Client Overview
The client, a prominent gold and imitation jewellery retail company, operating five branches in and around Pune, Maharashtra, faced critical human resource challenges that affected its operational efficiency and market competitiveness. The key issues included:
- High attrition rates, peaking at 45%.
- Outdated compensation structures misaligned with market standards.
- Low employee satisfaction levels.
- Communication gaps between management and staff.
- Non-compliance with statutory requirements like PF and ESIC.
- A 40% decline in employee productivity.
To address these challenges, we partnered with the client to overhaul their HR practices and drive meaningful change.
Key Challenges
The client was struggling primarily with employee attrition, reduced employee morale affecting the overall efficiency and productivity of the business, outdated compensation structures that did not align with market standards, leading to talent retention issues and difficulties in competing for skilled employees. Low employee satisfaction and high turnover rates further exacerbated the problem, creating an urgent need for a comprehensive review and overhaul of the HR processes.
Challenges
The complete HR function and operations to this retail client were taken over by us in May 2024, from increasing operational efficiency and close support to tackle their HR challenges. Our initial steps involved identifying improvement areas through surveys and feedback mechanisms to understand the employees’ perspectives.
As we engaged with the staff, it became clear that establishing new policies and a revamped compensation structure posed significant challenges. Understanding employees’ mind-sets and securing their buy-in for the changes was critical but difficult. Our dedicated team worked diligently to develop and implement these new policies, conducting one-on-one conversations with every employee to explain the importance of the changes and how they would benefit both the staff and the organization.
Cherry on the cake was our performance management system implementation defining clear organisation objectives and KRA and linking them with a competitive Incentive structure which made the productivity jump and increase employee morale.
Solutions Implemented
To address the identified challenges, we implemented a range of solutions aimed at streamlining HR processes and enhancing employee satisfaction:
1. Organisation Structuring: understanding the overall business process and the objectives of the organisation a clear structure and reporting matrix. Which included competency mapping and clear job roles and skills.
2. HRMS System Implementation: A Human Resource Management System was introduced to facilitate better management of HR functions.
3.Compensation and compliances: Ensured compliance with mandatory employee benefit schemes, such as the Provident Fund and Employee State Insurance Corporation. Designed a competitive compensation Structure to match the industry standards.
4. One-on-One Employee Engagement: Conducted individualized sessions with employees to clarify their new pay structures and address any concerns. Initiated activities to boost morale and foster a collaborative work environment.
5. Improved Employee Communication: Established clearer communication channels to encourage open dialogue between staff and management.
6. Key Result Areas (KRA) Setup: Defined specific KRAs for different roles to foster accountability and enhance performance, this also clearly explained to them the expectation from their roles, the reporting formats and review mechanism.
7. Streamlined Payroll Processing: Improved payroll functions to ensure timely and accurate salary disbursements.
8. Employee centric policies: Focused on continuous communication with employees to build trust, while implementing disciplinary and other employee policies to bring a standard work culture and set a clear expectation fir employee and employer.
9. Training Programs: Doing the Training need analysis, we launched professional development initiatives to enhance employee skills and career growth which helped the people analyse and improve their efficiency.
10. Feedback Collection: Implemented regular feedback mechanisms to gauge employee sentiments and suggestions for improvement.
11. Medical Insurance Implementation: Currently in progress to provide employees with adequate health coverage.
12. Employee Retention Policy: Developed and put in place focused strategies to improve employee retention.
Results and Outcomes
Over six months, the results were transformative:
- Reduced Attrition Rates
Attrition decreased significantly from 45% to 24%, reflecting the success of trust-building and engagement efforts.
- Increased Employee Satisfaction
Satisfaction scores improved by 35%, as shown in surveys conducted post-implementation.
- Improved Productivity
Employee productivity increased by 40%, as disengagement issues were addressed.
- Compliance Achieved
statutory compliance was fully achieved, mitigating organizational risks. - Improved Workplace Culture
Employees reported feeling more valued and engaged, resulting in a collaborative work environment.
Key Metrics
| Metric | Before Implementation | After Implementation | Improvement |
| Attrition Rate | 45% | 24% | 21% |
| Employee Satisfaction | 50/100 | 85/100 | +35% |
| Employee Productivity | 50% | 90% | +40% |
Conclusion
This case study demonstrates the effectiveness of a holistic approach to HR transformation. By addressing core challenges such as high attrition, low satisfaction, and compliance gaps, we achieved:
- A 21% decrease in attrition rates.
- A 35% improvement in satisfaction scores.
- A 40% productivity boost.
Our partnership with the client resulted in a sustainable HR framework that enhanced organizational efficiency and workplace culture. This success showcases our ability to deliver tailored HR solutions that drive meaningful outcomes for retail organizations and beyond.
