Introduction
Employee retention defines as, organization's ability to retain its best employees. It can also be called a process in which the resources are motivated and refreshed to retain a company for more extended time for organizational sustainability.
Image 1: Benefits of employee retention (Source:www.netsuite.com,2021)
Literature Review
"Everyone talks about building a relationship with your customer. I think you build one with your employees first."- Angela Ahrendts (Senior Vice President, Apple)
"No man can be successful unless he first loves his work."- David Sarnoff (CEO, RCA)
Herzberg's Two - Factor Theory
The famous Fredrick Herzberg's 'Two- Factor Theory' explains the relationship between employee retention and employee motivation.
Image 2: Herzberg's two-factor theory (www.vantagecircle.com,2020)
Image 3:Employee life cycle(Source:www.vantagecircle.com,2020)
Global Context
There are many good examples of companies like Google, American Express, John Lewis, Hyatt, Southwest Airlines, Virgin that have achieved excellent results in retaining the best efficient employees.
Main drivers of Employee Retention
- Hiring the right persons
Job descriptions ought to be comprehensive and updated. It begins with using the proper person for the correct designation. Using it can ultimately judge job candidates and perceive that they need the data and temperament to deal with the work and slot in its culture.
- Showing the opportunities in career
If the staff need to hit a wall or do not see a future within the organization, they will explore higher opportunities elsewhere. Career development opportunities and mentorship are enticing to the talented staff. If staff change them to induce help and progress in their careers, they are way more likely to stay devoted.
- Benefits providing
Organizations that provide the leading edge to their staff are a lot expected to retain excellent talent. Several surveys disclose that health edges ar utmost vital, followed by retirement money. With the increasing aid prices, a robust employee health edge setup is crucial to recruiting high talent.
- Manage with trust
If staff trust leaders in the proper direction, they are less likely to go away. Open communication is crucial to create that trust and can cultivate a way of possession throughout an organization.
- Provide a great work environment
A work setting that creates individuals feel enclosed and celebrates diversity can encourage workers to remain.
- Rate a work-life balance
Work-life balance has become additional vital to workers than ever before. It might be best if managers acknowledge that workers have a life outside of labor. If employers systematically build them early and work during workplace hours, they will inevitably begin searching for different jobs.
- Establish two-way feedback
Many bosses overlook the importance of human activity with workers and creating them to feel connected.
- Build workers feel valued.
There are several little ways in which to point out that employers are simply an employee. Simply acknowledging their contribution will build an enormous distinction.
Image 2:Great Qualities of a manager (Source:www.questionpro.com,2019)
- Do not micromanage
The best thanks to managing are usually to present their worker's precise direction, enable them lots of houses to try and do what they need to try and do and supply feedback. They will approach they add a very completely different method than the employer.
Conclusion
The ultimate intention of employee retention is to make both the stakeholders, employees, and employers satisfied. It facilitates faithful employees sticking to the company for a longer duration, which will benefit both the stakeholders and employers.
References
Babiak, H. and Kotys, N., 2020. Problems of formation and effective use of enterprise staff. Regional aspects of productive forces development of Ukraine, (25), pp.115-121.
Stauffer, J. and Narayanan, N., 2019. How do Global Organizations Build Employee Advocates Who Champion Their Brand?
Okayama, E.T., Beyond the First Finish Line: Preparing for Life after College.
Shrivastava, S. and Singh, K., 2021. Workplace deviance in the virtual workspace. Strategic HR Review.
Thank you for sharing Mihirani. As you mentioned in this article the Retain best employees will be having a positive impact on both employees and employers. In order to retain the best talent in the organization, employers need to focus on Hiring the correct person. The recruitment process will be doing a major role in this. With this volatile business environment product, agility will play a major role in the manufacturing sector, for facing this agility and volatile market skilled workforce is very important, To retain the best employees is an important area for any industry.
ReplyDeleteGood one Mihirani. Companies highly value employee retention because it costs time and money to train & replace employees, especially productive ones. Having talented employees leave your organization can also cause strain on existing employees that have to take on extra work until those roles can be filled. So it is very important to retain the best employees as you have explained. Thanks for sharing.
ReplyDeleteMihirani, Thank you for selecting this timely topic for your blog in the most appropriate time. Because most of the organizations are failed to retain their most valuable talented employees with them and eventually what happens is best employees leave the company. But we need to remember there is a saying "Best people don't leave companies but they leave their bad leaders,Managers,Bosses". Toxic Manger Can create a Toxic environment then ultimately best employees leave the Toxic environment at the high time where he or she failed to tolerate the toxicity.
ReplyDeleteNice topic with different angels.
ReplyDeleteAs we all know, employees are one of the most important and valuable assets to any organization in this day and age. First and foremost, retaining talented employees is critical to the company's success.It identifies the key HR factors such as selection, remuneration, recognition and reward, training and career development, and a pleasant work environment, which were discussed in order to establish relationships with organizational commitment and intent to stay for a long time in the organization.Thanks for sharing your knowledge.
The study found that most employees leave the organization because of frustration and constant conflict with their bosses or other team members. In some cases low wages, lack of growth prospects and motivation force the employee to seek change. Managers should try their best to keep those employees who are the most important in the system and who are known as successful contributors. Thankyou for sharing this interesting article Mihirani.
ReplyDeleteEffective employee retention policies are crucial to the development of organizational success, keeping the most talented employees will be the key for success of its day-to-day operations. They worked tirelessly to attain organizational objectives. Therefore, much attention must be giving to them, more especially considering the factors that will motivate them to do their jobs excellently. They should be treated fairly and must be evaluated carefully because the organization need to ensure that they retain the best employees by all means.
ReplyDeleteAn excellent employee retention program can be assumed as a crucial part in both attracting in and retaining workers, just as in decreasing turnover and its connected expenses. It is more effective to retain a qualified skilled employee than to select, train and arrange a substitution worker of a similar quality.
ReplyDeleteEmployee turnover can be reduced in businesses by employing effective management practices. Companies that make an effort to keep employees engaged, create a positive company culture, and provide competitive wages and benefits can reduce turnover costs and produce meaningful, long-term development.
ReplyDeleteRetention aids in human resource planning in a company. Human resource planning estimates the gap between the demand and supply of workforce required for the future based on the objectives of the company. It also helps in succession planning whereas it aims to determine the competent strategic positions in a company. It aids to have a talented and dedicated workforce that would decrease recruitment expenditure and training and development expenditure (Kamalaveni, et al., 2019).
ReplyDeleteEmployee retention is driven by key factors such mentioned in Herzberg's Two factor Theory and Maslow's Hierarchy of Needs Theory. Factors like, attractive compensation and rewards, Job security, socialization etc will influence an employee to be retained in the organization. Adversely negative factors will demotivate and influence to leave the company. Since the job market is widely open prospective company's do head hunting to recruit key employees from other organizations since the training cost is less of the experienced workers. Thank You
ReplyDeleteyou clearly said that Effective employee retention can save an organization from productivity losses. High-retention workplaces tend to employ more engaged workers who, in turn, get more done. Engaged employees are more likely to improve customer relationships, and teams that have had time to coalesce also tend to be more productive.
ReplyDelete