Employee retention in

competitive environment

By: Supriya Khaneja

Love them or loose them

RECRUITMENT

Process of searching for prospective candidates &

encouraging them to apply for the job in an organisation

Positive function as it seeks to develop a pool of eligible

candidates from which most suitable ones can be selected

SOURCES OF RECRUITMENT
Internal Sources External Sources

Present Employees Campus Recruitment

Retired employees

Dependants

Placement agencies
Employment Exchange

Casual callers
Similar organisations
(Source: Ortega, 2006)

Advertisements

WHAT IS EMPLOYEE
RETENTION??

Ability of an organisation to retain its employees

Its a process in which employees are encouraged
to remain with the organisation for the maximum
period of time or until the completion of project.

WHY DO EMPLOYEES LEAVE ??

WHY DO EMPLOYEES LEAVE?

Low salary

Lack of teamwork

New job offer

Unfriendly environment

Lack of recognition
& appreciation
Reasons for quitting

Poor senior leadership

Limited career growth

Lack of trust &
support

Frustration

Lack of
motivation

Excessive workload

Source: Waschek, Esfeld & Werner, 2011

WHY RETENTION IS IMPORTANT?

Familiarity

Performance & productivity

Loss of company knowledge

Disruption of customer service

Turnover spirals into more turnover

Experience

Source: (Mitchell, Holtom, Lee, Sablynski & Erez, 2001)

EMPLOYEE RETENTION STRATEGIES

Hire right people in first place

Motivation

Good connection & Communication

Support

Level the workload

Better leadership

Employee engagement

Flexibility in job

Exit interview
(Source: Welch, 2008)

THE 3 RS OF EMPLOYEE RETENTION

Reward: Extra perks that a

company offers beyond the basic
wages for extra performance.
Respect: Providing information,
inviting suggestions &
encourage innovations.
Respect is foundation of keeping
your employees.
Recognition: Employees wants to
be recognised & appreciated for
their work.
Source: People &
Management, 2010

EXAMPLES OF RETENTION STRATEGIES USED BY

COMPANIES
Managing

top talent

Dabur: Sends executives to Indian school of Business

Samsung: Offers postings at the headquartes in Korea for six months to one
year.

IBM Business Services Cash Incentives.

HCL Tech BPO Services- Management diplomas and MBA Courses.

Failures:

KINGFISHERAIRLINESnon payment of wages for a long period, almost 40%

of its staff quit for other jobs between march 2012 andSeptember2012. Non
payment of salarieswas onlyreasonfor quits by Kingfisher airlines staff.

RESEARCH QUESTIONS ??

Most critical factor which determines employee

(talent) retention

Reward ?
Respect?
Recognition?

How that factor is co-related with retention ?

TAKE HOME MESSAGE

The Success or failure of an

organisation is determined by
its ability to keep its best
people

REFERENCES
Bhasin, R. (2000). Why good people leave. Pulp & Paper, 74(11), 31-31.
http://www.academia.edu/5086398/Literature_review_on_labour_turnov
er_and_retention_strategies

Mitchell, T., Holtom, B., Lee, T., Sablynski, C., & Erez, M. (2001). Why
people stay: Using job embeddedness to predict voluntary turnover. The
Academy of Management Jornal, 44(6), 1102-1121.
Ortega, D. (2006). Value-added employee programs can help
recruitment efforts. Managed Healthcare
Waschek, M., Esfeld, M. & Werner, R. (2011, March). Why employees
leave. Croplife, 174(3), 11. DOI: ProQuest
Welch, J. (2008). Why people leave. Leadership Excellence, 25(7), 20-20.
Retrieved
from http://search.proquest.com/docview/204618251?
accountid=4117