STRATEGIES FOR RETAINING EMPLOYEES AND MINIMIZING TURNOVER

Transcription

1 STRATEGIES FOR RETAINING EMPLOYEES AND MINIMIZING TURNOVER Mr. Ziya Ur-Rahman.G.N, Assistant Professor, Vijaya Evening College, Bangalore. Ms. Lavanya.K, Associate Professor, Research Scholar (REVA University), C.B.Bhandari Jain College, Bangalore Ms. B.Parvathi Devi, Associate Professor, SB College of Management Studies Bangalore INTRODUCTION Human resources or employees are valuable resource or asset to an organization. Their role is indispensable in the growth and development of an organization. Employer leaves an organization for various reasons, be it personal, professional, ethical, cultural, technological, dissatisfaction on the job or off the job etc.employers and employees work together parallels like the two faces of a coin. It is the utmost duty of the employer to pay attention and respect the opinion, needs, problems and feedback of his employees, so as to implement strategies to ensure orderliness, effectiveness and co-ordination while executing tasks which enhances the performance of the organization. Employees leave their jobs for various reasons and not necessarily due to pay package. The other reason could be due to 1. Employees feel that he is misfit in the current role or designation offered to him.. Employees feel that there are few or no opportunities for growth and career enhancement in the organization he is working in. 3. Employees feel too stressed out or overworked due to which his work or personal life balance can t be achieved. 4. Dissatisfaction with the job or workplace, which he didn t anticipate.. Employees feel devalued and not recognized for the hard work put in. 6. Lack of mutual trust and confidence amongst seniors and competent employees. 7. The job itself might no longer be relevant as technology changes and the job may no longer be interesting. Page 1

2 OBJECTIVES 1. To know the satisfactory level of employees towards their job and working conditions. To know the reasons, why attrition occurs in an organization. 3. To examine and analyse the tools available for retaining employees REVIEW OF LITERATURE Retention is a voluntary move by an organisation to create an environment which engages employees for long term (Chaminade, 7). The main purpose of retention is to prevent the loss of competent employees from the organisation as this could have adverse effect on productivity and service delivery. However, retention of high performing employees has become more challenging for managers as this category of employees frequently move from one job to another as they are being attracted by more than one organisation at a time.according to Miller, Erickson &Yust (1)employees get benefited by work environment that provide a sense of belonging. Wells &Thelen () have stated in their study that organizations which have generous human resource policies, have a very good chance to satisfy and retain employees by providing them an appropriate level of privacy and sound control on work environment which enhances the motivation levels to commit with the organization for the long term. Ramlall (3) stressed the need for recognizing the individual needs of an employee in an organization as it will encourage commitment and provide a suitable work environment. Messmer () found that one of the important factors in employee retention is an investment in employee training and career development. The Organization is always invested in the form of training and development of those workers from whom they expect to return and give output on its investment. Leadership and Employee Retention. Eisenberger and associates (199), suggested that employee s perception regarding an organization is strongly influenced by their relationship with the supervisor. McNeese-Smith (199), mentioned in his study on Leadership behavior of hospital directors found that there is significantly positive relation between productivity, worker satisfaction and organizational commitment of staff. Chung-Hsiung Fang, Sue-Ting Chang, Guan-Li Chen (9) has found that leadership style can affect organizational commitment and work satisfaction positively and work satisfaction can affect organizational commitment and work performance positively. Abegglen (198) found during the study of Japanese workers that Page

3 employment features like lifetime employment and seniority system, job security lead to higher commitment, job satisfaction as well as retention of employees in an organization. Researchers such as Ashford et al., (1989); Davy et al., (1991) conducted studies on job security and job satisfaction and found that that job dissatisfaction is the outcome of insecurity among employees. Rosenblatt and Ruvio, (1996) conducted a research on the job insecurity and found that job performance and organizational commitment are negatively correlated with job insecurity. A major challenge faced by the employees today retains the hired employees in its organization. In the age of cut throat competition every organization tries its level best to give the best facilities to its employees. Satisfying the human sources is one of the toughest tasks which majority of the organizations faces today. Understanding and knowing what is going on in the human mind is very difficult to understand. Besides, there are so many1 opportunities available for the skilled as well as talented human resources that it is becoming very tough as well as difficult for the employers to satisfy and retain them. There is no single strategy or retention plan which may satisfy each and every employee in an organization. As we have different personalities as such we have different demands and expectations of the organization. Sources of data Data for this research was collected both from primary and secondary sources. Primary data has been collected by administering questionnaires to the employees of the selected companies and secondary data has been collected from books, journals, articles and websites. Analysis Table.1 Job Security in your Organization SI. No Level of confidence No. of respondents Neither nor Total Page 3

4 Figure.1 Job Security in your Organization No. of respondents Neither nor Above analysis makes it clear that 3 percent of the employees are satisfied with the job security in the organization where in 4 percent dissatisfied by the job security. As per the analysis most of the employees expressed that they are dissatisfied with the job security in the organization they are working SI. No Table. Training & Development in the Organization Training & Development in the Organization No. of respondents Neither nor Total Page 4

5 Figure. Training & Development in your Organization No. of respondents Neither nor From the table. it is understood that, employees are aware of the training needs on the job and are satisfied with the training provided by their respective jobs. Table.3 Rewards & Recognition SI. No Rewards & Recognition No. of respondents Neither nor Total Page

6 Figure.3 Rewards & Recognition No. of respondents Neither nor Employees are motivated by the rewards either monetary or non-monetary provided by their respective organizations. Recognition for the work done is of utmost importance in the organization. This graph clearly indicates that employees are neither satisfied nor dissatisfied with their organizations rewards and recognition provided. Table.4 Fringe Benefits SI. No Fringe Benefits No. of respondents Neither nor Total Page 6

7 Figure.4 Fringe Benefits No. of respondents Neither nor Employees are motivated by the fringe benefits provided by their respective organizations. Fringe benefits for the work done are of utmost importance in the organization. This graph clearly indicates that employees are neither satisfied nor dissatisfied with their organization s fringe benefits provided. Table. Working Environment SI. No Working No. of respondents Environment Neither nor Total Page 7

8 Figure. Working Environment No. of respondents 4. Neither nor The graph depicts that the employees are satisfied with their respective organization culture and working environment conditions. Table.6 Appreciation for good work &efficiency SI. No Level of confidence No. of respondents Neither nor Total Page 8

9 Figure.6 Appreciation for good work &efficiency No. of respondents Neither nor The graph depicts that the employees are satisfied with their respective organization appreciation and recognition of their performance on their jobs. Table.7 If your organization considers retaining employee who has decided to resign their job, what additional benefits are offered SI. No Particulars No. of respondents 1 Enhancement of job 16 profile 3. Promotion retention Bonus Improvement in the 6 pay package 1. None 4. Total Page 9

10 Figure.7 If your organization considers retaining employee who has decided to resign their job, what additional benefits are offered? No. of respondents This indicates that the organization in order to retain workforce tries to analyse the reason for employee leaving the organization and tries to retain their employees by one of the following ways and out of the options provided they highlighted that promotion was one major way to retain employee. STRATEGIES FOR RETAIN THE EMPLOYEES IN THE ORGANIZATION Employers have to constantly upgrade the job and make it more interesting in order to reduce turnover. Some of the following points employers utilize to retain the workforce in their organization are 1. Make the job more interesting.. Create a congenial work environment driven by strong values. 3. Encourage Referrals and recruitment within the organization. 4. Constantly coaching and taking a positive feedback and appraising him for his performance helps in boosting the morale of employees.. Motivate and appreciate employees through monetary benefits like compensation and other fringe benefits. Page

11 6. Conducting workshops, conferences, training etc. enhances the knowledge and understanding of the job and also helps them in their career advancement. 7. Sense of belongingness increases the pride of an employee, hence appreciating the efforts of an employee,recognition for their hard work etc. influence in making employees feel valued in the organization. 8. Reducing stress due to overwork may affect the performance of an employee, hence companies can help employees in striking a work-life balance like providing Day care facilities for their kids, pick and drop facilities, work from home option, extra leave for overtime etc. Strategies to manage turnover 1. Martin & Bartol Matrix Martin & Bartol have classified turnover as being dysfunctional (Problematic) or functional (beneficial) for an organization.. The organizations have to identify whether it is beneficial to retain employees or expensive to retain non-performing employees who aren t potential on the job. SUGGESTIONS 1. Strategic Human resource planning ensures that the demand and supply of employees can be equated,at the same time costs associated with understaffing can be reduced or minimized to a great extent.. The organization can encourage employees not to leave their organization by providing incentives or giving promotion. 3. The organization can provide cross training sessions to employees, whereby they are allowed to develop skills that the organization anticipates in the future. 4. The organization can offer higher pay packages and incentives based on performance of the employees on the assigned jobs.. Employees should be competitive and efficient in order to reduce turnover. CONCLUSION Given the growing needs for organisations to retain its best employees in the face of competition, the findings of the study suggest that certain variables are crucial in influencing employees decision to either leave or remain in an organisation. Such variables include training and development, recognition/reward for good performance, a competitive salary package and job security. Hence Page 11

12 organizations should create good opportunities for the growth of the employees within the organization and provide them effective training programs. Employees who wish to depart an organization are to be considered as brand ambassadors of an organization s reputation or goodwill. REFERENCE 1. 1.Michael O. Samuel* and Crispen Chipunza 9Employee retention and turnover: Using motivational variables as a panacea African Journal of Business Management ISSN Academic Journals..Dr. K. Lavanya Latha A study on employee attrition and retention in manufacturing industries Latha Suresh,R. Krishnaraj A Study on the Importance of Employee Retention in Pharmaceutical Sector in India ISSN X 4. Munish 1, Rachna Agarwal Employee engagemetn and retention: A review of literature..michael O. Samuel* and Crispen Chipunza1 Employee retention and turnover: Using motivational variables as a panacea, ISSN Page 1