Excessive turnover in an organization is a prime indicator that something is not right in the employee environment. We will look at the differences between retention and turnover, why employees stay, reasons why they leave, and what can be done to save them. We will also examine some external factors that will make employee retention and turnover reduction highest priorities for human resource professionals. Basically, employee retention is measured by an employee's longevity with a company, and is the desired outcome of a company hiring workers it wants and needs. Many organizations find it more productive and profitable to redirect resources formerly allocated to recruiting, hiring, orienting, and training of new employees and use them instead toward employee retention programs.
Beck’s Hybrids Recruitment and Selection Process Recruitment and selection impacts the success of every organization. Organizations with effective recruiting and selection result in positive outcomes that affects the products and services, and the perception of the organization. Having the right people for the job will increase profits and decrease costly turnovers. Even though organizations are operating in uncertain times, focusing on staying committed, and making certain they have the best talent will ensure future success. The bottom line of the organization will be impacted by setting a clear direction that employees can get behind, and making sure the right people are hired for the right job.
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.
Talent Retention One of the most important things that a company can strive toward is reducing their turnover by retaining valuable talent. The people a company retains may be the most important question, special programs to hold onto high-producing employees are a wise investment for organizations, across-the-board. Turnover cost is something that all companies need to consistently evaluate. Henemann, et, al. (2012) points out, “Although turnover is often seen as a detriment to organizational performance, there are several positives.
Do Not Show Me the Money: The Growing Popularity of Non Monetary Incentives in the Workplace With the growing decline of economy, more employers are using non-monetary incentives to motivate employees, yielding positive results. While everyone needs money for the expenses of everyday life, most current and long-standing employees rarely view cash as good motivation. If an employer pays fairly, employees desire appreciation and other non monetary rewards in exchange for a job well done. This trend is becoming more popular as businesses explore ways to motivate employees without breaking the budget. The benefits are far greater for business to offer what employees desire: opportunity to grow, flexible hours, recognition, opportunity to contribute, and autonomy, than to compensate employees with cash.
The costs of hiring and training new employees greatly reduces customer loyalty, both significantly will impact profit. The challenge, comprehend the training requirements, formulating who will train and how the process will be trained. The repeated success of a training program must be quantifiable and re enforced. An efficacious training program with continual re enforcement will pay strong dividends in business profit, employee satisfaction and customer loyalty. Process Development Needs Analysis.
There should be some way of connecting pay to job performance. The best way of doing this would be to award bonuses to those workers who are at the top of their class. This would not only motivate workers to do a good job, but also reward the employees that do succeed. TOP EXECUTIVES DESERVE THE MONEY THAT THEY MAKE INTRODUCTION It is a well-known fact that many people holding high positions in companies make an exorbitant amount of money. Some, however, say that they do not deserve the amount that they are paid.
Understanding the reasons people leave is the first real step in addressing the issues of retention and attraction. Once you have a clear understanding of these reasons, you are ready to move to the next stage of developing an attraction and retention strategy to get and hold talented people. The formula for attracting and especially retaining top talent lies in creating a high level of job satisfaction which includes not only the work itself but factors relating to the climate or work environment. One of the most over-estimated reasons companies think they attract and retain top talent is through financial compensation. However, financial compensation is ranked very low by many employees when compared to achieving job satisfaction.
Companies that employ individuals who are capable of multitasking benefit from these employees as the organization see’s a high degree of flexibility and responsiveness with a reduction in operational costs. Companies looking to cut waste in an environment where employees are already stretched thin by performing multiple duties and tasks beyond their job description could find its employees becoming even more overworked and see a larger degradation of performance due to understaffing in an effort to cut costs. These cost-cutting measures could actually do more harm than good to an organization.
Critically evaluate this statement: Managers who rely only on pay to motivate their employees to higher levels of job performance will always be disappointed n the results. Pay is one thing that causes many discrepancies within the work environment. Most employees continue to try and further themselves in work usually with the hope of better pay; fringe benefits i.e. company cars, pensions and so on. There are however, those who show “highly motivated behaviour where economic rewards are low.” This citation agrees with the above statement, however, throughout this essay I will sum up where pay can be seen as a good motivator and where extrinsic benefits fail.