Employee Attrition and Retention Challenges

There are many employee related issues in an organization. The employee related issues can be either internal or external. When it comes to internal issues, employee attrition is a key issue among all the internal employee related issues. Employee Attrition is nothing but the gradual reduction of number of employment in an organization basically form resignation, death or retirement. Any trained and experienced employees leave the organization for the any of the above mentioned reasons, it creates an empty space in the work place also there will a vacuum occurs in that scenario.(Guru, Sarojini and Vetrivel, 2018). It shows that there will be a grater loss and have a gap which will lead to face huge difficulties to fill the gap by the HRM. Today, the modern HRM focus on the strategies to reduce these kind of issues in an organization (Pradip, Saket and Jagathees, 2016).

As per the conclusion of Gayatri (2013), employee attrition is inevitable. It can be always controlled and minimized. Effective leadership and HRM to a great extent is must in order to minimize the employee attrition in an organization.

Reference

Gayatri, N. (2013) Employee Attrition. International Monthly Refereed Journal of Research in Management and Technology, 2(1), pp. 57-58.

Guru,V.S., Sarojini, V and Vetrivel, S. (2018) Employee Attrition and Employee Retention Challenges and Suggestions. International Conference on Economic Transformation with inclusive growth, pp. 13-15. 

Pradip,K.T., Saket, R and Jagathees,A. (2016) Employee Attrition and Strategic Retention Challenges in Indian Manufacturing Industries. International Journal of Business and Management Research, 7 (8), p.259.

Identifying the motivational factor is a huge challenge in today's business context.

Motivational factors also determine the employee retention in an organization. When it comes to motivation, there can be a few categories. It can be categorized as monetary & non-monetary motivations, as another category it can be categorized as integrative & instrumental and the next is Intrinsic Motivation & Extrinsic Motivation (Orhan, Cetin and Imran, 2011).

Intrinsic and Extrinsic is the most common classification. Intrinsic motivation are arises from the inside of individuals it is based on the beliefs and values of the individual and which are very powerful. Some of the examples of intrinsic motivations are acceptance, curiosity, honor, independence, order, power, social contract, social status and etc. Extrinsic Motivation is something that arises from the outside and which are not controllable too. They are: awards benefit packages, bonuses and etc. The issue here is, as discussed employee retention is a challenge and motivational factors can influence the employee retention but to identify the actual motivational factor to an employee to be motivated is a challenge in today’s business context because it varies person to person (Tengku, 2012).

Intrinsic motivational factors are more or less same and sometimes it is very much important and powerful comparing to extrinsic motivational factors. Once these factors are not considered properly , there is no doubt that it will lead to employee attrition and turnover (Gayatri, 2013).

Reference


Gayatri, N. (2013) Employee Attrition. International Monthly Refereed Journal of Research in Management and Technology, 2(1), p.58.

Orhan, C., Cetin,B and Imran, A. (2011) A motivation study on the effectiveness of Intrinsic and Extrinsic Factors. Economics and Management, 1, p. 690. 

Tengku, S.T.M. (2012) Motivation, its types, and its impact on language learning. International Journal of Business and Social Science, 3(24), pp. 3-5.

Challenges in Employee Retention and How to retain the best employee

Organizations face many challenges in retain their trained, experienced and skilled employees. There are many challenges in retaining the employees. They are: there is a huge gap between the expected monetary benefits and the actual or the provided benefits. This is considered as the major reasons for the employee turnover. Today there is are huge opportunities out side for the employees for develop themselves, as well as there are some employees they feel bored after doing the same job or being in the same position for several years. Some other employees they seek just to find a job and not much interested on retaining in it, as well some unrealistic expectations of the employees leads to employee turnover. These are some of the reasons and challenges of the employee retention (MSG).

There is a need for the management to identify and recognize the employees who are dedicated, and results oriented the organization. These employees should be retain and its the organization's responsibility too. There are some ways of retaining the best employees. They are: work should never bored, there should be new learning every day. Employers should keep the best employees' work interest each and every day. Each and every employee must have privacy in their work place. The seniors must be there for queries to the subordinates when it is needed. The friendly work environment is another factors to retain the best employees. There should be proper rewarding, motivation schemes for the performers. The top performers should be part of decision making process. Finally the transparency and the discipline must be maintained (MSG).

According to the study conducted by Tapas etal (2012), it is concluded though there are some sensitive parameters that leads to challenges in employee retention like career development, equal rights in decision making health and wellness programs for both the employee and for his or her family and etc there are some new ways of handling man power planning in order to face stiff competition and challenges in employee retention. 

References

Management Study Guide (MSG) (2018) Challenges in Employee Retention. MSG. Available at https://managementstudyguide.com/challanges-in-employee-retention.htm. Accessed on 25th April 2019.

Management Study Guide (MSG) (2018) How to Retain the Best Employee. MSG. Available at https://managementstudyguide.com/challanges-in-employee-retention.htm. Accessed on 25th April 2019.

Tapas,D., Pratibha, G., Reeva, V and Seshanwita, D. (2012) Key factors and challenges for retention of employees in a public sector telecom enterprise. All India Management Association Journal of Management  and Research, 6(4), p. 497.

Organizational Culture and Employee Retention

Chidinma and Ikechukwu (2107), concluded in the study conducted on selected commercial banks in Anambra State on Organizational Culture and Employee Retention is that there is a positive relationship between organizational culture (Innovative Culture) and the Employee Retention (Commitment). They explain further more, when there is an innovative culture in the organization, the employees are very much satisfied and their commitment is so high towards achieving the organizational goals. Therefore the employees stay with the organization for a longer period of time.  Innovative culture includes idea generation, capability and risk taking as a sum. Employee Retention includes the commitment on organizational activities in order to achieve the organizational goal as a whole. The factors mentioned above, the idea generation, capability and the risk taking are the important factors that influence or determine the employee retention. When both the innovative culture and the commitment matches, the employees seek to be together with the organization in order to grow themselves personally and grow the organization to be in a better position in the future. 

Reference

Chandinma, V, M and Ikechukwu, C, M, . (2017) Organizational Culture and Employee Retention of selected commercial bank in Anambra State. Saudi Journal of Business and Management Studies, 1(1), p. 250. 

Job satisfaction and its impact on employee retention

Evidence from the tertiary education sector of Ghana

There are three main areas or factors that influence the employees to stay in the organization for a longer period of time rather than leaving the organization or searching for new opportunities. The factors are : P-E (Person to Environment), P-P (Person to Person), and  PF (Perpetual Fit). Person to Environment fit refers that there should be a match in between personal values, behaviors, beliefs of the employees and the corporate culture.  Person to Person fit refers that there should be a match in between employee to employee in their beliefs values and etc. This Person to Person fit will create the solidarity and respect among the employees.  Perpetual Fit refers that the level of the perceived values of the employee that the values expected to have in an organization by an employee corresponds to the values that their colleagues perceived in order to have should be matched.Employee retention is influenced by organizational culture by positively and significantly. There is a positive relationship between corporate culture and employee retention (Richard and Edward, 2016).

According to Salman et al. (2014) the organizational culture influence the job satisfaction of the employee and it will lead to employee commitment, engagement and employee retention. Therefore the organizational culture is also a factor and  challenge in employee retention. 

Reference

Richard, S, B and Edward, N, T. (2016) Organizational Culture and its impact on employee retention. European Journal of Business and Management, 8 (31), p. 159. 

Salman, H., Saira, A., Amjad, H., Sana, Y and Mohammed, I. (2014) The impact of organizational culture on job satisfaction, employee commitment and turn over intention. Advances in Economics and Business, 2(6), pp. 215-222.

How important is culture fit for employee retention?

Employee retention is a challenge and the turnover is very much expensive. The recruiting, which is based on sharing the values, believes, culture leads to achieve the organizational goals. Fitting the culture among the employees in the work place is one of the key aspects that leads to employee retention in an organization. As well it is very much important firstly to fit to the organizational culture. Employees should identify and understand the culture of the organization by understanding the behaviors, values, believes, of the organizational environment. Organizational culture can be developed or brought in two ways. It is either decisively defined or it can be come through the sum of believes, values, experiences, behaviors and etc. Once the organizational culture is clearly defined, it should be in action in every aspects including decisions, strategies, functions and all the HR process that includes recruiting to rewarding systems (Manisha and Upasana, 2015).  

When it comes to fitting to the culture is so important because, new recruitment does not match with the current organizational culture all the time. Once there is a mismatch between the new recruitment and the existing culture, it leads to poor quality of work, and then it leads to fail in achieving the organizational goal and it leads to employee turnover too which is so expensive (Brent, 2017). 

Reference

Brent, G. (2017) How important is culture fit for the employee retention?. Forbes [Online]. Available at https://www.forbes.com/sites/brentgleeson/2017/04/03/how-important-is-culture-fit-for-employee-retention/#7fe4aa557839. Accessed on 24th April 2019.

Manisha, R and Upasana, S. (2015) Study of organizational Culture and its impact on employee retention. International Research Journal of Management Science and Technology, 6(10), pp. 14-20.

8 Essential Employee Retention Factors Modern Employers Ignore

Jordan (2017) explains that there are 8 essential employee retention factors modern employees ignore. They are; work schedule flexibility, health and wellness benefits, top performer recognition and rewards, personal development, compensation, work life balance, management and leadership teams, and on boarding, training.

Retention Factor 1: Work Schedule Flexibility

Today the employees or the workforce their approach is different comparing the past generations. Earlier clock in, clock out mindset was the main focus but today it is totally different. Today’s context the individualism is the focus. The employees or the workforce, they value flexibility in their work environment.

Retention Factor 2: Health and Wellness Benefits

Health benefit is another fact that determines the employee retention. Today’s context, group health benefits have become as a standard to decide to stay with the employer or not. Factors such as a health spending account which can be insurance policies or a gym membership or reimbursement these are something that simply show that employers care about their employees’ health and well-being.

Retention Factor 3: Top Performer Recognition and Rewards

Performance and performance recognition matter a lot in organization which leads to employee retention. When it comes to performances and recognition, there are some questions arises in organization. They are when targets are achieved, are employees get recognized? Are they rewarded? Or the employees are given at least a pat on the back and sent them into with satisfaction? These questions arise when it comes to performances.

Retention Factor 4 & 5: Personal Development, Compensation

Personal Development on is another important factor in employee retention and the opportunity for the personal development should exist in the organization for the employees. When employees learn and have positional growth, the company also grows simultaneously. When it comes to compensation, there is no straight forward relationship between employee retention and compensation. When an employee performs well, when he is a top performer, the organization should pay him well. That's why Lore (2017) says " A top performer is cooking up an exit strategy, throw more money at them, it may surprise you". At the same time, money cannot motivate everyone as we think, but for employee retention, or employee turnover, or motivation factors, this can be a top priority. 

Retention Factor 6 & 7: Work Life Balance, Management and Leadership Team

Work life balance is an important factor and challenge in today's business context. Offering work flexibility is a strategy to have employee retention in their work place. That doesn't mean that employees can start work at any time and leave the organization at any time. The organization should identify and recognize what really matters to their employees. There are some retention factors under work life balance. They are: child care, additional vacation days, subsidized gym membership, or public transit passes and etc. When it comes to employees, they don't leave the company, they leave the managers or the boss. When managing the employees, it is so important to have open development policy, empowering to improve where they are lacking, extra budgets for training, studies, courses, conferences, and more over its so much important to have proper communication for sharing issues, and feedback too.

Retention Factor 8: On-boarding and Training

Recruitment policies are one of the keys that decide or influence the employee retention and turnover. There is a possibility of faster turnover of new hires, since their expectations do not match or align with the reality. There for the recruitment policies should be match with the reality, easy to understand and should have transparency too. 

These are the 8 essential employee retention factors that modern employers ignore in today's business context (Jordan, 2017)

References

Jordan, L. (2017) Rise People. 8 Essential Employee Retention Factors Modern Employers Ignore [Online].Available at https://risepeople.com/blog/employee-retention-factors/. Accessed on 4th of April 2019.

Employee Retention is a major concern, challenge and goal.

Today, employee retention is a major concern, challenge and goal for almost all  the organizations. Organizations they recruit people, train them, motivate them for achieving the organizational goal. There for the employee retention is so important when it comes to achieving organizational goals. As mentioned, employee retention is a task, challenge and goal. Employee retention is a huge task since it's a long term process to be achieved. Organizations they spend a lot on employees starting from recruitment, training, motivations, and etc. So there is a need for the employers to satisfy their employees. There for employee retention is a task for an organization (Bidisha and Mukulesh, 2013).

Employee retention is a challenge for an organization. The world is so competitive, and employees may feel bored or dissatisfied with the company after doing the same job for years. In this case, Maslow's needs hierarchy also can be considered as an reference or an example. The ultimate point of this needs theory says, that when a human fulfills one need, another need arises. Based on this, employees may leave the organization when they are bored after doing same thing for years or when they feel they have to move for the next level and other related causes (Aparna and Ishrat, 2019).

Employee retention is also a goal to an organization. Employees are the people who are going to achieve the organizational goals. So the employee retention is a must since companies spend a lot on employees. So it is so costly to loose a trained employee in two ways. One is company has spend a lot, and has to spend more on new recruitment, training and others. The second reason is, when a trained employee leaves the company, he or she will join the competitors and this is deadly situation. There for employee retention is a goal for an organization (Aparna and Ishrat,  2019).

Employee Retention


Source: www.hrtechnologist.com

References

Aparna, R and Ishrat, S,. (2019) Employee Retention A real time challenge in global work environment. Journal of Research in commerce and management, 1(11), pp.  125-130.

Bidisha, L, D and Mukulesh, B,. (2013) Employee Retention. IOSR Journal of Business and Management, 14(2), pp.8-16.

HR Technologists. (2018) HR Analytics. How to use data for Employee Retention [Online]. Available at https://www.hrtechnologist.com/articles/hr-analytics/how-to-use-data-for-employee-retention/. Accessed on 29th of March 2019.