EMPLOYEE RETENTION & ITS BENEFITS FOR THE ORGANIZATION'S PERFORMANCE

 

INTRODUCTION

It should be noted that high turnover indicates that a company is losing a high percentage of employees compared to the number of employees already hired. It is also an indication of not making a proper job selection and creating an environment that helps employees stay with the organization for a longer period of time. However, a high turnover rate is undesirable for an organization for a number of reasons and affects an organization in many ways, leading to poor performance, low employee morale, low productivity and the major loss of revenue that comes from the drop in sales.

 

IMPORTANCE OF EMPLOYEE RETENTION IN THE OVERALL PERFORMANCE OF AN ORGANIZATION

The impact of employee retention on the performance of a company explains that employee retention has two different aspects, one is that when the employee feels retained in the company for a long time then he did not work properly and felt free from his duties, did not work and also involve other time wasting activities so employee retention is also a bad aspect and on the other hand employee retention is a good thing when an employee stays in the company and gets different benefits from the company and also got the bonuses, old age benefits from the company so the employee does everything for the company. Employee retention is important to building a productive, healthy and engaged workforce. Retention practices help reduce costs associated with recruiting, business productivity, or poor customer service. The objective of the Employee Retention Strategy is to increase the awareness, tools and information available to employers to help them retain their employees. Retention starts at the top. Sourcing, recruitment and the retention of motivated employees is the responsibility of the company's board of directors and

Management team. Obtaining and retaining good staff requires targeted, formal and informal policies and procedures that make retention a primary management outcome. Managers must value staff every day and constantly work to keep them on board The HR department alone cannot reduce turnover. For meaningful and positive change, business leaders must establish distinct retention processes and programs at all levels of an organization. After finding the good people, it is the primary role of management to take responsibility for the success of their employees, including directing people towards performance goals and targets. Employee retention has become one of the dominant themes in management studies over the past decade. The main contribution of this study is the examination of the determinants of employee retention in Pakistan. The results of our research show the relationship as well as the level of intensity of the determinants by which they have an impact on employee retention. Employee retention refers to the policies and practices companies use to prevent valuable employees from leaving their jobs. It involves taking steps to encourage employees to stay in the organization for the maximum period of time. Hiring competent people for the job is essential for an employer. But retention is even more important than hiring. This is true because many employers have underestimated the costs associated with key staff turnover (Ahlrichs, 2000). Turnover costs can be caused by issues such as reference checks, security clearance, temporary worker costs, relocation costs, formal training costs, and onboarding expenses (Kotzé and Roodt, 2005). Other invincible costs and hidden costs such as missed deadlines, loss of organizational knowledge, a drop in morale and a negative perception of the company's image by the customer can also take place. It is  why retaining top talent has become a major concern for many organizations today. Managers have to put in a lot of effort ensuring that employee turnover is always low, as they are becoming increasingly aware of this, Meaghan et al. (2002), employees are essential to the organization since their values ​​towards the organization are not easily reproduced. Many critical analyzes are carried out to minimize the possibility of a shortage of highly qualified employees who have specific knowledge to perform at high levels, because such an event will lead to unfavorable conditions for many organizations that do not have succeeded in retaining these high performers.

 

 

EMPLOYEE INVOLVEMENT - ONE OF THE IMPORTANT FACTORS OF RETENTION

Numerous studies have shown how high employee involvement can be linked to intention to leave an organization (Arthur 1994). Lack of opportunities to learn and grow in the workplace can be the key to employee dissatisfaction that leads to turnover. Other studies have also indicated that employees will stay with their organization if they have good relationships with the people they work with (Clarke 2001). Organizations are therefore suggested to provide team building opportunities, where interaction and discussion can be conducted not only during but outside of their working hours (Johns et al 2001). This is why today's managers must take care of their employees' personal feelings towards work and the levels of satisfaction with their working conditions, their superiors and their peers, as these are the keys to ensuring the employee retention. The success and survivability of organizations are highly dependent on customer evaluations (Jolliffe & Farnsworth, 2003, p. 312), according to which the organization should strive to satisfy its employees since the relationship between customer satisfaction and employee satisfaction is important. In summary, the literature defines retention on like continuous relationship between employees and their organization and rotation as “any permanent departure beyond organizational boundaries” (Cascio, 1995, p. 581). The benefits of retention save costs for subsequent recruitment, less training to be given to new candidates, improve productivity, increase employee performance and thereby increase profits and meet their organizational goals and objectives. Below, we will discuss the relationship between each of the human resource management practices with employee retention and turnover, which are the impacts of employee empowerment, employee training and development, evaluation of employee performance and compensation. argues that employee retention must be managed and identifies compensation, development, career opportunities, work environment, performance management and work, family and flextime as areas that have an effect on employee retention. Studies have identified a range of factors that influence employee retention. Gaiduk and Al (2009) observed that previous studies have found that employees' intentions to stay in an organization are influenced by three major groups of variables which are: personal characteristics of employees such as gender, age, job level ; the nature of a employee's current employment; and adequate working arrangements, including aspects such as the quality of current supervision, opportunities for promotion, available training and the quality of communication within the organisation. Established that young employees focus on compensation, training and development, career advancement, challenging work, growth opportunities and recognition. For the autonomy of older employees, opportunities for mentorship and professional challenges were of great importance. A study of 139 academics from the Jordanian University (Al-Omari et al, 2009) found that job satisfaction and organizational commitment had a significant positive effect on intention to stay among academic staff. A study by Daly et al (2006) on academic turnover intention in urban public universities, found that structural factors such as faculty work environment, autonomy, communication, distributive justice, and workload were related to the intention to stay. A study of academics from Makerere University (Amutuhaire, 2010) found that pay and seniority influenced their retention. Locally, Kipkebut (2010) in a study on organizational commitment and job satisfaction of employees in universities in Kenya established that role conflict, promotion opportunities, age were some of the factors that influenced employees' intention to leave the university.

 

CONCLUSION

When addressing the issue of employee retention, the first thing business leaders need to clarify within their organization is: why should they care? Like we saw, it has a lot to do with who you keep and why you should keep, as well as the costs and fallout if you don't this. The most effective companies at retaining people are those whose leaders understand that it is a business problem. In today's economy, knowing who to keep, how to effectively manage a layoff, and how to motivate survivors can be even more difficult. But together, the organization and the HR manager can ensure that they retain the right people to ensure the long-term success of the business.

 

 

 

 

 

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