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Staffing System and Retention Management
Staffing Organizations Model Organization Mission Goals and Objectives Organization Strategy HR and Staffing Strategy Staffing Policies and Programs Support Activities Core Staffing Activities Legal compliance Planning Recruitment: Selection: Job analysis Employment: External, internal Measurement, external, internal Decision making, final match Staffing System and Retention Management 14 -2
Introduction • Even the best recruitment and selection system in the world will be of little value to an organization if the new employees leave their jobs soon after being hired. • Therefore, the establishment of effective system for retaining employees is critical part of the staffing process.
Turnover and Its Causes • Nature of problem • Types of turnover • Causes of turnover
Nature of the Problem • Employee retention can contribute to organizational effectiveness • Turnover is not only costly but may be beneficial. • Focus of retention strategies – Number of employees retained and – Who is retained • Approach to retention management – Gather and analyze employees’ reasons for leaving
Types of Turnover Types of Employee Turnover: ü Voluntary ü Involuntary
Types of Turnover • Voluntary: is broken down into avoidable and unavoidable turnover. – Avoidable - Could be prevented • Try to prevent for high value employees by certain organization actions like pay raise or new job assignment. • Do not try to prevent for low value employees. – Unavoidable - Could not be prevented like • (retirement, health problems).
Types of Employee Turnover Voluntary -- Employee Initiated
Types of Turnover • Involuntary – Discharge ü It is aimed at the individual employee, due to discipline and/or job performance problems. – Downsizing ü May occur as permanent or temporary employees layoffs. ü Typically targets groups of employees. ü It occurs as part of an organizational cost- reduction program.
Types of Employee Turnover Involuntary -- Organization Initiated
Causes of Turnover: Voluntary Causes of Voluntary Turnover • Behavior of leaving preceded by intention to quit. • Factors affecting intention to quit – Desirability of leaving • Often results from a poor person/job match or • Person/organization match – Ease of leaving • Represents lack of barriers to leaving and, being able to likely find a new job – Available alternatives • Depends on other job options both internal and outside organization 14 -11
Causes of Turnover: Involuntary • Discharge turnover – Mismatch between job requirements and KSAOs • Employee fails to follow rules and procedures • Unacceptable job performance • Downsizing turnover – Mismatch in staffing levels which leads to an overstaffing situation – Factors related to overstaffing • Lack of forecasting and planning • Inaccuracies in forecasting and planning • Unanticipated changes in labor demand and/or supply 14 -12
Measurement of Turnover: Reasons for Leaving • Important to determine, record, and track reasons why employees leave • Tools – Exit interviews • Formal, planned interviews with departing employees – Postexit surveys • Surveys sent to employees soon after their last day – Employee satisfaction surveys • Surveys of current employees to discover sources of dissatisfaction which may become reasons for leaving • Results can provide information to pre-empt turnover
Most Effective Retention Initiatives
Guidelines for Increasing Job Satisfaction and Retention l Extrinsic rewards – Rewards must be meaningful and unique – Rewards must match individual preferences – Link rewards to retention behaviors – Link rewards to performance l Intrinsic rewards – Assign employees to jobs that meet their needs – Provide clear communication – Design fair reward allocation systems – Ensure supervisors provide a positive environment – Provide programs to enhance work-life balance
Other Guidelines for Increasing Job Satisfaction and Retention • Provide organization-specific training • Combine training strategy with a selection strategy focused on assessing and selecting general KSAOs • Approaches to make internal alternatives more desirable than outside alternatives: – Internal staffing • Encourage employees to seek internal job opportunities • Provide attractive internal options