02. Employee retention:

Govindaraju, N., (2018) define that employee retention is not merely a common practice of an organization; it is one of primary concern of an organization.

According to Das, B.L & Baruah, M (2013, p.8) “encouraging employees to remain in the organization for a long period can be termed as employee retention."

Dibble cited in Cloutier et al. (2015) shared that employee retention starts with orientation. Further, Dibble (1999) identifies key components employers need to provide employees so they chose to remain with the organization. The employee’s acceptance of the organization’s vision, mission, values and policies come by way of effective leadership communication (Cloutier et al. 2015).

Organizations and managers believe that long-term success, survival and productivity of an organization rely upon the ability to retain best and valuable employees (Das & Baruah cited in Yousuf, S. and Siddiqui, D.A., (2019).

Lam et al. cited in Yousuf, S. and Siddiqui, D.A., (2019) that Talent retention or employee retention refers to the amount of time that an employee spends in an organization. Further Lam et al., (2015) stated that employee retention not only reflects the steadiness of employment within an organization, but it also displays the propensity of an employee to work in one organization for a long time.

Nyanjom cited in Yousuf, S. and Siddiqui, D.A., (2019) consider employees as the important resource as they contribute their efforts and knowledge in achieving the organization’s goals, objectives and missions. Hence it is important to retain them for the development and accomplishment of the organizational goals, objectives and missions specifically in gaining competitive advantage over the competitors in the era of globalization (Yousuf, S. and Siddiqui, D.A., 2019).

Retention involves five major things (Thariq, M.M. and Mojideen, O.H., 2014);

1. Compensation:

Hafanti cited in Syahreza et al., (2017) states that there are ten forms of compensation for employees, namely salary, job bonus, holiday / pension allowance, family health insurance, employee involvement in insurance program, employee recreation program, awards for outstanding employees, and adequate leave periods. These forms of compensation are very concerned about things that are fundamental to the needs of employees.

Syahreza et al., (2017) defined that the management of good compensation to employees will affect the comfort and desire employees to stay in the organization.

2. Support:

Nazia and Begum cited in Iqbal, S. and Hashmi, M.S., (2015), defines employee retention as a business effort to retain its current staff by sustaining a supportive working environment.

3. Relationship:

Mayo cited in Weerasinghe, T.D. and Priyasad, K.P.M, (2018) argued that the key determinant of job satisfaction was group interaction, and highlighted the importance of good leadership and satisfying personal relations in the workplace.

According to Weerasinghe, T.D. and Priyasad, K.P.M, (2018) that friendship at work has a significant, moderate-positive nexus with employee retention intention where there is no significant association was found between negative relationships and romance at work with employee retention intention.

 4. Environment:

Mir and Mufeed cited in Hanai, A.E., (2021) contend that today’s business environment is very competitive thus making skilled and experienced employees important to organizations

5. Growth:

Employees consider training, education and development as crucial to their overall career growth and goal attainment and will be motivated to remain and build a ca reer path in an organization that offers them such opportunity (Samuel cited in Nwokocha, I. and Iheriohanma, E.B.J., 2012).

List of references:

1.     Cloutier, O., Felusiak, L., Hill, C. and Pemberton-Jones, E.J., 2015. The importance of developing strategies for employee retention. Journal of Leadership, Accountability & Ethics, 12(2).

2.     Dibble, S. (1999). Keeping your valuable employees: retention strategies for your organization's most important resource. Hoboken, New Jersey: John Wiley & Sons, Inc.

3.     Das, B. L., & Baruah, M. (2013). Employee retention: A review of literature. Journal of Business and Management, 14(2), pp.8-16.

4.     Govindaraju, N., (2018). The role of traditional Motivation theories on employee retention. International Journal of Arts, Humanities and management studies, 4(6), pp.95-109

5.     Hafanti, O. (2015). Effect of Compensation, Work Environment and Design Task on Job Satisfaction and Impact on Employee Retention PMI Aceh. Journal of Management, 4(1), pp.164-173.

6.     Hanai, A.E., (2021). The Influence of Work Environment on Employee Retention:Empirical Evidence from Banking Institutions in Dar Es Salaam,Tanzania. International Journal of Managerial Studies and Research (IJMSR), 9(1)

7.     Iqbal, S. and Hashmi, M.S., (2015). Impact of perceived organizational support on employee retention with mediating role of psychological empowerment. Pakistan Journal of Commerce and Social Sciences (PJCSS), 9(1), pp.18-34.

8.     Lam, C. L., Law, S. F., Loo, Y. J., Ng, W. Y., & Ooi, S. L. (2015). A study on factors affecting employee retention in nursing industry at Klang Valley. UTAR.

9.     Mir, A.A. and Mufeed, U. (2016). Employee Retention – A Key Tool for Achieving Competitive Advantage.International Journal of Engineering and Management Research. 6(6), pp. 334 – 337.

10.  Nyanjom, C. R. (2013). Factors influencing employee retention in the state corporations in Kenya. unpublished thesis Nairobi: University of Nairobi.

11.  Nazia, S., & Begum, B. (2013). Employee Retention practices in Indian Corporate – astudy of select MNCs. International Journal of Engineering and Management Practices,4 (3), pp.361-368.

 

12.  Nwokocha, I. and Iheriohanma, E.B.J., (2012). Emerging trends in employee retention strategies in a globalizing economy: Nigeria in focus. Asian Social Science, 8(10), p.198.

13.  Syahreza, D.S., Lumbanraja, P., Dalimunthe, R.F. and Absah, Y., 2017. Compensation, employee performance, and mediating role of retention: A study of differential semantic scales.

14.  Samuel, O. M. (2008). Using Motivational Strategy as Panacea for Employee Retention and Turnover in Selected Public and Private Sector Organizations in Eastern Cape Province of South Africa. Unpublished M.Sc Thesis, University of Fort Hare.

15.  Thariq, M.M. and Mojideen, O.H., (2014), December. A Study on Employee Attrition and Its Influencing Factors Relating to Employee Retention. In A Study on Employee Attrition and Its Influencing Factors Relating to Employee Retention. IJASRD.

16.  Weerasinghe, T.D. and Priyasad, K.P.M, (2018). THE EFFECT OF INFORMAL RELATIONSHIPS AT WORK ON EMPLOYEE RETENTION INTENTION: EVIDENCE FROM SRI LANKA. Available at: https://www.researchgate.net/publication/348757670_Effect_of_Informal_Relationships_at_Work_on_Employee_Retention_Intention_Evidence_from_Sri_Lanka (Accessed on 25^th April 2022)

17.  Yousuf, S. and Siddiqui, D.A., (2019). Factors influencing employee retention: A Karachi based comparative study on IT and banking industry. Yousuf, S. and Siddiqui, DA (2019). Factors Influencing Employee Retention: A Karachi Based Comparative Study on IT and Banking Industry. International Journal of Human Resource Studies, 9(1), pp.42-62.