Employee turnover is
one of the largest challenge or costs that an organization faces. The cost of
the training provided to employees, the knowledge given, the pay packages, the
time spent on them, cost of replacing the same and start everything from the beginning
and so on…
“Ernst & Young estimates it costs approximately
$120,000 to replace 10 professionals. According to research done by Sibson
& Company, to recoup the cost of losing just one employee a fast food
restaurant must sell 7,613combo meals at $2.50 each. Employee turnover costs
companies 30 to 50% of the annual salary of entry-level employees, 150% of
middle-level employees, and up to 400% for upper level, specialized employees”.
The income and the
profit is totally depends on the human resources of the organization. Therefore
retaining efficient and experts of an organization is something essential while
they focus on income and profit of the company.
What
is Employee Retention?
According to Huang
(2006), Employee-retention is generally ‘the intention of employees to stay
loyal to their current-workplace’. Bidisha
(2013) says it is when
employees are encouraged
to remain in the organization for a long-period or until
the ongoing-project is complete
Employee retention
defines as the Organization’s ability to keep their employees with them for a
longer period of time. Organizations use various policies and practices to
retain their employees by motivating and encouraging them to stay for the
sustainability of the organization, since they invest more on them.
The management can
control employees quitting their jobs to certain extent but they cannot put a
full stop to it. There are various
strategies used by organization to retain their employees. The ultimate purpose
of employee retention is to make both employee and the employer happy.
Employee retention
cannot be just dealt with numbers and reports, it has to be dealt by
understanding the employee in and out, listening to their concerns, solving
their problems etc… (We will have a look at the strategies of employee
retention in coming weeks)
References:
Huang, I.C., Lin, H.V., Chuang, C.H. (2006) Constructing factors related to worker retention. International Journal of Manpower. 27(5). p.491-508.
Bidisha, L. D., Mukulesh, B. (2013) Employee retention: A review of literature. Journal of
Business and Management. 14(1). p.8-16
This has been a hot debate for the past 2 decades. I believe that retaining staff is the most challenging impact that every organisation has. The need and wants of an employee, I would say greediness of a human being is not going to end, thus his or her mind will not be satisfied with anything. Simply NOT Enough.
ReplyDeleteBut Orgasation will or have to come to the point that, can they retain staff at any cost? or is it worth retaining them spending more cash or is it worth to develop and find new strategies to move on.
Good topic princy. AT WHAT COST ARE WE GOING TO RETAIN STAFF.
good reply bro, The word "NOT ENOUGH" is the greediness of human that will end up the human race. That's the reality of mankind
DeleteI agree that human nature plays a great part in the turnover, but i believe the turnover is mostly the doing of the organization rather than the employee. mainly Because i rarely see a government staff quitting his/her job. So think the organization should contribute more towards its employee.
DeleteWell said Sis.
ReplyDeleteEmployee retention is a critical issue as companies engage for talent in a tight economy. The costs of employee turnover are increasingly high - as much as 2.5 times an employee's salary depending on the role.
retaining employees is not an easy task, yet every business cannot afford keep hiring.
ReplyDeleteit is, therefor a company's responsibility to ensure they treat their employees well both to motivate and retain them for a long period.
I think this topic is a good HR issue topic. Because in my understanding the organization is there to make profit and the employee is expecting some reward as well. So it should be a win win for both parties.
ReplyDeleteWhen comparing private vs public organization, public employee have high level of job satisfaction and low turnover compared to the later (Mihajlov et al 2016). So with the above facts, we can conclude that the private organizations have been paying less attention to its Employees.
So when an employee quit his/her job, the organization should learn its short comings why the employee has left and prevent it from recurring. And turnover is mostly depend on the actions of the organization.
Mihajlov, S. and Mihajlov, N., 2016. Comparing public and private employees' job satisfaction and turnover intention. MEST Journal, 4(1), pp.75-86.
DeleteThis theme has always been highly relevant to the human resource market and the supply and demand of jobs.
ReplyDeleteFor example, in 2018, The global economy was in recession. The impact of it is that a large number of small and medium-sized enterprises were facing business difficulties and bankruptcy.Big multinationals have also stopped hiring new staff or even laying off workers.In October 2018, Tesla announced 9 percent job cuts, with about 4,000 employees; Meanwhile, Verizon, America's biggest telecoms operator, announced 44,000 job cuts.In November, Toshiba, a Japanese company, announced 7,000 job cuts (around 5%).China's biggest Internet companies have also announced varying levels of layoffs. In other words, when the HR market oversupply, employers take the initiative; When the market is tight, employees deserve better pay and benefits. Of course, employees who hold the core technology or resources are always invincible.Therefore, for employees, striving to be the top talent is the only thing need to be considered.
Good tropic. Management should much more concern about
ReplyDeletethe employee retention. If employee turnover is high it will impact on organisation reputation as well as increase of recruitment expenses.Also this will impact on organisation stability.
I believe we cannot match experienced staff with any other resources. They are the base of every organization. retaining them in long term will be more difficult in future with expanding industries. It is not only the salary and other benefits, employees need attention, challenges and objectives. Humans are always seeks new thing to explore. Hence, leaders and managers has lot of responsibility to keep their employee happy and exited. It is not just HR job. So I think this blog will help us to understand every aspects of employee retention in future.
ReplyDeleteEmployee relation is a hot topic for all organization’s in the world. Human capital management is the most deficult and sensible aspect of all organization hence human beings always struggle with their expectation and perceptions. Prncy this will be a timely topic open for debate and you gave a good start to analysis pros and cons in future
ReplyDeleteDisengaged employees already have one foot out the door. There are signs of disengaged employees that you can spot. They also tend to be less loyal towards their employers. When presented with the right opportunity, these actively disengaged employees will take lunch time or time off to attend job interviews and meet with recruiters.
ReplyDeleteThanks for providing such a great article, this article is very help full for me, a lot of thanks sir
ReplyDeleteManpower Providing Company
Employee Retention Strategies
Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic. كم راتب الطبيب
ReplyDelete