EMPLOYEE RETNTION STRATEGIES
People leave the organization due to various reasons. The experience of job related stress (job stress), the range factors that lead to job related stress (stressors), lack of commitment in the organization; and job dissatisfaction make employees to quit (Firth, Mellor, Moore, Loquet (2007).
Some organizational cultures can be inspiring to their employees and provides an inductive environment to their employees. Organization with strong communication systems enjoy lower turnover of staff (Labov, 1997)
Effective retention management requires ongoing diagnosis of the nature and causes of turnover, a strategic approach to determining in what human capital markets retention has the largest impact on organizational success, and the development of an appropriately targeted and organized bundle of retention initiatives (Allen, Bryant, Vardaman, 2010).
It is the responsibility of the employer to retain their best employees, if not; the organization will lose the star performers (good employees), (Gurumani, 2010).
Study conducted by Singh and Loncar (2010) revealed that pay satisfaction and job satisfaction affects turnover intention. Currivan (1999) conducted a study which examined four possible models of the causal relationship between job satisfaction and organizational commitment in models of employee turnover: (1) satisfaction precedes commitment, (2) commitment precedes satisfaction, (3) satisfaction and commitment have a reciprocal relationship, and (4) satisfaction and commitment have no significant relationship.
Hom and Griffeth (1995) described in a study that the process of encouraging employees to stay for a long period or till the project completion is termed as retention. Wysocki, B (1997) pointed out the view of “The Society of Human Resource Management” that retention of employee is the hottest topic in the current scenario. Drucker (1999) explained that employees voluntarily quits their job is a potential retention issue.
Frankeiss (2008) discussed in this study that policies and practices on talent management, recruitment and retention policy can play an important role in decreasing the attrition rates. Oracle white paper (2012), it is discussed that recruiting the right person in the first place would be the best practices for retention of employees. Beardwell and Wright (2012) emphasized in a study that organizations systematic approach to recruitment and selection which would help in decrease in turnover of employees.
Below video 01 describes the importance of employee retention, reasons for employee turnover as well as the outside factors. Video 02 describes the strategies for employee retention with the practical examples.
Video 01
Reference
- Agarwal, R. and T.W. Ferratt. (2002) “Enduring Practices for Managing IT Professionals.” Communications of the ACM, September 2002, Vol. 45, No. 9, 7 3-79.
- Allen, D.G., P.C. Bryant, and J.M. Vardaman. (2010) “Retaining Talent: Replacing Misconceptions with Evidencebased Strategies.” Academy of Management Perspectives. 48-63.
- Beardwell, J., and Wright, M., (2012) Recruitment and Selection: Human resource management: A contemporary approach, Harlow, Pearson Education Limited, 189-229.
- Currivan, D. B. (1999). The Causal Order of Job Satisfaction and Organizational Commitment in Models of Employee Turnover. Human Resource Management Review, 9, 495-524.
- Drucker, P., (1999) Management for the 21st century, New York Harper Collins.
- Firth L., D.J. Mellor, K.A. Moore, and C. Loquet. (2007) “How can Managers reduce Employee Intention to quit?” Journal of Management Psychology. 19 (2), 170-187.
- Franckeiss, A., (2008) Mining the good from the goodbyes. Human resource management international digest.
- Gurumani,V.S. (2010) “Invaluable Tools for Talent Retention.” Human Capital. April, 54-55.
- Hom, P.W., & Griffeth, R.W., (1995) Employee turnover. Cincinnati, OH: South-Western.
- Labov, B. (1997) “Inspiring Employees the Easy Way.” Incentive. 171(10), 114-18.
- Oracle white paper (2012)
- Singh, P. and N. Loncar. (2010) “Pay Satisfaction, Job Satisfaction and Turnover Intent.” Département des relations industrielles. Université Laval, 65-3, 470–490.
- Vaiman, V. (2008), “Retention Management as a means of Protecting Tacit Knowledge in an Organization: A Conceptual Framework for Professional Services Firms.” International Journal of Learning and Intellectual Capital. Vol.5, No.2, 172–185.
- Whitt, W. (2006) “The Impact of Increased Employee Retention on Performance in a Customer Contact Center.” Manufacturing and Service Operations Management. Vol.8, No.3, Summer 235–252.
- Wysocki, B (1997) Retaining employees turns into a hot topic. Wall Street Journal, September 8, B1.
Agreed Sanuj, Further,employees join an organization to accomplish goals, but also see it as a way to accomplish the own personal and professional ambitions and employees who stay with a firm for a long time make valuable contributions and grow into key members of the team and their position (Arun, 2017). Further, it might cost up to double an employee's yearly wage to hire new staff to replace departing ones (Fahad, 2007). When an individual quits their position, the company loses not just that person but also their loyal clients and customers, as well as their knowledge of the company's past, present projects, and competitors (Neha, 2018).
ReplyDeleteThank you for your valuable feedback Romeda. Employee retention can be defined as the overarching goal of retaining productive and talented employees while reducing turnover by fostering a positive work environment with a focus on retention strategies such as employee recognition and appreciation, flexible work arrangements, and competitive compensation and benefits through the implementation of policies and practices within the organization that resolve diverse employee needs (Mckeown, 2010).
DeleteGreat post Ishara and like to adding furthermore, Employee engagement is another crucial determinant and a study by Balakrishnan, Masthan, and Chandra (2013) confirmed that employee engagement is a predictor of employee retention. However, further investigations on employee retention need to be done to understand this complex phenomenon (Kossivi, Xu, and Kalgora, 2016).
ReplyDeleteThank you Malshani for adding an extra value to my blog. Employee engagement is seen as positive attitudes and behaviors those improve organizational performance, in a manner that they interact together and support one another (Nabil M. Eljaaidi, 2016)It is about employees’ feelings of pride and loyalty working for the organization, being a great advocate of the organization to its customers, users and partners, exerting more efforts to complete their job duties.
DeleteNicely done Ishara. In addition, Sandhya & Pradeep (2011) explains that employee retention can be further enhanced by motivating the employees in the aspects of Open Communication, which is a key element that enforces loyalty among employees. Furthermore, knowing that their opinions matter and that the management is fully interested in their input, also goes a long way in employee retention.
ReplyDeleteThank you for your valuable comment on the blog. Also, recent studies illustrate that retention approaches that properly meet the requirements of all employees improve a company's capacity to efficiently adjust to continuing organizational dynamics (Lydia Oonge Mokaya, 2014).
DeleteGreat post Ishara. Moreover, any organization's capacity to succeed depends on the quality and efficiency of its human resources (Mensah, 2014). As a result, organizations have a responsibility to recruit and retain the most valuable, inventive, productive, and efficient employees in order to achieve maximum benefits. On the word of Bidisha Lahkar Das (2013), any organization's capacity to retain its key staff is essential to its long-term profitability and viability. Employee retention refers to the process of encouraging them to stick around the organization for as long as possible or until the project is finished (Bidisha Lahkar Das, 2013).
ReplyDeleteThis is a great feedback, Nishadi. Similarly, building a loyal and dedicated workforce requires effective retention practices, which can reduce the time and money spent on advertising job openings, conducting interviews, onboarding new employees, and providing necessary training, as well as the costs associated with diminished business productivity or unsatisfactory customer service (Vasantham, 2016).
DeleteThank you for the great feedback Nirosha. According to the research study conducted by Cloutier et al. (2015), the process of employee retention will benefit an organization in the following ways:
ReplyDelete1. A higher commitment toward the organization's vision, mission, objectives, and core values
2. Increased process efficiency and goal achievement through the retention of long-term employees.
3. Higher productivity
4. High employee morale as a result of a sense of belonging within the organization.
5. Reduction in staff turnover, resulting in decreased recruitment expenses.
6. Enhancing the positive customer experience
7. Increased revenue in the organization