Importance of Employee Retention Strategies
Introduction
Employee Retention Strategies are needed to keep the skilled workforce. The importance of employee retention strategies are significant for taking care of skilled workforce. Retaining a positive and motivated staff is vital. It is the very difficult task for an organization’s success. High employee turnover increases expenses and also has a negative effect on company goodwill. Implementing an employee retention program is an effective and efficient way of to remain employed while maintaining job performance and productivity.
Importance of employee retention strategies in the current global competitive market
Manage Employee Turnover
Employers implement retention strategies to manage employee turnover and attract quality employees into the organization. Retention programs mainly focus on the relationship between management and their employees. Competitive pay, benefits, employee recognition and employee assistance programs are to be ensured employee satisfaction.
Cost Effective
To be benefitted from employee retention programs is to be cost effective because of a direct effect on an employer’s bottom line. High turnover can be very expensive. Employee replacement costs are always expensive in terms quality and output while giving importance of Employee Retention Strategies.
Maintain Performance and Productivity
Employee retention practices help support an organization’s productivity. Recruiting and training new employees takes time. As a result it hampers in performance of productivity. There is a learning curve where most employees must overcome before their work becomes profitable. In this regard need to be dynamic in retaining the employees and reducing the turnover upto a limit which must increase productivity. It should be taken the necessary steps to keep current workers satisfied with their roles as well as their current and prospective benefit.
Enhances Recruitment
Effective retention strategies often begin during the employee recruitment process. Employees are more interested to play role with a company on the duty and responsibility that promises made when their employment offer was extended. Companies should provide a realistic view of their corporate environment, advancement opportunities and job expectations. Thus the new hires can positively influence employee retention.
Increases Morale
Employees that enjoy what they do and the atmosphere in which they work are more likely to be user friendly. Retention strategies are important because they help create a positive work environment and strengthen an employee’s commitment to the organization. Strategies that target employee engagement to increase company morale and give employees a sense of pride in what they do.
Three Major Employee Retention Strategies of Whirlpool
1. Opportunities for professional growth
Employees always look forward the opportunity to get the professional growth. Not a single employee wants to remain in the same position. They expect he will get promotion, his salary will be increased and the living standard must be increased. In this perspective, Whirlpool should be concentrating on to increase the opportunities for professional growth thoug it is found that they are strong in providing opportunities in professional growth.
2. Training and Development
The scope of training and development must increase the effectiveness of an employee and an employee must want he should be properly trained up but when he found he is not properly trained up and there is no scope of evaluating his capacity then he switch the job. So, Whirlpool should be concentrating on to increase scope of training and development though they are doing is doing well in training and development program while giving Importance of Employee Retention Strategies.
3. Career development program
Now a day, career development program is the most meaning way to retain the employee of an organization because every employee wants to have their career development with different program like arranging seminar on the career development by which employee can be known how they can develop their career and it makes them motivation. So, Whirlpool should be concentrating on to have the career development program though they are doing is doing well in career development program.
Employee Retention Strategies for Whirlpool which are not mentioned
1. Increase Employees Benefit
Competitive pay, benefits, employee recognition and employee assistance programs are to be ensured employee satisfaction. If the benefit of the employee can be increased then it is possible to retain the employee.
2. Increase the Employees Job Security
It is also the more concerning area feeling the aspect of job security. When there is lacking in job security in the company, employees feel in secured, then they always look forward to having a better job. If the job security can be increased it will be great to retain the employees.
3. Increase Motivation
There are many forms of motivation in the aspect of financial and non financial aspect. Along with the increase with financial benefit company should motivate its employees by giving other benefit to retain its employees.
Whirlpool relationship management practices including trade unions
As employers became larger, employees looked to the strength of the union to counter the might of management.
- The trades unions have made their representatives and staff who can work for many managers.
- They find themselves negotiating with people who may be better trained and know as much about what’s good for the business as they do.
- If the knowledgeable and informed employee representatives enabled many businesses to ride out the recession, with both sides seeing the benefits of innovative ways of coping.
- Reduced hours and flexible working practices were introduced.
- Benefits of developing solutions to the challenge presented by the economic crisis.
- The challenge for both sides is to recognize that their interests are mutually compatible, to preserve jobs and quality of services as best they can.
- Good management must encourage effective and responsible trades unions.
Evaluation in terms of Human Capital Management practices
- Hiring is not an easy process: The HR Professional shortlists few individuals from a large pool of talent, conducts preliminary interviews and eventually forwards it to the respective line managers who further grill them to judge whether they are fit for the organization or not. Recruiting the right candidate is a time consuming process.
- When an individual resigns from his present organization, it is more likely that he would join the competitors: In such cases, employees tend to take all the strategies, policies from the current organization to the new one. Individuals take all the important data, information and statistics to their new organization and in some cases even leak the secrets of the previous organization. To avoid such cases, it is essential that the new joiner is made to sign a document which stops him from passing on any information even if he leaves the organization. Strict policy should be made which prevents the employees to join the competitors. This is an effective way to retain the employees.
- The employees working for a longer period of time are more familiar with the company’s policies, guidelines and thus they adjust better: They perform better than individuals who change jobs frequently. Employees who spend a considerable time in an organization know the organization in and out and thus are in a position to contribute effectively.
- It is essential for the organization to retain the valuable employees showing potential: Every organization needs hardworking and talented employees who can really come out with something creative and different. No organization can survive if all the top performers quit. It is essential for the organization to retain those employees who really work hard and are indispensable for the system.
- An organization invests time and money in grooming an individual and make him ready to work and understand the corporate culture: A new joinee is completely raw and the management really has to work hard to train him for his overall development. It is a complete wastage of time and money when an individual leaves an organization all of a sudden. The HR has to start the recruitment process all over again for the same vacancy; a mere duplication of work. Finding a right employee for an organization is a tedious job and all efforts simply go waste when the employee leaves.
Conclusion:
Employee retention is a challenging task for the HR managers but there are many scopes to adapt with this by introducing different program or strategies. Thus Management should be aware to retain the quality employees in any chance by proving Importance of Employee Retention Strategies.
References
Chron. (2017). Why Are Employee Retention Strategies Important?
Half, R. (2017, 04 24). Effective Employee Retention Strategies.
Halvorson, C. (2013, 10 08). 7 Great Employee Retention Strategies.
Pardey, D. (2010, April 29). The changing relationship between trades unions and management.
Willock, R. (2007, 01 30). HR and unions’ relationship: Cordial relations.
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