Managing Employee Retention And Turnover Essay

2350 words - 9 pages

Managing Employee Retention and Turnover

Employee retention has always been an important focus for human resource managers. Once a company has invested time and money to recruit and train a good employee, it is in their own best interest to retain that employee, to further develop and motivate him so that he continues to provide value to the organization. But, employers must also recognize and tend to what is in the best interest of their employees, if they intend to keep them. When a company overlooks the needs of its employees and focuses only on the needs of the organization, turnover often results. Excessive turnover in an organization is a prime indicator that something is not right in the employee environment. We will look at the differences between retention and turnover, why employees stay, reasons why they leave, and what can be done to save them. We will also examine some external factors that will make employee retention and turnover reduction highest priorities for human resource professionals.

Basically, employee retention is measured by an employee's longevity with a company, and is the desired outcome of a company hiring workers it wants and needs. Many organizations find it more productive and profitable to redirect resources formerly allocated to recruiting, hiring, orienting, and training of new employees and use them instead toward employee retention programs. Such programs identify good performers who are likely to leave the company and work proactively to retain them. Although there is no tried-and-true prescription for retaining good employees, there are five factors that have a proven positive impact on retention and they should be taken into consideration when developing an employee retention program:

·     Supervisor/Employee relationship - "Immediate supervisors who are also leaders of people will be the most important people in the workplace of the future..." (Jamrog, 2004) Today's supervisor is expected to be a coach, a trainer, and a mentor. Foremost, he must be able to communicate well up and down the organization. Employees who have honest, open relationships with their supervisors feel a sense of commitment to them.

·      Employee engagement - The best employees are motivated by tasks that are intellectually stimulating and provide variety and challenge while contributing value. Studies from the Gallup organization show that employees who have an above-average attitude toward their work will generate 38 percent higher customer satisfaction scores, 22 percent higher productivity, and 27 percent higher profits for their companies.

·     Training - Employees want to increase their skills, knowledge, and abilities to remain marketable. It gives them a sense of job security. In today's workplace, the more training employees get, the more likely the employer will retain them. "According to a 1999 Emerging Workforce Study conducted by Interim Services and Louis Harris and Associates: Among employees who...

Find Another Essay On Managing Employee Retention and Turnover

Telecommuting, a Solution to Employee Morale and Retention Issues

1889 words - 8 pages about 12% may be caused by the stress of the long commute to the workplace. An area for Northrop Grumman to explore is the cost of high turnover of employees. There is the impact of training that must be provided for each new employee and when the retention of employees is not effective this cost can be quite dramatic. The continuous loss of employees (retention issues) is a large cost impact to any employer who is paying to sustain a solid

The Relationship Between Effective Learning and Career Development Programs and Employee Retention in Organizations

2441 words - 10 pages factors that affect turnover intentions in organizations. References Taylor ,S. (2002): “The Employee Retention Handbook”; Vol:1; Edition:1; page 114 Phillips, J.J., Connel ,A.O and Connel ,A.O (2003) : “Managing Employee Retention: Improving Human Performance” Edition:1 Rehm,B. (2008): “Learning and Employment Retention: What’s the Correlation” (itsinc.com – Integral Talent Systems) Kyndt, E, , Dochy, F., Michielsen, M. and

Employee benefits programs are crucial to the recruitment and retention of employees in any industry. Effective programs enable employees to better cope with the demands of home and the workplace.

3898 words - 16 pages Abstract Employee benefits programs are crucial to the recruitment and retention of employees in any industry. Effective programs enable employees to better cope with the demands of home and the workplace. These same policies can also contribute to lower employee turnover rates, retention of qualified employees, and motivation of workers. The computer industry has become the leader not only in technology and business, but also in the need for

"With reference to relevant literature, analyse the impact of managing diversity effectively and upholding individual employee rights in International hospitality and tourism organisations."

2209 words - 9 pages might suffer with poor performance, absenteeism and high employee turnover. Research has shown that there is an average employee turnover of forty three percent and there is a major skill shortage in the hospitality industry (HCIMA, 1999 as cited in Reading Pack 2002, Module 3173). But it is strongly argued by Groschl and Doherty (1999) that managing diversity can potentially alleviate the problems of shortage of skilled staff and high level of

The Impact of HR Practices on the Retention of Employees

1039 words - 4 pages , economic growth and employee turnover. It is hard to measure the exact cost for company associated with turnover. When an employee leaves, he takes with him valuable knowledge about the company, customers, current projects and past history (sometimes to competitors). Often much time and money has been spent on the employee in expectation of a future return. When the employee leaves, the investment is not realized (Importance Of Employee Retention

Reducing Turnover in The Restaurant Business

1680 words - 7 pages , and thereby attempt to increase employee retention. Restaurant operators that are faced with high employee turnover should focus on retention strategies that seek to offer equitable compensation and benefits, opportunities for growth and achievement, and work and family life integration. Given that manager turnover is positively related to crew turnover, it is an appropriate strategy to focus initial efforts at manager retention. However

Trends

1033 words - 4 pages Managing turnover in an organization can be an indispensable practice to any organization. The advantage employee retention has is a huge impact on an organization. Employee turnover can effect the organization performance wise and financially. Research has shown that organizations that have satisfied employees and low turnover tend to retain customers and perform better. Loyal employees lead to loyal customers which maintain the financial

The Impact of Human Resource Practices on the Retention of Employees

1057 words - 4 pages as the result of shortage of skilled labor, economic growth and employee turnover. Many of the companies are facing problems in retaining employees. Although it is hard to measure the exact cost of turnover because a current employee holds with him the knowledge about company, costumers and the past history so when he leaves the organization everything is gone with him, sometimes to competitors, so the exact loss cannot be realized but the

Human Resources Trends and Challenges

907 words - 4 pages ways with an employee. In this instance the role of the human resource department is to manage the dismissal of these employees and to do so while limiting liabilities. This is an important aspect of the human resources departments' role in managing turnover, but this is something that has happened in organizations for a long time and is a role that has not and will not change significantly. The major trend in managing turnover falls in the arena

Effects of Well Designed Compensation Plan

3190 words - 13 pages is a powerful instrument for attracting and retaining the best talent. The development of a flexible compensation and benefits plan has an impact on employee retention and recruiting activities. The goal is to design the compensation and benefits package to attract qualified and talented applicants, as well as retain the current employees that are important and bring value to the organization.Reducing Turnover with a Compensation StrategyHR

Impact Of Workplace Environment On Employee Retention

2262 words - 9 pages to stay within organization, leading towards influencing employee's retention. According to (Hong and Kaur, 2008), intention to leave and actual turnover are often highly correlated. For this reason, researchers for measuring turnover, have often used intent to leave as an alternative for turnover and intention to stay as that for measuring employee retention. In the literature of Human Resource Management, several authors have argued that

Similar Essays

Turnover Rate And Retention Essay

3590 words - 14 pages Formal Report of Employee Turnover Rates and RetentionM-1Global, Inc.Prepared for:Upper and Middle Management, All Departments and EmployeesPrepared by:Greg Dingas/Human Resource AssistantM-1 Global, Inc.August 24, 2014MEMOTO: Ann Bell, Human Resource ManagerFROM: Gregory Dingas, Human Resource AssistantSUBJECT: Report on Employee Turnover Rates and Retention DATE: August 24, 2014As you requested, I have examined and researched employee turnover

Employee Compensation And Turnover Essay

2640 words - 11 pages common practice, averaging approximately $3,500 and accounting for between six percent and fifteen percent of an employee?s base compensation" (Condodina & Ermel 1997). The most popular tools for reducing turnover are still cash-oriented, with the most popular being stock option plans, retention bonuses, gainsharing and performance pay, premium for employees logging long hours and salary adjustments/above market pay for key positions (Condodina

Absenteeism And Employee Turnover Essay

2190 words - 9 pages allowancesKeep a clear and updated policy in the employee handbookIdentify reasons for high absenceFollow persistent absence through to a disciplinary procedureEmployee TurnoverIntroductionOne of the problems facing the industry today is employee turnover. With unemployment rates reaching the lowest levels in recent history, recruitment and hiring employees is one of the biggest challenges facing the industry? Intelligent owners and management

Managing Labour Turnover And Equal Employment Opportunity

3872 words - 15 pages workers.Termination of employment (wrongful discharge)Retention and compensation (justifiable)Client service (Customer service focus)Managing complaints (internal & external)Organisational change (business strategy)To simply put it, an employer has legal obligations to an employee to act in a non-discriminatory manner by advertising a job correctly, selecting fairly, training equally, retrenching equally, dismissing fairly and providing all