In a world that is recovering constantly from economic crisis, where companies are struggling to stay afloat, and where those same companies are always trying to find ways to cut operating expenses, retention is a huge thing. Retention or attrition is and always has been a hot topic issue for Human Resource managers and all businesses. It is in the companies best interest once they have selected and trained an individual to a particular role to take steps to insure that the employee stays there to keep costs low. On top of this, it up-roots a few other underlying problems, one of the biggest problems that a low retention rate and a high attrition rate will tell you is that a business is not creating an environment that people are satisfied working in, being as this is the number one driver of attrition and reducer of retention. Throughout this paper we will discuss the issues of retention and bring to light how much money not retaining employees can cost a company. Additionally we will explore what drives attrition and how to over come those issues, so that a company can retain its employees and cut operating costs. Attrition has and probably always will be that elephant in the room at every organization. It not only cost the company money, but it also detracts a lot of promising potential if there is a negative reputation for a company. Attrition is so important to keep down for a couple reasons; obviously cost is the main reason. Every time an employer loses and employee it is going to cost the company money. This cost is incurred mainly with just finding and training a replacement for the lost employee, but it is also incurred in loss of productivity that the employee would have increased had they originally remained. The ac... ... middle of paper ... ...rganization should make the employees feel that employees are most valuable for the organization. By enforcing appropriate HR practices and policies, organization can instigate this feeling amid their employees.” To me this shows that there is more to retaining employees than just money or benefits, as this explains the nature of the job and type of employees you have will really dictate to you and the company what type of programs or recognition you should be doing because it is right for your company and your employees. If you give your employees a voice where they can feel heard and you can honestly attempt to keep them satisfied through their suggestions as a leader and as a corporation you will successfully see your turnover/ attrition rates drop and your retention rate rise. When this occurs you have achieved your goal and the company becomes more profitable.
Employee motivation and rewards are effective means to retain employees. When an employee is motivated, his or her needs are being met. When an employee is unmotivated, his or her needs are not being met which results in a high employee attrition rate. Riordan Manufacturing is experiencing a high attrition rate. Riordan Manufacturing has 3 plants and employs 550 people. Recently, Riordan hired Human Capital Consulting to perform an analysis on the underlying issues that are causing the decreasing employee satisfaction and to recommend courses of action that will address the underlying issues. Research has been done to identify the issues and opportunities, the stakeholders and ethical dilemmas, and the end state vision. A gap analysis has also been performed to determine the gap between the current situation and the end state goals. Riordan Manufacturing will use this information to determine the best way to proceed towards improving its working environment for the employees.
...vironment by establishing a reward and recognition system to reward employees for their special efforts. Managers do not like to tell people that their positions are being eliminated. In fact, many managers, consider conducting a RIF as the most difficult task they will have in their careers. Therefore, it important that the organization carefully prepares and conducts a RIF with thoughtfulness and respect to minimize the potential damage to employees.
In a business or a workplace, it is essential for the organization, which consists of the employers, the managers, and their employees, to work towards reward programs within the human resources in order to create a healthy and cordial work environment and most importantly, to efficiently achieve business’ goals. In Carol Patton’s (2013) article, Rewarding Best Behaviors, she explains the importance of several companies that are beginning to recognize their employees, not just for the end-results, but for reflecting good behaviors towards the business’ values, such as demonstrating creativity on certain projects, problem solving towards certain issues, and also collaborating with fellow co-workers. Patton stresses that these reward programs could help suffice the overall being of a company as long as the rewarded behaviors correlate with the corporate strategy. Patton expresses that some things human resources must comprehend include “how its company creates success, what drives its business strategy and what behaviors are needed from employees to achieve that success” (Patton, 2013 para. 15). Moreover, the employee would be reflected as a role model for others and perhaps influence them to demonstrate comparable behaviors.
In conclusion, this organization should focus more on their employees and less on profitability. This reasoning comes from the idea that efficient and appreciated employees will dictate the future of an organization through their quality of work and their outlook on the company they work for. Implementing rewards for employees and showing appreciation towards them will make them feel honored to work for such a company. In addition, word of mouth from employees will dictate in the inflow of new or current customers. If employees are treated fairly and respectfully, they are more likely to recommend their place of employment for shoppers. Finally, the implementation of a hybrid culture will benefit the company by meeting the needs of the employer, employees and customers alike.
If you drill down on the survey, the employees note that they do not feel appreciated, feel lack of support from management, and they do not feel the company supports the employees overall professional growth. With this culture, it will be difficult for the company to retain and recruit employees. In fact, on a companywide prospective, the organization has a 55% turnover rate, specifically with nurses and therapist. This is where the premise of my project lies. I believe that if employees are motivated and rewarded for their efforts, the overall health of the company will be propelled forward, specifically the financial aspect. In my opinion, just reducing the amount of turnover alone, will be huge cost savings to the firm. The objective in the end is to evaluate the P&L after the motivational tactics have been rolled out and presented for an undefined period of time at this
...esigned to realize the dream alive. Therefore, to ensure success in achieving these goals, the appreciation is important . If the lack of appreciation given to employees then there will be a decline in driving organizational productivity. If acknowledgment is given the workers themselves would feel appreciated when their welfare is not compromised. Employers should not underestimate the welfare of workers. Employees who are satisfied with the compensation and benefits given to them will not cause any problems for the employer . Instead, they will continue to work diligently and indirect labor productivity will certainly increase. So it is clear here that the intrinsic rewards are important parallel with extrinsic reward . Perhaps the workers see the rewards extrinsic more meaningful monetary , in fact, intrinsic rewards are more important as a reward for the future.
Employee turnover costs are very costly to a company. Turnover not only affects the bottom line but also affects the company’s morale. We are analyzing the problems within our company that are causing our employees to become unsatisfied with their job. Then we are going to find solutions. And then do the cost estimates of the turnover costs and the turnover savings after our solutions are implemented.
If the organization succeeds then the employees also succeeds. Employees must see the bigger picture and must feel that they are part of the organization and not just a one man show.
Employee satisfaction, employee turnover, and workplace environment are inseparably linked. Workplace environments heavily influence employee satisfaction, which directly affects employee turnover rates. When employees feel they are not being supported within their first months of hire, they will inevitably leave the company. Employees want to have the security that if they need assistance, someone will be there to guide them. Therefore, it is imperative for organizations to develop a thorough onboarding program and a long-term retention plan.
Voluntary and involuntary turnover have an effect on organizations. Rapid changes in job descriptions, organizational structures, and inter-organizational competitiveness increase the importance of studying turnover and its relationship with organizational change. According to Leana and Van Buren (1999), "the loss of key network members can severely damage an organization 's social fabric and perhaps eradicate its social capital altogether." When businesses lose a high number of employees, problems can occur, costing the company time and money. Some of the costs incurred are associated with training, drug testing, physicals, and orientations to hire replacements that may take several months to learn the job and to achieve competency. There is a saying, “Good help is hard to find---and harder to keep”. This saying refers to good organizations trying to reduce turnover when the competition for retaining good employees is intense.
The succeeding paragraphs will explain how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. In order to maintain their competitive edge, companies need to fully understand that as the needs of their employee’s change, so do their benefit plans. Companies need to find innovative ways of engaging employees that encourage and support their commitment and improve their performance. The first way is by helping the company attract and retain talent. A company is only as good as its workforce, so having an innovative benefit plan will help to attract high potential candidates and also retain them within the organization.
...and promote retention. The key is to motivate and develop to avoid the risk for turnover.
In large organisation, competition is not only in the market for goods and services but also for the quality of employees. As such, a large organization can only become attractive to the most skilled and high quality workers if it has an effective compensation and benefit plan. The key purpose of an effective compensation and benefit system is to provide employees with the right rewards for their work and right behavior in the workplace. Typically, organizational success is determined by the quality of employees an organization has. In turn, the organization can only attract such quality workers and maintain them through effective compensation and benefit
Employee satisfaction is undoubtedly the best predictor of employee retention. A job environment consisting of good working relationships usually fosters employee satisfaction. Employees feel motivated as they believe that the company is appreciating their service and commitment. Job satisfaction results in employee retention. Employee retention could be defined as the length of time employees stay with the organization.
Employee turnover in organization is one of the main issues that extensively affect the overall performance of a workplace (Tariq, Ramzan and Riaz, 2013). Various studies show that employee turnover negatively affect the overall efficiency at the organization (Tariq, Ramzan and Riaz, 2013). Xiancheng, (2013) mentioned the employee turnover is a method of personal issues who decided to stop associate with the company for better advantage. There are two types of turnover which are voluntary and involuntary turnover. Voluntary turnover can be defined as the termination of the official and the psychological contract between the employee and employer (Krausz, 2002; Macdonald, 1999; Mclean Parks et al, 1999; Rousseau, 1995) while involuntary turnover inescapably lead to direct negative results such as current job is insecurity, work difficulty, and status fluctuation (Gowan and Gatewood, 1997). However, other researchers such as Haven-Tang and Jones, (2012) concluded poor management, lack of salary, bad working environment and paucity of job opportunities could be the highest causes of turnover among organization. This statement was support by Kusluvan et al., (2010) where is they had stated that poor management, low payment of salary, work environment and lack of employees’ job opportunities on the organization will make employee want to quit from their job. Turnover intention situation will appear when labour had feeling that they want to quit from current job, so voluntary and involuntary turnover will become final stage for them as their decision (AlBattat and Mat Som, 2013) but it is different for researchers such as Mosadeghrad, Ferlie and Rosbenberg (2013) when they conclude that employee turno...