Employee RetentionWhat is Employee Retention ?

Employee retention refers to the various policies and practices which let the employees stick to an organization for a longer period of time. Every organization invests time and money to groom a new joinee, make him a corporate ready material and bring him at par with the existing employees. The organization is completely at loss when the employees leave their job once they are fully trained. Employee retention takes into account the various measures taken so that an individual stays in an organization for the maximum period of time.

Why do Employees Leave ?

Research says that most of the employees leave an organization out of frustration and constant friction with their superiors or other team members. In some cases low salary, lack of growth prospects and motivation compel an employee to look for a change. The management must try its level best to retain those employees who are really important for the system and are known to be effective contributors.

It is the responsibility of the line managers as well as the management to ensure that the employees are satisfied with their roles and responsibilities and the job is offering them a new challenge and learning every day.

Let us understand the concept of employee retention with the help of an example:

Misha was a talented employee who delivered her best and completed all her work within the desired time frame. Her work lacked errors and was always found to be innovative and thought provoking. She never interfered in anybody else’s work and stayed away from unnecessary gossips and rumours. She avoided loitering around at the workplace, was serious about her work and no doubts her performance was always appreciable. Greg, her immediate boss never really liked Misha and considered her as his biggest threat at the workplace. He left no stone unturned to insult and demotivate Misha. Soon, Misha got fed up with Greg and decided to move on.

Situation 1 - The HR did not make any efforts to retain Misha and accepted her resignation.

Situation 2 - The HR immediately intervened and discussed the several issues which prompted Misha to think for a change. They tried their level best to convince Misha and even appointed a new boss to make the things better for her.

Situation 1 would most likely leave the organization in the lurch. It is not easy to find an employee who gels well with the system and understands the work. Hiring an employee, training him and making him fit to work in an organization incur huge costs and thus sincere efforts must be made to retain the employee. Every problem has a solution and the management must probe into the exact reasons of an employee’s displeasure. Employees sticking to an organization for a

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longer time tend to know the organization better and develop a feeling of attachment towards it. The employees who stay for a longer duration are familiar with the company policies, guidelines as well as rules and regulations and thus can contribute more effectively than individuals who come and go.

Employee retention techniques go a long way in motivating the employees for them to enjoy their work and avoid changing jobs frequently.

Need & Importance of Employee RetentionEmployee Retention refers to the techniques employed by the management to help the employees stay with the organization for a longer period of time. Employee retention strategies go a long way in motivating the employees so that they stick to the organization for the maximum time and contribute effectively. Sincere efforts must be taken to ensure growth and learning for the employees in their current assignments and for them to enjoy their work.

Employee retention has become a major concern for corporates in the current scenario. Individuals once being trained have a tendency to move to other organizations for better prospects. Lucrative salary, comfortable timings, better ambience, growth prospects are some of the factors which prompt an employee to look for a change. Whenever a talented employee expresses his willingness to move on, it is the responsibility of the management and the human resource team to intervene immediately and find out the exact reasons leading to the decision.

Need & Importance of Employee Retention

Let us understand why retaining a valuable employee is essential for an organization.

Hiring is not an easy process: The HR Professional shortlists few individuals from a large pool of talent, conducts preliminary interviews and eventually forwards it to the respective line managers who further grill them to judge whether they are fit for the organization or not. Recruiting the right candidate is a time consuming process.

An organization invests time and money in grooming an individual and make him ready to work and understand the corporate culture: A new joinee is completely raw and the management really has to work hard to train him for his overall development. It is a complete wastage of time and money when an individual leaves an organization all of a sudden. The HR has to start the recruitment process all over again for the same vacancy; a mere duplication of work. Finding a right employee for an organization is a tedious job and all efforts simply go waste when the employee leaves.

When an individual resigns from his present organization, it is more likely that he would join the competitors: In such cases, employees tend to take all the strategies, policies from the current organization to the new one. Individuals take all the important data, information and statistics to their new organization and in some cases even leak the secrets of the previous organization. To avoid such cases, it is essential that the new joinee is made to sign a document which stops him from passing on any information even if he leaves the organization. Strict policy

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should be made which prevents the employees to join the competitors. This is an effective way to retain the employees.

The employees working for a longer period of time are more familiar with the company’s policies, guidelines and thus they adjust better: They perform better than individuals who change jobs frequently. Employees who spend a considerable time in an organization know the organization in and out and thus are in a position to contribute effectively.

Every individual needs time to adjust with others: One needs time to know his team members well, be friendly with them and eventually trust them. Organizations are always benefited when the employees are compatible with each other and discuss things among themselves to come out with something beneficial for all. When a new individual replaces an existing employee, adjustment problems crop up. Individuals find it really difficult to establish a comfort level with the other person. After striking a rapport with an existing employee, it is a challenge for the employees to adjust with someone new and most importantly trust him. It is a human tendency to compare a new joinee with the previous employees and always find faults in him.

It has been observed that individuals sticking to an organization for a longer span are more loyal towards the management and the organization: They enjoy all kinds of benefits from the organization and as a result are more attached to it. They hardly badmouth their organization and always think in favour of the management. For them the organization comes first and all other things later.

It is essential for the organization to retain the valuable employees showing potential: Every organization needs hardworking and talented employees who can really come out with something creative and different. No organization can survive if all the top performers quit. It is essential for the organization to retain those employees who really work hard and are indispensable for the system.

The management must understand the difference between a valuable employee and an employee who doesn’t contribute much to the organization. Sincere efforts must be made to encourage the employees so that they stay happy in the current organization and do not look for a change.

Employee Retention StrategiesFor an organization to do well and earn profits it is essential that the high potential employees stick to it for a longer duration and contribute effectively. The employees who spend a considerable amount of time tend to be loyal and committed towards the management and always decide in favour of the organization. When you meet someone, there is hardly any attachment in the beginning, but as the friendship matures, a sense of loyalty and trust develops. In the same way, when an individual spends a good amount of time in an organization, he gets emotionally bonded to it and strives hard for furthering the brand image of the organization.

The management can’t completely put a full stop to the process of employees quitting their jobs but can control it to a large extent.

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Let us go through some strategies to retain an individual: An employee looks for a change when his job becomes monotonous and does not offer

anything new. It is essential for everyone to enjoy whatever he does. The responsibilities must be delegated according to the individual’s specialization and interests. It is the responsibility of the team leader to assign challenging work to his team members for them to enjoy work and do not treat it as a burden. Performance reviews are important to find out whether the employees are really happy with their work or not.

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.

The human resource department must ensure that it is hiring the right candidate. 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 not 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 demotivates the talented ones and prompt them to look for a better opportunity.

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. The individuals should be made to join only when the salary as well as other terms and conditions are acceptable to them.

The company’s rules and regulations should be made to benefit the employees. They should be employee friendly. Allow them to take a leave on their birthdays or come a little late once or twice in a month. It is important for the management to understand the employees to gain their trust and confidence. The consistent performers must also have a say in the company’s decisions for them to feel important.

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Challenges in Employee RetentionIn the current scenario, a major challenge for an organization is to retain its valuable and talented employees. The management can control the problem of employees quitting the organization within no time to a great extent but can’t put a complete full stop to it. There are several challenges to it.

Let us understand the challenges to employee retention:

Monetary dissatisfaction is one of the major reasons for an employee to look for a change. Every organization has a salary budget for every employee which can be raised to some extent but not beyond a certain limit. Retention becomes a problem when an employee quotes an exceptionally high figure beyond the budget of the organization and is just not willing to compromise. The organization needs to take care of the interests of the other employees as well and can’t afford to make them angry. The salaries of the individuals working at the same level should be more or less similar to avoid major disputes amongst employees. A high potential employee is always the center of attention at every workplace but one should not take any undue advantage. One should understand the limitation of the management and quote something which matches the budget of the organization. An individual should not be adamant on a particular figure, otherwise it becomes difficult for the organization to retain him. Remember there is a room for negotiation everywhere.

In the current scenario, where there is no dearth of opportunities, stopping people to look for a change is a big challenge. Every organization tries its level best to hire employees from the competitors and thus provide lucrative opportunities to attract them. Employees become greedy for money and position and thus look forward to changing the present job and join the competitors. No amount of counseling helps in such cases and retaining employees becomes a nightmare.

Individuals speak all kind of lies during interviews to get a job. They might not be proficient in branding but would simply say a yes to impress the recruiter and grab the job. It is only later do people realize that there has been a mismatch and thus look for a change. Problems arise whenever a right person is into a wrong profile. An individual loses interest in work whenever he does something out of compulsion. The human resource department should be very careful while recruiting new employees. It is really important to get the reference check done for better reliability and avoid confusions later.

Some individuals have a tendency to get bored in a short span of time. They might find a job really interesting in the beginning but soon find it monotonous and look for a change. The management finds it difficult to convince the employees in such cases. Individuals must also understand that every organization has some or the other problem and adjustment is required everywhere, so why not in the present organization? It becomes really difficult for the HR Department to find out what exactly is going on in the minds of the individual. An individual should voice his opinions clearly to make things easier for the management.

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Unrealistic expectations from the job also lead to employees looking for a change. There is actually no solution to unrealistic expectations. An individual must be mature enough to understand that one can’t get all the comforts at the workplace just like his home. Individuals from different backgrounds come together in an organization and minor misunderstandings might arise but one should not make an issue out of it. An individual must not look for a change due to small issues. One needs time to make his presence feel at the organization and must try his level best to stick to it for a good amount of time and ignore petty issues.

After Effects of a Poor Employee RetentionEmployees are the major assets of any organization. An organization can’t survive if the individuals are not focussed and serious about their work. The success and failure of any organization depend on the hard work put by the employees to achieve the targets of the organization. It is a common observation that employees who spend a good amount of time in the organization tend to know more about it and thus contribute effectively. They develop a sense of loyalty towards their workplace and strive hard to live up to the expectations of the management.

There are several reasons as to why an employee decides to move on. Monetary dissatisfaction, a negative environment at the workplace, dirty politics, complicated hierarchies, lack of challenging work, poor supervision being the major ones.

In the current scenario almost all the leading organizations are facing the problem of employee retention. Management somehow fails to stop the high potential employees and thus face the negative consequences. It becomes really difficult for the organization to retain the employees who decide to quit for a better opportunity.

Let us go through some of the after effects of poor employee retention:

Every organization invests its time and money in training a new joinee to bring him at par with the existing employees. The organization is at a complete loss when the employees quit all of a sudden. Hiring needs to be done all over again and still there is no surety whether the new joinee would be apt for the profile or not? One wrong person hired and the output of the entire team and eventually the organization goes for a toss.

Employees who spend a considerable amount of time in any organization know it in and out and thus can perform better. They are well familiar with the company policies and adjustment is never a problem. Employees who come and go find it very difficult to settle down in a new environment and are thus always in a state of dilemma. They are not able to perform up to their potential and eventually the work and the organization suffers.

Individuals who have the habit of changing jobs frequently never get attached to any particular organization. They just treat the organization as a mere source of earning money. They are never serious about their work and fail to accomplish the tasks within the desired time frame. It hardly matters to them whether the organization is performing

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well or not? In cases of poor retention policies, employees are just not bothered about the reputation of their office and avoid taking initiative to do something new. The employees who are there for a long time in the organization are trustworthy and the management can rely on them anytime.

When individuals leave any organization, they are more likely to join the competitors. Sometimes they tend to take confidential data along with them to create an impression in their new organization. This way the plans of the organization get leaked even before implementation and they fail to do anything great. Employees must not share any information with an external party in any manner what so ever.

An organization can’t perform well if the employees speak negative about it. It is essential to have a group of loyalists who play an important role in furthering the brand image of the company.

Employees working with an organization for a long time never badmouth it and are somewhat emotionally attached to it. People leaving in a short span always speak ill about their previous organizations. The loyalty factor is almost zero and no one is ready to take ownership of work.

The HR department must take the initiative to discuss the several issues disturbing an employee and try to sort it out as soon as possible. An organization must work hard towards retaining those who really are important for the organization.

Qualities in an Organization for a Better Employee RetentionEmployee Retention refers to the various steps involved to retain the outgoing employees. Hiring is a cumbersome process and it is really not easy to find an employee who is loyal towards the organization and looks forward towards achieving its targets. An organization must encourage the employees to stick to it for a good amount of time and contribute effectively in their respective areas.

Every individual strives hard to give his hundred percent to the organization and expects the same in return. An individual must feel attached to his workplace to enjoy his work and learn something new each day. The organization must promise opportunities for further growth to all the employees and each one should foresee a bright future there.

Every individual expects peace and healthy working conditions to deliver his level best. A shady background and poor financial condition of the organization are the major factors leading to unrest amongst the employees. No individual likes to work with an organization running into losses. A sick unit is unable to pay salaries on time making it difficult for the employees to work with it for a long time. An organization must be financially stable for the employees to feel safe and secure.

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Rules and regulations are formulated for the benefit of the employees and thus should not be too rigid. An organization must have employee friendly policies for the individuals to stay motivated. The management must take into consideration the genuine problems of the employees to make the organization a better place to work. Leave policies and compensation structure should be designed in a manner to satisfy the needs of the employees.

Monetary satisfaction is one of the major reasons as to why an employee sticks to an organization for a longer duration. Incentive plans, perks and other benefits should meet the expectations of the employees and should be directly proportional to the hard work put by the individuals. The high potential employees should be rewarded suitably to make them feel indispensable for the organization and to expect the same from them everytime.

An organization must have a simple hierarchy and the functional areas of each team should be well defined. Complicated hierarchies lead to confusions and unnecessary disputes amongst team members. It is essential to maintain transparency at all levels. The team size should be restricted to 5 or 6 members for smooth flow of information and better output. Every team ideally should have a single leader willingly chosen by the team members to act as a strong support system for them. The superiors must be accessible to the team members in case of queries and must monitor the team’s performance from time to time. The team leader should act as a role model for his team.

Freedom of expression is of utmost importance at the workplace to retain employees. Individuals should have the liberty to express their ideas and discuss issues on an open forum. This way employees do not crib among themselves and come closer to each other.

The organization must encourage employees to celebrate major festivals at the office premises itself. Ask them to bring their families as well. Such activities go a long way in strengthening the bond among the individuals and retaining them.

It is important for the organization to have stringent policies for non performing employees. Strict action must be taken against those who come to organization just for fun and are just not bothered about their own work. The performers must get an extra edge and should be entitled to exclusive benefits.

An organization must offer a positive ambience to its employees to expect a consistent performance from them. The workplace should be free from all sorts of disputes, nasty politics, controversies and blame games which go a long way in demotivating an employee and prompting him to look for a change. Healthy competition is essential at the workplace to encourage the employees to perform up to the mark every time.

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