Employee Retention : Human Resource Management

Executive Summary…….3 W hy Employee Retention and Motivation Is Important…….5 Turbulence In The Work Environment…….5 At The Root Of The Problem—Demographics…….6 Retention As A Strategic Business Issue…….6 Calculating The Cost Of Attrition…….8 Why Employees Become Disengaged and Leave…….9 The Phenomena Of Intrinsic Motivation…….13 Turnover Is Not A

The reality in today’s work place is that employees are more inclined to always be on the lookout for a new and better employment opportunity if they feel that the company does not value them as an employee. In order for our company to get a better understanding on what will better control the turnover rate and what program will be the most effective. There first must be an understanding at what level of risk we currently are in, and this is accomplished by looking at two determining factors of impact and likelihood. (De Vore, 2013)

In these changing times both the employee & employer are under tremendous pressure to perform. There is fierce competition not only in the industry but also across categories. This new liberalized cutting edge technology driven environment has made employee retention mind-boggling. The fast pacing change across the globe has made the new employee & employer relationship irreversible. However all corporations not only in IT sector but also traditional manufacturing sector are attempting to stem attrition. This paper attempts to unravel this paradox & study the various facets that surround this burning issue i.e.

Retaining employees is one way the turnover rate can decrease, Branham (2000), focuses on retaining valuable employees by incorporating four key elements. The first key elements is, “be a company that people want to work for”. There are many companies that have been labeled as, “employers of choice”. These employers all have something in common, which is how they value their employers (Branham, 2000). They treat their employees with respect and like family. With being an “employer of choice,” people are the most valuable asset; not just customers but employees too. Many companies go above and beyond for their customers, but not for their employees, yet they wonder why they are losing valuable talent.

In this paper Team C has discussed the issue of poor employee retention concluding in a high employee turnover rate. This is an issue that can be common among some companies and that is a great example of

There are two types of turnover, voluntary turnover happens when the employee makes the decision to leave and involuntary turnover is when employees has no choice in their termination (Schmitz, 2012). Every month or sooner managers experience some of their exceedingly qualified employees leave the company. After realizing that their company is becoming less profitable is when they begin to wonder why and brainstorm on ways to retain them. In Information Technology, “the cost of recruiting new staff is high and the loss of continuity when staff leave can also be very expensive” (Bott, 2005, p. 111). In IT, human resources strive to maintain their highly skilled employees while employees’

Nevertheless, these methods cannot predict employees’ turnover. Morrell et al. (2001) discuss about two key concepts: voluntary and involuntary turnover. Voluntary turnover relates to the employee’s decision to leave such as illness or personal reasons. While, involuntary turnover relates to company related problems such as the need to cut costs or to downsize. Even if organisations develop means to identify the characteristics that influence turnover, neither of these two types can be successfully foreseen during the recruitment process. As a result, employers need to secure long term employment since a labour turnover will have a high cost both in terms of recruitment and selection and in terms of training sessions meant to enhance the employees’ soft skills. (Beardwell and Claydon, 2010).

Employee retention is a critical issue for all organizations and the increasingly competitive labor market will make hiring qualified candidates even more difficult in the future. Employee retention is an important step in building a successful ambulatory surgical center business (Regentsurgicalhealth, 2015). According to Medical Group Management Association (MGMA) twenty percent of receptionist and medical records staff and fifteen percent of nursing staff turn over each year. This turnover affects healthcare organizations in many different ways including customer satisfaction, quality of service, workplace productivity, employee morale, workflow efficiency and the organizations finances. Organizations that invest in their human capital and

Employee turnover is a major expenditure for businesses so having a plan in place is critical to mitigate the problem. According to recent statistics, for entry-level employees, it costs between 30-50 percent of their annual salary to replace them. Employees often leave new jobs because they do not feel equipped to do well. In fact BambooHR’s recent study explains that 56 percent of new hires are looking to have a mentor during their onboarding stage. Not only are employers lowering turnover with new hires, they are investing in their organization as a

With the Baby Boomers about to retire, the employment philosophy for Gen X and Gen Y is changing as well. It is now fairly common for today’s labor force to change jobs every couple of years, rather than maintain longevity with one company. Turnover costs for many corporations are costly and can drastically affect the financial functioning of an organization. An organization that is successful in reducing their labor costs will be able to enjoy a better profit margin. Strategic planning must be implemented to assess the cost of turnover, build retention strategies, and strategize for anticipated and unforeseen turnover and a shifting labor force culture.

As employee turnover increase, it is the role of the HR manager to keep that from happening, by being more engaged with employers, Richard P. Finnegan introduced this in his book ‘The Rethinking Retention in Good Times and Bad, Breakthrough Ideas for Keeping Your Best Workers’. Mr. Finnegan spoke of the ten principles he believe will decrease the employee turnover, in addition to improving HR and employer’s relationship, he conducted research through surveys, and through experience.

Management can improve culture within an organization and increase employee retention is by implementing strategies that benefit employees. This can be done by having flexible workplace policies. Some ways that will increase employee retention and employee loyalty is by increased sick day approvals, longer paid vacation days, as well as increasing wages and benefits (Boushey and Glynn, 2012)). Furthermore, management can implement strategies to encourage friendly competition within an organization by giving employees incentives and rewards. An example of a company that understands the importance of employee satisfaction is Costco. According to Costco’s CEO when gas prices were high, the organization made the initiative to help employees. For

As requested, I am submitting the attached report titled Addressing High Employee Turnover Rates: A recommendation. This report outlines my examination of existing data concerning employee turnover rates and remedies to help retain high quality employees.

It has been evident that organizations face challenges of maintaining employees within their firms, and the challenge has been in place for a considerable period. Turnover in firms has been associated with different costs that include the process of training new employees, training of the same employees and their selection which has been seen to seen to exceed 100% of the total cost on an annual basis which is usually witnessed in filling the existing position. The quit rate in the United States as indicated by Bureau of Labor Statistics is at 25% (Glebbeek & Bax, 2004). The significant issues that are associated with turnover include work disruptions, direct costs, loss of seasoned mentors and organizational memory. The other concerns that

Workforce turnover is a complex and important issue amongst today's organisations. It is perhaps one of the most often cited cause of increased cost and decreased productivity. No wonder people management has become an important frontier to extract and create more value from company assets. On comprehending the articles, it has become evident that organisations have moved beyond the traditional approach of only investing in core business activities, to invest in employee retention strategies. Many organisations, for example St. George Bank