Major Factors Of Employee Retention

In the globalized and changed competitive business world, it is important responsibility to deal with employee turnover for any organization. Effective and efficient management of employee turnover is an essential task to achieve the organizational overhead goals. Significant amount of research has been undertaken to understand the major causes of employee's turnover and retentions mechanisms that organizations should develop, especially in the field of healthcare.

Retention of key employees: the entering into of the Plan, and subsequent contributions made to the

By discovering the reasons as to why employees leave the organisation, strategies for organisations to increase retention can then be identified (Mowday 1984).

Retaining employees is one way the turnover rate can decrease, Branham (2000), focuses on retaining valuable employees by incorporating four key elements. The first key elements is, “be a company that people want to work for”. There are many companies that have been labeled as, “employers of choice”. These employers all have something in common, which is how they value their employers (Branham, 2000). They treat their employees with respect and like family. With being an “employer of choice,” people are the most valuable asset; not just customers but employees too. Many companies go above and beyond for their customers, but not for their employees, yet they wonder why they are losing valuable talent.

In this paper Team C has discussed the issue of poor employee retention concluding in a high employee turnover rate. This is an issue that can be common among some companies and that is a great example of

Riordan's annual employee satisfaction survey results indicated a strong trend of employees possibly leaving for another company offering 10% more money. The survey in 2001/02 results was the complete opposite of the 2003/04 results which indicates a downward trend; leading towards a retention issue. An opportunity Riordan can consider is identifying components of effective retention initiatives. Riordan can develop and implement many retention and career development processes starting with various pay types; Merit, Lump Sum, Commissions, Individual Incentives, Stock Options. The effectiveness of these retention options are determined by interpersonal intelligence gathered during interviews and surveys (Dreher.G & Dougherty, T . 2001)

The retention of employees basically refers to different procedures and practices that help retain employee for a much longer period of time. The following issues should be taken under consideration if they want their employees retained for a longer time period: management, communication, salaries, decision making, perks, career development, recruitment, understanding and appreciation (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.

As mentioned before, there many possible reasons for retention in the industry. Employee benefits can impact retention. Most organization offer benefits packages to lure employees and hope to retain them for a long time based on benefits. “Depending on the business, meeting employer business goals may be highly dependent on having the right human capital and keeping workers satisfied and motivated” (Rappaport, A. M. 2013). Assuming a healthy workplace helps with cost savings and provides less professional and personal stress for employees. Making sound business investments from the employer perspective, is to provide attractive benefits packages that help with retaining valuable employees and keeping up with the current business market remaining

1. Choose any topic from the text, encompass the topic in a real world situation such as an industry.

Workforce turnover is a complex and important issue amongst today's organisations. It is perhaps one of the most often cited cause of increased cost and decreased productivity. No wonder people management has become an important frontier to extract and create more value from company assets. On comprehending the articles, it has become evident that organisations have moved beyond the traditional approach of only investing in core business activities, to invest in employee retention strategies. Many organisations, for example St. George Bank

Employee retention has always been an important focus for human resource managers. Once a company has invested time and money to recruit and train a good employee, it is in their own best interest to retain that employee, to further develop and motivate him so that he continues to provide value to the organization. But, employers must also recognize and tend to what is in the best interest of their employees, if they intend to keep them. When a company overlooks the needs of its employees and focuses only on the needs of the organization, turnover often results. Excessive turnover in an organization is a prime indicator that something is not right in the employee environment. We will look at

Turnovers lead to hidden costs such as new hiring’s, trainings of new recruits, a sudden reduction in organizational productivity during the learning curve of new employees, supervision required is getting increases and it affects other functions such as customer satisfaction, speed of service and etc. Therefore companies need to take corrective and preventive actions in terms of employee retention in view of achieve organizational goals (Hanif, Khalid and Khan,

Employee retention has always been an important focus for human resource managers. Once a company has invested time and money to recruit and train a good employee, it is in their own best interest to retain that employee, to further develop and motivate him so that he continues to provide value to the organization. But, employers must also recognize and tend to what is in the best interest of their employees, if they intend to keep them. When a company overlooks the needs of its employees and focuses only on the needs of the organization, turnover often results. Excessive turnover in an organization is a prime indicator that something is not right in the employee environment. We will look at

Retention is not only important to reduce the turnover costs but to retain talented employees. According to Ramlall (2004), when every 10 managerial level employee leaves an organization, a company experiences approximately loss of $ 1 million.