The Challenges of Sustainable Development in Employee Retention of Large- Scale Industries in West Bengal Through Decent Work Indicators
Saikat Kumar Kar*, Kaushik Banerjee
Brainware University, Kolkata, West Bengal 700125, India
*Corresponding Author’s Email: skkar@ymail.com
Abstract
Purpose - The notion of sustainable growth was introduced at the United Nations Conference on Sustainable Development in Rio de Janeiro in 2012. It was decided that developed countries' actions must support all the aims. The MDGs primarily addressed issues in underdeveloped and poor countries, whereas the SDGs also involve rich countries. MDGs assumed a ‘one-size-fits- all’ approach. The two most important factors of survival — the environment and development – are not adequately integrated. On the 25th of September 2015, the United Nations Sustainable Development Summit accepted the global agenda ‘Transforming Our World: the 2030 Agenda for Sustainable Development’. The purpose of the paper is to identify the proper retention strategy required for large scale industries in West Bengal in transition of change and to find the possibility of finding the scope of application of decent work indicators in large scale industries in West Bengal.
Methodology - A total sample size of 607 participants from 22 large scale organizations in West Bengal is taken. Questions on decent work indicators are laid out on a five —point Likert scale. [5- Strongly Agree; 4-Agree; 3-Neither Agree nor Disagree; 2- Disagree: 1-Stronly Disagree]. The Secondary data had been collected from published and unpublished research works, research journals & reference books, magazines & Periodicals Newspapers, and websites, etc. This approach can be termed as doctrinal method of study.
Results - The primary data reveal that decent work indicators can be used as important criteria for employee retention. This new approach has not been touched by earlier researchers. The objective of decent work is to improve the organization's capacity to handle its internal and external functioning and relationships. All discriminatory practices, unacceptable work conditions and violence including gender-based violence should be abolished. This helps in generating employee trust, belongingness towards organization. These practices are helpful for employee retention in large scale industries. This is growth of informal employment in regular wage category in organized and large-scale industries in West Bengal which is called as ‘formal informalization’.
Practical Application - Labor market uncertainties grew at a rapid pace in developing countries like India. Formal sector jobs had not been created at satisfactory pace and labor force migration took place towards informal sector. The new challenges have evolved due to rapid globalization in India. Frictional unemployment grew at a great pace in large scale industries in West Bengal.
Development of proper decent work system under sustainable development agenda can create protection in the event of changes in economy and society, can reduce fear of change and can improve gainful and productive full employment in an economy.
Keywords: Sustainable Development; Decent Work; Anti-discrimination; Employee Retention; Labor Force Migration
Introduction
Employee retention is taking steps to persuade employees to stay with the company for as long as possible. It is a method in which staff are urged to stay with the company for as long as possible or until the project is completed. Customer happiness, higher product sales, satisfied colleagues and reporting staff, efficient succession planning, and deeply rooted organizational knowledge and learning are all acknowledged benefits of retaining the finest workers. Employee retention is a major issue for large-scale enterprises in West Bengal these days. Employers must hire knowledgeable employees for the job, but retention is much more vital than hiring. Employers who are astute understand the value of retaining top talent. In the Indian context, retaining talent has never been more vital; however, things have altered in recent years. There are enough of prospects for the finest in the business, or even the second or third best, in India's major cities. Organizations can either keep their personnel or lose them to competition in a highly competitive climate where HR managers are poaching from each other. Opportunities can now be limited by geography. Employees stay and leave companies for a variety of reasons. It could be for personal or professional reasons. These factors should be understood by the employer and addressed accordingly. Organizations are becoming more aware of these factors and are implementing a variety of retention. The United Nations Millennium Assembly established a target of decreasing the number of poor people by 2015, compared to 2000. A good work agenda can assist in removing barriers to poverty reduction.
The notion of sustainable growth was introduced at the United Nations Conference on Sustainable Development in Rio de Janeiro in 2012. It was decided that developed countries' actions must support all of the aims. The MDGs primarily addressed issues in underdeveloped and poor countries, whereas the SDGs also involve rich countries. MDGs assumed a "one-size- fits-all" approach. The two most important factors of survival — the environment and development – are not adequately integrated. On the 25th of September 2015, the United Nations Sustainable Development Summit accepted the global agenda "Transforming Our World: the 2030 Agenda for Sustainable Development." The ILO's role in decent work for sustainable development was re-evaluated at the 2016 International Labor Conference, as was the influence of the 2008 Declaration on Social Justice for Fair Globalization.
The goal of decent work is to increase an organization's ability to manage internal and external relationships and functions. Improved interpersonal and group processes, improved communication, improved ability to deal with a variety of organizational problems, improved decision-making processes, more appropriate leadership style, improved skill in dealing with destructive conflict, and higher levels of trust and cooperation among organizational members
are all examples of this. Employee retention can be enhanced by using good work indicators. In this aspect, human resource procedures are quite important. It is imperative that HR managers evaluate the needs of their employees and then design retention tactics based on decent work indicators and long-term objectives.
Methodology
A total sample size of 607 participants from 22 large scale organizations in West Bengal is taken.
Questionnaire design:
A research-designed questionnaire is used as a guiding source for each functional perspectives of inquiry to produce the information required for the research study. Questions on decent work indicators are laid out on a five-point Likert scale [5- Strongly Agree; 4-Agree; 3-Neither Agree nor Disagree; 2- Disagree: 1-Stronly Disagree]. The Secondary data will be collected from published and unpublished research works, research journals & reference books, magazines & Periodicals Newspapers and websites etc. This approach can be termed as doctrinal method of study.
The total sample size is 607 (n=607) taking into consideration 407 workers, 120 supervisors and 80 managers.
Tools for analysis:
Percentage analysis, Mean is applied for data analysis.
Study Objectives
To find whether decent work indicators are satisfactorily applied in large scale industries in West Bengal and to suggest necessary changes in this regard.
To identify the proper retention strategy required for large scale industries in transition of change.
Literature Review
On the 25th of September 2015, the United Nations Sustainable Development Summit accepted the global agenda "Transforming Our World: the 2030 Agenda for Sustainable Development." Goal 8 focuses on inclusive and sustainable economic growth with the goal of full and productive employment and decent work for all, whereas the other SDGs focus on the four pillars of the Decent Work Agenda. The agenda is the member states' primary reference point for the next 15 years.
Some recent studies show that employee retention strategies can be the key considerations for HRM applications. Mutembe & Tirimba (2019) holds misunderstanding associated with workplace can play a vital role in turnover.
Katou (2019) found some economic reason that manipulates the employees to leave organization. On the other hand, Mata, Fuerst & Barney (1995) believed there must be a strong link between the level of job satisfaction & rate of employment. According to the authors job stress results in the employee turnover.
According to Mata, Fuerst & Barney (1995), motivating employees is very important because motivation of every individual is his willingness to unreservedly work hard for high productivity; meaning the employees is willing to use all abilities that has for the sake of his organization by utilizing the available opportunities to accomplish his organization’s mission.
Retention of key employees is critical to the long term health and success of any organization. Dessler & Varrkey (2020) say retaining the best employees, ensures customer satisfaction, increased product sales, satisfied colleague & reporting staff, effective succession planning & deeply imbedded organizational knowledge and learning.
Noe et al. (2006), points out significant relationship between three major knowledge management (KM) design dimensions & the perceived ability of 150 organizations to retain their knowledge workers. KM design initiatives that accelerate knowledge creation, acquisition, & particularly knowledge capture, sharing & retention, are receiving unprecedented levels of investment as a result.
Satpal & Dhillon (2016) in his study find out that work environment, family problems, compensation and relation with supervisors are the prominent factors that may be taken into consideration by an employee while planning for job change.
Research Gaps in Existing Literature
The parameters related to decent work and sustainable development goals were not identified by earlier researchers as tools for employee retention. The following parameters of decent work are identified for revisiting the strategies of employee retention:
Opportunities for work
Freedom of work
Productive work
Equity in work
Security at work
Dignity at work
Promotion of employment
Decent work policies for hours and conditions of work
Promotion of social dialogue and tripartism
Promotion of rights at workplace
Result and Discussion
The total sample size is 607 (n=607) taking into consideration 407 workers (W), 120 supervisors
and 80 managers (M) (refer to table 1(a) & 1(b).
Table 1(a): Company – Bengal Beverages Pvt Ltd.: Responses on Decent Work Indicators
Parameters for Workers
Strongly Agree (5)
Agree (4)
Neither Agree nor Disagree (3)
Disagree (2)
Strongly Disagree (1)
Opportunities for work
Freedom of work
Productive work
Equity in work
Security at work
Dignity at work
Promotion of employment
Decent work policies for hours and conditions of work
Promotion of social dialogue and tripartism
Promotion of rights at workplace
Total Score
Table 1(b): Questions on Decent Work
Decent work indicators
Question 1
Question 2
Question 3
Question 4
Question 5
M
S
W
Opportuni ties for work
Advancing rights at work
Opportunities for remunerative employment
Proper recruitment policy
Promotion and training
Hours of work
4
4
4
M 4
S 4
W 4
M 4
S 4
W 4
M 4
S 4
W 4
M 4
S 4
W 4
M 4
S 4
W 4
Freedom of work
Flexi time
Alternative to job
Freedom of speech
Freedom of association
Freedom of taking decision
5
3
3
M 5
S 3
W 3
M 5
S 3
W 3
M 5
S 3
W 3
M 5
S 3
W 3
M 5
S 3
W 3
Productiv e work
Productivity- enhancing policies
Openness
Proactivity
Authenticity
Autonomy
5
3
3
M 5
S 3
W 3
M 5
S 3
W 3
M 5
S 3
W 3
M 5
S 3
W 3
M 5
S 3
W 3
Equity in work
Absence of discrimination
Fair balance between employers and workers
Equal treatment for same
achievement
Social justice
Trust and
partnership
5
4
2
M 5
S 4
W 2
M 5
S 4
W 2
M 5
S 4
W 2
M 5
S 4
W 2
M 5
S 4
W 2
Security at work
Protection of employment
Social solidarity
Retention strategy
Pro-activeness
Conflict tolerance
4
4
3
M 4
S 4
W 3
M 4
S 4
W 3
M 4
S 4
W 3
M 4
S 4
W 3
M 4
S 4
W 3
Dignity at work
Adequate remuneration
Enhancing technical capabilities
Freedom of contract
Formal equality of employer and employee
Protection to workers’ rights
3
3
2
M 3
S 3
W 2
M 3
S 3
W 2
M 3
S 3
W 2
M 3
S 3
W 2
M 3
S 3
W 2
Promotion of employme nt
Adhocracy culture
Career development
Advancement
Growth
Dynamic leadership
3
3
3
M 3
S 3
W 3
M 3
S 3
W 3
M 3
S 3
W 3
M 3
S 3
W 3
M 3
S 3
W 3
Decent work policies for hours and conditions of work
Working conditions
Opportunities for skill development
Harmonious working relations
Social security policies
Risk tolerance and support
4
2
2
M 4
S 2
W 2
M 4
S 2
W 2
M 4
S 2
W 2
M 4
S 2
W 2
M 4
S 2
W 2
Promotion of social dialogue and tripartism
Scope of
collective bargaining
Right to freedom of association
Openness
Collaboration
Conflict tolerance
3
3
2
M 3
S 3
W 2
M 3
S 3
W 2
M 3
S 3
W 2
M 3
S 3
W 2
M 3
S 3
W 2
Promotion of rights at workplace
Right to work
Right to social security
Right to health care
Right to participate in union activities
Right to collective bargaining
4
3
2
M 4
S 3
W 2
M 4
S 3
W 2
M 4
S 3
W 2
M 4
S 3
W 2
M 4
S 3
W 2
Source: Primary Data
Table 2: Consolidated Responses on Decent Work Indicators of 22 Large Scale Industries
Jutex Industries Pvt Ltd
Kanoria Jute and Industries Ltd
Adhunik Paper Mills Ltd
Supreme Paper Mills Ltd
Bengal Ambuja Cement Ltd
Source: Primary Data
Figure 1: Graphical Presentation of the Obtained Score of Managers, Supervisors, and Workers among 22 Large Scale Industries in India
Interpretation: The mean score of managers is more than standard (taking agree score 4 as standard) but the mean score of supervisors and workers are lower than standard. The supervisors and workers are giving low score to decent work indicators applied in large scale industries (refer to table 2 & figure 1).
Table 3: Relationship between Score of Managers and Score of Workers According to Our Primary DataX=Score of Manager
Y=Score of Workers
x
y
x2
y2
xy
r
40
28
-2.18
-1.59
4.7524
2.5281
3.4662
r=0.709
42
30
-0.18
0.41
0.0324
0.1681
-0.0738
44
32
1.82
2.41
3.3124
5.8081
4.3862
42
33
-0.18
3.41
0.0324
11.6281
-0.6138
44
34
1.82
4.41
3.3124
19.4481
8.0262
40
28
-2.18
-1.59
4.7524
2.5281
3.4662
42
30
-0.18
0.41
0.0324
0.1681
-0.0738
44
32
1.82
2.41
3.3124
5.8081
4.3862
40
28
-2.18
-1.59
4.7524
2.5281
3.4662
42
30
-0.18
0.41
0.0324
0.1681
-0.0738
44
32
1.82
2.41
3.3124
5.8081
4.3862
42
33
-0.18
3.41
0.0324
11.6281
-0.6138
44
34
1.82
4.41
3.3124
19.4481
8.0262
40
28
-2.18
-1.59
4.7524
2.5281
3.4662
42
30
-0.18
0.41
0.0324
0.1681
-0.0738
44
32
1.82
2.41
3.3124
5.8081
4.3862
40
28
-2.18
-1.59
4.7524
2.5281
3.4662
42
30
-0.18
0.41
0.0324
0.1681
-0.0738
44
32
1.82
2.41
3.3124
5.8081
4.3862
42
33
-0.18
3.41
0.0324
11.6281
-0.6138
44
34
1.82
4.41
3.3124
10.97199
8.0262
40
28
-2.18
-1.59
4.7524
22.58531
3.4662
42.18
29.59
55.2728
149.8593
64.5964
Interpretation: As Karl Pearson’s coefficient of correlation values is 0.709. As it is closer to ‘1’, that indicate moderately strong correlation between score of managers and score of workers. In addition, with that the positive value also has shown linear proportional relationship between them (refer to table 3).
Table 4: Relationship between Score of Supervisors and Score of Workers According to Our Primary DataX
Y
x
y
x2
y2
xy
r
32
28
-2.95
-1.59
8.7025
2.5281
4.6905
r = 0.775
35
30
0.05
0.41
0.0025
0.1681
0.0205
36
32
1.05
2.41
1.1025
5.8081
2.5305
38
33
3.05
3.41
9.3025
11.6281
10.4005
36
34
1.05
4.41
1.1025
19.4481
4.6305
32
28
-2.95
-1.59
8.7025
2.5281
4.6905
35
30
0.05
0.41
0.0025
0.1681
0.0205
36
32
1.05
2.41
1.1025
5.8081
2.5305
32
28
-2.95
-1.59
8.7025
2.5281
4.6905
35
30
0.05
0.41
0.0025
0.1681
0.0205
36
32
1.05
2.41
1.1025
5.8081
2.5305
38
33
3.05
3.41
9.3025
11.6281
10.4005
36
34
1.05
4.41
1.1025
19.4481
4.6305
32
28
-2.95
-1.59
8.7025
2.5281
4.6905
35
30
0.05
0.41
0.0025
0.1681
0.0205
36
32
1.05
2.41
1.1025
5.8081
2.5305
32
28
-2.95
-1.59
8.7025
2.5281
4.6905
35
30
0.05
0.41
0.0025
0.1681
0.0205
36
32
1.05
2.41
1.1025
5.8081
2.5305
38
33
3.05
3.41
9.3025
11.6281
10.4005
36
34
1.05
4.41
1.1025
19.4481
4.6305
32
28
-2.95
-1.59
8.7025
2.5281
4.6905
769
651
88.955
138.2782
85.991
34.95
29.59
Interpretation: As Karl Pearson’s coefficient of correlation values is 0.775. As it is closer to ‘1’, that indicate strong correlation between score of supervisors and score of workers. In addition, with that the positive value also has shown linear proportional relationship between them.
As per the analysis is concerned, it has shown a stronger relationship is found between supervisor and workers rather than managers and workers (in terms of ‘r’ value) (refer to table 4).
Analysis of Primary Data: The primary data reveal that decent work indicators can be used as important criteria for employee retention. This new approach has not been touched by earlier researchers. The objective of decent work is to improve the organization's capacity to handle its internal and external functioning and relationships. This would include such things as improved interpersonal and group processes, more effective communication, enhanced ability to cope with organizational problems of all kinds, more effective decision processes, more appropriate leadership style, improved skill in dealing with destructive conflict, and higher levels of trust and cooperation among organizational members. It is the need of the hour that HR managers should identify the needs of the employee and then devises the retention strategies. One strategy does not fit to all as different individuals have different priorities. The earlier researches rightly point out the different strategies for employee retention. They opined that there must be a strong link between the level of job satisfaction & rate of employment (Zachariah & Roopa, 2012). They also opined that two types of retention factors prevail - one at organization level and at job level. Organizational factors are management, pleasant environment, social support and developmental opportunities. Factors at job level are compensation, autonomy, career growth opportunities, work-load and work life balance. This present study also strengthens the points that work atmosphere, autonomy, compensation, career growth opportunities, promotion of social dialogue and tripartism, equity in work, dignity at work and promotion of rights at workplace are crucial factors for employee retention (Wang & Seifert, 2017).
Secondary Data Source Analysis: "India has had tremendous economic expansion in the previous two decades and has emerged as one of the fastest-growing middle-income countries in recent years," according to the "India- Decent Work Country Program, 2018-2022." Between the start of the first Decent Work Country Programme in 2007 and 2016, India's economy grew by 112 percent, more than doubling. Workers leaving agriculture for jobs in growing sectors in metropolitan areas across the country will continue the structural shift. Although the organized sector will absorb more workers, the bulk of these workers will be unable to find job or get social security payments. As a result, formal workers will continue to make up a small fraction of total employed people, while self-employed people will continue to make up a high proportion of all workers. Continued urbanization, widespread low salaries, primarily among casual and rural workers, and persistent pay gaps, as well as rural-urban mobility and out-country migration, will continue to function as strong pull factors. India appreciates the ILO's support to improving its labour law frameworks and policies. The ILO's normative role adds value to India's efforts to achieve the 2030 Agenda, notably in relation to Sustainable Development Goal (SDG) 8: “Promote inclusive and sustainable economic growth, employment, and decent work for all.” Over the last three decades, the National Sample Survey Office's Employment-Unemployment Surveys (EUS) have continuously recorded low and stable unemployment rates in India. This implies that the country's problem is ‘serious underemployment,’ rather than unemployment (Deeb et al. 2020). It also explains why there is so much informality in the economy and 18.9 million individuals working in precarious jobs.” With over 90 per cent of the informal economy still not fully under the ambit of labour market governance systems, there is a potential risk of increasing marginalization.” This has an impact on the country's social discourse situation. Changes in employment connections, such as the increased use of contract labour, add to the tripartite partners' concerns. It makes extending the coverage of labour laws and regulations to these workers, as well as promoting decent employment in terms of workers' rights, social protection, economic security, and the payment of minimum wages, more complex and complicated. In the informal economy, employees' voices are not heard. Women employees' limited participation as representatives in social dialogue organizations and processes is another concern. India, like the other BRICS countries, understands the critical significance of universal and durable social security systems, including social protection floors, in achieving inclusive growth, decent and productive employment, gender equality and social inclusion.
Conclusion
Government of India should formulate policy as per Recommendation concerning the transition from Informal to Formal Economy, 2015 (No. 204) adopted by ILC in its 104th Session. This Recommendation recognizes all challenges of informal economy, guides policy framework for protection of rights of workers, social and economic inclusion, implementation of decent work conditions and sustainability in fair competition in national and international markets. Based on the proposals adopted in the Recommendation the guidelines for transition can be prepared in following directions:
During transition the fundamental rights of the workers should be recognized and basic opportunities for income security, livelihoods, social protection are guaranteed.
Decent jobs in the formal economy must be created and preserved. Formal enterprise jobs must be preserved and opportunities for inclusion of more people must be enhanced.
Sustainable models of livelihood creation must be taken where decent job opportunities are available.
Migration from formal economy to informal economy must be prevented. Civil and penal sanctions must be imposed for non-compliance of laws promoting transition from informal to formal economy.
Policy directives should be framed according to ILO Recommendations at par with international labor standard. Wage policies must address living wage, social protection scheme including cash transfer schemes.
All discriminatory practices, unacceptable work conditions and violence including gender-based violence should be abolished. This helps in generating employee trust, belongingness towards organization. These practices are helpful for employee retention.
In informal economy Government should adopt appropriate measures to promote decent work principles keeping at the central the rights at work mainly right of freedom of association and collective bargaining and eliminating all types of unacceptable works like forced and child labor and discrimination and unfair labor practices. Freedom of association, collective participation and social dialogue are the three main pillars of protection of labor rights in the period of transition. State should allow active participation of all stakeholders at their rank to represent their group at the time of formulation of policy directives.
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