Employee retention

From Wikipedia, the free encyclopedia Employee retention refers to the ability of an organization to retain its employees. Employee retention can be represented by a simple statistic (for example, a retention rate of 80% usually indicates that an organisation kept 80% of its employees in a given period). However, many consider employee retention as relating to the efforts by which employers attempt to retain employees in their workforce. In this sense, retention becomes the strategies rather than the outcome. In a Business setting, the goal of employers is usually to decrease employee turnover, thereby decreasing training costs, recruitment costs and loss of talent and organisational knowledge. By implementing lessons learned from key organizational behavior concepts employers can improve retention rates and decrease the associated costs of high turnover. However, this isn't always the case. Employers can seek "positive turnover" whereby they aim to maintain only those employees who they consider to be high performers.

Contents
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1 Retention Strategies 2 Retention and Motivation Theory 3 Herzberg's Theory 4 Equity Theory 5 See also 6 References 7 External links

[edit] Retention Strategies

In order to retain employees and reduce turnover managers must meet the goals of employees without losing sight of the organization's goals, thereby creating a "win-win" situation. Valance and expectancy theories provided some of the earlier guidance for retaining employees. Valence is the degree to which the rewards offered by an organization align with the needs employees seek to fulfill. High valence indicates that the needs of employees are aligned well with the rewards system an organization offers. Conversely, low valence is a poor alignment of needs with rewards and can lead to low job satisfaction and thereby increase turnover and decrease retention.

Expectancy theory details has several factors that can lead to high job satisfaction and high retention rates for organizations. Increasing expectancy in an organization can be done by training employees and thereby making them more confident in their abilities. Increasing instrumentality within an organization will be part of implementing an effective rewards system for attainment of specific goals and accomplishments.[1] However, while these theories may be valid they provide little practical assistant for business managers or human resource practitioners. More modern studies relating to employee engagement demonstrate that by developing a range of strategies that address various drivers of engagement, many positive outcomes can be achieved. These outcomes include higher profitability, improved customer satisfaction, lower absenteeism and lower accident rates as well as higher employee retention.

[edit] Retention and Motivation Theory

Retention has a direct and causal relationship with employee needs and motivation. Applying a motivation theory model, such as Maslows Hierarchy of Needs, is an effective way of identifying effective retention protocol.[2] Each of the five tiers of Maslows hierarchy of needs relates to optimal retention strategy. Since Maslows introduction of his motivation model, organizations have been employing strategies attempting to stimulate each of the five humanitarian needs described above to optimize retention rates. When applied to the organizational model, meeting the self-actualization and esteem needs of an employee tend to correlate to better retention. Physiological, safety, and social needs are important as well, however, and must be addressed to better the work environment. While implementing a retention strategy is ideal, successful satisfying all five needs of employees is not only difficult, but also expensive. That being said, managers who attempt to maximize employee need coverage tend to be more concerned with employee satisfaction.[3]

[edit] Herzberg's Theory

An alternative motivation theory to Maslows Hierarchy of Needs is the Motivator-Hygiene (Herzbergs) theory. The theories have overlap, but the fundamental nature of each model differs. While Maslows Hierarchy implies the addition or removal of the same need stimuli will enhance or detract from the employees satisfaction, Herzbergs findings indicate that factors garnering job satisfaction are separate from factors leading to poor job satisfaction and employee turnover. Herzbergs system of needs is segmented into motivators and hygiene factors. Like Maslows Hierarchy, motivators are often unexpected bonuses that foster the desire to excel. Hygiene factors include expected conditions that if missing will create dissatisfaction. Examples of hygiene factors include bathrooms, lighting, and the appropriate tools for a given job. Employers must utilize positive reinforcement methods while maintaining expected hygiene factors to maximize employee satisfaction and minimize retention.[4]

[edit] Equity Theory

Equity Theory realizes the humanitarian concern with fairness and equality. While one party may be given motivational rewards and opportunities, the individual will assess the work-reward ratio based on similar, external positions. If the individual feels the rewards and motivators do not meet the standard, the employee will either lose motivation, request more compensation, or leave their current position in search of more favorable benefits. Because of this, firms must not only recognize internal obligations, but also attempt to equalize or outperform competition in meeting employee needs.[5]

[edit] See also

Occupational health psychology

[edit] References
1. ^ Vroom, V.H. & Yago. A.G. (1978). On the validity of the Vroom-Yetton model. Journal of Applied Psychology, 63, 151-162 2. ^ http://en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs 3. ^ Spector, Paul E. "Measurement of Human Service Staff Satisfaction: Development of the Job Satisfaction Survey." American Journal of Community Psychology 13.6 (1985): 693-713. Web. 12 Mar. 2011. 4. ^ Breaugh, James A., and Mary Starke. "Research on Employee Recruitment: So Many Studies, So Many Remaining Questions." Journal of Management (2000): 305-434. Web. 12 Mar. 2011. 5. ^ Spector, Paul E. "Measurement of Human Service Staff Satisfaction: Development of the Job Satisfaction Survey." American Journal of Community Psychology 13.6 (1985): 693-713. Web. 12 Mar. 2011.

What is an Organization ?

A set up where individuals come together and work in unison to achieve a common goal is called as organization. Individuals working together in an organization to earn their bread and butter as well as make profits are called employees. Employees are the lifeline of an organization and contribute effectively to its successful running and profit making. An organization cant survive if the employees are not serious about it and are more concerned about their personal interests.
What is Employee Retention ?

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 joinee, make him a corporate ready material and bring him at par with the existing employees. The 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.
Why do Employees Leave ?

Research says that most of the employees leave an organization out of frustration and constant friction with their superiors or other team members. In some cases low salary, lack of growth prospects and motivation compel an employee to look for a change. The management must try its level best to retain those employees who are really important for the system and are known to be effective contributors. It is the responsibility of the line managers as well as the management to ensure that the employees are satisfied with their roles and responsibilities and the job is offering them a new challenge and learning every day. Let us understand the concept of employee retention with the help of an example: Misha was a talented employee who delivered her best and completed all her work within the desired time frame. Her work lacked errors and was always found to be innovative and thought provoking. She never interfered in anybody elses work and stayed away from unnecessary gossips and rumours. She avoided loitering around at the workplace, was serious about her work and no doubts her performance was always appreciable. Greg, her immediate boss never really liked Misha and considered her as his biggest threat at the workplace. He left no stone unturned to insult and demotivate Misha. Soon, Misha got fed up with Greg and decided to move on. Situation 1 - The HR did not make any efforts to retain Misha and accepted her resignation.

Situation 2 - The HR immediately intervened and discussed the several issues which prompted Misha to think for a change. They tried their level best to convince Misha and even appointed a new boss to make the things better for her. Situation 1 would most likely leave the organization in the lurch. It is not easy to find an employee who gels well with the system and understands the work. Hiring an employee, training him and making him fit to work in an organization incur huge costs and thus sincere efforts must be made to retain the employee. Every problem has a solution and the management must probe into the exact reasons of an employees displeasure. Employees sticking to an organization for a longer time tend to know the organization better and develop a feeling of attachment towards it. The employees who stay for a longer duration are familiar with the company policies, guidelines as well as rules and regulations and thus can contribute more effectively than individuals who come and go. Employee retention techniques go a long way in motivating the employees for them to enjoy their work and avoid changing jobs frequently.

our resource for creating a retention-rich organization culture that attracts, engages and builds lasting loyalty among todays most talented employees.
What sets Employee Retention Strategies apart is a steadfast philosophy that:

Uses only research-based, theory-supported approaches to improving employee engagement. Avoided are gimmicks such as employee of the month, suggestion boxes, prizes or other carrots. While commonly used, these short-term fixes fail to produce genuine employee loyalty (more than 60 years of research tells us so!). Employs an easy-to-understand systems approach to ensure the root causes of turnover are addressed and the potential for lasting change unleashed. Customizes all activities to your organizations unique history, current practices and strategic objectives. Also considered are challenges unique to your industry sector, competitive marketplace issues and talent shortages. Involves those responsible for implementing change in actually creating the change, ensuring input and improved shared understanding and support of all initiatives. Integrates hands-on, action-oriented approaches that enable organizations to move forward quickly and effectively Recognizes the research-proven role of no-cost strategies in developing the glue that builds employee loyalty and commitment.

Brings to your organization leading-edge organization-development best practices to effectively and quickly build a retention-rich culture.

The Employee Retention Strategies newsletter, which gained this website the No. 1 positions on Google and Yahoo during its publication in the early part of this decade, was a nationally noted source for research-based, fact-driven guidance on enhancing employee retention. (Back issues still are available). From that research come approaches built on a solid foundation of what works (and what doesnt) to gain the commitment of employees in all industries and economic sectors. Added to this base are leading-edge organization-development methodologies to bring your organizations strengths to the fore, to rekindle the dynamic potential of your company to meet todays challenges and to rebuild workforce commitment to the heart of your organizations mission. Spend time reading the topics on this site. Understand more about what truly contributes to employee engagement and retention. Then, call for an individual discussion of your organizations unique retention agenda.

Employee Retention
Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. Corporate is facing a lot of problems in employee retention these days. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. There is no dearth of opportunities for a talented person. There are many organizations which are looking for such employees. If a person is not satisfied by the job hes doing, he may switch over to some other more suitable job. In todays environment it becomes very important for organizations to retain their employees. The top organizations are on the top because they value their employees and they know how to keep them glued to the organization. Employees stay and leave organizations for some reasons. The reason may be personal or professional. These reasons should be understood by the employer and should be taken care of. The organizations are becoming aware of these reasons and adopting many strategies for employee retention. In this section we are going to study about various topics related to employee retention, why is it needed, basic practices, myths, etc. in detail.

Employee Retention, Employee Engagement & Talent Management Strategies

The issue of employee retention is once again becoming a major issue for many businesses. The talent shortage that plagued employers at the height of the economic boom has not vanished. It may be off the radar now, but it is returning strong as ever.

What are you doing to improve employee retention?

Successful organizations realize by having an effective employee retention plan will help them sustain their leadership and growth in the marketplace. Good organizations make employee retention a core element of their talent management strategy and organizational development process. Those that fail to make employee retention a priority are at risk of losing their top talented people to the competition. Chart Your Course International helps organizations design employee retention programs to recruit, manage, retain and engage the best workforce available by providing cutting-edge talent management strategies, hiring assessments, consulting, employee retention training and talent management programs. We help organizations design employee retention programs to reduce employee turnover and improve productivity. Greg Smith is a leading authority on employee retention and a former Examiner for the Malcolm Baldrige National Quality Award--America's highest award for organizational excellence.

FREE EMPLOYEE RETENTION COURSE!

Services Chart Your Course International Provides

For the past two decades, we have helped executives design employee retention strategies that provide a comprehensive road map for not only attracting and keeping talented employees, but for motivating and engaging them to achieve a higher level of performance. We are one of the

Sign Up for our Free 7-Day Employee Retention Course and also receive:

"Top Ten Reasons People Quit Their Jobs" Research paper on nursing shortage and what leading healthcare organizations are doing about it Job Satisfaction and Employee Retention Survey on what attracts, keeps, and motivates employees. (Both Healthcare and Business versions available.) Go here to sign up

few organizations providing a onestop service for your employee retention and talent management needs. BETTER MATCHING -- With our specialized employee selection assessments, we show you how to spot and develop people who "fit" with the job description, the company culture, and the supervisor or manager. We also provide retention tools and surveys to measure employee satisfaction and exit surveys. BETTER MANAGERS -- Our employee retention training programs help insure managers learn how to build teams, manage performance, develop individuals to their full potential, and help them achieve success on the job. Read our employee retention articles. BETTER INTEGRATION -- We can show you how to design effective employee orientation and onboarding programs to build enthusiastic employees that stay longer.

Additional information related to employee retention: Employee retention solutions Employee retention book Employee retention tips Employee retention workshop Employee retention strategy Job satisfaction survey Employee engagement program Employee retention resources Articles on employee retention

BETTER CONNECTIONS -- Our talent management programs help Join the Free Navigator Newsletter and receive access to measure employee and job satisfaction individual needs and hundreds of articles and SEVEN FREE REPORTS helps build productive relationships with their co-workers and supervisors. BETTER CULTURE -- We have discovered the eight critical drivers employees need and expect from their job that drive high employee retention. BETTER ACCOUNTABILITY FOR EMPLOYEE TURNOVER -- Our system makes it easy for HR and line management to capture critical information such as

retention plans, training needs, and job performance, and communicates this information to the entire management team for accountability. To help you become better at retaining your workforce, we are offering a free employee retention training course. You will receive many tips and ideas to help you with your retention efforts. Please click here for more information.

WHAT PEOPLE ARE SAYING

"Four hours of my time in your seminar has resulted in a 51% improvement of our revenues during the first quarter . . . Our teams work smart as well as hard and each member is having a lot more fun working together. You are the deal of the century!"
Dave Dibble Director of Marketing, Sunshine Companies

"As a result of your training we are now seeing measurable improvements in reduced turnover, increased sales, better customer service and improved communication and morale of all concerned."
David Doss President, Bates Ace Hardware

"Realizing that the talent crisis isnt likely to go away. . .Greg Smith provides a comprehensive road map for not only attracting and keeping talented employees, but for motivating them to achieve a higher level of performance. Chock full of practical ideas and real-world examples--a must-read for any leader who wants to create a high-

retention business that achieves results."

David Shadovitz Editor-in-Chief, Human Resource Executive magazine

Workshops & Seminars

TALENT MANAGEMENT AND EMPLOYEE RETENTION Here Today or Gone Tomorrow: Proven Ways to Attract, Retain and Motivate Your Workforce Employees are now deciding whether to stay or leave their employers. Recent surveys show upwards to 50% of the workforce plan on quitting as the economy improves. Successful organizations realize employee retention is critical to sustaining their leadership and growth in the marketplace. Those that fail to make employee retention a priority are at risk of losing their top talented people to the competition. In this program you will learn five key strategies that drive job satisfaction and employee engagement leading to high employee retention. This session is jam packed with tips, ideas and easy-to-implement advice. Learn how to: Reduce turnover and become an employer of choice Identify why people stay and why others leave Implement a 5-step process to create a work environment that attracts, keeps, and motivates your workforce Design goals and accountabilities for all leaders in the organization Use peer recognition programs to reward and build teamwork How to hire the right people for the right jobs Use incentives to get people to work harder and stay with you longer How to keep your top performers from leaving Design a powerful employee reward and recognition system Design career ladders giving people a sense of achievement Employer of Choice: How to Attract, Retain and Engage Top Talent Retention of excellent employees is one of the most important challenges confronting organizations today. Attracting, hiring and retaining high-caliber employees in today's labor market challenges organizations to manage talent at all levels. Research shows it costs $87,900 to replace a high talented person with three years of experience. In addition, it costs a whopping $678,000 in recruiting, training, and missed sales opportunities every time an experienced, talented person quit! This workshop will show

you what it takes to create an organization that attracts and keeps its top talent. You will learn the driving forces that drive job satisfaction and high retention. Identify your top talent The leaders role in talent retention How to ascertain what is really driving recruiting and retention within your organization How to design a development program that drives high retention Maximize new hire productivity by ensuring candidates are a good fit for the job Increase the retention of all new hires, and in particular reduce their turnover during their first year on the job Hire the Best, Forget the Rest! How to Hire Top People Each and Every Time The worst mistake employers make is hiring the WRONG people. Learn the skills, processes and the knowledge you need to identify and hire top performers each and every time -- those that will perform in the top 20%. Successful hiring doesn't start with a job posting and end when a candidate has been selected. Successful hiring is a structured process that begins with a clear, well defined definition of what capabilities a good candidate must have to be successful and it ends with ensuring the selected individual accepts the offer and joins the organization in a positive way. Define what you're looking for - the position description, job competencies, and questioning strategies. Planning the Interview Hiring strategy, sourcing, resume screening, the interview team, great reasons to work here Conducting the Interview An appropriate climate, conducting the interview, responding to challenging interviewee questions Making the Selection Decision-making guidelines, evaluating candidates, communicating with candidates, using hiring assessments Recruiting - Ideas in finding candidates in a tight labor market ORGANIZATIONAL DEVELOPMENT AND INNOVATION Creating the High Performance Organization: How the Best Organizations Achieve Success Your success depends on your ability to eliminate status quo, increase sales, build loyal customers and engage your workforce. This is a tough challenge whether you are a small company or a large corporation. This program is designed to provide the processes, strategies and tactics to help you design a plan to keep your organization heading in the right direction. Through the use of case studies, exercises and current teaching methods, you will learn how to make your place of business first choice among your employees and customers alike. Furthermore, we will help you create a roadmap of success by addressing other key drivers such as leadership, employee retention and employee involvement strategies, making the workforce part of the solution--not the problem. Recognize and communicate the key drivers for change and innovation

Determine customer needs and develop new and improved products and services Reduce resistance to change Create an organizational structure that facilitates change, growth, and productivity Learn important skills making you a better leader What Good Companies Do to Engage and Energize Their Workforce Every organization has the capability of achieving higher levels of performance. The winners of todays business economy must engage the creative abilities and manage the talent and potential of the entire workforce from the bottom to the top. Based on proven concepts, this step-by-step strategy will show people how to achieve measurable, bottom-line performance improvement results in a short period of time. You will learn how to design employee involvement and reward and recognition programs that harness the creative abilities and generate improved bottom line results. The end result will allow businesses to quickly enhance their performance and create a foundation of sustained improvement, change, retention and innovation. Identify and select breakthrough performance projects that improve financial performance Overcome resistance and barriers to change Harness the forces that create high performance Learn a step-by-step strategy that generates concrete and measurable bottomline results Obtain a high level of involvement from your workforce Create enthusiasm, make work fun, and improve job satisfaction Learn how to tap, capture, and transform ideas into valuable products and services LEADERSHIP PROGRAMS Transforming Workers to Winners: What Good Managers Must Do "Management is an 8 to 5 obligation, but leadership is a 24 hour-a-day responsibility." Studies show the personal actions of the leader is the most important factor in driving profits, retaining employees, and contributes to the overall success of the organization. This session will provide attendees with the five key strategies that drive performance and organizational success. You will learn how to reward, motivate, engage, make accountable and coach people toward higher performance. By building confidence in your abilities you will be able to handle leadership challenges and lead your people to sustained high performance. You will gain a comprehensive range of very practical and highly effective leadership tools and approaches that can be implemented immediately. Learn the five strategies good leaders take to drive performance Achieve measurable improvements in leadership performance Learn how to energize and engage your staff toward outstanding performance Generate ownership and responsibility for change

Acquire the skills and know-how to get the very best from every employee Make a real difference in the effectiveness and productivity of your team Leadership Video Clip CUSTOMER SERVICE Fast, Focused and Friendly: The Essentials of Great Customer Service Learn to create a system of exceptional customer service keeping you profitable and ahead of the competition. This session will help you, your staff and your business develop the right attitude and emotionally connect with your customers. This session provides dozens of tips and strategies that can be implemented immediately. Discover how to hire, manage and reward your employees so they act quickly, take responsibility and deliver a high level of service to your customers. Design a pattern of good service and break the cycle of bad service Deliver better, faster, service and increase customer satisfaction Learn how to gain repeat business and loyalty Increase your credibility with customersand your value to your organization Create incentive systems to reward and recognize front-line service employees Learn how to objectively measure service quality Establish customer service commandments Design a fail-safe system of customer service that keeps customers coming back Benefit from lessons learned from service industry leaders TEAMBUILDING Dynamic Teambuilding: How to Enhance Communication and Build Effective Teams Team members differ from each other in fundamental ways including their values, behaviors, talents, temperaments, wants and beliefs. Powerful communication skills and an understanding of the differences in the way people communicate are essential to effective relationships in the workplace. People will learn how to understand each other and resolve their differences. The seminar incorporates a behavior assessment to give a more complete understanding of yourself and others. You will become a more successful leader and make interactions with others more efficient and effective. This program will unlock some of the mysteries in dealing with people on and off the job. Learn and understand your communication style and the effect it has on others Recognize the eight common behavior patterns Discover an easy-to-use and foolproof tool for management development Improve your hiring, development and motivation of your team members Build productive communications and reduce conflict Learn effective ways of dealing with difficult people

Additional information related to employee retention: Employee retention solutions Employee retention book Employee retention tips Employee retention workshop Employee retention strategy Job satisfaction survey Employee engagement program Employee retention resources Articles on employee retention Free talent management and employee retention newsletter