EMPLOYEE RETENTION
EMPLOYEE RETENTION
Employee retention refers to the ability of an organization to retain its employees. For example, a retention rate of 80% usually indicates that an organization kept 80% of its employees in a given period.
However, many consider employee retention as
relating to the efforts by which employers attempt to retain the employees in
their workforce. Successful
employee retention is essential to an organization’s stability, growth and
revenue.
WHY EMPLOYEE LEAVES
It’s important for organizations to reduce turnover rates. In order to reduce these rates, organizations must first understand the main reasons employees leave for other positions. Good people don’t leave good organizations—they leave poor managers!
1. Rude behavior.
Rudeness blame, back-biting, playing favorites and retaliations
are among reasons that aggravate employee turnover. Feeling resentful and
mistreated is not an enticement for a good work environment.
2. Work-life imbalance.
Increasing with economic pressures, organizations continue to
demand that one person do the work of two or more people. Employees are forced
to choose between a personal life and a work life.
3. The job did not meet expectations.
It has become all too common for a job to significantly, assigning
vary from the initial description and what was promised during the interviewing
stage. When this happens it can lead to mistrust.
4. Employee misalignment.
Organizations should never hire employees (internal or external)
unless they are qualified for the job and in sync with the culture and goals of
the organization.
5. Feeling undervalued.
Everyone wants to be recognized and rewarded for a job well done.
It’s part of our nature. Recognition does not have to be monetary. The most
effective recognition is sincere appreciation. Recognizing employees is not
simply a nice thing to do but an effective way to communicate appreciation for
positive effort, while also reinforcing those actions and behaviors.
6. Coaching and feedback are lacking.
Effective managers know how to help employees improve their
performance and consistently give coaching and feedback to all employees.
7. Decision-making ability is lacking.
Organizations need employees to have ownership and be empowered!
Empowered employees have the freedom to make suggestions and decisions.
8. People skills are inadequate.
Many managers were promoted because they did their jobs very well
and got results. However, that doesn’t mean they know how to lead. Leaders
aren’t born—they are made. People skills can be learned and developed, but it
really helps if a manager has a natural ability to get along with people and
motivate them. Managers should lead by example, reward by deed.
9. Organizational instability.
Management’s constant reorganization,
changing direction and shuffling people around disconnects employees from the
organization’s purpose.
10. Raises
and promotions frozen. .
Raises and promotions are often frozen for economic reasons but
are slow to be resumed after the crisis has passed. Organizations may not have
a goal to offer the best compensation in their area, but if they don’t, they
better pay competitive wages and benefits while making their employees feel
valued! This is a critical combination.
11. Faith
and confidence shaken.
When employees are asked to do more and more, they see less
evidence that they will ultimately share in the fruits of their labor. When
revenues and profits increase along with workload, organizations should take
another look at their overall compensation packages.
- Growth opportunities not
available.
A lot of good talent can be lost if the
employees feel trapped in dead-end positions. Often talented individuals are
forced to job-hop from one company to another in order to grow in status and
compensation.
(peoriamagazines.com, 2009)
As important as it is to
understand the reasons that drive employees to leave an organization, it is
just as important to understand why valuable employees stay.
Studies have suggested
that employees become embedded in their jobs and their communities and as they
participate in their professional and community life, they develop a web of
connections and relationships, both on and off the job.
Leaving a job would
require severing or rearranging these social and value networks. Thus, the more
embedded employees are in an organization, the more likely they are to stay. (SHRM, 2022)
KEY RETENTION STRATEGIES AND BEST PRACTICES
- Offering competitive pay.
Research what the competition is paying so the relationship can
start strong. Compensation can include pay
raises, one-time cash bonuses and profit sharing.
- Scheduling social time for employees.
Institute practices that allow employees to have fun at work to
build camaraderie, increase productivity and inspire loyalty. Even if you’re
meeting virtually, build-in time to play games or share funny stories.
- Allowing employees time to volunteer.
Employees find value in employers who give back to the community
and those employees are 13 times more likely to look forward to coming to work. Give employees time
off to volunteer during the day.
- Holding regular performance reviews.
Performance reviews that are held quarterly, semi-annually and
annually give managers the ability to help employees be better at their jobs.
Measuring performance lets the employee set goals, understand what’s expected
of them and even offer rewards for meeting their goals.
(Sandage E, 2020)
By focusing on the fundamentals,
organizations can go a long way towards building a high-retention workplace.
Organizations can start by defining their culture and identifying the types of
individuals that would thrive in that environment. Organizations should adhere
to the fundamental new hire orientation and on boarding plans. Attracting and
recruiting top talent requires time, resources and capital. However, these are
all wasted if employees are not positioned to succeed within the company.
Research has shown that an employee's first 10 days are critical because the
employee is still adjusting and getting acclimated to the organization.
Companies retain good employees by being employers of choice
REFERENCES-
Journal of Leadership, Accountability and Ethics Vol. 12(2) 2015
https://fortune.com/2018/02/09/bank-of-america-giving-back/
Shrm India Corporate Information
https://www.peoriamagazines.com/
https://www.netsuite.com/
Human resources is most important for the success of an organisation and high labour turnover is a major issue faced by organisations nowadays. This is a timely article which well describes the concept of employee retention. All the Best!
ReplyDeleteDilini Karunaratne
Thank you Dilini
DeleteYou have clearly explained why employees leave organizations, what makes them stay and what strategies need to be adopted to retain employees in organizations. Good article about employee retention.All the best!!
ReplyDeleteThank you Gayan
DeleteYou have discussed about one of the most important topic these days. Really a valuable article. Good luck & all the best.
ReplyDeleteThank you Chathura
DeleteYou have clearly describe why employees leaves a company as well as why employees don't leave the company. Really Valuable topic for the HR Managers.
ReplyDeleteThank you Sachni
ReplyDeleteYou defined well what is employees retention.I think through motivated employees is very powerful & successful for retention too.
ReplyDeleteagreed and thank you Vajira
DeleteWent through the blog you have clearly show why employees are leave for the organisation and stay with the organisations and also key retention strategies and best practices.👍
ReplyDeleteThank you Lakshitha
DeleteStaff retention is always best when the staffs are loyal, smart and hard working. Loosing a staff with these qualities will be a loss. And recruitment for new staff and training will be an additional cost to the company. good work
ReplyDeletetrue...Thanks Amjad..
DeleteYou have clearly indicated the reasons why workers leave and stay in businesses, as well as the methods that must be implemented to keep people in organizations. Great!!
ReplyDeleteThank you Uditha
DeleteYou have described the Key retention strategies and best practices in an organization. Also you clearly mention that why the employees are moving from their work place. Also well explain about to retain the employees in an Organization.
ReplyDeleteThank you Rifkana
DeleteThis is an eye opener for many HR Professionals. Employee retention is very deep topic to discuss, and this article contains the key elements to retain the staff. All the best
ReplyDeleteThank you Humaidh
ReplyDeleteEmployee retention is very important in any organisation due to successful employee retention is essential to an organization’s stability, growth and revenue.
ReplyDeleteGood luck...
Thank you Nishantha
DeleteAn important topic to discuss about.
ReplyDeleteEmployee retention is a area that all employers are concerned about.It directly effect to the stability and the performance of an organisation. In this article its cleary discribed the reasons for employee movements and the strategies to retain employees.
Good job Venushka..Well done!
Thank you Anuradha
DeleteThis is a very timely topic and you have explained it very well. In addition, the remedies to be taken and the importance for the institution have been stated very accurately. Well done Venushka!
ReplyDeleteThank you Suranga
DeleteBefore retain employees, The HR team must understand why they leave organization?. you have explain it in your article perfectly
ReplyDeleteThanks Chathurika
DeleteThe peoples are leaving Organization due to several reasons and you pointed and no missed even single reasons. you have pointed each & every reasons of this topic & i learned many things related Human resources management.
ReplyDeleteDimunge Wasantha.
Thank you Wasantha
Deletevery valuable topic for the current situation in organizations. this is very important for the HRM. they have to understand these points correctly to get a better performance in there organizations. well explained article and good luck!
ReplyDeleteThank you Aparna
DeleteWith the pandemic, it's a topical and valuable article, and most organizations are emphasizing it. Otherwise, the cost of workforce turnover will rise.
ReplyDeleteThank you Asiri
DeleteAs you mentioned, turnover can have a negative impact on your company's results. High employee turnover causes plenty of issues, including increased costs, knowledge loss, and lower productivity. Constant management attention is necessary, as an understanding of why people leave and how to reduce it. Staff retentions should not be neglected.
ReplyDeleteThank you Nilike
DeleteThe article clearly listed out why employees stay with the organization or leaving the organization. Leaders can pay attention on these factors and find the sustainable solutions to retain the employee with organization for longer period.
ReplyDeleteThank you Asela
DeleteRetention of talanted employees are very challenging front in HRM and this article clearly mentioned the ways which organisations can use to retain best employees within the organisation
ReplyDeleteThank you Amila K
DeleteEmployees are can be identified as the most important part of an organization and retaining skilled employees is real challenge in the present context. You elaborate the all the reasons that employee are tend to leave including reward and career development opportunities. on my point of view I think creating equal opportunities for career development within the organization can also use as employee retention strategy. Explained well and good luck
ReplyDeleteA topic that fits the present. Today, the number of employees leaving the company is very high. This is directly due to the current recession in Sri Lanka. In this blog you have given very detailed step by step information about employee retention and also informed us about the reasons why employees leave the companies as well as how to retain them. Very good article. Best of luck.
ReplyDeleteThank you Kumudu
DeleteEffective employee retention can save an organization from productivity losses. High-retention workplaces tend to employ more engaged workers who, in turn, get more done.
ReplyDeleteNicely done Venushka!
Effective employee retention can save an organization from productivity losses. High-retention workplaces tend to employ more engaged workers who, in turn, get more done.
ReplyDeleteVery good writing Venusha.
Important for organizations to reduce turnover rates. In addition, Strong hiring, training, and onboarding programs, Improving employee retention rates can start along with your hiring process.
ReplyDeleteAdditionally, Employee recognition programs, Consistent feedback, Provide clear career paths and growth opportunities and Offer flexible work options.
When employees are loyal, intelligent, and hardworking, they are more likely to stay. Loosing a staff with these qualities will be a loss. Additionally, the organization will incur additional costs for new employee recruiting and training. good work
ReplyDeleteYou have clearly stated why employees quit companies as well as why they do not leave companies. HR Managers will find this a very useful topic.
ReplyDeleteRetaining 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.
ReplyDeleteA major asset to any organization in the world are a talented workforce. The retention of well trained and loyal employees are an important aspect that HR department try to achieve as high turnover rates can be very costly to an organization as training new employees will require additional time and resources. A highly informative article regarding employee retention with practical methods is increasing the retention rate of a organization. Well done.
ReplyDelete