The Importance Of The Employee Retention - Essay Example

Employee Retention: In a slowed economy, it is imperative that organizations consciously work to retain employees. The cost associated with retraining new employees can prove astronomical. Not only do retaining the best and brightest staff gives a company the competitive advantage it can boost morale and overall productivity. Management should make it a priority to make employees feel valuable and create an all inclusive atmosphere. To reduce the costs of high turnover, effective human resource managers should implement strategies to retain employees and thoroughly assess the reasons for departure. One of the first things a company can implement to retain employees is to offer benefits both tangible and intangible. According to the article “His job: helping employers hold on to their staff; High turnover can be costly. Consultant says its vital to offer respect, good pay, retirement plan” by Kasandra Kyle the most important thing that a potential employer can offer a new employee is good pay, respect and a retirement package . These benefits help make employees comfortable in their current position and will retain an employee sometimes even when another job offer with a more lucrative offer comes around. Another fringe benefit is the flexible work schedule. Although this is not practical in all cases, if it is at all possible it serves as an excellent retention strategy. Offering tangible and intangible benefits are essential, but it is imperative to work diligently to keep specialty trained staffers. The low turnover of maintaining skilled employees offers the benefits of low turnover and positions companies for growth. The author goes on to say that the cost of training specialty staffers can cost the company valuable time, enormous finances and slowed production (Kyle, 2008). Although it is important to offer workplace benefits at your larger companies, it is dire to offer those benefits at a small business. The article, “Workplace benefits are strategic in small business” states that recent study performed by MetLife’s annual Employee Benefits Trends study shows more than half (55%) of smaller employers, those with fewer than 500 employees say benefits play a very important role in employee retention. However, there is contradictory results as the study goes on to reveal that only 34% of workers at smaller employers say the benefits they receive are a very important reason to remain with their employer, versus 53% at larger firms. In addition, just 37% of employees at smaller corporations say they are highly satisfied with their workplace benefits compared to 49% at larger firms (Financial Post, 2008). Staff retainment may not just depend on the benefit package offered, the generation of the potential staffer may also come into play. The article “Keep them at the table: Effective retention strategies depend on the generation” by Leah Carlson Shepard suggests that the secret to retention may depend upon the age of the workforce. The generation of the new recruit may determine the work ethic. The best way to retain Gen Y’ers, ages between 20’s and 30’s, is through career development. The generational Y’ers also called the millenials are said to grown up sheltered and are risk-averse. However, if you’re looking to keep a Gen X’rs, born between 1960’s and early 80’s, then a flexible schedules and extra time off should be offered. The baby boomers, which are born between 1943 and 1960, are classified as idealist and moralist who took a stance against inequality and fought in wars (Shepard, 2008). Employers may want to work strategically to hold on to the millenials. According to the article “Retention Strategies: Please dont go!;”Retaining younger workers is crucial” by Richad Stolz, 20% of the workforce, which are the baby boomers, will be retiring in the next 10 years, therefore the new generational requirements need to be assessed. The author goes on to suggest that the generation X’ers lack autonomy and seek parents in their senior management. The X’ers are deemed high maintenance bloggers who like to be heard, however they are the future of the organization (Stolz, 2008). Regardless of the generation the new employee is hired from, it is essential to hire the correct employee with particular skill sets for appropriate positions. Effective human resource managers can implement strategic steps to ensure the best candidate is selected. One such step is to conduct a hiring personality test. A hiring personality test can ensure the candidate’s personality gel with the organization. Also, a group interview may be performed. A group interview with management would be beneficial when trying to achieve group consensus and ensure cohesive, effective team players. (Lambert, 1997). One key hiring practice for the human resource manager to attract desirable candidates is to first determine current hiring needs. Deciding what position needs to be filled allows hiring managers to focus on specific skill sets. Also, current job descriptions should be evaluated and updated if needed. Having accurate job descriptions clarifies duties expected from employee to employer. Another strategic step for attracting qualified candidates is to establish a plan for new recruitment. A plan allows hiring managers to narrow potential search and focus on ideal candidates. Finally, a thorough assessment for critical needs should be determined for open jobs. Critical needs can include special skills and talents from potential candidates. Once the ideal candidate is attained, management should welcome new employees to secret an aura of inclusiveness. Providing a welcoming atmosphere will help the new employee feel comfortable at new job. Also, friendly introductions between all staffers should be strived for. Corporation should attempt to have colleagues socialize to make new employee feel a sense of belonging. Finally, employers should treat employees as a valuable resource. Employees best optimize talent when in a comfortable environment. (Employee Retention, 2009). Once the applicant is hired, the new employee should have appropriate training supplied in order to familiarize candidate with the organization and clarify expectations. According to the article “Employee Retention; the Unforced Errors of the Business World” states that ideally, new hires should have orientation. Orientation will determine the candidates’ ability to fit into the organization. Successfully integrating new hires into the existing team will reduce the negativity often experienced in the first few days of starting a new position. Orientation should be followed by clear and detailed training procedures. The training procedures should provide hands-on training for the worker can fully understand the job description. (Employee Orientation 2008). Once the new staffer is properly trained, then the employee should be trained for added value or advancement. The article First, the worker may be departmentally cross trained. Cross training can be essential to the employer as it adds employee value to the company. Another tactic utilized to increase employee contribution is to assign employee to a mentor. New hires should be allowed to have a planned question and answer session. Also, new hires may be allowed to mentor with a talent manager. This strategic process is implemented to identify the most promising employees for advancement and make succession planning a priority (Gray, 1988). If a new employee appears promising, then they may be considered for advancement. The organization can assist with inter-organizational advancement by creating programs to influence and encourage employee career planning and development. Also, companies should encourage management review and recommendation of high potential employees for career advancement. This step will help with retaining valuable employees. Another step to implement is to provide job enrichment opportunities. Job enrichment opportunities helps an employer define what tasks an employee can effectively complete. Employers should encourage the employee to get involved as well. Employers should encourage employees to set personal goals for themselves. Another step that can be used to prepare the employee for promotion is to encourage interdepartmental team building and interaction. This strategy insinuates that the employee is a team player and is concerned about the growth of the company. Finally, a clear performance review reward system should be outlined. Rewarding employees for a job well done is an incentive to make the employee strive hard for the companies’ overall success (Employee Orientation, 2008). Although appropriate steps may have been taken to retain qualified employees, there are times when employees move on. Effective human resource managers should thoroughly assess reasons for departure to minimize employee turnover and help with retention. One such step an effective human resource manager should implement is an exit interview. Exit interviews are one of the most informative and easily implemented strategies. Understanding why valuable employees are leaving is crucial to the success of an organization. Also, structured exit interviews provide valuable information that is objective to the organization. These exit surveys completed by the prior employee will lend insight into the actual reasons for leaving. An exit survey may also reveal an employee’s attitude toward the organization and personal job satisfaction. Exit interviews can ultimately reveal the unmet goals of both the leaving employee as well as how the employee feels about organizational goals. Careful analysis of the results can provide invaluable information for the organization as well as the exiting individual and help begin defining the potential problem (Fishman, 2009). Employee retention is vital to the continuing and future success of a business. The organizational costs attributed to high turnover rates can prove costly. In order to minimize employee departure, hiring managers should implement strategic steps to ensure new hires gel within the corporation. To keep turnover at a minimum, hiring managers should employ strategic hiring practices, properly train new hires and diligently seek reasons for departures from leaving employees. Works Cited Carey, R. (Oct 3, 2008). Motivation: Action! Start Teambuilding Now!. Incentive. (2009). Employee Orientation: The Unforced Error Of The Business World. ( 2008) 14 (11) , p12-14 Employee retention: A little appreciation goes a long way. (2009) Springs Business Journal (CO), p.NA. . Fishman, A. (2009). Turn exit interviews into gold. Executive Leadership, 24 (8). p.40-41 Gray, C H (1988). Charting your employees potential. Management World, 17(3), p.11-2. Kyle, Cassandra. (2008) His Job: Helping Employers Hold on to Their Staff; High Turnover Can be Costly. The Gazette (Montreal) pg. F3 Lambert, C. A. (1997). Hiring Smart for High-Quality Help: Despite High Demand for Good Employees, There are Proven High-Tech and Common-Sense Strategies to Attract and Keep Quality Help. Home Improvement Mismanaged Market, 234,(3). p.32-4. Shepard, Leah Carlson. (2008) Keep Them at the Table. Effective Retention Strategies Depend on Generation. Employee Benefit News. Pg.1 Stolz, Richard. (2008). Retention Strategies: Please Don’t Go!; Retaining Younger Workers is Crucial. 22 (11). Pg1 Workplace Benefits are Strategic in Small Business Employee Retention. (2008). Dow Jones National Edition. Npg. FP6 Read More