Professional Documents
Culture Documents
INTERNAL MOBILITY
Internal mobility is defined as the extent to which an organization utilizes a
policy of staffing from within the organization. Although internal mobility policies
may reduce turnover generally, actual promotion rates prove to have stronger effect
on reducing turnover than perceived internal mobility.
To enhance internal mobility, HR professionals should not solely rely on advertising
of internal job vacancies. Talent management systems can match current
employees to open roles across the organization based on skills, aspirations and
performance, thus enabling the employer to proactively offer new roles to
appropriate employees. However, given the substantial
cost and scale, internal mobility should be viewed as long-term solutions rather than
short-term remedies.
HIGH-COMMITMENT HR SYSTEM
High-commitment HR system is defined as HR systems designed to shape
desired employee behaviors and attitudes by forming psychological links between
organizational and employee goals. Researches have shown that employees
commitment to the organization derives from their perceptions of the employers
commitment to and support of them. Implementing high-commitment HR system
requires more than a single practice. An organization must take the steps necessary
to develop the perception of involvement among low and high level employees.
Also,
An organization should also build a more inclusive and less bureaucratic culture,
since the process is likely to be lengthy and even costly until the appropriate culture
is achieved.
STAFFING SELECTIVITY
Staffing selectivity is defined as the extent to which the organization hires a
small proportion of applicants. When designing staffing strategy, HR professionals
should be mindful to the fact that the sophistication of selection system themselves
shared only weak relationships with collective turnover. Faced with turnover
problems and limited resources, managers should increase the quality and size of
applicant pools rather than improve their selection instruments.
RETENTION FACTORS FOR INDIVIDUAL TURNOVER
Gender: Overall, retention is lower for women than for men 6. This arises for a
variety of reasons, such as: low association as in-group members in male-majority
work settings, domestic responsibilities/ obligations that are poorly accommodated
for by the firm, lower pay, sparser developmental opportunities, more career
obstacles6.
Job Level: It is important to analyze retention factors for unique job levels because
each will value different features of the company and will hold a different
psychological contract with the organization. Research demonstrates that hourly
workers are more likely to cite transactional retention factors whereas workers at
higher job levels are more likely to cite relational retention factors .
Job Performance: It is important to understand how companies can best retain high
performers because High performers are most likely to possess the knowledge,
skills and experience necessary to contribute to the overall success of the
organization. High performers are more likely to stay due to organization prestige
and advancement opportunities whereas low performers place higher value on
extrinsic rewards.
EMPLOYEE RETENTION
Employee retention issues are emerging as the most critical workforce management challenges of
the immediate future. Researches have shown that in the future, successful organizations will be those
which adapt their organizational behavior to the realities of the current work environment where longevity
and success depend upon innovation, creativity and flexibility. In fact, the dynamics of the work
environment will have to reflect a diverse population comprised of individuals whose motivations, beliefs
and value structures differ vastly from the past and from one another. This phenomenon is especially true
in light of current economic uncertainty and following corporate downsizings when the impact of losing
critical employees increases exponentially (Caplan and Teese, 1997).
Critical analysis of workforce trends points to an impending shortage of highly-skilled employees
who possess the requisite knowledge and ability to perform at high levels, meaning that organizations
failing to retain high performers will be left with an understaffed, less qualified workforce that ultimately
hinders their ability to remain competitive (Rappaport, Bancroft, & Okum, 2003) with managers facing a
difficult challenge of motivating and retaining the employees in an environment of increased uncertainties
(Mitchell, 2002).
Retention rates generally falls as employees become distracted, confused and preoccupied with
potential outcomes immediately following an organizational transition (Bridges, 1991). However, despite
the vast literature on employee turnover, which is aimed at identifying factors that cause employees to
quit (Griffeth, Hom, & Gaertner, 2000), much less is known about the factors that compel employees to
stay. For example, Maertz & Campion (1998) noted relatively less turnover research has focused
specifically on how an employee decides to remain with an organization and what determines this
attachmentretention processes should be studied along with quitting processes.
Companies today are forced to function in a world full of change and complexity, and it is more
important than ever to have the right employees in order to survive the surrounding competition.
It is a fact that a too high turnover rate affects companies in a negative way and retention
strategies should therefore be high on the agenda. When looking at this problem area we found
that there may be actions and tools that companies could use to come to terms with this problem.
Research tell us that leadership, remuneration and elements like participation, feedback,
RETENTION
Employee retention is a systematic effort by employers to create and foster an environment that
encourages current employees to remain employed, by having policies and practices in place that address their
diverse needs.
costs and productivity loss), industry experts often quote 25% of the average employee salary as a conservative
estimate.
LOSS
OF
knowledge about the company, customers, current projects and past history (sometimes to competitors). Often much
time and money has been spent on the employee in expectation of a future return. When the employee leaves, the
investment is not realized.
INTERRUPTION
OF
part because of the people. Relationships are developed that encourage continued sponsorship of the business. When
an employee leaves, the relationships that employee built for the company are severed, which could lead to potential
customer loss.
TURNOVER
throughout the organization. Co-workers are often required to pick up the slack. The unspoken negativity often
intensifies for the remaining staff.
REGAINING
EFFICIENCY:
training a new employee, this leads to the loss of the company directly which may at times goes unnoticed, and even
after this you cannot assure us of the same efficiency from the new employee would be left with no good
employees. A good employer should know how to attract and retain its employees.
GOODWILL OF THE COMPANY: The goodwill of a company is maintained when the attrition rates
are low. Higher retention rates motivate potential employees to join the organization.
OF APPRECIATION:
If the work is not appreciated by the supervisor, the employee feels de-motivated and
that is required for an individual to stay in the job. Non-supportive co-workers, seniors and management can make
office environment unfriendly and difficult to work in.
STRESS
JOB OFFER:
An attractive job offer which an employee thinks is good for him with respect to job
responsibility, compensation, growth and learning etc. can lead an employee to leave the organization.
COMPENSATION:
Compensation constitutes the largest part of the employee retention process. The employees
always have high expectations regarding their compensation packages. Compensation packages vary from industry
to industry. So an attractive compensation package plays a critical role in retaining the employees. Individual has
time to time increase in the salaries and wages and this increase should be based on the employees performance and
his contribution to the organization.
Bonus: Bonuses are usually given to the employees at the end of the year or on a festival.
Economic Benefits: It includes paid holidays, leave travel concession, etc.
Long-term incentives: Long-term incentives include stock options or stock grants, these incentives help
retain employees in the organizations start up stage.
Health insurance: Health insurance is a great benefit to the employees. It saves employees money as well
as gives them a peace of mind.
After retirement: It includes payments that an Employee gets after he retires like EPF etc.
Miscellaneous compensation: It may include employee assistance programs discounts on company
products, use of a company cars, etc.
WORK ENVIRONMENT:
It includes efficient managers, supportive co-workers, challenging work, involvement in decisionmaking, clarity of work and responsibilities, and recognition. Lack or absence of such environment, pushes
employees to look for new opportunities. The environment should be such that the employee feels connected to the
organization in every respect.
In-house processes and procedures related skills or customer satisfaction related skill
Work profile
IMPORTANCE OF RELATIONSHIP:
Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the
organization. The management is sometimes not able to provide an employee a supportive work culture and
environment in terms of personal or professional relationships. There are times when an employee starts feeling
bitterness towards the management or peers. This decreases employees interest and he becomes demotivated. It
leads to less satisfaction and eventually attrition. A supportive work culture helps grow employee professionally and
boosts employee satisfaction.
To enhance good professional relationships at work, the management should keep the following points in mind.
Individual development
Induce loyalty
SUPPORT:
Lack of support from management can sometimes serve as a reason for employee retention. Supervisor should
support his subordinates in a way so that each one of them is a success. Management can support employees by
providing them recognition and appreciation. Employers can also provide valuable feedback to employees and make
them feel valued to the organization. The feedback from supervisor helps the employee to feel more responsible,
confident and empowered. Top management can also support its employees in their personal crisis by providing
personal loans during emergencies, childcare services, employee assistance programs, counselling services, etc.,
Employers can also support their employees by creating an environment of trust and inculcating the organizational
values into employees. Thus employers can support their employees in a number of ways as follows:
By providing feedback
By counselling them