Employee Retention involves a lot of energy, efforts, and resources, but the results are "WORTH IT."
As the competition in the market heats up, the acquisition of skills, talents, and knowledge becomes a difficult job for the organization. The company feels pressure when in every management meeting managers come and repeat this excuse for poor performance; then the pain comes out, "stop the turnover."
Many companies are facing problems in retaining employees. A recent survey shows that employee turnover can cost an organization almost 4-5 times more than an annual employee salary. A study conducted by some B-schools researched that 80% of employee turnover is attributable to blunders committed during the recruitment process. As HR professionals, we need to understand that employee turnover is not a disease but a symptom of the disease.
Employee Retention is a process in which employees are encouraged to stay with the organization for the maximum time or until the project is completed. The employee-employer relationship has undergone a fundamental change, which has implications on attrition, motivation, and the retention of talented employees. Employee retention is beneficial for both the organization and the employee.
In this era of globalization, employees are blessed with good opportunities. As soon as they feel dissatisfied with the current employer or job, they switch. It is becoming hard for employers to retain employees, as the organization may not be left with good employees. HR personnel should know how to attract and retain employees. A company that wants to strengthen its bond with its employees needs to invest in their development. This involves creating opportunities for role enhancement within the company as well as training and skill development that allow employees to enhance their employability in the internal/external employable market. Employees should be trained and given a chance to improve and enhance their skills, which helps them perform better and boosts their self-esteem and commitment towards work.
Employee retention involves five major things: Compensation, Environment, Growth, Relationships, and Support. If an organization focuses on these areas, it can retain employees.
Taking employee retention seriously, companies and HR personnel have come up with various retention schemes like the "Bell Curve method," which means providing good benefits and incentives to employees who are critical to the organization. Some of these schemes include Retention Bonus, Employee Reward program, Career Development program, Performance-based bonus, and Employee referral plans.
According to me, the areas that affect employee retention differ and vary according to individuals. For example, for me, the work environment can be a factor to continue with the company, while for someone else, compensation can be a factor for discontinuation with the company. As HR personnel, we need to understand our employees so that we can provide them with satisfaction. To retain critical employees, HR can prepare a list of factors that can affect their retention and work on them. Once successfully completed on critical employees, this exercise can be implemented for the rest of the employees as well.
It is not about managing retention; it is about managing people. The glue is quality work, responsibilities, recognition, respect, growth, opportunities, compensation, support, and friendly supervision. If an organization manages its people well, employee retention will be well taken care of. The organization should focus on managing the work environment to make better use of its human assets.
Please send me your valuable comments so that I can improve...
Thanks for reading.
From India, Ambala
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As the competition in the market heats up, the acquisition of skills, talents, and knowledge becomes a difficult job for the organization. The company feels pressure when in every management meeting managers come and repeat this excuse for poor performance; then the pain comes out, "stop the turnover."
Many companies are facing problems in retaining employees. A recent survey shows that employee turnover can cost an organization almost 4-5 times more than an annual employee salary. A study conducted by some B-schools researched that 80% of employee turnover is attributable to blunders committed during the recruitment process. As HR professionals, we need to understand that employee turnover is not a disease but a symptom of the disease.
Employee Retention is a process in which employees are encouraged to stay with the organization for the maximum time or until the project is completed. The employee-employer relationship has undergone a fundamental change, which has implications on attrition, motivation, and the retention of talented employees. Employee retention is beneficial for both the organization and the employee.
In this era of globalization, employees are blessed with good opportunities. As soon as they feel dissatisfied with the current employer or job, they switch. It is becoming hard for employers to retain employees, as the organization may not be left with good employees. HR personnel should know how to attract and retain employees. A company that wants to strengthen its bond with its employees needs to invest in their development. This involves creating opportunities for role enhancement within the company as well as training and skill development that allow employees to enhance their employability in the internal/external employable market. Employees should be trained and given a chance to improve and enhance their skills, which helps them perform better and boosts their self-esteem and commitment towards work.
Employee retention involves five major things: Compensation, Environment, Growth, Relationships, and Support. If an organization focuses on these areas, it can retain employees.
Taking employee retention seriously, companies and HR personnel have come up with various retention schemes like the "Bell Curve method," which means providing good benefits and incentives to employees who are critical to the organization. Some of these schemes include Retention Bonus, Employee Reward program, Career Development program, Performance-based bonus, and Employee referral plans.
According to me, the areas that affect employee retention differ and vary according to individuals. For example, for me, the work environment can be a factor to continue with the company, while for someone else, compensation can be a factor for discontinuation with the company. As HR personnel, we need to understand our employees so that we can provide them with satisfaction. To retain critical employees, HR can prepare a list of factors that can affect their retention and work on them. Once successfully completed on critical employees, this exercise can be implemented for the rest of the employees as well.
It is not about managing retention; it is about managing people. The glue is quality work, responsibilities, recognition, respect, growth, opportunities, compensation, support, and friendly supervision. If an organization manages its people well, employee retention will be well taken care of. The organization should focus on managing the work environment to make better use of its human assets.
Please send me your valuable comments so that I can improve...
Thanks for reading.
From India, Ambala
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Thank you, Anjali, for this valuable article.
I would like to add some more points to it.
Employee retention is a process in which employees are encouraged to remain with the organization for the maximum period of time or until the completion of the defined project. Employee retention is beneficial for the organization as well as the employee.
Employees today are different. They are not the ones who don't have good opportunities at hand. As soon as they feel dissatisfied with the current employer or job, they switch to the next job. It is the responsibility of the employer to retain their best employees. If they don't, they will be left with no good employees. A good employer should know how to attract and retain its employees. Retention involves compensation, environment, growth, support, and relationships.
After taking exit interviews and analyzing the trend, I can identify the following reasons for movement:
- No growth opportunity or promotion
- Salary hike
- Pursuing higher education
- Misguidance by the company
- Inconducive policies and procedures
- Lack of personal life and physical strains
- Discomfort with the process
- Non-adoptable systems
Nowadays, it is very hard to retain trained staff, but as HR professionals, we have to do our best. There are many things we can do to retain employees, such as:
- Hiring the right person for the right job
- Giving employees the freedom to get things done
- Making employees realize their value as the organization's most valuable asset
- Trusting and respecting them
- Providing timely training and information
- Offering feedback on their performance
- Appreciating their achievements
- Boosting employee morale
- Celebrating milestones and fostering a sense of family among the team
- Creating an environment where employees love to work
That is all from my side.
Keep it up, Anjali!
Regards,
Pankaj Chandan
From India, New delhi
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13I would like to add some more points to it.
Employee retention is a process in which employees are encouraged to remain with the organization for the maximum period of time or until the completion of the defined project. Employee retention is beneficial for the organization as well as the employee.
Employees today are different. They are not the ones who don't have good opportunities at hand. As soon as they feel dissatisfied with the current employer or job, they switch to the next job. It is the responsibility of the employer to retain their best employees. If they don't, they will be left with no good employees. A good employer should know how to attract and retain its employees. Retention involves compensation, environment, growth, support, and relationships.
After taking exit interviews and analyzing the trend, I can identify the following reasons for movement:
- No growth opportunity or promotion
- Salary hike
- Pursuing higher education
- Misguidance by the company
- Inconducive policies and procedures
- Lack of personal life and physical strains
- Discomfort with the process
- Non-adoptable systems
Nowadays, it is very hard to retain trained staff, but as HR professionals, we have to do our best. There are many things we can do to retain employees, such as:
- Hiring the right person for the right job
- Giving employees the freedom to get things done
- Making employees realize their value as the organization's most valuable asset
- Trusting and respecting them
- Providing timely training and information
- Offering feedback on their performance
- Appreciating their achievements
- Boosting employee morale
- Celebrating milestones and fostering a sense of family among the team
- Creating an environment where employees love to work
That is all from my side.
Keep it up, Anjali!
Regards,
Pankaj Chandan
From India, New delhi
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