Employee Retention Essay

An organization is basically where people unite together and work towards achieving a mutual goal. The key to success for institution of higher education is that they should make sure that the employees feel as if they are at the right place and the needs of the employees should be met so that they can work up to their potential. According to a few studies the employee turnover cost could be as huge as 150% of the annual salary (Belanger and Caron, 2005).

Staff retention is the process of keeping staff in the business; businesses want to keep their employees working for them for as long as they can. During the employees working period, the employee would have accumulated experience and developed their skills whilst working for that business. Finding a new employee will be easy to find however they will not encounter the same knowledge and level of experience. ‘On average the cost of replacing an employee is £30,000, it also takes up 28 weeks on average for a new recruit to get up to speed.’ When employees decide to leave the company, the employer should preform an exit interview. During the exit interview, the employer may discover the reason/s why the employee wants to leave. It may be that he/she feels as if they are not being paid enough. Employers can try to resolve the issues, which may reduce the risk of other employees leaving the company. This improves performance as retaining staff means that you will have more employees working for. A great number of employees mean that you are more likely to make more profit at a faster rate, this will have a positive impact on the business’ financial performance. Retaining staff also means that they will continue to develop their skills and accumulate experience even further. Once a staff member has been there for a long time they may be promoted to a managerial role.

Schein (1983) advocates when change needs to be adaptable in an organization when on one side employees that have been with the company for a long period of time they have become

“Setting the right tone in an organization by creating a positive, humanizing environment contributes immeasurably to staff effectiveness. Creating an organizational culture in which values are clearly stated and staff are encouraged to invest in achieving the agency’s mission.” (Brody, pg 379) When taking a look at any organization we need to look at the many factors that come in to play when trying to make an organization run smoothly. Having good leadership skills is vital for the growth of any agency. “A skilled, committed, and caring staff is crucial for every productive human service organization. (Brody 91) At times employers forget that your employees are the most valuable asset within their organization, without the employee’s drive

If proper action is taken on employee workload, work stress, salary, job satisfaction, and work to family conflict, the turnover ratio alternatively decreases and organization performance will enhance. Derek (2006) found a positive relationship between employee turnover and organization efficiency, and concluded that there is insignificant negative relationship between employee turnover and organizational performance.

Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs. These practices are used to prevent valuable employees from leaving their jobs. How to retain valuable employees is one of the biggest problem that plague organizations in the competitive marketplace. Nowadays, employee retention is the most critical issue facing hotel managers as a result of the shortage of skilled labor, low economic growth and employee turnover. A wise management will learn how to attract and keep good employees, because in the long run, this workforce will make or break a hotel 's reputation. The purpose of this research is to: 1) assess employee retention policies and practices designed and applied in floating hotels, and 2) describe the importance of retaining critical employees and developing strategies to enhance employee retention practices, and 3) determine the factors that most significantly influence employee retention to meet the diverse needs of employees and create an environment that encourages current employees to remain employed. The results of this study were clarified that compensation, fringe benefits and job satisfaction play a vital role in employee 's motivation which leads to employee 's retention. Similarly, Training, career development and recognition were found motivating factor which leads to

The most important factors weighing into an employee’s decision to stay or leave is based on the balance of costs and benefits. To put in place a solid retention program, it is important to weigh out what the duties are of your employees and make sure not to overwhelm them with an immense workload. In addition to creating a balanced workload, benefits are vital to retaining valuable employees.

Management can improve culture within an organization and increase employee retention is by implementing strategies that benefit employees. This can be done by having flexible workplace policies. Some ways that will increase employee retention and employee loyalty is by increased sick day approvals, longer paid vacation days, as well as increasing wages and benefits (Boushey and Glynn, 2012)). Furthermore, management can implement strategies to encourage friendly competition within an organization by giving employees incentives and rewards. An example of a company that understands the importance of employee satisfaction is Costco. According to Costco’s CEO when gas prices were high, the organization made the initiative to help employees. For

Employee retention because employees want to be compensated for the work they do. Being compensated on the job is like being rewarded for your work. Receiving benefits is the icing on the cake because not all employers offer benefits and it’s also a way to keep your employees healthy and have less sick days taken.

* The data was collected through questionnaire. The responds from the respondents may not be accurate.

The goal of virtually every business operating today is essentially the same: to make money. When it comes to the fine art of turning a profit, there are as many different factors that influence whether or not a company makes money as there are ways to make it. All successful companies begin by hiring people who best fit the position, and in the modern-day world of business, a considerable amount of time, effort, or money is invested in this endeavor. Once a stellar candidate has been hired, however, it does the company no good if, six months down the road, they quit because the working environment turned out not to be the right fit for them. Employees may leave a company for many

Employee retention is the solution for improving organizational performance (Dey, 2009). An organization who wants to ensure they keep their employees from leaving their business to work for a rivalry organization is to maximize job satisfaction. To maximize job satisfaction the organization will need to make changes to their training process to ensure that each employee fully understands his or her position in the company. The company should also speak with the employees on how they feel about their job (Spector, 2008). An organization that can create a friendly atmosphere for the employees will have a better chance of keeping them.

Employee Retention means that to encourage the employees to remain with the organization for the maximum period of time or until the completion of the project. The organization and the employees will be benefit for the employees’ retention. Robert, Mathis, John, Jackson (n.d) found that most of the employees leave an organization because of the frustration and constant friction with their supervisor or other team members. There are some other factors occur the turnover of the employees which are low salary, lack of growth prospects and motivation. The management must try to retain the employees who are really important to the organization. It was efficiency the organization performance

The purpose of this report is to portrait , the major challenge for an organization is to create new strategies to retain its Valuable, Experienced &Talented employees. The management can control employees quitting within no time, but can’t put a complete full stop to it…… The major burden is on HR MANAGER ,the

Laura Michaud expresses the importance and what it takes to retain employees in her article, The Value of Retaining Employees. It’s hard to retain employees especially when opposing organizations try to influence employees with offers of more money or more perks. Michaud discusses five important retention tips that will keep employees happy; build relationships, offer praise, listen, create a fun environment, and strengthen the team. Retention is important for a company because losing employees can potentially cost a lot of money. “According to the U.S. Department of Labor, it costs a company one-third of a new hire’s annual salary to replace him or her” (Michaud 2000). The direct costs the company uses to find new employees includes