Employee Retention in an Organization

Transcription

1 Volume-7, Issue-5, September-October 2017 International Journal of Engineering and Management Research Page Number: Employee Retention in an Organization Ganji Srirekha, MBA (HRM) 1, Dr. Y. Venkateswara Rao 2 1 Member (HMA), Working Professional, INDIA 2 Professor, MBA Department, Mallareddy Engineering College for Women, Maisammaduguda, Secunderabad, INDIA ABSTRACT Employee Retention can be described as a firm s capability to retain their employee s. In modern era most of the organisation focus on the Employee Retention and thereby use different strategies for achieving the high retention rate in the market. If a company has high retention rate then it indicates that employee s are satisfied with the workplace and the perks provided by the organisation to their employee s. It 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 employee, make him a company ready matter 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 mixture of measures taken so that an individual stays in an organization for the maximum period of time. The more the employee turnover the high wills the losses in the organisation. For any organisation human resources are considered to be the essential resources. With the Employee Retention the productivity will be increased. In the organisation HR have a major role in the Employee Retention. Individuals once being trained have an inclination to move to other organizations for better prospects. High pay scale, comfortable timings, better environment, career growth prospects are some of the factors which prompt an employee to look for a change. Whenever a talented employee expresses his enthusiasm to move on, it is the responsibility of the management and the human resource team to negotiate immediately and find out the exact reasons leading to the decision. techniques and policies of the organization and thus can adjust better. For an organization to do well and earn profits it is essential that the high potential employees retain to it for a longer duration and contribute effectively. When you meet someone, there is hardly any attachment in the beginning, but as the friendship matures, a sense of trustworthiness and hope 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. With the employee retention both individual and organisational goals can be achieved. If the employee retains in the same company for longer period it results in the promotion or increase in the pay scale etc., in the same way with the employee retention organisation can obtain high productivity and low wastage will be observed in the financial state of the organisation. Working atmosphere play a decisive role in the employee retention. If the employee experience that his/her surroundings is comfortable then it will lead to less absenteeism and creates a association among the employee and the management, which in turn leads to employee being open to management. Thus reduces the conflicts in the organisation. Management has to ensure whether the employee is degraded in any manner and might wish to hop in other organisations. Consecutively management has to intrude the thought process of the employee s by providing perks. Keywords-- Employee Retention, better environment, career growth prospects II. DEFINITION OF EMPLOYEE RETENTION I. INTRODUCTION An organization can t endure if the top performers relinquish. It needs employees who are loyal and work hard with full dedication to achieve the organization s objective. It is essential for the management to retain its valuable employees who think in favour of the organization and contribute their level best. An employee who spends a longer duration at any particular organization is familiar with the rules, Employee Retention refers to the techniques employed by the management to help the employees fuse with the organization for a longer period of time. Employee retention strategies go a long way in motivating the employees so that they stay in 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 coursework and for them to enjoy their work. III. OBJECTIVES OF THE STUDY 57 Copyright Vandana Publications. All Rights Reserved.

2 The main objective is to identify how to enhance the employee retention rate in the organisation. To know the employee perspective towards the organisation. To identify the factors that influence the employee s to retain in the organisation. To identify the factors that influences the employee s walkout from the organisation. IV. SCOPE OF THE STUDY The scope the study mainly focus on the importance of the employee retention in an organisation and make one realize the significance of the employee sticking to the organization Employee retention has become a crucial goal in the organisation. The study aims not only at theoretical aspects, but also the practical aspects. A survey has been conducted to understand the techniques implemented by the organisation for the ensuring the employee retention. V. LIMITATIONS OF THE STUDY VI. The data have been collected from the present employees only. So it may vary in the future. The duration of the study is limited. So it may not be able to cover the entire scope. The survey is subjected to the bias and prejudices of the respondents. Hence 100% accuracy can t be assured. The researcher was carried out in a short span of time, where in the researcher could not widen the study. The study could not be generalized due to the fact that researcher adapted personal interview method. IMPORTANCE OF EMPLOYEE RETENTION An organization invests time and money in grooming an individual and makes him ready to work and understand the corporate culture: A new joiner is completely underdone 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 joiner is made to sign a document which stops him from passing on any information even if he leaves the organization. Strict policy 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. 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. VII. RESEARCH METHODOLOGY The basic principle in the research has been adopted in the overall methodology. The following methodology has been used for meeting the requirements, Defining objectives Developing the information sources Collection o information Analysis of information Suggestion The methodology followed for collection, analysis under interpretation of data in explained below. Population and Sample size The purpose of the study is to study the relationship between working environment and job satisfaction. The data is gathered randomly from the employees of banks, telecommunication sector and universities, through survey questionnaire. From each sector, 70 respondents were chosen that allow us to get no of responses from employees working in different institutions through the use of self-administered questionnaires. As evidence suggest that selfadministered questionnaire, distributed by hand and via s, is most suitable in many researches. The main aim of selecting employees from various fields is to get opinion from a diverse group of people so that the results can be generalized on the vast group of population. Sample Size Out of Sample 70 respondents were interviewed. Source of Data In this Study both Primary and secondary data were used. Primary Data 58 Copyright Vandana Publications. All Rights Reserved.

3 Employees were interviewed with help of questionnaires. Secondary Data Various information s collected from company records. Data Collection Instrument Personal interview based on the questionnaire. The questionnaire was prepared based on the parameters that have to be measured. Tools used for analysis Information obtained from the respondents was analyzed and interpreted with the help of Microsoft word Performed frequency calculation method with the information gathered from primary and secondary sources. Data Analyses Simple analysis method is followed for analyzing the data pertaining to different dimensions of employees. Simple statistical data like percentage are used in the interpretation of data pertaining to the study. The results are illustrated by means of bar charts. VIII. LITERATURE REVIEW Fitz-enz (1990) renowned that Employee Retention is not subjective by a single factor, but there are hosts of factors which are responsible for retaining employees in an organization. Management need to pay attention to factors such as compensation & rewards, job security, training & developments, supervisor support culture, work surroundings and organization justice etc. According to Osteraker (1999), the employee satisfaction and retention are the key factors for the success of an organization. The Retention factor can be divided into three broad proportions, i.e., social, mental and physical. The mental aspect of retention consist of work characteristics, employees always prefer flexible work tasks where they can use their knowledge and see the results of their efforts which, in turn, helps in retaining the valuable resources. The social aspect consists of the contacts that the employees have with other people, both internal and external. The physical aspect consists of working conditions and pay. Stein (2000), Clarke (2001), Parker and Wright (2001) have rightly observed that organization must utilize an extensive range of human resource management factors to influence employee commitment and retention. Walker (2001) identified seven factors that can enhance employee retention: (i) compensation and appreciation of the performed work, (ii) provision of challenging work, (iii) chances to be promoted and to learn, (iv) invitational atmosphere within the organization, (v) positive relations with colleagues, (vi) a healthy balance between the professional and personal life, and (viii) good communications. Together, these suggest a set of workplace norms and practices that might be taken as inviting employee engagement. Kehr (2004) divided the retention factors into three variables: power, achievement and affiliation. Dominance and social control represents power. When personal performance exceeds the set standards, it represents achievement and affiliation refers to social relationships which are established and intensified. Hytter (2007) found that factors such as personal premises of loyalty, trust, commitment, and identification and attachment with the organization have a direct influence on employee retention. She also explained that workplace factors such as rewards, leadership style, career opportunities, the training and development of skills, physical working conditions, and the balance between professional and personal life have an indirect influence. Pritchard (2007) was of the opinion that training and development is one of the important retention programmes incorporated in an effort to retain their employees. Eva Kyndt, Filip Dochy et al.,(2009) have found in their study, while investigating employee retention that personal factors such as level of education, seniority, self-perceived leadership skills, and learning attitude and organizational factors such as appreciation and stimulation, and pressure of work are of great relevance in employee retention. A major challenge faced by the employees today is retaining 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 many 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 from the organization. Many researchers such as Arnold and Feldman, (1982) ; Wotruba and Tyagi, (1991) ; Brodie, (1995) have found and concluded in their study that age, job satisfaction, tenure, job image, met expectations, organizational commitment are consistently related to turnover intentions and the actual turnover. Research findings by Jewell and Segall, (1990) [ and Locke (1976) have clearly stated that people, who are satisfied with their jobs, tend to stay in them longer, i.e. lower turnover, and be less absent. Researchers such as Carsten and Spector (1987) conducted a metal analysis to find the relationship between job satisfaction and turnover and found a negative correlation between both the variables. Harrington et al. (2001) examined the various predictors of intentions to leave a job and observed that emotional exhaustion; lower levels of intrinsic job satisfaction and dissatisfaction with salary and promotional opportunities were the main predictors. Gurpreet Randhawa (2007) concluded in her study that a significant correlation between job satisfaction and turnover intentions suggesting thereby that higher the job satisfaction, lower is the individual's intention to quit the job. 59 Copyright Vandana Publications. All Rights Reserved.

4 IX. DATA ANALYSIS AND DATA INTERPRETATION 1. Are you aware of employee retention practices used by the management? YES NO From the above derived data we can say that utmost people in the organisation are aware of employee retention practices implemented by their management. And 90% of employee s say yes and only 7% of employees are not aware of this system. It is the responsibility of the HR, Manager or employer to inform to the every employee to know there is retention system in the organization. 2. Are you happy with your current job? YES NO From the above we can say that 70% of employees are satisfied with their current jobs and 20% are not satisfied with their job.thus we can say that employee job satisfaction is one of the factors for employee retention. Mean while when the employees feel responsibility towards work then they will get the work benefit as well as satisfaction in his work and it leads retention. 3. What motivates you to stick in the same organisation? Opinion No of respondents Percentage Comfort timings Bonus Rewards facilities Copyright Vandana Publications. All Rights Reserved.

5 Comfort timings Bonus Rewards facilities Percentage No of respondents From the above table it is clearly shown that 35.7 percent of the people motivated to stick on work due to comfort timings, 28.5 percent of the respondents are motivated through Bonus, 21.4 percent respondents through rewards and 14.2 percent are through facilities which are providing in an organization. We can see that comfort timings are highly prioritized by the employee in an organisation. About 40 percent people prefer the timings of the organisation and next are the bonus practices implemented by the organisation. It indicates that when we can provide the proper time, environment and good culture to the employees in the work area automatically it leads the retention. 4. Do you think that your current organisation helps in your career growth? YES NO From the above we can see that about 57 percent of employees believe that the current organisation they are working in will help in their career growth, and 42 percent of the employees do not agree with it. It seems maximum employees are agree that present organization and work environment will help them to growth in their career. 5. Do you feel you have been recognised enough in the current organisation? Opinions No of respondents Percentage Agree Disagree Strongly agree Strongly disagree Copyright Vandana Publications. All Rights Reserved.

6 From the above we can say that 50 percent of the employees strongly agree that the current organisation they are working in give enough recognition to them, 28 percent of the respondents are saying agree that the current organization will give enough time to recognition, nearly 14 percent of the respondents are strongly disagree towards recognition in the current organization and only 7 percent of employees disagree with it. 6. Do you think providing training help the employee to retain in the employee? Opinions No of respondents Percentage Agree Disagree Strongly disagree Strongly agree From the above we can say that 35 percent of the employees are not satisfied with the training programs conducted by organization, and 28 percent of employees are satisfied with the training activities provided by the organisation. It shows every organization should depends on the proper training activities and programs it leads employee retention in an organization. 7. Do you think the current organisation you are working in match your expectation? YES NO Copyright Vandana Publications. All Rights Reserved.

7 From the above we can say that there is a biased response from the employees. 50 percent of employees agree that their current organisation matches their expectation and 50 percent of employees does not agree with it. That means maximum half of the respondents are satisfying the employee satisfaction levels. 8. Do you think bond beyond work is required to be implemented? YES NO From the above we can see that most of the employee prefer going beyond the designation and get know each other better. About 85% of employees agree that low level and top level management must maintain a good relationship and rapport. 8. Do you think feedback helps to improve employee performance and retain him/her in the organisation for longer extent? YES NO YES NO percentage No of respondents 63 Copyright Vandana Publications. All Rights Reserved.

8 From the above the derived data we can say that feedback helps the employee to retain in the company and about 90 percent of employees agree with it. So, feedback will place the very important role in every student life and it leads the organization to be motivated to enhance the retention rate. 9. Do you agree that new employees should be encouraged in place of existing employees instead of company sticking to existing employees? Opinions No of respondents Percentage Agree Disagree Strongly disagree Strongly agree The study derives that 35 to 40% of the employees disagree that existing employees should be retrenched and should be replaced with the new blood. About 14% of employees agree with it. 10. On the scale of 1-10 where 1-poor, 5-good and 10-excellent rate the guidance provided by the management will be effective enough for your career? Opinions No of respondents Percentage 1-poor good excellent From the above we can say that 50 percent of employees have recorded well on the scale of 10 for the guidance provided by the management towards career development, 47 percent of the respondents are said that excellent career guidance and very less percent of employees give poor regarding the guidance provided by the organisation. That means that majority of the respondents are agreed that management will provide the efficient and required training for career growth and development X. FINDINGS 1. It is found that 80% of employees are happy with their current job and 20% are not, this can be because of management might be lagging in the connection with some of the employees. 2. It is found that comfort timings are the important aspect in the organisation, people usually tend to start the day at work with a comfortable time lapse. 64 Copyright Vandana Publications. All Rights Reserved.

9 3. It is found that 40% employees are not satisfied with the training and development programs conducted by the organisation and seek more attention from the organisation. 4. When considered about the expectations of the employees from the organisation it is found that employees have biased judgement regarding the organisation reaching the expectation i.e.., 50% agree that organisation matches their expectation and 50% does not agree with it. 5. It is found that most of the employee s i.e.., about 70% employees say that retaining in any organisation depends on the rapport among the management and the employees. XI. SUGGESTIONS 1. Organisations must concentrate and create a good environment for the employees who in turn make the employ delighted with the work and organisation they are working in. 2. Many organisations implement comfortable timings taking in to consideration of employee opinion and it is suggested that for retaining employees and reduce absenteeism it is suggested to provide perks like rewards and promotions to motivate the employees. 3. Training and development is the key aspect of any organisation to reach its goals, thus effective training programs should be implemented. Management should go for training programs every month to assess the skill-set of the employees. 4. Every employee will possess some expectation form the organisation which should be met by the management by motivating the employees with promotions, bonus, increments etc and provide a path to develop their career by giving access for them to go for higher studies with its corresponding institutions. 5. It is suggested that good relationship between the management and the employees create peaceful environment and work life balance. Manager must take effective measure to establish a good rapport with his subordinates which results in healthy workplace. XII. CONCLUSION From the employees perspective it can be concluded that employee turnover is not a natural phenomenon. There are many reasons which lead to increase in attrition. It is observed that both the external and internal factors are responsible for employee turnover. Among the external factors opportunity for growth and promotion outside, location and work life space are the important. And among the internal factors compensation, work timing / shifts, working conditions, relations with supervisor / manager, opportunity to use skills, work load are important respectively. From the perspective of managers, it can be concluded that the factors that lead to increase in employee turnover are majorly internal to the organisation. Although the external factors also influence, but as the management of the company does not have any control over the external factors it can focus on modifying the internal factors to enhance the retention of the employees in the organisation REFERENCES [1] Employee Retention-The Tools and Techniques IRS Employment Review [2] Hewitt s (2006), Attrition and Retention Study Asia Pacific 2006 viewed on 2 nd September, 2007 [3] fs/attrition_retention_2006.pdf [4] viewed [5] viewed on 04 April, [6] [7] [8] 65 Copyright Vandana Publications. All Rights Reserved.