EMPLOYEE RETENTION STRATEGIES

AUTHOR : Mr. A.PRABU ASIRVATHAM BE., MBA, Assistant Professor, SURYA Engineering o!!ege, Ero"e E#$ai! i": %ra&'()*g$ai!.+o$ O , AUTHOR: Mr.B.BALA HAN-AR, I MBA, SURYA Engineering o!!ege, Ero"e E#$ai! i": &a!a./.e%$*g$ai!.+o$

A&stra+t:
Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time. Employee retention is beneficial for the organization as well as the employee. As soon as the employees feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. A good employer should know how to attract and retain its employees. Employee retention involves five major aspects compensation, environment, growth,

relationship and support. !ompensation constitutes the largest part of the employee retention process. !ompensation includes salary and wages, bonuses, benefits, prere"uisites, stock options, bonuses, vacations, etc., Growth and development are the integral part of every individual#s career. $he important factors in employee growth are work profile, personal growth, training and development. Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees. $he relationship with the management and the employees plays an important role in employee retention. %rganizations should focus on managing the work environment to make better use of the available human assets.

0ULL PAPER 12at is E$%!o3ee Retention4

Employee retention refers to the various policies and practices which let the employees stick to an organization for a longer period of time. Every organization invests time and money to groom a new joiner, make him a corporate ready material and bring him at par with the existing employees. $he organization is completely at loss when the employees leave their job once they are fully trained. Employee retention takes into account the various measures taken so that an individual stays in an organization for the maximum period of time. Employee retention strategies are discussed as follows.

o$%ensation :
!ompensation constitutes the largest part of the employee retention process. $he employees always have high expectations regarding their compensation packages. !ompensation packages vary from industry to industry. &o an attractive compensation package plays a critical role in retaining the employees. !ompensation includes salary and wages, bonuses, benefits, prere"uisites, stock options, bonuses, vacations, etc. &alary and monthly wage is the biggest component of the compensation package. &alary and wages represent the level of skill and experience an individual has. $he components of the salary must be transparent and thoroughly discussed with the individuals at the time of joining to avoid confusions later. $he individuals should be made to join only when the salary as well as other terms and conditions are acceptable to them. $ime to time increase in the salaries and wages of employees should be done. And this increase should be based on the employee#s performance and his contribution to the organization. 'onuses are usually given to the employees at the end of the year or on a festival. (ealth insurance is a great benefit to the employees. It saves employees money as well as gives them a peace of mind that they have somebody to take care of them in bad times. It also shows the employee that the organization cares about the employee and its family. After retirement

includes payments that an Employee gets after he retires like E)* +Employee )rovident *und, etc.

Gro5t2 an" -e6e!o%$ent:

-rowth and development are the integral part of every individual#s career. $he work profile on which the employee is working should be in sync with his capabilities. $he profile should not be too low or too high. Employees should be trained and given chance to improve and enhance their skills. .eed for constant touch with the employees. trainings can be recognized from individual performance reviews, individual meetings, employee satisfaction surveys and by being in

S'%%ort:
/ack of support from management can sometimes serve as a reason for employee retention. &upervisor should support his subordinates in a way so that each one of them is a success. 0anagement should try to focus on its employees and support them not only in their difficult times at work but also through the times of personal crisis. 0anagement can support employees by providing them recognition and appreciation. Employers can also provide valuable feedback to employees and make them feel valued to the organization. $he feedback from supervisor helps the employee to feel more responsible, confident and empowered. $op management can also support its employees in their personal crisis by providing personal loans during emergencies, childcare services, employee assistance programs, counseling services, etc., Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees.

Re!ations2i%:
&ometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. $he management is sometimes not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships. $here are times when an employee starts feeling bitterness towards the management or peers. $his bitterness could be due to many reasons. $his decreases employee#s

interest and he becomes de motivated. It leads to less satisfaction and eventually attrition. A supportive work culture helps grow employee professionally and boosts employee satisfaction. An organization should hire managers who can make and maintain good relations with their subordinates. $he employee should know that the organization is there to support him at the time of need. An employee based culture may include decision making authority, availability of resources, open door policy, etc. $aking proper care of employees includes acknowledgement to the employee#s dreams and personal goals. !reate opportunities for their career growth by providing mentorship programs, certifications, educational courses, etc.

%rganizations should focus on managing the work environment to make better use of the available human assets.

En6iron$ent:
)eople want to work for an organization which provides appreciation for the work done, ample opportunities to grow, a friendly and cooperative environment , a feeling that the organization is second home to the employee. 1arious types of environment the employee needs in an organization are learning environment, support environment and work environment. /earning environment includes continuous learning and improvement of the individual, certifications and provision for higher studies, etc. &upport environment includes %r provision of support in the form of work life balance. 2ork environment includes efficient managers, supportive co workers, challenging work, involvement in decision making, clarity of work and responsibilities, and recognition. /ack or absence of such environment pushes employees to look for new opportunities. $he environment should be such that the employee feels connected to the organization in every respect.

Trans%arent 5or7 +'!t're:

A transparent work environment can serve as one of the primary triggers to facilitate accountability, trust, communication, responsibility, pride and so on. It is believed that

in a transparent work culture employees rigorously communicate with their peers and exchange ideas and thoughts before they are finally matured in to full blown concepts. It induces responsibility among employees and accountability towards other peers, which gradually builds up trust and pride. 0ore importantly, transparency in work environment discourages work politics which often hinders company goals as employees start to advance their personal objectives at the expense of development of the company as a single entity. Employees comprise the most vital assets of the company. In a work place where employees are not able to use their full potential and not heard and valued, they are likely to leave because of stress and frustration. In a transparent environment while employees get a sense of achievement and belongingness from a healthy work environment, the company is benefited with a stronger, reliable work force harboring bright new ideas for its growth.

8'a!it3 of 5or7 !ife:

$he success of any organization depends on how it attracts, recruits, motivates, and retains its workforce. %rganizations need to be more flexible so that they develop their talented workforce and gain their commitment. $hus, organizations are re"uired to retain employees by addressing their work life issues. $he elements that are relevant to an individual#s "uality of work life include the task, the physical work environment, social environment within the organization, administrative system and relationship between life on and off the job. $he basic objectives of a 32/ program are improved working conditions for the employee and increase organizational effectiveness.

o$$'ni+ation &et5een E$%!o3ee an" E$%!o3er:

!ommunication is the solution to almost everything in this world. &ame applies to employee retention also. &traight from the shoulder communication is what the employees need from their employers. Employees look for organizations where communication and process are transparent. .othing is hidden and shared with the employees. %rganizations should support open door policies so that the employees feel comfortable and are able to express their doubts and feeling to their employers. $here should be effective communication across the organization

and this communication should be two way. !ommunication alone can lead to unimaginable heights of employee retention.

Un"erstan" 523 e$%!o3ees !ea6e:

2hy employees leave often puzzles top management. Exit interviews are an ideal way of recording and analyzing the factors that have led employees to leave the organization. $hey allow an organization to understand the reasons for leaving and underlying issues. (owever employees never provide appropriate response to the asked "uestions. &o an impartial person should be appointed with whom the employees feel comfortable in expressing their opinions.

on+!'sion:
!ompanies have now realized the importance of retaining their "uality workforce. 4etaining "uality performers contributes to productivity of the organization and increases morale among employees. In a 'usiness setting, the goal of employers is usually to decrease employee turnover, thereby decreasing training costs, recruitment costs and loss of talent and organisational knowledge. 'y implementing lessons learned from key organizational behavior concepts employers can improve retention rates and decrease the associated costs of high turnover. In order to retain employees and reduce turnover, employers must meet the goals of employees without losing sight of the organization5s goals, thereby creating a 6win win6 situation.