In these changing times both the employee & employer are under tremendous pressure to perform. There is fierce competition not only in the industry but also across categories. This new liberalized cutting edge technology driven environment has made employee retention mind-boggling. The fast pacing change across the globe has made the new employee & employer relationship irreversible. However all corporations not only in IT sector but also traditional manufacturing sector are attempting to stem attrition. This paper attempts to unravel this paradox & study the various facets that surround this burning issue.
Framework of employee retention
Factors causing employee turn over
Measuring employee retention
5 WAYS TO RETAIN TALENT
FRAMEWORK OF EMPLOYEE RETENTION
The entire process of keeping talent is built on a framework consisting of three enmrsshyamy@yahoo.comtities.
The present times have seen a radical change in the style of work. The basic value system of an individual has changed. In this competitive environment the corporate body must reassert itself. The very entity called corporation is to be explicitly understood. The organizational approach to staffing, its ethics policy, and compensation package, fringe benefits even the pathos of the organization can be turned towards its advantage. The manner in which a corporation portrays its image is the beginning of the talent keeping process.
The employee was once treated merely as an asset, but today he is treated as family as a unique individual. His aspirations, goals, ambitions, are all given pivotal importance. This is the new employee arrangement that governs the market of today.
This is the very ground on which both the employee & organization meet. Sound understanding of market structure, the emergence of intermediaries, their economic implications, the government policy. This defines the very environment in which the organization functions.
FACTORS CAUSING EMPLOYEE TURN OVER
In the new market orientation the employee is no longer in a work for lifetime mindset. This is the pull factor. Though a survey shows that the employees give their vote to stability. The main reason to move is the lack of interest, frustration at work, lack of communication. The push factor is the actual culprit in employee turnover. The employee must have satisfaction of work. Lack of proper delegation, miscommunications about nature of work lead to state monotony. Often there is a mismatch between the work & the employee. This further escalates the tension. Often we find problems between the employee & the employer. Here bad leadership leads to bad management. At other times there are internal problems between employee & employee. This results because there is no proper coordination between various departments. The lack of bonding in the organization fosters a sense of resentment, which slowly poisons the minds of the employee.
MEASURING EMPLOYEE TURNOVER
It is imperative that employee turnover be quantified. This enables us to understand the magnitude of damage caused. Employee turnover then be measured by taking into account the total number of employees that left the organization in a said period. This should include retirement, redundancy, and dismissal, those who leave on their own will. Estimating the cost is also a useful factor. Surprisingly at present less than 10% of companies calculate employee turnover. The costs to be taken into account are
1. Administration costs
2. Recruitment costs
3. Selection costs
4. Induction cost of new employee
5. Cost of covering during period of vacancy
Total number of leavers over a period
Average of those employed x 100
5 WAYS TO RETAIN TALENT
EMPLOYEE RETENTION is treated like fire fighting whereas it should be like fireproofing. It all starts with the staffing. Today staffing is treated as a separate function. Organizations have to go all the way out to attract the talent & then retain it. One company had its interview room furnished with TV, DVD, laptops a fridge loaded with cool drinks & snacks. This is one way to win the employee over. A survey of top 100 companies shows that most people quit in the first 6 months of joining. So training is another area where the employer should make the employee feel welcome. A small welcome tea can be organized where the employee gets to meet his colleagues. His desk can be ready with visiting cards a family photo & other accessories. Introduction meetings by seniors emphasizing the core values & missions of the organization are a must. Discussing the pathos the company has been through also binds the employee. Clear-cut communication & appropriate delegation of work is required. The core idea is to foster a friendly work atmosphere. There is the “stickiness” factor as some term it. The environment should be so conductive that the employee just sticks to it.
EMPLOYEE ENGAGEMENT is directly linked to productivity at work place. This is the ultimate challenge faced my leaders today. Ensure that the goals are understandable by employees across the organization. Furnish clear-cut instructions about the task then see that the employee is provided with the required information, training, equipment, training to complete the task. LEADERS must be available at all times to clarify, supplement the employee’s doubts. Ensure transmission of information with total transparency. Leaders must give freedom to take decisions. DISTRIBUTED-LEADERSHIP should be practiced. The employee should be given freedom to decide with in framework then they will excel. The idea of keeping talent is also to ensure they give their best to the company. Top leaders should take active participation in the company. CEO’S having lunch with the employee, doors open to any employee all these aspects have long lasting impact on the employees.
FAIR REWARDS is a major aspect on the employee’s mind. Today’s generation works hard to create wealth for its betterment. There should be no preference given to cast creed or sex. Meritocracy should be the yardstick of measurement. Here preference is given to performance management not compensation management. The innovative pay-packages that include Flexi timings, health management, and study while u work are all part of the deal.
DEVELOPMENT means providing sponsorship for higher education, upgrading technological skill sets. Providing a platform to hone interests in other fields like art, music & sport help to unleash true potential of the employee. The leave during that period can be treated as work experience for determining promotion. Job assured when he returns. These strategies instill pride of work place in the mindset. This fosters loyalty & dedicated sense of purpose. Some organizations even sponsor travel expenses to meet guide while ensuing a PhD program. This is the sort employee empowerment that creates vibrancy in the work culture. The employee must be made to give his very best.
BASKET OF PROGRAMS
1. MENTORING/BUDDY/FRIENDS are those where senior employee provide guidance to younger staff. They motivate them to perform better. They also discuss ways & means to improve productivity. Friends are informal group that discuss issues like children, health problems, quality time with kids. This can be conducted online, one on one basis or telephonically.
2. GRIEVANCE CELL – an employee who is treated unfairly can challenge the manager’s decision & keep challenging the same progressively to the higher authority. The existence of this program must be made mandatory then it will be effective.
3. SERVICES like crèche, playground, and recreational facilities help the employees to unwind & kill stress.
4. IDEA –The suggestions from employees to improve productivity, change work culture are welcomed. It is made mandatory that each suggestion if not implemented must at least be acknowledged.
5. CELEBRATION – only big success calls for party no! Surprise high tea parties, small outings and sporting events keep the spirit alive. The way to maintain vibrancy at work is fueled by ones imagination.
A survey of the leading companies shows that only 59% of the employees plan to stay with their employers. It only goes to show that we can try harder to make our place GREAT WORK PLACE.
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