The purpose of this report is to comprehend how an organization is able to promote and hire an employee from within through employee retention programme. Specifically, this aims on (1) determining the importance of employee retention (2) identifying manners to promote the company among employees and (3) identifying an employee retention program. Lastly, through the findings and analysis, this research will draw pertinent conclusions from the collated data and suggest recommendations based on that conclusion. 1. 2 Employee Retention Program
The findings from the relevant literatures have revealed that employee retention program...
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... is important because it enables the company to retain skillful employees which can help them meet the needs of their target market. The data revealed that motivation and employee rewards are important aspects to promote or sell the company to their employees and make the latter loyal and committed to the company. Lastly, the company’s retention program should adhere to the promotion of highly competent employees within the company. 1. 3 The recommendation
Based on the analysis of the previous works of different scholars, the recommendations for the employee retention program of the company are being provided: (1) Interest and Desire for learning new things; (2) Enhance Job Knowledge (3) Reward Form Achievement. 2 Introduction Nowadays, the labor market has been largely influenced and impacted by different changes which happen within its environment. It can be said that more and more industries are employing market-like strategies or practices to management their human resources and employees effectively.
One of the main reasons for change is the realization of the industries I lie with the essential contributions that the employees can generate. Hence, different industries are trying to find ways on promoting or retaining employees which possesses high skills and abilities to help the business sustain their competitive advantage. The organisational background of the Magnolia’s Software presented several issues and problems with regards to their difficulty of hiring qualified employees.
The company is being challenged on how they can sell the organization to their own employees to ensure that highly skilled and competent employees will stay and be retained in the company. The company is trying to seek way of retaining their employees by different retention approaches. The purpose of this report is to comprehend how an organization is able to promote and hire an employee. The realization of the Magnolia’s Software to the qualities of their efficient employees have lead the company to find ways on motivating their employees and sell their organization to retain these kind of people in the organization.
Through the use of secondary research using existing literatures in employee retention aspects and human resource management journals, this research study will provide insightful details on how to retain employees. The main objective of this report is to (1) determine the importance of employee retention (2) identify manners to promote the company among employees and (3) identify an employee retention program. Lastly, through the findings and analysis, this research will draw pertinent conclusions from the collated data and suggest recommendations based on that conclusion.
3 Research Findings 3. 1 Importance of Employee retention The rotation of the employees around the labor market environment, may it in between industries, occupations, jobs, or between the states of employment or unemployment is known as employee turnover (Denning, 2000). Consequently, turnover is one of the most significant causes of the decreasing productivity as well as sagging morale in both public and private organisations (Abassi & Hollman, 2000, p. 333).
Scholars have noted that excessive turnover may result to jeopardy of the organizational objectives and may negatively affect innovation and may lead to major delays in the delivery of services and introduction of new programs within the company. Employee turnover may also lead to the loss of key employees, which in turn may have deteriorating and damaging effect on the quality and innovation of services delivered and lead to negatively affect the satisfaction of customers, for instance Magnolia’s Software.
In this regard, the concept of employee retentions has been considered and noted to be important factors that a company should possess. Retention of skilled employees is obviously important since it has the ability to function well and stand out among other strategies (Pendse, 2007) In addition, retentions is also important for saving additional expenses for the company. In a study conducted by Fitz-enz (1997), it has been revealed that an industry is losing approximately $1 million with every 10 managerial and professional employees who opt to leave or resign from the organisation..
In addition, an industry is also losing critical knowledge which is important for having better company performance when a skilled employee decides to leave the company or resign. Most companies need to have skilled employees to keep the business rolling. If training was already given by the company, skilled employees turnover would just put the training expenses into waste. In addition, the organizational mobility can also be affected negatively because every turnover puts tasks or specific jobs left behind by the employee into a halt.
Even if there is a temporary before a new employee that suit that job is hired, the company will not have the assurance that the substitute would perform the task faster and efficiently. Hence, the hiring process can also consider putting into waste a considerable amount of money, time and effort because it definitely brings additional costs in advertising. To be able to ensure that the company will not experienced such problems, the context of employee retentions should be considered, 3. 2 Ways on Promoting the Company Based on the discussion above, the company needs to retain skilled employees to avoid wasting time, money and effort.
Hence, the consideration of promoting or selling the company is also important. Studies show that there are many ways on promoting the company for their employees and one of this is to the consideration of employee motivation approach. In the study of Snell and Dean (1992), they have noted that the skills, ability, knowledge, capabilities as well as experiences of an individual represent growth because of their improved productivity. Study has shown that each industry are trying to have their own ways of promoting and selling themselves to their employees by means of motivation.
One of the ways of doing this is by providing the employees the chance to be developed through proper training and development. To sell the company, they must attract skillful employees with their training programmes and they must be able to establish rooms for expansion, which means that training can also result to decrease or reduce the company’s turnover rates. In a research done within Sibson and Company (Cooper, 2000), it has noted that motivation and training can decrease the growth of turnover rates, and this study also noted that firms also be able to reduce costs of operation.
The idea of the motivational approach to promote or sell the company for within start a chain reaction which means that when the fit, is able to establish effective employees then their profitability and organizational performance will also increase (Parker, 2005). Motivation of employees not only involves training and development, but it also includes the provision of employee rewards. This is done to show the real appreciation of the company with the employees who have done their work well. The context of rewards is said to play an important role of promoting the companies for the employees.
Such type of recognition has the ability to boost the morale of the employees. Thus, it is exceedingly essential that to sell the company, the company must include good rewards for their employees (Armstrong, 2002). The rewards should be SMART, which means that it has to be sincere, meaningful, adaptable, relevant, and timely. Employees also value peer-to-peer recognition. 3. 3 Employee Retention Program Employee retention approaches is known to have the same objective as the careers success in which employees were given higher responsibilities or place on higher authority levels that their previous position in the company (Messmer, 2004).
The employee retention approach is known to be an important aspect of the human resource management because of its objective of encouraging employees to perform with quality and give them the chance to be promoted when they are able to meet the company’s expectations (Promoting from within, 2006). In addition, employee retention is also said to represents a significant aspect of the internal selection system and promotional system (Little, 2007). The organizational members’ affective reactions towards their job (Needleman, 2008) and to the company are also influenced significantly based on their employee retention opportunities.
The employee retention program is said to be highly correlate with employee promotions. To retain skilful employees, the management of the company must make this employee loyal through promotion. For instance, if the company needs better leader in the future, they must consider proper promotion of potential employee who has the ability to lead the company in the future (Thurm, 2007). It is said that the commitment of the company to retain skilful employees is positively correlated to internal promotions and career growth among employees. Hence, this suggests that promoted employees are likely to be more loyal and committed to the company.
Employee retentions through promotions approaches tend to vary and some individuals or employees are being promoted earlier compared to their coworkers. 4 Conclusion Based on the research analysis and findings, the following conclusions are being made: ? Employee retention is an important part of the company’s strategy ? Training and development can be used a motivational approach to promote and sell the company to the employees ? The use of reward system can be used to retain skilful and efficient employees ? The company is in need of a comprehensive employee retention approach to meet the needs of their employees.