24s,

ranked flexible work schedules as their second priority, at 31 and 23 percent,

respectively. Among those ages 35-to-44, improved benefits received the second

highest response, at 23.5 percent annual

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• While household income plays a role in the employee retention debate, that role

isn't always predictable. Of those respondents with household incomes of less

than $25,000, 47.5 percent said more money would influence a decision to stay

with an employer, while 21 percent ranked improved benefits first. Conversely, of

individuals with household incomes in excess of $75,000, 52.5 percent said they

would continue with a current employer if given "a raise," while a scant 11

percent cited improved benefits as their employer's top lure.

People typically believe that compensation is about money, with employee benefits

receiving serious, but secondary, consideration. For that reason, management of

educational institutions tends to concentrate on staying competitive primarily in those

areas. While both are important, salary and benefits should not be a firm’s only

compensation administration consideration.

2.2 Indian Education sector Education accounts for about $3 trillion of the world's economy. The General Agreement

on Trade in Services (GATS), a hotly debated agreement of the WTO (World Trade

Organization), is aimed at increasing trade liberalization internationally, while including

`education' as a service. In absolute terms, India has the third largest number of higher

education enrolments after China and US.

On a close scrutiny of the cause and effect relationship, one can infer that the lack of even

minimal HR initiatives in the education segment is resulting in more serious HR

problems to the industry which, if unattended, may derail the economy’s progress.

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Expenditure on Education in India

The Government expenditure on Education has greatly increased since the First five-year

plan. The Government of India has highly subsidized higher education. Nearly 97% of

the Central Government expenditure on elementary education goes towards the payment

of teachers' salaries.

2.3 Background of research study In Education sector monetary and non-monetary rewards play a vital role. Monetary

rewards consist of basic pay, bonuses etc, and non-monetary rewards consist of

recognition, training facilities, etc. And employees’ attitude towards it is an important

issue. Researching this issue will reduce turnover and attrition rate. Such a background

has resulted in the current research.

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2.4 Problem statement Employee attitude in the corporate sector greatly influences performance, productivity

and motivation. There exists a need to conduct research in order to explore and improve

employee attitude. Hence this study focuses on Education sector and various issues

confronting it. One of them is attrition. The problem is extremely high in education

sector, with faculties facing problems related to recognition by the institutions. They

prefer changing jobs in return for better non-monetary rewards such as recognition.

The problem to address here is – “What is the employees’ attitude towards rewards in

educational institutions and how monetary and non-monetary rewards have an effect on

controlling attrition in the sector?”

2.5 Justification and significance of the research Employee turnover is a leading problem in the corporate world where it has to be tackled

like an emergency. Therefore research in this area becomes very crucial.

2.6 Research Objectives

To study attitudes towards monetary and non-monetary benefits.

To study the factors that motivates employees.

To identify the factors those motivate IT employees to leave the employer.

To study the employee attitude towards their job.

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2.7 Introduction to Rewards A reward is a benefit for performing a given task. It assumes someone in a position to

evaluate and judge goodness. "Rewarding" means providing incentives to and recognition

of employees, individually and as members of groups, for their performance and

acknowledging their contributions to the agency's mission. There are many ways to

acknowledge good performance, from a sincere "Thank You!" for a specific job well

done to granting the highest level, agency-specific honors and establishing formal cash

incentive and recognition award programs.

Concepts like risk and reward, reward and punishment are based on the idea that people

do things, or avoid doing things, due to rewards. In psychology there is evidence that they

do not, and that conditioning and affective factors are much more important than the

rewards or punishments of outsiders.

Goals and Objectives of rewards

Improve performance

Employee Motivation

Enhancing team spirit

Employee retention

Employee development

Monetary Rewards The purpose of monetary incentives is to reward associates for excellent job performance

through money. Monetary incentives include profit sharing, project bonuses, stock

options and warrants, scheduled bonuses (e.g., Christmas and performance-linked), and

additional paid vacation time. Traditionally, these have helped maintain a positive

motivational environment for associates (Kepner, 2001).

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Non-Monetary Rewards The purpose of non-monetary incentives is to reward associates for excellent job

performance through opportunities. Non-monetary incentives include flexible work

hours, training, pleasant work environment, and sabbaticals.

2.8 Introduction to Attitude An attitude can be defined as persistent tendency to feel and behave in a particular way

toward some object. The Nature and Dimensions of Attitudes Attitudes can be characterized three ways. First, they tend to persist unless something is

done to change them. Second, attitudes can fall anywhere along attitude may be

moderately unfavorable. Third, attitudes are directed toward some object about which a

person has feelings (sometimes called "affect") and beliefs. Attitudes can be broken down

into three components; emotional, informational, and behavioral. The emotional

component, the informational component and the behavioral component .

Functions of Attitudes

An understanding of the functions of attitudes is important to the study of organizational

behavior. Based on extensive review of surveys of employers, a recent analysis

concluded "the most important consideration in hiring and the biggest deficit among new

workforce entrants are the attitudes concerning work that they bring with them to their

jobs. Mr. Katz has noted that attitudes serve four important functions in this process.

The Adjustment Functions.

The Ego Defensive Function

The Value Expressed Function.

The Knowledge Function.

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Changing Attitudes Employee attitudes can be changed, and sometimes it is in the best interests of

management to try to do so. Sometimes attitude change is difficult to accomplish because

of certain barriers. After these barriers are identified, some ways of overcoming them and

effectively changing attitudes are examined.

2.9 Effect of Rewards on Retention

Getting people to work for and with the organization as a team-and keeping them

working is never simple. When making a decision to join (or stay with) n organization,

most people sort through and try to prioritize a complex bundle of personal requirements.

This “hierarchy of needs”—as originally conceptualized by Abraham Maslow (as

explained in the illustration)—range from basic survival needs to the utmost

psychological desire for self-actualization. Many of these needs do not relate directly to

either salary or benefits.

Maslow’s hierarchy teaches that when an individual accomplishes each level,

“satisfaction” won’t necessarily be the result. Rather, the individual is likely to start

yearning for achievement at the next-higher level.

For example, once the individual obtains reasonable physical comfort (housing and

clothing) and physical safety (money in the bank, home equity, life insurance), the next

step might be to seek association with a prestigious firm. After reaching that milestone,

the individual might aspire for professional recognition, and so on.

Of the various hierarchical needs described by Maslow, only some have a direct link to

compensation. Clearly, money is a primary factor enabling the individual to meet

physical needs. Money also is key in achieving safety and security, primarily in the form

of adequate insurance and retirement savings. Even the need for prestige and status, as

satisfied by a new BMW or a spacious beach house, requires substantial funding.

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However, over the full range of Maslow’s hierarchy, the majority of other needs are NOT

tied directly to base salary, bonus, or benefits. Rather, most of Maslow’s hierarchy

addresses needs associated with work activity and the workplace itself.

Self-actualization

Teaching professionals place professional considerations well ahead of their bank

balances. One or more of these scenarios are often familiar in the industry:

Competent teaching professionals “chase money” (by changing institutions) only

to return to more modest compensation at a institution where they have greater

opportunity for self-expression.

Talented teaching professionals struggle at close-to-starvation wages to stay

involved in teaching.

Each scenario illustrates the teaching professional’s strong motivation to reach the peak

of Maslow’s hierarchy, i.e., self-actualization. Maslow illuminates the concept thusly:

“A musician must make music, an artist must paint, a poet must write, if

he is to be at peace with himself. What a man can be, he must be. This is

the need we call self-actualization...it refers to man’s desire for

fulfillment…”

While teaching professionals probably have greater need for self-actualization than do

individuals in other careers, self-actualization is a VERY important part of the teaching

professional’s psychology. The idea that “a teacher must teach” has important

implications for compensation administration and management of the overall

organization.

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Money alone will not offset a bad working environment or the lack of true career

opportunity. Employees rarely join (or leave) firms solely because of compensation or

benefits. Using the lessons taught by Maslow’s hierarchy, management of education

institutions must look to the whole institution and employment experience to attract and

retain appropriate staff.

When conditions are right, employees derive non-monetary compensation from those

aspects of the employment experience that provides value or satisfaction without

necessarily delivering a measurable reward. Said differently, non-monetary compensation

is nothing more complicated than “psychic income.” It rewards the employee in some

uniquely psychological way, largely unrelated to salary or employee benefits.

The hierarchy links the search for such opportunities directly to Maslow’s self-

actualization concept. Firms that ignore these needs will tend to have higher turnover and

operating costs and lower motivation and morale.

The essential question about monetary vs. non-monetary rewards is not an “either-or”

question. The best firms endeavor to deliver both. In the end, every employee makes a

subconscious calculation of the two

Monetary income + Psychic income = Total income

When available in reasonable quantities, psychic income helps the teaching professional

see a clear path toward advancement and satisfaction. Most faculties are able to make

rational decisions about the trade-off between professional satisfaction and economic

reward. Ultimately, most teaching professionals will choose the option that provides the

highest “total” income.

We should bear in mind, this is not an invitation to take advantage of the staff—the

management of education institutions should always research the true market value for

faculties and compensate their people fairly. The goal is to deliver and maintain a

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reasonable balance between monetary and psychic income. In the end, institutions that

deliver both monetary income and physic income in a fair, and innovative manner will

attract, retain, and develop quality personnel, keep them satisfied, and foster organization

loyalty.

Above all, the institutions should remember that the employees are people, each one an

important part of the business family-not just a cog in a human machine that goes through

certain muscular motions every day with time out for refueling and maintenance. The

management should remember that their staff has heart and brains, feelings and ideas-and

is made of the same raw materials as them. Their energies are there to be used for their

own good and for the management. Some ways of harnessing these energies are:

1. Seeking and using employee's own ideas.

2. Keeping employees informed.

3. Expressing personal interest in employees.

4. Instilling pride in work well done.

These techniques concern various methods of directing employees toward main objective

- building a profitable business by satisfying customers. As one put these techniques to

use, we will find the job only half begun. The employee still needs more answers to this

very important personal question: "What is there in it for me?" This is not a cynical

question. It is another way of asking: "How much am I worth?” And the management

must provide answers for them as well as for itself.

Management must encourage employee ideas and provide the necessary mechanism for

obtaining them. Suggestion boxes and idea-discussion employee meetings are a couple of

possibilities. Encourage employees to think about problems of the business. Some

excellent ideas for their solution may be forthcoming. The management can carefully

consider all ideas, and if adopted, can commend or reward the giver. If not adopted, a

word of explanation and appreciation can always be given.

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To effectively motivate, a definite system of incentives or rewards is necessary. Such a

system requires a combination of several groups of incentives, the most important of

which are:

1. Recognition-both monetary and non-monetary.

2. Social prestige.

3. Achievement.

4. Self-esteem

Recognition

Recognition-Monetary

The first thought concerning recognition is usually money. Good pay is vital. Good pay is

essential to employee satisfaction and must be carefully considered in all personnel

matters. The employee should not feel that he is underpaid. Pay is the best and most

tangible form of recognition of the employee's worth to the company. Besides actual pay

increases, other form of monetary recognition commonly used is a bonus plan.

Recognition-Non-monetary

Non-monetary recognition can be tangible or intangible. Examples of tangible

recognition: highlighting the key personnel’s’ training, experience, and outstanding

services. Intangible means of recognition are less formal and might be in the form of a

kind word of praise.

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Social Prestige

Present-day management theory says it is no longer sufficient to satisfy only subsistence

needs. Employee retention will be obtained only when his social and self-esteem needs

are supplied on the job. "More money" often becomes an insistent demand when

management is concerned only with satisfying minimum cost-of-living needs. When the

"whole person" is involved within an enterprise, the employee is often content with less

money than he might make elsewhere, simply because he enjoys his work and

experiences self-esteem and accomplishment through his work.

Achievement Ambition falls off when employees do not have enough to do. The only way to solve this

problem is to establish reasonable work output standards for each job. Study and

evaluation of standards and employee worker contribution should result in a reasonable

level of output for each position. Living up to these standards brings a sense of

achievement. Self-Esteem

This group of needs differs from others in that it is concerned with the employee's view

of himself. Examples are the opportunity for recognition, status in the community,

respect, distinction, attention, importance, and appreciation. These are the most difficult

needs to provide.

Thus by observing above data it can be said that employee retention is a burning issue in

education field and there is a positive relation between monetary and non-monetary

rewards with attrition rate. Further part of the report focuses on the empirical evidences

and researches which gives a base to the study.

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Chapter 3

Review of the Literature

Overview of the chapter

3.1 Review of the literature

3.2 Source of the literature reviewed

3.3 Relevant portion in literature that has bearing on the current research

3.4 Benefits to the Researcher from the review

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3.1 Review of the literature

Among the many threats affecting the global workforce over the next few years,

the exit of employees could be the most damaging. Despite millions of unemployed

workers, there is an acute shortage of talent. Enough research has been done by firms to

retain their people. Research suggests that a company’s “stars” are the first ones to be

poached by competitors and thus are less likely to stay.

3.2 Source of Literature 1) Employees Again Saying 'Show Me the Money' - What a difference a year makes,

Research done by Business & Legal Reports, Inc., 2001 -

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

Relevant portion in literature that has bearing on the current Research

While stock options were the hot currency of the New Economy scarcely 12 months ago,

employees today now regard cash - and freedom - as king, according to a new nationwide

survey of working Americans.

In the third annual BridgeGate Report, conducted in February, employee retention is

more likely to be influenced by salary increases than by improved benefits, flexible work

schedules or stock options. A total of 682 part-time and full-time employees were asked

which factors would be most likely to convince them to continue working for their

current employer.

The majority of respondents - slightly more than 50 percent - indicated that "a raise"

would most influence them to remain with their present company, up from the 46 percent

who cited a salary hike in last year's report. By contrast, just 40 percent of those surveyed

placed non-monetary concerns ahead of increased pay.

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This year's survey marks the first time in the three-year history of the Bridge Gate Report

that significantly more respondents said they would remain at a job for higher

compensation, over the combined total of respondents most interested in non-monetary

offerings - benefits, flexibility, stock options and training.

In perhaps the most significant finding of the report, fully one in seven of those polled

could not identify any specific action employers could take to ensure retention, up from

one in 16 two years ago.

"Increasingly, people are again saying, `show me the money,' I'll figure out the rest of my

life on my own," said Dudley Brown, managing director of Bridge Gate. "Half of those in

this year's sample don't buy the idea of assigning responsibility for their career to their

employer. It's like investing - individuals want to take control of their destiny, whether in

the market or with training, benefits and the like. That's especially true now, amid the

growth of enabling services that let you do it yourself."

"Employees don't even know what it would take to get them to stay - how damning for

employers, and bad news for workers as well," Brown said. "What's truly frightening for

companies is simply this: how do you make an employee happy who doesn't even know

what it would take to get them to stick around? They're that disillusioned, and the

percentage is going up every year, more than doubling since our first survey."

"All of this underscores the trend toward a 'free agent nation' and signals a decisive move

away from corporate paternalism," said Brown. "And that in turn raises a huge issue for

employers and employees alike: how do you compete with people who are thinking like

free agents?"

In last year's survey, 46 percent stated they would stay on for a salary increase, with an

equal percentage (in the aggregate) responding to various non-monetary rewards:

employee benefits, flexibility, stock options or training. The inaugural survey, released in

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early 1999, found that less than half the sample (43 percent) named "a raise" as the

primary influencing factor, while 50.5 percent cited non-monetary options.

Employee loyalty and factors influencing retention were often based on the gender, age

and income of the respondents:

• Female employees are more interested in a flexible work schedule than their male

counterparts (17 percent vs. 11 percent) and were more likely to respond

positively to "a raise" (52 percent vs. 48 percent); 18 percent of males cited

improved benefits, as did 14 percent of females. Only eight percent of males

identified stock options, as opposed to 17 percent of males in the year 2000

survey. The female response to stock options remained consistent from last year's

survey, at six percent.

• In every age group but those 55 and older, roughly 50 percent placed the highest

value on increased pay. For those 55-to-64, 48 percent cited "a raise," but for

employees over 65, that response dropped dramatically to nine percent.

Interestingly, both the oldest group, the over 65s, and the youngest, the 18-to-24s,

ranked flexible work schedules as their second priority, at 31 and 23 percent,

respectively. Among those ages 35-to-44, improved benefits received the second

highest response, at 23.5 percent.

While household income plays a role in the employee retention debate, that role

isn't always predictable. Of those respondents with household incomes of less

than $25,000, 47.5 percent said more money would influence a decision to stay

with an employer, while 21 percent ranked improved benefits first. Conversely, of

individuals with household incomes in excess of $75,000, 52.5 percent said they

would continue with a current employer if given "a raise," while a scant 11

percent cited improved benefits as their employer's top lure.

Page 28: Shwetha R.-0583-Employees Attitude Towards Rewards

Purpose

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

Methodology

The method carried out is survey.

Conclusion

Right benefits to employees increases positive attitude of the employees.

Benefits to the Researcher from the review.

The researcher learnt many aspects of employee attitude towards rewards. Literature

review as served as a basis for the current research.

Page 29: Shwetha R.-0583-Employees Attitude Towards Rewards

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

More employers are citing employee retention as the primary objective in putting

together a benefits plan, according to a study by MetLife.

Last year, 55 percent of employers identified employee retention as a top objective in

putting together a benefits plan, up from less than 50 percent in 2003.

In the five years the company has been conducting the study, 2006 marked the first time

employers cited employee retention over controlling health and benefits costs as the top

priority in putting together a benefits plan.

The study also found a correlation between benefits satisfaction and job satisfaction.

Among employees who are "highly satisfied" with their benefits, 80 percent indicated

strong job satisfaction, up from 65 percent in last year's study.

Seventy-two percent of employees who responded to the survey said workplace benefits

were a reason for joining their current employer, and 83 percent said it is a factor for

remaining there.

The survey found that married employees and those with children were more likely to

cite benefits as a top consideration in joining their current employer. Nearly one-third (32

percent) of married employees and 41 percent of young families (parents with children

under six-years-old) stated that workplace benefits were a top consideration for joining

their current employers, while only 10 percent of singles agreed it was a top

consideration for them.

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"While employee retention is a major benefits objective for employers, controlling costs

is a close second," says Ronald Leopold, MetLife vice president. "The strong relationship

between benefits satisfaction and job satisfaction indicates that there is more pressure

than ever on employers to strike this balance and utilize benefits strategically to achieve

both objectives."

The employee survey polled 1,202 full-time employees. The employer survey consisted

of 1,514 interviews with benefits decision-makers at companies.

Purpose

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

Methodology

The method carried out is survey.

Conclusion

Better benefits given to employees increases positive attitude of the employees towards

the job as well as the organization.

Benefits to the Researcher from the review.

The researcher learnt many aspects of impact of benefits on retention of employees.

Literature review as served as a basis for the current research.

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Source of Literature 3) The Power of Positive Feedback, by Bob Nelson, 1997 - http://www.opm.gov/perform/articles/090.asp Relevant portion in literature that has bearing on the current Research

"You get what you reward." Bob Nelson, author of 1001 Ways to Reward Employees,

made this statement during the "TRANSFORMATIONS '97" post-conference workshop,

"Making Effective Use of Employee Recognition." Nelson particularly stressed the value

of positive feedback, immediate recognition, informal recognition, and effective program

design.

Positive Feedback

Immediate Recognition

Informal Recognition

Designing Programs

Positive Feedback. Nelson emphasized positive feedback throughout the workshop and

said supervisors should remember that it can be a motivating force for some employees.

He suggested that when delivering feedback or presenting informal recognition,

supervisors should remember to use the "I" format:

I saw what you did

I appreciate it

It's important

It makes me feel....

Immediate Recognition. Nelson suggested three different methods that supervisors or

managers can use to give their employees immediate recognition:

give the praise or recognition directly to the employee;

give the praise while another employee is present; or

give the praise about the employee to another manager or supervisor.

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Informal Recognition. While on-the-spot praise is an immediate and easy method of

recognizing employees' performance, Nelson noted other ways that employees could be

given informal recognition. He gave several effective, low cost, and easy-to-do examples:

create a wall of fame by displaying photos of achievers, give certificates of appreciation,

present balloons, display computer banners, give award pins, or create a special award.

Nelson said that designers of low-cost awards programs should be creative, the award

should match the achievement, and the award should be given as soon as possible after

the achievement.

Designing Programs. Nelson also gave some suggestions to follow when designing a

recognition program:

Focus on a few areas or goals that will have the most impact. Where should you

direct your recognition efforts?

Involve your target employee group in the design process. Employee input helps

to gain employee buy-in for the new program.

Announce the awards program with a fanfare. Let everyone know about the

program.

Make the program criteria clear. Make sure everyone knows about the program,

its criteria, and the nomination process.

Publicly track the process of the program. Use graphs, charts, and pictures to

show that goals are being met, to track program activity, and to show who its

recipients are.

Have lots and lots of qualifying recipients. Make sure everyone has an equal

chance to receive recognition, not just a select few.

Allow for flexibility and choice of rewards. Have a variety of awards so managers

have several choices.

End or review the program as needed. If the program is not working, it is better to

end it quickly and develop a new one.

Link informal and formal awards. Ensure that informal awards are in line with the

formal awards structure; do so by making informal awards a subset of the formal

awards programs already in place.

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Find ways to sustain the behavior. Once you have rewarded employees for their

efforts, look for other ways to maintain their motivation.

Nelson summarized by saying:

"While money is important to employees, what tends to motivate them to perform and to

perform at higher levels is the thoughtful, personal kind of recognition that signifies true

appreciation for a job well done.

Purpose

The purpose is to highlight the impact of recognition and positive feedback on employee

satisfaction.

Methodology

The method carried out is survey.

Conclusion

Positive feedback and recognition given to employees enhances job satisfaction and

improves employee morale.

Benefits to the Researcher from the review.

The researcher learnt the impact of recognition and positive feedback on employee

satisfaction. Literature review as served as a basis for the current research.

Page 34: Shwetha R.-0583-Employees Attitude Towards Rewards

Chapter 4

Research Design

Overview of the chapter

4.1 Type of research

4.2 Research method

4.3 Research technique

4.4 Data collection sources

4.5 Data gathering procedure

4.6 Population of the study

4.7 Statistical tools

4.8 Scope of the study

4.9 Limitations of the study

4.10 Operational definition of concepts

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

4.1 Type of research

Technique applied in the study is Descriptive research. It includes surveys and fact-

findings of different kinds the major purpose of Descriptive research is description of

the state of affairs as it exists at present.

4.2 Research method

Survey method has been used to do this research.

4.3 Research technique

Questionnaires covering various parameters of employees’ attitude to job and benefits

have been used to do this research.

4.4 Data collection sources METHODOLOGY

PRIMARY DATA SECONDARY DATA

1. Questionnaire 1. Internet

2. Direct Interview 2. Books

3. Articles

Primary data has been collected for the purpose of the survey. Secondary data has

been used to review the literature.

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

4.5 Data Gathering Procedure Data has been gathered by interviewing the employees and through interpreting the

result of questionnaire.

4.6 Population of the study

Sample size: 76

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

4.7 Statistical Tools

Tables, graphs and charts have been used to show the analysis of the statistical data. 4.8 Scope of the study

The project aims to give relevant information about the study and the method

used in the research.

This project also aims to suggest suitable recommendations and suggestions

inferred from the findings.

The study is limited to educational institutions at Bangalore.

4.9 Limitations of the study

The concept is highly abstract and difficult to study

The study is limited to educational institutions at Bangalore.

Time constraint and limited sample size

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

4.10 Operational definition of concepts

Attitude: An attitude can defined as persistent tendency to feel and behave in a

particular way toward some object.

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

them extra benefits.

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Chapter 5

Data Analysis and Interpretation

Overview of the chapter

5.1 Data analysis and interpretation

5.2 Findings

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

5.1 Data analysis and interpretation

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

• Effective training programs

• Elements of motivation

• Mentorship program

• Work environment

• Career growth

• Job challenges

• Freedom and autonomy

• Recognition

• Compensation

Page 40: Shwetha R.-0583-Employees Attitude Towards Rewards

Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Table 1:

Preference for Monetary benefits by the Respondents.

Particulars Percentage

Bonus 30%

Incentives 70%

Preference for Monetary benefits by the Respondents

0%

10%

20%

30%

40%

50%

60%

70%

Bonus Incentives

Monetary Benefits

fig.1

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Interpretation:

From the above data it is seen that majority of the respondents i.e., 70% faculty

members prefer to receive incentives and the rest of 30% respondents are satisfied

with Bonus as a measure of reward in terms of money.

Inference:

The study revealed that there is more demand for incentives as a part of monetary

reward when compared to Bonus and other types of benefits. Most faculty members

prefer to have Incentives from the institute, which would motivate them better than

any other monetary benefits. Hence it can be recommended that providing incentive

can be a strong means of motivating employees.

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Table 2:

Respondent’s comment on their attitude towards non-

monetary rewards.

Particulars Percentage V.Positive 20% Positive 60% Negative 15% V.Negative 5%

Respondent’s comment on their attitude towards non-

monetary rewards

fig.2

20%

60%

5%15%

20%

V.Positive

Positive

Negative

V.Negative

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Interpretation:

From the above data it is seen that majority of the respondents i.e., 60% faculty

members have a positive attitude towards their job; whereas 20% of them have a very

positive attitude. 15% of the respondents tend to possess negative feeling while very

less number of respondents i.e., 5% possess very negative feeling towards their job.

Inference:

By analyzing the above data it can be said that most of the employees in education

sector tend to have positive attitude towards their job and they love their work. As the

above graph shows still there are some people who does not like the job. Hence

proper measures should be taken to change their attitude towards job and to make

them feel comfortable in the workplace. Though the ratio of people possessing

negative attitude is negligible, timely action taken by the institutes can help in

controlling further adverse impacts.

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

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

Particulars Percentage Training Facilities 5% Flexible Working Hours 26% Leave Benefits 30% Recognition 44%

Preference for non-monetary benefits by the respondents

fig.3

5%

25%

29%

41%Training Facilities

Flexible Working Hours

Leave Benefits

Recognition

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Interpretation:

From the above data it is seen that majority of the respondents i.e., 44% of faculty

members ask for recognition from the Institute for their work. The next set of faculty

members i.e., 30% respondents would like to enjoy leave benefits in return to their

work. While the next group presumes non-monetary benefit as having flexible

working hours and the least number of respondents i.e., 5% say that they prefer

training facilities to be given.

Inference:

The study revealed that majority of faculty members demand for recognition by the

institute for the work they do rather than having leave benefits or flexible working

hours or training facilities. Hence it can be said that recognition plays a vital role in

enhancing employee morale and job satisfaction in education sector compared to

other things. However, the educational institutions can also go for providing leave

facilities, flexible working hours as such demands stand immediately next to

recognition. While looking into the data obtained by the study training facilities have

a least noticeable effect on reducing attrition in education sector.

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Table 4:

Respondent’s liking of job.

Particulars Percentage

I Love It Immensely 20%

I Love It 43%

The Job Suits Me 19%

Looking for a Change 18%

Respondent’s liking of job

fig.4

20%

43%

19%

18%

I Love It Immensely

I lLove It

The Job Suits Me

Looking for a Change

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Interpretation: The above data shows that 35% of faculty members love their job. While 18% of the

faculty members love the job immensely, 29% think that the job just suits them.

Another set of respondents who include 18% of faculty members are really looking

for a change in the job as well from he field itself.

Inference:

By analyzing the above data it can be said that most of the faculty members conceive

their job very seriously and they love this work. They feel that work is more important

than other things in life. Some people feel that the job suits them and they want to

make their career in the field. In contrary to this there are few youngsters who are

looking for a change in their job and few among them want to get out of education

sector itself.

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Table 5: Factors indicating job satisfaction

Particulars Percentage Good Compensation 23% Recognition 58% Working Conditions 10% Promotions 9%

Factors indicating job satisfaction

fig.5

0%

10%

20%

30%

40%

50%

60%

70%

GoodCompensation

Recognition WorkingConditions

Promotions

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Interpretation:

The survey conducted in various educational institutions in Bangalore revealed that

recognition is considered to be a strong factor in measuring job satisfaction by a large

number of respondents i.e., 58%. The next set of respondents i.e., 23% faculty

members consider good compensation would lead to job satisfaction. While 10% of

respondents prefer good working conditions, the rest i.e., 9% say promotion would

make them feel more satisfied on job.

Inference:

The study shows that recognition plays a vital role in satisfying employees’ self

actualization needs. A mere recognition by the institute for the work done by them

would make them satisfied and motivate them to work harder. Money matters next to

recognition followed by good working conditions and promotions. Here it is clear that

the non-monetary benefits have greater impact on job satisfaction when compared to

compensation, the only monetary benefit that has relatively less scope in the matter.

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Table 6:

Impact of compensation on level of motivation.

Particulars Percentage

Yes 35%

No 65%

Impact of compensation on level of motivation

fig.6

0%

10%

20%

30%

40%

50%

60%

70%

Yes No

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Interpretation:

The above data shows that majority of respondents i.e., 65% feel that compensation

does not have any direct impact on motivation. While the rest of 35% feel that good

compensation paid by the institute would motivate them to work harder.

Inference:

By looking at the results of the survey we come to know that most of the people think

there is something other than money that would motivate them. This may include non-

monetary benefits, good working environment, work life balance and other factors.

But some people have a perception that compensation directly leads to motivation.

They say – “better the pay, better the work done”. Besides this contradiction

education sector is the only field in which the level of motivation by work alone is

higher than in any other sector.

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Table 7:

Factors influencing motivation on job.

Particulars Percentage

Job itself 54%

Working Environment 41%

Personality Development Programs 5%

Factors influencing motivation on job

fig.7

54%41%

5%

Job itself

Working Environment

PersonalityDevelopment Programs

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Interpretation: From the above data it is seen that majority of the respondents i.e., 54% faculty

members are motivated directly by the job. Availability of good working environment

was preferred by 41% of respondents. The remaining 5% of respondents need

personality development programs to be conducted in order to enhance motivation.

Inference:

The study revealed that teaching job is considered to be the strongest factor that

enhances the level of motivation among employees. Nothing else will motivate the

faculty members as the Job itself does. Though working environment should not be

neglected as it contends immediate next to job. Good working environment provided

by the institute make the employees relax in their work place. However very less

number of people feel that the personality development programs will also contribute

in motivating the employees.

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Table 8:

In-house recreational facilities provided by Institutes.

Particulars Percentage Yes 80% No 20%

In-house recreational facilities provided by Institutes

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes No

fig.8

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Interpretation: The above data shows that 80% of the respondents say that their institution provides

in-house recreational facilities. Only 20% of the respondents said that their institute

does not provide any in-house recreational facilities.

Inference:

The study revealed that most of the institutions in Bangalore have very good

infrastructure. Employees are provided with various in-house recreational facilities.

And thus in current scenario institutions are focusing mainly on satisfying employees

needs. But there are still few institutions, which need to focus on providing

infrastructure to the faculty members. A satisfied employee always contributes to

improve the overall performance of the institution.

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Table 9: Institutions providing additional facilities to faculty members.

Particulars Percentage Yes 78% No 22%

Institutions providing additional facilities to faculty members

fig.9

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Yes No

Page 57: Shwetha R.-0583-Employees Attitude Towards Rewards

Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Interpretation: The above data shows that 78% of faculty members say they can get additional

facilities from their institutions on their request. 22% of the faculty members said that

their institution does not provide any additional facilities.

Inference:

The study revealed that the most of the institutions provide extra facilities to the

faculty members on their request. Such facilities would include organizing a seminar,

connection to Internet; access to good libraries like IIM library, British library, etc.

the respondents who had an access to such facilities were more happy and satisfied

when compared to others. Hence it can be recommended that the institutions can take

certain measure to improve their infrastructure facilities and they can also focus on

providing additional facilities to their employees.

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Table 10:

Factors influencing increase in attrition rate.

Particulars Percentage Higher Pay 25% Good Working environment 30% Better Prospects 45%

Factors influencing increase in attrition rate

fig.10

25%

45%

30%

Higher Pay

Good WorkingEnvironmentBetter prospects

Page 59: Shwetha R.-0583-Employees Attitude Towards Rewards

Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Interpretation: The above data shows that majority of respondents i.e., 45% faculty members say

better job prospects provided by other institutions influence them to leave the present

job. 30% respondents said bad working environment has a greater influence on rising

attrition rate. The rest of 25% feel that higher pay given by other institutions make

them leave their job.

Inference:

By analyzing the above data it can be said that employees have greater attraction

towards better prospects available on job. The above graph reflects the same, as

majority of respondents voted for it. There is equal demand for good working

environment and better pay too. Hence it can be recommended that the institutions

should focus on providing better prospects on job in order to retain its employees.

Providing better working environment and good compensation will also help in

retaining talent in the organization.

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Table 11:

Rate of employee turnover in organizations.

Particulars Percentage Yes 65% No 45%

Rate of employee turnover in organizations

0%

10%

20%

30%

40%

50%

60%

70%

Yes No

fig.11

Page 61: Shwetha R.-0583-Employees Attitude Towards Rewards

Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Interpretation: From the above data it is seen that 65% of respondents feel that there exists employee

turnover in their organization. The remaining i.e., 35% of the respondents feel that

employee turnover is very low in their institution and few among them said such

problem do not exist at all in their institution.

Inference:

Analysis of the above data gives a picture that employee turnover does exist in most

of the educational institutions. The problem of attrition also has its footprint in

education sector and the rate of attrition is rising now a days. But still there are some

institutions that are successful in retaining the talents in their organization. By the

above analysis it can be recommended that the institutions should take timely

measures to prevent employee turnover. If not, in very short period, this may change

the people’s attitude towards education sector.

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Table 12:

Causes for attrition in Education sector.

Particulars Percentage

Lack of Challenging Work 8%

Lack of Job Prospects in Current Institute 43%

Lack of Growth 35%

Others 14%

Causes for attrition in Education sector

fig.12

8%

43%35%

14%

Lack ofChallengingWorkLack of JobProspects incurrent InstituteLack of Growth

Others

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Interpretation: The above data shows that majority of respondents i.e., 43% faculty members think

that lack of good prospects in current job has a direct impact on increasing the

attrition rate in education sector. 35% of the respondents feel that lack of growth

makes the attrition rate to rise. The next set of respondents i.e., 14% feels other factor

such as work life balance, good compensation influence attrition rate to grow. And

rest of 8% respondents feel that lack of challenging work causes attrition in education

sector.

Inference:

The study revealed that lack of job prospects in current institution makes the

employees to change the job. The institutions with all the amenities would attract the

best talent and retain the same. Lack of growth in current job also demotivates

employees and thus contributes in rising attrition rate. Other factors like work life

balance, good compensation also causes attrition. Employees also look for

challenging work. Thus, the institutions should focus on providing better job

prospects in order to prevent attrition in their organization.

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Table 13:

Flow of positive attitude from institutions to control attrition.

Particulars Percentage

Yes 75%

No 25%

Flow of positive attitude from institutions to control attrition

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yes No

fig.13

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Interpretation: From the above data it is seen that 78% of respondents say that their institution takes

certain measures to reduce attrition rate. While 22% of respondents feel that their

institution does not take any measures to prevent attrition.

Inference:

The study revealed that most of the institutions are worried about increasing attrition

rate in their organization and they take timely measures to prevent it. This reflects

management’s care towards their employees. But few institutions will not take any

measures to control attrition in their organization. Inefficient management acts as a

hurdle to implement preventive measures to control attrition rate in their organization.

Thus the organizations should focus on taking certain measures to improve the quality

of management and to reduce attrition rate.

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Table 14:

Measures taken by Educational institutions to control attrition.

Particulars Percentage

Better Work Life 46%

Flexible Timing 20%

Better Pay 34%

Measures taken by Educational institutions to control attrition

0%5%

10%15%20%25%30%35%40%45%50%

Better Worklife

Flexible Timing Better Pay

fig.14

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Interpretation: The above data shows that majority of the respondents i.e., 46% faculty members say

that their institutes focus on providing better work life to their employees as a

measure of controlling attrition. 34% respondents say their institution provides better

compensation to reduce the rate of attrition and 20% of the respondents feel that

flexible working time is used as a measure of controlling attrition rate.

Inference:

Analysis of the above study reveals that providing better work environment is used as

a measure to control increasing rate of attrition in education sector by most of the

institutes. Some organizations feel higher pay would attract the employees and by

receiving good compensation people wish to continue their work in the organization

very less number of institutions consider providing flexible timing to employees

would make them relax in the work place and they would love to continue their work.

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Table 15:

Respondents’ preference to measures of controlling attrition.

Particulars Percentage Flexible Timing 40%

Challenging Work 24%

Better Pay 36%

Respondents’ preference to measures of controlling attrition

0% 10% 20% 30% 40%

FlexibleTiming

ChallengingWork

Better pay

fig.15

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Employees’ Attitude Towards Monetary And Non-Monetary Rewards

M P Birla Institute of Management

Interpretation: From the above data it is seen that majority of the respondents i.e., 40% faculty

members feel flexibility in working time can be adopted by the institutions to reduce

attrition rate. 36% of the respondents think that the institutions can adopt better

compensation policies to reduce attrition rate. The rest of 24% respondents feel

challenging work can be provided by the institutions can act as a better measure in

reducing attrition rate.

Inference:

By analyzing the above data we can say that most of the employees look for flexible

working hours. The institutions that provide the faculties what they need will succeed

in retaining them. As few faculties prefer better money to be paid, they can provide

good compensation as another measure. The management also should facilitate

challenging work to motivate the employees. Thus, employee focused policies can

help the organization to achieve its goals and objectives much easier, much faster and

much better.

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Table 16: Faculty members’ response towards continuing their relationship

with the institute

Particulars Percentage Will Stay 63%Will Leave 37%

Faculty members’ response towards continuing their relationship

with the institute

fig.16

0%

10%

20%

30%

40%

50%

60%

70%

Stay with Institute Leave the Institute

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Interpretation:

From the above data it is seen that majority of the respondents i.e., 63% faculty

members prefer to stay with the institute. While 37% respondents would like to quit

the job.

Inference:

By analyzing the above data it can be said that most of the employees are loyal to the

organization they work for and they would like to continue their relationship with the

institution for further period. But few people said that if given an option they would

leave the institute for various reasons including bad working environment, lack of

recognition for their work and such other factors. Hence the institutions that are facing

such problems should focus on understanding faculty members’ needs and take

necessary measures to overcome it.

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Table 17:

Institutions’ response to improve employees’ attitude on job

Particulars Percentage Yes 65% No 45%

Institutions’ response to improve employees’ attitude on job

0%

10%

20%

30%

40%

50%

60%

70%

Yes No

fig.17

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Interpretation:

The above data shows that 65% of respondents are happy about the fact that their

institution takes necessary measures to improve their attitude on job. But 45% of

respondents said that their institution does not take any steps to improvise its

employees’ attitude towards job and organization.

Inference:

The study revealed that most of the institutions have recognized the importance of

human resource in the organization and thus they are stepping towards analyzing the

employees’ problems. Most of the institutions include certain programs which

enhances employee motivation. This will lead to employee satisfaction and thus result

in retaining talent in the organization. But some institutes have not taking any such

activities. This would lead to a serious issue of increasing attrition rate. Thus, such

institutions should focus on implementing certain programs that would create a sense

of belongingness in the employees towards the organization.

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Table 18: Respondent’s preference for accepting overseas projects provided by

the institute.

Particulars Percentage

Yes 92%

No 8%

Respondent’s preference for accepting overseas projects provided by

the institute

0%10%20%30%40%50%60%70%80%90%

100%

Yes No

fig.18

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Interpretation:

The above data shows that 92% of respondents are happy to accept overseas

education projects or training facilities provided by the institution. But 8% of

respondents do not wish to accept such projects.

Inference:

By analyzing the above data it can be said that most of the faculty members wish to

accept overseas education projects offered by the institutions as they provide them

better exposure. They feel that such projects give them recognition in the society. But

some faculty members avoid such offers, as they do not like going abroad for various

reasons like family issues, health problem and their unwillingness to fly abroad.

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Table 19:

Counseling facilities provided by the institutions.

Particulars Percentage

Yes 60%

No 40%

Counseling facilities provided by the institutions

0%

10%

20%

30%

40%

50%

60%

Yes No

fig.19

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Interpretation:

The above data shows that 60% of respondents say that their institution provides

counseling facilities to them. While 40% say their institution provides no such

facilities.

Inference:

By analyzing the above data it can be said that most of the institutions consider

providing counseling facilities to faculty members help the employees to know their

problems and to deal with them in a proper manner. Few institutions still are not able

to provide any counseling facilities to its faculty members because of various reasons.

The reasons would include management’s negligence towards employees and such

other factors. Such institutions should try to focus on providing counseling facilities

to its employees in order to know their problems.

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5.2 FINDINGS

1. There is more demand for incentives as a part of monetary reward when

compared to Bonus and other types of benefits.

2. Most of the employees in education sector tend to have positive attitude

towards their job and they love their work.

3. Majority of faculty members demand for recognition by the institute for the

work they do. Next comes leave benefits followed by flexible working hours

and training facilities.

4. Recognition plays a vital role in satisfying employees’ self actualization

needs. Money matters next to recognition followed by good working

conditions and promotions.

5. Most of the people think that the factors including non-monetary benefits,

good working environment, work life balance and other factors would

motivate them better than money.

6. Teaching job, by itself, is considered to be the strongest factor that enhances

the level of motivation among employees.

7. In current scenario most of the institutions are focusing mainly on satisfying

employees needs. Employees are provided with various in-house recreational

facilities.

8. Faculty members can also avail additional facilities on request like organizing

a seminar, connection to Internet; access to good libraries like IIM library,

British library, etc.

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9. Highest number of respondents think that better growth prospects is the most

important factor for existing of job. And they also felt that need for increased

responsibility is the most influential factor for quitting a job.

10. The institutions with all the amenities would attract the best talent and retain

the same. While Lack of growth in current job, challenging work, work life

imbalance, unfair compensation demotivates the employees.

11. Most of the institutions are worried about increasing attrition rate in their

organization and they concentrates on taking timely measures to prevent it.

12. Providing better work environment is used as a measure to control increasing

rate of attrition in education sector by most of the institutes.

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

14. Most of the employees are loyal to the organization they work for and they

would like to continue their relationship with the institution for further period.

15. Most of the institutions include certain programs which enhance employee

motivation and thus are responding positively to improve employees’ attitude

on job.

16. Most of the faculty members wish to accept overseas education projects

offered by the institutions as they provide them better exposure.

17. Most of the institutions consider providing counseling facilities to faculty

members help the employees to know their problems and to deal with them in

a proper manner.

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Chapter 6

Conclusion and Recommendations

Overview of the chapter

6.1 Conclusion

6.2 Recommendations

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6.1 Conclusion

Employee turnover rate is increasing in education sector and changing

employees’ attitude towards job is the main reason to it. Faculty members’ need

recognition rather than any other benefits received in terms of money. They wish the

management to focus on solving their problems.

These conclusions indicate that company should identify their critical

employees; understand their needs with regards to career and the environment at work

and must create a satisfying professional life at the organization and also be able to

continuously meet the expectations and needs of these employees. It is through

proactive efforts that the company can reduce the likelihood of losing the critical

employees.

6.2 Recommendations

The study conducted to investigate the interdependence of the variables

affecting employees’ attitude towards job and its effect on attrition rate has led to the

findings and conclusions as presented in the preceding chapters. Based on those

findings the following suggestions have been made. In order to keep employees

satisfied and retain them organisations can adopt the following practices:

Provide better training facilities for employees.

Customized compensation and incentive plans

Provide updated technology and software packages.

Attribute time for development.

Provide challenging work profile and clear career path.

Provide and open work culture facilitating individual growth.

Create a dynamic organisation open to changes.

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Ensure transparency in all processes.

Ensure competitive compensation plan, which is on par industrial standards.

Increase responsibility and quality work.

Avoid indifferent attitude and interference in work.

Improve communication and communication channel.

Provide flexibility in terms of work hours.

Avoid politics, bureaucracy, favoritism that could de-motivate Employees.

Management should adopt pro-active nature rather than reactive nature to

problem solving.

These are practical employee management suggestions, which will bring about

more productive and better-satisfied employees. Use of specific incentives rewards in

monetary and non-monetary forms constitute tangible results for the employee.

Employee who are recognized for their worth to the institute and rewarded

accordingly will multiply this value in increasing profits and the social value of the

organization.

Implementing these suggestions in no way implies lack of leadership. In fact,

such procedures actually increase leadership ability. Each employee is invited to assist

management and is expected to participate in plans and discussions. Thus,

management and employees have similar responsibility in maintaining good

leadership.

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Chapter 7

Annexure

Overview of the chapter

7.1 Questionnaire

7.2 Bibliography

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7.1 QUESTIONNAIRE Name:

Age:

Gender: Male Female

Name of the Institute:

Number of years of experience:

Educational qualification:

Marital Status: Single Married Monthly income:

< 10000 10000 -20000

20000-30000 30000-40000

40000 and above

1. What sort of monetary benefits would you prefer?

Bonus Incentives

2 How do you comment on your attitude towards non monetary rewards?

Very positive Positive

Very negative Negative 3 What sort of non monetary benefits would you prefer?

Training facilities Flexible working hours

Leave benefits Recognition 4 Do you like your job? I love it immensely I love it

The job suits me Looking for a change

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

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6 Does compensation lead to motivation directly?

Yes No

7 What factors according to you motivate you better on your job?

Job itself Working environment Personality development programs

8 Does your institution provide in-house recreational facilities? Yes No

9 Does the management provide additional facilities if requested by the faculties?

Yes No 10 if yes, what kind of facilities would you prefer? …………………………………………………………………………………

11 According to you what factors influence the faculties to leave the institute?

Higher pay given by others Bad working environment

Better prospects 12 Is there employee turnover in your institute?

Yes No 13 What according to you causes attrition in education sector?

Lack of challenge in work Lack of job prospects in Current institute

Lack of growth Others 14 Have any measures been taken by your institute to reduce attrition rate?

Yes No 15 if yes, what kinds of measures

Better work life Flexible timing Better pay

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16 According to you what measures could be taken to reduce attrition rate in your institute?

Flexible timing Challenging work

Better pay 17 Given a chance would you stay with institute or leave it?

Will stay with the institute Leave the institute 18 Does the institute take any measures to improve your attitude on job?

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

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

Yes No 21 How do you think an individual employee’s attitude towards job could be improved? …………………………………………………………………………………………………………………………………………………………………………………… …………………………………………………………………………………………

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7.2 BIBLIOGRAPHY REFERENCES:

• HRM- George T Milovich & John W Boudren

• Human Resource and Personnel Management- K.Aswathappa.

• Organizational Behavior 9th edition - Stephen P. Robbins

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