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Ways of employee retention

Ways of employee retention

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Published by sweetypari

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Categories:Types, School Work
Published by: sweetypari on Feb 15, 2010
Copyright:Attribution Non-commercial


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The question, “Why does an employee leave an organization?” has always fascinated us. Everytime one comes across someone who has changed the job, the questions revolve around trying to know the reasons that went into the decision to shift. An interaction session was held for 500 employees, students of INC, asking them why they stayed or why they quit. Almost all of them worked with reputed organizations, for good packages, in modern environs, among the best of brains and yet some choose to leave the companies while some choose to stay.

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Unpredictable and uncontrollable, but normal, reduction of work force due to resignations, retirement, sickness, or death. Retirement and deaths are natural and inevitable. It is the resignation part which is worrisome to the organization. “High Attrition Rate: A Big Challenge” showcases- the massive costs associated with attrition and turnover Attrition is a serious issue that every company needs to address sooner or later. The American Management Association says it right: Employee turnover is the silent killer of business productivity- yet it’s a solvable problem.


How then should organizations deal with attrition? How do they retain the good employees, the skilled ones, the ones with talent? The adage, “Prevention is better than cure” best summarizes the way employee turnover should be handled. Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time.

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Initially the following 7 factors were recognized as factors important for retention of employees. They were- Pay, People, Freedom, Growth, Process, Recognition and Pride. But then a pleasant discovery was made that the four factors begin with P. To make them easy to recall, the three non P factors Recognition, Freedom and Growth were changed to Praise, Power and Progress respectively ensuring that all factors began with same letter. They form the framework of employee retention or repulsion, job delight or job change.


There is no disputing fact that money is the most significant motive for walking into or out of an organization. Whatever reasons people may offer in the interview while joining the company or while leaving it, pay package is the single most important factor.

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While the person is working for his family, he spends most of his time away from it. The workplace should ideally become foster home for him. This means that the people- the colleagues, the superiors, the subordinates- in the workplace should create a family feeling. The feeling is cemented by trust in one another. In a high- trust environment, people cooperate and collaborate, leading to positive workplace interactions, higher profits and greater productivity. This is so because trust is a value that draws forth the best in people.


The barest minimum the employee expects is to have power or control on what he does. It is this control that gives meaning or significance to his work. In the workplace, freedom is important because freedom means power over one’s work. It says, “I trust you can deliver the desired result”. Giving people latitude increases the chance that they will perform as the company desiresand bring additional initiative, ideas and energy to their jobs. Who, after all, would want to stick to a company that advices not to use one’s brain but rather follow what it says.


Praise is the act of making positive statements about a person, object or idea, either publicly or privately. Praise is recognizing the value of the individual, an employee in an organization. When value is recognized, it creates a positive feeling in the employee, a feeling he is significant. Added to all this is the undeniable fact that praise or recognition or appreciation is no cost way to nurture employee commitment. Simply put, praise matters. Praise tells the employee that he is valued, that he is important. Many people leave organization because of lack of recognition

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Pride here refers to self respect, dignity, honor and is far more precious than package. The pride develops as the employee is appreciated for the contributions he makes to the organization as a part of his job. “While the pay package draws people in, it is the sense of pride that keeps them from going out”.


Process refers to the manner in which an organization conducts its day- to- day work, how it ensures there that there is role clarity for the employee and not role conflict, how it oils its work methods so as to ensure smooth functioning. It is the methodology of getting things done. A clear, well defined process at work is employee- centric because focus on the employee has a positive impact on the productivity. The employee should feel, figuratively, that he or she is driving a BMW and not a road roller. At times, road can be bumpy, but the process should be able to absorb much of the resulting shocks.

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The seventh important P is Progress. For every person irrespective of his place or position in the organization, stagnation is death and progress is life. Growth or progress is the life blood of an individual as well as the organization. Progress also signifies growth in terms of value that the company adds to the employee. Just as the employer looks for the value an employee adds to the company, the employee expects the same. Good organizations understand this and provide opportunities for learning new skills, updating one’s knowledge, being trained in new career paths.


There were 2 employees who joined same companies but different branches. One of them changed his company after working there for 6 months but the other one did not. On asking the reason for remaining there, he remarked, “If I work in the bank for 5 years and perform consistently as I do now, I can earn 5 to 7 times the salary I draw now and in addition the company promises to give me Rs 7lakh car. I also get to progress professionally and I am sure that I will become the branch Manager. I work with a very friendly team and my immediate boss is caring and considerate. We always feel we are a family. Money I can earn anywhere but a good boss and a good team are a blessing I will not take for granted. The company gives ample room to do the work my own way. We have frequent inter branch competitions and our performance is immediately acknowledged and appreciated. I am proud to be associated with the company. In fact I wonder, at times, why my classmates left the organization”.

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