Workforce Retention

 

Employees are such an important asset to an organization that it is not only necessary to attract them, but also to keep them. The amount of time a person stays with an organization from the time they start working there until they leave is referred to as retention. Retention relates to an organization's ability to keep its top employees on board, according to Govaerts et al; 2011). Employee retention is the most important goal for the company since, while identifying good applicants is necessary, retention is more important than hiring because a substantial amount of money is spent on future employee orientation and training (Irshad & Afridi, 2007). Various start-up costs of replacing an employee, such as administrative expenditures and training, are also incurred by the company (Carsen, 2002; Wocke and Heymann, 2012). The whole process of recruitment and selection is a time consuming and lengthy process for an organisation. As a necessary consequence, it is essential to keep talented individuals not just because of the expenditures incurred by businesses, but also because of the desired value they provide to businesses. When it comes to attracting and retaining a talented staff, many HR professionals contemplate the possibilities and opportunities (Kaliprasad, 2006). Organizations go to significant lengths to acquire and maintain a small number of employees. Organizations are especially concerned about the costs of employee turnover, which are typically 2.5 times more than an individual's wage (Haider et al 2015). The company uses a variety of human resource (HR) methods to boost retention (Khan et al., 2014).

Source: (Khan et al., 2014)

Coworker relationships - According to Pitts et al. (2011), workplace stress induced by coworker relationships is one of the most likely causes for employees exiting their jobs. Employee satisfaction with their interactions with their coworkers is linked to employee retention. Relationship satisfaction with coworkers or colleagues has been highlighted as a retention factor (Pitts et al; 2011). Employees are more likely to stay in organizations where they have formed a strong teamwork relationship at work, according to a number of studies (Clarke, 2001); and employees are more likely to stay in organizations where they have established a strong collaboration relationship at work (Clarke, 2001; Marchington, 2000).  In relation to my job, I get to work with a different group of people everyday. Starting from the lower category right up to the manager. This makes my job less mundane and more enjoyable to get to know people with different backgrounds and personalities thus making the coworker relationship interesting. Researchers have discovered that leaders' and organizations' attitudes and expectations have a significant impact on workers' excitement and pleasure of their jobs (Lok & Crawford, 2004).

Job Satisfaction - Job satisfaction is defined as "people's attitudes and feelings regarding their work" (Armstrong, 2003, p. 239). If an organization's personnel are happy with their jobs, the organization will be able to achieve its objectives with relative ease. According to Bogdanova et al. (2008), HRM practices try to develop and allocate human capital mostly in best possible manner in order to ensure long term goals; they provide them with a variety of benefits and positive environments that will increase employee motivation, job satisfaction, and performance. Awang et al; (2010) as cited in ( Younas & Bari, 2020) investigated the impact of university professors' job satisfaction on their commitment to academic activities. It also looked into particular elements that contribute to job satisfaction, such as promotion chances, remuneration, working environment, workload, and coworker relationships. Factors such as promotions, working environment and remuneration play a major role in order to be satisfied with the job in my organisation. The above factors motivate employees to perform better in their job role thus making them want to stick to the organisation.

Compensation and perks - When it comes to retaining exceptional staff, compensation is crucial. Many organizations, according to Haider et al; (2015), proclaim and give remuneration that is above and beyond market rates. Security schemes, free education for children, special pay premiums and bonuses, a dwelling allowance, and a vehicle allowance are all examples of this. Most organisations in Sri Lanka offer vehicle allowances and medical schemes for the family members of employees. These are added benefits that maximize on retention strategies. The cornerstone of the employee-employer relationship is based on remuneration, which also serves as an indication of an employer's appreciation ( Roberts et al;1999). Many managers utilize performance compensation to encourage employee retention. Performance compensation rewards employees after they have been evaluated for their individual hard work and performance (Collins and Clark, 2003). Organizations can achieve employee retention by giving greater salaries to their employees (Lewis et al., 2001). Compensation/rewards, according to employees, help to improve an employee's loyalty and retention toward the organization (Haider et al;2015). In my organisation , performance appraisals are carried out yearly which decides the increment for

employees, which is given based on various factors such as leave and assessments carried out while on duty.

Workplace climate - a pleasant work atmosphere appears to be a key element in employee retention. HR strategies are believed critical in influencing the likelihood of employee retention by providing a favorable or hostile work environment. According to Hanif et al., (2013) the most important factor in employee retention is the working environment. A favorable workplace is defined as a flexible environment in which working is joyful and adequate resources are available ( Kossivi, Xu & Kalgora, 2016). The difference in work environments between manufacturing and service businesses is noteworthy since personnel in the service sector are directly associated with clients or consumers (Ushakov & Shatila, 2021). Depending on the nature of the company or profession, consumer interaction may increase or diminish accordingly. Being a part of the service industry and being frontline staff, interaction with coworkers and customers is inevitable. The work environment is flexible and having to interact with different customers from all parts of the work creates a joyful experience everyday.

Training and development - When training and development programs fulfill the needs of employees, they can boost retention (Montgomery, 2006) as cited in (Haider et al; 2015) When employees consider the material provided as valuable, appropriate, and desirable, it is possible to meet their needs through training programs. Training is a vital part of a successful retention strategy (Roberts and Outley, 2002). Employees that receive training are more likely to want to stay in the job for a greater duration of time as they’re more capable of handling situations with ease and less stress. Training not only helps employees perform better at their jobs, but also improves an individuals confidence as an individual. Professional training and career development programs should be an integral element of an organization's policy, and employers should encourage employees to take advantage of these opportunities. Barringer et al. (2005) did a comparison between fast-growing and slow-growing companies. Their research found that organizations with quick growth rely substantially on their employees' competencies. These staff work hard to ensure that the company's growth-oriented strategies are carried out. Growing businesses frequently use employee training programs to attain strategic goals. As a result, training and development programs for employees are fairly prevalent in developing businesses.

References

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