Employee retention

Employee retention refers to the ability of an organization to retain its employees. It can be represented by a simple statistic (for example, a retention rate of 80% usually indicated that an organization kept 80% of its employees in a given period). However, many consider employment retention in their workforce. In this sense, retention becomes the strategy rather than the outcome.

A distinction should be drawn between low-performing employees and top performers, and efforts to retain employees. Employee turnover is a symptom of deeper issues that have not been resolved, which may include low employee morale , lack of a clear career path, lack of recognition, poor employee-manager relationships or many other issues. A lack of satisfaction and commitment to the organization can also cause an employee to withdraw and begin looking for other opportunities. Pay does not always play a role in inducing turnover. [1]

In a business setting, the goal of employers is usually to decrease employee turnover, thereby decreasing training costs, recruitment costs and loss of talent and organizational knowledge. By implementing lessons learned from key organizational behavior concepts, they can improve retention rates and decrease high turnover. However, this is not always the case. Employers can seek “positive turnover” they are interested in maintaining high performance.

Cost of turnover

Employees have shown that they can not afford to pay more than 50-60% of the employee’s annual salary, but the total cost of turnover can reach as high as 90-200% of the employee’s annual salary. [2] These costs include candidate views, new hire training, the recruiter ‘s salary, separation processing, job errors, lost sales, reduced morale and a number of other costs to the organization. Turnover also affects organizational performance. High-turnover industries such as retailing, food services, call centers, elder-care nurses, and salespeople make up a quarter of the United States population. These jobs are more stable, employment fields can still reach over $ 500 per employee. [3]

Herzberg’s theory

An alternative motivation theory to Maslow’s hierarchy of needs is the motivator-hygiene(Herzberg’s) theory. Theories have overlap, but the fundamental nature of each model differs. While Maslow’s hierarchy implies the addition or removal of the employee to the satisfaction of the employee, the satisfaction of the employee is greater than that of the employee. Herzberg’s system of needs is segmented into motivators and hygiene factors. Like Maslow’s hierarchy, motivators are often unexpected bonuses that foster the desire to excel. Hygiene factors include expected conditions that will dissatisfaction. Examples of hygiene factors include bathrooms, lighting, and the appropriate tools for a given job.[4]

Retention programs

It is important to first pinpoint the root cause of the retention issue before implementing a program to address it. Once identified, a program can be tailored to meet the unique needs of the organization. A variety of programs exist to help increase employee retention. [5]

Career Development – It is important for employees to understand their career paths within their organization to motivate them to remain in the organization to achieve their personal career goals. Through surveys, discussion and classroom instruction, employees can better understand their goals for personal development. With these developmental goals in mind, organizations can – and should – offer their career opportunities to their employees.

Executive Coaching – Executive coaching can be used to build competencies in leaders within an organization. Coaching can be useful in times of organizational change, to increase a leader’s effectiveness or to encourage managers to implement coaching techniques with peers and direct reports. The coaching process begins with an assessment of the individual strengths and opportunities for improvement. The issues are then prioritized and addressed. Assistance is then provided to encourage the use of newly acquired skills.

Motivating Across Generations – Today’s workforce includes a diverse population of employees from multiple generations. As each generation holds different expectations for the workplace, it is important to understand the differences between these generations regarding motivation and commitment. Managers, especially, must understand how to handle the differences among their direct reports.

Orientation and Onboarding – An employee’s perception of an organization is one of the most important factors in the organization of the organization. [6] It is in the best interest of the employee and the organization to impart knowledge about the company quickly and effectively to integrate the new employee into the workforce. In addition, providing continual reinforced learning through extended onboarding over the first year can increase new hire retention by 25%. [7] By implementing an effective onboarding process, new hire turnover rates will decrease and productivity will increase.

Women’s Retention Programs – Programs such as mentoring, leadership development and networking By implementing programs to improve work / life balance, employees can be more engaged and productive while at work. [8]

Exit Interview and Separation Management Programs

Retention tools and resources

Employee Surveys – By monitoring employees, organizations can gain insight into the motivation, commitment and satisfaction of their employees. It is important for organizations to understand the perspective of the employee in the context of the problem.

Exit Interviews – What to do in the process of employee separation, organizations can gain valuable insight into the workplace experience. Exit interviews allow the organization to understand the triggers of the employee’s desire to leave the aspects of their work that they enjoyed. The organization may use this information to retain their talent. Exit interviews must, however, ask the right questions and elicit honest responses from separating employees to be effective.

Employee Retention Consultants – An employee retention consultant can assist organizations in the process of retaining top employees. Consultants can provide expertise on how to best identify the issues within an organization that are related to turnover. Once identified, a consultant may suggest programs or organizational changes to address these issues and may also assist in the implementation of these programs or changes. [9]

Join, stay, leave model

For organizations and employers, understanding the environment is the first step in developing a long-term retention strategy. Organizations should understand why employees join, why they stay and why they leave an organization. This join, stay, leave is akin to a three-legged stool.

Why employees join – The attractiveness of the position is usually what entices employees to join an organization. However, recruiting candidates is only half the problem while retaining employees is another. Understanding what your employees are looking for in the process of making sure your expectations are both important in the hiring process. [10]High performing employees are more likely to be retained when they are given realistic job previews. Organizations that attempt to oversell the position of the company or the company in which they are employed. To assess and maintain retention, employers should mitigate any immediate conflict of misunderstanding in order to prolong the employee’s longevity with the organization. New-hire surveys can help to identify the breakdowns that occur when the job is not necessarily what they envisioned. [11]

Why employees stay – Understanding why employees stay with an organization. Recent studies have suggested that they work in their professional and community life, they develop a web of connections and relationships. These relationships get started by leaving a job; this would be sever or rearrange these social networks. The more embedded employees are in an organization, the more they are likely to stay. [12]Additionally, the lesser chance they will seek elsewhere. Organizations can ascertain interview by interview with top performers. A stay survey can help to take the pulse of an organization’s current work environment and its impact on their high performing employees. Employers who are concerned with overcoming issues can make the most of the results they are experiencing and are working with. [1]

Why employees leave – how do you understand the reasons behind why employees leave, organizations can better manage their future workforce and influence these decisions in the future. Oftentimes, it is low satisfaction and commitment that initiates the withdrawal process. If correctly, exit interviews can provide a great resource. Typically, employees are stocked in their responses because they fear being reprimanded or jeopardizing any potential future reference. [11]The most common reasons for better payday loans These Typical Answers By asking questions and questions about how to behave, and how to obtain answers to questions. Contrary to what most organizations believe, they are often uncomfortable expressing their organization directly. [11] Retention Diagnosis is a rapid benchmarking process that identifies the costs and can help uncover what affects employee loyalty, performance and commitment. [13]

Best practices

By focusing on the fundamentals, organizations can go to 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 areas of employment within the company. Research has shown that it is important because the employee is still adjusting and getting acclimated to the organization. Companies are good at being employees of choice.

Recruitment – Presenting applicants with realistic job previews during the recruitment process have a positive effect on retaining new hires. Employees who are transparent about the positive and negative aspects of the job, and are stronger and stronger. [1]

Selection – There are several tools that can help predict job performance and later retention. These methods are used in the evaluation of these methods, and they are used in the evaluation of these methods. For example, using biographical data during selection can be an effective technique. Biodata empirically identified life experiences that differentiate those who stay with an organization and those who quit. Life experiences associated with employees may include tenure on previous jobs, education experiences, and involvement and leadership in related work experiences. [1]

Socialization – Socialization delivered via a strategic onboarding and assimilation program can help new employees become more likely to stay. Research has shown that socialization practices can not be avoided. These practices include shared and individualized learning experiences, activities that allow people to get to know one another. Such practices may include providing employees with a role model, mentor or trainer or providing timely and adequate feedback. [1]

Training and development– Providing ample training and development opportunities for disconnecting turnover and keeping employees well and well-established for future growth opportunities. In fact, dissatisfaction with potential career development is one of the top three reasons employees (35%) often feel inclined to look elsewhere. if they are not given opportunities to continually update their skills, they are more likely to leave. Those who receive more training are less likely to receive training. Employees who can not afford to be more marketable and thus increase their turnover, which is less transferable to other contexts. Additionally,[1]

Compensation and rewards – Pay levels and satisfaction are only modest predictors of an employee’s decision to leave the organization; 53% of employees often look elsewhere because of poor compensation and benefits. Organizations can Explicitly link rewards to retention (ie vacation hours to seniority , offer retention bonus payments or Employee stock options , or define benefit scheme payouts to years of service) [14] Research HAS shown That defined compensation and rewards have associated with follow tenure. In addition, organizations may also look at these increased decision-making autonomy.

Effective Leaders – An employee’s relationship with his / her / his / her immediately ranking supervisor or manager is also important Supervisors need to know how to motivate their employees and reduce cost while building loyalty in their key people. Managers need to reinforce employee productivity and open communication, to coach employees and provide meaningful feedback and inspire employees to work as an effective team. [15]In order to achieve this, organizations need to prepare managers and supervisors to lead and develop effective relationships with their subordinates. Executive Coaching can help increase an individual’s effectiveness as a leader in climate change, trust and teamwork in an organization. to encourage supervisors to focus on retention among their teams, organizations may be included in their organization’s evaluation.

Employee Engagement – Employees who are satisfied with their jobs, enjoy their work and the organization, believe their job to be more important, take pride in the company and feel their contributions are being . Engaged employees give their companies crucial competitive advantages, including higher productivity and lower employee turnover.

Outsourcing employee retention program

Turnover costs can have significant negative impact on a company’s performance. Turnover cost can represent more than 12 percent of pre-tax income for the average company and nearly 40 percent for companies at the 75th percentile for turnover rate. [16]Organizations and managers understand the importance of implementing an effective retention program and are not proactive in implementing it. That day hardly ever comes. Organizations that do not have the time or have limited resources. Companies can hire third party specialists to pinpoint the root causes of their workforce challenges. By identifying the root causes, customized action plans can be tailored to your organization’s needs. Another benefit of outsourcing is that organizations can get quantifiable justifying the actions needed to improve their organization.

See also

  • Employee compensation in the United States
  • Equity theory in business
  • Occupational health psychology

References

  1. ^ Jump up to:f Allen, DG (2008). Retaining Talent. Retrieved from http://www.shrm.org/about/foundation/research/documents/retaining%20talent-%20final.pdf .
  2. Jump up^ Cascio, WF 2006.Managing Human Resources: Productivity, Quality of Work Life, Profits(7th ed.). Burr Ridge, IL: Irwin / McGraw-Hill. Mitchell, TR, Holtom, BC, & Lee, TW 2001. How to keep your best employees:
  3. Jump up^ “Lost Labours” . The Economist . The Economist . Retrieved 18 January 2015 .
  4. Jump up^ Breaugh, James A., and Mary Starke. “Research on Employee Recruitment: So Many Studies, So Many Remaining Questions.” Journal of Management (2000): 305-434. Web. Mar. 12, 2011.
  5. Jump up^ “Talent Wars: The Struggle for Tomorrow’s Workforce” (PDF) . The Economist . Economist Intelligence Unit . Retrieved 18 January 2015 .
  6. Jump up^ Partnership for Public Service, Getting On Board: A Model for Integrating and Engaging New Employees, “2008
  7. Jump up^ “Employee Onboarding Program Strategies | Chronus” . Retrieved 2015-08-31 .
  8. Jump up^ http://www.retensa.com/services/employee-retention-program.php
  9. Jump up^ “Retensa – Employee Retention Strategies that Reduce Staff Turnover”. Retensa .
  10. Jump up^ “3 Proven Ways to Make Your Company More Attractive” . Randstad USA . Randstad USA . Retrieved 18 January 2015 .
  11. ^ Jump up to:c Hash, Susan (2012). Getting a handle on agent turnover. Contact Center Pipeline
  12. Jump up^http://www.shrm.org/templatestools/toolkits/pages/managingforemployeeretention.aspx
  13. Jump up^ “Benchmark, Forecast, and Solve Workforce Issues” .
  14. Jump up^ Managing for employee retention. http://www.shrm.org/templatestools/toolkits/pages/managingforemployeeretention.aspx
  15. Jump up^ “Retensa – Employee Retention Strategies that Reduce Staff Turnover”. Retensa .
  16. Jump up^ “Measure Cost Of Turnover, Solve Turnover Problems” .

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