NMIMS solved assignments December 2018: Contact us for answers at assignmentssolution@gmail.com

Employee retention has become a major concern for corporates in the current scenario. Individuals once being trained have a tendency to move to other organizations for better prospects. Lucrative salary, comfortable timings, better ambience, growth prospects are some of the factors which prompt an employee to look for a change. Whenever a talented employee expresses his willingness to move on, it is the responsibility of the management and the human resource team to intervene immediately and find out the exact reasons leading to the decision.

Need & Importance of Employee Retention

Let us understand why retaining a valuable employee is essential for an organization.

• Hiring is not an easy process: The HR Professional shortlists few individuals from a large pool of talent, conducts preliminary interviews and eventually forwards it to the respective line managers who further grill them to judge whether they are fit for the organization or not. Recruiting the right candidate is a time consuming process.
• An organization invests time and money in grooming an individual and make him ready to work and understand the corporate culture: A new joinee is completely raw and the management really has to work hard to train him for his overall development. It is a complete wastage of time and money when an individual leaves an organization all of a sudden. The HR has to start the recruitment process all over again for the same vacancy; a mere duplication of work. Finding a right employee for an organization is a tedious job and all efforts simply go waste when the employee leaves.
• When an individual resigns from his present organization, it is more likely that he would join the competitors: In such cases, employees tend to take all the strategies, policies from the current organization to the new one. Individuals take all the important data, information and statistics to their new organization and in some cases even leak the secrets of the previous organization. To avoid such cases, it is essential that the new joinee is made to sign a document which stops him from passing on any information even if he leaves the organization. Strict policy should be made which prevents the employees to join the competitors. This is an effective way to retain the employees.
• The employees working for a longer period of time are more familiar with the company’s policies, guidelines and thus they adjust better: They perform better than individuals who change jobs frequently. Employees who spend a considerable time in an organization know the organization in and out and thus are in a position to contribute effectively.
• Every individual needs time to adjust with others: One needs time to know his team members well, be friendly with them and eventually trust them. Organizations are always benefited when the employees are compatible with each other and discuss things among themselves to come out with something beneficial for all. When a new individual replaces an existing employee, adjustment problems crop up. Individuals find it really difficult to establish a comfort level with the other person. After striking a rapport with an existing employee, it is a challenge for the employees to adjust with someone new and most importantly trust him. It is a human tendency to compare a new joinee with the previous employees and always find faults in him.
• It has been observed that individuals sticking to an organization for a longer span are more loyal towards the management and the organization: They enjoy all kinds of benefits from the organization and as a result are more attached to it. They hardly badmouth their organization and always think in favour of the management. For them the organization comes first and all other things later.
• It is essential for the organization to retain the valuable employees showing potential: Every organization needs hardworking and talented employees who can really come out with something creative and different. No organization can survive if all the top performers quit. It is essential for the organization to retain those employees who really work hard and are indispensable for the system.

The management must understand the difference between a valuable employee and an employee who doesn’t contribute much to the organization. Sincere efforts must be made to encourage the employees so that they stay happy in the current organization and do not look for a change.

Key strategies

Good retention starts from the time you hire employees to the time they leave your company. See how tweaking some of your employment practices can have a big impact on employee retention:

• Recruitment and hiring. It’s worth spending time and effort on recruiting. When there’s a good match between employees and your organization, retention is less likely to be an issue.
• Orientation and onboarding. Again, it’s worth having good practices in place. Treating employees right in the critical early stages of employment has been proven to enhance retention.
• Training and development. Training and development are key factors in helping employees grow with your company and stay marketable in their field.
• Performance evaluation. When employees know what they’re doing well and where they need to improve, both they and your organization benefit.
• Pay and benefits. While today many employees tend to rate factors such as career development higher than pay, good pay and benefits still count.
• Internal communication. Effective communication can help ensure that employees to want to stay with your company. Employees need to know—and be reminded on a regular basis—how the organization is doing and what they can do to help.
• Termination and outplacement. Employees who leave on good terms are much more likely to recommend your company, and in doing so, help you attract and retain future employees.

Engage employees to increase retention

Engaging your employees—that is, making sure that they are committed and productive in their work—can benefit you as much as it benefits employees.

If you hire the right employees, chances are good they’ll be engaged—committed to your business and happy in their work. But to ensure ongoing engagement, you as an employer must play a major role, particularly when it comes to communication. Consider these five strategies:

• Be clear on what your business stands for. Your company’s mission and vision and brand must be front and center in everything you do.
• Communicate well and often. Your employees need to know—on a continuous basis—how both they and your company are doing.
• Understand generational differences. To get the best out of all your employees, know what motivates different generations.
• Find out what your employees need. Ask your employees on a regular basis how they’re doing, and be ready to follow up on their input.
• Empower all employees to do their best. Provide the leadership, resources, and training your employees need to realize their potential.

Understanding what engages employees can help during all phases of the employment cycle—from recruitment to training to performance assessment and beyond. It’s also much easier to retain employees who are engaged and committed to your company’s success