A STUDY ON EFFECTIVENESS OF EMPLOYEE RETENTION WITH REFERENCE TO
VIJAY AQUA PIPES(P) LTD
INTRODUCTION In order to retain employees and reduce turnover
managers must learn to align their goals with the end goals of
employees. By aligning the rewards and needs of employees, managers
can determine the proper reward system to most effectively increase
job satisfaction of employees. Valence is the degrees in which the
reward offered by an organisation aligns with the need of employees
seek to fulfil. High valence indicates that the needs of employees
are aligned well with the reward system an organisation offers.
Conversely, low valence is a poor alignment of the needs with
reward and can lead to low job satisfaction and thereby increase
turnover and decrease retention. Expectancy theory implementation
has several other aspects that can lead to high job satisfaction
and high retention rates for organisations. Promote activities
which bring the employees closer. Organize outdoor picnics,
informal get together for the employees to know each other better
and strengthen the bond among themselves. Let them make friends at
the workplace whom they can really trust. Friendship among
employees is one strong factor which helps to retain employees.
Individuals who have reliable friends at the workplace are
reluctant to move on for the sake of friendship. No one likes to
leave an organization where he gets mental peace. It is essential
to have a cordial environment at the workplace. Retention of key
employees is critical to the long-term health and success of any
organization. It is a known fact that retaining your best employees
ensures customer satisfaction, increased product sales, satisfied
colleagues and reporting staff, effective succession planning and
deeply imbedded organizational knowledge and learning. Employee
retention matters as organizational issues such as training time
and investment; lost knowledge; insecure employees and a costly
candidate search are involved. Hence failing to retain a key
employee is a costly proposition for an organization. Various
estimates suggest that losing a middle manager in most
organizations costs up to five times of his salary. Intelligent
employers always realise the importance of retaining the best
talent. Retaining talent has never been so important in the Indian
scenario; however, things have changed in recent years.
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SCOPE OF THE STUDYThis study helps an organisation to gain
additional knowledge about various retention techniques. This study
points out the opinion of the employees in terms of their
satisfaction with the current retention strategy practices. The
study is essential for the organisation it would assist them in
effective decision making. This study assists the organisation in
providing recommendations and suggestions on the improvement of
employee retention.
OBJECTIVESPRIMARY OBJECTIVES:- To study the effectiveness of
employee retention strategy in VIJAY AQUA PIPES (P) LTD.SECONDARY
OBJECTIVES:- To analyse how the retention of knowledge and skills
of employees permits the long term success of the organisation. To
improve commitment and enhance workforce support for key corporate
initiatives To analyse how it helps an organisation in reducing
turnover cost. To understand the technique helps to maintain a
diverse workforce in the organisation. To study the most important
factors contributing for retention To helps an organisation to
create pleasant work environment both for employers and employees.
To suggest an organisation to improve employee retention.
REVIEW OF LITERATURE THEORETICAL REVIEW:EMPLOYEE RETENTION
STRATEGIES:-For an organisation to do well and earn profit is
essential that the high potential employees stick to it for a
longer duration and contribute effectively An employees look for a
change when his job becomes monotonous and doesnt offer anything
new. It is essential for everyone to enjoy whatever he does.
Constant disputes among employees encourage them to go for a
change. Conflicts must be avoided to maintain the decorum of the
place and avoid spreading negativity around. Employees recognition
is one of the most important factors which go a long way in
retaining employees. Nothing works better than appreciating the
employees. Their hard work must be acknowledged. The salary of the
employees must be discussed at the time of the interview. The
components of the salary must be transparent and thoroughly
discussed with the individuals at the time of joining to avoid
confusions later. Constant disputes among employees encourage them
to go for a change. Conflicts must be avoided to maintain the
decorum of the place and avoid spreading negativity around. Promote
activities which bring the employees closer. Organize outdoor
picnics, informal get together for the employees to know each other
better and strengthen the bond among themselves. Let them make
friends at the workplace whom they can really trust. Friendship
among employees is one strong factor which helps to retain
employees. Individuals who have reliable friends at the workplace
are reluctant to move on for the sake of friendship. No one likes
to leave an organization where he gets mental peace. It is
essential to have a cordial environment at the workplace.
Frustration crops up whenever there is a mismatch. A finance
professional if is hired for a marketing profile would definitely
end up being frustrated and look for a change. The right candidate
must be hired for the right profile. While recruiting a new
candidate, one should also check his track record. An individual
who has changed his previous jobs frequently would also not stick
to the present one and thus should n The human resource department
must ensure that it is hiring the right candidate to be hired.
Employee recognition is one of the most important factors which go
a long way in retaining employees. Nothing works better than
appreciating the employees. Their hard work must be acknowledged.
Monetary benefits such as incentives, perks, cash prize also
motivate the employees to a large extent and they prefer sticking
to the organization. The performers must have an upper edge and
should get a special treatment from the management. Performance
appraisals are also important for an employee to stay motivated and
avoid looking for a change. The salary hike should be directly
proportional to the hard work put by the employees. Partiality must
be avoided as it de motivates the talented ones and prompt them to
look for a better opportunity.
RETENTION POLICIES AND PROCEDURES In Effective succession
planning the employers will seek integrated retention policies and
procedures. These include: Development of early tracking procedures
for promising new hires Tracking of reasons for quits, especially
among the high potential workers On going employee attitude surveys
to provide information for successfulRetention strategies and to
predict turnover Trucking voluntary turnover by department then
focus efforts on the problem areas Providing incentives for people
to remain the with organization- these are not always Financial
(Rothewwll,2001)
REASONS FOR EMPLOYEES LEAVE AN ORGANISATION:- Expectation not
met Mismatch between the person and the role Mismatch between
person and culture of the firm Heavy work load Less or no health or
medical and other benefits Improper leave benefits
THE 3 Rs OF EMPLOYEE RETENTIONTo keep employees and keep their
satisfaction levels high, any organization needs to implement each
of the three Rs of employee retention: respect, recognition, and
rewards.
Respect is esteem, special regard, or particular consideration
given to people. As the pyramid shows, respect is the foundation of
keeping your employees. Recognition and rewards will have little
effect if you do not respect employees.Recognition is defined as
special notice or attention and the act of perceiving clearly. Many
problems with retention and morale occur because management is not
paying attention to peoples needs and reactions.Rewards are the
extra perks you offer beyond the basics of respect and recognition
that make it worth peoples while to work hard, to care, to go
beyond the call of duty. While rewards represent the smallest
portion of the retention equation, they are still an important
one.You determine the precise methods you choose to implement the
three R's, but in general, respect should be the largest component
of your efforts. Without it, recognition and rewards seem hollow
and have little effect or they have negative effects. The magic
truly is in the mix of the three.When implemented, the 3 R's
approach yields reduced turnover and the following benefits:
Increased productivity, Reduced absenteeism, A more pleasant work
environment (for both employees and management/employer), Improved
profits.
Furthermore, an employer who implements the three R's will
create a hard-to-leave workplace, one known as having more to offer
employees than other employers. It becomes a hard-to-leave
workplace one with a waiting list of applicants for any position
that becomes available purposefully, one day at a time. TEN FACTORS
THAT AFFECT EMPLOYEE RETENTION:-Most managers understand the
importance of employee retention and its impact on the overall
health and vitality of an organization. The importance of retaining
top organizational talent will only increase over the coming years
as the massive cohort of baby boomers begin to reach retirement age
making it easy for younger employees to find work.
Earlier, we identified some useful tips to help improve employee
retention in an organization. Given the importance of employee
retention, here is another list of 10 important factors that can
affect employee retention in any organization.1.Shorten the
feedback loop.Do not wait for an annual performance evaluation to
come due to give feedback on how an employee is performing. Most
team members enjoy frequent feedback about how they are performing.
Shortening the feedback loop will help to keep performance levels
high and will reinforce positive behaviour. Feedback does not
necessarily need to be scheduled or highly structured; simply
stopping by a team member's desk and letting them know they are
doing a good job on a current project can do wonders for morale and
help to increase retention.2.Offer a competitive compensation
package.Any team member wants to feel that he or she is being paid
appropriately and fairly for the work he or she does. Be sure to
research what other companies and organizations are offering in
terms of salary and benefits. It is also important to research what
the regional and national compensation averages are for that
particular position. You can be sure that if your compensation
package is not competitive, team members will find this out and
look for employers who are willing to offer more competitive
compensation packages. 3.Balance work and personal life.Family is
incredibly important to team members. When work begins to put a
significant strain on one's family no amount of money will keep an
employee around. Stress the importance of balancing work with
another one's personal life. Small gestures such as allowing a team
member to take an extended lunch once a week to watch his son's
baseball game will likely be repaid with loyalty and extended
employment with an organization.
4.Beware of burnout.Staff adequately to reduce the amount of
unwanted overtime a team member must work. Some employees enjoy the
extra money that accompanies overtime hours, while others would
rather spend their time with their families or doing other
activities they enjoy. Burnout can be a leading cause of turnover.
Recognize the warning signs and give employees a break when they
need it.5.Provide opportunities for growth and development.Offer
opportunities for team members to acquire new skills and knowledge
useful to the organization. If an employee appears to be bored or
burned out in a current position offer to train this individual in
another facet of the organization where he or she would be a good
fit. Nobody wants to feel stuck in their position will no
possibility for advancement or new opportunities.6.The ability to
provide input and be taken seriously.Everybody has opinions and
ideas, some are better than others. However every team member wants
to feel that their input is welcome and will be taken seriously
without ridicule or condescension. Some of the greatest ideas can
come from the most unlikely of places and people. Creating a
culture where input is welcome from all level of the organizational
chart will help your organization grow and encourage employee
retention.7.Management must take the time to get to know team
members.It's not a big surprise that one of the greatest complaints
that employees express in exit interviews is a feeling that
management didn't know they existed. Nobody wants to feel like just
another spoke in a big wheel. Managers are very busy - everybody is
busy, but it is crucial that managers and supervisors take the time
get to know the team members who work under them. Learn and
remember a team member's name, what skills and talents they bring
to the table, and what their business interests are. The time spent
by management getting to know team members is well invested and can
eliminate the headaches caused by having to continually hire and
re-train new employees. 8.Provide the tools and training an
employee needs to succeed.Nothing can be more frustrating to an
employee than a lack of training or the proper tools to
successfully complete his or her duties. You wouldn't try to build
a house without a hammer, so why should an office job be any
different? Providing a team member with the tools and training she
needs to be successful shows a commitment and investment in that
employee and will encourage the team member to stay with the
organization.9.Make use of a team member's talents, skills, and
abilities.All team members have knowledge, skills, and abilities
that aren't directly related to their job description, but are
still useful to an organization. Utilizing a team member's talents
in areas other than their current position will indicate to an
employee that management appreciates and recognizes all that an
employee has to offer to the organization. This can also provide
work variety and helps to break up the everyday grind of work. 10.
Never threaten a team member's job or income.While threatening an
employee with termination or demotion might seem like a sure fire
way to get the results needed from him or her , doing so will
likely cause the employee to leave the organization. Put yourself
in the employee's shoes, what is the first thing you would do if
your job was threatened? Odds are you would probably update your
resume and start checking for open job postings expecting the
worst. If a team member's performance is not what you had hoped it
would be, work with that team member on ways to improve his
performance, saving termination only as a last resort. Take some
time and seriously evaluate what your organization is doing to
encourage a high retention workforce. Having a seasoned and well
trained workforce can deliver a competitive advantage that is
difficult to replicate. HOW TO IMPROVE EMPLOYEE RETENTION:-Over the
years, Engage has implemented a number of policies that serve the
dual purpose of attracting potential employees and keeping current
ones passionate and committed. Here are a handful of examples:
Instead of a traditional vacation policy, the company lets
employees take time off from a leave bank, in which they can
accumulate as many as 60 days off to use as they see fit. This
policy has helped with employee retention, particularly by making
it easier for female employees starting families to take time off
and ultimately return to work.
During the hiring process, Engage administers the DISC
Personality test, which charts the four characteristics, drive,
influence, steadiness, and compliance, to build personality
profiles for new hires. All employees' test results are public
knowledge, which Hoffman feels helps people understand one another
and get along.
By setting quarterly goals with rewards attached, such as iPods
for the whole team or a trip to a nice restaurant, Engage can
encourage employees beyond the competitive, and potentially
divisive realm of salary bonuses. The group nature of these rewards
is important, says Hoffman, because "somebody who is not motivated
by getting an iPod knows that other people in his or her group are
and doesn't want to let them down."
10 Strategic Tips for Employee Retention (Jaime Menor, 2009)1.
Balance work and personal life 2. Competitive compensation package
3. Treat each employee with respect and as an individual 4.
Positive Work environment 5. Eradicate Favoritism 6. Communication
and availability 7. Employee Empowerment 8. Placing the Right
Talent for the Right Job 9. Celebrate successes, big and little and
make the workplace fun. 10. Workplace flexibility
How to Increase Employee Retention (Brad Booysen, 2011)Every
company needs talented, hard-working staff, and the best way to
retain good workers is to keep them happy. That's why having an
employee retention strategy is important. Here are some employee
retention strategies you can use to keep employees "on your
team."1.Encourage communication:Share your company's vision with
staff and make them feel part of the plan. Communicate your
enthusiasm for what your company does so that employees see the
"bigger picture" and how they fit in to it. Have monthly meetings
with employees to get feedback on their job performance.
2.Recognize employee achievements for better employee
retention:Recognize employees who are productive and motivated, and
make them feel part of the business "family" by recognizing
personal achievements. Reward employees as a team for working hard
on a project by hosting a healthy team lunch.3.Keep them
healthy:Healthy employees are more productive. Sponsor health
screening programs to check for health problems. Bring in experts
on nutrition and physical fitness to talk to employees about
staying active and making healthier food choices. A healthy
employee is a more productive one. 4.Reduce stress in the
workplace:Encourage employees to take breaks or take a short walk
outdoors. Keep an open door and encourage employees to discuss
stress-related issues so you can help correct them. Bring in
experts to talk about how to deal with work-related stress. Humor
keeps employees healthy and happy - and that's a good thing when it
comes to employee retention.Employee Retention Plan (Ivo Legenda,
2011)Smart companies develop Employee Retention Plan to improve
their current Employee Retention Rate and develop high performance
organizations. How do you develop your Employee Retention Plan?
First of all you need to identify the most important drivers for
Morale, Loyalty and Satisfaction. Employee Retention Rate depends
on many factors such as overall company environment, company
policies, company culture, work environment, employee development,
etc. Creating High Retention Workforce is the number one priority
of a successful Retention Plan. Improve morale through effective
rewards and recognition system and develop relevant rewards for
your workforce.
Executive Search Firms on Employee Retention Guidelines (Charles
S. Cox, 2012)To start, organizations need to understand that
finding and acquiring talented employees is difficult at the best
of times, and all the more so when the economy is in a slump and
the job market is being flooded with under qualified individuals.
What's more, in order to retain the talent they have, companies
will need to stop seeing these individuals as tools and as
individuals who should be supported and encouraged if they are to
be effective and help the company achieve its goals. To help guide
companies in these endeavors, here are some employee retention tips
courtesy of executive search firms. Keeping Motivated Providing the
Corporate Ladder Developing a Brand Building Relationships Open
Decision Making Take Time to Listen Effective Management Be
Supportive Become More Than a Business Share the Company
VisionPractices That Will Surely Improve Employee Retention in Your
Office (Ashok Grover, 2012)If employee retention is not an issue
with your organization, you need not read any further. There is a
fair chance that either your organization does not belong to this
world or it has perfectly understood and put into practice the
secrets of the trade!For others, all these secrets are revealed
hereunder!1. Having Right People - Before talking about retention,
go back to the basics and select the people you would like to
retain. If enough time and efforts are spent to check not only
technical but behavioral aspect also, result will be the employees
who would like to stay and company would like to retain.2. Good
Salary Levels - Though money is not everything, it is a big
equalizer. Unfortunately, while many companies feel that it is only
the money what matters, there are others who feel that money does
not matter at all. The truth lies somewhere in between and a fine
balancing act is required. 3. Internal Pay Equity - Many a times,
the pain point is not one's lower salary; but comparatively higher
amount being paid to another colleague. I have seen employees
jumping with joy after their increments are announced... till they
know about others. Similarly, a new employee may disturb older
employees who may not be getting similar amounts or vice versa when
the newcomer realizes that he could have negotiated better. All of
them are human beings and there is nothing wrong in comparison. 4.
Benefits Programs and Retirement Benefits - Even in the environment
of CTCs (cost to the company), benefits programs like health
insurance, recreation facilities, family get-togethers and
retirement benefits are extremely important. These make employees
feel part of a close-knit family and remain motivated.5. Role
Clarity - Nothing can be more damaging than a lack of clear job
responsibilities. In such situations, contrary to normal belief,
employees performance is well below expectations, while they feel
that they are much more than they should. So, the result is a
hopeless lose-lose relationship.6. Impartiality - Employees feel
highly de motivated when they feel that they are not treated
equally and favoritism is practiced in the company. This invariably
happens whenever there are policies with clauses allowing
management discretion. 7. Employee Empowerment - Employees perform
much better when they are given the tasks and freedom to perform
the same independently. Workplaces that promote employee
empowerment, employee enablement, and broader spans of control by
managers, will result into superior performance. Micromanaging
drives employees away, empowerment improves retention.8. Responsive
Human Resource Team - Adequate and timely response to employee
queries and concerns by the Human Resource department keeps the
environment healthy. In many companies, the HR department is
perceived as the policing arm of management. A responsive HR
department is one of the strongest reasons to ensure high degree of
employee retention.9. Two Way Communication - Employees feel much
more comfortable when they feel that they are being heard. This
multiplies when they get face-to-face communication opportunity
with their supervisors and are given feedback about their
performance. This communication helps them feel recognized and
important.10. Performance Linked Reward System - Performers believe
that the reward system should be based on merit and contribution.
When some management try to keep all their employees happy through
similar annual increments, it results into demoralization. In such
case, while the status of poor performersIt is essential that
companies interact with their employees to find out such other
things as reasons why they enjoy working with the company and what
are those things about their job profile which is the most
motivating.
REVIEW OF JOURNAL AND ARTICLESThe effort to retain the best
personnel begins with recruiting. Attracting and retaining the best
people are not two different things, but is the same thing. Both
require creating and maintain a positive reputation, internally as
well as externally. Employers must be honest with the recruit about
the beliefs, expectations, organisational culture, demands and
opportunities within the organisation. By representing the
organisation realistically, a department will attract those who
will be content working within the culture (Marx, 2000), Denton
(2000, p.47) follows this up stating that, the better the match
between recruits and the organisation the more likely you are to
retain them. Lynn (2001) believes that you must take time during
the hiring process to make wise decisions. The employer must be
candid about the working conditions, responsibilities,
opportunities and the detail to reduce the chances of making hiring
mistakes. Taylor and Cosenza (2002) strengthen this thought by
noting that it is imperative that companies gives prospective
employees a true picture of the organisation. The literature was
clear in pointing out that if departments want to increase
retention they must start with a solid recruiting process.Retention
is a voluntary move by an organization to create an environment
which engages employees for a long term Chaminade (2004 cited in
Chibowa et al. 2006). According to Samuel and Chipunza (2007), the
most important purpose of retention is to look for ways to prevent
the capable workers from quitting the organization as this could
have negative effect on productivity and profitability. The view
that the main purpose of retention is primarily for organizational
gains is similarly viewed by Humphreys et al. (2007), who in
describing the concept, place the focus of retention in terms of
some notion of adequacy or sufficiency of length of service, which
can be measured in terms of a return on the costs of investment
associated with training and recruitment or the effects on patient
care that are considered to be optimal.
Employee Turnover Gberevbie (2011) referred to frequent labour
turnover as a state of affairs in an organization where it is seen
that employees tend to leave or resign from their jobs because of
best known reasons based on their point of view concerning
personnel policies and practice of a firm. Frequent labour turnover
at work has been found to be causing harm to performance,
especially when employees are going to the direct competitors of
the organization (Chartered Institute of Personnel Development
(CIPD 2012)). The CIPD (2012) further argued that it is essential
for employers to completely understand their labour turnover and
how these affect the organizations effectiveness at achieving their
overall set of goals. This implies that when the staff turnover in
an organization is found to be higher than usual, the performance
of that organization would be relatively low because there will be
a lack of availability of competent employees arising from frequent
turnover of organizational workforce. (CIPD 2012)Excessive staff
turnover is costly for an organization (North et al. 2012). They
added that its effect goes above the financial costs inherent in
the recruitment, selection and training (new employee). Thereby,
Larsen (2000) found that when employees are highly satisfied, they
will remain in the organization, and as a result rising the rate of
retention of that organization.Factors having an impact on employee
turnoverAccording to Foster and Krolik (2008 cited in Stern, 2010)
the five following factors have an impact on employee turnover:A
tactical IT environmentSomehow motivation tends to lose its essence
when organizations are ignorant to the fact that IT forms part of
their organizational strategy and of the employee work particularly
the tactical projects. Employees tend to develop feelings that
their role does not enhance enough value or furnish chances for
them to grow, especially if industry peers are working on new
developments, when they are not provide with the opportunity to
form and carry out strategic initiatives.Factors influencing
employee retentionEmployee retention has been a major concern of
organizations all over the world. Although there has been a common
trend among organizations to outsource work that is routine and
non-core, retaining people at strategically important positions
remains a major concern.A number of factors have been assembled so
as to give explanation of the reasons why employees leave an
organization for others, or in some situations they just leave the
country. Some of the reasons are inappropriate hiring practices,
unprofessional management style, no good recognition, lack of
competitive compensation system, lack of interesting work, lack of
job security, not enough of promotion, inadequate training and
development opportunities and an unhealthy working environment
(Hewitts Associates (2006); Abassi and Hollman (2000); Sherman et
al. (2006)). CHECK REFERENCEHerzberg (1959 cited in Bassett-Jones
and Lloyd 2005) two factor theory argued that employees are
motivated mostly by the internal values rather than the external
values to the work. In other words, Herzberg (1959) stated that
motivation is internally generated and is propelled by variables
that are intrinsic to the work and he called that motivators.
Conversely, certain aspects which cause dissatisfying experiences
to employees are mostly resulting from non-job related variables
(extrinsic).Other researchers have also discovered that the
decisions of employees to leave a firm are influenced by factors
such as salary, work life balance, or career opportunities (Mayer
2006; Abraham 2007; Holland et al. 2007).Moreover, in a study on
employee retention, Sunil Ramlall (2003) suggested that when there
is lack of challenge and opportunity, career advancement
opportunities, recognition, inadequate emphasis on teamwork, no
flexible work schedule, these become the most common reasons for
employees quitting an organization. Consequently, Hannay et al.
(2000) stated that the extent to which the employer has met
employee expectations and the witnessed future opportunities
provided by the employer are seen as the most important variables
for employee retention.At a finishing point, we could deal with
these challenges by introducing retention strategies (Armstrong
2002 cited in Millmore et al. 2007; Mayer 2006; Holland et al.
2007; Prichard 2007) that would aid the organization in keeping the
employees that are in sought after fields.
Retention StrategiesThere are studies which showed that when
right employee retention strategies such as job satisfaction
arising from appropriate rewards (Gomez-Mejia and Balkin 1992;
Heneman and Judge 2003), pay according performance (Griffeth et al.
2000), training and career development (Okoh 1998) and social
community at work are used, this enhances social relations such as
encouraging employee marriages and siblings employment (Ayagi
2001), job security (Chartered Institute of Personnel and
Development (CIPD) 2006), increased level of wage rate and company
image (Taplin et al. 2003) and decision making and sharing of
information (Jike 2003; Riordan et al. 2005) serve as a catalyst in
retaining employees for organizational performance.Holland et al.
(2007, p. 248) suggested that companies should look for workers
possessing scarce specialized skills and must try to retain them.
Also, they added that in order to be able to retain those having
new knowledge and skills for long term, the organizations also must
use effective retention strategies. Similarly, effective retention
strategies are seen as a motivator to workers which improve their
performance at work and this may result in attracting more
qualified people to work for the institution (Naris and Ukpere
2009, p. 883).Furthermore, DeMarco (2007) proposed three retention
strategies to effectively deal with the Generation X work group
that is those born between 1964 and 1977. According to him, the
first one is that communication is vital which includes feedback,
group communication, employee surveys and corporate communication.
Secondly, he added that top management should review issues such as
supervision whereby the manager deals with building of team,
performance management and the development of individuals and
thirdly he concluded that attention should be given to the matter
of generational interest. The researcher even stated that employees
want to know that they are valued and important.Corporate culture
and communication :-According to Becker and Huselid (1999), culture
creates competitiveness since it changes employee behavior by
making them act consistently with the firms desired corporate
culture, thereby influencing employee retention. Other researchers
who investigated the relationship between organizational culture
and employee turnover and retention uncovered similar findings
(Chew et al., 2005; Cho et al., 2006; Milman and Ricci, 2004). For
example, a study by Milman and Ricci (2004) revealed that among the
most powerful indicators to predict hourly employee retention in
the lodging industry were positive experiences with the companys
policies and with the companys humane approach to
employees.According to Arms (2010), Communication is seen as a key.
Even if you speak with your employees regularly, are you telling
them what they need to know? Share your mission, vision, and goals
with them. If theyre expected to help you attain something, they
should at least have an idea of what it is theyre working toward.
Also, many employers dont include staff in discussions of company
performance, assuming that they dont care or need to know. But they
do care, and keeping them informed gives them a feeling of
inclusion and unity that will foster accountability.Moreover,
Sinkin and Putney (2009) states that no simple solutions can
eliminates these retention fears, but one of the most effective
actions is clear and frequent two-way communication in which you
share your firms vision and ask for (and to listen) their opinions.
These actions create an environment in which staff feels someone is
listening, they have input and their opinion counts.Work
environment, Work Life Balance and Job Enlargement:-Professional
practice environments, successful in attracting and retaining
staff, intentionally utilize events and activities that promote
employees social attachment to the workplace community.
(Halbesleben and Wheeler, 2008; Holtom and ONeill, 2004).
Similairly, some companies that actively promote a positive work
environment, and who also value employee contributions while
achieving a true work-life balance have been found to be more
successful at communicating the idea that their employees are one
of their most valuable resources (Hom and Kinicki, 2001; McGrath,
2006; Mitchell, Holtom, Lee, Sablynski, Erez, 2001). Furthermore,
work/life balance factors are also cited as retention factors by
DeMarco (2007) and Gillis (2007).Also, an institution should help
employees maintain a balance between personal and work life
(Dibble, 1999 cited in Netswera, Rankhumise and Mavundla, 2005). He
added that in some institutions, practices such as making childcare
facilities available on the premises and flexi time can make the
difference between keeping and losing an employee. Work/life
policies include flexible work scheduling (e.g. part-time work,
job-sharing, variable starting and quitting times), family leave
policies allowing periods away from work for employees to take care
of family matters, and childcare assistance (e.g. referral service,
on-site or offsite care centres) (Burke & Cooper, 2002).
Similarly, Hytter (2007) stated that some firms have ameliorated in
retaining employees by giving them more flexible working options
and also by offering them other family-friendly
policies.Motivation- (Praise and Trust)According to Glen (2006), it
is possible to retain key skills within highly cash-strapped,
extremely lean organizations; by focusing, as a necessity, on
broader predictors of retention and motivation. He even added that
It is quite conceivable that, for example, certain employee
groupings may be primarily motivated by their personal stake in the
business, career leverage, rewards and recognition, whilst other
groupings may be motivated by a combination of role challenge,
organization values, work environment, and so on. . Anon (2010,
P.13-15), says that While some employees recognize their own
limitations and accept that they are fortunate to have a job of any
description, talented employees can usually shop around for a
suitable employer even in a global economic downturn. Competition
among organizations is not just about customers, it is about hiring
the best people. They need to be tempted and trusted, and hiring
them is just the beginning. Their talent has to be nurtured and
managed and moulded into a form which is an exact fit with the
organizations strategic aims.Anon (2010, P.13-15) also proposed
that Hiring and hanging onto talented staff in economically-trying
times might be tough, but it can be invigorating. It is not all
about providing perks such as healthcare or furloughs though.
Recognizing good work is as important as it ever was. Equally
important is telling people on a regular basis that their work is
good. We all like praise. It is often what motivates us, gives us a
sense of belonging, of being part of the team.Motivation is what
drives people to work. The researcher suggests that in order for
institutions to retain their staff members, they should first find
out what motivates workers to work. Recognition, Rewards and
CompensationMany studies have shown what implications employee
compensation, rewards and recognition have on turnover and
retention (Becker and Huselid 1999, Cho et al. 2006, Milman 2003,
Milman and Ricci 2004, Walsh and Taylor 2007). Furthermore,
numerous research studies found that employee commitment can be
promoted by highly competitive wage systems and thus resulting in
the attraction and retention of a superior labour force (Becker and
Huselid 1999, Guthrie 2001). Also, most of the managers believe
that the prime retention factor is money and many employees
mentioned the reason of better pay or higher compensation for
leaving one employer for another (Mathis and Jackson 2003).
Compensation is said to play a fundamental role in attracting,
retaining and motivating workers (Swanepoel et al. 2003).According
to Arms (2010), although employee recognition is largely important,
it is said to be quite simple to deal with. He added that it is
just a matter of an everyday interaction by saying a simple thank
you to the staff that has gone out of their way. Also, he stated
that an employer must often acknowledge the stress and effort of
employees working on an important and timely project. The author
further added that it is essential for the boss to give them credit
they deserve for work that they have done for the firm and instead
not to give them the impression that the employer is taking credit
for their efforts. He finally concluded by proposing to employers
that they can set up a more formal program for employee recognition
having both the financial rewards such as gift certificates and
intangible rewards that is having a personal parking place,
obtaining summer flexible time and dress code perks.However,
several other research studies have showed that compensation in the
form of base or variable pay may not be sufficient to attract or
retain employees. Milman (2003) and Milman and Ricci (2004)
concluded that the most significant retention predictors included
intrinsic fulfillment and working conditions rather than monetary
rewards. Similarly, the study by Walsh and Taylor (2007) revealed
that although compensation and work-life balance are important, it
is the absence of opportunity for professional growth and
development that affects management retention and turnover (Walsh
and Taylor, 2007).Researchers have found that rewards as provided
by organizations have relationship with job satisfaction and hence
employee retention (Taplin et al., 2003). Rewards help to motivate
and retain competent staff for performance (Okoh, 1998; Bamigboye
and Aderibigbe, 2004; Jerez-Gomez et al., 2005). Heneman and Judge
(2003) argue that for an organization to retain its employees for
performance, it must match its rewards to employees preference. The
match between rewards desired by employees and offered by the
organization is what leads to job satisfaction. And job
satisfaction in turns guarantees employee retention.Others like
Kinnear and Sutherland (2001: 17) assert that managers should not
be deceived that money no longer matters in retaining employees any
longer. They further reiterate the importance of money in
attracting, motivating and retaining quality employees in the
organization and further concluded that skilled employees are
achievement oriented and want their achievements rewarded with
money. However, Amar (2004: 96) argues that money has not remained
as good a motivator as it was in the past. The efficiency of money
as a motivator of skilled employees is quite low.