BYHARMEET SINGH

RetentionManagement

What is Employee Retention

Employee retention is a process in which the

employees are encouraged to remain with the

organization for the maximum period of time

or until the completion of the project.

Employee retention is beneficial for the

organization as well as the employee.

Successful organizations realize by having an

effective employee retention plan will help

them sustain their leadership and growth in

the marketplace.

5 key points of Retention mgmt.

Compensation (Reward/Salary) – In this the

salary of the employee is increased on

regular basis along with necessary rewards.

Environment (Working environment in

company) – The working environment should

be kept friendly and comfortable

Relationship (Employer-employee

relationship) – The relationship should be

respectful and cordial towards each other.

Support (Support from co-workers, Company,

Senior Managers, Staff) – Everyone should be

given necess ary support in hour of need.

Growth (Growth of employee, Company’s

progress) – It is very important that the

company keeps improving and along with

that the employee should be given

opportunity to grow.

Employee Retention Strategies

To Hire right person for right job.

To make realize to employee that they are key

members in success of organization.

T0 Trust, respect and have faith in employee.

To Recognize and appreciate employees

work and achievements.

To provide more information and knowledge

and to create healthy environment within an

organization.

Factors that encourage employee to leave organization

Job is not what employee expected.

Lack of appreciation.

Stress from overwork.

Lack of trust and support.

New job offers.

Microsoft faced employee retention during 1990-1995. Many employees left Microsoft because of work culture.

Companies faced problem due to improper Retention Management

In 2004, BPO (Business Processing Outsourcing) companies like Wipro, IBM faced employee retention due to cost effectiveness and not having right person for right job.

Bharti Airtel faced employee retention in 2001 due to support from staff, co-workers.

Telecommunication & Banking sector facing employee retention.

Employee retention faced in HDFC bank and many employees had left due to lack of trust and faith in their employees.

Reliance faced employee retention between 2002-2004 due to partition of reliance.

Nestle faced employee retention management due to lack of Growth in market.

Why Employee Retention is important??

Due to cost of turnover. This helps in

increasing the turnover as tried and tested

employees are retained

Goodwill of Company. It enhances the

reputation of the company in the market.

Regaining efficiency.

To boost employee morale and to see

employee performance which ultimately

effects on company’s success ratio.

Loss of Company knowledge.

For better reputation of Company in

competitive world.

Key points

The quality of the supervision an employee receives is critical to employee retention.

People leave managers and supervisors more often than they leave companies or jobs.