Proposal - Axact Claims Company, Pakistan

One of the main reasons for which Pakistan is a favorably country for many industries, like IT, is the reason that the labour is very cheap here. Thus in such a country, very unemployment rates are very high, and a large pool of workers is available, very few companies go out of the way to provide good salary packages and fringe benefits to workers. The company of our case, Axact is one of those companies which goes the extra mile to provide workers excellent salary packages, fringe benefits and training opportunities. Yet, it faces a huge problem of employee turnover. Employee turnover refers to the situation when an employee leaves an organization. This, naturally is a big issue for the company, as tremendous costs are incurred when an employee is hired. Then, when he gets further training, he becomes a very useful asset for the company. If such an employee leaves the organization, it can be seen, that this is very harmful for the company.

Now, given the scenario that Axact faces, we aim to find out how big an impact do the measures such as pay and fringe benefits have on employee retention. Another goal is to find out, why the employees are leaving Axact, even though they are being offered a very good salary package.

Finally, coming to the scope of our research and this report, we would be covering the different types of salary packages and fringe benefits that exist in market and which are being offered by Axact. We would be talking about the whole HR function of Axact which includes the recruitment process, the incentives given and the monitoring of performance. Final step would be to see the impacts of these activities/incentives on the employee motivation and retention.

ANALYSIS:

Axact claims to be one of the leading IT companies of the world. And it gives most of the credit for its success to their employees. During the interview with the HR Manager, he said that very few companies are willing to go the extra mile to provide their employees with fringe benefits, recognition and training. He claimed that Axact is one of those few companies that take the responsibility of the welfare of their employees to enhance their performance and motivation levels. But this claim is contradicting with the fact that Axact has a high turnover rate below the top management level positions. Hence we set out to find the relationship between employee benefits that are claimed to be provided by Axact with the organizational commitment of its employees with the company. We also look at the impact of work life balance on the company’s success, along with the necessary steps taken by the Axact management to recruit, retain, enhance and motivate their employees.