In today scenario retaining the employees in the organization is becoming a challengeable job. Hiring knowledge people for the job is essential for an employer but retention is even more important than hiring. The employees are valuable assests to the organiasation so it is the responsibility for the organization to develop the strategies in order to retain the employees. The loss of talented employees may also be detrimental to a company’s future success. Outstanding employees may leave an organisation because they become dissatisfied, underpaid or unmotivated (Coff, 1996), and the costs associated with employee turnover can be very high.
With such effective retention policies in place, managers are able to keep the employee turnover at a manageable rate. It is imperative for organisations through the employment process, to attract quality employees to the organisation. However, it is more important for managers to device strategies with which to retain these talented employees in the service of their organisations in order for employers to benefit from the investment already made in them. Employee retention is one of the most critical issues facing organisational managers as a result of the shortage of skilled manpower, economic growth and high employee turnover. Phillips and Connell (2003) stated that employee retention involves being sensitive to employees’ needs and demonstrating the various strategies in meeting those needs.
A single method of training and development alone is not sufficient for employee retention. The best results can be achieved by applying different tools strategically and taking various measures to encourage employees to remain in the organization for the maximum period of time. There is a process in which the employees are encouraged to remain with the organization till the completion of the project. Employee retention plays an important role both for the employee and for the organization also. It is a known fact that retaining the best employees ensures customer satisfaction, increased productivity, increased product sales, effective succession planning and deeply embedded organizational knowledge and learning, satisfied colleagues and reporting staff,
From the HR analytics we had found out that if the employees are not retained properly then it would affect profitability and customer service. We also catered into finding out the factors driving the retention. From the consultation with the top management, executives and managers, we found out that there are certain important drivers for retention. Highly conducive working environment Compensation Potential metrics for retention include: • To find out the overall employee turnover • Performance turnover in key jobs to identify the difference between top performers and the bottom performers in the
Employee turnover reflects a company’s internal strengths and weaknesses. New hires need to be constantly added, further costs in training them, getting them aligned to the company culture, etc. all pose a challenge. Organizations also face difficulties in retaining the remaining employees as well as attracting potential employees. High attrition rates also lead to a chronic or systemic cycle.
2.1.3 Talent Retention Factors Figure 1: Talent Retention Factors Source: Coetzee and Shreuder (2010). One of the talent retention is characteristics which include such things as variety and autonomy. Most employees in most organisations want to engage in challenging work such that they can utilize their talent and skills. According to Kochanski and Ledford (2001), repetitive narrow work experience which involves little individual discretion often repels employees. The work environment is considered one of the most important factors of retention (Zeytinoglu and Denton, 2005).
A few of the cons with attrition are trying to replace a position. A lot of times when an employee leaves, the other employees are stuck with those duties, but they won’t get a pay raise, which can lead to an unhappy work force. The upside of Attrition could be to restructure your company to make it better. There’s always a way to do better and why not try to change things around after someone leaves. In this essay, I’m going to give an analysis for the attrition data of The Life Sciences Company.
But since the policies required them to do so, they are doing. Thus organization policies are also evaluated as a possible cause of employees leaving the organization. If an employee feels that he/she is currently working in a dead-end proposition where he/she is not getting right opportunities or the current roles are not making best use of their potentials. Then they also leave. Therefore, evaluation of the roles and responsibilities are also helpful in evaluating turnover
Human resources department along with senior management must take steps to make sure of this. Effective human resource management must be practiced at both strategic and day-to-day levels. HR management practices must reflect company policy as to how it will manage and relate to its employees. The HR strategy should evolve from a transactional support role to partnering in the organizations business strategy. HR must take steps to be aware of employee problems and try to solve them, creatively.
In the area of employees being unable to communicate with their employers due to a different hierarchical status, employers should try to be friendly and sincere to bridge the hierarchical gap between their employees in order to bridge the communication gap. Furthermore, employees should ensure that they do not overload their employees with numerous information and seek feedback to ensure that the important information is clearly understood. Lastly, employers should gain the trust of their employees and vice versa through their daily actions and communicate any facts or opinions honestly. As a result, a trusting environment will be built within the organisation, and both employers and employees will be able to communicate effectively given that the communication barriers within the organisation has been