Retention strategies are policies and plans that organizations follow to reduce employee turnover and attrition and ensure employees are engaged and productive long-term.

1. Retention Strategy

2. INTRODUCTION
Employee retention is a process in which the
employees are encouraged to remain with the
organization for the maximum period of time or
until the completion of the project. Employee
retention is beneficial for the organization as
well as the employee’.

3. DEFINITION: RETENTION
STRATEGIES
• Retention strategies are policies and plans that
organizations follow to reduce employee
turnover and attrition and ensure employees
are engaged and productive long-term.
• The key challenge for businesses is ensuring a
retention strategy aligns with business goals to
ensure maximum return on investment.

4. What makes employee leave?
□ Job is not what employee expected.
□ Stress of overwork.
□ Lack of appreciation
□ New job offer.
□ Lack of teamwork.
□ Poor fit with the organizational climate and
culture.
□ Poor alignment between pay and performance

5. Retention Process

7. Key Retention Strategies
❑ Offer Compensation – Attractive And
Competitive:
Fair compensation alone does not guarantee employee
loyalty, but offering below-market salaries makes it
much more likely that employees will look for greener
pastures.
❑ Benefits Need To Be Quantified And Qualitative:
Although benefits are not a key reason why employees
stick with a company, the benefits you offer can't be
markedly worse than those offered by your competitors
and like minded industries. E.g. Medical insurances,
Corporate Credit cards and Discount Coupons

8. ❑ Train your front-line, managers and
administrators:
It can't be said repeatedly that people stay or leave
because of their bosses and not the companies. Improve
managers' leadership, communication and interpersonal
skills through coaching, training and feedback .
❑ Clearly define Roles and Responsibilities :
Make sure your employees know what is expected of
them every day, every month and every year, what
types of decisions they are allowed to make on their
own, and to whom they are supposed to report. Provide
clear vision, and consistent communication, teamwork
and respect for human capital' efforts.

9. ❑ Enhancement, Advancement And Progression
Opportunities.
• To foster employee loyalty, implement a career ladder and
make sure employees know what they must do to earn and go
in for progression. A clear professional development plan
gives employees an incentive to stick around.
• Conduct regular performance reviews to identify employees’
strengths and weaknesses.
❑ Offer retention bonus.
Employee longevity typically is rewarded with an annual raise
and mandatory vacation time after three, five or ten years. But
why not offer other seniority- based rewards such as a paid
membership in the employee's professional association after one
year, a paid membership to a local etc.

10. ❑ Retention strategies implementation needs to have a
process owner.
Measure your turnover rate and identify a process owner
responsible for containing it. If customer returns,
in-house rejections and non-confirming products can
have a process owner as a countermeasure why not a
process owner for implementation of retention strategies?
❑ Teamwork And Cross Functional Teams.
It takes effort to build an effective team, but the result is
greater productivity, better use of resources, improved
customer service and increased morale. Give great
emphasis on cross functional approach as it endorses
acceptance and accountability,

11. ❑ Fun Is Must.
Celebrate successes and recognize when milestones are
reached. Buffet lunches, birthday parties, employee
picnics and creative contests will help remind people
why an organization is a great place to work. Include
fun elements at work like Parties, bashes, outings,
picnics etc.
❑ Offer Growth:
People want to get better. They stay longer at place that
offer education, cross-training, mentoring, tuition plan,
career counseling, advancement and opportunity to run
projects or to act on their own ideas.

12. ❑ Transparency in communication.
Employees are more loyal to a company when they
believe management or those at the helm of affairs
keep them informed about key issues. That means that
you regularly keep our people up to date with important
events affecting the company. If November was good,
let them know, and while you're at it, tell them what
you expect to happen in December.
❑ Encourage higher learning.
Create opportunities for your key performers and
technologists to grow and learn. Encourage every
employee to learn at least one new thing every week,
and you'll create a work force that is excited, motivated
and committed.

13. ❑ Develop an effective induction program.
Implement a formal orientation program that's at least a
week long and includes a thorough overview of every
area of your department and an introduction to other
departments
❑ Value your employees.
Recognize outstanding achievements promptly and
publicly, but also take time to comment on the many
small contributions your staff makes every day to the
organization's vision, mission and growth. DON’T
FORGET — THESE ARE THE PEOPLE WHO
MAKE YOU LOOK GOOD!

14. IMPORTANCE OF RETENTION
STRATEGIES
□ Manage Employee Turnover
Employers implement retention strategies to manage employee
turnover and attract quality employees into the organization. Retention
programs focus on the relationship between management and their
workers. Competitive pay, benefits, employee recognition and
employee assistance programs are all apart of a company's attempt to
maintain employee satisfaction.
□ Cost Effective
A company can significantly benefit from employee retention programs
because of a direct effect on an employer’s bottom line. High turnover
can be very expensive. According to the Society for Human Resources
Management, “employee replacement costs can reach as high as 50 to
60 percent of an employee’s annual salary.” Strategies geared towards
retaining good workers helps offset employee replacement costs and
reduces the indirect costs such as decreased productivity and lost
clients.

15. □ Maintain Performance And Productivity
Employee retention practices help support an organization’s
productivity. Recruiting and training new employees takes time. An
unfilled position means work is not getting done. Even if a position is
filled, there is still a learning curve most employees must overcome
before their work becomes profitable. Taking the necessary steps to keep
current workers satisfied with their roles will ensure productivity is not
interrupted.
□ Enhances Recruitment
Effective retention strategies often begin during the employee
recruitment process. Employees are more inclined to remain with a
company that fulfills the promises made when their employment offer
was extended. Companies that provide a realistic view of their corporate
environment, advancement opportunities and job expectations to new
hires can positively influence employee retention.

16. □ Increases Morale
• Employees that enjoy what they do and the
atmosphere in which they work are more likely to
remain employed with their company. Retention
strategies are important because they help create a
positive work environment and strengthen an
employee’s commitment to the organization.
• Strategies that target employee engagement, such as
team-builders and community involvement, increase
company morale and give employees a sense of pride
in what they do.

17. CASE STUDY
ON
MCDONALD
S
AND

18. MC
DONALDS• McDonald's Corporation is an American fast food company,
founded in 1940 as a restaurant operated by Richard and Maurice
McDonald, in San Bernardino, California, United States. They
rechristened their business as a hamburger stand, and later turned
the company into a franchise, with the Golden Arches logo being
introduced in 1953 at a location in Phoenix, Arizona. In 1955, Ray
Kroc, a businessman, joined the company as a franchise agent
and proceeded to purchase the chain from the McDonald brothers.
McDonald's had its original headquarters in Oak Brook, Illinois, but
moved its global headquarters to Chicago in early 2018.
• McDonald's is the world's largest restaurant chain by
revenue,[serving over 69 million customers daily in over 100
countries across 37,855 outlets as of 2018 .The McDonald's
Corporation revenues come from the rent, royalties, and fees paid
by the franchisees, as well as sales in company-operated
restaurants. According to two reports published in 2018, McDonald's

19. RETENTION STRATEGY
OF MC
DONALD’S• McDonalds provides high levels of training to its
employees working in various positions at the
restaurants. This helps in reducing staff turnover and
lowers the turnover costs. Employees that perform
well are given recognition by awarding them with
‘Employee of the month’. It provides medical
insurance and offers health care.
• McDonalds now gives quarterly bonus to its crew and
manager’s instead of yearly bonus, this was a step
taken towards motivating it’s employees. The
organization gives five weeks holiday per annum and
have increased that to six weeks .
• Computerized English language classes are
conducted; this can be enjoyed by the crew members
between shifts.

20. •McDonald’s aims to provide Apprenticeships to
up to 6000 of its 72,000 UK workforce and later
will be increased to 10,000 from . This will give
the staff an opportunity to gain valuable and
nationally recognized qualification that is
equivalent to five GCSE grade A*-C.
McDonald’s senses the importance of investing
in their staff says the Senior Vice President
David Fairhurst of McDonald’s UK. This has
been done purely to retain the existing staff and
also to attract new ones towards working for
McDonald’s, which, is a global brand name.

21. GOOG
LE
Google is an American multinational technology company that
specializes in Internet-related services and products, which include
online advertising technologies, search engine, cloud computing,
software, and hardware. It is considered one of the Big Four
technology companies,
alongside Amazon, Apple, and Facebook.
• Google was founded in September 1998 by Larry Page and Sergey
Brin while they were Ph.D. students at Stanford University in
California.
• It offers services designed for work and productivity (Google Docs,
Google Sheets, and Google Slides), email (Gmail), scheduling and
time management (Google Calendar), cloud storage (Google Drive),
instant messaging and video chat (Duo, Hangouts), language
translation (Google Translate), mapping and navigation (Google Maps,
Waze, Google Earth, Street View), video sharing (YouTube), note-
taking (Google Keep), and photo organizing and editing (Google

22. RETENTION STRATEGY OF
GOOGLE
• Google’s compensation packages are the
main HRM tool that the company uses for
retaining high-quality human resources.
• The company’s compensation packages
are competitive and above average. For
example, Google provides high salaries
and wages. In addition, employees get
free meals and other incentives and
benefits.

23. •The typical design of the
company’s offices emphasizes
fun and creativity, which attract
and retain creative and innovative
workers.
Google’s human resource
management
uses coaching and mentoring to retain
and develop employees with
leadership potential.