This document discusses employee retention in organizations. It notes that 81% of organizations see turnover as negatively impacting effectiveness. Employee retention refers to policies that encourage employees to stay longer. Reasons for low retention include low job satisfaction from issues like poor performance reviews, lack of recognition, and unrealistic expectations. Reducing turnover requires efforts from HR, team leaders, and the organization to promote job fit, work-life balance, appreciation, and compensation. High retention brings benefits like experience and trade secret protection, while low retention risks losing skills and a domino effect on morale.

1. Employee Retention
“81% of all organizations perceive
turnover as having a negative effect
on their effectiveness”.

2. What is an Organization ?
• A set up where individuals come together and
work in collaboration to achieve a common
goal is called as organization.

3. 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.

4. 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.

5. 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.

6. Reasons for low Job Satisfaction

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. 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.

14. Conclusion
Employees are the major assets of any
organization.
An organization must work hard towards
retaining those who really are important for
the organization.