Which Factors Affect Employee Retention?


 (Source: Robert Kneschke,2018)

Introduction

Employers should use a variety of employee retention strategies to ensure that their employees aren't looking for work elsewhere. It's critical to have programs and incentives in place to ensure the best employee experience, from flexibility to development (Holzer, et al., 2001). We'll look at important policy decisions staff retention elements that most modern managers overlook.

Work schedule flexibility

Today's workforce has a different perspective on "work" than previous generations. The clock-in/clock-out attitude is no longer in use. Employers must prepare for a new employee attribute known as individualism. Work-life balance is important to today's workforce. Work will continue to change as our approaches to it change. Although we do not believe that every company should need employment flexibility, we do believe that companies should be willing to consider it. Working from home is appealing to new parents and those who are dealing with family issues. And a job that allows them to be that flexible will help them stay.

Health and Wellness Benefits

Employers who make small expenditures on their employees' health, such as a health spending account or gym membership reimbursement, demonstrate that they care about their employees' well-being.

Inaction by employers on employee wellness has a significant impact on staff stress levels. Access to health care and stress management can have a negative impact on every area of a company.

 A worthwhile retention technique is to provide competitive health benefits, such as health, life, and retirement plans. Employee health and wellness are encouraged, which minimizes stress and allows employees to concentrate on their work.

Personal Development

If top employees aren't given more training or possibilities to advance, they may look for other options. To boost efficiency, a top salesman may want to use new customer relationship management software, which may require more training. You may reject his request and stick with your outdated CRM software, but he might go for a more forward-thinking organization willing to take chances and upgrade.

Have a clear personal development policy. Empower your team to improve in areas they want to grow. Provide extra funds for training, conferences, and books, and encourage employee feedback.

Work-Life Balance

In today's workplace, work-life balance is a hot topic. Employers can demonstrate to their employees that their personal lives are important in a variety of ways. Helping others above and beyond the call of duty keeps top performers in their employment.

Offer work flexibility as a starting point for constructing your staff retention strategy. Allowing staff to arrive at 2 p.m. and leave at 5 p.m. is not a smart idea. First, determine what is important to your staff. Some retention incentives include childcare, extra vacation days, discounted gym memberships, or public transportation passes.

(Source; Destinationone Consulting Group, 2021)


Conclusion

Employee retention and turnover affect everyone in the company, but especially the bottom line. Getting a handle on employee retention difficulties isn't simple, but it pays off in the long run. Checking in on your retention plan on a frequent basis to ensure you're doing everything you can to create fantastic working conditions and keep your staff happy and healthy is always a good idea.

 

References

Brown, P. et al., 2013. Factors influencing intentions to stay and retention of nurse managers: a systematic review. Journal of Nursing Management, pp. 23-26.

Destinationone Consulting Group, 2021. destinationon. [Online]
Available at: https://destinationone.ca/top-employee-retention-strategies-for-2021/

Holzer, H. J., Stoll, M. A. & Wisoker, D., 2001. Job performance and retention among welfare recipients. Washington, DC: The Urban Institute.

Robert Kneschke, 2018. smallbizdaily. [Online]
Available at: https://www.smallbizdaily.com/increase-employee-retention-rate-sustain-engagement/
[Accessed 19 08 2021].

Robert, R., 2007. Role of human resource management in staff retention. International Journal of Personnel Management, Issue May (2007) .

 

 

 

Comments

  1. Harsha MahalekamAugust 21, 2021 at 12:56 AM

    Employee job satisfaction and engagement factors are key ingredients of employee retention programs. The importance of addressing these factors is obvious, but actually doing so takes time and these tasks are often left for another day. However the payoff of focusing on employee retention in terms of increased performance, productivity, employee morale and quality of work, plus a reduction in both turnover and employee related problems is well worth the time and financial investment. Thanks for sharing.

    ReplyDelete
    Replies
    1. Praveen Joel FrancisAugust 23, 2021 at 10:45 PM

      Hi, Harsha. By adding additional points, you have provided excellent feedback. Thank you so much

      Delete
  2. Arun_Prakash_MBA_BlogAugust 21, 2021 at 6:22 AM

    Employee retention is an important aspect to every company as, it is costly in terms of time and money to find the suitable replacement of the company's best employees. Company's should focus on factors that influence employee retention like, monetary and non monetary. As per Hierarchy of Needs theory, once the basic need is satisfied the next become prominent, thereby once an employee accomplishes the recognition need self actualization becomes prominent. These factors need to me intact with its employees as motivating factors and ultimately retain them. Thank You.

    ReplyDelete
    Replies
    1. Praveen Joel FrancisAugust 23, 2021 at 10:47 PM

      Hi, Arun. By adding additional points, you have provided excellent feedback. Thank you so much

      Delete
  3. blogs of UMESHAugust 21, 2021 at 7:53 AM

    Good article Praveen.
    If I could more literature review,
    there are many reasons why an employee may resign voluntarily. Some may be personal and some may be influenced by organizational matters. Personal reasons such as family status, job growth and the provision of attractive jobs etc. Organization factors includes lack of promotional opportunities, unfair treatment among employees and mismatch between personal values and organizational values etc., (Terence et al., 2001).
    Overall turnover is a great problem for both organization and individual.so you have nicely gathered all information's nicely.

    ReplyDelete
    Replies
    1. Praveen Joel FrancisAugust 23, 2021 at 10:57 PM

      Hi, Umesh. by adding additional points and the theory is a timely explanation at the present. Thank you so much

      Delete
  4. Rukmali FernandoAugust 21, 2021 at 9:05 AM

    The growing global competition for ‘best’ workers brought about by a shortage of new entrants in the economies of many developed industries enables companies to ensure that workers will continue to work for them to maintain their competitive advantage. However, today growing number of employees do not want to stay in the same Organisation for a very long time as they seek for opportunities to grow. Therefore Organisations must rethink about their staff retention strategies.

    ReplyDelete
    Replies
    1. Praveen Joel FrancisAugust 23, 2021 at 11:25 PM

      Greatly explained Rukmali, Employers from various industries are on the hunt for top performers. As a result, it will have a direct impact on the turnover and productivity of those companies. As you mentioned, an increasing percentage of employees do not want to stay with the same company for a long period since they want to further their careers. because there is a lot of competition for promotions inside the organization Finally, they must consider other alternatives; this is a very common situation in Sri Lanka. Definiatley companies must find strong strategies to overcome staff retention.

      Delete
  5. D.Gangani BandaraAugust 21, 2021 at 12:09 PM

    There is a positive relationship between Employee satisfaction and employee retention. Retaining of talented workers assumes as an important part in this interaction, since workers with Knowledge and abilities are integral to organizations' capacity to be financially cutthroat. So the HRM must take necessary actions towards Employee Retention.

    ReplyDelete
    Replies
    1. Praveen Joel FrancisAugust 23, 2021 at 11:32 PM

      Hi Gangani, thank you for your valuable feedback. As I indicated in my earlier response, top achievers are an organization's greatest asset. As a result, businesses must develop effective strategies to prevent employee retention.

      Delete
  6. Fayaz SadiqueAugust 23, 2021 at 10:14 AM

    Thanks for the article Praveen, informative.
    Workers remain when they have positive relationships with their coworkers, according to the factors arising from retention strategies. Also, higher retention rates are achieved through encouraging team bonding events, project assignments that require collaboration with coworkers, and chances for engagement both on and off the workplace (Clarke, 2001; Johns et al., 2001)

    ReplyDelete
    Replies
    1. Praveen Joel FrancisAugust 23, 2021 at 10:41 PM

      Great definition given by Clarke, Jhons and others. thank you so much for relating with the aformentioned subject Fayaz.

      Delete
  7. Nadeeshan MadusankaAugust 23, 2021 at 11:09 AM

    Hiring and training are both costly and time-consuming processes. The most successful businesses keep their employees for as long as possible. Businesses can no longer afford to ignore the satisfaction of their employees. Many employers undervalue the importance of investing in their employees' personal happiness and well-being as a retention tactic. Some businesses fail to evaluate all of the factors that may influence employee retention.

    ReplyDelete
    Replies
    1. Praveen Joel FrancisAugust 23, 2021 at 10:36 PM

      “Employees turnover is costly to all level of organizations regardless of its nature and usually the productivity and quality of the products or services are always negatively affected” (Ali, 2009) so it will be important for companies to look after their, employees as assets.
      thank you Nadeeshan.

      Delete
  8. Nishantha_Mba2021August 23, 2021 at 9:50 PM

    From an employee's perspective, it is easy to conclude that employee turnover is a natural occurrence. Several factors contribute to an increase in attrition. Employee turnover is caused by both external and internal factors, according to research. In your opinion, you have covered almost every aspect of how this occurred.

    ReplyDelete
    Replies
    1. Praveen Joel FrancisAugust 23, 2021 at 10:32 PM

      Thank you Nishantha, greatly explained, thank you so much for your value addition to my article.

      Delete
  9. Sunith GeeganageAugust 24, 2021 at 8:25 AM

    Employee retention and employee turnover affect by many factors. In a way it affects to almost every corner of the organization such as strategic planning and budgeting. High amount of staff turnover will slow down the organization journey and moved it away from its objective and goals. Simply to achieve company objectives the bond between employer and employee must be a long term one.

    ReplyDelete
  10. Mihirani BalasooriyaAugust 25, 2021 at 8:17 PM

    Employee retention alludes to the different strategies and practices which let the employees adhere to an association for a more extended timeframe. Each association puts away time and cash to prep another joiner, make him a corporate prepared material and carry him at standard with the current employees. The association is totally confused when the employees give up positions work once they are completely prepared. Employee retention considers the different measures taken so an individual stays in an association for the greatest timeframe.

    ReplyDelete
  11. Nadun AbeywickramaAugust 26, 2021 at 10:56 AM

    Mix of the following approaches, you may see a better staff retention rate.
    • Enhanced career development opportunities.
    • Effective appraisals.
    • Solid diversity policies.
    • A good work/life balance.
    • A mechanism for employee to register dissatisfaction, whether it be appraisals, grievance proceeding and so on.
    • Leadership training for managers

    ReplyDelete
  12. Wathsala SiriwardhanaAugust 27, 2021 at 3:53 AM

    Valuable topic to discuss Praveen.Positive and motivated employees are assets to the organizations and they drive the organization through the success.Further it reduces employee turnover and increase positive impact of the organization's morale.There are so many strategies which can be used to retention existing employees as salary and other benefits, Hire the right person at the start,
    Provide opportunities to grow, Work life balance, invest in employee development, establish cut and clear policies and expectations etc...


    ReplyDelete
  13. M.JanarthanAugust 27, 2021 at 4:18 AM

    Effective employee retention can save an organization from productivity losses. High-retention workplaces tend to employ more engaged workers who, in turn, get more done. Engaged employees are more likely to improve customer relationships, and teams that have had time to coalesce also tend to be more productive.

    ReplyDelete
  14. Praveen Joel FrancisAugust 27, 2021 at 6:04 AM

    Thank you for your valuble comment Kanchana

    ReplyDelete
  15. Kaushani Senanayake - E122824August 27, 2021 at 10:36 AM

    Employee retention refers to the ability of an organization to retain its employees. Employee retention rates can be expressed using simple statistics. However, many believe that employee retention is related to the efforts made by employers to retain employees in their workforce. Here i mentioned another tips of effective employee retention.
    Onboarding and training.
    Flexibility.
    Financial insecurity.
    Work-life balance.
    Management.
    Recognition

    ReplyDelete
  16. Mohamed AmjadAugust 28, 2021 at 3:17 AM

    Employee retention is the key to success of an organization. Because only the satisfied employee will stay longer and who know about the history and the process of organization which avoids the overheads and wastages and leads to productivity and profitable. To ensure the employee retention and avoid the turnover, HRs should review the retention strategies frequently to fill the Gap.

    ReplyDelete

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