Employee Retention towards the Organizational Performance

 

  

Introduction

In this volatile market, employee retention is most important thing for company to achieve the business goals. The creative employees are encouraged to stay in organizations, while employees who are weak performers with low productivity are encouraged to leave. Retaining a productive workforce is important for any organization because if the organization cannot retain its employees, it will not be able to exploit its human asset progress inside the organization (Gering and Conner, 2002).

All organization managers and stakeholders have to consider employee retention in their plans and estimate its long-term effect on the organization’s behavior and productivity (Mohanty, 2009). Employee retention is defined as the effort by an employer to keep desirable workers to meet business objectives (Frank, et al., 2004).

According to Paul and Anantharaman (2003) who  found  that  human  resource  management  practices  that  included    indicators  such  as  employee  productivity and employee retention, affected both organizational operational and financial performances

Importance of the employee retention

•  ·       Reduced Turnover Hassle.
• ·         Improved Morale.
• ·         Reduced Acquisition and Training Time.
• ·         Dedicated Company Experts.
• ·         Increased Overall Productivity.
• ·         Better Customer Experience.
• ·         Reduced Costs

Global context

Facebook Company has a unique way of ensuring employee retention. It conducts ‘check-point’ performance reviews on its employees every six months to see whether they should be assigned additional responsibilities and accompanying compensation packages for their good work (Dayanidhi, 2017).

 

According to the Recruiting Brief Blog (2021) employee retention strategies are

• ·         Provide more positive feedback
• ·         Give your employees an opportunity to grow
• ·         Encourage creativity
• ·         Foster respect in the workplace
• ·         Earn the trust of your employees
• ·         Workplace flexibility
• ·         Employee benefits
• ·         Career development
• ·         Good manager-employee relationship

 

In Sri Lankan context ABC Company is leading Telecommunication Company which engaging 7000 employees for in communication industry. The company has worked to improve the employee experience, such as changing old policies to keep up with the rapidly changing digital economy by introducing a “work from nearest office” pilot project.

Employees of ABC enjoy a broad range of benefits and welfare initiatives, including

• ·         Attractive EPF/ETF contributions
• ·         Attractive bonuses paid each year
• ·         Leave bonus for unutilized leave
• ·         Medical Center, and medical and insurance schemes
• ·         Fitness programmes including Zumba, yoga, karate, swimming, cycling, etc.
• ·         Sports activities and associations for cricket, football, netball, athletics, volleyball, table      
• ·         Financial support for higher education, 
  
• ·         Including MSc, MBA, and other postgraduate studies
• ·         Training programmes
• ·         Workmens’ compensation for disabilities/accidents during work

ABC’s employee turnover is extremely low at 5.9% in 2020. This is a strong affirmation of the Company’s value proposition and brand as an employer offering life-long careers.

Conclusion

Satisfied employees are the key driving force of the success of the organization and company management need to review the employee turnover and retention rate. Company believes that the satisfaction and well-being of our employees contributes to an engaging work environment that in turn reflects positively on the Group in the minds of our stakeholders.

 

References

Frank, F. D., Finnegan, R. P., & Taylor, C. R. (2004). The race for talent: Retaining and engaging workers in the 21st century.Human Resource Planning, 27(3).

Paul, A. K., & Anantharaman, R. N. (2003). Impact of people management practices on organizational performance: analysis of a causal model. The International Journal of Human Resource Management

Mohanty, S. (2009). Retention depicts the health of the organization. Cambodian Management Journal, 1(2), 1-6.

Gering, J., & Conner, J. (2002). A strategic approach to employee retention. Healthcare Financial Management, 56(11), 40-44..

Anon., n.d. Recruiting Brief. [Online]
Available at: https://www.recruitingbrief.com/facebook/retention/?open-article-id=6217546&article-title=employee-retention-strategies-you-can-start-today--part-1-&blog-domain=socialtalent.com&blog-title=social-talent
[Accessed 24 04 2021].

Dayanidhi, S., 2017. YOURSTORY. [Online]
Available at: https://yourstory.com/2017/04/employee-retention-famous-companies?utm_pageloadtype=scroll
[Accessed 20 04 2021].