Human Resource Management

NRMT90018



Assignment 1
Muhammad Naveed Tareen
Student No: 664345
16-05-2014

DEALING EMPLOYEE RETENTION: PROPOSED CASE STUDY OF
FRUIT TREE NURSERY
ABSTRACT:
Selection, training and evaluation of employees incur a handsome amount of capital and
energy. Their retention in the organisation is very vital to sustain and compete the market. In
this essay it is realised that place which becomes vacant due to voluntary turnover coupled
with the retirement and promotion of senior employee; decrease the production capability of
firm. It is perceived that employee retention in the firm is critical in firm growth. A proposed
case study of retaining employees in fruit tree nursery is presented here as an example.
INTRODUCTION:
Human capital is considered as the most important source of an organisation. Employee is
the high valued asset for a firm because it incurred many resources on their hiring, training
and induction in the firm. Therefore, an organisation would never want to lose its skilled
employee. Retention of the employee is very crucial for firm because they play very vital
role. The attrition of employee can decrease the firms competitive advantage. In recent
years, attraction and retention of employees has become an increasingly significant aspect
of building organisational capabilities to ensure sustained competitiveness (Holland,
Sheehan et al. 2007). According to (Cascio 2014) the international market is stabilizing after
recession there is demand for skill with lucrative incentives which result in voluntary
turnover. In this situation the retention of employees is more vital for firm. The firm retain
their good employees by providing them good work environment, attractive pay scale,
performance based incentives (bonus) skill development opportunities/education,
appreciation and reward.


RETENTION STRATEGIES:

According to (Kramar 2013) following retention strategies are suggested to hold the
employees:
Employers must act as torch bearer for employee and guide them to attain the task.
Employers must convey a clear-cut strategy of the firm to follow.
Employers must be aware of work place problems and sole these problems.
Employers must provide the opportunities of training and promotion in job.
Employers should be information about the workforce diversity and the knowledge of
how to utilize it.

CHALLENGING WORK:
Employees with good skills see interest in challenging work with sufficient resources and
under effective management.
RECOGNITION:
prefer to hold the job when they realize that the service they rendered are recognised and
praised by the managers. This is achieved through compensation in form of bonus or
appreciation by the colleagues.
WORK LIFE BALANCE:
Employees intend to stay in organisation when they have good work life balance, where in
they can give time to their families. Flexible work timing to provide opportunity to do another
job also retain employee in organisation.



APPLICATION TO A PROPOSED CASE STUDY OF FRUIT TREE
NURSERY EMPLOYEES:
Fruit tree propagation is very skill job- raising rootstocks, budding and nursery management
all are highly technical tasks. Employee do not attracted towards the nursery management
due to monotony of work, urbanization and attraction in other industries. Retention of
employee in nursery sector is very crucial because unlike other business the alternate for it
not easily available. As the employee need extensive training to work in nursery therefore it
is critical to adopt retention strategies especially job security, work environment and pay
benefits to hold the labour in the firm.

CONCLUSION:
Retention of employees is vital for the growth and competition of firm in market. Employers
must adopt best retention strategies to hold its employees in the organisation to avoid the
failure of business. Turnover of employees costs both in loss of human capital and the loss
of capital incurred on its hiring and training. Agriculture in particular and nursery raising in
special cannot endure employee turnover because there is shortage in the market for
technical labour. The entrepreneurs must assure that they follow all appropriate retention
strategies to prevent their employees from leaving job.

References:
Cascio, W. F. (2014). "Leveraging employer branding, performance management and human
resource development to enhance employee retention." Human Resource Development
International 17(2): 121-128.

Holland, P., et al. (2007). "Attracting and retaining talent: exploring human resources development
trends in Australia." Human Resource Development International 10(3): 247-262.

Kramar, R., Bartram, T., De Cieri, H., Noe, R., Hollenbeck, J., Gerhart, B. and Wright, P. (2013). "
Human Resource Management in Australia." 5th Edition.