Involves a lot of energy, efforts & resources but the results are "WORTH IT"
As the competition in the market heats up, the acquisition of skills, talents and knowledge becomes a difficult job for the organization. The company feels in pressure when in every management meeting managers come and repeat this excuse for poor performance, then the pain comes out “stop the turnover".
Many of the companies are facing problems in retaining employees. Where recently a survey shows that employee turnover can cost an organization almost 4- 5 times more than an annual employee salary. A study conducted by some B- schools researched that 80% of employee turnover is attributable to blunders committed during the recruitment process. Being an HR professional we need to understand employee turnover is not a disease but it is a symptom of the disease.
Employee Retention is a process in which the employees are encouraged to be with the organization for the maximum time or as of now, until the project gets completed.
Though, employee – employer relationship has undergone a fundamental change, which has implications on the attrition, motivation and retention of talented employees. Employee retention is beneficial for both the organization and employee.
In this era of globalization employees are blessed with good opportunities. As soon as they feel dissatisfied with the current employer or with the job they switch over. It is becoming hard on the employer to retain employees, as the organization would not be left with good employees. Being HR personnel one should know how to attract and retain its employees. A company, which wants to strengthen its bond with its employees, needs to invest in their developments. This involves the creation of opportunities for role enhancement within the company as well as training & skill development that allow employees to enhance their employability in the internal/external employable market.
Employees should be trained and given a chance to improve & enhance their skills. This helps them to perform better and also boosts their self- esteem and commitment towards work.
Employee retention involves five major things:
If an organization is able to focus on all these areas, it can retain employees.
Employees today are different. They are not the ones who don’t have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. If they don’t, they would be left with no good employees. A good employer should know how to attract and retain its employees.
Taking employee retention very seriously companies/ HR personnel have come up with various retention schemes like " Bell Curve method" which means to provide good benefits and incentives to employees those who fall within "critical People" to the organization. Few of them are as under:
Employee Reward program
Career Development program
Performance based bonus
Employee referral plans
According to me, the areas, which affect the retention of employees, are different and vary according to people, for example for me work-environment can be a factor to continue with the company and for someone else compensation can be a factor for discontinuation with the company. As being HR personnel’s we need to understand our employees so that we can provide them with satisfaction. In order to retain employees who fall under "critical people" to the organization, HR can prepare a list of factors, which can affect their retention and can work on them. Once completed successfully on “critical people” this exercise can be implemented on rest of the employees as well.
It is not about managing retention, it is about managing people. The glue is quality work, responsibilities, recognition, respect, growth, opportunities, compensation, support and friendly supervision. If an organization manages its people well, employee retention will be taken well care of. Organization should force on managing the work environment to make better use of their human assets.