In the current scenario a major challenge for an organization is to retain its efficient and experts, the management can control the problems to a certain extent but cannot put a full stop to it.
Fitz-enz (1990) [19] recognized that employee retention is not influenced by a single factor, but there are many factors which are responsible for retaining employees in an organization. Management need to pay attention to factors such as compensation & rewards, job security, training & developments, supervisor support culture, work environment and organization justice etc.
Lets look at one by one the factors affecting employee retention.
MONITORY
DISSATISFACTION
In
this changing contemporary world money is everything, there are many
competitors waiting in the market to grab the efficient and experts of another
organization, every organizations tries their level best to provide all the benefits
to their efficient and experts to retain
them but there are so many opportunities available for the skilled as well as
talented employees that it is becoming very tough as well as difficult for the
employers to satisfy and retain them.
Monitory
benefit is the most critical factor effects retaining efficient employees of an
organization. Gardner et al., (2004) [30] were of the view that pay is
considered as a motivator as well as employee retention technique, Milkovich
and Newman (2004) [31] have clearly stated that among all types of reward,
monetary pay is considered one of the most important and significant factor in
retention.
When
employees are motivated and perform on the other hand, they expect to be
treated well by the organization specially through monitory benefits. But Every organization has a salary
budget for every employee which can be raised to some extent but not beyond a
certain limit. Retention becomes a problem when an employee performs well and
expect an exceptionally high figure beyond the budget of the organization and
is just not willing to compromise.
The salaries of the individuals working at the
same level should be more or less similar to avoid major disputes amongst
employees, therefore meeting a talented employee’s expectation in term of
monitory benefit sometime may be a challenge that the organization face, they
will not be able to match with their competitors, which will lead to employee
turnover.
References;
Fitz-enz, J. (1990).Getting and keeping good employees. In personnel. 67(8): 25-29.
Gardner
DG, Van Dyne L, Pierce JL (2004). The effects of pay level on
organization-based self-esteem and performance: a field study. Journal of
Occup. Organ. Psychology., 77(3): 307-322.
Milkovich
GM, Newman JM (2004). Compensation (8th ed.). Burr Ridge, IL: Irwin
McGraw-Hill.
There is another important thing, to protect the privacy of each employee's salary and benefits.
ReplyDeleteAs you said, the salary budget of every organization is limited, and all organizations have a centralized budget to pay their core employees. However, other employees will not understand same. Most people are overconfident in their work. Jealousy and a sense of injustice are important factors for lossing unity in an organization. Those employees who are not core talents also need to keep and maintain a happy working spirit. Therefore, protect the privacy of every employee's salary and benefits, and try to control the communication within employees about salary.
Yes, i totally agree with you tony..
DeleteAccording to the Herzberg's two factor theory, employees are motivated on 2 factors.
ReplyDelete*hygiene factors
*Motivating factors
monitory dissatisfaction could be considered as hygiene factor.poor hygiene factors decreases employee job satisfaction.
This comment has been removed by the author.
ReplyDeleteGood topic to discuss about. When you ask employees if monitory benefits are effective in increasing productivity, many will say "Yes". Most of them are motivated by monitory benefits.
ReplyDeleteMonitory dissatisfaction - this topic is very contradicting to arugue. Since the greediness of the human will never stop. Thus trying to satisfying this will be a war between employee and employer
ReplyDeleteTimely topic in different scope. Monitor dissatisfaction is impact on organization and employees several ways. In my point with single example HR data specially about salary and benefits for employees highly confidential hence private companies packages not always fix for employees in same grade as in government sector. Some times companies need to hunt competitors efficient staff members for higher packages but in mean time company has same category staff with higher academic qualification and experience than new employee but in average packages. In this kind of points employee packages will publish among others will factor for existing staff appointment on company and might be a factor for increase the employ turnover also
ReplyDelete