Employee Retention.

        December-05, 2021

       Asiri Liyanage








“One of the major issues faced by any organization is that the employees are roaming around the market seeking new opportunities. This phenomenon has given rise to various critical issues in terms of productivity, efficiency, and many more.   Labor retention management has a vital role to play in any organization since it involves full productivity, keeping them focused and reduction of many related costs. Recruitments, training, and orientation of employees require a lot of time and money, therefore it is critically important to reduce employee turnover and thereby improve the productivity, efficiency, and improvement of the smooth operation of the production activities” (SHRM, 2021).

Employee retention is closely linked with the job satisfaction of the employees. Job satisfaction of the employees leads to performance increase and therefore any employee retention program should address issues that adversely affect the job satisfaction of the employees. When the employees are happy and the employee-related issues are minimized in any organization, the quality of work and the employee morale are increased and it helps to reduce turnover.

“Among many recent studies carried out recently, the most important study is the one from Boston Consulting Group. According to the previous studies, the most critical factor in relation to the job satisfaction was the flexibility and the salary but this study revealed that the appreciation for their work is the top factor in terms of employee satisfaction” (Morgan, 2014).

The top 10 factors affecting employee satisfaction are listed below in the sequence of their importance according to the study mentioned above.

1.       “Appreciation for your work

2.       Good relationships with colleagues

3.       Good work-life balance

4.       Good relationships with superiors

5.       Company's financial stability

6.       Learning and career development

7.       Job security

8.       Attractive fixed salary

9.       Interesting job content

10.   Company values “(Morgan, 2014)

Job satisfaction is highly important since most of the employees spend most of their time in their workplaces. Therefore their happiness has to do a lot with their happiness at their workplaces. Job satisfaction can be simply referred to as the happiness of the employees. Accordingly, management of employees or any employee retention program must pay keen attention to keep the employees happy and satisfied.

Among many definitions, Job satisfaction can be defined as follows.

“In simple words, job satisfaction can be defined as the extent of positive feelings or attitudes that individuals have towards their jobs. When a person says that he has high job satisfaction, it means that he really likes his job, feels good about it, and values his job highly”(Venkatesh, 2021).

 

Sources of Job Satisfaction

         Figure 1: Diagram  (Venkatesh, 2021)

 

According to the above article from the cited web resource Job satisfaction comes from four different major resources.

With reference to the above diagram under the organizational factors salaries and wages, Promotion chances and Company Policies play a major role while under Work Environmental Factors supervision, workgroup and working conditions are listed. In terms of work itself, Job scope, variety, Autonomy and freedom, Role ambiguity and the state of being interested in the work have been identified. Age and Seniority, Tenure, and Personality fall under the Personal factors.

A careful study of all these factors and applying them appropriately in the employment management system of the organization might be helpful to the reduction of employee turnover and thereby reduce the various costs associated and create a happy, healthy, and productive environment for the organizations.

Bibliography

Myperfect Resume. (2021). 6 Common HR Manager Interview Questions & Answers. Retrieved 12 06, 2021, from Myperfect resume: https://www.myperfectresume.com/career-center/interviews/questions/6-common-questions-for-hr-manager

Morgan, J. (2014, 12 15). The Top 10 Factors For On-The-Job Employee Happiness. Retrieved 12, 05, 2021, from https://www.forbes.com/sites/jacobmorgan/2014/12/15/the-top-10-factors-for-on-the-job-employee-happiness/?sh=37930a845afa

SHRM. (2021). Managing for Employee Retention. Retrieved 12, 05, 2021, from SHRM: https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/managingforemployeeretention.aspx

Venkatesh. (2021). Factors Influencing Job Satisfaction. Retrieved 12, 05, 2021, from Yourarticlelibrary: https://www.yourarticlelibrary.com/hrm/jobs/factors-influencing-job-satisfaction-with-diagram/53312

Comments

  1. E127918December 16, 2021 at 10:46 AM

    Employee retention is the goal of a business to keep skilled people and reduce turnover by building a great work environment, showing appreciation for employees, and providing competitive compensation and benefits as well as a healthy work-life balance. During periods of low unemployment and increased competition for talent, employers are especially interested in retaining staff. Organizations use human resources technology for recruiting, onboarding, engaging, and recognizing employees, as well as offering more work flexibility and modern benefits such as physical and financial wellness programs, in order to retain staff. Thank you for giving this useful information.

    ReplyDelete
  2. Chularathna2021MBADecember 17, 2021 at 7:51 PM

    Employee retention is the goal of a business to keep skilled individuals and reduce turnover by establishing a positive work environment. This article attempts to present a good idea regarding employee retention thank you.

    ReplyDelete
  3. amila MBA HR blogsDecember 18, 2021 at 2:18 AM

    employee retention always effecting to the bottom line for the profit managing as well as need to evaluate and do the proper rewording process for the employee. thanks for the sharing

    ReplyDelete

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