| Leadership must be deeply invested in retention. | | | | can either hold on to their employees tight or lose them |
| Management must be skillful communicating company | | | | to competition. For gone are the days when |
| policies in a way that creates "buy-in" from their staff | | | | employees would stick to an employer for years for |
| and be open to employee input. Help create | | | | want of a better choice. Now, opportunities are |
| "ownership" in your employees. The companies with | | | | abound. |
| the best retention percentages are the same | | | | Philosophically, employee retention is important. In |
| companies that are actively committed to retention. | | | | almost all cases, it is senseless to allow good people to |
| They know that is costs less to keep good people | | | | leave your organization. When they leave, they take |
| than to continuously have to replace unsatisfied | | | | with them intellectual property, relationships, |
| employees and managers. | | | | investments (in both time and money), an occasional |
| Human Resource Management is both an academic | | | | employee or two, and a chunk of your future. |
| theory and a business practice that addresses the | | | | Employee retention strategies help organizations |
| theoretical and practical techniques of managing a | | | | provide effective employee communication to improve |
| workforce. The Human Resources Management | | | | commitment and enhance workforce support for key |
| (HRM) function includes a variety of activities and key | | | | corporate initiatives. These strategies also provide full |
| among them is deciding what staffing needs exist and | | | | support to the marketing-communication efforts by |
| whether to use independent contractors or hire | | | | helping the organization build customer loyalty by |
| employees to fulfill these needs; recruit and train the | | | | distinguishing and positioning the organization's unique |
| best employees, ensure they are high performers; | | | | products and services in today's crowded |
| dealing with performance issues; and ensuring the | | | | marketplace. |
| personnel and management practices conform to | | | | High turnover often leaves customers and employees |
| various regulations. Activities also include managing the | | | | in the lurch;Departing employees take a great deal of |
| approach to employee benefits and compensation, | | | | knowledge with them. This lack of continuity makes it |
| employee records and personnel policies. | | | | hard to meet your organization's goals and serve |
| Usually, small businesses (for-profit or nonprofit) have | | | | customers well.- replacing employees costs money. |
| to carry out these activities themselves because they | | | | The cost of replacing an employee is estimated as up |
| cannot yet afford part or full-time help. However, they | | | | to twice the individual's annual salary (or higher for |
| should always ensure that employees have - and are | | | | some positions, such as middle management), and this |
| aware of - personnel policies which conform to current | | | | doesn't even include the cost of lost knowledge.- |
| regulations. These policies are often in the form of | | | | recruiting employees consumes a great deal of time |
| employee manuals which all employees must have. | | | | and effort, much of it is futile. - Bringing employees' up |
| HRM is seen by practitioners in the field as a more | | | | to speed takes even more time. And when you're |
| innovative view of workplace management than the | | | | short-staffed; you often need to put in extra time to |
| traditional approach. Its techniques force the managers | | | | get the work done. |
| of an enterprise to express their goals with specificity - | | | | Employee Motivation leads to the change in the |
| so that they can be understood and undertaken by | | | | behavior of the employees.The following are some |
| the workforce - and to provide the resources needed | | | | effects of motivation: |
| for them to successfully accomplish their assignments. | | | | 1. Increased productivity |
| As such, HRM techniques, when properly practiced, | | | | 2. Reduced absenteeism |
| are expressive of the goals and operating practices of | | | | 3. Increase efficiency. |
| the enterprise overall. HRM is also seen by many to | | | | 4. Creativity of new ideas can be generated. |
| have a key role in risk reduction within organizations. | | | | 5. Loyalty increases. |
| Recently, organizations have begun to consider the | | | | Employees leave for many reasons, some of which |
| "HR Department" as playing a major role in staffing, | | | | you have little or no control over, such as retirement, a |
| training, and helping manage people so that the people | | | | family member being transferred or the desire to stay |
| and the organization are performing at maximum | | | | home to start a family. However, executive teams |
| capability in a highly fulfilling manner.Employee Retention | | | | should take the time to understand the reasons most |
| Effective employee retention is a systematic effort by | | | | employees leave and develop a plan to address these |
| employers to create and foster an environment that | | | | issues. Some of the most common reasons |
| encourages current employees to remain employed, | | | | employees leave include: |
| by having policies and practices in place that address | | | | 1. employee's perception of poor supervision; |
| their diverse needs. A strong retention strategy, | | | | 2. unchallenging (and therefore, uninteresting) positions; |
| therefore, becomes a powerful recruitment tool. | | | | 3. limited opportunity for advancement (in role or |
| Retention of key employees is critical to the long-term | | | | compensation); |
| health and success of any organization. It is a known | | | | 4. no recognition for good performance; |
| fact that retaining the best employees ensures | | | | 5. limited control over the work and customers; |
| customer satisfaction, increased product sales, | | | | 6. salary and benefits are not commensurate with the |
| satisfied colleagues and reporting staff, effective | | | | job requirements; |
| succession planning, and deeply embedded | | | | Retention is much more effective when you put the |
| organizational knowledge and learning. Employee | | | | right person into the right job. Know the job! Know the |
| retention matters as organizational issues such as | | | | employee and their motivations. Money is important but |
| training time and investment, lost knowledge, insecure | | | | it is not the only reason people stay with an |
| employees, and a costly candidate search are | | | | organization. If your compensation plan is in the top |
| involved. Hence, failing to retain a key employee is a | | | | 20-30% of your industry, then money will often not be |
| costly proposition for an organization. Various | | | | the reason why people leave. There should be |
| estimates suggest that losing a middle manager in | | | | Employee committees to help develop retention |
| most organizations costs up to five times his salary. | | | | strategies are a very effective strategy. |
| Intelligent employers always realize the importance of | | | | To conclude,Recognizing an employee's performance |
| retaining the best talent. Retaining talent has never | | | | reinforces positive behavior and encourages additional |
| been so important in the Indian scenario; however, | | | | positive behavior. If a team member feels that he or |
| things have changed in recent years. In prominent | | | | she is appreciated they will be much more likely to |
| Indian metros at least, there is no dearth of | | | | repeat their behaviors in the future and even put out |
| opportunities for the best in the business, or even for | | | | more effort than before. When a business leader |
| the second or third best. Retention of key employees | | | | understands the power of recognizing his or her |
| and treating attrition troubles has never been so | | | | employees the culture of an organization reacts to this |
| important to companies. | | | | recognition and moves in a positive direction helping to |
| In an intensely competitive environment where HR | | | | retain more employees. |
| managers are poaching from each other, organizations | | | | |