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Imran MBA Assignment

This document discusses employee retention, which refers to an organization's ability to retain its employees. It identifies several key factors that influence retention, including providing challenging work, rewarding performance, sharing business profits with employees, offering benefits, memberships, training and development opportunities, various types of leave, loans, and maintaining a good work-life balance. The conclusion emphasizes that employees are valuable assets and organizations must make strong efforts to retain them.

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96 views3 pages

Imran MBA Assignment

This document discusses employee retention, which refers to an organization's ability to retain its employees. It identifies several key factors that influence retention, including providing challenging work, rewarding performance, sharing business profits with employees, offering benefits, memberships, training and development opportunities, various types of leave, loans, and maintaining a good work-life balance. The conclusion emphasizes that employees are valuable assets and organizations must make strong efforts to retain them.

Uploaded by

James Franklin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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MANAGEMENT ARTICLE

EMPLOYEE RETENTION
a challenge to the organization

By
Muhammad Imran (Reg. No. 0666)
MBA Weekend – Spring 2013

BAHRIA UNIVERSITY KARACHI CAMPUS


Employee Retention – a challenge to the organization

Definition:

Employee retention refers to the ability of an organization to retain its employees.

Brief:
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 organizational 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. Retention is
often seen as a health check for any business. As strategic business contributors, HR professional must ensure
the adequate supply of people with the capabilities needed to fill organizational jobs. After hiring the best
people from the market, cream of the industry, next biggest challenge for the organization is to retain them in
the organization. At one side there is shortage of job in the market, whereas on the other side, skilled and
mature professionals, who have got rich experiences of repeatable organizations, are always looking for the
best opportunity. Such employees are never satisfied with only good salaries. There are other motivational
factors as well.
Factors that control Retention:

1. Challenging work
Employees always prefer job that offer them learning that helps in their professional growth.

2. Reward performance
To attract, retain and motivate high performers and to be fair to all employees, a company needs to reward
employees on the basis of their relative performance i.e. Spot Recognition Award (Certificate with cash or just
certificate). Performance Appraisal is good platform to judge employee performance and reward them as
upgrade their role.

3. Sharing business profit


Firms should be generous in sharing their profits with the employees. In addition to any motivational impact,
this offers the firm an opportunity to attract and retain good employees.

4. Employee Benefits
Benefits can also help management retain its employees. Benefits that are designed to increase in value over
time encourage employees to remain with their employer. For instance, manh companies make contributions
to employees’ retirement funds, but these funds are available only to employees who stay with the company
for a certain period of time. In addition to this 5 years, 10 years and so on ‘Long Service Award’ should be
awarded. Employees up to certain grades are awarded by company provided cars with fuel facility. Medical to
family and parents, graduity, Annual and Eid Bonuses are some other examples of employee benefits.
5. Memberships
Memberships to the professional bodies for the employees also let employees open the gates of learning.
Memberships to recreational clubs makes employees to enjoy the quality time their families.

6. Training and Development


If you refer to any motivational theory, personal development is always a high motivator. Looking for ways to
enhance the skills of employees is good for the business and the employee. Employees would be trained in
new skills after certain period of time or reaching a certain performance level. This gives employees a sense of
achievement and creates variety in his job. Provide online learning portals / Computer Based Courses also
helps employee to learn beside his daily routine work and sitting at his own workstation.

7. Leaves / Leaves encashment


There are some leaves as per labor law, but organizational must think to provide increase in standard number
of leaves to employees. i.e. Annual Leave, Casual Leave, Sick leave, Pregnancy/Paternity leave. For the
motivational purpose, organization should also give benefits in form of leave encashment to employees who
do not avail these leaves.

8. Loans
To fulfill personal desires of the employees, organization must provide employees with interest free loans. i.e.
Home loan, All purpose loan etc.

9. Work-Life Balance
Work-life balance is not easy to achieve. Organization must understand that employees have external
pressure as well and do all it can to help them. Creating a number of lifestyle schedule options that give
employees more choices. These schedule choice are often created by the employees through focus groups,
always bearing in mind that the business needs must be met. All employees are different and it would be
wrong to assume we know that everyone wants or needs, so providing options is a great way of providing a
suitable solution for all. Employee Assistance Program by some organization helps to resolve physiological
issues to employees and their family members. This helps employee to give full concentration to his job. 9/80
(employee who works for 9 days without leave including 8 hours per day, will get every alternate Friday off).
Indoor recreational activities i.e. Lunch, Café, Gym, Indoor games, Dinner for those who stay late at office.

Conclusion:
Employees are assets to the organization. Organizations need to put solid efforts and barriers to retain this
asset with the organization.

Reference:
http://en.wikipedia.org/wiki/Employee_retention
http://www.wisegeek.com/what-are-the-best-tips-for-attrition-management.htm
Book: Managing Human Resources (7th edition) by Luis R. Gomez-Mejia, David B. Balkin & Robert L. Cardy

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