Module 5 Employee Retention PDF

Module 5 Employee Retention  Employee Turnover Reference: Gregg Learning. (2018, July 30). Employee Turnover [Video]. Youtube. Retrieved https://www.youtube.com/watch?v=twWZfKg9CHw Employee Retention Retention refers to an organization’s ability to retain those employees it considers...

Module 5 Employee Retention  Employee Turnover Reference: Gregg Learning. (2018, July 30). Employee Turnover [Video]. Youtube. Retrieved https://www.youtube.com/watch?v=twWZfKg9CHw Employee Retention Retention refers to an organization’s ability to retain those employees it considers critical for the attainment of its objectives. Retention management refers to the policies and practices an organization puts in place to ensure that it minimizes loss of critical skills while managing to dispose of poor performers or those occupying positions that have become excess to requirement. Employee Turnover Unmanaged employee exits can present a serious dilemma for an organization because of the resources needed to get replacement personnel and loss in productivity, which may lead to turnovers. Various aspects affect turnovers such as job dissatisfaction, work and personal conflict, and even unemployment rates. – That is why it is essential for organizations to take note of their employee's needs, satisfaction, and motivation towards their work.  Employee Retention Reference: Gregg Learning. (2018, July 31). Employee Retention [Video]. Youtube. https://www.youtube.com/watch?v=jbT-KrrXkYQ Employee Retention Strategies Retention management strategies aim at keeping desired employees and letting go those not desired. It involves managing factors in the organization’s internal environment as the work environment and employee retention go hand in hand. Factors that need to be managed in that regard are:  compensation, benefits,  quality of work life,  performance,  recognition,  developmental career opportunities,  relationships, and  the general culture of the organization.  Strategies to Reduce Employee Turnover Reference: Stephen Goldberg. (2016, December 6).These Strategies will Reduce Employee Turnover [Video]. Youtube. Retrieved https://www.youtube.com/watch? Employee Retention Strategies Retention strategies are guided by an understanding of why employees resign. Employee turnover can be classified into voluntary where the employee leaves of their own volition or involuntary where they are forced to leave by factors beyond their own choice and each form of turnover requires different strategies for managing it. Role of Corporate HR in Retention of Employee For the retention of employees, corporate HR can formulate different types of plans and policies. These may be of the following types: ◾ Good compensation package ◾ Good organizational culture and management practices ◾ Good growth opportunities ◾ Good learning opportunities.  Retention strategies are policies and plans that organizations follow to reduce employee turnover and attrition and ensure employees are engaged and productive long- term. Retention Any employee retention strategy Strategy would necessarily include a plan for redressing employee grievances and ways and means to address employee issues. Sample Components of a Retention Strategy Job Rotation is the practice of moving the employees around divisions and within divisions with a clear emphasis on making sure that they operate in domains other than the ones assigned to them initially.  Grievance redressal and mitigation cannot be emphasized more. Sample This is the most critical and crucial Components component of the HRM plan as of a research has shown that an employee with pending issues Retention awaiting resolution is twice more Strategy likely to quit the company than the other employees. Hence, all efforts must be made to redress the grievances of the employees. Flexitiming A flexi-time scheme allows staff to have an element of flexibility over their working hours. It involves flexible start and finish times around ‘core working hours’ (when attendance is required) and within the limitations of the ‘bandwidth’ (the earliest and latest times between which hours can be worked) allows staff more choice, subject to the operational requirements, over their working hours. Telecommuting Telecommuting (also known as working from home, or e-commuting) is a work arrangement in which the employee works outside the office, often working from home or a location close to home (including coffee shops, libraries, and various other locations). What Are the Benefits of Telecommuting? Telecommuting allows a worker greater freedom regarding his or her work hours and work location. This gives the employee more flexibility to balance work and personal obligations. Often, working from home can actually make you more productive, because you do not have the distractions of an office space. Employers benefit from Telecommuting Allowing workers to telecommute often makes them more productive, which benefits the company. Telecommuters are also likely to be happier in their jobs and are therefore more likely to stay with the company. Telecommuting even saves companies money in office expenses. Drawbacks of Telecommuting You have to be extremely self-motivated, or else you may get distracted easily. Some people also find working from home to be a bit isolating, because you are not around your co-workers. Quality of Work Life Quality of work life (QWL) refers to the favourableness or unfavourableness of a job environment for the people working in an organisation. Many other terms have come to be used interchangeably with QWL such as ‘humanisations of work’ ‘quality of working life, ‘industrial democracy’ and ‘participative work’. Work Life Balance Work-life balance is about the interaction between paid work and other activities, including unpaid work in families and the community, leisure, and personal development. Work-life balance is about creating a productive work culture where the potential for tensions between work and other parts of people's lives is minimized. Employee Empowerment Empowerment is the process of enabling or authorizing an individual to think, behave, take action, and control work and decision-making in autonomous ways. According to Richard Kathnelson, ’empowerment is the process coming to feel and behave as if one is in power and to feel as if they owned the firm’.  Creativity  Job Satisfaction  Decision-Making  Loyalty Employee Involvement The direct participation of staff to help an organization fulfil its mission and meet its objectives by applying their own ideas, expertise, and efforts towards solving problems and making decisions. How to Get Employee Involvement? Employees need to be given the authority to participate in substantive decisions Employees need to have training or experience with appropriate decision-making skills. Incentives to participate (either implicit or explicit) must be present Autonomous Work Teams An autonomous work group is a team of employees granted autonomy or independence over the work they do within an organization. This autonomy includes independent decision-making related to a specific work function, project or job and independent freedom to assign individual members specific tasks within the group. An autonomous work group is a group encouraged to manage its own work and working practices.  A motivated workforce can be a significant factor in organizational success. When employees are given recognition, they may be motivated to work at higher levels of productivity, the organization as a whole runs more efficiently and is more effective at reaching its goals.  This contrasts with an unmotivated workforce, who can negatively disrupt an organization and distract employees from their work. For this reason, it is imperative that managers understand the power of reward systems and how they are used to influence employee behavior. Organizational Culture Reference: Ducere Global Business School. (2018, April 9). Organisational Culture - Eats strategy for breakfast [Video]. Youtube. https://www.youtube.com/watch?v=2aiJY4xfeZc Organizational Culture Organizational culture is the way things are done in an organization. It represents the collective values, beliefs, principles, and underlying assumptions that guide the way people relate and do things and the related artifacts. A company’s approach to rewards management reflects its culture. Checking how people are paid and rewarded is a truer reflection of an organization’s culture. – It can be read from who is paid more, is promoted, is given professional exposure etc. Reference: Denison Consulting. (2016, August 15). What is Organizational Culture? [Video]. Youtube. https://www.youtube.com/watch?v=4cBN8xH-5Qw Organizational Culture Organizations have distinctively different cultures based on how they balance demands between their internal and external environments and between the need for control and for flexibility. According to Bradley and Parker (2006).The balancing act results in four models of organizational culture:  the internal processes model,  the open systems model,  the human relations model and  the rational goal model Internal Focus  Internal focus: Internally focused organizations place more emphasis on integration, information management and internal communication and these are used to achieve stability and control resulting in a control or hierarchical culture (internal processes model).  Organizations with such a culture are generally conservative.  Human Relations  The human relations model is characterized by flexibility and internal focus that involves using training and development of human resources to cultivate employee cohesion and morale, high levels of teamwork and trust.  It is also referred to as group culture.  An example of this is Clan Culture  Collaborate or Clan Culture:  It is similar to control culture in so far as it has an inward focus and concern for integration its distinguishing characteristic being that it emphasizes flexibility and discretion over stability and control.  Good teamwork and strong employee engagement are important drivers of employee and organizational performance.  Clan culture refers to a type of corporate culture that fosters a collaborative, family-like environment by valuing commitment, participation, and allegiance.  Control Culture:  This is found in hierarchical organizations that tend to be large and bureaucratic.  They are characterized by stability and control and internal focus and integration.  What are valued in the culture are standardization, control, and a clearly defined authority and decision-making structure that is adhered to by all.  Employees know their place in the chain of command  who’s accountable to them,  who they report to, and  what the rules are. External Focus  External focus: Organizations with an external focus emphasize acquisition of resources, taking advantage of growth opportunities, external communication and are adaptive and spontaneous resulting in a developmental culture that is associated with entrepreneurial and dynamic organizations (open systems model).  Rational Goal:  Contrary to the human relations model, the rational goal model is characterized by flexibility and external focus and a preference for outcomes and goal fulfillment.  Organizations with this culture have a strong orientation towards production.  An example of this is Market Culture  Compete or Market culture:  It is characterized by regard for stability and control but differ from control culture in that they have an external orientation and have higher regard for differentiation over integration.  to have high-profit margins and outperform the competition. Therefore, it is results-oriented with a strong external focus to satisfy the customers.  This culture is frequently a competitive environment, even among colleagues, and attracts talent who want to “be the best.”  Create Culture:  It values ‘adhoc-ness’ and is characterized by flexibility, adaptability, and thriving in challenges and chaotic situations.  It doesn’t rely on a rigid system of authority or procedures.  it focuses on consistently adapting methods by giving employees who are closest to the action permission to do their work and solve problems as they see fit.  decentralized leadership,  individual initiative, and  organic decision-making.  Create Culture  Examples o Most high-tech organizations such as Google are examples of such a culture. o The social media giant, Facebook, exemplifies this culture.  The company creates innovative products by trying unique products, even at the risk of failing, which is consistent with CEO Mark Zuckerberg’s adage, which encourages people to move speedily without fear of breaking things. If you do not break anything, you are moving too slowly. Facebook produces innovative products at a high rate, and its profitability is growing tremendously. Other types of organizational culture  Purpose culture – Company leaders and employees share altruistic values of changing the world and ensuring global resources are shared with those who live the margins.  Learning organizational culture – Focuses on research, innovation, creativity, learning and development.  Enjoyment organizational culture – Having fun and a sense of humor is what defines this culture.  Results organizational culture – Characterized by meeting targets, achieving goals, and is performance-driven. https://www.aihr.com/blog/types-of-organizational-culture/ Other types of organizational culture  Authority organizational culture – Is defined by strong leadership and confident employees. It is a competitive working environment where employees strive to be the best in their field.  Safety organizational culture – May be risk-averse where leaders thrive on fostering safety through planning and taking calculated or little risk and doing what has worked in the past.  Order organizational culture – Is usually defined by rules, procedures and where employees have very defined roles.  Caring organization culture – Will be characterized by an environment that cares for its employees and where there may be strong engagement and loyalty. https://www.aihr.com/blog/types-of-organizational-culture/ Note: Failure to establish a culture fit has been linked to employee turnover. Employees quit organizations whose values differ significantly from theirs. As part of employee retention, it is becoming increasingly important for an organization to establish culture fit at selection stage and to manage cultural misalignment in order to reduce undesired turnover. Reference: Bython Media. (2017, December 17). How to Spot Toxic Employees in the Workplace [Video]. Youtube. https://www.youtube.com/watch?v=KZBNGmciYdQ Commitment High Commitment Performance Management Muir and Li (2014) define such systems as having been designed to shape required employee behaviors and attitudes by fostering psychological connections between employee and organizational goals. High Commitment Performance Management Such environments are characterized by:  team-based approach,  enriched job design,  employee participation in decision making,  performance linked pay,  comparatively higher levels of pay,  performance appraisal systems that reflects employee performance,  strong bias towards training and development,  rigorous new employee selection processes,  strong psychological contracts,  high levels of employee engagement and  employment security. Aspects of High Commitment Performance Management A. Self Directed Work-Teams Mitchell et al., (2001) uses the concept of being embedded to explain employee intentions to stay. Other studies have pointed to the importance of relationships and social exchange within organizations to an employee’s turnover intention. In high commitment HR systems employees work in self- directed work-teams within which they form bonds that may even be stronger than the ones they have with the organization. Guthrie (2001) associated high involvement work practices with employee retention and reduced turnover. Aspects of High Commitment Performance Management B. Employee Engagement Schuck and Wollard (2009) defined employee engagement in a work situation as “a positive cognitive, emotional, and behavioral state directed toward organizational outcomes” High levels of employee engagement have been associated with low intention to quit among affected employees. Aspects of High Commitment Performance Management C. Employee Security-Pathways for Internal Mobility Companies are able to create employment security through establishing pathways for internal mobility so that high potential employees do not have to leave the organization altogether to pursue promotion and job enrichment opportunities. Best practice thinking in employee development and retention embrace employee mobility throughout the bigger organization. For employees ear-marked for managerial positions such endeavors have been associated with less intentions of quitting. Aspects of High Commitment Performance Management C. Employee Security-Pathways for Internal Mobility When improperly structured internal mobility can have negative results as frequent movements may result in people not being available for long enough to experience the consequences of their decisions. This can reduce the level of rigor people put into decision making because of the knowledge that they would not have to live with the consequences. Aspects of High Commitment Performance Management B. Employee Engagement It is a product of psychological meaningfulness which can result from  job enrichment and work-role fit;  psychological safety which is associated with supervisor and work-mates relations and co-worker norms;  and psychological availability which is linked to availability of work-related resources,  job insecurity and  work-life balance (May, Gilson, and Harter, 2004). Retention Practices for Specific Groups Turnover trends vary based on differences in level of jobs, types of performers, gender, and race among other individual based factors. The prevalence of work force diversity in contemporary organizations raises the need for a focused approach to retention management. Retention Practices for Specific Groups Gender differences: Women and racial minorities have a higher turnover rate than other groups.  Retention management initiatives need to clarify the levels most affected by turnover, the levels of performance of affected employees, gender, and racial grouping among other factors in order to make the interventions more focused.  Female knowledge workers are generally attracted to roles that offer work-life balance and flexible working and these have been associated with employee attraction, retention, and motivation (Schlechter, Thompson, and Bussin, 2015; Bussin and Toerien, 2015). Retention Practices for Specific Groups Socio-cultural differences: Employees have been known to quit jobs for socio – cultural reasons, for example cases where the job fails to accommodate their religious and cultural practices. Job performance: Levels of employee turnover differ based on individual levels of performance.  Hausknecht, Rodda, and Howard (2009) found availability of opportunities for advancement and organizational prestige to have been a more common explanation for low turnover among high performers and monthly paid workers while extrinsic rewards were more preferred low performers and hourly paid employees. End of Presentation