Swot Analysis Mgmt 303

We can see from the data that regardless of the role, retention is costly. Therefore maintaining a strong stable workforce, while reducing employee turnover is vital to the success of 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.

There are two types of turnover, voluntary turnover happens when the employee makes the decision to leave and involuntary turnover is when employees has no choice in their termination (Schmitz, 2012). Every month or sooner managers experience some of their exceedingly qualified employees leave the company. After realizing that their company is becoming less profitable is when they begin to wonder why and brainstorm on ways to retain them. In Information Technology, “the cost of recruiting new staff is high and the loss of continuity when staff leave can also be very expensive” (Bott, 2005, p. 111). In IT, human resources strive to maintain their highly skilled employees while employees’

Costs of TurnoverAnalyses of the costs associated with turnover yield surprisingly high estimates. The high cost of losing key employees has long been recognized. However, it is important for organizations to understand that general turnover rates in the

In today’s highly competitive environment, the biggest challenge that most successful businesses face is to arrest attrition and retain talent. What is more, people’s ambitions are fast changing and concepts like loyalty do not seem relevant anymore. Tried and tested methods are fast losing their effectiveness as talented employees become immune to such formula driven approaches. Money is important but not adequate to solve the problem. That your attrition rates are comparable to industry is no consolation. Companies are losing highly talented people, walking away with accumulated knowledge and experience that is not easily replicable.

Retaining skilled or talented staff can be the basis of developing real competitive advantage in your markets; it can also be a complete waste of management effort if your market strategy is not based on the use of rare or scarce skills and is simply used as a ‘mantra’ for progressive HR or employee relations practices.

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

Failing to retain key talent can pose a significant risk to the company. Retention bonuses and emergency recruiting can pose both financial risk and reputational risks.

A critical factor to the success of any company is its ability to attract top talent while retaining those already working within the company. Losing employees can have a significant impact on a company’s morale, productivity and overall profit.

There are indirect and direct costs associated with turnover and consequent employee substitution. However attrition might lead to a certain saving in some extend which is more related to economy of scale, in other words there might be a saving in terms of salary as long as the reduced number of employee can manage the same work load without incurring the problems mentioned above about: high workload, overtime, and stress. Those conditions might lead to an increment of the turnover itself.

At Sambian, management (particularly the CEO Helen Gasbarian) needs to better understand the needs and concerns of its employees. While attrition requires attention from all businesses regardless of their industry; Sambian’s inability to pinpoint its shortcomings with regard to employee concerns has resulted in the company losing top tier talent.

The IT/ITES sector is the backbone of Indian economy. It earns lot of foreign income to boost the Indian economy. Even in the economic turmoil over the globe, particularly in developed countries, though this sector had little affected, could come out successfully managing the entire economic imbroglio. High attrition in the IT/ITES industry has always been its greatest concern and a subject of much analysis and debate. Organizations use different methodologies for calculating their attrition rate. HR experts feel that it is a know factor that attrition calculation is gray area which does not always depict the true picture while a few techniques are common there are no proven theories yet. Further, the approach to this calculation might vary from organization to organization. The Tamil Nadu, Particularly, Chennai is considered to be one of the biggest IT hubs in India having presence of very big IT companies. The availability of skilled employees with cheap labour cost in Tamil Nadu is an important reason. AT the same time the rate of attrition are also felt in these companies. Presently, Tier II cities like Madurai, and Coimbatore were taken place in the IT map. The employee retention is also felt in the IT companies situated in Madurai also. In this context, the researchers, attempted to find out the reasons for

Employee retention whether argued from a nonprofessional or advanced point of view remains very crucial. Employee retention is one of key things that every employer seeks to do. Every employer whether in the US, Europe, Asia or any other part of the world would affirm to that. It is therefore clear that no business can thrive without employees, even the self-employed jobs means that one is an employee to oneself and the moment one seizes to ensure that the job is in good condition, it immediately collapses. Employee retention has however been proven to be profitable for most businesses. Look at it this way if for example you have an employee who has served for ten years it is likely to find that he or she has established a routine he or she knows what to sell, when and where unlike a newly employed employee.

According to What is SWOT Anlysis (2011), SWOT analysis is an analysis used to identify the internal factors (strengths and weaknesses) of the company as well as external factors (opportunities and threats) of the company.