Contents
Meaning of Employee Retention
Employee retention is the ability and the potential of an organization to retain its existing employees and prevent employee turnover. The responsibility of a Human Resource department in any organization goes beyond the recruitment process. It also entails designing and maintaining a suitable environment that entices its efficient employees to continue their presence in the organization. An organization invests in the training and development of its employees continually, and therefore wants to ensure that the benefits of such an investment are enjoyed by the company over a long time. This also protects against future costs of recruiting and training new employees.
In recent years, there has been an increase in the understanding that apart from a hefty remuneration, other equally important factors also determine the longevity of an employee’s service period in any particular organization. To combat employee turnover, the principles of various theories of motivation such as Maslow’s need hierarchy theory, Herzberg’s two-factor theory, and ERG theory, may be depended upon to gain a thorough understanding of the needs of an employee.
Methods of Employee Retention
Some of the methods that can strengthen employee retention capacity are mentioned below-
Effective Communication Channels
The most important method for successful employee retention is incorporating a proper flow of communication. Every employee must be made aware of the responsibilities and the details of their job profile at the time of recruitment. This reduces any scope of misunderstanding at later stages. After recruitment, a safe and honest route of feedback must be open to employees to voice out their suggestions and grievances. This eventually offers employees a genuine feeling of being valued by the organization and gives the company a chance at improving its organizational structure as per their feedback.
Monetary Incentives
A fair system of remuneration must be established with regular updates to it to eliminate a stagnant career path. In addition to that, other monetary perks such as bonuses, allowances, employee stock options, and reimbursements, would act as motivators for employees to prefer staying in their current organization. While non-monetary incentives also provide a sense of appreciation, financial perks must not be overlooked as a lack of them is a major driving force behind employee turnover.
Wellness Schemes
There has been a significant emphasis on the importance of the mental and physical health of an individual in recent years. This has led to the rise in the adoption of in-house mental health cells and healthcare packages within the corporate world. Prominent companies have even begun to offer maternity leaves, paternity leaves, and period leaves for their employees. When an organization supports the wellness of its employees, it breeds loyalty amongst them and gives rise to productivity.
Training and Certification Programmes
The growth of any organization depends on the abilities of its workforce. The more capable and efficient they are, the easier it is to meet organizational goals. Similarly, an employee gains confidence and self-worth along with prospective career growth opportunities when they are well-trained and proficient at their job. Regular workshops, industry training, certification courses, seminars, and conferences enhance the skills of an employee, thereby increasing their chances of staying at their current job.
Work Culture
An often-neglected element of an organizational structure is the informal or semi-formal environment of an employee. Numerous studies have inevitably concluded the positive effect that work relationships have on an individual’s productivity. A positive and supportive peer group at one’s workplace reduces stress and absenteeism. To cultivate such an environment, certain practices such as annual picnics, office trips, celebratory parties, and game nights may foster an amiable culture.
Effort Recognition
It is important to imbibe recognition and appreciation in the work environment. It shows the employee that their efforts are noticed and supported. It also improves employee engagement and reinforces the motivation to repeat similar patterns of productivity. Monthly awards, points-based rewards, certificates, bonuses, and felicitation programs are some examples of ways in which an employee can be rewarded.
Inclusive Diversity
A workplace where one’s individuality is accepted offers the opportunity to be a part of a larger community without suppressing their differences. It is highly imperative for any company now to be socially aware and promote equality in its conduct. Efforts must be made to curb discriminatory policies, encourage religious tolerance, conduct workshops on sexual harassment and promote the gender-neutral language.
Dynamic Job Profile
Irrespective of the perks and support system that may be in place, an employee may still be unsatisfied with their current conditions due to a monotonous job profile. It is, therefore, of utmost importance that the HRD team customizes the job profile in a manner that strikes a perfect balance between the challenges offered as well as the flexibility to tackle those challenges.