Introduction Problem Statement All companies want to be able to retain their employees because it benefits the company in the long run. Today there are many companies with high employee turnovers. Employee turnover is the number of employees you hire to work for your company. When you have a high employee turnover it means that you cannot keep employees for a long amount of time, therefore you are constantly hiring new people. High employee turnover is a problem for most companys and this is something that needs put to an end before it gets out of control (Goessl). High employee turnover, increases expenses and also has a negative outcome on the companies self-esteem (Scott). Ignoring the problem would not help the company. Therefore, creating an employee retention program is a helpful way of making sure great workers remain employed while maintaining job performance and productivity (Scott). It is said that a person will go through 15-20 job changes during a 50-year career in the 21st century. That is something an employer does not like to hear, because that means they would have to replace workers on an average every 3-4 years. That’s why having happy employees will allow the turnover rate to be lower and will produce good work for their company (Jackson). Preview of Report In the following pages of this report, I am going to discuss the benefits of retaining employees. For instance, how it saves companies money, how it has better productivity, competitive advantages, and the retention rates on how to know if your company has a high or low turnover rate of employees. I am also going to discuss strategies for companies to use to keep your retention rates low, like employee support, career advancement, pay and benefits, and over... ... middle of paper ... ...>. Goessl, Leigh. "Benefits of Retaining a Good Staff." Inside Business. N.p., 04 01 2009. Web. 10 Apr 2014. . Jackson, Brandon. "The Benefits of Retaining Employees." Customer Think. N.p., 13 6 2012. Web. 10 Apr 2014. . Lumpur, Kuala. "“Job Hopping a Bad Career Move If Done Frequently”, Say Employers ." JobStreet.com. N.p., 2 5 2013. Web. 12 Apr 2014. . "Retention: Advantages & Strategies." Ask EARN. N.p.. Web. 10 Apr 2014. . Scott, Sherrie. "Why are Employee Retention Strategies Important?." Chron. N.p.. Web. 10 Apr 2014. .
Human Resources practices retention for the massive cost and time taken it has to replace and hire new employees. Hiring has such a high cost for the facts of ensuring all new employees meet the expectations and requirements for a business. Not only do new employees have to meet the company’s expectations but also pass employment tests, physical exams, and background checks (Nickels (290-346). They also consider consumers habits and help form solutions to meet the businesses and consumer’s needs to keep up the company up to date. (Alper (112-113). Human resource personnel also help companies evolve with new innovations. Human resources help establish future labor by helping the companies find employees that meet the new requirements. Human resources personnel also forecast future requirements for organizations that way they can ensure trained people will be on hand for the organizations (Nickels (290-346). “In the future, human resource management may become the firm’s most critical function, responsible for dealing with all aspects of a business’s most critical resource: people” (Nickels (290-346). Human resources not only has a future of importance, but its past shows its importance now. From being responsible for only one department to being in many and still predicted to grow to being in charge of many more
...and promote retention. The key is to motivate and develop to avoid the risk for turnover.
Employee turnover represents a practical problem to an organization in terms of loss of talent and additional recruitment and training cost. Only a few studies have explored the effects on intention to leave (i.e. Daily & Kirk 1992) . Therefore, the underlying process through with organizational perception leads to employee turnover remain largely unknown. I am not going to consider gender, age or race in this study. I am not going to consider individual employee titles. I am not going to study samples of over 60 people. I am not going to divide HR non-exempt employees by individual HR departments.
Employee retention strategies help organizations. They provide effective employee communication to improve commitment and enhance workforce support for key organization initiatives. Retention strategies build customer loyalty by distinguishing and positioning an organization’s unique products and services in today’s crowded marketplace.
A review of employee motivation theories explains the retention and behavior of an employee within the organization. Throughout this essay, I will provide you examples of SAS inc, and how using employee motivation theories can help you succeed. Why is it necessary to keep employees? Fitz-enz (1997) stated that the average company loses approximately $1 million with every 10 managerial and professional employees who leave the organization.(Sunil Ramlall, Book)
In the past, Irontown Inc. has gone through the process of developing a short-term staffing plan and redeveloping their candidate assessment and selection procedures to better fill their customer service representative (CSR) positions. Now, they are wanting to develop a retention plan that will support their overall staffing strategy for their company. The new retention plan is vital because they have decided to retain their customer service department (CSD) internal, hopefully reducing their turnover rate by 20% per year over the next three years. If Irontown’s new retention program meets their objectives by the end of the first year, they are going to invest in a new CRM software program. Irontown’s HR department has requested the last 120 employees who left voluntarily to participate in an exit interview. They will collect data from these interviews, form focus groups, determine what the issues are, and then use this information to develop a retention plan that supports the overall staffing strategy of the company. While evaluating this case study, this author will take a look at the key and underlying issues, the facts that affect these issues, recommend a solution and a plan implementation, and conduct follow-ups.
Palmer, W. W., & Dean, C. C. (1973). Increasing Employee Productivity and Reducing Turnover. Training & Development Journal, 27(3), 52.
Keeping a high turnover rate, companies will continue to lose money until they decide to deal with the issue. Through some adjustments and implementations of the programs to lower turnover rates, the company can see a significant change in their costs and what they might actually save.
Employee Retention – How to Retain Employees - Small Business - WSJ.com. (n.d.). Retrieved April 8, 2014, from http://guides.wsj.com/small-business/hiring-and-managing-employees/how-to-retain-employees/
...g employees and keep them committed to the job can be a tough job for organizations and the HR function. Retaining talented individuals that are familiar with their work culture and practices, than making them redundant and recruit them later in future also benefits organizations. As an example we can look at the measures taken by Aer Lingus, who implemented a “leave and return” policy, where they gave employees a lump sum severance payment and made them rejoin on a reduced wage (Gunnigle et al, 2013). This policy is quite important for an organization because rather than taking a more short term approach of cutting jobs and losing on talent and recruiting them again in future, companies should keep long term strategy in mind and look for ways to retain talent within their organization and try adjusting them into different roles, while keeping them motivated enough.
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.
As I researched and viewed my topic, I realized that retention is broader then I thought. All along I thought retention was just about retaining employees but I found out the system to retain employees and it’s factors. I found the key elements that effect retention to be very interesting. I didn’t know that retention can be broken down into to 3 dimensions which are social,mental,and physical. The social consist of the contact with people, mental consist of work characteristics, and physical consist of working conditions and pay. These three elements show that retention can be broken down psychologically. Since the terms can be broken down psychologically, it allows an employee to look into retention more closely. I
...7). Retaining is Draining: Motivating Student Employees to High Performance and Longevity. Staff Development, 5(1), 93-101.
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.
If you ask 5 different leaders what employee retentions is you may come ups with 5 different responses. Employee retention first began to appear in the 1970s and 1980s. Before that time the relationship between employer and employee was very simple. “You come work for me, do a good job, conditions allow, I will continue to employee you.” (McKeown, 2002, pg. 4). Simple right? The practice of employment before the 1970s was that you entered into the job market and remained with one employer for the duration of your career. As time changed so did the job market, in the 1970s and later, as job mobility and voluntary job changes began to increase, employers found themselves with a new phenomenon to consider: employee turnover (McKeown, 2002, pg. 5). Employee retention became a management tool to counteract the rise of employee