Retention Strategic Human Resource Management Concept Involves taking

Retention Strategic Human Resource Management

Concept Involves taking measures to encourage employees not to leave the job Understanding reasons for switch over of the employees Providing maximum facilities to the employees Creating value oriented approach while training the employees Maximizing opportunities towards the ladder of success

Definition 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.

Retention perspective There is no dearth of opportunities for a talented person. If a person is not satisfied by the job he’s doing, he may switch over to some other more suitable job. The top organizations are on the top because they value their employees and they know how to keep them glued to the organization. It is the responsibility of the employer to retain their best employees. If they don’t, they would be left with no good employees.

Need for Retention The Cost of Turnover Loss of Company Knowledge Interruption of Customer Service Turnover leads to more turnovers Goodwill of the company Regaining efficiency

Reasons for leaving job 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 coworkers, seniors and management Stress from overwork and work life imbalance Compensation New job offer

Retention involves Compensation Environment Growth Relationship Support

Retention involves (cont’d) Compensation Constitutes the largest part of the employee retention process. The employees always have high expectations regarding their compensation packages. Compensation packages vary from industry to industry. So an attractive compensation package plays a critical role in retaining the employees.

Retention involves (cont’d) Environment If an organization manages people well, employee retention will take care of itself. Organizations should focus on managing the work environment to make better use of the available human assets.

Retention involves (cont’d) Growth 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.

Retention involves (cont’d) Relationship There are times when an employee starts feeling bitterness towards the management or peers. Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization.

Retention involves (cont’d) Support Management should try to focus on its employees and support them not only in their difficult times at work but also through the times of personal crisis.

Retention levels

Retention strategies 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.

Managing Retention Transparent work culture Quality of work Support from mgt. of the organization Feedback about the employees Communication in the organization

Managing Retention (cont’d) Three stage process Identify the cost of employee turnover Understand why employee leave Implement retention strategies

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