07.Effectiveness of Employee Retention

Effectiveness of Employee Retention

Retention of employees is an important element of human resources management. Except there is a thoughtful and serious determination from the management towards this path, the competitors in the industry are likely to fascinate the talent already developed in the organization over a period. Careful strategies for creating and applying employee retention strategies are a skill and should be given top importance by the management.


The greatest challenge in today’s commercial world is to stay up to speed in a time of technological growth. Fundamental changes are taking place in the workforce and the workplace that promise to drastically alter the way businesses relate to their employees. As we hurled at an increasing pace in every field, employee retention becomes a concern for all companies at the present strong job market. There are many employment opportunities for talented professionals. It was identified that, higher the skills of the employees, the better the demand for their facilities.

Signing and retentive good employees have become the chief concerns of nearly every company in every industry. Organizations that understand what their employees want and need in the workplace and make strategic conclusions to proactively fulfill those needs will become the dominant players in their respective markets. since employee retention is a very significant issue for an organization and they must tackle to overcome. Employee retention is a process in which the employees are encouraged to continue with the company for the maximum period.

 

The concept of “employee retention” first started to appear with regularity on the business scene in the 1970s and early ‘80s. Until then, during the early and mid-1900s, the essence of the relationship between employer and employee had been (by and large) a declaration of the status quo: you come work for me, do a good job, and, so long as economic conditions allow, I will continue to employ you

 

During the last decade, employee retention has become a serious and perplexing problem for all types of organizations. Managing retention and keeping the turnover rate below target and industry norms is one of the most challenging issues facing businesses.

 

continues to be one of the most unappreciated and underrated issues facing business leaders. This stems from several significant expectations and conclusions about turnover

•                    All stakeholders involved in the issue, including Human Resource managers underestimate the true cost of employee turnover.

•                    The causes of turnover are not adequately identified in most organizations.

•                    The solutions to reducing turnover are sometimes mismatched with the causes of turnover and do not generate the desired results.

•                    Many of the preventive measures for turnover are either overkill or they often miss the mark altogether.

•                    A process to measure the success of retention solutions and place a monetary value on managing retention does not exist in most organizations. (Phillipsand Connell 2003)

 

 

 

External Drivers of The Retention Crisis

Main changes have happened in organizations, both internally and externally, making this issue extra critical today than in past years. Unfortunately, these changes will only worsen the crisis in the future

•             Economic growth.

•             Slower growth of job seekers

 

Internal Drivers of The Retention Crisis

Internal changes in organizations operate in concert with the external influences to drive extreme turnover. Internal issues include structural changes within the company

a. Lack of company loyalty

b. The desire for challenging and useful work

c. Need for self-sufficiency, flexibility, and independence

d. Need for performance-based rewards.

e. Need for recognition for participation, accomplishments, and contributions

f. The desire for different kinds of benefits

g. Need to learn a new skill

 

Recruitment as a Retention Strategy

Retention starts long before an employee’s first day on the job. In the twenty-first-century employment world, organizations must look at the basics of retention through the eyes of potential employees. They are the customers for their jobs. Job descriptions, recruitment, selection, and orientation are the foundations of retention. If the good groundwork is not prepared for the employees, the organizations cannot expect them to stay. Employees will no longer tolerate what they do not like in their employment situation. They have the power in the knowledge of their abilities and confidence in their value in the marketplace. With greater loyalty to their career and their skills than to their employer, they move on. (Dibble 1999)

 

 

LIST OF REFERENCES

 

1.      Stephen Taylor (2002), The Employee Retention Handbook. TMH Publication, NewDelhi.

2.      Jack J. Phillips, Adele O. Connell (2003), Managing employee retention, a strategic accountability approach”, HR Journal, vol14, pp45-54.

3.      Suzanne Dibble (1999), Keeping your valuable employees, retention strategies for the organization’s most important resource, Personnel management, Issue 4, vol8, 35-41.

4.      Jennifer A. Carsen (2002), HR How-to: employee retention, IJTD, vol. 9, pp13-22.

5.      J. Leslie McKeown (2002), Retaining top employees, Journal of Management and HR, Issue 6, pp35-40

Comments

  1. Chathuri CreasySeptember 8, 2021 at 11:09 PM

    Agreed. Employee retention of employees is critical to the long-term health and success of any organization (Sigler, 1999).

    ReplyDelete
    Replies
    1. GajendranSeptember 9, 2021 at 9:22 AM

      Thank you Chathuri in addition DeCamp (1992) emphasizes that the causes for high employee turnover ratio in most of the organizations are mainly due to the failures in their recruitment processes as they are keen on verifying the compatibility of the candidate only with the interviewer and not with the actual people they get to work with

      Delete
  2. Amila WijayanthaSeptember 8, 2021 at 11:27 PM

    As an argument, employees retention affects organizations not limited to reputation, wellbeing, financial. Similarly, Kossivi, Xu and Kalgora (2016) expose that management, leadership, WLB, social support, training and development, work environment directly impacts the organization's success.

    ReplyDelete
    Replies
    1. GajendranSeptember 9, 2021 at 9:24 AM

      Thank you Amila, As you mentioned what Aziri (2011) emphasized, he elaborate that there are certain factors that influence the job satisfaction of the individuals within the working environment, such as nature of work, manager’s concern for people, salary & compensation, working conditions, social relationships, perceived long range opportunities, perceived opportunities at the other places, company policies, knowledge/awareness and resolution of conflicts.

      Delete
  3. Thushari SenevirathneSeptember 9, 2021 at 7:06 AM

    Relationship with supervisors is strongly influence to retention of employees(Eisenberger et al, 1990) in other words leadership style and behavior positively affected(McNeese-Smith, 1995 and Chen, 2009). So it is important to consider this matter as you mentioned.

    ReplyDelete
    Replies
    1. GajendranSeptember 9, 2021 at 9:24 AM

      Yes thank you Thushari and According to Singh and Jain, (2013) there can be numerous factors which can influence a person’s level of job satisfaction which include the level of pay and benefits, quality of the working environment and conditions, existing promotion strategies, leadership and the job related challenges, the variety of tasks involved.

      Delete
  4. Nadeeka Indunil PathirageSeptember 11, 2021 at 3:59 AM

    Agree Gajendran, Managing for employee retention involves strategic actions to keep employees motivated and focused so they elect to remain employed and fully productive for the benefit of the organization (Klupakova, 2013). Klupakova (2013) also stated that comprehensive employee retention program can play a vital role in both attracting and retaining key employees, as well as in reducing turnover and its related costs

    ReplyDelete

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