In today's business world, one of the biggest challenges is keeping up with technological advancements. Companies relationships with their employees are about to undergo radical transformations as a result of fundamental shifts in the work force and the workplace. Employee retention has become a concern for all companies in the current strong job market as we continue to advance at an increasing rate in every field. Talented professionals have a wide range of employment options. The demand for employees' services increases with their skill level. Companies across all industries are increasingly focused on hiring and retaining quality employees.
An employer's concern about retention makes perfect
sense, given the high costs of turnover. In addition to the costs associated
with replacing employees, employers will likely see a decrease in productivity
as the new hire adjusts to the new work environment and becomes productive. To
replace a worker, it can cost anywhere from 50 percent to 60 percent of that
person's salary, according to the Society for Human Resource Management
Why employee retention is important
As a result of disruptions to continuity, loss of
institutional knowledge, and the high cost of replacing departing workers,
organizations with high employee turnover rates may find it difficult to
fulfill their Visions and Missions. Employee departures result in a loss of
productivity and competitive advantage, two of the most significant losses for
an organization. In addition to lowering morale, employee departures can also
encourage more employees to leave the company. Workplace team building and
cohesion depend on employee retention so workers can learn to trust and depend
on each other. Customer dissatisfaction is another downside of turnover.
RETHINKING
RETENTION MODEL
In most organizations, operations management drives
sales, service, quality, and safety, with various staff departments providing
tracking, training, and other services. And the responsibility of handling
Employee retention is usually taken up only by the HR. With this setup,
organizations fail to tackle the problem of employee turnover. Keeping this in
mind, Richard P. Finnegan came up with the ‘Rethinking Retention Model’.
Source: (Finnegan, 2011.) Rethinking Retention in Good Times and Bad
In order to achieve long-term, sustainable
retention, Employee Retention Strategies aims to help organizations understand
the factors that influence employee retention and make the necessary changes.
Employee retention strategies adhere to the
following basic practices
· Hire the right people in the first place
· Promoting Work/Life effectiveness
· 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
· Benefit programs for family support
· Providing conveniences at workplace
· Have faith in them, trust and respect them
· Have Leaders not Bosses
· Provide them information and knowledge
· Keep providing them feedback on their performance
· Recognize and appreciate their achievements
· Keep their morale high
· Create an environment where the employees want to
work and have fun
· Be a Brand they can Proud of
It takes a lot of commitment from the management,
and especially from the executives at the corporate level, to develop craft and
implement these strategies. In the long run, this would certainly pay off in
terms of productivity (Lewis et al,2012).
References
Journal of Accountancy. 2021. Rethinking retention. [online]
Available at:
<https://www.journalofaccountancy.com/issues/2017/may/rethinking-retention.html>
[Accessed 7 August 2021].
Finnegan, R., 2011. Rethinking Retention in Good Times and Bad.
New York: Nicholas Brealey Publishing.
Lewis, Andrea and Sequeira,2012. A. H., Effectiveness of Employee
Retention Strategies in Industry. Available at SSRN: https://ssrn.com/abstract=2167719 or http://dx.doi.org/10.2139/ssrn.2167719 [Accessed 7 August 2021]
SearchHRSoftware.
2021. What is employee retention? - Definition from WhatIs.com.
[online] Available at: <https://searchhrsoftware.techtarget.com/definition/employee-retention>
[Accessed 7 August 2021].
Well said Tharindu. Existing retention models should be changed and should rethink on human quality development approach. During a global pandemic siruation like this , the subject matter is valuable to discuss.
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ReplyDeleteHello Tharindu. Nicely explained the theories. It is very important to the organization to retain the employee, to complete their near by goals. Otherwise its very difficult to find trained employees in sudden way. Job satisfaction is something that working people seek and a key element of employee retention which is
ReplyDeletepossible only by making the employee feel comfortable physically and psychologically.
This is a important topic.. Employee turnover is expensive. Further, Here are the top reasons employees leave and research-backed strategies to make them stay. Employee retention relies on a combination of factors, including flexible work arrangements, benefits, professional development opportunities, advancement opportunities, company culture.. thanks for sharing
ReplyDeleteGood article Tharindu, with more details and theories.
ReplyDeleteThe article clearly explains the factors of the importance of Job retention and strategies used by organizations. also article showed the involvement of HRM in job retention.Thanks for sharing your knowledge
Nice article Tharindu. Retention of a positive and motivated employee is very important for the organization's achievement. Rises Morale − Employees who enjoy what they do and the atmosphere in which they effort are more likely to remain employed with their organization over a longer period of time.
ReplyDeleteelements that affect employee retention are many, and include rewards, conversation, and a feel of motive in the activity. by means of working to discern what personnel need out of a process, an business enterprise can come up with an powerful employee retention plan to help develop a organisation personnel this is content on a long-time period foundation.Thank you for the Article.
ReplyDeleteValuable topic to discuss Thrindu. In your article you have covered all the important areas clearly related to the topic. Positive and motivated employees are assets to the organizations and they drive the organization through the success.Further it reduces employee turnover and increase positive impact of the organization's morale.
ReplyDeleteManaging staff retention includes strategic ways to keep employees motivated and focused so that they will remain employed and fully productive for the benefit of the organization. An effective staff retention program can play an important role in attracting and retaining key employees, as well as reducing turnover and related costs. All of this contributes to enhance the productivity of the organization and to improve operational efficiency of the business as a whole.
ReplyDeleteEvery company spends time and money grooming a new employee, training him to be a corporate ready material, and bringing him up to speed with the existing personnel. When employees leave their employment after completing their training, the firm suffers a full loss. Employee retention takes into account the numerous efforts made to guarantee that an employee stays with a firm for as long as possible.
ReplyDeleteEmployees are the main assets and motivated employees are resourceful asset to the organization and the productive will be very high. Every organization should have the effective motivational strategy based on their nature of business. This reduce the high turnover increase the retention in the long run.
ReplyDeletethank you the Article.A retention strategy is a plan that organizations create and use to reduce employee turnover, prevent attrition, increase retention, and foster employee engagement.
ReplyDelete