Table of Contents

List of Titles:

Topics Page No.

Executive Summary 01
Chapter – 1: Introduction 02 – 04
1.1. Background of the Report 02
1.2. Statement of the Problem 03
1.3. Objectives of the Study 03
1.3.1. Primary Objective 04
1.3.2. Specific Objectives 04
1.4. Limitations of the Study 04
Chapter – 2: Literature Review 05 – 11
2. Literature Review of the Study 06
2.1. Turnover 06
2.2. Types of Turnover 07
2.3. Factors Leading to Turnover 07 – 09
2.4. Costs of Turnover 09
2.5. Positive Consequences of Turnover 09 – 10
2.6. Types of Turnover in Relation to Reducing Employee Turnover 11
Chapter – 3: Methodology of the Study 12 – 14
3. Methodology of the Study 13
3.1. Population Size 13
3.2. Sampling 13
3.3. Data Collection Method 14
3.4. Data Tabulation 14
3.5. Data Analysis 14
3.6. Data Presentation 14
3.7. Computer Software Used 14
Chapter – 4: Company Profile 15 – 24
4.1. Organization Overview 16
4.2. Corporate History of Square Pharmaceuticals Limited 16 – 17
 Topics Page No
4.3. Stepping stones of Square Pharmaceuticals Limited 17 – 18
4.4. Company Profile 19
4.5. Vision of Square Pharmaceuticals Limited 20
4.6. Mission of Square Pharmaceuticals Limited 20
4.7. Objective of Square Pharmaceuticals Limited 20
4.8. Corporate Focus of Square Pharmaceuticals Limited 20
4.9. Square Concerns 21
4.10. Hierarchical Categories of SPL 22
4.11. Locations, Branches and Units of SPL: 23
4.12. Departments of SPL 24
Chapter – 5: Analysis and Findings 25 – 43
5. Analysis of the Study 26
5.1. Graphical Analysis 26 – 33
5.1.1. Gender 26
5.1.2. Department Wise Turnover in CHQ of SPL 27 – 28
5.1.3. Better Opportunity Leads to Turnover 29 – 30
5.1.4. Contract-over with the Company Leads to Turnover 31
5.1.5. Opportunity of Higher Studies Abroad Leads to Employee 32
Turnover
5.1.6. Poor Job Performance Leads to Turnover 33
5.2. Empirical Analysis (Regression Analysis) 34 – 38
5.2.1. Development of Hypotheses 34 – 35
5.2.2. Linear Regression Result in STATA 36
5.2.3. Table: Linear Regression Result 37
5.2.4. Results of the Study 37 – 38
5.3. Employee Retention Strategies of SPL 39 – 41
5.4. Findings of the Study 42 – 43
Chapter - 6: Conclusions and Recommendations 44 – 46
6.1. Conclusions 45
6.2. Recommendations 46
Appendix 47 – 52
References 53
List of Tables:

Topics Page No.

1. Gender 50
2. Department –wise turnover in 2015 50
3. Turnover in 2016 50
4. Better Opportunity 51
5. Forms of Better Opportunity 51
6. Contract-over leads to turnover 51
7. Opportunity of Higher Studies Abroad 52
8. Poor Job Performance 52

List of Figures:

Topics Page No.

1. Stages of Methodology 13
2. Male-Female Ratio of Employees in 2015 and 2016 26
3. Employee Turnover in 2015 27
4. Employee Turnover in 2016 28
5. Responses of ex-employees regarding the reason of leaving SPL as 29
Better Opportunity
6. Different forms of Better Opportunity Identified by the ex- 30
employees of SPL
7. Bar diagram showing responses of employees regarding contract- 31
over with the company as a reason of employee turnover in SPL
8. Responses of ex-employees regarding the Opportunity of Higher 32
Studies Abroad as the reason of leaving SPL
9. Responses of ex-employees regarding Poor Job Performance as 33
the reason of leaving SPL
 Executive Summary

This report has been prepared as a requirement of my internship program. The report on
“Reasons of Employee Turnover and Retention Strategies of Square Pharmaceuticals
Limited – A Statistical Analysis.” includes a concrete analysis of the reasons of employee
turnover in Square Pharmaceuticals Limited (SPL) and elaboration of the retention strategies
adopted by the company.

The report is an attempt to visualize the actual scenario of the organizational factors that lead to
employee turnover. The key objective of the study is to assess the significance of the reasons that
lead to turnover and to analyze why and how it affects turnover. To make this report informative
data has been collected from various secondary sources like- articles, newspaper, reference
books, office archive, information provided by the HR department of SPL etc. Other than this, I
have conducted a questionnaire survey on the ex-employees of SPL to identify the most valid
reasons of turnover. From these sources clear and distinctive pictures of the reasons and
retention\ strategies have been obtained.

In the light of the information obtained the major reasons of employee turnover like: better
opportunity, opportunity of higher studies abroad, contract over with the company, adaptation of
unethical means, non-abidance with discipline and decorum, personal reasons, poor job
performance, working condition and special separation scheme has been identified. The analysis
has been done in two ways- graphical analysis and regression analysis. Through regression
analysis, three significant reasons of turnover have been identified which are- better opportunity,
opportunity of higher studies abroad, and adaptation of unethical means. The retention strategies
of SPL are very extensive which are presented in brief in the later sections of the report. Some of
the diversified strategies are- Corporate Pathshala, Free Lunch, and 4 Performance-based
Bonuses in a year. Apart from this, many more information relevant to employee turnover has
been collected and presented in systematic manner in this report.

Square Pharmaceuticals Ltd is the flagship company of Square Group. It is an organization with
equal emphasis on People, Leadership, Technology, Quality and Passion. It puts highest
emphasis to get the right person for the job, the best one. And after hiring, the utmost emphasis is
given on equality. It is due these reasons that employee turnover rate of SPL is very low and it is
constantly striving to make it lesser.

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Chapter – One
Introduction

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1.1. Background of the Report:

Employee turnover is one of the most important issues to organizations, and that needs special
attention. It has some significant effects on organizations; new employees must be hired and
trained, it is also needed to consider the time required for a new employee to be effectively
productive. Staffs turnover is a warning sign of low morale and it is the amount of movement in
and out of employees in an organization. In general, employees either leave their jobs voluntarily
by their own decision or forced to leave by the decision of the employer. Employee’s turnover is
one of the factors which affects the organization’s productivity; which is considered to be one of
the challenging issues in business nowadays. The impact of turnover has received considerable
attention by senior management, human resources professionals and industrial psychologists. It
has proven to be one of the costliest and seemingly intractable human resource challenges
confronting by several organizations globally. Turnover of employees consists of both voluntary
and in voluntary. Voluntary turnover is a major problem for organizations in many countries.
The issue of met expectations was central to the individual’s decisions to leave an organization.
Each employee has his or her own set of expectations upon entering an organization. Should
these expectations not be met, the individual will become dissatisfied and leave. A negative
evaluation of the present job leads to job dissatisfaction, thoughts of quitting, and an evaluation
of job seeking expectation utility and cost of quitting.

1.2. Statement of the Problem:

This research examined the causes of employee turnover in Square Pharmaceuticals Limited.
The study utilized data extracted from current employees by questionnaires and data of exit
interviews conducted on exiting employees of the Company, which included the individual
reasons given for leaving the organization.

1.3. Objectives of the Study:

Objectives are the focus points of any analysis. Purposes and the objectives are the prerequisite
to set out something or accomplish a mission. The success or failure of a study mostly depends
on how its purposes and objectives are considered.

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The objectives of this report can be identified as Primary objective and specific objectives:

1.3.1. Primary Objective:

The general objective of the paper is to identify different factors that are affecting and
aggravating employee turnover of Square Pharmaceuticals Limited so that a few diagnostic
recommendations may be suggested.

1.3.2. Specific Objectives:

 To identify factors that are affecting retention of employees of the organization;
 To understand the effect of staff turnover on the performance of the organization;
 To find out the strategies undertaken by SPL for employee retention.
 To suggest some recommendations to reduce the rate of employee turnover in SPL.

1.4. Limitations of the Study:

 The participants in the study were limited to the 58 employees who took part in the
questionnaire survey and left job from Square Pharmaceuticals Limited (SPL) in the
year 2015 and 2016.
 The findings of this study are limited only to this particular organization and do not
allow generalizations to the larger population or to the industry as a whole.
 Only ex-employees were selected as respondents and key informant interviews and it did
not include existing employees of the organization. To fill the gap, secondary
information obtained from the authority have been utilized.

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Chapter – Two
Literature Review of the Study

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2. Literature Review:
Employee turnover has become an important area of research from both a theoretical and
practical standpoint. It is important from a theoretical perspective, in understanding how the
underlying causes of turnover can provide insights into how to control the phenomenon.
However, from a practical standpoint, learning how to minimize the turnover of skilled
employees is crucial in reducing employee replacement costs (Keaveney, 1992). Also,
decreasing employee turnover keeps knowledgeable and experienced employees working in the
organization. A large portion of the employee turnover problems that we have seen in the recent
past can be directly linked to the fact that jobs were plentiful and employees were scarce,
considering overall unemployment was at or near a 30-year low. In this chapter, a review of a
variety of published literature dealing with employee turnover in general and some more specific
to employee turnover in the pharmaceutical industry has been presented.

2.1. Turnover:
Employee turnover has been one of the most studied subjects in organizational behavior
literature (Schwab, 1991), yet continues to elude any concrete conclusions. To better understand
the implications of turnover, one must understand how turnover is defined.
Price (1977) defines turnover “as the degree of individual movement across the membership
boundary of a social system” (p. 4). This definition includes accession and the hiring of new
employees. Macy & Mirvis (1976) succinctly state that turnover is “any departure beyond
organizational boundaries” (p. 224).
The employee turnover rate is usually calculated by dividing the number of employees separated
from the company they were working for by the base number of jobs during the period.
Employees who transfer to other positions within the same organization are not considered in the
calculation, as well as those who retired, had their job phased-out or were terminated due to
downsizing.
Turnover rates for employees can be measured and compared over time and across companies
using what is commonly referred to as the employee turnover index.

The index is calculated as follows:

TTR = [S/N] x 100
TTR = total turnover rate
S = number of employees separated in the period
N = average number of employees in the unit in the period

Some companies add in the number of new positions added during the year to get a more
accurate turnover figure. Employee turnover that results in vacancies caused by internal
promotions are not included in most turnover statistics.

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2.2. Types of Turnover:
There are a few generally accepted models of employee turnover. The first model suggests that
turnover is either voluntary or involuntary. Suggesting that an employee has chosen to leave the
organization (voluntary) or they have been forced to leave (involuntary). However, Jackofsky
(1984) explains that modeling turnover in this manner can vary significantly from an employee
viewpoint to that of the employer. Below average performers may be forced out of an
organization with threats of firing or with unattractive hours or assignments, yet if the employee
initiates the terminations they are recorded as voluntary. These types of employee initiated
resignations are not truly a function of the employee’s desire to leave and, therefore, should be
treated separately (Jackofsky, 1984). In addition to the voluntary/involuntary model there is a
second model that has been generally described as job-related, non-job-related, and lack of fit
within the organization (Ulschak & Snowantle 1992).

Job-related turnover includes employees who left the organization due to reasons that were
somewhat within the control of the employer. Such factors would include dissatisfaction with
working conditions, supervising conflicts or salary discrepancies. Non-job related turnover
occurs when an employee leaves the organization due to things in the employee’s personal life
that impact their performance in the workplace. Examples of these would be relocation, family
problems, marital issues, emotional instability or mental health, addictions, and chemical abuse.
The third type of turnover is due to the employee’s lack of fit within the organization. Examples
of this type of turnover would include employees who were so uncomfortable in the work
environment that they could not continue the employment. The discomfort may be due to many
reasons. Possibly they are not fully qualified and they are having difficulty fulfilling the position,
or perhaps the employee is qualified but does not work best in the work environment he or she is
being placed in. These are just a few examples of an employee’s lack of fit within the
organization.

2.3. Factors Leading to Turnover:

Controlling employee turnover can constitute a complex and challenging task for both the
workplace and administrators. Managers may have difficulty understanding and or accepting
employee turnover within their organization, due to a myopic perspective of the situation.
However, identifying the underlying causes, quantifying the problem, and identifying possible
solutions to high employee turnover can prove to be valuable information for managers who
wish to make a difference (Mobley, 1982).

Numerous researchers have tried to identify the various contributing factors to employee
turnover in the workplace in addition to the causes of turnover and dissatisfaction. Traditional
theories have focused on how employees make their decision to leave the workplace. Within

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these studies, several of the following factors have continued to surface in relation to turnover,
showing that there are leading underlying factors that exist in causing the actual act of turnover.

a. Intent to Leave: Intent to leave is one’s behavioral attitude to withdraw from the
organization, while turnover is considered the actual separation from the organization. Intent
to leave has replaced job satisfaction and organizational commitment as the strongest
predictor of turnover in the studies that have actually examined turnover (Keaveney, 1992).
Intent to leave is based upon an attitudinal variable and is most typically found in job-related
turnover (Cotton and Tuttle, 1986).

b. Job Dissatisfaction: Job dissatisfaction has been found to be a common occurrence with
several levels of severity. A direct positive correlation was found in the employee’s level of
dissatisfaction and the chance that the employee would leave the organization. For
managerial trainees in a large merchandising firm, Porter, Crampton and Smith (1976) found
that organizational commitment diminished prior to the individual’s actually leaving the
organization. Also, the level of job dissatisfaction did decrease when employers attempted to
accommodate all reasonable requests for improving the work situations.

c. Role Stressors: Staw (1980) identified three role stressors, which contribute to employee
turnover. These three role stressors are role ambiguity, role conflict, and role overload.
Almost the opposite of lack of responsibility, role stress is a result of work environment
perceptions and thus, influences affective responses such as organizational commitment.
Role ambiguity results when an employee is uncertain how to perform the job. This could
occur when there are undefined management positions within an organization. Role conflict
is experienced when an employee receives two or more sets of expectations or demands that
are incompatible and cannot be simultaneously satisfied (Churchill, Ford, & Walker 1976).

d. Poor Employee Training and/or Orientation: Training is a method used to increase job
related employee knowledge. Employees beginning a new job need to be introduced to the
job, its duties, and the expectations that will be placed upon them. This training should be
only the beginning process to mold the employee into the corporate culture and ideals. “It has
been estimated that in the United States organizations spend approximately $30 billion per
year on formal employee training programs. In addition, the sum of approximately $180
billion a year is spent on informal training and coaching” (Warshauer, 1988). Warshauer also
identified eight critical elements in successful training sessions. These items include program
content, training methods, employee input, and an assurance that the training meets
organizational needs.

e. Lack of Advancement: When employees perceive no growth areas/future or desire to

advance within the system, they have no reason to remain in the current work situation. If
growth is desired but leaving the current employer is required, it will result eventually in the
employee’s departure.

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f. Income: It is not uncommon for people to leave one position for a higher paying position,
sometimes within the same company. It is hard to keep employees when paying significantly
less than others are offering, which has been common in the retail setting. However, in past
studies income has been consistently, related negatively to turnover (Cotton and Tuttle,
1986).

g. Lack of Respect: Certain businesses have been criticized for not giving employees the
respect that they feel they deserve. Employees expect to be treated with dignity and respect at
all levels of the job.

h. Lack of Responsibility: It has been stated, “…responsibility is the single greatest motivator
in business” (Weinstein, 1992, p.92). In some instances, individuals perceive that they are
ready to make the decisions yet, management may never give them the chance.
Responsibility is a major factor that can provide a lasting change of attitude (Herzberg,
1966). Therefore, empowering the employee could be a critical investment in a company’s
future.

i. Lack of Opportunity to Move: The long hours and lower pay scales typically found at the
entry-level management position have contributed to the conflicts of a work/life balance.

2.4. Costs of Turnover:

In any successful business, owners and managers must control expenses to increase profits.
Understanding the importance of how employee turnover relates to the expense and implications
on a business is essential in all business, not excluding retail. Managing turnover can also be a
cost-effective way for retail management to show their commitment to the organization
(Gardner, 1986). Strategies for effectively managing turnover necessitate both prediction and the
previous explanations of how turnover works.

There are few empirical studies regarding the relationship of turnover to the performance of the
work unit. However, several researchers have speculated about negative and positive effects to
the organization and/or attempted to quantify costs. Therefore, a brief review of these studies and
findings is warranted.

2.5. Positive Consequences of Turnover:

Although retail turnover is generally considered by industry experts to be too high most retail
managers agree that not all turnovers are bad. Some situations occur where an employee is not
well suited to the organization and it is better for the individual and the company for that person
to leave. Dalton and Tudor (1979), responding to researchers’ continued emphasis on the
negative aspects of turnover, took a unique and positive look at turnover. They commented,
“From an organizational standpoint, turnover costs may be misrepresented because of a failure to

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account for the benefits as well as the costs of turnover” (p. 231). The possible benefits of
turnover depend on the job, the extent to which it demands physical or psychological abilities
and on who actually leaves (Stew, 1980). Stew comments that “turnover rates do not, as a
statistic, provide such information” (1980, p. 261).

Summarizing the popularly accepted positive consequences of turnover, and drawing attention to
how these possible consequences are dependent upon numerous variables, Stew (1980) states:
Turnover can increase organizational performance, but this effect depends on the role
performance curve and contingency of the organization’s reward system. Turnover may also
reduce conflict in the organization, but this result depends on the ideological nature of the
organization and whether core beliefs or values are involved in the conflict… turnover may lead
to organizational innovation and adaptation, but this result may, in turn, be moderated by the
hierarchical level at which turnover occurs and whether inside or outside succession is followed.

Some who study hiring and retention recommend figuring out which employees you want to
keep and aiming your retention efforts at them specifically. David Foote, a research and
management consultant, calculates that companies will find 5-10% of their work force include
top achievers who should be retained, and about 25 – 40% are steady performers, worth retaining
up to a point. Turnover may have several positive consequences, yet high turnover rates in retail
remain a reality. Finding the solution to this issue is crucial to retail survival.

A booming economy has several prosperous benefits, yet attracting and keeping competent loyal
employees isn’t one of them. Despite the overall prosperity of the economy, it is getting harder
and harder to find qualified employees to fill positions (Gardner, 1986). When the economy is
strong and jobs are plentiful, it makes hiring the right people imperative.

Hiring qualified people who will stay is well worth the time and effort when the negative
implications of a single bad hire are analyzed. During the labor squeeze, several suggestions
have been offered to help find and retain key employees. These suggestions included: keeping a
file of possible hiring candidates, offering higher wages, internet advertising, implementing a
probationary period in which new employees would be rated, awarding a bonus to those
employees who successfully refer someone (must stay for a certain period of time), and
extending the employee training period. Job banks are another way of staying on top of the
turnover issue.

Companies should be constantly recruiting and not waiting until there is a vacancy, keeping a file
of possible candidates, even if there are no job openings. When there is an opening, there will be
a list of contenders. Finding the right candidates for a specific job could include “rounding up”
current employees who have been successful and testing them. A test such as the MBTI (Myers
Briggs Type Indicator) may reveal personality traits common to strong performers within the
organization

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2.6. Types of Turnover in Relation to Reducing Employee Turnover:
Three types of employee turnover were highlighted earlier in the chapter. They were described as
job-related, non-job-related, and lack of fit within the organization. Within each of these turnover
types corrective strategies can be put in place in order to combat against turnover.

Job-related turnover includes employees who left the organization due to reasons that were
somewhat within the control of the employer. Such factors would include dissatisfaction with
working conditions, supervising conflicts or salary discrepancies. Corrective steps taken by some
employers to decrease this type of employee turnover include training programs for supervisors,
clarification of the employee’s purpose or role and identifying scheduling solutions.

Non-job related turnover occurs when an employee leaves the organization due to things in the
employee’s personal life that impact their performance in the workplace. Examples of these would
be relocation, family problems and chemical abuse. Some employers have responsive programs to
address the problems in this category, including employee assistance programs and stress
management training.

The third type of turnover is due to the employee’s lack of fit within the organization. Examples of
this type of turnover would include employees who were so uncomfortable in the work
environment that they could not continue the employment. Attempts have been made to address
this area of potential problems. The preferred method would be to take a proactive stance by testing
the potential employee. This would require pre-employment testing along with the interview
process. An example of this approach would be to develop a behavioral profile of the candidate
using a standardized test instrument and compare that against the demands of the work situation as
a whole (Ulschak & Snowantle 1992). Based upon empirical evidence at the Quaker Chemical
Corporation, employees who rated high on subjective criteria, including likeability, sense of humor
and ability to adapt as a team player, were five times as likely to be successful as those whose score
was not as high (Gardner, 1986).

The other way to address poor fit turnover problems would be to implement strategies that were
designed to improve the probability of a good fit. For example, organizations have attempted to
build employee commitment through solid orientation programs, training employees for success on
the job and conducting exit interviews to find areas in need of improvement. If a company is truly
affected by turnover and its associated negative aspects, they need to be more realistic about who
they are hiring.

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Chapter – Three
Methodology of the Study

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3. Methodology of the Study:
This chapter covers the issues which are needed to design the information retrieval of the study.
This section presents the main research method and is further sub-divided into the design of the
overall study, sources of data; both primary and secondary data, the population of the study, data
collection instruments, procedure for data collection, methods of data analysis and criteria used
to ensure the credibility of the findings.

3.1. Population Size:

The population of this study is unknown. Because the population of this study includes the ex-
employees of Square Pharmaceuticals Limited.

3.2. Sampling:
In this study random sampling were made. 58 respondents were interviewed through a
questionnaire and all are ex-executives of Corporate Head Quarters (CHQ) from several
departments.

Topic selection

Primary data Data collection Secondary data

Data Presentation and

Analysis

Submission of Final
Report

Figure 1: Stages of Methodology

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3.3. Data Collection Method:
For analyzing the study data is collected from two sources. These are:

a. Primary Data:
For conducting the primary research and collecting primary data a questionnaire was designed
comprising of questions relevant to the research issue. The respondent of this questionnaire were
the ex-employees of Square Pharmaceuticals Limited.

b. Secondary Data:
Secondary data has been collected from the following sources:
Annual Reports
Information Gathered from HR Department of SPL
Internet (Company website)
Different articles, journals, reports etc.

3.5. Data Tabulation:

This study has collected primary data through a questionnaire. These collected data have been
tabulated and codified in M.S. Excel for the purpose of further analysis. These tabulated &
codified data include the opinions of the 58 respondents accurately.

3.6. Data Analysis:

For analyzing the data, Regression analysis and graphical presentation were made.

3.7. Data Presentation:

Collected data are analyzed and presented in this report through various graphical figures with
interpretations.

3.8. Computer Software Used:

M.S. Word, M.S. Excel & STATA12 were used for analyzing the collected data.

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Chapter – Four
Company Profiles

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4.1. Organization Overview:
SQUARE today symbolizes a name – a state of mind. But its journey to the growth and
prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned into one
of the top line conglomerates in Bangladesh. Square Pharmaceuticals Ltd., the flagship company,
is holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985
and is now on its way to becoming a high performance global player.

SQUARE Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it

has been continuously in the 1st position among all national and multinational companies since
1985. It was established in 1958, converted into a public limited company in 1991 and listed with
stock exchanges in 1995. The turnover of Square Pharma was Taka 30.28 Billion (US$ 385.22
million) with about 18.64% market share having a growth rate of about 25.36% (April 2014–
March 2015).

4.2. Corporate History of Square Pharmaceuticals Limited:

SPL is the key member of Square Group made its humble debut in 1958. At first it was a
partnership firm and established by present chairman Mr. Samson H. Chowdhury and his three
other friends in a house of a small village “Ataikula” near Pabna. It started with 12 people and
Tk. 55,000 in capital in floor space of 3000 sft. SPL first proprietary medicine “Astons syrup”
was launched in 1 9 5 9 .
The first compressed tablet was introduced in 1962 under the generic name “Santonin”. In
the next year, the introduction of “Pethidine” injection accelerated the growth of the firm. With a
rapid expansion of business turnover rising to near BDT 1 million and the number of employees
become 50. In this year, the firm was converted into a private limited company with an
authorized capital of Tk. 500,000 and paid up capital of Tk.400, 000.

In 1982, the turnover of SPL reached to Tk. 240 million and the number of employees went to
near 400. In 1985, SPL achieved the market leadership in pharmaceuticals market in the
country in terms of sales. By the year 1988, the number of employee reached to 750 and annual
turnover goes to Tk. 550 millions. SPL adopted necessary steps in implementing facilities to
manufacture a wide range of essential drugs within the jurisdiction of WHO recommendation.
this year, the firm was converted into a private limited company with an authorized capital of
Tk. 500,000 and paid up capital of Tk.400, 000.

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this year, the firm was converted into a private limited company with an authorized capital of Tk.
500,000 and paid up capital of Tk.400, 000.

In 1982, the turnover of SPL reached to Tk. 240 million and the number of employees went to
near 400. In 1985, SPL achieved the market leadership in pharmaceuticals market in the country
in terms of sales. By the year 1988, the number of employee reached to 750 and annual turnover
goes to Tk. 550 millions. SPL adopted necessary steps in implementing facilities to manufacture
a wide range of essential drugs within the jurisdiction of WHO recommendation.

SPL has entered in the global market in 1987. SPL exports its products to UK. (87), Singapore
(87), Sri Lanka (97), Cambodia (97), and Russia (97). At present SPL has a branch office at
Russia and is exporting its product to 27 countries.

By the year 1988, the number of employee reached to 750 and annual turnover goes to Tk. 550
millions. In this condition, SPL decided to increase its product line. From 1990, Square Chemical
division for producing pharmaceuticals raw materials worth an investment of tk. 130 million and
currently it is producing 7 pharmaceuticals bulk raw materials.

In the 1998, the company was awarded with the ISO 9001 certificate for implementing Quality
Management System (QMS) in all of its operation. In the same year, Agro Vet division of SPL
introduced its product in the market. In the year 2002, SPL starts manufacturing Dry Powder
Inhalers (DPI) as a pioneer pharmaceuticals company in Bangladesh. In the year of 2007, SPL
was awarded UK-MHRA certificate which makes strong the position of SPL. It also shows that
the quality of product is international standard. Following table shows at a glance the
Chronological journey through time of Square Pharmaceutical Company Since its inception.

4.3. Stepping stones of Square Pharmaceuticals Limited:

Serial No. Year Events

1. 1958 Debut of SQUARE Pharma as a Partnership Firm.
2. 1964 Converted into a Private Limited Company.
3. 1974 Technical Collaboration with Janssen Pharmaceuticals, Belgium,
a subsidiary of Johnson and Johnson International, USA.
4. 1982 Licensing Agreement signed with F. Hoffman-La Roche & Co
Ltd., Switzerland.
5. 1985 Achieved market-leadership in the pharmaceutical market of
Bangladesh among all national and multinational companies.

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6. 1987 Pioneer in pharmaceutical export from Bangladesh.
7. 1991 Converted into a Public Limited Company
8. 1994 Initial Public Offering of shares of SQUARE Pharmaceuticals
Ltd.
9. 1995 Chemical Division of SQUARE Pharmaceuticals Ltd. starts
production of Active Pharmaceutical Ingredients (API).
10. 1997 Won the National Export trophy for exporting pharmaceuticals.
11. 1998 Agro-chemicals & Veterinary Products division of SQUARE
Pharmaceuticals starts its operation.
12. 2001 US FDA/UK MCA standard new pharmaceutical factory goes
into operation built under the supervision of Bovis Lend Lease,
UK.
13. 2004 SQUARE enlisted as UNICEF's global supplier.
14. 2005 New State-of-the-Art SQUARE Cephalosporins Ltd. goes into
operation; built under the supervision of TELSTAR S.A. of Spain
as per US FDA/ UK MHRA requirements.
15. 2007 SQUARE Pharmaceuticals Ltd., Dhaka Unit gets the UK MHRA
approval.
16. 2009 Starts manufacturing of insulin maintaining quality standards of
US FDA & UK MHRA. Dedicated hormone & steroid products
manufacturing facility complying with the current Good
Manufacturing Practice (cGMP) of WHO, US FDA & UK
MHRA starts operation.
17. 2012 SQUARE Pharmaceuticals Ltd., Dhaka Unit and SQUARE
Cephalosporins Ltd. get the Therapeutic Goods Administration
(TGA) of Australia approval.
18. 2015 PAI (Pre-Approval Inspection) by US FDA was successful for
Dhaka Site’s solid dosage unit.

Page 18 of 53
4.4. Company Profile:
SPL is growing with high degree of potentiality and at present holding the leading market share
in Bangladesh. Square means a geometric figure with four angles and four equal sides. The
vision of high ethical standard and quality of the medicines it manufactures has suited its name
across its lifeline.

Serial No. Company Profile

1. Company Name Square Pharmaceuticals Limited

2. Type of Company Public Limited Company

3. Board of Director Mr. Samuel S Chowdhury-Chairman; Mrs. Ratna

Patra- Vice-Chairman; Mr. Tapan Chowdhury-
Managing Director ; Mr. Anjan Chowdhury-
Director; Mr. Kazi Iqbal Harun-Director; Mr. M
Sekander Ali-Independent Director; Mrs. Nihad
Kabir- Independent Director
4. Corporate SQUARE CENTRE, 48, Mohakhali Commercial
Headquarter Area, Dhaka- 1212, Bangladesh

5. Business Line Manufacturing and Marketing of Pharmaceutical

Finished Products, Basic Chemicals, AgroVet
Products, Pesticide Products, Small Volume Parental
Ophthalmic Products and Insulin Products.

6. Authorized Capital Tk. 5,000 million

7. Paid-up Capital Tk. 1,509.03 million

8. Number of 7,174 (approx.)

Employees

9. Subsidiary Company Square Cephalosporins Ltd.

Square Formulations Ltd

Page 19 of 53
4.5. Vision of Square Pharmaceuticals Limited:
The company sees business as a means to the material and social wellbeing of the investors,
employees and the society at large, leading to accretion of wealth through financial and moral
gains as a part of the process of the human civilization.

4.6. Mission of Square Pharmaceuticals Limited:

The mission of SPL is to produce and provide quality & innovative healthcare relief for people,
maintain stringently ethical standard in business operation also ensuring benefit to the
shareholders, stakeholders and the society at large.

4.7. Objective of Square Pharmaceuticals Limited:

The objective of the company is to conduct transparent business operations within the legal &
social frame work with aims to attain the mission reflected by its vision.

4.8. Corporate Focus of Square Pharmaceuticals Limited:

The company’s vision, mission and objectives are to emphasize on the quality of product,
process and services leading to growth of the company imbibed with good governance
practices.

Square Quality Policy

Ensure strict compliance with WHO cGMP standards and local regulatory norms in every
phase of sourcing & procuring quality materials, manufacturing, quality assurance and delivery
of medicines.
Ensure all activities through documented Quality Management System (QMS) complying
International Standard requirements of ISO 9001 through continuously developing Human
Resources by regular training and participation
SQUARE is committed to undertake appropriate review, evaluation and performance
measurement of processes, business activities and Quality Management System for
continual improvement to ensure highest standard, customer satisfaction, developing
human resources and company's growth.

Page 20 of 53
4.9. Square Concerns:

As part of SQUARE, one of the all-time leading Bangladeshi conglomerates, SQUARE

Pharmaceuticals Limited’s sister concerns not only present a large quantity of companies but
also a rich range of product lines. The SQUARE Concerns with their logos are given as
follows:

Aegis services Ltd

Square College of Nursing

Page 21 of 53
4.10. Hierarchical Categories of SPL:
The company is divided into two general hierarchical categories or levels: executives and non-
executives. These two levels are further divided into various grades.

Managerial & Executive Grade Division & Designation

Grade Designation
M-1 Managing Director
M-2 Deputy Managing Director
M-3 Executive Director
M-4 Director
M-5 General Manager
M-6 Deputy General Manager
M-7 Assistant General Manager
M-8 Senior Manager
M-9 Senior Manager
M-10 Manager
M-11 Manager
M-12 Senior Executive
M-13 Senior Executive
M-14 Executive
M-15 Executive
M-16 Executive

Page 22 of 53
4.11. Locations, Branches and Units of SPL:
SPL, a wholly Bangladeshi owned company, started its function in a small house at Ataikula
near Pabna in a rural setting in the year 1958. The first proprietary medicine from SQUARE was
Easton’s Syrup launched in 1959, when number of people working rose to 12 turnovers to TK,
55000 & floor space occupied 3000 square feet. The owner MR. Samson H. Chowdhury did not
have enough capital. He transferred the newly established industry to Pabna town where a
people were accepted as co- shares. In this way the initial capital problem was solved to some
extent.

Following are the current SPL units operating in different locations across the country:

Dhaka Unit:
The UKMHRA (United Kingdom Medicines and Healthcare Products Regulatory Agency)
approved facility is about 50 km away in the North of the capital city. Bovis Lend Lease, UK
designed this plant. This is a state of the art manufacturing facility for oral solid dosage forms
and all facilities have been developed meeting the requirements of cGMP CFR 21. Dhaka Unit
started its operation at the end of 2002. Dhaka Unit also incorporates a separate Ophthalmic
Plant, which has been setup under US FDA and UK MHRA guidelines.
Cephalosporins Unit:
Dedicated and state-of-the-art Cephalosporin’s Manufacturing Facility is built as per the
requirement of International GMP standard like EMEA, UK MHRA and US FDA. This world
class facility manufactures Cephalosporin antibiotics in Tablets, Capsules, dry Syrup and
Inject able preparations.

Pabna Unit:
Pabna Unit is the first manufacturing facility of Square Pharmaceuticals Ltd. and started
operation in 1958. It is a modern plant that fully complies with WHO – cGMP Requirements.
It has earned ISO 9001 Certificate in 1998, for which Auditor was Orion Registrar Inc., USA.
Again, it’s Quality Management System upgraded to 2008 version in 2009.

Animal Health Unit Pesticide Unit:

The plant was established in 1992 and started commercial production in 1995. Until 1996 it was
involved only for the internal consumption of Square Pharmaceuticals Ltd. From the year 1997 it
started its full-fledged production and marketing to all top pharmaceuticals within the country
including Aventis Pharma, Novartis Bangladesh Ltd., ACI Ltd., Beximco Pharmaceuticals Ltd.,
The Acme Laboratories Ltd, Eskayef Bangladesh Ltd., Opsonin Chemicals, Renata Ltd.,
Essential Drugs Co. Ltd. and many more.

Page 23 of 53
4.12. Departments of SPL:

Corporate Head Quarters (CHQ) of SPL is composed of various departments; whose activities
are “cross-functional” due to operational requirements. The number of departments shows the
complexity that the SPL management goes through to make the company work in sync. The
departments are:

 Product Management Department (PMD)

 Sales Department
 Medical Services Department (MSD)
 Accounts & Finance Department
 General Services Department (GSD)
 Enterprise Resource Planning (ERP)
 International Marketing Department (IMD)
 Supply Chain Management Department (SCM)
 Technical Services Department (TSD)
 Legal Affairs Department
 Human Resource Department (HRD)
 Company Affairs Department
 Internal Audit Department (IAD)
 Quality Management & Audit Department
 Market Research & Planning Cell (MRPC)
 Agrovet Division
 Central Creative Services Cell

Page 24 of 53
Chapter – Five
Analysis and Findings

Page 25 of 53
5. Analysis of the Study:
The analysis of this study has been done in two ways: Graphical Analysis and Regression
Analysis.

5.1. Graphical Analysis:

5.1.1. Gender:
The following graph presents the total male-female ratio of the employees in Corporate Head
Quarters (C.H.Q) of Square Pharmaceuticals Ltd. (SPL) in the years 2015 and 2016.

GENDER
2015 2016

215 233

24 25

Figure 2: Male-Female Ratio of Employees in 2015 and 2016

Interpretation:
From this bar diagram, it can be understood that from 2015 to 2016, both the number of male and
female employees have increased. While the numbers of male employees in 2015 were 215, it
became 233 in 2016. And the number of female employees increased from 24 in 2015 to 25 in
2016.

(For the calculation see Table No. 01 at page No. 50 in Appendix No. 2)

Page 26 of 53
5.1.2. Department Wise Turnover in CHQ of SPL:
Square Pharmaceuticals Ltd consists of many departments. The study has been done on the
executives of the Corporate Head Quarters (CHQ) who left the job in 2015 and 2016. The
following graphical presentations show the turnover rate of different departments.

5.1.2.1. Employee Turnover in 2015:

EMPLOYEE TURNOVER IN 2015

SCM
IAD TSD
3%
IMD 3% 3%
6%
Agrovet
9%
PMD
A&F 47%
3%
MSD
3%
Legal
3%

HR
11%
Sales
9%

Figure 3: Employee Turnover in 2015

Interpretation:
This pie-chart represents the department-wise employee turnover in 2015. From this chart, it can
be seen that the highest employee turnover occurred in Product Management Department (PMD)
which is 47% of the total turnover in 2015. Next to PMD, 11% turnover occurred in Human
Resource Department (HR) and 8% turnover was found in Sales Department. Other than this, the
turnover rates in other departments are considerable.

(For the calculation see Table No. 02 at page No. 50 in Appendix No. 2)

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5.1.2.2. Employee Turnover in 2016:

EMPLOYEE TURNOVER IN 2016

Int. Mkt MRPC
9% 4%

Agrovet
13%
PMD
31%

TSD
17%

Legal
4%
Sales A&F
9% ERP 9%
4%

Figure 4: Employee Turnover in 2016

Interpretation:
This pie-chart represents the department-wise employee turnover in 2016. From this chart, it can
be seen that the highest employee turnover occurred in Product Management Department (PMD)
which is 31% of the total turnover in 2016. Next to PMD, 17% turnover occurred in Technical
Service Department (TSD) and 13% in Agrovet department. Other than this, turnover in the other
departments are negligible.

(For the calculation see Table No. 03 at page No. 50 in Appendix No. 2)

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5.1.3. Better Opportunity Leads to Turnover:

Better opportunity

Strongly
Disagree, 4

Disagree, 2

Neutral, 5

Agree, 15

Strongly Agree,
32

0 5 10 15 20 25 30 35

Figure 5: Responses of ex-employees regarding the reason of leaving SPL as Better

Opportunity

Interpretation:
In this pie-chart, the responses of 58 ex-employees of SPL have been presented. Here, it can be
seen that 55% of the total respondents strongly agreed and 26% respondents agreed to the fact
that they have left SPL for better opportunity. On the contrary, 7% employees strongly disagreed
with this statement and 9% respondents were neutral regarding this reason of turnover.

(For the calculation see Table No. 04 at page No. 51 in Appendix No. 2)

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5.1.3.1. Forms of Better Opportunity:

Forms of Better Opportunity

OWN BUSINESS 2

PUBLIC SERVICE 1

OTHER INDUSTRY 12

COMPETITOR COMPANY 15

0 2 4 6 8 10 12 14 16

Figure 6: Different forms of Better Opportunity Identified by the ex-employees of SPL

Interpretation:

As in the previous graph it could be seen that majority of respondents remarked better
opportunity as the reason of leaving SPL, this bar chart depicts the different categories of better
opportunity as identified by 58 ex-employees. According to the feedback obtained from them, 15
employees moved to a competitor company for a better opportunity in the Pharmaceuticals
industry, 12 employees moved to other industry finding better opportunity there and 2 of them
started their own business while one employee left SPL after having a job in the Public Service.

(For the calculation see Table No. 05 at page No. 51 in Appendix No. 2)

Page 30 of 53
5.1.4. Contract-over with the Company Leads to Turnover:
Contract Over

Strongly Disagree 2

Disagree 5

Neutral 7

Agree 17

Strongly Agree 27

0 5 10 15 20 25 30

Figure 7: Bar diagram showing responses of employees regarding contract-over with the
company as a reason of employee turnover in SPL

Interpretation:

In this bar diagram, the responses of ex-employees regarding contract over with the company as
a reason of employee turnover, has been presented. Here, it can be seen that, of the total 58
respondents 27 respondents strongly agreed and 17 respondents that contract-over leads to
employee turnover. On the other hand, 5 respondents disagreed and 2 respondents strongly
disagreed with this statement.

(For the calculation see Table No. 06 at page No. 51 in Appendix No. 2)

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5.1.5. Opportunity of Higher Studies Abroad Leads to Employee
Turnover:

OPPORTUNITY OF HIGHER STUDIES ABROAD

40
30
20 34
10 19
0
Strongly
Agree No. of Respondents

Strongly

Figure 8: Responses of ex-employees regarding the Opportunity of Higher Studies Abroad

as the reason of leaving SPL.

Interpretation:

In this bar diagram, the responses of total 58 ex-employees regarding opportunity of higher
studies abroad as the reason of employee turnover, has been presented. Here, it can be seen that,
34 respondents strongly agreed and 19 respondents that it leads to employee turnover. On the
other hand, 2 respondents disagreed and 1 respondent strongly disagreed with this statement.

(For the calculation see Table No. 07 at page No. 52 in Appendix No. 2)

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5.1.6. Poor Job Performance Leads to Turnover:

POOR JOB PERFORMANCE

Neutral Disagree
9% 0% Strongly
Disagree
0%

Agree
31%

Strongly Agree
60%

Figure 9: Responses of ex-employees regarding Poor Job Performance as the reason of

leaving SPL.

Interpretation:

In this pie-chart, the responses of total 58 ex-employees’ poor job performance as the reason of
employee turnover, has been presented. Here, it can be seen that, 60% respondents strongly
agreed and 31% respondents that it leads to employee turnover. On the other hand, none of the
respondents disagreed or strongly disagreed with this statement.

(For the calculation see Table No. 08 at page No. 52 in Appendix No. 2)

Page 33 of 53
5.2. Empirical Analysis (Regression Analysis):
5.2.1. Development of Hypotheses:
Hypothesis 1:
H0: Better opportunity in the pharmaceutical Industry is not a major cause of turnover in SPL.
H1: Better opportunity in the pharmaceutical Industry is a major cause of turnover in SPL.

Hypothesis 2:
H0: When the Contract is over, non-renewal of it is not a vital cause of turnover.
H1: When the Contract is over, non-renewal of it is a vital cause of turnover.

Hypothesis 3:
H0: Opportunity of higher Studies abroad is not a major cause of employee turnover in SPL.
H1: Opportunity of higher Studies abroad is a major cause of employee turnover in SPL.

Hypothesis 4:
H0: Personal Reasons like family does not lead to turnover in SPL.
H1: Personal Reasons like family leads to turnover in SPL.

Hypothesis 5:
H0: Non-abidance with discipline and decorum policy of SPL by the employees does not lead to
employee turnover.
H1: Non-abidance with discipline and decorum policy of SPL by the employees leads to
employee turnover.

Hypothesis 6:
H0: Unethical Practices by employees if found, it does not lead to employee separation.
H1: Unethical Practices by employees if found, it leads to employee separation.

Page 34 of 53
Hypothesis 7:
H0: The working condition of SPL is not a reason of employee turnover.
H1: The working condition of SPL is a reason of employee turnover.

Hypothesis 8:
H0: Special Separation Scheme is not a cause of turnover in SPL.
H1: Special Separation Scheme is a cause of turnover in SPL.

Hypothesis 9:
H0: Poor job performance is not a reason of employee turnover in SPL.
H1: Poor job performance is a reason of employee turnover in SPL.

Page 35 of 53
5.2.2. Linear Regression Result in STATA:

Page 36 of 53
5.2.3. Table: Linear Regression Result:

Variables Co-efficient T Value P Value Significance

Level
Better Opportunity -0.4090125 -3.26 0.002 Significant
Contract Over 0.1880202 1.55 0.127 Insignificant
Higher Studies 0.2560593 2.23 0.030 Significant
Personal Reason -0.1957754 -1.46 0.152 Insignificant
Discipline and Decorum -0.1692626 -1.62 0.111 Insignificant
Unethical Practice -0.2353742 -2.41 0.0020 Significant
Working Condition 0.2549376 1.69 0.097 Insignificant
Special Separation Scheme -0.0073509 -0.07 0.947 Insignificant
Poor Performance 0.0821701 0.81 0.423 Insignificant

5.2.4. Results of the Study:

a. Relationship between Better Opportunity and Employee Turnover:

The correlation of coefficient between Better Opportunity and Employee Turnover is
-0.4090125. It describes that there is a negative significant relationship between Better
Opportunity and Employee Turnover in Square Pharmaceuticals Limited. If one unit changes in
dependent variable, it will Decrease -0.4090125 in independent variable. Calculated P-value is
0.002 that means there is a significant relationship between them & therefore, null hypothesis is
rejected.

b. Relationship between Contract over and Employee Turnover:

The correlation of coefficient between Contract over and Employee Turnover is 0.1880202 but
P-value is 0.127 that is higher than .05 which means that between them there is no significant
relationship. Therefore, null hypothesis is failed to be rejected.

c. Relationship between Higher Studies and Employee Turnover:

The correlation of coefficient between Higher Studies and Employee Turnover is 0.2560593. It
describes that there is a significant relationship between Higher Studies and Employee Turnover
in Square Pharmaceuticals Limited. If one unit changes in dependent

Page 37 of 53
variable, it will Increase 0.2560593 in independent variable. Calculated P-value is 0.030 that
means there is a significant relationship between them & therefore, null hypothesis is rejected.

d. Relationship between Personal Reason and Employee Turnover:

The correlation of coefficient between Personal Reason and Employee Turnover is -0.1957754
but P-value is 0.152 that is higher than .05 which means that between them there is no significant
relationship. Therefore, null hypothesis is failed to be rejected.

e. Relationship between Discipline Decorum and Employee Turnover:

The correlation of coefficient between Discipline Decorum and Employee Turnover is -
0.1692626 but P-value is 0.111 that is higher than .05 which means that between them there is no
significant relationship. Therefore, null hypothesis is failed to be rejected.

f. Relationship between Unethical Practice and Employee Turnover:

The correlation of coefficient between Unethical Practice and Employee Turnover is
--0.2353742 but P-value is 0.08 that is higher than .05 which means that between them there is
no significant relationship. Therefore, null hypothesis is failed to be rejected.

g. Relationship between Working Condition and Employee Turnover:

The correlation of coefficient between Working Condition and Employee Turnover is 0.2549376
but P-value is 0.097 that is higher than .05 which means that between them there is no significant
relationship. Therefore, null hypothesis is failed to be rejected.

h. Relationship between Special Separation Scheme and Employee Turnover:

The correlation of coefficient between Special Separation Scheme and Employee Turnover is
-0.0073509 but P-value is 0.947 that is higher than .05 which means that between them there is
no significant relationship. Therefore, null hypothesis is failed to be rejected.

i. Relationship between Poor Performance and Employee Turnover:

The correlation of coefficient between Poor Performance and Employee Turnover is 0.0821701
but P-value is 0.423 that is higher than .05 which means that between them there is no significant
relationship. Therefore, null hypothesis is failed to be rejected.

Page 38 of 53
5.3. Employee Retention Strategies of SPL:
In order to retain the employees and reduce turnover, a proactive approach is critical.
Following retention strategies and tools will help the organizations:

a. Right Selection:
Recruitment and selection process of SPL is one of the finest selection mechanisms of best
employees. Each stage of the process acts as a filter which filtrates only the candidates
strongly willing to work for SPL. By far, this acts to be the biggest predictor of future
employee retention.

b. Communication:
Communication has become so heavily stressed in the workplace that it almost sounds
clichéd. The HR department of SPL informs about any new company policies or initiatives to
all employees to be sure that everyone is on the same page. Nobody wants to feel that they
are being left out of the loop.

c. Training Program:
SPL arranges a Management Development Program (MDP) for management employees only.
(Executives). Training duration is 6 months. It helps employees to understand the working
procedure of the company.

d. Free Lunch:
It is common knowledge that healthy employees cost the company less. Whether is in less
missed work days, better productivity, or lower costs for health insurance; everyone wins
when employees stay healthy. Keeping this in concern, SPL provides lunch to employees free
of cost. But, to be noted this “free of cost” agenda does not impact on the quality and hygiene
of the food. SPL never compromises with quality whether it is about its products or the lunch
it offers.

e. Include Employees in Decision-making:

SPL includes all employees in decision making. It is incredibly important to include team
members in the decision-making process, especially when the decision will affect an
individual’s department or work team. It can help to create a sense of involvement and will
generate new ideas and perspectives that top management might never have thought of.

Page 39 of 53
f. Corporate Pathshala:
Corporate Pathshala, formerly known as PERT, is a 3 month long corporate grooming up session
form new executives of CHQ. The program involves large number of contents cover corporate
skills required to perform day to day desk activities. It is a new program taken by HR
Department. It’s a development program designed for management employees. The training is
given in both during probation and after probation. It is a learning process which makes the
delivery process faster.

g. Allow Team Members to Share their Knowledge with Others:

The highest percentage of information retention occurs when one shares that information with
others. Having team members share when they have learned at a recent conference or training
workshop will not only increase the amount of information they will retain, but also lets a team
member know that he is a valuable member of the organization. SPL facilitates knowledge-
sharing among employees which is equally beneficial for the team member being mentored as
well as for the mentor.

h. Shorten the Feedback Loop:

In SPL, supervisors do not wait for an annual performance evaluation to give feedback on how
an employee is performing. Most team members enjoy frequent feedback about how they are
performing. Shortening the feedback loop helps to keep the performance level high and reinforce
positive behavior.

i. Balance Work and Personal Life:

Family is incredibly important to team members. When work begins to put a significant strain on
one’s family, no amount of money will keep an employee around. SPL recognizes the
importance of balancing work and one’s personal life. Small gestures such as allowing a team
member to take; granting permission to take a leave if required and attend his/her children’s
PTM and the like will likely be repaid with loyalty and extended employment with an
organization.

j. Provide Opportunities for Growth and Development:

SPL offers opportunities for team members to acquire new skills and knowledge useful to the
organization. If an employee appears to be bored or burned out in a current position, the
company arranges to train this individual in another facet of the organization where he or she
would be a good fit

Page 40 of 53
k. Recognize Team Members for Their Hard Work and Let Them Know They
Are Appreciated:
This can be one of the single greatest factors affecting employee retention. So, SPL has adopted
this strategy too. Everybody, across all levels of an organization, wants to know that their efforts
are appreciated and recognized. Often team members gather and appreciate any team member for
their performance.

l. Transport Facilities:
SPL provides transport facilities for all the employees in every unit whether it be the Corporate
Headquarter or the Pabna Unit. This practice of Square has created the Vibe of “Square Time”
which depicts that the employees of SPL are never late for work. If for any reason employees
need to stay and work after office time, SPL ensures that the employee reaches home safely by
arranging a transport facility for him/her.

m. Clearly Define what is Expected of Team Members:

Nothing can be more frustrating or discouraging for an employee than the lack of a clear
understanding of what is expected of him on the job. In a performance-driven workplace a lack
of clarity regarding job duties and expectations can cause fear and anxiety among employees
who are unclear of what is expected of them. For this reason, the supervisor’s make sure that
their subordinates clearly understand what they are asked to do.

n. Performance-based Bonus:
To get more work out of the employees, remuneration in the form of bonus helps to retain
individuals who are highly productive. It doesn’t add extra-pressure on the company’s budget. In
a year, 4 bonuses are given to employees based on performance. But as it

For every company, workforce is an intellectual capital which is the source of its competitive
advantage and helps achieve the bottom-line. Hence, retaining a well-trained, skilled and
contented workforce can lead a company to dizzy heights while the lack of it can hamper its
growth badly. So, every resignation saved is a dollar earned.

Page 41 of 53
5.4. Findings of the Study:
The findings of this study has been drawn from regression and graphical analysis. Though this
the reasons of employee turnover in SPL has been identified. And for finding out the retention
strategies followed by the company, interviews and briefings from all the 4 working teams of
Human Resource Department, namely- recruitment and selection team, training and development
team, sales force team and compensation team has been gathered. And from the information
gathered, the retention strategies have been identified and presented in the findings section of the
study. A snap view of the findings has been presented as follows:

 The turnover rate of SPL is very meagre. And it is decreasing with the pace of time.
Whereas in 2015, employee turnover was 35 in CHQ, in 2016 it decreased to 23. This is
very impressive progress on the part of a leading pharmaceutical company like Square
Pharmaceuticals Limited (SPL).

 The number of female employees are on the increase which means that SPL is able to
provide a work-friendly atmosphere for female employees.

 The significant reasons of employee turnover have been found to be better opportunities
in the same industry, other industries, starting of own venture and public service jobs.

 Other than this, the opportunity of higher studies abroad plays a significant role in
employee turnover. This is perhaps due to the fact that, the employees who work as
executives join the company mostly after graduation. And they keep trying for having
further degrees from abroad. As a consequence, when they get the opportunity of
educational scholarship, they leave the job.

 Square strictly restricts employees to adopt unfair and unethical means. Still, if any
employee is found to do so, SPL goes for employee separation. Because, SPL prefers
quality and honesty more than anything else in every aspect.

 Another vital reason of employee turnover is non-validation of working contract of the

employee with the company. When the contract is over, and both the parties- the
company and the employee are not interested to renew the contract, it results in employee
separation.

 The other reasons of turnover which have been identified throughout the study like poor
job performance, personal reasons, non-abidance with discipline and decorum, working
condition and special separation scheme are insignificant reasons of employee turnover.
Because the very few employee separation occurs for the above mentioned reasons.

Page 42 of 53
From all this findings, it can be concluded that both voluntary and involuntary turnovers
exist in SPL.

For employee retention, SPL practices extensive measures. 4 performance based bonus is
hardly provided by any other pharmaceutical company. SPL provides mid-day meal
which includes a varied menu each day of the week free of cost. Other than this, it does
every little thing to heighten employee morale and satisfaction.

Page 43 of 53
Chapter – Six
Conclusions & Recommendations

Page 44 of 53
6.1. Conclusions:
Individual factors, such as personality and fit between the person and the job, were not likely
factors to predict staff turnover among the respondents as they felt they had the right personality
and characteristics to be successful in their jobs, and they saw their jobs as a mission. The study
revealed that respondents were satisfied with the working conditions, salary and other benefits
and other motivational factors as well. They have opined that the reason of leaving SPL is mostly
a higher position or additional benefits which other competitor companies promised to provide to
them. And many of them were willing to start their career afresh in other industries as they felt
that they could do better in a different industry. Whereas Square Pharmaceuticals Limited hires
only the competent and talented candidate, in most cases those employees leave only for further
studies abroad because they wish to learn more and know more. It reflects the fact that, they do
not leave the company because they have issues with the company but because they have a
different goal in mind.

The retention strategies of SPL are very far and wide. SPL is trying its best to retain its
employees. And the proof of this effort is the decreasing rate of turnover in SPL. It is competing
with itself and constantly striving to find new ways to gain employee satisfaction which would
lead to employee retention in the end.

Page 45 of 53
6.2. Recommendations:
A few recommendations have been suggested as follows which might be helpful for reducing
employee turnover in SPL:

 It can be noticed from the findings section that the rate of employee turnover is highest in
the Product Management Department. The management might arrange a discussion
session with the employees of this department and find out the reasons of their
dissatisfaction which in turn results in separation.

 Managers and HR personnel need to increase their efforts to retain qualified and
experienced employees.

 Additional research on employee turnover is needed to assist organizations in developing a

comprehensive approach to recruiting, hiring, training, and retaining qualified employees.

 Top management should reduce work boredom to employees by revisiting employee’s job
description and assign some challenging job tasks on the employee’s job description.

 Providing opportunities for cross-training and career progression within the company.
People like to know that they have room for career movement. This is a serious deterrent
to employee turnover.

 Paying attention to employees’ personal needs and offer more flexibility where you can.
Offering facilities of telecommuting, compressed schedules or on-site or back-up day
care might be considered.

Rebalancing of workload with some comparatively easy and stress free works regularly
might be helpful in reducing turnover.

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Appendix

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 APPENDIX No. 1: Questionnaire

Understanding the Factors Likely to Induce Employee Turnover

Dear Respondent,

I would like to thank you for participating in a survey on understanding the reasons likely to induce
employee turnover in Square Pharmaceutical Ltd (SPL). Your information will be used only for academic
purpose. This questionnaire has been developed as a requirement of my internship report. To be
mentioned that I am currently preparing an internship report on “Employee Turnover in Square
Pharmaceutical Limited”.

With Regards,
Sabrina Sharmin Nishat
Department of Management
University of Dhaka

Part-1: Personal Profile

A) Respondent’s Age

18-25  26-35  36-45  46 and above

B) Gender

 Male  Female

C) Tenure of Employment in Square Pharmaceutical Ltd

 Less than 1 year 1-3 years 3-5 years Above 5 years

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 Part-2: Questionnaire on Employee Turnover

Section-II

Here, we are interested in a number from 1 to 5 that shows your perceptions about the
organization. You should rank each statement as follows:

Strongly Disagree Disagree Neutral Agree Strongly Agree

1 2 3 4 5

Sl. No. Statements Rate

1. Better opportunity in the pharmaceutical Industry is a major cause of
turnover.
2. When the Contract is over, non-renewal of it is a vital cause of turnover.

3. Opportunity of higher Studies abroad is a major cause of employee

turnover.

4. Work-life imbalance is a reason of turnover in context of Square

Pharmaceuticals Ltd.

5. Non-abidance with discipline and decorum policy leads to employee

turnover.

6. Unethical Practices by employees if found, it leads to employee

separation.
7. Square Pharmaceuticals Limited has a healthy working environment.

8. Special Separation Scheme is a cause of turnover.

9. Poor job performance is a reason of employee turnover.

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 Appendix 2: Calculation Tables

Table 1: Gender

Year Male Female

2015 215 24
2016 233 25

Table 2: Department –wise turnover in 2015

Department No of Employees
PMD 16
Sales 3
HR 4
Legal Affairs 1
MSD 1
A&F 1
Agrovet 3
IMD 2
IAD 1
TSD 1
SCM 1
Total 34

Table 3: Turnover in 2016

Department No of Employees
MRPC 1
PMD 7
Legal Affairs 1
A&F 2
ERP 1
Sales 2
Agrovet 3
TSD 4
International Marketing 2
Total 23

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Table 4: Better Opportunity

Responses No. of Respondents

Strongly Agree 32
Agree 15
Neutral 5
Disagree 2
Strongly Disagree 4

Table 5: Forms of Better Opportunity

Forms of Better Opportunity No of Employees

Competitor Company 15
Other Industry 12
Public Service 1
Own Business 2

Table 6: Contract-over leads to turnover

Responses No. of Respondents

Strongly Agree 27
Agree 17
Neutral 7
Disagree 5
Strongly Disagree 2

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Table 7: Opportunity of Higher Studies Abroad

Responses No. of Respondents

Strongly Agree 34
Agree 19
Neutral 2
Disagree 2
Strongly Disagree 1

Table 8: Poor Job Performance

Responses No. of Respondents

Strongly Agree 35
Agree 18
Neutral 5
Disagree 0
Strongly Disagree 0

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