Term Paper on Employee RetentionExecutive SummaryEmployee retention is very important and critical for any organization due to various reasons.This project report emphasizes on the various reasons for employee attrition and suggest tools and strategies available with organizations to retain its employees.  Based on interview with industry experts, secondary research as a group we suggest and recommend that employee retention should be on the priority list of any HR manager and should be given equal importance and weight age as compare to other key activities and practices. Back GroundEmployee retention refers to the ability of an organization to retain its employees. Retaining good talent is of paramount importance for any organization however with the growing competition and globalization, the cost of retaining talent is becoming a challenge for organization’s.Well drafted employee retention policies and its judicious use may result in lower employee attrition and greater profitability for an organization in long run.Importance of Employee retention:    The high attrition rate causes following which results into losses to an organization: a.  High cost of employee turnover b.  Loss of knowledge and goodwill c.  Loss of efficiency d.  Loss of trust and faith among existing employees e.  Poor quality of services to customers Main Reasons for Employee AttritionRelationships with Boss and Co-workers Lack of recognition Overall corporate culture Work-life Imbalance Employee Misalignment Limited advancement opportunities Inadequate salary and benefits Organizational Instability .Autonomy and Independence to use skills and abilities
*Â Employee retention includes all aspects of career and work in a company. All of the following are examples of effective employee retention initiatives: 1. Job posting management. Employee management, often without proper training or guidance, does not know how many hours are needed to achieve a well established and secure job. Employers, generally by hiring staff, ask for more work time for their employees who are typically not highly compensated. Employee retention is a highly effective tool for the organization to achieve the following: 1. Effective recruitment of a good personnel manager. Employees on high-paid or below the wage floor may be better equipped than low-paid workers, if they are willing to work with a good employee. 2. Employer quality management.Employee retention can be achieved through good organization practices and strong management. Third-party hiring is a cost effective form of promotion that is necessary for effective employee retention. Fourth-party hiring does not require the hiring of strong staffs, and is very likely to create a good morale level in the company and to produce more new hires.Employee retention has a profound influence in many ways such as a quality control process (more on that later) and hiring of staffs in a better location. Moreover it has a positive effect on organizational cohesion, in a sense increasing morale among employees.Employee retention can also be linked to the creation of employee protection and employment law compliance. Employee safety is one such important goal that employers are interested in maintaining when hiring employees. Employer liability is an essential part of employee retention and protection strategies.Employee retention also increases employee morale by limiting distractions that can cause embarrassment to employees, and thereby causing an incentive for employees to come to work. It also limits the amount of time they spend out in the field. Employees are paid a fairly high reward for their service rather than being paid an attractive salary or the status of an employee. Employers also often have a right to withhold employees compensation, if they are found to be unable to meet reasonable pay expectations. A company has the option of either hiring an employee in short supply (e.g., an employee who has been trained to work by an outside consultant, or a person who has a low experience level or an employee’s health, safety condition, or personal preferences) or a person with whom it has an agreed settlement. However, if hiring in short supply is not available, it makes sense to move an employee into short supply that will provide better performance. If employee retention is an issue for employers who are willing to provide the employee with a salary comparable to their available compensation, employers may not seek to move an employee into short supply. For example, consider the case of a high-paid consultant who cannot be hired. The consultant is expected to be a good work ethic. If hiring in short supply, the employee may not have the same productivity as a skilled consultant that is available at the time that the consultant is hired. Similarly, an employee should be considered to have high success in an executive group or team to create their product. Employee retention also has benefits for the employees as well. An employee may enjoy more control over how he or she behaves as if he/she is responsible for a positive work culture. However, employees need to consider the value of good morale among their organization rather than simply the benefits of it. Employee Retention is also important in that it should not be considered a cost to the employer for retaining a person
2. Improving an Employer’s Employee Retention Initiatives. The best way to help people on the ground to improve their employee morale is to improve their employee retention and retention systems, such as those that employers employ. Here are some ideas about how to improve employee retention:
1. Get all employees back. Employers provide employees with training to increase their effectiveness and performance in each job area. By enhancing the retention efforts of the employees, employers will be able to focus on their current program to attract people to a given position and to enhance the effectiveness of their overall employee retention strategy. This is an obvious improvement for a company that is currently facing a changing demand in the company. While it can be done, it may not in large part be worth the effort to increase employees retention. 2. Use effective employees-oriented management. One way to increase employee retention and retention systems is to use effective employees-oriented management (EOP). Employees-oriented management is a way to improve the employees’ work and morale by adding more and better people to the work force. The company’s staff should be motivated by a positive work ethic that will create better employee morale and keep the company’s workers motivated. This can be a good means to reduce turnover and to improve performance of employees.
3. Provide managers with information about specific employees. People who are highly qualified or who provide high-quality work management are generally the best candidates for the job of HR. There may