Most employees leave their jobs when two circumstances apply. The first is the unhappiness employees feel about their work, colleagues, managers or the organisation. The second is the availability of other jobs that the employees believe will bring them greater satisfaction. Employers who disregard these issues of unhappiness and job satisfaction risk high employee turnover. Such turnover can disrupt business processes, reduce productivity and decrease profits. To avoid such a situation, employers can use various methods of employee retention.
If employees feel valued by their managers, they are less likely to leave a job. Managers therefore need to provide positive support (See References 3, page 89). Ways of showing this support include listening to employees and encouraging them to submit ideas to improve business processes (See References 4, page 143).
Training and development
Many employees want to learn new skills in a job and perform their duties to the best of their abilities. If they are able to achieve these goals, employees gain a greater sense of job satisfaction. This assists employee retention. Employers should therefore provide training and development programmes for employees. A further benefit of such programmes is that employee efficiency and productivity improves.
Formal promotion and selection procedures
Employees may feel demoralised and decide to leave if they believe employers are showing bias when selecting people for other posts or for promotion. A formal, unbiased method of selection and promotion based on merit helps to stop this problem arising.
Some employees who can see a potential career path within an organisation feel encouraged to stay and pursue this. Employers cannot guarantee such career development for everyone. But if employers have a system in place that offers career advice and progression, they can motivate employees to stay with an organisation.
By promoting teamwork and allowing devolved decision making within teams, employers can give employees a greater sense of purpose. As a result, employees feel more valued and are less likely to look elsewhere for a job.
Performance appraisal and performance rewards
Performance appraisal and performance rewards are strategies that can further increase the sense among employees that their employers value them. A performance appraisal scheme gives managers a chance to discuss work with employees on a one-to-one basis. This presents both parties with an opportunity to resolve any problems and address causes of dissatisfaction. A performance rewards scheme can motivate employees to work harder and stay with the organisation in order to reap financial and other benefits. Together, performance appraisal and performance rewards can act as strong incentives for employees to stay with their employers.
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- The Employee Retention Handbook; Stephen Taylor; 2002
- HR How-To: Employee Retention; Jennifer Carsen; 2002
- Responsible Leadership; Nicola Pless and Thomas Maak (editors); 2011
- The International Handbook on Innovation; Larisa Shavinina (editor); 2003
- The Psychology of Global Mobility; Stuart Carr (editor); 2010
- Globalization 2.0: A Roadmap to the Future from Leading Minds; Raschid Ijioui, Heike Emmerich, Michael Ceyp and Jochen Hagen (editors); 2010
- Management: Concepts, Practice & Cases; Dr Karminder Ghuman and K. Aswathappa; 2010;
- The Performance Appraisal Handbook: Legal & Practical Rules for Managers; Amy DelPo; 2007