Employee Retention “81% of all organizations perceiveturnover as having a negative effect on their effectiveness”.
What is an Organization ?• A set up where individuals come together and work in collaboration to achieve a common goal is called as organization.
Who are Employees?• Individuals working together in an organization to earn their bread and butter as well as make profits are called employees.• Employees are the lifeline of an organization and contribute effectively to its successful running and profit making.
What is Employee Retention ? • Employee retention refers to the various policies and practices which let the employees stick to an organization for a longer period of time. Mathematical Definition:• Retention is the rate at which current employees of your organization are staying in their jobs. Retention is the opposite of “turnover.” Therefore, if turnover is low, then retention is high.
Why do Employees Leave ?• The employee’s decision to leave begins with a sense of low job satisfaction. – Job satisfaction represents a person’s emotional feelings about his or her work. When work is consistent with employees’ values and needs, job satisfaction is likely to be high.
Need & Importance of Employee Retention• Hiring is not an easy process• An organization invests time and money in grooming an individual and make him ready to work and understand the corporate culture.• When an individual resigns from his present organization, it is more likely that he would join the competitors• The employees working for a longer period of time are more familiar with the company’s policies, guidelines and thus they adjust better• It has been observed that individuals sticking to an organization for a longer span are more loyal towards the management and the organization.
Employee Retention Strategies• The company’s rules and regulations should be made to benefit the employees.• Performance appraisals are also important for an employee to stay motivated and avoid looking for a change.• Employee recognition is one of the most important factors which go a long way in retaining employees.• The responsibilities must be delegated according to the individual’s specialization and interests.
Role of HR in Employee Retention• Whenever an employee resigns from his current assignments, it is the responsibility of the HR to intervene immediately to find out the reasons which prompted the employee to resign.• It is the duty of the HR to sit with the employee and discuss the various issues face to face. Try to provide a solution to his problem.• The HR person must ensure that he is recruiting the right employee who actually fits into the role.• The human resource department must conduct motivational activities at the workplace.• The HR must launch various incentive schemes for the top performers to motivate them.• Performance reviews are a must. The HR along with the respective team leaders must monitor their team member’s performance to ensure whether they are enjoying the work or not.
Role of Team Leaders and Supervisors in Employee Retention• The team members must be assigned responsibilities as per their specialization, qualification, interests as well as experience.• An over burdened worker never finds his job interesting and would always be eager for a change.• Rules and regulations should be same for everyone.• One should never fear his boss. Hitler approach does not work in the current scenario.• The team leader should be accessible to his team members.• The superiors must maintain transparency in communication.• The team leader must appreciate those who perform well.
Challenges in Employee Retention• Monetary dissatisfaction is one of the major reasons for an employee to look for a change.• In the current scenario, where there is no dearth of opportunities, stopping people to look for a change is a big challenge.• Individuals speak all kind of lies during interviews to get a job.• Some individuals have a tendency to get bored in a short span of time.• Unrealistic expectations from the job also lead to employees looking for a change.
Qualities in an Organization for a Better Employee Retention• Monetary satisfaction is one of the major reasons as to why an employee sticks to an organization for a longer duration.• An organization must have a simple hierarchy and the functional areas of each team should be well defined.• Freedom of expression is of utmost importance at the workplace to retain employees.• The organization must encourage employees to celebrate major festivals at the office premises itself.• An organization must offer a positive ambience to its employees to expect a consistent performance from them.
After Effects of a Poor Employee Retention• Employees who spend a considerable amount of time in any organization know it in and out and thus can perform better. Loss of good resource.• Loss of trade secrets to its competitors.• Continual exit of key workers cause can cause domino effect among employees.
ConclusionEmployees are the major assets of any organization.An organization must work hard towards retaining those who really are important for the organization.