Employee Retention means a company or organization’s ability to retain or hold employees. It requires the right strategy. This means that the organization must make a plane and must frame an appropriate policy for their retention. An organization can only maintain its employees if he knew the reasons behind their move.
Employees both at a higher level such as the manager or at a lower level such as foremen, clerks help organizations to compete with other organizations. They offer their skills, abilities, language, speed, attitude, etc. that helps an organization in the execution of its strategy. Thus, an organization is not able to do anything without the support of employees, whether they are at a lower level or a higher level, it is necessary to hold them.
Why Employees Leave Organization?
• Pay Scale: The first and most important reason that encourages people to get out of an organization is money. Money is the main motivating factor. Everyone works to earn money and employees generally leave an organization if they get relatively higher elsewhere to pay or if they are not satisfied with their current salary.
• Absence of Motivation: Employees must be motivated over time whether monetary or non-monetary. Anyone needs to have the right spirit for the job. Motivation provides that spirit.
• Lack of managerial skills: managerial skills that are critical to restrain employees. Managers who do not have the right managerial skills are not able to hold their employees. It is not always necessary to behave strictly but some situations require politeness. A manager must hear the problems of employees and provide appropriate solutions.
• Better opportunities: In a competitive search the environment for new opportunities and when they get them they switch to a more suitable job.
• Lack of Interest: People sometimes lacking interest in their job or they get boring because of the monotonous routine or job is not the same as described by the employer during the interview.
• Less Growth Opportunities: Employees switching to another company when they think they do not have growth opportunities.
• Size of organization: In very large organization managers can not take care of all the employees and not able to communicate with each of them and listen to their problems.
So, there are a lot more personal or professional reasons that encourage people to switch to some other company. Such as a disgruntled employee from work but unable to continue due to some personal problems, the routine is not balanced, etc.
This is a very difficult task to retain employees but also very important because many organizations are looking for a knowledgeable person. The replacement cost of employees is usually three times the salary of an individual. It is better to retain them.
Why Employee Retention Important?
• Loss of Knowledge Organization: Employees take with them knowledge of the company’s projects, clients, training offered to them. An organization spent on training employees to expect good results in the future. So, if the employee leaves the organization, this is the loss of investment for the organization.
• Skilled Employees: Retention of skilled and knowledgeable employees ensure employees remain in the company and assist in the development of a strong staff that benefit the organization in the long term.
• Impact on Client service: Customers need a reliable and consistent service. Long-term employees develop a harmonious relationship with customer and employee retention has a good impact on the client.
An organization needs to meet its employees. Employee retention is critical for normal walking. But how can the employees hold? An organization should frame appropriate policies to retain them.
Strategies for Retaining Employees
• Offer Competitive Package: An organization can retain employees by giving them a competitive package. The Company is currently seeking talented employees. So, it is necessary and it is difficult for the employee must not hold for a longer period. But good salary scales can motivate employee retention in the company.
• Communication: Communication between the vertical and horizontal level is very important. It is very important to listen to the problems of employees and give them the right solution because employee satisfaction is very necessary.
• Delegation of Authority and Responsibility: In general, delegated responsibility but it is also important to delegate at least some authority to employees. This assistance in motivation and their employees will find it valuable.
• Employees Participate in Decision-making: The employee’s participation in important decisions the company not only boost their morale but also they can give you some very good suggestions that can help to companies.
• Provide Growth Opportunities and Development: An organization should offer training programs and development over time so that they can grow and thrive and feel satisfied in terms of growth.
• Feedback: Regular surveys should be conducted to determine the response of employees of the manager, the team leader, supervisor or other issues so that employees feel important and they survey can also help to determine the level of their satisfaction.
• Bonus: Timely bonus as a bonus based on performance, loyalty bonuses also help in improving employee retention and their morale in the organization.
• Positive Work Environment: Harmony in relationships and a positive work environment leads to employee satisfaction are important even than money.
• Ability Employees Trust: Trust in the ability of employees to boost their morale and help the organization to hold them for long periods.
There are many other employee retention strategies that a human resource department may choose to retain the employees that depend on the needs of employees. Some employees satisfy other financial and non-financial. So, in a competitive environment, it is difficult to hold them but not impossible.