RETENTION MANAGEMENT

Submitted to Ms Meenakshi Sharma
Lecturer Business Communications & Skill UPES, NCR Centre, Gurgaon.

Submitted By Betsy Raj
MBA(AVM) SEM,III

R -120107016

Introduction
Retention Management is a systematic effort to create and foster an environment that encourages employees to remain employed by having policies and practices in place that address their diverse needs.

The way it was…..
  

In the past jobs were considered desirable . Sufficient candidates could be found to fill most critical jobs. Moreover, once employed, workers would often spend their entire careers in State service.

In areas where there was turnover, new employees could be recruited easily.

The way it is…..
 

High demand in the public and private sectors . Critical areas such as health care, information technology, engineering, accounting, and auditing.

The supply of qualified workers is limited and good workforce is required.

Twofold approach :- Aggressive recruitment and Innovative retention strategies.

Retention policies need to focus on elimination of unwanted turnover.

What people want…..
 

People want to feel valued and valuable. They want to belong, to know that they their work and their ideas matter.

They want a diversity of challenges, and the ability to make decisions without excessive red tape.

They want to feel connected to upper management, knowing they can share ideas with company decision makers.

Job embeddedness perspective: Mitchell

Identifies those factors that constrain people from leaving their present job, both within and outside the organisational space.

It takes account of the fact that off-the-job events may have as much to do with turnover as things that happen within the organization.

Recognizes that people stay with an organization for reasons other than how satisfied they are with the job that they do.

Job Embeddedness Theory

Moot Points of the Theory

The extent to which people have links to other people, institutions or activities. The extent to which their job and community are similar to, or fit with the other aspects in their life space and. The ease with which links can be broken – individual perceptions about cost or sacrifice if they leave their job or community.

Employee turnover rates
Employee turnover is best defined as number of exits that create a vacancy, divided by the average total number of employees.

Employee

turnover

rate

=

(Number

of

Exit total

Employees)/(Average number of Employees)

Employee Turnover Rates - Voluntary by Industry (Sep/04 - Aug/05)

Employee Turnover Rates - Voluntary by Industry (Sep/05 - Aug/06)

Reasons for Turnover
    

Low salaries. Too much time in between tests. Career mobility issues. Takes too long to earn a promotion. Too much bureaucracy that prevents me from getting the job done.

 

The opportunity to work with new technology. The job or workplace was not as expected.

Cont….
  

There is a mismatch between job and person. Workers feel devalued and unrecognized. Workers suffer from stress due to overwork and work-life imbalance.

  

Ill-health or injury. Monotonous work. Unsociable hours of work.

Suggestions for Retention

Improving analysis of turnover data. Use of exit interviews. Develop and communicate an ‘employee value proposition’. Step up community-based activities in relevant labour markets. Offer employment security guarantees. Train intensively and broadly.

Cont…..

Increase organisational communication.

Emphasize teamwork and employee engagement.

Reward organisational performance.

Act to improve job design and working environment.

Thank You

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