Employee Retention Impact

The long-term health and success of any organization depends upon the retention of key employees. To a great extent customer satisfaction, organizational performance in terms of increased sales, satisfied colleagues and reporting staff, effective succession planning (Das, B.L. and Baruah, M., 2013). Employees that are happy and content with their occupations are more committed to their work and continually strive to improve the satisfaction of their organization's customers (Denton 2000). Employee retention is a priority for the Human Resource Department. It develops policies for employee development so that employees are content with their jobs and stay with the organization for a longer period of time (Acton et al., 2003).

 

Factors affecting Employee Retention of a Consumer Durable organization

Recognized that employee retention is not influenced by a single factor  (Stein 2000). However, a variety of factors have a role in keeping personnel in a firm. Compensation and rewards, job stability, training and development, supervisor support culture, work environment, and organizational fairness are all elements that management must consider (Das, B.L. and Baruah, M., 2013).

Key influencing factors & strategies

Compensation - Salary and benefit policies aren't being used strategically enough within organizations to boost morale, reduce turnover, and meet goals (Das, B.L. and Baruah, M., 2013). When it comes to the consumer durable organization where I work, we employ a variety of techniques. Overtime, meal allowances for non-management employees and management incentive, fuel allowances, meal allowances, and base allowances are only a few examples. This type of strategy will aid in the proper retention of employees in any organization.

 

Reward and Recognition - The phrase "reward" refers to something that an organization gives to its employees in exchange for their labor and performance, and something that the employees desire (Das, B.L. and Baruah, M., 2013). Loyalty is enhanced when supervisors, team members, employees, and customers recognize you (Walker.,2001).for example, Work at the wennapuwa branch , a two-year-old branch customer assistant who worked very well and was very friendly with the management and was recognized and further awarded a scholarship as a reward. Thereby continuing his educational activities. Through this he was recognized and rewarded. This ensured that he remained with the company and that he could look forward to another good service in the future

 

Participation to decision-making - Modern organizations keep their personnel informed about all key company matters and involve them in decision-making at all levels, allowing them to fully utilize their talents (Hewitt .,2002). Employee participation in decision-making creates a sense of belonging among employees, which helps in the creation of a pleasant working environment and contributes to the development of a positive employer-employee relationship (Noah., 2008 ). The introduction of a new system in the company where I currently work is an example of this, working on the ideas of all service section representatives from the beginning to the present, which has a very high level of employee satisfaction and is a reason to build a very good relationship with management.

Training and Development - Investment in employee training and career development is one of the most critical elements in employee retention. The organization always invests in training and development for those employees who they expect to return and provide a return on their investment (Tomlinson 2002). A large number of branch employees work in a consumer durable organization and it is very difficult to train them but as a tactic the organization works to gather the new knowledge they need through a dedicated LMS system (Product Knowledge, Customer serving , Inventory Management) for all branch employees. The company uses this tactic to motivate employees and retain more employees to the company.

Job Security - some of the great employment features like lifetime employment and seniority system Job security lead to high commitment, job satisfaction as well as retention of employees in an organization and Job insecurity lead to employee turnover (Das, B.L. and Baruah, M., 2013). This is one of the best examples in our company of service award, senior employee evaluations and family evaluations of senior employees. It builds a very reliable reputation among senior employees as well as junior employees and has a strong impact on employee retention


List of References 

Acton, T., Golden, W.(2003). “Traning the knowledge worker: A descriptive study of training practices in Irish software companies”. Journal. Eur.Ind.

Das, B.L. and Baruah, M., 2013. Employee retention: A review of literature. Journal of business and management, 14(2), pp.8-16

Denton, J. (2000), "Using Web-based projects in a systems design and development course". Journal of Computer Information Systems,

Hewitt, P. (2002). High Performance Workplaces: The Role of Employee Involvement in a Modern Economy, www.berr.gov.uk/files/file26555.pdf

Noah, Y. (2008) A Study of Worker Participation in Management Decision Making Within Selected Establishments in Lagos, Nigeria. Journal of Social Science, 17 (1): 31-39

 Stein, N. (2000). Winning the war to keep top talent: yes you can make your workplace invincible. In fortune. 141(11):132-38

Tomlinson, A. (2002). High Technology workers want Respect, Survey Canadian Human Resources Reporter, vol. 15

 Walker, J.W. (2001). “Perspectives” Human resource planning


Comments

  1. Khalid HumayuniSeptember 7, 2021 at 9:23 PM

    Yes. Organizations must utilize those practices which are in favor of both employees and employers leading them towards higher performance levels. It is important to recruit strategy driven and shrewd employees because it creates sense of alignment between employee and organizational values and goals (Vignesh, Babu 2014).

    ReplyDelete
    Replies
    1. K G B SampathSeptember 9, 2021 at 4:54 AM

      es. Furthermore, there is a need to establish a positive relationship between the employer and the employee. Employees who are unhappy with their existing condition will go for job elsewhere if the global economy does not improve (Gupta-Sunderji, M., 2004). If an employee stays, this is referred to as retention; if an employee leaves, this is referred to as turnover (Walker.,2001). In fact, the employee is the most precious asset in every organization. Employers must be concerned about their employees for a variety of reasons, including motivation. According to Holton, staff motivation will be positively related to employee engagement (2006).

      Delete
  2. Samuddhi Menaka AlawattaSeptember 9, 2021 at 5:29 AM

    Diversity in the workplace is a strategy that increases employee retention. Curry(2004),
    state that diversity is more than just black and white. Diversity crosses gender,
    racial and age limits.

    ReplyDelete
    Replies
    1. K G B SampathSeptember 9, 2021 at 9:25 AM

      There is no single retention strategy or plan that will satisfy every employee in a company. We have diverse demands and expectations from the organization since we have distinct personalities. Many researchers, including Arnold and Feldman (1982), discovered and concluded in their study that age, work satisfaction, tenure, job image, met expectations, and organizational commitment are all connected to turnover intentions and actual turnover. People who are content with their occupations tend to stay in them longer, according to research findings by Jewell and Segall (1990).

      Delete
  3. Nadeeka Indunil PathirageSeptember 11, 2021 at 6:14 AM

    Yes Agree Sampath, Employee retention connotes the means, plan or set of decision-making behavior put in place by organizations to retain their competent workforce for performance (Gberevbie, 2008). There have been many human resource strategies provided to retain employees for the advantage of the organizations and these strategies are aimed at avoiding employee turnover (Jakab, 2010).

    ReplyDelete

Post a Comment

Popular posts from this blog

Image
  Employee Retention & Employee Turnover   Employees who are dissatisfied with their current situation will look for work elsewhere when the global economies improve (Gupta-Sunderji, M., 2004). If employee stay – Retention, If employee leave – Turnover (Walker.,2001).  Furthermore, Retention is not only important just to reduce the turnover costs or the cost incurred by a company (Sandhya, K. and Kumar, D.P., 2011).  In today's highly competitive business world, retaining competent workers are the most important differentiator for most businesses (Samuel, M.O. and Chipunza, C., 2009).   Employee retention and turnover are influenced by employee motivators and demotivators (Samuel, M.O. and Chipunza, C., 2009). Employee retention and turnover in organizations are influenced by extrinsic and extrinsic motivational factors (Thirupathy, A. and Dhayalan, C., 2016). Extrinsic factors involve company policy and administration, supervision, interpersonal rel...
Read more
Image
Employee motivation to Reduce Employee Turnover of a Consumer Durable Organization The overall success of an institution in achieving its strategic objectives relies heavily on the performance level of employees. Employee performance is a function of ability and motivation (Ek, K. and Mukuru, E., 2013). Motivation is the most important technique for reducing employee turnover in firms and it is the backbone of human resource management (Vnoučková, L. and Klupakova, H., 2013). Lack of motivation leads to an increase in incomplete jobs, a reluctance to seek out more efficient work, and employee turnover (Šuler, O.,2008). When employees are unhappy with their existing circumstances will look for a job elsewhere (Gupta-Sunderji, M., 2004).   Employee Motivation Employee motivation refers to an employee's commitment to his or her job, how involved he or she feels in the organization success, and how he or she feels in their daily empowered tasks (Vnoučková, L. and Klupakova, H., 2013). ...
Read more