HRM 730

ARTICLE CRITIQUE: EMPLOYEE RETENTION

PREPARED BY AHMAD SAUFE BIN NAWI 2009114839

SUMBITTED TO: ASSOCIATE PROFESSOR DR. NORMALA DAUD

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ARTICLE 1: An exploratory study of US lodging properties’ organizational practices on employee turnover and retention by Elisa Moncarz and Jinlin Zhao, School of Hospitality & Tourism Management, Florida International University,North Miami, Florida, USA, and Christine Kay, College of Hospitality Management, Lynn University, Boca Raton, Florida, USA.

Elisa Moncarz and Jinlin Zhao and Christine Kay are lecturer respectively at Florida International University and Lynn University, USA. The paper is purposely to investigate US lodging properties’ organizational employee-retention initiatives and practices, and to study the impact of those initiatives on employee turnover and retention.

For this study, the authors decided to use the Directory of Hotel & Lodging Companies, a suitable sample group of 24 management companies are selected. A self-administered mail survey instrument is developed to measure and test organizational initiatives and practices on employee turnover and retention. Using SPSS 16.0, two statistical tests are engaged to test study hypotheses. Correlation analysis is used to identify the relationships between predictor and response variables. Likewise, regression analysis is used to examine the relationships between predictor and response variables hypothesizing that the effectiveness of practicing the human resource management organizational initiatives on management and non-management retention and turnover will differ. The findings reveal that Corporate Culture, Hiring and Promotions and Training practices influence non-management employee retention. At the same time, Hiring and Promotion practices impact management retention, as well. Moreover, Organizational Mission, Goals and Direction, and Employee Recognition, Rewards and Compensation were found to positively reduce non-management employee turnover. 2

The authors found that corporate culture, hiring and promotions and training practices influence non – management employee retention. According to Becker and Huselid (1999), culture creates competitiveness since it changes employee behavior by making them act consistently with the firm’s desired corporate culture, thereby influencing employee retention. It indicates here corporate culture of an organization somehow will be consideration factor for an employee whether to stay or leave the organization. (Milman, 2002, 2003; Milman and Ricci, 2004) found that employees who had a positive experience with regards to working hours, sense of fulfillment with their jobs and higher level of job satisfaction are more likely to stay with their current employer. This research can be consider as a good research because the researcher had provide adequate literature review on the recommendation that they have authenticated. The author suggested that the organization focus on the hiring and promotions of their employee. This statement somehow I can’t agree with because at certain point money doesn’t work to improve the performance of an employee.

In short, human resource manager must be creative in installing the employee – based culture in the organization corporate culture and at the same time follow the organization mission and vision in achieving certain goals. According to study done by Man Power Asia Pacific, the managing director (Ian Herberston) state that money is not the main reason why people change their job, it is about organization atmosphere itself play a vital part in retaining the employee.

ARTICLE 2:

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Occupational pensions and employee retention: Debate and evidence by Stephen Taylor, Manchester Metropolitan University, Manchester, UK

This article explores the relationship, in the contemporary UK context, between employee retention and the provision by employers of occupational pension schemes. Several sources of literature are drawn on to develop cases for and against the proposition that pensions play a discernible role in reducing employee turnover. Original research carried out by the author is then presented which suggests that the retention effect is limited in terms of both its potency and its extent. A particular finding is the varying importance of pension schemes in terms of the retention of different staff groups.

The main purpose of this paper is to provide a medium of discussion on the relationship between occupational pensions and employee retention as well as providing constructive evidences towards such relationship. A widely held and often expressed view is that employersponsored pension funds are a means used by organizations to help meet key human resource management objectives. Extensive academic research in the field of pension fund economics has reinforced this broad view in its analysis of incentive effects in typical schemes and in its finding of statistically significant correlations between pension scheme membership and reduced employee turnover. A separate stream of research analyzing employer perceptions of the purposes and effectiveness of pension schemes has also served to strengthen the belief that they act as an important management tool for their sponsoring organizations. I believe that the methodologies of conducting this study are not briefly explained by the author. In addition, the explanation regard the topic is not compressive enough. More structure research methodology should be presented by the researcher in future to help other researcher 4

know how to conduct such a research like the one done by them before. On top of the research methodology it is agreeable with the finding of the research and the researcher just need to add more literature review on past study done by other researcher regarding the relationship of occupational pensions and employee retention.

In conclusion, from the findings of the study the human resource manager should take into account to reengineer the organization pension scheme to make it more attractive to retain current employee and potential employee out there. A few considerations should be taken by the author or future researcher to look into other variable that may have relationship with the employee retention.

ARTICLE 3:

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Employee retention, labor turnover and knowledge transfer: case studies from the Canadian plastics sector, Clarence Lochhead & Alex Stephens, Canadian Labor and Business Centre.

Clarence Lochhead and Alex Stephens (2004) from Canadian Labor and Business Centre had presented their research entitled “Employee Retention, Labor Turn over and Knowledge Transfer. In their report, they found that worker retention or turn over and knowledge transfer as an critical issued to the sector’s effort to meet its articulated skill needs. They also add that the ability of employee to address employment growth as well as replacement of turnover and retention pose increasing human resource challenges. Their study also had articulates best practice and solution for dealing with this issue. It is agreeable with all the best practice and solution for dealing with employee retention but the authors is not bolding the role of non – cash reward in making the employee retention strategy more successful.

The main purpose of this study is to provide a comprehensive analysis of best practice practices in worker retention and knowledge transfer strategies at plastic sector (Plastic manufacturing company) in Canada. The author decide to use non – probability sampling by selecting 50 companies in the plastic manufacturing sector with intended sample size of 30. The means of gathering the data is using telephone interview and electronic mail (e – mail). The respondent for the study is the top level management of the selected company

From the article, I found that the authors had conducted the study thoroughly by providing comprehensive best practices and solutions dealings with employee retention in the

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plastic sector. The authors also supporting their study by providing the recommendations supported with numbers of past study done by previous researcher. The author also highlighted some key point in the research which is the planning for performance appraisal. In other word, human resource manager should make proper planning prior to implement on the employee. Somehow the performance appraisal should be measurable in order to help the organization to measure the performance of their employee accurately. The study conducted by the author provide some critire

ARTICLE 4: Breaking the employee turnover cycle: best practices guidelines for employee retention by Canadian Food Industry Council. 7

The Canadian Food Industry Council in their research entitled “Breaking the employee turnover cycle; best practices guidelines for employee retention is purposely to break the repetitive cycle of excessive employee turnover. The paper also provides the best practices detailed in this article represent proven strategies dealing with employee retention. In their findings, they found that management practice have direct effect on employee turnover. Furthermore, the paper manage to identify four factors are most influential which are scheduling off duty employee to work, limited training time, non – competitive pay rate and poor employee communication.

This paper purposely to give best guidelines to the organization that engaged with the manufacturing the food. The author found that there are few guidelines in dealing with employee retention, one of it resist calling employee into work during scheduled time off. The author feel that the management must have strategic and proper planning regards the employee scheduling. In other word, management should invest their money into automated schedule software in order to enhance the employee scheduling system. The author also found that by maintaining an employee training program will help the company in retaining its employee by doing so on – going staff orientation, training and development. The organization can retain its employee by offering competitive pay rates. In addition, the management should consider following element in planning for offering competitive pay rate to its employee which are base pay, performance – based pay, equity – based compensation, benefits packages and reward and recognition program. Next, the company should engage with their staff well to have higher rates of retention. The author had identified a few methods on engaging with the employee by instilling fun and relaxing working atmosphere and interacts frequently with their employee. The management of the organization nowadays also must give reward and recognition good 8

performance of their employee since it has a direct influence on employee confidence and job satisfaction.

Prior to constructing and implementing the employee retention strategy, the human resource manager should critically look onto all the guidelines provided from this paper. In addition they should respect their time: don’t call employees in to work unscheduled shifts, train your people. Prepare them to serve you well, compensate them fairly. Show them they are valued, talk to them. Keep them informed of operational developments, reward them for good work and make meaningful gestures of appreciation. The best practices detailed in this publication represent proven strategies for maximizing employee retention

ARTICLE 5: Safety focus results in employee retention, Crystal Avila, Safety Coordinator San Ramon Valley Conference Center. 9

The paper presented by Crystal Avila, a safety coordinator at San Ramon Valley Conference Center is purposely focusing safety as a determinant of employee retention. In the research, Crystal Avila found that employee retention can be affected by safety training of such organization.

There is a direct link between training and employee retention. Employees involved in ongoing training feel that their employer is interested in them doing a better job, and the employer cares enough about them to make an investment in their development. Training can also be the means for positive change in any organization; however, training is not enough to create lasting change without a vital link that will help your employees transfer what they learned into real-life application. That vital link is a strong coaching program. To illustrate the importance of coaching after training, imagine sending your employees to attend a workshop. They learn new skills and how to apply them on the job. They are excited about how it will help them perform better; yet when they return to work their supervisor shows little interest in what they learned, and is too busy to offer support. After a few attempts to make some positive changes, the discouraged employees go back to doing things as usual. It's no surprise that training is one of the first things cut when times get tough. Coaching, when done properly, will become a supervisor's focal point to leverage the performance of those in their charge. Coaching is a process of interacting with people in a way that teaches them to produce spectacular results, which is why it is often called “transformational coaching.” To transform means to make a huge change, as in the way a caterpillar transforms into a butterfly. Once the change is complete, the prior state ceases and the new state becomes the norm. In order to become a good coach, you must first make the transformation within yourself. 10

You must make the inner changes to realize the outward changes in your staff. As you become a better coach, it will transform the relationship you have with your employees. Rather than only looking at the bottom line to define success, a transformational coach appreciates and develops the people and processes that help to produce those results.

In a nutshell, as you help shape the behaviors of others, it will help shape the organization into your vision of what it can become. As a masterful coach, you will become a role model for others and inspire them to achieve higher standards. You will realize that training is not enough to make lasting changes. Transformational coaching will be the catalyst that causes your training efforts to produce exponential results, and create a high-performance team.

REFERENCES 1. Becker, B. and Huselid, M., An interview with Mike Losey, Tony Rucci and Dave Ulrich; 11

three experts respond to HRMJ’s special issue on HR strategy in five leading firms, Human resource management, Vol.38 No.4, pp.353-356 2. Canadian Food Industry Council, Breaking the employee turnover cycle; best practices guide for employee retention 3. Clarence Lochhead & Alex Stephens, Employee retention, Labor turnover and knowledge transfer: case studies from the Canadian plastics sector, Canadian Labor and Business Centre, April 2004 4. Crystal Avila, Safety focus results in employee retention, San Ramon Valley Conference Centre 5. Elisa Moncarz and Jinlin Zhao and Christine Kay, An exploratory study of US lodging properties’ organizational practices on employee turnover and retention, International Journal of Contemporary Hospitality Management Vol.21 No.4, 2009, pp.437-458, Emerald Publishing Limited 6. Milman, A. (2002), “Hourly employee retention in the attraction industry: research from small and medium-sized facilities in Orlando, Florida”, Journal of Leisure Property, Vol. 2 No. 1, pp. 40-51. 7. Milman, A. (2003), “Hourly employee retention in small and medium attractions: the central Florida example”, International Journal of Hospitality Management, Vol. 22 No. 2, pp. 17-35. 8. Milman, A. and Ricci, P. (2004), “Predicting job retention of hourly employees in the lodging ndustry”, Journal of Hospitality and Tourism Management, Vol. 11 No. 1, pp. 23-41. 9. Stephen Taylor, Occupational pensions and employee retention; debate and evidence, Employee Relations, Vol.22 No.3, 2000, pp.246-259, MCB University Press

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