Compensation In The Form Of Salary Increase Commerce Essay

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Compensation can be in the form of an increase in salary or a bonus. If people feel they are not being rewarded or even considered for an increase, they often consider shifting to some place else where they can receive a higher salary.

A hostile work environment is also one of the major reasons that make employees feel unmotivated. Employees often consider moving when they feel that they are treated unfairly or feel that their work environment is not safe. Instead of confronting the situation that is disturbing them, they avoid it, leading to greater dissatisfaction. This also makes companies unable to retain their employees.

Problem Statement

In this research study, we will focus on the motivating factors which are not being implemented in Ufone due to which the company is facing trouble in retaining its employees

Research Question

What are the motivating factors that will lead to greater employee retention at Ufone?

Rationale of the study

It is vital for us to analyze the significant role played by an organizations capability to hold on to competent employees for developing distinctive competencies for an organization as is essential to develop an understanding of the relationship between the motivation and its ensuing impact on the enthusiasm of the employees to stay with the organization. The fundamental reason behind studying the Human Resource Management Practices (HR) and Employee Retention in relation to level of motivation of employees at Ufone is to evaluate the importance of these aspects for organizations.

This report can be helpful for different organizations and employers who want to be able to retain talented employees but are faced with low employee turnover.

The Telecom industry is expanding vastly in today's world and is currently the 2nd largest sector in Pakistan. In order to understand the sector better, it is imperative to conduct research on telecom related topics as that will also help to increase the revenue generated from this sector and that will, in turn, have a positive impact on the economy.

Naisbitt suggested that motivational implications are very important; most of our economy continues to shift from manufacturing to service and information jobs. In the intense battle to outdo each other, organizations with distinctive competencies do better than their competitors. An organization that wants to surpass others uses every possible mean available in an attempt to gain and maintain a competitive advantage over its competition.

In order to be able to retain their competent employees, all companies want to be able to discover the motivating factors that lead to greater employee retention. The present research focuses on exploring and analyzing the motivating factors that lead to employee retention, which consequentially effects the over all performance of the company.

Research Objective

To investigate factors that lead to employee retention.

To analyze if the working atmosphere plays a significant role in the motivation process

To assess the impact of recognition of work

To analyze the amount of influence training has  when it comes to encouraging the staff

To find out what challenges and bottle necks are preventing Ufone from increasing employee productivity and in retaining staff.

To discover the effect of motivation for employees in their decision to stay with the organization.

To judge whether increased delegation of authority and empowerment gives employees a greater sense of responsibility

To explore if internal and external factor would help increase the motivation process

To analyze the amount of influence that motivation at Ufone has on its employees.

Scope of the study

This study is limited to the motivating factors that would lead to employee retention at Ufone. In this research, primary data is gathered through interviews and questionnaires survey from the employees of Ufone and some data is obtained from sources such as published articles and reports related to employee retention. This report can be helpful for Ufone as it can bring into light the problems and factors that lead to employees feeling unmotivated. This report can also be useful in shedding light on solutions which can help a company, especially Ufone, retain its employees.                         



Motivation, as seen in the business world, is the word that describes the force that drives an individual to work.  It can be explained as the personal drive to act in order to satisfy one's needs. It comes from within an individual. It creates a drive to act, which may be influenced by some external stimulus, such as the work environment. An employee who truly wants to work can be described as being motivated. Employees can usually perform more effectively if they are aware of the factors that strengthen and weaken their motivation. That can also lead them to find more satisfaction in their jobs. Employers also want to know what motivates their employees so that they can encourage continued peak performance (Halloran, 1986).

 A lot of research has been done on the study of motivation and it can be traced back to the writing of the ancient Greek philosophers. Hedonism has given a basic assumption in the prevailing economic and social philosophies of Adam Smith, Jeremy Bentham, and John Stuart Mill who explained motivation in terms of people trying to maximize pleasure and minimize pain.

A significant factor in an organization's capability to attain a sustained and constant competitive advantage over a period of time is employee retention. Companies that are not able to retain their workers face numerous other problems. Being able to retain competent employees is critical to a firm's long term sustained success. Employee retention is extremely serious especially in the engineering and business markets, since such job markets are tight and competition is very intense. The telecommunication sector is also one of the modern day sectors which is faced with intense competition and new emerging markets, leaving no room for error. The main factors in retaining employees include organizational culture, self-esteem of employees, corporate brand identity, intention of employees to remain, the need for achievement and other motivational factors.

Relationships of a company that are developed and encouraged, promote sustained sponsor ship to the business as customers and clients usually do business with a company because of its people. When an employee departs from a company, the relationships that the employee built for the company are cut off, leading to a potential loss in customers.

The cost of turnover increases manifold if employee retention is low. While it is not easy to fully calculate the cost of turnover (including hiring costs, training costs and productivity loss), cost of employee turnover adds hundreds of thousands of money to a company's expenses and it is often quoted by industry experts to be 25% of the average employee salary.

An employee who leaves takes with him precious knowledge about the company, current projects, customers, and past history. It is even more crucial and critical If the employee leaves to go work with a competitor.  A lot of time and money is spent on every employee in anticipation of returns in future and when the employee leaves, the investment is not realized. A good amount of time is lost in hiring a new employee and then training him/her, when an employee leaves. This becomes an unnoticed additional cost to the company. And even after training the new employee, the company cannot guarantee the same efficiency from the new employee. And if the company cannot assure employee retention, the same process will be repeated over and over again unless the company works on retaining its employees.