The Importance of Developing Strategies for Employee Retention


The focus of employee retention strategies of a consumer durable organization

Employees resigning from their jobs will have an impact on the organization. It doesn't just apply to consumer durables companies. That’s why Employers of organizations recognize this and develop strategies to address these concerns (Cloutier, .O et al., 2015).

Employee retention is usually considered as part of a company's annual assessment and budget discussion. The expansion and concentration on employing Human Resource Specialists and growing Human Resource Organizations has demonstrated this (SHRM 2014). Employee retention strategies should be built on the foundation of the organization's vision, mission, values, and policies (Cloutier, .O et al., 2015). When it comes to the consumer durable organization where I work, It Can be seen through the Company Mission, vision, and values statement

 

Figure 01. Vision and Mission Singer Sri Lanaka PLC




Source: Singer Annual Report 2019/20

The organizations who attain competitive and winning results are accomplished by “Strategic Intent” This means that all employees are committed to the organization’s vision, mission and objectives for its operations (Cloutier, .O et al., 2015).Furthermore Employee retention strategies will help to decrease following factors According to (Hebenstreit., 2008).

 

  • Ø  Filling vacant roles cost,
  • Ø  High staff turnover raises the cost of resources,
  • Ø  Recruiting and time.
  • Ø  The cost of recruiting a new employee to a company ranges from half to 200% of the previous employee's compensation

 

when considering the operations of a consumer durable organization branches Where I work, For example, in the case of a branch operation, the cost caused by the increase in the Hire purchase Arrears status (Given for Customers) of the branch during the time it takes to recruit another recovery officer to replace the relevant recovery officer in the event of a resignation, the cost of training, can be achieved by following retention strategies to avoid cost overruns.

Employee turnover is expensive to the organizations bottom-line (Lucas., 2013). That’s employers don’t understand the expense of high employee turnover. Recruiting new staff is costly due to advertising and administrative expenses, time and resources for onboarding and training as well as loss of productivity (Baldoni., 2013). That’s why need to more focus on employee retention. In view of the manager of the consumer durable organization where I work, can be classified the importance of employee retention as follows (Base on discussion had with HR Assistant manager).

 

  • Ø  Employee Loyalty – The employee will do the best when needed to the organization
  • Ø  Increase motivation - Motivate employees to put in their best effort and work longer hours.
  • Ø  Workplace Conflicts are less likely - This allows employers to make unbiased decisions involving their workforce and mitigate any conflict within the organization.
  • Ø  Enhances Trust and Confidence  among the employee and employer


 

List of Reference

Baldoni, J. (2013). Employee engagement does more than boost productivity. Retrieved from Harvard Business Review: https://hbr.org/2013/07/employee-engagement-does-more/

Cloutier, O., Felusiak, L., Hill, C. and Pemberton-Jones, E.J., 2015. The importance of developing strategies for employee retention. Journal of Leadership, Accountability & Ethics, 12(2).

Hebenstreit, R. P. (2008). A call to apply the principles of the enneagram in organizations to attract, retain and motivate employees. Enneagram Journal, 4-21

Lucas, S. (2013). How much employee turnover really cost you. Retrieved from Inc.: https://www.go2hr.ca/articles/employee-turnover-how-much-it-costing-you

SHRM. (2014). SHRM - Mission and History. Retrieved from Society for Human Resource Management: http://www.shrm.org/about/history/pages/default.aspx.

Singer Sri Lanka Annual report. 2019/20. https://www.singersl.com/

Comments

  1. Thushari SenevirathneAugust 30, 2021 at 9:08 AM

    Yes, hence the organizational stability, growth and revenue is mainly depending on successful employee retention of the organization, organization can achieve that by introducing four strategies (Jean, 2015).
    1. Effective communication
    2. Hire a diverse workforce
    3. Skill people engagement
    4. Training and development to the employees
    Further, Premnath(2020), shows that employee retention is not only beneficial for employer but for the employees and HR has to develop convenient strategies to direct people to retain.

    ReplyDelete
    Replies
    1. K G B SampathSeptember 1, 2021 at 11:00 AM

      Yes, Employee retention not only beneficial for employer, there is some of beneficial to employee too. any organization need to more focus on retention strategies. Retention is not only important just to reduce the turnover costs or the cost incurred by a company to recruit and train. But the need of retaining employees is more important to retain talented employees from getting poached (Sandhya, K. and Kumar, D.P., 2011). As per view of Elton Mayo (2003) ,strategies are classified into main three level
      01. Bottom Level
      02. Middle Level
      03. High Level

      Delete
  2. K G B SampathSeptember 1, 2021 at 11:29 AM

    Nimna, in fact, Retention is important for more than just reducing turnover costs or the cost of recruiting and training new employees (Sandhya, K. and Kumar, D.P., 2011). Many elements must be addressed before developing staff retention methods, as you mentioned. As an example  When an employee quits a company, he brings valuable information about the company, its customers, current projects, and the company's competitors' past history with him to his new employer. As just a result, greater thought must be given to developing employee retention tactics.

    ReplyDelete
  3. Amila WijayanthaSeptember 1, 2021 at 1:46 PM

    I agreed with a blog post. Nevertheless, management can mitigate employee attrition by improving wages, recruitment policies, training programmes, selections. Retention of Savvy satisfy employees is the success of any organization (Kumar and Mathimaran, 2017).

    ReplyDelete
    Replies
    1. K G B SampathSeptember 2, 2021 at 8:07 PM

      In fact, need to Focus on staff motivators and demotivators who are influenced by employee retention and turnover while reducing employee attrition (Samuel, M.O. and Chipunza, C., 2009). Furthermore, both intrinsic and extrinsic motivational factors influence employee retention and turnover in firms (Thirupathy, A. and Dhayalan, C., 2016).

      Delete
  4. Chandana PunchihewaSeptember 3, 2021 at 1:41 PM

    yes. explored additional literature that suggest measures to increase employee retention and explicates the employee selection process. First, an organizations should establish a proficient communication process. Leadership must effectively understand and operate within the five levels of communication: intrapersonal, interpersonal, group, organizational and intercultural in order to maintain a healthy work culture for its employees, which is illustrated in table 1 (Bell & Martin, 2014)

    ReplyDelete
    Replies
    1. K G B SampathSeptember 7, 2021 at 9:54 AM

      Yes. Employees that quit from their jobs will, in effect, have an impact on the company. As a result, employers recognize this and devise solutions to solve these concerns (Cloutier, .O et al., 2015). Moreover, according to Chaudhuri (2010), the primary premise of selection is "the right person for the right position," which can only be achieved through scientific recruiting and selection. This is because an organization's ability is mostly decided by its employees' capabilities.

      Delete
  5. Sumeera NawarathneSeptember 4, 2021 at 3:53 AM

    Thank you for the nice explanation on the importance of developing strategies for employee retention. Since you have taken Singer Sri Lanka PLC as an example, I found some interesting facts from their latest annual report. According to Singer Sri Lanka Annual Report (2021), the company implements some strategies to overcome the employee turnover through recognizing the talents of the employees, offering continuous learning, innovation and team building and focusing on employee’s progression and career development.

    ReplyDelete
    Replies
    1. K G B SampathSeptember 7, 2021 at 10:25 AM

      Thank you for taking the time to leave such an insightful comment. Sri Lanka Plc used reward and reorganization strategies, The term "reward" refers to something that a company gives its employees in exchange for their hard work and performance, and something that the employees desire (Das, B.L. and Baruah, M., 2013). When supervisors, team members, employees, and customers recognize you, loyalty increases (Walker.,2001). for example, Work at the Wennapuwa branch, a two-year old branch customer assistant who worked very well and was really sociable with management was recognized and given a scholarship as a reward. As a result, he can continue his educational pursuits. He was recognized and rewarded as a result of this.As a result, he is able to stay with the company and look forward to more excellent service in the future.

      Delete
  6. Khalid HumayuniSeptember 7, 2021 at 9:21 PM

    Agreed. Given the importance of this issue, employee job embeddedness theory warranted more attention (Crossley et al., 2007). Within that context, several theoretical schools of thought have been explored in examining the needs and well-being of individuals from broader constructs to include: (a) employee turnover and employee job embeddedness; (b) recruitment, retention, and generational differences; (c) human relations; and (d) leadership styles (Holmes et al., 2013).

    ReplyDelete
    Replies
    1. K G B SampathSeptember 8, 2021 at 7:47 AM

      Thank you for comment; yet, most employers overlook elements like work-life balance, management and leadership teams, top performance recognition, health, and well-being. This type of element causes employee unhappiness and has a negative impact on the company's overall operations. Employee Well-Being and Job Satisfaction All of these factors have a role in deciding whether or not to stay (Kotze et al., 2005). Employees that leave their positions will have an influence on the company. As a result, employers realize this and devise solutions to solve these concerns (Cloutier, .O et al., 2015).

      Delete
  7. Udaya PereraSeptember 9, 2021 at 3:49 AM

    Organization are taking all possible measures to maintain the attaction of the employees, and losing the prime performers will eventually drown the productivity and sustainability of the business entities (Priya, 2020).

    ReplyDelete
    Replies
    1. K G B SampathSeptember 9, 2021 at 9:15 AM

      Yes, in today's world, employers place a greater emphasis on employee retention. When the global economy improves, employees who are dissatisfied with their existing circumstances will look for job elsewhere (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). Furthermore, retention is vital for more than just lowering a company's turnover expenses or costs (Sandhya, K. and Kumar, D.P., 2011).

      Delete

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