What is Employee retention ? Benefits , Tips

 

Employee retention is the goal of every organization keeping their productive and talented workers and reducing turnover rates by providing a good work environment to promote engagement, providing good pay, and encouraging healthy work-life balance. (Baker, 2020)

42 Million American citizens leave their jobs voluntarily in 2019 alone. if these trends continue by 2023 more than 0ne in three leave their jobs. (Holiday, 2021)

In the US companies have spent over 1 Trillion dollars to replace those who voluntarily leave their jobs. (Holiday, 2021)

Why do Employees leave?

Employees might leave the organization due to various reasons a company can conduct an exit interview on employees leaving then they can make necessary changes in the retention strategies.

1 . Inadequate salary

2 . Lack of recognition

3 . Not happy with management

4 . Overworked and unfair deadlines

5 . New job opportunities.

6 . Concern about the company's financial health

 

Effective employee retention strategies

The growth of the company may be harmed by high employee turnover. Employee turnover forces businesses to allocate their resources to find and hire new staff. Consider the strategies that follow to keep staff in the company.

1 . Focus on the hiring process - Choose the right person for the vacant positions, if you choose the wrong person for the task they are likely to leave the job.

2 . Offer a good salary and benefits - Employees will leave if they were not compensated properly. Pay encourages to employees carry out the organization's activities s (Kling, 1995).compensation and benefits are the most financially significant things that fulfill employees' needs. It is the power that motivates employees to complete the task (Gagne, 2014).

3 . Open communication - Management should assess and effectiveness of the programs and inform to the employees and take the necessary actions (Ahmad, 2013).

4 . Employee freedom and flexibility - When an employee has the freedom and flexibility with the job he might not think of leaving the job because some employees prefer working on their own rather than monetary benefits. It's called a degree of freedom when an employee performs a given task (Wang et al, 2013).

5 . Create work objectives - it is important to communicate the objectives of the work employees should know what are they doing professionally .when employees did not understand what they are doing their morale will decrease.

6 . Positive working environment - The work environment reflects a social and professional setting in which employees may engage and carry out their tasks collaboratively(Swamy, 2013). The features of this setting influence how much employees embrace it; the latter reflects the organization's possession of a working environment in which practice, procedures, and regulations are structured to allow employees to achieve organizational goals and personal satisfaction(Disch, 2002).

7 . Continues feedback on performance - Many employees in a business do not receive feedback on their performance. If they do not receive any recognition or comments after so much hard work and late nights, they will be disappointed and consider leaving for a better position.

Benefits of employee retention

1 . Increase employees' loyalty                 

2 . Reduce the hiring costs

3 . Fewer transitions and employees gaps

4 . Good relationship with customers 

5 . Good connection with the staff

6 . Positive company culture.   

Employee retention modules

Over the year of research, researchers build several modules to identify job satisfaction. These modules have had an approach to employee retention over the years. This includes

1 . The Hierarchy of Needs - Abraham Maslow invented this theory in which he explains which need an individual must fulfill first. using this theory an organization can examine employees' job satisfaction. there are five levels of needs n order of importance, are psychological, safety, belongingness, esteem, and self-actualization. 

2 . Motivation hygiene theory - According to psychologist Fredrick Herzberg job satisfaction includes recognition, meaningful work, and personal growth.

3 . Human Motivation Theory -  in the 1961 book the achieving society, psychologists David McClelland built on Maslow's work and identify three human instincts and human needs. those are achievements, power, and affiliation. understand which one is needed by an employee and give him that then it will increase the job satisfaction

4 .  Job characteristic module -  Greg R Oldham and J. Richard Hickman found the following characteristics will increase the job satisfaction of employees. Skills variety, task identity, task significance, autonomy, and feedback.

Conclusion

employee retention is one of the most critical aspects of the organization. Retaining save the best employees of the organization will lead to the overall success of the organization and it will reduce the cost of the business. employee retention is an ongoing process management needs to make efforts continuously.

References

Hussain, D., 2021. Employees Retention Strategy and its Impact on Organizational. Employees Retention Strategy, 10(1), p. 17.

Baker, P., 2020. www.techtarget.com. [Online]

Available at: https://www.techtarget.com/searchhrsoftware/definition/employee-retention#:~:text=Employee%20retention%20is%20the%20organizational,a%20healthy%20work%2Dlife%20balance.
[Accessed 23 April 2023].

Holiday, M., 2021. https://www.netsuite.com/. [Online]
Available at: https://www.netsuite.com/portal/resource/articles/human-resources/employee-retention.shtml
[Accessed 23 April 2023].

Indeed, n.d. www.indeed.com. [Online]
Available at: https://www.indeed.com/recruitment/c/info/9-effective-employee-retention-strategies#:~:text=An%20employee%20retention%20strategy%20is,specific%20needs%20of%20the%20employees.
[Accessed 24 April 2023].