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Descon Engineering Employee Retention Strategies

Descon Engineering Employee Retention Strategies


 Executive Summary

Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee. Employees today are different. They are not the ones who don’t have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. If they don’t, they would be left with no good employees. A good employer should know how to attract and retain its employees. Most employees feel that they are worth more than they are actually paid. There is a natural disparity between what people think they should be paid and what organizations spend in compensation. When the difference becomes too great and another opportunity occurs, turnover can result. Pay is defined as the wages, salary, or compensation given to an employee in exchange for services the employee performs for the organization. Pay is more than “dollars and cents;” it also acknowledges the worth and value of the human contribution. What people are paid has been shown to have a clear, reliable impact on turnover in numerous studies. Employees comprise the most vital assets of the company. In a work place where employees are not able to use their full potential and not heard and valued, they are likely to leave because of stress and frustration. In a transparent environment while employees get a sense of achievement and belongingness from a healthy work environment, the company is benefited with a stronger, reliable work-force harboring bright new ideas for its growth.


Employee turnover is one of the largest though widely unknown costs an organization faces. While companies routinely keep track of various costs such as supplies and payroll, few take into consideration how much employee turnover will cost them and how much they will spend for motivating them by providing benefits. Employee turnover costs companies 30 to 50% of the annual salary of entry-level employees. Now that so much is being done by organizations to retain its employees, why is retention so important? Is it just to reduce the turnover costs? Well, the answer is a definite no. It’s not only the cost incurred by a company that emphasizes the need of retaining employees but also the need to retain talented employees from getting poached.

Employee Retention & Motivation

Worker shortages continue to escalate. Each and every day good employees quit their employers for better jobs elsewhere. Descon uses Employee retention programs which offer several strategies for reducing turnover. Since people are one of their assets that can literally get up and walk out the door, employee retention programs can be vital in retaining best employees. This program includes the following benefits which are provided to the employees of Descon Engineering limited.

During our visit to Descon, we concentrated on following five things and asked questions from our Host (HR Executive). But first, the HR Executive gave us overview of their firm and what employee retention & motivation is at Descon and how do they manage it.Descon Engineering Employee Retention Strategies

Retention & Motivation involves five major things:

  1. Compensation
  2. Environment
  3. Career Growth
  4. Relationship
  5. Support


Descon makes comprehensive and competitive remuneration plans. The pay package is reviewed annually by the management to ensure it is aligned with market standards and escalating economic factors across the globe. Descon fosters a performance oriented appraisal system that allows employees to earn higher levels of compensation and rewards to value employee contributions.

Career growth

Descon values its high potential employees through Management Evaluation Scheme (MES) that is executed on regular basis. With the help of this comprehensive process, career ladders of employees are developed and succession planning is done to identify future leaders. In addition to this, fresh graduates are developed as a potential resource by planned rotations and mentorship. This includes exposure to project sites based upon guidance from project gurus and working on integrated systems and procedures.

Descon is a mature yet vibrant organization seeking professionals who can add value and become part of the winning team at Descon. Our major focus is on developing professional potential and talents, developing individual competencies, and learning on the job.

Descon provides state of the art facilities for learning and growth to its employees that enable them in becoming true professionals integrating their skills and knowledge with self-identification


It is not about managing retention. It is about managing people. If an organization manages people well, employee retention will take care of itself. Organizations should focus on managing the work environment to make better use of the available human assets.

Organization environment includes:

  • Culture
  • Values
  • Company reputation
  • Quality of people in the organization
  • Employee development and career growth
  • Trust

The organizational environment is so good that some employees want to stay with us just because they like the environment. Especially female workers, they feel very safe and comfortable while working for Descon

Descon provides:
  1. Appreciation for the work done
  2. Ample opportunities to grow
  3. A friendly and cooperative environment
  4. A feeling that the organization is second home to the employee.


Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. The management is sometimes not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. This decreases employee’s interest and he becomes de-motivated. It leads to less satisfaction and eventually attrition.

Respect for the individual: At Descon respect for the individual is the must in the organization.

Relationship with the immediate manager: A manger plays the role of a mentor and a coach. He designs and plans work for each employee. It is his duty to involve the employee in the processes of the organization.

Relationship with colleagues: Promote team work, not only among teams but in different departments as well. This induces competition as well as improves the Relationship among colleagues.

Employee Retention & Motivation (Policies & Practices at Descon)

Provident funds

The provident fund is a compulsory comprehensive social security savings plan which aims to provide the employees with a sense of security and confidence in their old age. The employees in the Descon are provided with the provident fund benefit. Both the employee and the employer contribute in it. Company contributes 12%. The system of giving provident funds in DESCON goes like, 10% is given by the company and 10% is deducted from employee’s salary.

Cost of Living Allowance and adjustments

Employees in the Descon are provided with this benefit which represents periodic base pay increases that based on changes in prices as indexed by the consumer price index. This enables workers to maintain their purchasing power and standard of living by adjusting base pay for inflation. DESCON gives 25% of the basic pay as cost of living allowance.

Transportation Services and Allowances

The employees who do not have their own conveyance and face the problems reaching to the workplace, Descon provides those employees with the pick and drop service that helps bringing employees to the workplace and back home again. This service enables the employees to save money and time. The percentage of conveyance allowance is 25% of the basic pay and they always give transportation services to their employees free of cost.

Those employees who have their own conveyance are provided with the petrol allowances.

House Allowances

DESCON also provide their employees with the house allowances.

Medical Reimbursement

DESCON provide this benefit to its employee in whom an employee is allowed to get reimbursement for the medical expenses incurred by him at a hospital maintained by the employer or a Government approved hospital, the entire amount of reimbursement is tax-free and is not treated as a taxable perquisite. If an employee receives some money for his medical treatment or the treatment of any member of his family or any of his dependent relatives then a sum up to Rs.15, 000 p.a. is not treated as a taxable perquisite.

Medical treatment abroad is also included in this benefit.

Holiday and Medical Leaves: this benefit provides the employees with pay for time when they are not working, such as vacation. Descon provides its employees with 10 casual leaves, 10 sick leaves, and 24 earned leaves.

Insurance Program:

Descon does not offer any insurance program to its employees.

Questions & Answers

  • Could you tell us employee Turnover rate in Descon? And why do you think Descon is not able to retain them?
    • Turnover rate in descon is around 10-12 %. In Descon management try they best to retain them and everyone has access to our C.E.O. Employees can tell their problems and if that can be solved we solve it. But if another employer is offering them salary which Descon cannot give them, then we are not able to do anything
  • Do you think that employees in your organization leave their jobs because they think that their jobs are not of their embedded life interest? If yes then what would be the percentage of this kind of employees? And if no then only the money factor is the job leaving factor? Or any other as the inflation and unemployment is on its peak?
    • Most of all it’s the money which takes our employees. Some other multinationals offer higher salaries to our employees which we are unable to give, o they leave Descon. But we believe who so ever we have trained will sooner or later come back to us.
  • What do you think is the main reason, Descon employees want to stay?
    • I think environment of Descon is the best. I, myself is staying at descon because of its environment.
  • What are the methods of downsizing followed at Descon?
    • At Descon, we don’t do downsizing and has never been done before.
  • When and employee is promoted do you inform all other employees or keep it to management and only that employee?
    • When an employee is promoted an email is sent to all descon employees worldwide as a token of appreciation. Employees who get promotion mostly go to Qatar, Saudi Arabia and Dubai.
  • Do you think a person working on same seat gets bored and wants to change job? What do you do at Descon to avoid this?
    • Yes, while working on same seat for a long time can cause an employee to quit. At descon
      • Job rotation: very strictly followed moved within the department it’s a part of policy. It is done after 5 years and after 3 years it makes you eligible for this.

Employee Retention & Motivation: A Case at Descon

An employee he got promoted to Saudi within 3 years of his job. Descon motivated other employees by telling them that what kind of extra efforts he did so that other employee doesn’t get demotivated.

Other employees were told how he tackled the tough situations and completed his projects. He published many articles on different topics related with company.

After telling this all to other employees, this whole scenario motivated other employees instead of demotivating them.


Retention & motivation is an important concept that has been receiving considerable attention from academicians, researchers and practicing HR managers. In its essence, Retention & motivation comprises important elements such as the need or content, search and choice of strategies, goal-directed behavior, social comparison of rewards reinforcement, and performance-satisfaction. The increasing attention paid towards Retention is justified because of several reasons. Motivated employees come out with new ways of doing jobs. They are quality oriented. They are more productive. Any technology needs motivated employees to adopt it successfully. Several approaches to Retention are available. Mere knowledge about the theories of Retention will not help manager their subordinates. They need to have certain techniques that help them change the behavior of employees. One such technique is reward. Reward, particularly money, is a motivator according to need-based and process theories of Retention. For the behavioral scientists, however, money is not important as a motivator. Task variety helps motivate job holders. Job rotation involves shifting an incumbent from one job to another.

Also Study:

Impact of Employee Retention on Performance of a Company

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