Principles and Practices of Human Resource Management in Global Contexts

 10.Employee Retention Strategies in Human Resource Management


10.01 Introduction to Employee Retention


According to (PeopleHum) website,The term "employee retention" refers to the organizational objective of retaining skilled workers and lowering attrition through the development of a favorable work environment that encourages participation, expressing gratitude to staff members, offering competitive compensation and benefits, and promoting a healthy work-life balance. When unemployment is low and there is more competition for talent, employers are especially interested in keeping their workforce.

Employee Turnover

The rate of hires and attrition of employees is employee turnover, and more simply, is inflow and outflow of employees (Effiong et al., 2017)

Causes of employee turnover

Personal reasons

work life balance

Incompatibility

work relationships

Lack of opportunity

Financial reasons


10.02 Importance of Employee Retention


The ability of companies to fulfill their mission can be harmed by high personnel turnover rates due to disruptions to continuity, loss of institutional knowledge, and expensive replacement costs. Reduced competitive advantage and decreased productivity are two of the largest costs resulting from employee departures.
‍

Resignations can also have a negative impact on morale and encourage other workers to leave. In order for cohesion and team building to flourish at work and for employees to learn to rely on and trust one another, staff retention is crucial.

https://www.peoplehum.com/glossary/employee


10.03 Employee Retention Strategies



Figure 1 :  Employee Retention Strategies

Offer competitive salaries
Let employees work from home
Provide flexible scheduling and Reduced workdays
Encourage and promote work life balance
Recognize and reward your employees for their work
Create a culture that employees want to be part of
Build employee engagement
Create an Emphasis on Teamwork
Reduce Employee  Burnout
Provide wellness offerings




Conclusion


Retaining employees is important for a company's stability, productivity, and long-term success in addition to cost savings. It's an investment that can have a big impact on productivity, creativity, and overall business success.

References

Crail, C. (2023) 15 Effective Employee Retention Strategies In 2024, Forbes Advisor.[Online] Available at: https://www.forbes.com/advisor/business/employee-retention-strategies/.[Accessed 13 April 2024]

What is Employee Retention | peopleHum (no date) peoplehum.[Online] Available at: https://www.peoplehum.com/glossary/employee-retention#:~:text=ThEmployee%20retention%20definition%20by%20some,employees%20for%20the%20long%20term%E2%80%9D.[Accessed 13 April 2024]

 

Yamamoto, H. (2011) “The relationship between employee benefit management and employee retention,” The International Journal of Human Resource Management. Informa UK Limited, 22(17), pp. 3550–3564. doi: 10.1080/09585192.2011.560871.[Accessed 13 April 2024]





Comments

  1. Shehan PriyashanthaApril 13, 2024 at 8:44 AM

    Employee retention is explained nicely

    ReplyDelete
  2. KeerthiwApril 14, 2024 at 5:24 AM

    Blogger has dived in to details of root causes to explain reasons for staff turn over well and best possible solutions which could enhance employee retention.

    ReplyDelete
  3. Dhanushka PathiranaApril 15, 2024 at 4:31 AM

    This blog post provides an informative overview of employee retention strategies in human resource management and highlights the critical role of HR managers in retaining top talent.

    ReplyDelete

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