Employee Retention Programme.

Employee Retention.

Figure 1Employee retention (RobertHalf, 2022)

Globalization has a stronger competition for quality employees. Employee retention refers to the process and strategies that an entity implements to keep its top talent by slimming the turnover risks. An employee turnover can be due to both external and internal factors. The HRM can only focus on the internal factors to maximize the employee retention. The company has to implement certain strategies which can motivate the employees so that they opt to retain with in the organizations. An extensive employee retention programme can be a key factor in retaining employees, which on the other hand can reduce the employee turn. These factors can enable an organization to save on recruitment cost, increase in productivity and positively impact on the business performance (SHRM, 2022).

Retention rate formula.

(Remaining Headcount during Set Period ÷ Starting Headcount during Set Period) x 100

Effective measures to retain employees

Recruitment- According to Davis right recruit can optimize the employee retention. Prior to the interview there should be enough clarity on the responsibilities, during the interview make sure to know if the employee would fit the role, organization and the team. Priority should be given to compatibility as equally for qualification.

Macro Management - Micro management can be a challenge for employee retention. According Jaffee immediate managers can directly impact on the employee retention rates. Managers should trust and respect the employees. They also should invest on employee to excel in their professional growth by providing required training and development.

Values-based culture - Make your employees feel that the organization they work for has a mission, the job role makes a significant impact on the company values and mission. An election survey for 3000 employees concluded that 68% of the employees are opting their jobs with other organizations with strong responsibilities (Gartner, Inc, 2022).

Compensation - Pay level is a key factor No matter how well other things are managed, to retain your employee compensation must be competitive and fair. Employer must review the salary regularly, if it is impossible to adjust the salary at present other compensations like bonus, additional leaves, health compensations and pension schemes also can be a motivating factor for retention. "We were surprised to see such a large percentage of American workers who indicated the importance of health coverage in choosing and staying at their job," said Phillip Morris

Training and Development - it is vital for an organization to invest in the employee’s L&D. The area of professional growth of the employee must be identified and allow them to learn new skills and upskill. It is recommended if to provide tuition reimbursement or compensate for the continuing education.

Strategies to retain top performers (Goldberg, 2017)


Benefits of retaining Employees

Figure 2 Benefits of Employee retention (Oracle Netsuite, 2022).

Conclusions

To conclude, as mentioned earlier employee retention depends on both internal and external factors. An organization can implement strategies to retain the top value employee, however this does not mean that employee turnover can be eliminated as the external factors are beyond the control of the organization. In addition an exit interview must be arranged to identify the reasons for the employee leave an organisation.

References

Gartner, Inc, 2022. Gartner. [Online]
Available at: https://www.gartner.com/en/newsroom/press-releases/2021-03-04-gartner-hr-research-finds-sixty-eight-percent-of-employees-would-consider-leaving-their-employer-for-an-organization-that-takes-a-stronger-stance-on-societal-and-cultural-issues
[Accessed 04 Apr 2022].

Oracle Netsuite, 2022. Oracle Netsuite. [Online]
Available at: https://www.netsuite.com/portal/resource/articles/human-resources/employee-retention-benefits.shtml
[Accessed 2022].

RobertHalf, 2022. Robert Half. [Online]
Available at: https://www.roberthalf.com/blog/management-tips/effective-employee-retention-strategies
[Accessed 04 APR 2022].

SHRM, 2022. SHRM. [Online]
Available at: https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/managingforemployeeretention.aspx
[Accessed 03 Apr 2022].

Goldberg, S., 2017. 5 Strategies to Retain Top Performing Employees. [Online]
Available at: https://youtu.be/d3GvZld9UnE
[Accessed 20 April 2022].


Comments

  1. Pasan Nanayakkara7 May 2022 at 00:45

    Talented employees are a valuable asset any business. High turnover rates can be very costly to an organization as training new employees will require additional time and resources. This is a great article that describes methods that HR professional implement in order to increase employee retention. A highly informative article. Well done.

    ReplyDelete
  2. Arjuna Medagama MBA #247 May 2022 at 01:05

    By motivating top-performing employees a company can gain a lot. Even underperforming employees also will get motivated automatically by looking at them. Motivation is also one of the main tools for the retention of employees.

    ReplyDelete
  3. FuardMBA247 May 2022 at 05:09

    Amjad, The long-term strategy is to work to retain employees. When an experienced employee resigns from the company, major changes occur in the productivity of the organization. HR must has a formal system to retain the employee. Well written

    ReplyDelete
  4. Jude Gnanapragasam 7 May 2022 at 12:15

    Organizing consists of grouping people and assigning activities so that job tasks and the mission of a business can be properly carried out. Well discussed. Good luck.

    ReplyDelete
  5. Darshana Undugodage7 May 2022 at 22:54

    Retaining top talent is a big challenge today. To retain them understanding of their expectation is needed. Article clearly showcase the importance of the HRM in achieving this. Good luck.

    ReplyDelete

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