Employee Retention Today's problem

By Pabitra Gartaula

Employee Retention

EMPLOYEE RETENTION “ Human Asset-A valuable Asset

Introduction 

Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project”.

REASONS WHY EMPLOYEES LEAVE 

• Job is not what the employee expected
• No growth opportunities
• Lack of appreciation
• Lack of trust and support
• Stress from overwork
• Compensation
• New job offers
• No personal life
• Physical strains

Benefit of Employee Retention 

• The Cost of Turnover.
• Loss of Company Knowledge
• Interruption of Customer Service
• Turnover leads to more turnovers.
• Goodwill of the company.
• Regaining efficiency.

Retention involves five major things 

1. Compensation
2. Environment
3. Growth
4. Relationship
5. Support

Compensation constitutes the largest part of the retention process. The employees always have high expectations regarding their compensation packages.

Compensation includes: 

• Salary and wages.
• Bonus.
• Health Insurance
• After retirement benefits.

ENVIRONMENT 

• Environment is another factor that contributes to employee retention.
• A motivated employee wants to contribute to work areas outside of his specific job description.

GROWTH 

• Growth is an integral part of every individual’s career.
• If an employee can not foresee his path of career development in his current organization, there are chances that he’ll leave the organization as soon as he gets an opportunity

RELATIONSHIP

• Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization.
• The management is often not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships.
• A supportive work culture helps grow employee professionally and boosts employee satisfaction.
• There are times when an employee starts feeling bitterness towards the management or peers, which leads to less satisfaction and eventually attrition.

Support 

Employees today are asking for a work place that helps them balance the demands of their work and family lives, rather than forcing them to choose one over the other. Schemes like

• special schemes for their children
• Scholarships
• medical benefits
• Training etc.

What Makes Employee Leave? 

• Job is not what the employee expected to be.
• Job and person mismatch
• No growth opportunities
• Lack of appreciation
• Lack of trust and support in co-workers, seniors and management
• Stress from overwork and work life imbalance.
• Compensation.
• New job offer.

Employee Retention Strategies

• Growth opportunities
• Attractive Package
• Personnel Training
• Recreation
• Grievances
• Hire the right people in the first place
• Empower the employees: Give the employees the authority to get things done.
• Make employees realize that they are the most valuable asset of the organization
• Have faith in them, trust them and respect them
• Provide them information and knowledge
• Keep providing them feedback on their performance
• Recognize and appreciate their achievements
• Keep their morale high
• Create an environment where the employees want to work and have fun
• Hire the right people from the beginning
• Provide environment of trust
• Provide convenience at workplace
• Employee support

Retention Myths 

• Employees leave an organization for more pay
• Incentives can increase productivity
• Employees run away from responsibilities
• Loyalty is outdated
• Taking measures to increase employee satisfaction will be expensive for the organizations.

Attrition is bad

• If all employees stay in the same organization for a very long time, most of them will be at the top of their pay scale, which will result in excessive labor costs. When certain employees leave, whose continuation of service would have negatively affected productivity and profitability of the company, the company is benefited.
• There are also some people in the organization who have a negative and demoralizing influence on the work culture and team spirit. This, in the long-term, is detrimental to organizational health
• New employees bring new ideas, approaches, abilities & attitudes that can keep the organization from becoming stagnant.
• Desirable attrition also includes termination of employees with whom the organization does not want to continue a relationship. It benefits the organization in the following ways
• It removes bottleneck in the progress of the company.
• It creates space for the entry of new talents.
• It assists in evolving high performance teams.

Employee retention is crucial for the long – term health and success of the business. Managers readily agree that retaining best employees ensures customer satisfaction, product sales, satisfied co-workers, goodwill of the organization etc. 

Briefly, “if you truly respect, appreciate and treat your employees wonderfully, you will never lose them”! 

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