A STUDY ON EFFECTIVENESS OF EMPLOYEE RETENTION WITH REFERENCE

TO VIJAY AQUA PIPES(P) LTD

INTRODUCTION
In order to retain employees and reduce turnover managers must learn to align their goals with
the end goals of employees. By aligning the rewards and needs of employees, managers can
determine the proper reward system to most effectively increase job satisfaction of employees.
Valence is the degrees in which the reward offered by an organisation aligns with the need of
employees seek to fulfil. High valence indicates that the needs of employees are aligned well
with the reward system an organisation offers. Conversely, low valence is a poor alignment of
the needs with reward and can lead to low job satisfaction and thereby increase turnover and
decrease retention. Expectancy theory implementation has several other aspects that can lead to
high job satisfaction and high retention rates for organisations.
Promote activities which bring the employees closer. Organize outdoor picnics, informal
get together for the employees to know each other better and strengthen the bond among
themselves. Let them make friends at the workplace whom they can really trust.

Friendship

among employees is one strong factor which helps to retain employees. Individuals who have
reliable friends at the workplace are reluctant to move on for the sake of friendship. No one likes
to leave an organization where he gets mental peace. It is essential to have a cordial
environment at the workplace. Retention of key employees is critical to the long-term health and
success of any organization. It is a known fact that retaining your best employees ensures
customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective
succession planning and deeply imbedded organizational knowledge and learning. Employee
retention matters as organizational issues such as training time and investment; lost knowledge;
insecure employees and a costly candidate search are involved. Hence failing to retain a key
employee is a costly proposition for an organization. Various estimates suggest that losing a
middle manager in most organizations costs up to five times of his salary. Intelligent employers
always realise the importance of retaining the best talent. Retaining talent has never been so
important in the Indian scenario; however, things have changed in recent years.

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SCOPE OF THE STUDY

This study helps an organisation to gain additional knowledge about various retention
techniques. This study points out the opinion of the employees in terms of their satisfaction
with the current retention strategy practices.
The study is essential for the organisation it would assist them in effective decision making.
This study assists the organisation in providing recommendations and suggestions on the
improvement of employee retention.

OBJECTIVES
PRIMARY OBJECTIVES:

To study the effectiveness of employee retention strategy in VIJAY AQUA PIPES (P)
LTD.

SECONDARY OBJECTIVES:

To analyse how the retention of knowledge and skills of employees permits the long

term success of the organisation.

To improve commitment and enhance workforce support for key corporate initiatives
To analyse how it helps an organisation in reducing turnover cost.
To understand the technique helps to maintain a diverse workforce in the organisation.
To study the most important factors contributing for retention
To helps an organisation to create pleasant work environment both for employers and

employees.
To suggest an organisation to improve employee retention.

REVIEW OF LITERATURE
THEORETICAL REVIEW:
EMPLOYEE RETENTION STRATEGIES:For an organisation to do well and earn profit is essential that the high potential
employees stick to it for a longer duration and contribute effectively An employees look for a
change when his job becomes monotonous and doesnt offer anything new. It is essential for
everyone to enjoy whatever he does.

Constant disputes among employees encourage them to go for a change. Conflicts must

be avoided to maintain the decorum of the place and avoid spreading negativity around.
Employees recognition is one of the most important factors which go a long way in
retaining employees. Nothing works better than appreciating the employees. Their hard

work must be acknowledged.

The salary of the employees must be discussed at the time of the interview. The
components of the salary must be transparent and thoroughly discussed with the

individuals at the time of joining to avoid confusions later.

Constant disputes among employees encourage them to go for a change. Conflicts must

be avoided to maintain the decorum of the place and avoid spreading negativity around.
Promote activities which bring the employees closer. Organize outdoor picnics, informal
get together for the employees to know each other better and strengthen the bond among
themselves. Let them make friends at the workplace whom they can really trust.
Friendship among employees is one strong factor which helps to retain employees.
Individuals who have reliable friends at the workplace are reluctant to move on for the
sake of friendship. No one likes to leave an organization where he gets mental peace. It is
essential to have a cordial environment at the workplace.

Frustration crops up whenever there is a mismatch. A finance professional if is hired for a

marketing profile would definitely end up being frustrated and look for a change. The
right

candidate must be hired for the right profile. While recruiting a new candidate,

one should also check his track record. An individual who has changed his previous jobs
frequently would also not stick to the present one and thus should n The human resource

department must ensure that it is hiring the right candidate to be hired.

Employee recognition is one of the most important factors which go a long way in
retaining employees. Nothing works better than appreciating the employees. Their hard
work must be acknowledged. Monetary benefits such as incentives, perks, cash prize also
motivate the employees to a large extent and they prefer sticking to the organization. The
performers must have an upper edge and should get a special treatment from the

management.
Performance appraisals are also important for an employee to stay motivated and avoid
looking for a change. The salary hike should be directly proportional to the hard work put
by the employees. Partiality must be avoided as it de motivates the talented ones and
prompt them to look for a better opportunity.

RETENTION POLICIES AND PROCEDURES

In Effective succession planning the employers will seek integrated retention policies
and procedures. These include:

Development of early tracking procedures for promising new hires

Tracking of reasons for quits, especially among the high potential workers
On going employee attitude surveys to provide information for successful
Retention strategies and to predict turnover
Trucking voluntary turnover by department then focus efforts on the problem areas
Providing incentives for people to remain the with organization- these are not always
Financial (Rothewwll,2001)

REASONS FOR EMPLOYEES LEAVE AN ORGANISATION: Expectation not met

Mismatch between the person and the role

Mismatch between person and culture of the firm
Heavy work load
Less or no health or medical and other benefits
Improper leave benefits

THE 3 Rs OF EMPLOYEE RETENTION

To keep employees and keep their satisfaction levels high, any organization needs to
implement each of the three Rs of employee retention: respect, recognition, and rewards.

RE
SP
EC
T
RECOGNITI
ON

REWARD

Respect is esteem, special regard, or particular consideration given to people. As the

pyramid shows, respect is the foundation of keeping your employees. Recognition and rewards
will have little effect if you do not respect employees.
Recognition is defined as special notice or attention and the act of perceiving clearly.
Many problems with retention and morale occur because management is not paying attention to
peoples needs and reactions.

Rewards are the extra perks you offer beyond the basics of respect and recognition that
make it worth peoples while to work hard, to care, to go beyond the call of duty. While rewards
represent the smallest portion of the retention equation, they are still an important one.
You determine the precise methods you choose to implement the three R's, but in general,
respect should be the largest component of your efforts. Without it, recognition and rewards
seem hollow and have little effect or they have negative effects. The magic truly is in the mix
of the three.
When implemented, the 3 R's approach yields reduced turnover and the following benefits:
Increased productivity,
Reduced absenteeism,
A more pleasant work environment (for both employees and management/employer),
Improved profits.
Furthermore, an employer who implements the three R's will create a hard-to-leave
workplace, one known as having more to offer employees than other employers. It becomes a
hard-to-leave workplace one with a waiting list of applicants for any position that becomes
available purposefully, one day at a time.

TEN FACTORS THAT AFFECT EMPLOYEE RETENTION:Most managers understand the importance of employee retention and its impact on the
overall health and vitality of an organization. The importance of retaining top organizational
talent will only increase over the coming years as the massive cohort of baby boomers begin to
reach retirement age making it easy for younger employees to find work.

Earlier, we identified some useful tips to help improve employee retention in an organization.
Given the importance of employee retention, here is another list of 10 important factors that can
affect employee retention in any organization.

1. Shorten the feedback loop.

Do not wait for an annual performance evaluation to come due to give feedback on how an
employee is performing. Most team members enjoy frequent feedback about how they are
performing. Shortening the feedback loop will help to keep performance levels high and will
reinforce positive behaviour. Feedback does not necessarily need to be scheduled or highly
structured; simply stopping by a team member's desk and letting them know they are doing a
good job on a current project can do wonders for morale and help to increase retention.
2. Offer a competitive compensation package.
Any team member wants to feel that he or she is being paid appropriately and fairly for the
work he or she does. Be sure to research what other companies and organizations are offering in
terms of salary and benefits. It is also important to research what the regional and national
compensation averages are for that particular position. You can be sure that if your compensation
package is not competitive, team members will find this out and look for employers who are
willing to offer more competitive compensation packages.
3. Balance work and personal life.
Family is incredibly important to team members. When work begins to put a significant
strain on one's family no amount of money will keep an employee around. Stress the importance
of balancing work with another one's personal life. Small gestures such as allowing a team
member to take an extended lunch once a week to watch his son's baseball game will likely be
repaid with loyalty and extended employment with an organization.

4. Beware of burnout.
Staff adequately to reduce the amount of unwanted overtime a team member must work.
Some employees enjoy the extra money that accompanies overtime hours, while others would

rather spend their time with their families or doing other activities they enjoy. Burnout can be a
leading cause of turnover. Recognize the warning signs and give employees a break when they
need it.
5. Provide opportunities for growth and development.
Offer opportunities for team members to acquire new skills and knowledge useful to the
organization. If an employee appears to be bored or burned out in a current position offer to train
this individual in another facet of the organization where he or she would be a good fit. Nobody
wants to feel stuck in their position will no possibility for advancement or new opportunities.
6. The ability to provide input and be taken seriously.
Everybody has opinions and ideas, some are better than others. However every team member
wants to feel that their input is welcome and will be taken seriously without ridicule or
condescension. Some of the greatest ideas can come from the most unlikely of places and people.
Creating a culture where input is welcome from all level of the organizational chart will help
your organization grow and encourage employee retention.
7. Management must take the time to get to know team members.
It's not a big surprise that one of the greatest complaints that employees express in exit
interviews is a feeling that management didn't know they existed. Nobody wants to feel like just
another spoke in a big wheel. Managers are very busy - everybody is busy, but it is crucial that
managers and supervisors take the time get to know the team members who work under them.
Learn and remember a team member's name, what skills and talents they bring to the table, and
what their business interests are. The time spent by management getting to know team members
is well invested and can eliminate the headaches caused by having to continually hire and retrain new employees.
8. Provide the tools and training an employee needs to succeed.
Nothing can be more frustrating to an employee than a lack of training or the proper tools to
successfully complete his or her duties. You wouldn't try to build a house without a hammer, so
why should an office job be any different? Providing a team member with the tools and training

she needs to be successful shows a commitment and investment in that employee and will
encourage the team member to stay with the organization.

9. Make use of a team member's talents, skills, and abilities.

All team members have knowledge, skills, and abilities that aren't directly related to their job
description, but are still useful to an organization. Utilizing a team member's talents in areas
other than their current position will indicate to an employee that management appreciates and
recognizes all that an employee has to offer to the organization. This can also provide work
variety and helps to break up the everyday grind of work.
10.

Never threaten a team member's job or income.

While threatening an employee with termination or demotion might seem like a sure fire way
to get the results needed from him or her , doing so will likely cause the employee to leave the
organization. Put yourself in the employee's shoes, what is the first thing you would do if your
job was threatened? Odds are you would probably update your resume and start checking for
open job postings expecting the worst. If a team member's performance is not what you had
hoped it would be, work with that team member on ways to improve his performance, saving
termination only as a last resort. Take some time and seriously evaluate what your organization is
doing to encourage a high retention workforce. Having a seasoned and well trained workforce
can deliver a competitive advantage that is difficult to replicate.

HOW TO IMPROVE EMPLOYEE RETENTION:Over the years, Engage has implemented a number of policies that serve the dual purpose of
attracting potential employees and keeping current ones passionate and committed. Here are a
handful of examples:
Instead of a traditional vacation policy, the company lets employees take time off from a
leave bank, in which they can accumulate as many as 60 days off to use as they see fit. This
policy has helped with employee retention, particularly by making it easier for female employees
starting families to take time off and ultimately return to work.

During the hiring process, Engage administers the DISC Personality test, which charts the
four characteristics, drive, influence, steadiness, and compliance, to build personality profiles for
new hires. All employees' test results are public knowledge, which Hoffman feels helps people
understand one another and get along.
By setting quarterly goals with rewards attached, such as iPods for the whole team or a trip to
a nice restaurant, Engage can encourage employees beyond the competitive, and potentially
divisive realm of salary bonuses. The group nature of these rewards is important, says Hoffman,
because "somebody who is not motivated by getting an iPod knows that other people in his or
her group are and doesn't want to let them down."

10 Strategic Tips for Employee Retention (Jaime Menor, 2009)

1. Balance work and personal life
2. Competitive compensation package
3. Treat each employee with respect and as an individual
4. Positive Work environment
5. Eradicate Favoritism
6. Communication and availability
7. Employee Empowerment
8. Placing the Right Talent for the Right Job
9. Celebrate successes, big and little and make the workplace fun.
10. Workplace flexibility

How to Increase Employee Retention (Brad Booysen, 2011)

Every company needs talented, hard-working staff, and the best way to retain good
workers is to keep them happy. That's why having an employee retention strategy is important.
Here are some employee retention strategies you can use to keep employees "on your team."

1.

Encourage communication:
Share your company's vision with staff and make them feel part of the plan.

Communicate your enthusiasm for what your company does so that employees see the "bigger
picture" and how they fit in to it. Have monthly meetings with employees to get feedback on
their job performance.
2.

Recognize employee achievements for better employee retention:

Recognize employees who are productive and motivated, and make them feel part of the

business "family" by recognizing personal achievements. Reward employees as a team for

working hard on a project by hosting a healthy team lunch.
3.

Keep them healthy:

Healthy employees are more productive. Sponsor health screening programs to check for

health problems. Bring in experts on nutrition and physical fitness to talk to employees about
staying active and making healthier food choices. A healthy employee is a more productive one.
4.

Reduce stress in the workplace:

Encourage employees to take breaks or take a short walk outdoors. Keep an open door

and encourage employees to discuss stress-related issues so you can help correct them. Bring in
experts to talk about how to deal with work-related stress. Humor keeps employees healthy and
happy - and that's a good thing when it comes to employee retention.
Employee Retention Plan (Ivo Legenda, 2011)
Smart companies develop Employee Retention Plan to improve their current Employee
Retention Rate and develop high performance organizations. How do you develop your
Employee Retention Plan? First of all you need to identify the most important drivers for Morale,
Loyalty and Satisfaction. Employee Retention Rate depends on many factors such as overall
company environment, company policies, company culture, work environment, employee
development, etc. Creating High Retention Workforce is the number one priority of a successful
Retention Plan. Improve morale through effective rewards and recognition system and develop
relevant rewards for your workforce.

Executive Search Firms on Employee Retention Guidelines (Charles S. Cox, 2012)

To start, organizations need to understand that finding and acquiring talented employees
is difficult at the best of times, and all the more so when the economy is in a slump and the job
market is being flooded with under qualified individuals. What's more, in order to retain the
talent they have, companies will need to stop seeing these individuals as tools and as individuals
who should be supported and encouraged if they are to be effective and help the company
achieve its goals. To help guide companies in these endeavors, here are some employee retention
tips courtesy of executive search firms.

Keeping Motivated
Providing the Corporate Ladder
Developing a Brand
Building Relationships
Open Decision Making
Take Time to Listen
Effective Management
Be Supportive
Become More Than a Business
Share the Company Vision

Practices That Will Surely Improve Employee Retention in Your Office (Ashok Grover,
2012)
If employee retention is not an issue with your organization, you need not read any
further. There is a fair chance that either your organization does not belong to this world or it has
perfectly understood and put into practice the secrets of the trade!For others, all these secrets are
revealed hereunder!
1. Having Right People - Before talking about retention, go back to the basics and select the
people you would like to retain. If enough time and efforts are spent to check not only technical
but behavioral aspect also, result will be the employees who would like to stay and company
would like to retain.

2. Good Salary Levels - Though money is not everything, it is a big equalizer. Unfortunately,
while many companies feel that it is only the money what matters, there are others who feel that
money does not matter at all. The truth lies somewhere in between and a fine balancing act is
required.
3. Internal Pay Equity - Many a times, the pain point is not one's lower salary; but
comparatively higher amount being paid to another colleague. I have seen employees jumping
with joy after their increments are announced... till they know about others. Similarly, a new
employee may disturb older employees who may not be getting similar amounts or vice versa
when the newcomer realizes that he could have negotiated better. All of them are human beings
and there is nothing wrong in comparison.
4. Benefits Programs and Retirement Benefits - Even in the environment of CTCs (cost to the
company), benefits programs like health insurance, recreation facilities, family get-togethers and
retirement benefits are extremely important. These make employees feel part of a close-knit
family and remain motivated.
5. Role Clarity - Nothing can be more damaging than a lack of clear job responsibilities. In such
situations, contrary to normal belief, employees performance is well below expectations, while
they feel that they are much more than they should. So, the result is a hopeless lose-lose
relationship.
6. Impartiality - Employees feel highly de motivated when they feel that they are not treated
equally and favoritism is practiced in the company. This invariably happens whenever there are
policies with clauses allowing management discretion.
7. Employee Empowerment - Employees perform much better when they are given the tasks
and freedom to perform the same independently. Workplaces that promote employee
empowerment, employee enablement, and broader spans of control by managers, will result into
superior performance. Micromanaging drives employees away, empowerment improves
retention.
8. Responsive Human Resource Team - Adequate and timely response to employee queries and
concerns by the Human Resource department keeps the environment healthy. In many

companies, the HR department is perceived as the policing arm of management. A responsive

HR department is one of the strongest reasons to ensure high degree of employee retention.
9. Two Way Communication - Employees feel much more comfortable when they feel that they
are being heard. This multiplies when they get face-to-face communication opportunity with
their supervisors and are given feedback about their performance. This communication helps
them feel recognized and important.
10. Performance Linked Reward System - Performers believe that the reward system should
be based on merit and contribution. When some management try to keep all their employees
happy through similar annual increments, it results into demoralization. In such case, while the
status of poor performers
It is essential that companies interact with their employees to find
out such other things as reasons why they enjoy working with the company and what are those
things about their job profile which is the most motivating.

REVIEW OF JOURNAL AND ARTICLES

The effort to retain the best personnel begins with recruiting. Attracting and retaining the
best people are not two different things, but is the same thing. Both require creating and maintain
a positive reputation, internally as well as externally. Employers must be honest with the recruit
about the beliefs, expectations, organisational culture, demands and opportunities within the
organisation. By representing the organisation realistically, a department will attract those who
will be content working within the culture (Marx, 2000), Denton (2000, p.47) follows this up
stating that, the better the match between recruits and the organisation the more likely you are to
retain them.
Lynn (2001) believes that you must take time during the hiring process to make wise
decisions. The employer must be candid about the working conditions, responsibilities,
opportunities and the detail to reduce the chances of making hiring mistakes. Taylor and Cosenza
(2002) strengthen this thought by noting that it is imperative that companies gives prospective
employees a true picture of the organisation. The literature was clear in pointing out that if
departments want to increase retention they must start with a solid recruiting process.Retention

is a voluntary move by an organization to create an environment which engages employees for a

long term Chaminade (2004 cited in Chibowa et al. 2006).
According to Samuel and Chipunza (2007), the most important purpose of retention is to
look for ways to prevent the capable workers from quitting the organization as this could have
negative effect on productivity and profitability. The view that the main purpose of retention is
primarily for organizational gains is similarly viewed by Humphreys et al. (2007), who in
describing the concept, place the focus of retention in terms of some notion of adequacy or
sufficiency of length of service, which can be measured in terms of a return on the costs of
investment associated with training and recruitment or the effects on patient care that are
considered to be optimal.

Employee Turnover
Gberevbie (2011) referred to frequent labour turnover as a state of affairs in an
organization where it is seen that employees tend to leave or resign from their jobs because of
best known reasons based on their point of view concerning personnel policies and practice of a
firm. Frequent labour turnover at work has been found to be causing harm to performance,
especially when employees are going to the direct competitors of the organization (Chartered
Institute of Personnel Development (CIPD 2012)).
The CIPD (2012) further argued that it is essential for employers to completely
understand their labour turnover and how these affect the organizations effectiveness at
achieving their overall set of goals. This implies that when the staff turnover in an organization is
found to be higher than usual, the performance of that organization would be relatively low
because there will be a lack of availability of competent employees arising from frequent
turnover of organizational workforce. (CIPD 2012)
Excessive staff turnover is costly for an organization (North et al. 2012). They added that its
effect goes above the financial costs inherent in the recruitment, selection and training (new
employee). Thereby, Larsen (2000) found that when employees are highly satisfied, they will
remain in the organization, and as a result rising the rate of retention of that organization.

Factors having an impact on employee turnover

According to Foster and Krolik (2008 cited in Stern, 2010) the five following factors
have an impact on employee turnover:

A tactical IT environment
Somehow motivation tends to lose its essence when organizations are ignorant to the fact
that IT forms part of their organizational strategy and of the employee work particularly the
tactical projects. Employees tend to develop feelings that their role does not enhance enough
value or furnish chances for them to grow, especially if industry peers are working on new
developments, when they are not provide with the opportunity to form and carry out strategic
initiatives.

Factors influencing employee retention

Employee retention has been a major concern of organizations all over the world.
Although there has been a common trend among organizations to outsource work that is routine
and non-core, retaining people at strategically important positions remains a major concern.
A number of factors have been assembled so as to give explanation of the reasons why
employees leave an organization for others, or in some situations they just leave the country.
Some of the reasons are inappropriate hiring practices, unprofessional management style, no
good recognition, lack of competitive compensation system, lack of interesting work, lack of job
security, not enough of promotion, inadequate training and development opportunities and an
unhealthy working environment (Hewitts Associates (2006); Abassi and Hollman (2000);
Sherman et al. (2006)). CHECK REFERENCE
Herzberg (1959 cited in Bassett-Jones and Lloyd 2005) two factor theory argued that
employees are motivated mostly by the internal values rather than the external values to the
work. In other words, Herzberg (1959) stated that motivation is internally generated and is
propelled by variables that are intrinsic to the work and he called that motivators. Conversely,
certain aspects which cause dissatisfying experiences to employees are mostly resulting from
non-job related variables (extrinsic).
Other researchers have also discovered that the decisions of employees to leave a firm are
influenced by factors such as salary, work life balance, or career opportunities (Mayer 2006;
Abraham 2007; Holland et al. 2007).

Moreover, in a study on employee retention, Sunil Ramlall (2003) suggested that when
there is lack of challenge and opportunity, career advancement opportunities, recognition,
inadequate emphasis on teamwork, no flexible work schedule, these become the most common
reasons for employees quitting an organization. Consequently, Hannay et al. (2000) stated that
the extent to which the employer has met employee expectations and the witnessed future
opportunities provided by the employer are seen as the most important variables for employee
retention.
At a finishing point, we could deal with these challenges by introducing retention
strategies (Armstrong 2002 cited in Millmore et al. 2007; Mayer 2006; Holland et
al. 2007; Prichard 2007) that would aid the organization in keeping the
employees that are in sought after fields.

Retention Strategies
There are studies which showed that when right employee retention strategies such as job
satisfaction arising from appropriate rewards (Gomez-Mejia and Balkin 1992; Heneman and
Judge 2003), pay according performance (Griffeth et al. 2000), training and career development
(Okoh 1998) and social community at work are used, this enhances social relations such as
encouraging employee marriages and siblings employment (Ayagi 2001), job security (Chartered
Institute of Personnel and Development (CIPD) 2006), increased level of wage rate and company
image (Taplin et al. 2003) and decision making and sharing of information (Jike 2003; Riordan et
al. 2005) serve as a catalyst in retaining employees for organizational performance.
Holland et al. (2007, p. 248) suggested that companies should look for
workers possessing scarce specialized skills and must try to retain them. Also, they added
that in order to be able to retain those having new knowledge and skills for long term, the
organizations also must use effective retention strategies. Similarly, effective retention strategies
are seen as a motivator to workers which improve their performance at work and this may result
in attracting more qualified people to work for the institution (Naris and Ukpere 2009, p. 883).
Furthermore, DeMarco (2007) proposed three retention strategies to effectively deal with
the Generation X work group that is those born between 1964 and 1977. According to him, the
first one is that communication is vital which includes feedback, group communication,
employee surveys and corporate communication. Secondly, he added that top management
should review issues such as supervision whereby the manager deals with building of team,

performance management and the development of individuals and thirdly he concluded that
attention should be given to the matter of generational interest. The researcher even stated that
employees want to know that they are valued and important.

Corporate culture and communication :According to Becker and Huselid (1999), culture creates competitiveness since it changes
employee behavior by making them act consistently with the firms desired corporate culture,
thereby influencing employee retention. Other researchers who investigated the relationship
between organizational culture and employee turnover and retention uncovered similar findings
(Chew et al., 2005; Cho et al., 2006; Milman and Ricci, 2004). For example, a study by Milman
and Ricci (2004) revealed that among the most powerful indicators to predict hourly employee
retention in the lodging industry were positive experiences with the companys policies and with
the companys humane approach to employees.
According to Arms (2010), Communication is seen as a key. Even if you speak with your
employees regularly, are you telling them what they need to know? Share your mission, vision,
and goals with them. If theyre expected to help you attain something, they should at least have
an idea of what it is theyre working toward. Also, many employers dont include staff in
discussions of company performance, assuming that they dont care or need to know. But they do
care, and keeping them informed gives them a feeling of inclusion and unity that will foster
accountability.
Moreover, Sinkin and Putney (2009) states that no simple solutions can eliminates these
retention fears, but one of the most effective actions is clear and frequent two-way
communication in which you share your firms vision and ask for (and to listen) their opinions.
These actions create an environment in which staff feels someone is listening, they have input
and their opinion counts.

Work environment, Work Life Balance and Job Enlargement:Professional practice environments, successful in attracting and retaining staff,
intentionally utilize events and activities that promote employees social attachment to the
workplace community. (Halbesleben and Wheeler, 2008; Holtom and ONeill, 2004). Similairly,
some companies that actively promote a positive work environment, and who also value
employee contributions while achieving a true work-life balance have been found to be more
successful at communicating the idea that their employees are one of their most valuable

resources (Hom and Kinicki, 2001; McGrath, 2006; Mitchell, Holtom, Lee, Sablynski, Erez,
2001). Furthermore, work/life balance factors are also cited as retention factors by DeMarco
(2007) and Gillis (2007).
Also, an institution should help employees maintain a balance between personal and
work life (Dibble, 1999 cited in Netswera, Rankhumise and Mavundla, 2005). He added that in
some institutions, practices such as making childcare facilities available on the premises and
flexi time can make the difference between keeping and losing an employee. Work/life policies
include flexible work scheduling (e.g. part-time work, job-sharing, variable starting and quitting
times), family leave policies allowing periods away from work for employees to take care of
family matters, and childcare assistance (e.g. referral service, on-site or offsite care centres)
(Burke & Cooper, 2002). Similarly, Hytter (2007) stated that some firms have ameliorated in
retaining employees by giving them more flexible working options and also by offering them
other family-friendly policies.

Motivation- (Praise and Trust)

According to Glen (2006), it is possible to retain key skills within highly cash-strapped,
extremely lean organizations; by focusing, as a necessity, on broader predictors of retention and
motivation. He even added that It is quite conceivable that, for example, certain employee
groupings may be primarily motivated by their personal stake in the business, career leverage,
rewards and recognition, whilst other groupings may be motivated by a combination of role
challenge, organization values, work environment, and so on.
. Anon (2010, P.13-15), says that While some employees recognize their own limitations and
accept that they are fortunate to have a job of any description, talented employees can usually
shop around for a suitable employer even in a global economic downturn. Competition among
organizations is not just about customers, it is about hiring the best people. They need to be
tempted and trusted, and hiring them is just the beginning. Their talent has to be nurtured and
managed and moulded into a form which is an exact fit with the organizations strategic aims.
Anon (2010, P.13-15) also proposed that Hiring and hanging onto talented staff in
economically-trying times might be tough, but it can be invigorating. It is not all about providing
perks such as healthcare or furloughs though. Recognizing good work is as important as it ever
was. Equally important is telling people on a regular basis that their work is good. We all like
praise. It is often what motivates us, gives us a sense of belonging, of being part of the team.

Motivation is what drives people to work. The researcher suggests that in order for institutions to
retain their staff members, they should first find out what motivates workers to work.

Recognition, Rewards and Compensation

Many studies have shown what implications employee compensation, rewards and recognition
have on turnover and retention (Becker and Huselid 1999, Cho et al. 2006, Milman 2003,
Milman and Ricci 2004, Walsh and Taylor 2007). Furthermore, numerous research studies found
that employee commitment can be promoted by highly competitive wage systems and thus
resulting in the attraction and retention of a superior labour force (Becker and Huselid 1999,
Guthrie 2001). Also, most of the managers believe that the prime retention factor is money and
many employees mentioned the reason of better pay or higher compensation for leaving one
employer for another (Mathis and Jackson 2003). Compensation is said to play a fundamental
role in attracting, retaining and motivating workers (Swanepoel et al. 2003).
According to Arms (2010), although employee recognition is largely important, it is said to be
quite simple to deal with. He added that it is just a matter of an everyday interaction by saying a
simple thank you to the staff that has gone out of their way. Also, he stated that an employer
must often acknowledge the stress and effort of employees working on an important and timely
project. The author further added that it is essential for the boss to give them credit they deserve
for work that they have done for the firm and instead not to give them the impression that the
employer is taking credit for their efforts. He finally concluded by proposing to employers that
they can set up a more formal program for employee recognition having both the financial
rewards such as gift certificates and intangible rewards that is having a personal parking place,
obtaining summer flexible time and dress code perks.
However, several other research studies have showed that compensation in the form of base or
variable pay may not be sufficient to attract or retain employees. Milman (2003) and Milman and
Ricci (2004) concluded that the most significant retention predictors included intrinsic
fulfillment and working conditions rather than monetary rewards. Similarly, the study by Walsh
and Taylor (2007) revealed that although compensation and work-life balance are important, it is
the absence of opportunity for professional growth and development that affects management
retention and turnover (Walsh and Taylor, 2007).
Researchers have found that rewards as provided by organizations have relationship with job
satisfaction and hence employee retention (Taplin et al., 2003). Rewards help to motivate and
retain competent staff for performance (Okoh, 1998; Bamigboye and Aderibigbe, 2004; Jerez-

Gomez et al., 2005). Heneman and Judge (2003) argue that for an organization to retain its
employees for performance, it must match its rewards to employees preference. The match
between rewards desired by employees and offered by the organization is what leads
to job satisfaction. And job satisfaction in turns guarantees employee
retention.
Others like Kinnear and Sutherland (2001: 17) assert that managers should not be deceived that
money no longer matters in retaining employees any longer. They further reiterate the
importance of money in attracting, motivating and retaining quality employees in the
organization and further concluded that skilled employees are achievement oriented and want
their achievements rewarded with money. However, Amar (2004: 96) argues that money has not
remained as good a motivator as it was in the past. The efficiency of money as a motivator of
skilled employees is quite low.