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M. TULASINADH IIMBA K.B.N COLLEGE VIJAYAWADA.
Abstract
Retention of key employees is critical to the long-term health and success of any organization. It is a known fact that retaining the best employees ensures customer satisfaction, increased sales, satisfied colleagues and reporting staff, effective succession planning, and deeply embedded organizational knowledge and learning. Hence, failing to retain a key employee is a costly proposition for an organization. Corporate is facing a lot of problems in employee retention these days. Hiring knowledgeable people for the job is essential for an employer, but retaining them is even more important than hiring. There is no dearth of opportunities for a talented person; there are many organizations which are looking for such employees. If an employee is not satisfied with the job he is doing, he may switch over to some other more suitable job. The top organizations are on the top because they value their employees and know how to keep them glued to the organization. For gone are the days when employees would stick to an employer for years to get increment and promotion. Employees today are different. They are not the ones who dont have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next one. So in todays dynamic and competitive environment it becomes very important for organizations to retain their employees. In the present study an attempt has been made to explore the various aspects of employee retention, why is it needed, basic practices, myths and strategies etc. This study is based on primary as well as secondary data collected from the reliable sources and the results shows that what employees strive for, is open mindedness and transparent work culture.
INTRODUCTION
Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. It 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. Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees to remain employed, by having policies and practices in place that address their diverse needs. Retention of key employees is critical to the long-term health and success of any organization. It is a known fact that retaining the best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning, and deeply embedded organizational knowledge and learning. Employee retention matters, as organizational issues such as training time and investment, lost knowledge, insecure employees, and a costly candidate search are involved. Hence, failing to retain a key employee is a costly proposition for an organization. Various estimates suggest that losing a middle manager in most organizations costs up to five times his salary. Corporate is facing a lot of problems in employee retention these days. Hiring knowledgeable people for the job is essential for an employer, but retention is even more important than hiring. There is no dearth of opportunities for a talented person. There are many organizations which are looking for such employees. If a person is not satisfied by the job hes doing, he may switch over to some other more suitable job. In todays environment it becomes very important for organizations to retain their employees. The top organizations are on the top because they value their employees and they know how to keep them glued to the organization. Intelligent employers always realize the importance of retaining the best talent. Retaining talent has never been so important in the Indian scenario; however, things have changed in recent years. In prominent Indian metros at least, there is no dearth of opportunities for the best in the business, or even for the second or third best. Retention of key employees and treating attrition troubles has never been so important to companies. In an intensely competitive environment where HR managers are poaching from each other, organizations can either hold on to their employees tight or lose them to competition. For gone are the days when employees would stick to an employer for years for want of a better choice.
Now, opportunities are abound. Employees stay and leave organizations for some reasons. The reason may be personal or professional. These reasons should be understood by the employer and should be taken care of. The organizations are becoming aware of these reasons and adopting many strategies for employee retention. A strong retention strategy, therefore, becomes a powerful recruitment tool.
All these factors including some contingent ones lead to the attrition by the employees. Actually some people may think that money is the only cause, but it is not always true. Psychological and social maladjustment is equally responsible for the employees to leave the organization which is a response to his physical environment.
Despite years of research that point to far different solutions, many companies use the wrong tactics when trying to improve employee morale, satisfaction and retention. These myths prevail, in part, because businesses have used these methods, however wrong, for a very long time and have become used to trying the same ideas. A few of such myths are: a. People most often leave a company for more pay. b. Incentive programs produce long-term profits and improve productivity and morale. c. People dont want more responsibility. d. Loyalty is dead. e. Improving employee satisfaction is expensive. f. Employee satisfaction is fluff. g. My company/industry/people are different!
Quality of Work LifeProviding quality at work not only reduces attrition but also helps in reduced absenteeism and improved job satisfaction. Not only does QWL contribute to a company's ability to recruit quality people, but also it enhances a company's competitiveness. Common beliefs support the contention that QWL will positively nurture a more flexible, loyal, and motivated workforce, which are essential in determining the company's competitiveness.
SupportProviding support to the employees acts as a mantra for retraining them. The management can support employees directly or indirectly. Directly, they provide support in terms of personal crises, managing stress and personal development. Management can support employees, indirectly, in a number of ways as optimizing employee engagement, coaching & mentoring etc.
Open Communication: A culture of open communication enforces loyalty among employees. Open communication tends to keep employees informed on key issues. Most importantly, they need to know that their opinions matter and that management is 100% interested in their input.
Employee Reward Program: A positive recognition for work boosts the motivational levels of employees. Recognition can be made explicit by providing awards like best employee of the month or punctuality award. Project based recognition also has great significance. The award can be in terms of gifts or money.
Career Development Program: Every individual is worried about his/her career. He is always keen to know his career path in the company. Organizations can offer various technical certification courses which will help employee in enhancing his knowledge.
Performance Based Bonus: A provision of performance linked bonus can be made wherein an employee is able to relate his performance with the company profits and hence will work hard. This bonus should strictly be productivity based.
Recreation facilities: Recreational facilities help in keeping employees away from stress factors. Various recreational programs should be arranged. They may include taking employees to trips annually or biannually, celebrating anniversaries, sports activities etc.
Retaining key personnel is critical to long term success of an organization. A Retention Strategy has become essential if your organization is to be productive over time and can become an important part of your hiring strategy by attracting the best candidates. In fact, some companies do not have to recruit because they receive so many qualified unsolicited submissions due to their history of excellence in employee retention. How do you get your employees to "fall in Love" with your organization? This is a great question. Some of the suggestions for this can be summarized as follows: a) Hire the right people in the first place. b) Empower the employees: Give the employees the authority to get things done. c) Make employees realize that they are the most valuable asset of the organization. d) Have faith in them, trust them and respect them. e) Provide them information and knowledge. f) Keep providing them feedback on their performance. g) Recognize and appreciate their achievements. h) Keep their morale high. i) Create an environment where the employees want to work and have fun. j) Treat your employees like you treat your most valuable clients.
k) Get your employees to "Fall in Love" with your organization. l) Retention is much more effective when you put the right person into the right job.
m) Know the job! Know the employee and their motivations. n) Leadership must be deeply invested for retention. o) Money is important but it is not the only reason people stay with an organization. Understand this fact & act accordingly. p) Recognition, in various forms, is a powerful retention strategy q) Know the trends in benefit packages. Do your best to offer the ones your employees need.
CONCLUSION
Employees comprise the most vital assets of the company. In a work place where employees are not able to use their full potential and not heard and valued, they are likely to leave because of stress and frustration. They need transparent work environment to work in. In a transparent environment where employees get a sense of achievement and belongingness, where they can best utilize their potential and realize their skills. They love to be the essential part of such organization and the company is benefited with a stronger, reliable work-force harboring bright new ideas for its growth. REFERENCE
Taylor Stephen (2002), The Employee Retention Handbook, The Cromwell Press
Phillips J. J, Edward Lisa (2008), Managing Talent Retention, John Willey & Sons Publications
McCooey D et al, (2009), Keeping Good Employees on Board- Employee Retention Strategies to navigateany Economic Storm, Wordclay Publications
Websites
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