Employees are considered as the most valuable assets for an organization or a firm because an organization is nothing more than a name without its employees. They don’t only represent an organization but also create its competitive advantage.
Employees, whether at a higher level like managers, or at a lower levels like clerks help an organization to achieve a good reputation and successfully stay on the market. They offer their skills, capabilities, language, speed, behavior, etc. which helps an organization in the execution of its strategies. So, it’s extremely crucial to have strong strategies and policies for workers’ retention.
However, a company can only retain its employees if it knows the reasons why they decide to leave the job.
Why Employees Leave Organization?
• Pay Scale: The first and the most important reason that encourages people to move out of an organization is the compensation for their work. Money is the main motivating factor, so employees generally leave an organization if they get comparatively higher pay somewhere else or if they are not satisfied with their current pay.
• Lack of Motivation: Motivation is a psychological factor that encourages employees to work for the achievement of desired goals. Employees should stay motivated at work, whether monetarily or non-monetarily. It is essential for anyone to have proper zeal to work.
• Lack of Managerial skills: Proper managerial skills is very important to retain employees. Managers who lack proper managerial skills are not able to retain their best employees. It is necessary for a manager to hear the problem of employees and provide an appropriate solution.
• Better Opportunity: In ѕuch a competitive environment everyone is constantly looking for new opportunities, and when they get them they switch ever to that more suitable job.
• Lack of Interest: People sometimes lack interest in their job or they get bored because of monotonous routine or job is not the same as described by the employer during the interview.
• Fewer Growth Opportunities: Employees switch over to other companies when they think they do not have any growth opportunities.
• Size of Organization: In very big organizations managers are unable to take care of all the employees and not able to communicate with each of them and listen to their problems.
So, there can be many more personal or professional reasons that encourage people to switch over to some other company. Like, employees are satisfied with the job but are unable to continue because of some personal issues, imbalanced routines, etc.
It is a very difficult task to retain employees but also very important because there are many organizations who are looking for knowledgeable people. The replacement of employees usually costs 3 times the salary of an individual. It is better to retain them.
Why Retention is Important?
• Cost of Turnover: The cost of turnover means tangible or intangible costs associated with the replacement of employees. The cost of turnover is quite high that includes the cost of hiring and training new employees, and intangible cost caused by the loss of productivity of knowledgeable employees.
• Loss of Organizational Knowledge: Employees take with them knowledge about the company’s projects, clients, training offered to them. An organization spends on the training of employees by expecting a good return in future. So, if employees leave the organization then this is a loss on investment for that organization.
• Skilled Employees: Retention of employees ensures skilled and knowledgeable employees remain in the company and help in the development of strong staff, which benefits an organization in the long run.
• Impact on Client service: Customers need reliable and consistent service vice. Long-term employees develop harmonic relationships with customers. That’s why the retention of employees has a good impact on clients.
It iѕ very importantly for an organization to retain its employees. In order to do that, an organization should frame proper policies and strategies.
Strategies to Retain Employees
• Offer Competitive Packages: An organization can retain its employees by providing them competitive packages. Companies nowadays are looking for talented employees and a good pay scale can motivate them to remain in the company.
• Communication: Cоmmunication between the vertical and horizontal levels is very important. It iѕ very important to listen to the problems of employees and to provide them with the proper solution.
• Delegate Authority and Responsibility: Generally, responsibilities are delegated but with that, it is also important to delegate at least some authority to employees. This definitely increases their motivation, and employees will feel valuable.
• Employee Participation in Deсision making: Employee’s participation in the company’s important decisions not only increases their morale, but also they can provide some very good suggestions that could be helpful for a company.
• Provide Opportunitу for Growth and Development: An Organization should offer training and development programs to employees so that they can grow and develop and feel satisfied in terms of growth.
• Feedback: Regular surveys should be conducted to know employees’ feedback regarding the manager, team leaders, supervisors or on other issues so that employees feel important and those surveys can also help to know their satisfaction level.
• Bonus: Timely bonuses like performance-based bonuses, loyalty bonuses are also helpful in increasing employee’s morale and their retention in the organization.
• Positive Work Environment: Harmony in a relationship and a positive work environment lead to employee satisfaction, which is even important than money.
• Trust Employees Ability: Truѕting employee’s ability can boost their morale and help organization retain them for a longer period of time.