Employee Retention Factors and Strategies

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Employees are a crucial resource in a company since they directly influence organizational goals and mission. The retention of workers is significant to creating and realizing the firm’s objectives, especially in designing a competitive advantage over its competitors in improved globalization (Fahim, 2018). The staff’s decision to resign from their corporation is hardly influenced by a single event, such as monetary, promotion, and plum assignment. Despite such factors acting as a catalyst to workers’ resignation, most of people usually leave because of various factors (Fahim, 2018). This paper explores employee retention as an organizational issue. It analyzes its business discussion through multiple factors, such as employee empowerment, training, and compensation, as three vital factors for successful worker retention.

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Staff renewal rate can be expensive to a business as a regular enterprise loses money for every administrative or regular worker that exits the firm. However, staff equality can develop a logic of ownership and appreciation concerning their existing corporation (Fahim, 2018). In the current competitive business environment, retaining a capable and competent staff is vital in every organization since a high turnover rate will damage the company’s image and reputation. Furthermore, workforce replacement is difficult and costly because the company will have to train its new workers if an experienced professional exits. Researchers have distinguished that low levels of empowerment, lack of job satisfaction, and inadequate support from the administrators have influenced turnover (Fahim, 2018). Therefore, human resource policies should focus on allowing the employees more self-governance to curb job burnout and turnover.

Human resource policies play a significant role in workforce retention through the stimulation of skilled labor. The objective-setting process where employees are significantly involved can improve staff empowerment since it will increase their knowledge in their areas of expertise (Fahim, 2018). Staff encouragement can develop a sense of responsibility amongst the workers to remain within the company. Therefore, the workforce will incline to remain in the firm despite encountering pressure from colleagues who plan to exit the corporation since they think like stakeholders.

Training is the development and acquisition of skills, attitudes, and knowledge needed by the workforce to perform tasks to improve productivity in the workplace environment. Relevant training that is effectively and efficiently designed and delivered will impart new capabilities and knowledge and meet employees’ and organizational desires (Rakhra, 2018). When the training outcomes are reflected by developments inappropriate skills, the staff’s task performance will significantly improve provided the knowledge learned in previous career development exercise is transferred to tasks (Rakhra, 2018). The improvement in enactments, such as service productivity and quality, are the training results that tasks are strategically aligned to a firm’s needs.

Human resource practices such as offering job security and drills are vital determinants of staff retention. Furthermore, research studies indicate that employee benefits and training HR functions are directly linked to staff preservation. An organization’s HR function should focus on regular workforce drills since they help define responsibilities more clearly to the workers, thus reducing job stress (Rakhra, 2018). Corporations should therefore create adequate training opportunities to enable them to retain their staff. However, training alone cannot address such issues as compensation which is also vital in preservation.

Compensation is characteristically cash given to individuals as reparation for suffering, damage, and injury or monetary value received by a worker from the company as a wage. It can be in the form of non-monetary remunerations such as healthcare insurance, retirement packages, and stipends that involved subsidized transportation (Arthur, 2018). Furthermore, for companies where tariff advantages and economies of measure of buying create a cost-effective environment beneficial for the organization to offer such essentials, the staff remunerations are regarded as implements for retaining and attracting the workforce (Arthur, 2018). Since the length of employment and staff position usually determine the salaries of workers in numerous corporations. Companies’ human resource functions should focus on adequately compensating workers depending on their delivery of tasks, productivity, and the length of their employment contracts (Arthur, 2018). However, monetary compensation satisfaction plays a significant role in staff preservation since non-financial benefit usually leads to employee turnover plans.

Currently, there are inter-personal differences in understanding the importance of financial compensations for employee preservation. Therefore, the HR administrators should formulate strategies that will enable both the newly recruited and the senior staff both get rewards for their performance in the form of salaries. For instance, they should introduce employee benefits such as comprehensive medical insurance, retirement packages, and the offering of company shares to employees (Arthur, 2018). Therefore, companies should introduce reward systems that will improve staff performance and desire to remain employed within the corporation. Thus, the management should ensure that workers are compensated accordingly and benefits offered to them are improved.

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In conclusion, the paper has concluded that employee preservation is influenced by staff empowerment, training and career development, and compensation. The existence of opportunities for career development, well-defined objectives, and work descriptions also contribute to employee retention in organizations. Therefore, employee retention is a business issue requiring further research to determine its advantages and disadvantages properly. Further research will help inform the formulation of effective strategies to deal with the negative impacts of staff preservation factors.

References

Arthur, D. (2018). Recruiting, interviewing, selecting & orienting new employees. AMACOM Div American Mgmt Assn.

Fahim, M. G. A. (2018). Strategic human resource management and public employee retention. Review of Economics and Political Science. Web.

Rakhra, H. K. (2018). Study on factors influencing employee retention in companies. International Journal of Public Sector Performance Management, 4(1), 57–79. Web.

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BusinessEssay. 2022. "Employee Retention Factors and Strategies." June 30, 2022. https://business-essay.com/employee-retention-factors-and-strategies/.

1. BusinessEssay. "Employee Retention Factors and Strategies." June 30, 2022. https://business-essay.com/employee-retention-factors-and-strategies/.


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BusinessEssay. "Employee Retention Factors and Strategies." June 30, 2022. https://business-essay.com/employee-retention-factors-and-strategies/.