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Employee retetion by Mahboob ali khan
 

Employee retetion by Mahboob ali khan

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Employee retention refers to the ability of an organization to retain its employees. Employee retention can be represented by a simple statistic (for example, a retention rate of 80% usually indicates ...

Employee retention refers to the ability of an organization to retain its employees. Employee retention can be represented by a simple statistic (for example, a retention rate of 80% usually indicates that an organization kept 80% of its employees in a given period). However, many consider employee retention as relating to the efforts by which employers attempt to retain employees in their workforce. In this sense, retention becomes the strategies rather than the outcome.

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    Employee retetion by Mahboob ali khan Employee retetion by Mahboob ali khan Presentation Transcript

    • AMINA INSTITUTE OF TECHNOLOGYAMINA INSTITUTE OF TECHNOLOGYEMPLOYEE RETNTIONPRESENTED BY Mahboobali khan MHA CPHQ
    • The picture states the latest statementthat corporate believes in “Love them or Lose them”
    • INTRODUCTIONINTRODUCTIONEmployee Retention involves taking measures to encourage employees to remain in theorganization for the maximum period of time. Corporate is facing a lot of problems inemployee retention these days. Hiring knowledgeable people for the job is essential for anemployer. But retention is even more important than hiring.In today’s environment it becomes very important for organizations to retain theiremployees. The top organizations are on the top because they value their employees and theyknow how to keep them glued to the organization. Employees stay and leave organizationsfor some reasons. The reason may be personal or professional. These reasons should beunderstood by the employer and should be taken care of. The organizations are becomingaware of these reasons and adopting many strategies for employee retention.
    • Definition:-“Employee retention is a process in which the employees are encouragedto remain with the organization for the maximum period of time or untilthe completion of the project”.Employee retention is beneficial for the organization as well as theemployee.Employees today are different. They are not the ones who don’thave good opportunities in hand. As soon as they feel dissatisfied with thecurrent employer or the job, they switch over to the next job. It is theresponsibility of the employer to retain their best employees. If they don’t,they would be left with no good employees. A good employer should knowhow to attract and retain its employees .To be continued…
    • Steps in employees Retention :-1. Compensation2. Environment3. GrowthTo be continued….
    • 4. Support5. Relationship
    • STEPS IN EMPLOYEE RETENTION
    • IMPORTANCE OF EMPLOYEE RETNTIONIMPORTANCE OF EMPLOYEE RETNTIONNow that so much is being done by organizations to retain its employees, why is retention soimportant? Is it just to reduce the turnover costs? Well, the answer is a definite no. It’s not onlythe cost incurred by a company that emphasizes the need of retaining employees but also theneed to retain talented employees from getting poached.The process of employee retention will benefit an organization in the following ways: The cost of turnover The loss of company knowledge Interruption of customer service Turnover lead to more Turnover Goodwill of the company Regaining Efficiency
    • What makes employee leave :-Job is not what the employees expected to beJob and person mismatchNo growth opportunitiesLack of appreciationLack of trust and support in co-workers, superiors and managementStress from work and work life imbalanceCompensationNew job offer
    • Employee retention strategiesEmployee retention strategies:-:-Hire the right people in the first placeEmpower the employees: Give the employees the authority to get things done.Make employees realize that they are the most valuable asset of the organization.Provide them information and knowledgeKeep providing them feedback on their performanceRecognize and appreciate their achievementsKeep their morale high.Have faith in them, trust them and respect them.Create an environment where the employees want to work and have fun.To be continued…
    • These practices can be categorized in 3 levels: Low, medium and high level. Which arementioned below.
    • Retention myths :-Employees leave an organization for more payIncentives can increase productivityEmployees run away from responsibilitiesLoyalty is a thing of the pastTaking measures to increase employee satisfaction will be expensive for theorganizations
    • Benefits of AttritionBenefits of Attrition :-:-Attrition is not bad always if it happens in a controlled manner. Some attrition is alwaysdesirable and necessary for organizational growth and development. The only concern ishow organizations differentiate “good attrition” from “bad attrition”. The term “healthyattrition” or “good attrition” signifies the importance of less productive employeesvoluntarily leaving the organization. This means if the ones who have left fall in thecategory of low performers, the attrition in considered being healthy.Attrition rates are considered to be beneficial in some ways:•If all employees stay in the same organization for a very long time, most of them willbe at the top of their pay scale which will result in excessive manpower costs.•When certain employees leave, whose continuation of service would have negativelyimpacted productivity and profitability of the company, the company is benefited.•New employees bring new ideas, approaches, abilities & attitudes which can keep theorganization from becoming stagnant.To be continued….
    • •There are also some people in the organization who have a negative and demoralizinginfluence on the work culture and team spirit. This, in the long-term, is detrimental toorganizational health.•Desirable attrition also includes termination of employees with whom the organization doesnot want to continue a relationship. It benefits the organization in the following ways:It removes bottleneck in the progress of the company It creates space for the entry of new talents It assists in evolving high performance teams
    • RETENTION SUCCESS MANTRASRETENTION SUCCESS MANTRASTransparent work cultureQuality of workSupport employeesFeed backCommunication between employers and employees
    • ATTRITION RATEATTRITION RATEoverall attrition rate of 16% in 2005. Attrition rate was 14% in 2004 and 10% in 2003.According to Hewitt’s Attrition and Retention Study Asia Pacific 2006, the no.1 reasonfor this growing attrition rate is compensation unfairness. 21% of the organizationswho took part in the survey said that their employee left the organization because theygot offers from other organizations offering better pay packages. The no. 2 reason wasless growth opportunities and no. 3 reason was role stagnation.The study also revealed that the top employee retention strategy being used by theorganizations in Asia was to pay above the industry standards, providing opportunitiesto employees to learn new skills, and provide work life balance.To be continued…
    • ATTRITION RATEATTRITION RATEThe study also revealed that the topThe study also revealed that the topemployee retentionemployee retention strategy being used bystrategy being used bythe organizations in Asia was to pay abovethe organizations in Asia was to pay abovethe industry standards, providingthe industry standards, providingopportunities to employees to learn newopportunities to employees to learn newskills, and provide work life balance.skills, and provide work life balance.
    • According to the employees, attrition at the professional/supervisor/technical level was the highest(39%) and lowest at the senior/top management level (1% approximately).
    • Inspite of being IT giants, these 3 companies are facing high attrition rates. They are facingproblems in retaining their employees irrespective of the fact that they are providing anattractive compensation packages to their employees. Satyam, infosys faced high attrition rateas compared to TCS.To be continued….
    • HOW TO MANAGE RETENTIONSHOW TO MANAGE RETENTIONSThe task of managing employees can be understood as a three stage process:1. Identify the cost of employee turnover2. Understand why employee leave3. Implement retention strategies
    • HOW TO INCREASE EMPLOYEEHOW TO INCREASE EMPLOYEERETENTIONRETENTIONFour basic factors that play an important role in increasing employee retention include salaryand remuneration, providing recognition, benefits and opportunities for individual growth.But are they really positively contributing to the retention rates of a company? Basic salary,these days, hardly reduces turnover. Today, employees look beyond the money factor.
    • Employee retention can be increase by inculcating thefollowing practices:Employee reward programCareer development programPerformance bonusRecreational facilitiesGifts at some occasionsOpen communicationRetention bonus
    • ROLE OF MANAGER IN RETENTIONSROLE OF MANAGER IN RETENTIONSManagers and team leaders can reduce the attrition levels considerably by creating amotivating team culture and improving the relationships with team members. This canbe done in a following way:Creating a motivating environmentStanding up for the teamProviding coachingDelegationExtra responsibilityFocus on future career