Impact of HR Benefits on Employees Retention in Surface Transportation Firms Operating in Tamil Nadu
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2 Vol. 28, n. 6, pp ISSN Impact of HR Benefits on Employees Retention in Surface Transportation Firms Operating in Tamil Nadu Mrs. N. Sumathi Dr. S.Parimala 1 Abstract Till the end of the Tenth century Transportation and Logistics Companies had been successful in attracting skilled workforce and have sufficient staff to manage their businesses effectively due to the effective use of the cultural richness of its workforce. But, recently employees in the Transportation and Logistics had their own issues in terms of heavy work load, deadline, slim down employee benefits etc. Based on this practical issues faced by this industry this study aims to analyse Impact of HR benefits on employees retention in surface transportation firms operating in Tamilnadu. In Coimbatore there are 205 surface Transport Companies in operation. Of these two companies A.B.T and A.R.C operate throughout the state. These two companies that operate throughout Tamilnadu are selected as Research Population. Due to vast spread of these two Transportation Service Providers and difficulties encountered by the researcher in data collection, sample population was restricted to 45 per cent of the total workers working in these two companies. The sample population of the study consists of 650 respondents in middle and low cadres. This study has found that that there exists close association between employee s perception on the HR benefits provided by the Organisation to retain employee and their satisfaction levels, except Relationship with Superiors of their satisfaction levels. Thus, it is suggested that the Logistics Service Providers in general and Road Transport Freight Operators in particular should aim to strengthen inter-personal relationship and relationship between superior and sub-ordinates for retaining their valuable workforce. EERP Classifications: 5S6KD, 28DNP, FE375 Keywords: HR Benefits, Employee s Retention, Transportation Introduction Till the end of the tenth century Transportation and Logistics Companies had been successful in attracting skilled workforce and have sufficient staff to manage their businesses effectively due to the effective use of the cultural richness of its workforce. Compared to other industries, the Transportation and Logistics Industry has increased the rate of female employees across all functions and hierarchy levels more strongly. Small and medium-sized Transportation and Logistics Companies have become preferred employers compared to market leaders. Thus, employees in Transportation Service Assistant Professor (Senior Grade), Department of Aerospace Engineering. Amrita School of Engineering, Amrita Vishwa Vidyapeetham, Coimbatore , Tamil Nadu, India. nsumathi1960@gmail.com 1 Dean, Department of Commerce, Shri Nehru Maha Vidhyalaya, College of Arts and Science, Coimbatore, Tamil Nadu, India. parimalababu@gmail.com 483
3 Impact of HR Benefits on Employees Retention in Surface Transportation Firms Operating in Tamil Nadu Sector have been remaining longer with their employers as compared with other industries. As these service companies perfectly align the personal and career objectives of their entire management staff with overall corporate strategy. Compared to other sectors, it s more desirable/ hip to work in the Transportation and Logistics Industry. But, recently employees in the Transportation and Logistics had their own issues in terms of heavy work load, deadline, slim down employee benefits etc. Additionally, the safety concerns faced by female employees were important. Moreover, Transportation employees like driver faces issues such as increasing fuel cost, unpleasant road conditions and increasing vehicle maintenance cost. On the other hand office level employees / administrative employees dissatisfaction towards their job has been notified as lack of Career Path Development that in turn strongly influences their attrition rates from the Transportation Service Sector. Though, the employees in these sectors are better educated and more qualified than ever before, they cannot raise their voices for the employee welfare/benefits. Moreover, in decision-making Transportation Sector is highly centralized within Trucking Companies that leads to unpleasant working environment. These issues could be considered as the prime reasons for employee turnover. Statement of Problem Organizations make enormous efforts to attract handfuls of employees and sustain them in the organization. In today s business scenario only high salary and designation is not significant for employees to retain them in the organization, but others factors also play an important role in their retention. From literature review it is recognized that Human Resource Management play pivotal role in employee s retention. From, the extensive literature review conducted by the researcher it has been understood that though employee retention is a point of pride reducing turnover is a key goal, and improving employee satisfaction is important at the end. Ironically, some Trucking companies are reluctant to invest in effectively equipping their employee both in terms of monetary, provision or non-monetary benefits and also in ensuring job security, thus, these factors have contributed to heavy employee turnover. Based on the conceptual understanding current study aims to analyse the influences of HR factors on employee retention in surface transportation (Parcel Services) Service Sector, in Tamilnadu. Objectives of the study The study aims to analyse impact of HR benefits on employees retention in Surface Transportation Firms operating in Tamilnadu. Hypothesis of the Study Ho: There exists close association between employee s perception on their HR benefits provided by the Organisation to retain employee and their satisfaction levels. Research Design Based on this concept the research design of the study is framed. The current study is both explorative and descriptive in nature. The study applied judgmental & conveniences sampling techniques for selection of the sample. The researcher has adopted judgmental sampling technique for defining the entire population of surface transport operators (parcel service operators) in Tamilnadu. And researcher also applied convenience sampling techniques for the collection of primary data. The respondents are approached with the support of the surface transportation association and references groups references. In this study only voluntary respondents were included in the survey. In Coimbatore there are 205 surface Transport Companies in operation. Of these two companies A.B.T and A.R.C 484
4 IJADS, Vol. 28, n. 6 (2015) operate throughout the state. These two companies that operate throughout Tamilnadu are selected as Research Population. Due to vast spread of these two Transportation Service Providers and difficulties encountered by the researcher in data collection, sample population was restricted to 45 per cent of the total workers working in these two companies. The sample population of the study consists of 650 respondents in middle and low cadres. Results and Discussion HR management is a strategic and coherent approach to the management of organization s most valued assets, that is people working in the organization, who individually and collectively contribute to the achievement of its organization's objectives. This section of study discusses about the employees perception towards HR practices adhered in their organization. The empirical data discussion reveal that per cent of the road transportation service employees surveyed are male and the rest of per cent of employees in logistics service sector are female. Further, it has been inferred that per cent of employees in logistics service sector are aged between years and per cent of sample populations are degree holders. It was ironic to infer that nearly per cent of employment is working in logistics service sector for the past 6 month to 1 year, whereas only 9.23 per cent of the sample population has years of services experiences to their credit. It is evident from the survey that per cent of employees monthly income ranges between Rs to Rs Majority i.e., per cent of the employees are working in low level management cadre and per cent of respondents are working for National Level Service Providers. Out of 650 respondents surveyed, per cent of sample subjects are working in Large Scale Industries. The table below indicates the employees perception towards the HR practices adhered in their work place. Ho: There exists close association between employee s perception on their HR benefits provided by the Organisation to retain employee and their satisfaction levels. The data indicates in the table 2 shows that probability value of Z values at 5 per cent level establishes good relationship between the variables tested. Therefore, the hypothesis framed stands accepted and it concluded that there exists close association between employee s perception on their HR benefits provided by the Organisation to retain employee and their satisfaction levels, except relationship with Superiors of their satisfaction levels. Findings and Suggestion The Logistics Industry, which is likely to cross the $200 billion figure by 2020 is struggling in terms of inadequate Human Resources having knowledge about Logistics and Supply Chain Management in India. The major reasons for this could be lack of contextual courses and Training Programmes in good institutes, harsh working environment for people working in the sector and above all the relatively lower compensation they get. Lack of adequate supporting infrastructure is a major reason. Further, the focus on adequate training and development of existing workforce and other stakeholders is visible absence. These empirical research findings complement this conclusion, as this study has found that there exists close association between employee s perception on their HR benefits provided by the Organisation to retain employee and their satisfaction levels, except relationship with superiors of their satisfaction levels. Thus, it is suggested that the Logistics Service Providers in general and Road Transport Freight operators in particular should aim strengthen inter-personal relationship between superior and sub-ordinates for retaining their valuable workforce. 485
5 Impact of HR Benefits on Employees Retention in Surface Transportation Firms Operating in Tamil Nadu Table 1: Association between Employee s Perception on the HR Benefits Provided by the Organisation to Retain Employee and their Satisfaction Levels Pairs Variables Mean SD Correlation Pair 1 Person-Organizational Fit Pair 2 Remuneration and Recognition system Opportunities for training and career Pair 3 development.472 Pair 4 Challenging assignments and opportunities Pair 5 Working Environment Pair 6 Leadership Practices Pair 7 Relationship with Superiors Pair 8 Organizational Polices Pair 9 Communication system Organizational Commitment Pair Turnover Intention Pair Level of significance: 5 per cent Table 2: Association between Employee s Perception on their Organization Practices to Retain Employee and their Satisfaction Levels Pairs Mean SD Z Sig Person-Organizational Fit Remuneration and Recognition system Opportunities for training and career development Challenging assignments and opportunities Working Environment Leadership Practices Relationship with Superiors Organizational Polices Communication system Organizational Commitment Turnover Intention Level of significance: 5 per cent 486
6 IJADS, Vol. 28, n. 6 (2015) Conclusion The Road Goods Transport Industry has played a pivotal role in trade and commerce in India especially in the past few decades. Its rising share in relation to the railways is an indication of its popularity. Though the industry is getting popular the Logistics Sectors are believed to be suffering from talent shortage in a major way, both in terms of quality and quantity. Poor working conditions, misappropriate salary structure and poor or non-existent manpower policies have added to the industry s woes creating a poor image of the sector that holds few attractions for those seeking employment. Thus, the author concludes by stating that successful organizations realize by having an effective employee retention plan will help them sustain their leadership and growth in the marketplace. The problem of employee retention in Logistics and Supply Chain Management Industry in India is relatively new and people are still not aware of the career avenues available in this sector. Logistics education has not yet got professional status, and industry is yet to realise fully the importance of education in logistics. Probably, this may be because the industry traditionally employed people with general education rather than people with core skills. In near future this situation has to be changed with better training systems supported with effective Career Development Opportunities, with adequate pay & skill/talent resignation mechanisms and also through enhancement of interpersonal relationship and relationship between superior and sub-ordinates for retaining their valuable workforce. References 1. Daisy ofosuhenekwenin, Stephen Muathe and Robert Nzulwa (2013), The Influence of Employee Rewards, Human Resource Policies and Job Satisfaction on the Retention of Employees in Vodafone Ghana Limited, European Journal of Business and Management, Vol.5, No.12, pp: 13-20, ISSN (Paper) ISSN (Online), 2. JasleenKaur (2011), Talent Crunch: Right education is the panacea, Cargo Connect, July, /~samir/ Cargoconnect.pdf 3. Okeudo G.N. (2012), The Impact of Human Resources Management in Logistic Service Providers and Supply Chain Capabilities: A Case Study. 4. PankajChandra andnimit Jain(2007), The Logistics Sector in India: Overview and Challenges, W.P. No , Indian Institute of Management, Ahmedabad, India, March. 5. Skill gaps in the Indian Logistics Sector (2007): A white paper KPMG in India and Confederation of India. 6. State-of-the-art transport training school Transport Training & Development Institute comes up in Hyderabad city (2013), / press release/transportation/ htm Com / articles /view/ talent-hunt-toacknowledge-urgency-of- logisticindustry 487
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