Employee retention and business excellence

Saturday, December 10, 2022

Summary

The primary objective of any retention plan is to maintain the lowest feasible turnover rate. Employee retention affects an organization’s performance, productivity, culture, profitability, and customer satisfaction in positive and negative ways (Karatepe, 2013). Moreover, Karatepe (2013) explains that while the high costs of employee turnover make staff retention crucial for an organization's future success, maintaining unsuitable workers might impair progress.

Extensive research and studies demonstrate that a workforce with a high retention rate is highly engaged, works well, and gives superior customer service. In addition, a rich and healthy business culture helps keep employees engaged and mitigates employee retention concerns (Sheridan, 1992).

Improving motivation and retention are two of the most essential human resource management methods for making organizations a better place to work and for achieving organizational efficiency, so it is necessary to make ongoing efforts to improve them. Consequently, the techniques outlined in the paper, notably employee motivation, employee engagement, learning and development, recognition and incentives, job happiness, and work-life balance, have proven to be highly influential in firms with a high staff retention rate.

References

Karatepe, O.M. (2013) “High‐performance work practices, work social support and their effects on job embeddedness and turnover intentions,” International Journal of Contemporary Hospitality Management, 25(6), pp. 903–921. Available at: https://doi.org/10.1108/ijchm-06-2012-0097.

Sheridan, J.E. (1992) “Organizational culture and employee retention,” Academy of Management Journal, 35(5), pp. 1036–1056. Available at: https://doi.org/10.2307/256539.

Work life balance as a strategic approach to retention

Organizations must possess the ability to implement policies to tackle work-life balance, such as flexible scheduling of working hours and hybrid arrangements, to build an atmosphere that can retain employees (Kalliath and Brough, 2008). According to Grzywacz and Carlson (2007), work life balance can be defined as the “accomplishment of role-related expectations that are negotiated and shared between an individual and his/her role-related partners in the work and family domains” Moreover, “achieving satisfying experiences in all life domains and to do so requires personal resources such as energy, time, and commitment to be well distributed across domains” can be defined as work-life balance (Kirchmeyer, 2000).

Similarly, employees who report a good balance between their work life and their personal life outside of work will have higher levels of job performance, job satisfaction, and overall health and well-being (Hooja and Sen, 2018).

Also, according to the research study conducted by Brough et al. (2020), the outcomes of maintaining better work-life balance has described as “when employees perceive themselves as having an acceptable level of work–life balance, they experience positive work-related outcomes due to the accumulation of resources, increase in self-beliefs to achieve goals, positive spillover of resources from the non-work to work domain, and reciprocity of favorable treatment to the organization” (Brough,2020). Work-life balance, as defined by Dasgupta and Arora (2011), is achieved by decreasing work-related stress, which in turn increases productivity and company growth.

However, the negative effects of a poor work-life balance can be regarded as the key cause of high employee turnover and will also lead to under-performance, high employee absenteeism, as well as recruiting and training costs (Department of Trade and Industry, 2001).

Work-life balance policies are becoming increasingly vital to the success and longevity of any organization as more individuals recognize its significance in attracting, motivating, and retaining exceptional employees (Garg and Yajurvedi, 2016). Work-life balance has a direct impact on an employee's decision to stay or leave a company, so it is critical for employees to have a healthy and balanced work-life (Deery, 2008).

O'Driscoll (1996) established five fundamental work-life balance models, including segmentation, spillover, compensation, instrumental, and conflict.

• Segmentation- Individuals are assumed to have two different domains in his life such as work domain and non-work domain. With well-defined areas of responsibility, the individual's life is not disrupted, and no aspect of lifestyle can be considered to affect any other aspect.
• Spillover- It implied a potential for constructive or destructive effect between domains. An individual's working life might have an impact on their family life, and vice versa.
• Compensation- It implied the individual would try to make up for inadequacies in one domain by strengthening other domains.
• Instrumental- Accomplishments in one area of life serve as steppingstones to achievements in other areas.
• Conflict- A theoretical framework predicated on the idea that stress and burnout arise when an individual is forced to make tough decisions because of an abundance of pressure in all areas of life (O'Driscoll, 1996).

In their research study, Sumanarathna and Samarakoon (2019) outlined five forms of work-life balance policies: working hours, company leave policies, training and professional development opportunities, a reduced workweek, and workload management. The authors further explained that training and professional development opportunities, as well as workload management, are the two most important aspects of work-life policies in terms of employee retention.

Furthermore, a flexible set of work-life policies, benefits, and arrangements to cover different work-life situations can enable a higher degree of work-life balance among employees such as flexible working hours, annualized hours, buddy systems, flexible working locations, career breaks, special leaves, Health, wellbeing and employee assistance programmes, childcare/elder care subsidies, phased retirement, remote working, and hybrid working (Charted Management Institute, 2015).

According to the article author's personal experience, employees should be provided with appropriate workload management training programs for their personal development and growth, as well as for the effective achievement of organizational goals. In addition, it is recommended that companies conduct awareness programs on the impact of work-life balance on employees' private lives and organizational lives. This can be achieved through life management training programs, which are essential for identifying lifestyle obstacles and issues.

References

Brough, P. et al. (2020) “Work–Life Balance: Definitions, Causes, and Consequences,” Handbook of Socioeconomic Determinants of Occupational Health, pp. 1–15. Available at: https://doi.org/10.1007/978-3-030-05031-3_20-1.

Charted Management Institute (2015) Work life balance, www.managers.org.uk/. Chartered Management Institute. Available at: https://www.managers.org.uk/~/media/Files/Checklists/Work-life-balance.pdf (Accessed: December 12, 2022).

Dasgupta, R. and Arora, A. (2011) “Analysis of work life balance: A study at the targeted corporate sectors in and around Nagpur with a small number of samples,” International Journal of Research in IT and Management, 1(8), pp. 50–60. Available at: https://www.semanticscholar.org/paper/ANALYSIS-OF-WORK-LIFE-BALANCE-(A-STUDY-AT-THE-IN-A-Dasgupta-Arora/90a425d135c240140ff61b4a9e70403bcbe4124f.

Deery, M. (2008) “Talent management, work‐life balance and retention strategies,” International Journal of Contemporary Hospitality Management. Edited by N. D’Annunzio‐Green, 20(7), pp. 792–806. Available at: https://doi.org/10.1108/09596110810897619.

Department of trade and industry (2001) The essential guide to - work-life balance, flexibleworking.co.uk. London: DTI. Available at: http://www.flexibleworking.co.uk/Juggle%20Not%20Struggle.pdf (Accessed: December 12, 20022).

Garg, P. and Yajurvedi, N.[ ] (2016) “Impact of Work-Life balance practices on employees retention and organizational performance – a study on IT industry,” Indian Journal of Applied Research, 6(8), pp. 105–108. Available at: https://www.researchgate.net/publication/326607206_Impact_of_Work-Life_Balance_Practices_on_Employees_Retention_and_Organizational_Performance_-_A_Study_on_IT_Industry.

Grzywacz, J.G. and Carlson, D.S. (2007) “Conceptualizing Work—Family Balance: Implications for Practice and Research,” Advances in Developing Human Resources, 9(4), pp. 455–471. Available at: https://doi.org/10.1177/1523422307305487.

Hooja, H.R. and Sen, C. (2018) “Work-Life balance: An overview,” International Journal of Management and Social Sciences Research, 7(1), pp. 1–5. Available at: https://www.researchgate.net/publication/348164280_WORK-LIFE_BALANCE_AN_OVERVIEW.

Kalliath, T. and Brough, P. (2008) “Work–life balance: A review of the meaning of the balance construct,” Journal of Management &Amp; Organization, 14(3), pp. 323–327. Available at: https://doi.org/10.5172/jmo.837.14.3.323.

Kirchmeyer C (2000) Work–life initiatives: greed or benevolence regarding workers’ time? In: Cooper CL, Rousseau DM (eds) Trends in organizational behavior: time in organizational behavior, vol 7. Wiley, Chichester, pp 79–94

O'Driscoll, M. (1996). The interface between job and off-job roles: Enhancement and conflict. In C. Cooper, & I. Robertson (Eds.), International Review of Industrial and Organizational Psychology (pp. 279-306). Chichester: John Wiley

Sumanarathna, B. and Samarakoon, S.M.A.K. (2019) “The Effect of Work-life Balance Policies on the Retention Intention of Executive Women Employee in Information Technology (IT) Industry in Sri Lanka,” Kelaniya Journal of Human Resource Management, 14(1), p. 1. Available at: https://doi.org/10.4038/kjhrm.v14i1.63.

Friday, December 9, 2022

Job satisfaction as a retention strategy

The employees are a crucial component in achieving the organizational vision, mission, and objectives in all sectors of production and services. Thus, companies have a responsibility to maintain employee welfare and job satisfaction while ensuring that all employees achieve performance goals (Dziuba, Ingaldi and Zhuravskaya, 2020).

According to Danish and Usman (2010), job satisfaction is the state in which an employee is pleased with his or her job and experiences positive feelings such as happiness and pride as a result of his or her contributions to the organization's success. Also, employees who report high levels of job satisfaction also report higher levels of personal well-being and productivity because they experience a sense of accomplishment in their work (Cranny, Smith and Stone, 1992). Therefore, job satisfaction is everything about getting people motivated to work harder and produce greater results by making sure they enjoy their jobs (Raziq and Maulabakhsh, 2015).

Employees who are satisfied with their jobs are more inclined to exert extra effort and create outstanding results for the organization. Conversely, dissatisfied employees are more likely to get discouraged by their daily grind, postpone taking on extra duties, and even quit their positions (sick leave, days off) (Judge et al., 2001). Scholars like Maslow (1943) agree that job satisfaction has a beneficial effect on employee accomplishments, whereas dissatisfaction has a negative effect on their performance. He further describes that an individual's level of satisfaction or dissatisfaction with a given situation can be inferred from their actions and the way they operate.

According to the equity theory developed by John Stacey Adams in 1963, an employee's efforts should be rewarded with a commensurate degree of equality and fairness (Adams, 1963). The theory explains how employees assess their own status in relation to their peers by calculating the ratio of their input (experience, qualifications, competence) to their output (incentive schemes, rewards, and recognition) (Adams, 1963).

Figure 01

(Al-Zawahreh and Al-Madi, 2012)

The situation of current financial professionals has been observed to be affected physiologically, with increasing responsibilities, and mentally, accompanied by extreme anxiety and tension from addressing client problems, and thus, this ratio will determine whether the employee is provided with adequate job satisfaction or not (Vinod, Yasmin, and Ahamed, 2011).

Employee satisfaction is influenced by six primary determinants: job design, workplace atmosphere, performance compensation, promotion, and supervision/leadership (Rabbanee, Yasmin, and Mamun, 2012). According to the findings of the research conducted by Rabbanee, Yasmin, and Mamun (2012), it is evident that job satisfaction is strongly related to how well employees feel they are compensated for their efforts, which in turn has a profound effect on how satisfied they are with the design of their job.

Companies can boost employee job satisfaction by instituting measures to increase the intensity of employees' tasks and the pride they take in completing them successfully (Hamermesh, 2001). Consequently, The Harvard Professional Group (1998) has stated that firms should devise strategies to boost employee satisfaction, which may include the following factors,

1. 01. More freedom for employees to express their ideas and take responsibility for their work

2. 02. A safe and welcoming workplace

3. 03. Easy access to a manager who offers timely feedback and support

4. 04 Cutting-edge tools and equipment with up-to-date technology

5. 05 Competitive pay and advancement prospects

According to the findings of many research studies, it has been illustrated that job satisfaction improves employee retention (Biason, 2020). As a relevant predictor of employee retention, the author of this blog post suggests that employers engage in practices that support good working relationships and benefits because job satisfaction increases when employees believe that the company is utilizing their skills and valuing their service and dedication. Consequently, greater job satisfaction often leads to greater employee retention.

References

Adams, J.S. (1963) “Towards an understanding of inequity.,” The Journal of Abnormal and Social Psychology, 67(5), pp. 422–436. Available at: https://doi.org/10.1037/h0040968

Al-Zawahreh, A. and Al-Madi, F. (2012) “The utility of equity theory in enhancing organizational effectiveness,” European Journal of Economics, Finance and Administrative Sciences, (46), pp. 158–168. Available at: https://www.researchgate.net/publication/267783009_The_Utility_of_Equity_Theory_in_Enhancing_Organizational_Effectiveness

Biason, R.S. (2020) “The effect of job satisfaction on employee retention,” International Journal of Economics, Commerce, and Management, 8(3), pp. 405–413. Available at: https://www.researchgate.net/publication/339974603_THE_EFFECT_OF_JOB_SATISFACTION_ON_EMPLOYEE_RETENTION

Cranny, C. J., Smith, P. C., and Stone, E. F. (1992). Job Satisfaction: How People Feel About Their Jobs and How It Affects Their Performance. New York: Lexington Books

Danish, R.Q. and Usman, A. (2010) “Impact of Reward and Recognition on Job Satisfaction and Motivation: An Empirical study from Pakistan,” International Journal of Business and Management, 5(2). Available at: https://doi.org/10.5539/ijbm.v5n2p159

Dziuba, S.T., Ingaldi, M. and Zhuravskaya, M. (2020) “Employees’ job satisfaction and their work performance as elements influencing work safety,” System Safety: Human - Technical Facility - Environment, 2(1), pp. 18–25. Available at: https://doi.org/10.2478/czoto-2020-0003

Hamermesh, D. (2001) “The changing distribution of job satisfaction,” Journal of Human Resources, 3(1), pp. 1–30. Available at: https://doi.org/10.3386/w7332.

Harvard Professional Group, (1998). Job satisfaction research project report

Judge, T.A. et al. (2001) “The job satisfaction–job performance relationship: A qualitative and quantitative review.,” Psychological Bulletin, 127(3), pp. 376–407. Available at: https://doi.org/10.1037/0033-2909.127.3.376

Maslow, A.H. (1943) “A theory of human motivation.,” Psychological Review, 50(4), pp. 370–396. Available at: https://doi.org/10.1037/h0054346

Rabbanee, F.K., Yasmin, S. and Mamun, A.A. (2012) “Determinants of job satisfaction: A study on bangladesh perspective,” TIJ’s Research Journal of Commerce & Behavioural Science - RJCBS, 1(8). Available at: https://www.researchgate.net/publication/290396184_Determinants_of_Job_Satisfaction_A_Study_on_Bangladesh_Perspective

Raziq, A. and Maulabakhsh, R. (2015) “Impact of Working Environment on Job Satisfaction,” Procedia Economics and Finance, 23, pp. 717–725. Available at: https://doi.org/10.1016/s2212-5671(15)00524-9

Vinod, S., Yasmin, M. and Ahamed, F.M.A. (2011) “Job satisfaction among finance professionals in Dubai,” International Journal of Research in Management, Science and Technology, 1(1), pp. 1–8. Available at: http://www.thaavan.com/download.php?download_file=uploadfile/1.pdf

Thursday, December 8, 2022

Recognition and awarding as a retention strategy

In the present era of global competition, companies must reconsider their strategies for recognizing and retaining talent, with employee recognition and reward being one of the aspects that business leaders must address in order to reduce voluntary turnover and retain skilled staff (Mngomezulu et al., 2015).

The employee recognition defined by The Australian Office of the Commissioner for Public Employment (2011) states that “Employee recognition is a return on an employee's effort, dedication at work and results”. Moreover, Brun and Dugas (2008), described employee recognition as a "constructive response" and "judgment" about a person's performance, whether consistent or sporadic, individual or group, private or public, monetary or non-monetary, and conveyed formally or informally.

In terms of employee rewards, "all forms of financial return, tangible services, and benefits an employee receives as part of an employment relationship" were identified and interpreted by the study conducted by Malhotra, Budhwar, and Prowse (2007).

The authors further explain that employees anticipate receiving satisfactory results from their employers in terms of assigned tasks, and they expect receiving fair compensation (rewards) for the effort they put in. However, the quality of the company's existing reward and recognition program can impact whether the organization's performance improves or declines. There are five key success factors of a fruitful employee rewards and recognition strategy that make it connect with and support the company's HR policies and overall business strategy (Madhani, 2020).

1. Holistic

To be truly effective, a rewards and recognition program must consider the "Value Proposition" of the company as a whole.

2. Integrated

Every part of the rewards and recognition program needs to mesh together with each other parts of the program.

3. Aligned

The company's HR and business strategies should be supported and further developed by its rewards and recognition program.

4. Measurable

The strategy for recognizing and rewarding employees should be centered on data and analysis.

5. Delivered

The long-term benefits of a rewards and recognition system can only be realized with thorough and regular communication, management, and monitoring.

According to above five key success factors of rewards and recognition identified by Madhani (2020), a more comprehensive, efficient, and complete HR strategy can be developed as a result of combining recognition with rewards.

Additionally, with the tangible and intangible rewards that are granted to employees in order to entice them towards a desired outcome, recognition plays an important role in preserving employee motivation (Madhani, 2020). Furthermore, Saunderson (2004), highlighted that there are three sorts of recognition as organisation-wide formal recognition, departmental-specific informal recognition and everyday spontaneous recognition.

As demonstrated in Figure 1 below, a culture of continual performance improvement in organizations is fostered through a combination of reward and recognition programs (Madhani, 2020).

Figure 1

Source: Madhani (2020)

Martin and Ottemann (2016) found that the attitudes and preferences of four distinct generations of workers were most influential in shaping organizational reward practices for attracting and retaining talented employees. The below figure illustrates a table of significant and valued reward and recognition practices and programs preferred by the four types of employee generations.

Figure 2

(Martin and Ottemann, 2016)

To elaborate further, the purpose of employee recognition is to enable people to be aware that their effort is respected and appreciated, offers a feeling of belongingness, boosts morale, strengthens loyalty, and enhances employee retention rates in the company (Nyakundi et al., 2012).

Similarly, Saunderson (2004) describes that effective recognition is precisely available in supportive and robust organizational cultures where the psychology of praising employees is well understood, embrace employee recognition practices and motivate co-workers to take the lead in building positive workplace relationships.

Moreover, rewarding and recognizing employees for their efforts boosts morale, fosters loyalty, and helps keep talented workers from leaving the company, all of which contribute to a more pleasant and productive work environment and a more favourable public perception of the company (Thumbran, 2010). Some of the other impacts of employee rewards and recognition are demonstrated in the below-inserted figure.

Figure 3

(HiFives, 2019)

Finally, according to the personal experiences and observations of this blog article author in the financial industry of banking, employee rewards highly influence applicant attraction and employee retention. Also, flexible benefits, as opposed to set benefits, are particularly appealing to individuals and corporations.

Nevertheless, banking organizations that are willing to customize their employees' compensation (rewards) arrangements will need to invest additional time to create, execute, and monitor the arrangement, but it will be time well spent.

The financial statements of these organizations illustrate that implementing employee awards raises numerous difficulties for employers. Thus, many workers in the modern economy experience financial difficulties, making it more important than ever for businesses to have solid reward programs in place.

References

Australian office of the commissioner for public employment (2011) Defining employee recognition. Available at: https://ocpe.nt.gov.au/ (Accessed: December 6, 2022)

Brun, J.-P. and Dugas, N. (2008) “An analysis of employee recognition: Perspectives on human resources practices,” The International Journal of Human Resource Management, 19(4), pp. 716–730. Available at: https://doi.org/10.1080/09585190801953723

HiFives (2019) “Impact of employee rewards and recognition on retention,” HiFives, September. Available at: https://www.hifives.in/understanding-the-impact-of-employee-rewards-and-recognition-on-employee-turnover/ (Accessed: December 6, 2022)

Madhani, P.M. (2020) “Effective rewards and recognition strategy: Enhancing employee engagement, customer retention and company performance,” The Journal of Total Rewards, 29(2), pp. 39–48. Available at: https://www.researchgate.net/publication/343628153_Effective_Rewards_and_Recognition_Strategy_Enhancing_Employee_Engagement_Customer_Retention_and_Company_Performance

Malhotra, N., Budhwar, P. and Prowse, P. (2007) “Linking rewards to commitment: an empirical investigation of four UK call centres,” The International Journal of Human Resource Management, 18(12), pp. 2095–2128. Available at: https://doi.org/10.1080/09585190701695267

Martin, T.N. and Ottemann, R. (2016) “Generational Workforce Demographic Trends and Total Organizational Rewards Which Might Attract and Retain Different Generational Employees,” Journal of Behavioral and Applied Management, 16(2), pp. 91–115. Available at: https://www.semanticscholar.org/paper/Generational-Workforce-Demographic-Trends-and-Total-Martin-Ottemann/9fc4b5a50488235b50236b5be8c438c68dbaa938

Mngomezulu, N. et al. (2015) “The impact of recognition on retention of good talent in the workforce,” Journal of Governance and Regulation, 4(4), pp. 372–379. Available at: https://doi.org/10.22495/jgr_v4_i4_c3_p2

Nyakundi, W. et al. (2012) “Enhancing the role of employee recognition towards improving performance: A survey of Keyatta National hospital Kenya,” International Journal of Arts and Commerce, 1(7), pp. 96–108. Available at: https://ijac.org.uk/images/frontImages/gallery/Vol1no7december2012/9.pdf

Saunderson, R. (2004) “Survey Findings of the Effectiveness of Employee Recognition in the Public Sector,” Public Personnel Management, 33(3), pp. 255–275. Available at: https://doi.org/10.1177/009102600403300302

Thumbran, R.S. (2010) Utilizing non-financial rewards as a competitive advantage in attracting and retaining employees. MA Thesis. University of Pretoria.

Tuesday, December 6, 2022

Learning and development as an approach for retention

Nowadays, companies use a variety of retention strategies, such as learning and development, in an effort to determine whether or not these strategies produce positive results in terms of retaining employees.

Employee retention is aided by learning (training) and development programs since untrained workers can't improve their skills and will not be able to develop into the most effective and efficient versions of themselves (Srimannarayana, 2016).

According to Ahmad (2013), the relationship between employee training and retention is indirect, with commitment serving as a bridge. As the article progresses, the author explains that employees who place a high priority on training and development for the sake of their professional advancement could be more inclined to work for an employer that regularly provides them with useful, up-to-date knowledge.

In addition, employee commitment and retention can only be attained by carefully well-planned and needs-basedly planned training programs (Anvari, Mohamad Amin and Seliman, 2010). Employee learning (training), as discovered by Kyndt et al. (2009), is a significant contributor to the formation of turnover intentions and has the capacity to alter employees' turnover-related ideas. As a result, well-trained and developed employees who are committed to the company goals display lower turnover rates.

Moreover, as a consequence of the interpersonal connection formed between the employer and the employee due to the offering of quality learning and development programs, a strong social bond is also formed between the organization and employees, thereby increasing the likelihood that the employees will remain with the company for the long term (Dysvik and Kuvaas, 2008).

For instance, the banking industry, as a knowledge-based service sector, usually necessitates specific training and a much broader variety of competence (Armenta, 2007). Therefore, learning and development techniques are crucial to becoming familiar and knowledgeable with banking or financial laws and regulations, interviewing clients, and negotiating trade agreements using sales strategies (McNaughton, 1992).

Likewise, the tangible and intangible results of learning and development include increased productivity, improved product and service quality, enhanced use of available resources, increased employee morale and job satisfaction, satisfied subordinates, staff competencies, technical expertise and skillful training and development (Nguyen and Duong, 2021). Hence, provision of an appreciative learning environment in the organization will enable employees to retain in that particular organization.

Strategically, an organization can foster an appreciative learning environment by highlighting employees' skills and providing opportunities for them to use their strengths; allowing employees to do and learn more of what they are good at will keep them from leaving the company (Govaerts et al., 2011).

References

Al-Suraihi, W.A. et al. (2021) ‘Employee Turnover: Causes, Importance and Retention Strategies’, European Journal of Business and Management Research, 6(3), pp. 1–10. Available at: https://doi.org/10.24018/ejbmr.2021.6.3.893

Boomer Authority. (2009). Competitive Strategies for a World Class Workforce: Why Older Workers Matter In Oregon. Available at: https://multco-web7-psh-files-usw2.s3-us-west-2.amazonaws.com/s3fs-public/chair/documents/2-employment.pdf

Cloutier, O. [Omer C. et al. (2015) ‘The importance of developing strategies for employee retention’, Journal of Leadership, Accountability and Ethics, 12(2), pp. 119–129. Available at: http://www.m.www.na-businesspress.com/JLAE/Pemberton-JonesEJ_Web12_2_.pdf

Das, B.L. (2013) ‘Employee Retention: A Review of Literature’, IOSR Journal of Business and Management, 14(2), pp. 08–16. Available at: https://doi.org/10.9790/487x-1420816

David G. Allen (2021) Retaining talent: A guide to analyzing and managing employee turnover, SHRM Foundation. SHRM Foundation. Available at: https://www.shrm.org/hr-today/trends-and-forecasting/special-reports-and-expert-views/documents/retaining-talent.pdf

Gorde, S.U. (2019) ‘A study of employee retention’, Journal of Emerging Technologies and Innovative Research, 6(6), pp. 331–337. Available at: https://www.researchgate.net/publication/339253142_A_Study_of_Employee_Retention

Greer, R Charles (2008). Strategic Human Resource Management, A general Managerial Approach, Pearson, 34-37.

Human Resources Industry Whitepaper (2012) HR metrics and turnover: What to measure and how to evaluate, HRN Performance Solutions. HRN Performance Solutions. Available at: https://www.hrperformancesolutions.net/files/cusg2011/1033/file/whitepapers/pdf/Whitepaper-HRMetrics.pdf

James W. Denton (2016) ‘Using Web-Based Projects in a Systems Design and Development Course’, Journal of Computer Information Systems [Preprint].

Laureani, A. and Antony, J. (2010) ‘Reducing employees’ turnover in transactional services: a Lean Six Sigma case study’, International Journal of Productivity and Performance Management, 59(7), pp. 688–700. Available at: https://www.emerald.com/insight/content/doi/10.1108/17410401011075666/full/pdf?title=reducing-employees-turnover-in-transactional-services-a-lean-six-sigma-case-study

Logan, J.K. (2000), TRM Total Relationship Management, student litterateur, Lund.

Lydia Oonge Mokaya (2014) Influence of employee retention strategies on the performance of Kenya Power and lighting Company Limited, erepository.uonbi.ac. erepository. Available at: http://erepository.uonbi.ac.ke/bitstream/handle/11295/76603/Mokaya_Influence%20of%20Employee%20Retention%20Strategies%20on%20the%20Performance%20of%20Kenya%20Power%20and%20Lighting%20Company%20Limited.pdf?sequence=3

Mandhanya, Y. (2015) ‘However, businesses can take measures to keep their best employees and cut down on turnover by making retention a central part of their corporate culture.’, Pacific Business Review International, 7(9), pp. 40–49. Available at: http://www.pbr.co.in/2015/2015_month/March/5.pdf

Mckeown, G. L., 2010. Retain top employees. 32 ed. s.l.: published in HBR series.

Ramona Agrela et al. (2008) Retention issues and solutions: tools to ensure University of California becomes an employer of choice, cucsa.pre.ss.ucla.edu. 0780. CUCSA. Available at: https://cucsa.pre.ss.ucla.edu/wp-content/uploads/sites/85/2018/01/Retention0708.pdf

Sinha, C. and Sinha, R. (2012) ‘Factors Affecting Employee Retention: A Comparative Analysis of two Organizations from Heavy Engineering Industry’, European Journal of Business and Management, 4(3), pp. 145–162. Available at: https://core.ac.uk/download/pdf/234624171.pdf

Vasantham, S.T. (2016) ‘Importance of employee retention in the overall performance of an organization’, International Journal of Business Economics and Management Research, 7(11), pp. 16–18. Available at: https://www.academia.edu/30228160/IMPORTANCE_OF_EMPLOYEE_RETENTION_IN_THE_OVERALL_PERFORMANCE_OF_AN_ORGANIZATION

Monday, December 5, 2022

Employee engagement as a retention approach

According to Lindholm (2013), it has been demonstrated that employee engagement has a favorable effect on organizational performance outcomes such as retention, profitability,

customer loyalty and satisfaction, productivity improvement rates, and risk mitigation through higher safety standards. Similarly, employees who are very enthusiastic and engaged are committed to the success of their firm and are willing to go above and beyond their given duties and the terms of their employment contract to accomplish that goal (Kompaso and Sridevi, 2010).

The employee engagement was defined as “a positive attitude held by the employee towards the organization and its value. An engaged employee is aware of business context and works with colleagues to improve performance within the job for the benefit of the organization.

The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee” (Dilys Robinson, Sarah Perryman, and Sue Hayday, 2004, p.10). Moreover, employee engagement refers to an employee's positive cognitive processes, optimistic conduct, and pleasant vibe impulses, which motivate him to collaborate effectively with coworkers and corporate goals (Shuck and Wollard, 2009).

I am working for an leading company in the banking industry, and in our organization the drivers of employee engagement include the availability of challenging job tasks, participation in the decision-making process, the availability of resources to complete the job, decision-making authority, career development and growth opportunities, respectable firm reputation as a good employer, customer-focused quality service by the company, senior management's effective goals and visions for future business growth and success, and accountable senior management towards employees’ well-being.

Maslow (1943) contends that individuals frequently have a variety of desires that they aim to satisfy and that in order to boost employee engagement, top management must identify what employees find appealing and what they need the most. Maslow's hierarchy of requirements comprises five fundamental kinds of needs, including psychological needs, safety needs, social needs (love and belonging), reward needs (esteem), and self-actualization needs.

Figure 1

(Mcleod,2018)

Relating Maslow's theory to the challenge of assessing employee engagement provides particularly insightful information regarding the nature of the most successful employee motivating drives (Jerome, 2013).

On the basis of Maslow's hierarchy of needs, the elements influencing employee engagement often include the salary package, job qualities, the supervisor's or management's communication, coworkers, working conditions, job assessment, training and guidance, and promotion prospects (Soelistya, Mashud and Suryanto, 2016).

Furthermore, Kompaso and Sridevi (2010) discovered the following five fundamental methods that lead to a highly engaged employee community: integrating operations with strategy, empowering, fostering and encouraging cooperation and collaboration, assisting individuals in growing and developing career aspects, and providing assistance and appreciation when needed.

Therefore, due to the strong association between Maslow's hierarchy of needs and employee engagement, the organizations can develop a long-term plan for enhancing and maintaining employee engagement and workplace morale (Nguyen, 2020).

References

Dilys Robinson, Sarah Perryman, and Sue Hayday (2004) The drivers of employee engagement 408, employment-studies.co.uk. Institute for Employment Studies, UK. Available at: https://www.employment-studies.co.uk/system/files/resources/files/408.pdf.

Jerome, N. (2013) ‘Application of the Maslow’s hierarchy of need theory ; impacts and implications on organizational culture, human resource and employee’s performance’, International Journal of Business and Management Invention, 2(3), pp. 39–45. Available at: https://www.academia.edu/12099958/Application_of_the_Maslows_hierarchy_of_need_theory_impacts_and_implications_on_organizational_culture_human_resource_and_employees_performance.

Kompaso, S.M. and Sridevi, M.S. (2010) ‘Employee Engagement: The Key to Improving Performance’, International Journal of Business and Management, 5(12). Available at: https://doi.org/10.5539/ijbm.v5n12p89.

Lindholm, R. (2013) Managing Retention by Engaging Employees in a Case Company. Bachelor’s Thesis. Saimaa University of Applied Sciences.

Maslow, A.H. (1943) ‘A theory of human motivation.’, Psychological Review, 50(4), pp. 370–396. Available at: https://doi.org/10.1037/h0054346

Nguyen, T.A. (2020) The key elements impacting employee engagement. Bachelor’s Thesis. TURKU University of Applied Sciences.

Shuck, B. and Wollard, K. (2009) ‘Employee Engagement and HRD: A Seminal Review of the Foundations’, Human Resource Development Review, 9(1), pp. 89–110. Available at: https://doi.org/10.1177/1534484309353560.

Soelistya, D., Mashud, M. and Suryanto, S. (2016) ‘Problems of employee commitment from the perspective of Maslow’s Hierarchy of needs’, Global Journal of Human Resource Management, 4(5), pp. 45–64. Available at: https://www.researchgate.net/publication/325101092_PROBLEMS_OF_EMPLOYEE_COMMITMENT_FROM_THE_PERSPECTIVE_OF_MASLOW'S_HIERARCHY_OF_NEEDS.

Employee motivation as a strategic approach for retention

According to the findings of recent research, it is no longer safe to assume that happy employees will continue to work for an organization (Lee et al., 2018). Gaining an understanding of employee motivation is critical to achieving long-term success in the organizational environment (Welch and Brantmeier, 2013). Rutherford (1990) argues that a motivated workforce is key to a company's success since it encourages workers to seek out better ways of doing their jobs.

In other words, motivation can be described as following a series of directives that strengthen and enhance employee performance in order to reach predetermined goals (Kalimullah et al, 2010). The top five motivational factors for retaining employees, according to university research administrators, are a supportive and encouraging supervisor or top management, good relationships and positive interactions with coworkers, decent compensation, a quality work-life balance, and benefits (Welch and Brantmeier, 2013).

A number of theories and models developed by industry experts suggest that companies can boost motivation and retention while avoiding the drawbacks of high employee turnover. The human motivation theory of McClelland describes three major motivators of human such as the need for achievement, power, and affiliation in which all the human being holds these traits of motivation but only one will be dominant (McClelland, 1987).

Above diagram, Figure 1 is based on (McClelland, 1987)

Therefore, this blog further claims that it is crucial to identify the dominant trait of the motivation of their employees. McClelland (1987) proposes that organizations should offer employees with achievement dominance a greater degree of autonomy and responsibility by assigning them more challenging tasks that require them to think creatively and solve problems on their own.

Secondly, affiliation dominance, which describes employees who are willing to work collaboratively rather than stay competitive, can be employed in low-risk teamwork to ensure their long-term retention within the organization. Thirdly, the power dominance criteria of employees must be continuously challenged with their assigned tasks, including empowering them to make progress toward their professional goals, in order to keep them engaged positively for a better retention strategy within the organization.

In addition, employee motivation can be promoted by quality leadership, competitive pay, incentive programs, special allowances, benefits packages, encouragement, trust, respect, collaborative decision-making, opportunities for growth, need recognition and fulfillment, organizational loyalty, recognition, empowerment, inspiration, safe workplace conditions, training and accessibility to information, and effective communication (Dwibedi, 2018).

Some of the strategic measures that can be adopted to improve and maintain employee motivation and retention can be illustrated as follows: availability of frequent training and development programs, providing a sound and effective communication system, offering a satisfactory and fair remuneration package, providing for flexible working hours and a working environment, allocating more responsibility and autonomy to the employees, facilities for job improvement and job expansion, providing for appropriate complaint handling and strengthening of employer-employee relationships (Sushil, 2013).

References

Dwibedi, L. (2018) ‘Impact of Employees Motivation on Organizational Performance’, Academic

Voices: A Multidisciplinary Journal, 7, pp. 24–30. Available at: https://doi.org/10.3126/av.v7i0.21364.

Kamalian, A.R., Yaghoubi, N.M. and Moloudi, J., 2010. Survey of relationship between organizational

justice and empowerment (A case study). European Journal of Economics, Finance and Administrative

Sciences, 24(2), pp.165-171.

Lee, T.W. et al. (2018) ‘Managing employee retention and turnover with 21st century ideas’,

Organizational Dynamics, 47(2), pp. 88–98. Available at: https://doi.org/10.1016/j.orgdyn.2017.08.004.

McClelland, D. (1987) Human Motivation. Cambridge, United Kingdom: Cambridge University Press.

Nostrand Reinhold Syedain, H. (1995). The rewards of recognition. Management Today,72-

75.Rutherford, D. G. (1990). Hotel Management and Operations. New York, NY: Van

Sushil, S. (2013) ‘Motivation and retention: HR strategies in achieving quality of work life’,

Global Journal of Management and Business Studies, 3(7), pp. 763–768. Available at:

https://www.ripublication.com/gjmbs_spl/gjmbsv3n7_10.pdf.

Welch, L. and Brantmeier, N.K. (2013) ‘Examining employee retention and motivation trends in

research administration’, The Journal of Research Administration, 52(2), pp. 70–86. Available at:

https://files.eric.ed.gov/fulltext/EJ1325462.pdf.

Saturday, December 3, 2022

Introduction

Employee retention can be defined as the overarching goal of retaining productive and talented employees while reducing turnover by fostering a positive work environment with a focus on retention strategies such as employee recognition and appreciation, flexible work arrangements, and competitive compensation and benefits through the implementation of policies and practices within the organization that resolve diverse employee needs (Mckeown, 2010). Moreover, the term "employee retention" is used to describe an organization's efforts to keep its best workers and reduce the likelihood of turnover risk (Das, 2013). According to David G. Allen (2021), numerous organizations and HR departments struggle with the labor force management challenge of employee turnover and retention, which has a detrimental influence on both the bottom line and the ability to expand and grow in a certain industry, as well as incurring excessive costs for business operations. Consequently, employers are well concerned with employee retention in the current fiercely competitive labor market and also in situations of low unemployment, so that businesses can increasingly rely on human resources technology for employee retention purposes, including recruitment, onboarding, engagement, and recognition, as well as the provision of more flexible working conditions and cutting-edge benefits such as monetary and physical wellness programs (Greer, R Charles, 2008). Multiple studies have discovered that corporate culture, communication, remuneration and benefits, strategy, flexible working agendas, and career progression systems all directly contribute to employee retention and should be managed in combination (Logan, 2000). In addition, Ramona Agrela et al. (2008) described that organizations can only expand and prosper if they pay attention to the elements that influence employee retention. Job flexibility, cost-effective job flexibility alternatives to reward and satisfy the requirements of all employees, quality employee training, career development, and skill recognition for personal accomplishments on the job, learning and development opportunities accompanied by supportive learning and working climate, employee motivation, financial and non-financial benefits, maintaining of favorable relationships and support with senior management and subordinates, compensations, and organizational commitment of the employees can be illustrated as retention factors that contribute to employee retention and turnover (Sinha and Sinha, 2012).

Also, recent studies illustrate that retention approaches that properly meet the requirements of all employees improve a company's capacity to efficiently adjust to continuing organizational dynamics (Lydia Oonge Mokaya, 2014).

Similarly, building a loyal and dedicated workforce requires effective retention practices, which can reduce the time and money spent on advertising job openings, conducting interviews, onboarding new employees, and providing necessary training, as well as the costs associated with diminished business productivity or unsatisfactory customer service (Vasantham, 2016).

According to the research study conducted by Cloutier et al. (2015), the process of employee retention will benefit an organization in the following ways:

1. A higher commitment toward the organization's vision, mission, objectives, and core values

2. Increased process efficiency and goal achievement through the retention of long-term employees.

3. Higher productivity

4. High employee morale as a result of a sense of belonging within the organization.

5. Reduction in staff turnover, resulting in decreased recruitment expenses.

6. Enhancing the positive customer experience

7. Increased revenue in the organization

Employee retention can be measured using both quantitative and qualitative HR data, with the retention percentage calculated by dividing the number of employees who stayed for the entire time period by the number of employees at the start of that time period and multiplying the result by 100 (David G. Allen, 2021). The author also explained that it is useful to measure retention rate on a manager-by-manager basis to better understand and guide your efforts to reduce staff turnover across the company.

On the other hand, low retention rates could be an indicator that organizational leaders are having difficulty developing strong relationships with their employees, which in turn will lead to higher turnover rates (Al-Suraihi et al., 2021). According to the latest research, the top reasons employees quit their jobs due to frustration with their colleagues and superiors are dissatisfaction with their current positions, a lack of appreciation, a lack of trust and support from superiors and coworkers, stress from excessive workload, a mismatch between their skills and the requirements of the job, the unavailability of growth opportunities, as well as the availability of new job opportunities (Gorde, 2019). The voluntary and involuntary employee turnover rates can be calculated by dividing the number of people who leave during a given period by the average number of total employees and multiplying by 100 (Human Resources Industry Whitepaper, 2012). Moreover, Six Sigma can be used to enhance administrative processes like human resources processes in order to lower the turnover rate and thereby mitigate the negative effects of employee turnover (Laureani and Antony, 2010).

However, according to Mandhanya (2015), businesses can take measures to keep their best employees and cut down on turnover by making retention a central part of their corporate culture. Furthermore, when retention strategies take employees' goals and needs into account, employees of all ages are more likely to be satisfied in their jobs, loyal to their employers, and committed to their work (Boomer Authority, 2009).

This blog article will demonstrate how effective employee retention can be accomplished through five key strategies: employee motivation as a strategic approach to retention, employee engagement as a strategic approach to retention, learning, and development as a strategic approach to retention, recognition, and reward as a strategic approach to retention, job satisfaction and work-life balance as a strategic approach to retention, and job satisfaction and work-life balance as a strategic approach to retention.

References

Das, B.L. (2013) ‘Employee Retention: A Review of Literature’, IOSR Journal of Business and Management, 14(2), pp. 08–16. Available at: https://doi.org/10.9790/487x-1420816

Greer, R Charles (2008). Strategic Human Resource Management, A general Managerial Approach, Pearson, 34-37.

James W. Denton (2016) ‘Using Web-Based Projects in a Systems Design and Development Course’, Journal of Computer Information Systems [Preprint].

Logan, J.K. (2000), TRM Total Relationship Management, student litterateur, Lund.

Mckeown, G. L., 2010. Retain top employees. 32 ed. s.l.:published in HBR series.