If the retention period of the employees is of small duration then how will you foster loyalty amongst the staff members? Once the newcomer joins, he/she takes time to settle. Therefore, building loyalty is time taking process. Secondly, what you mean by "loyalty"? Dictionary meaning of loyalty is the act of binding yourself (intellectually or emotionally) to a course of action. How staff members will bind themselves intellectually or emotionally? There has to be conduit and this conduit is organisation's culture in general and leadership in particular.
Nuts and bolts when rusted can be replaced. All that matters is dimension or measurement of nut or bolt should be same. However, humans are different. If one goes then replace it with another and demand the same productivity is not possible.
You need to address this issue of employee retention/attrition. You need to study why employees are quitting. Have you done study of this kind? Earlier I have given my replies several times on this subject. Check the following link:
The following link has different heading and the discussion is also different, however, the reasons that I have given are about employee attrition. Go through this link also:
After going through the above links, find out which reasons are applicable to your company. Thereafter, make action plan to control the attrition. For help if any, you may call me on my mobile.
All the best!
Good pay alone is not enough,the treatment of employee should be equally one of professional care while giving the atmosphere for good work.
Reward and recognition should be a part and parcel of the company working working culture.
Conduct exit interviews seriously and by a higher lvel person so as to understand cause for exit.
If company is seen as a progressive place where both individual and company can grow together,attrition will fall.
Introspect,discuss and find out reasons.
While dream situation can not be achieved,certainly when management genuinely wants a happy work place,a lot can be achieved.
Aim to have first-rate employee incentive programs, ample benefits, career advancement programs, and great work-life balance for keeping employees happy and bottom line soaring.
Difficult but not impossible.Aim for perfect work place and even if you fall short,your work place would be great and employees happy to remain.
I would ask you to share the analysis done about the reasons for the exit.
What drove them away - or what did not hold them back? Once you have this information, then your retention strategies will have more focus.
For eg. if the primary reason is low compensation, and the work is not satisfying, then nothing you do will be effective, unless you first address the work satisfaction, and then the compensation.
If you wish, do call me for a discussion.
Like Ryan Barretto mentioned, it would have been more appropriate IF you would have also mentioned the results of your internal evaluation & analysis of the reason(s)----IF done.
Unless one knows the POSSIBLE causes how would you go about rectifying the problem areas to achieve your objective......consequently, how would the members in this Forum give any actionable suggestions/solutions?
I am NOT being sarcastic when I say this: How would a Doctor treat a patient when he/she goes saying 'I have fever' without carrying-out the relevant tests?
Also, I find there's a bit of a contradictory understanding on the part of your MD. What does "....foster loyalty in the workplace and not concentrate on retention" mean [in REAL terms]? In short, he/she seems to have got the retention/loyalty concept upside-down.
When does anyone 'begin to be loyal' [let alone 'be loyal']? Only AFTER staying in the Company for a reasonable period of time.....right? Doesn't this point to 'retention' being the FIRST step in the process?
And to make the First step happen, you need to KNOW where/how/when to start.
Retention & Loyalty are both interdependent & interrelated.
Hope you get the point.
A few pointers for your analysis could be:
1] You said 'lot of exits within the year'. How many--out of what employee strength?
2] How many of those who joined in the past year are STILL WITH YOU & more importantly WHY?
3] What's the average duration for an employee leaving...joining to leaving?
4] Out of those who left, what's the proportion of those who went AFTER serving the NP & those who absconded?
5] Are there any cases of those who just mailed their resignations & vanished without even bothering to inform their bosses & work handing-over?
6] Is there any formal Exit I/V process in-place?
The more info you can provide, the better & focused would the suggestions from this Forum be.
All the Best.
So without details of your company and complete details of what the environment is, no one will be able to give you the answer. You should probably give this matter to an expert or a consultant who can analyse and give you the correct solution.