Free Employee Retention Essay Sample
|← CEO Decisions||Investment and Risk →|
Buy Cheap Employee Retention Essay
Unemployment rates in the UK in 2010 may be at peak levels, but this does not deter employees from resigning. In 2009, the rate of resignation in the UK was 7.8% and this year it is 10.3% (Hasslet). Research conducted by Pricewaterhouse Coopers, shows that if the UK economy can get the best means to retain employees they can save up to £42 billion per year (Hasslet). These are the costs incurred in resignation administration, selection, recruitment, induction training for the new workers, productivity and lost skills (Lowe). This problem of resignation is clearly a management issue and it needs to be tackled effectively and urgently.
There are discrepancies in turnover levels between industries. Highest rates of turnover are prominent in private sector jobs like catering, call centers, leisure, and retailing. Regions that have the lowest unemployment rates have also high turnovers. Turnover affects organizations that are located where skills are rare, recruitment is expensive, and there is a long duration before a vacancy is filled. Losing employees to direct competitors is a problem because a business can be forced to close down. Although one employee can leave and a more qualified person files his vacancy, this can motivate other people to move on.
Employee retention can be measured using the stability index. This is calculated by dividing the number
Number of workers who have worked for 12 months or more x 100
Total number of workers in the same post one 12 months ago
People leave their current jobs because of a new attractive package in another company. The other reason could be dissatisfaction with their current jobs and the need to for a "better" alternative. The other major reason is dynamic domestic circumstances that the employer cannot influence. The most significant reason that is masked is the poor relations between line managers and employees. The behavior of managers greatly influences staff engagement, performance, advocacy, and job satisfaction. Lack of career development for instance further training also plays a key role in resignation.
It is wise to note that getting true information on reasons for exit is extremely hard. A company should hire external services to carry out exit interviews. Employees should be assured of confidentiality and the aim of the interview should be revealed. The names of those interviewed should remain anonymous for the sake of protection of privacy. The other way is to perform confidential surveys that have questions that reveal the employees intention to leave.
The data collected from exit interviews should help an organization to design a strategy that will enhance employee retention (Lowe). Employees should also investigate why employers in groups that are hard to recruit are leaving. It is also significant to know the costs of employee turnover in your organization. Line managers should be accountable for turnover of their staff. Good managers who keep teams intact should be rewarded. They should be trained continually on management skills that enhance good working relations. At the recruitment stage, recruiters should give the exact job specifications and expectations. Attitude surveys should be used to consult the problems of employees. If there is no channel of expressing dissatisfaction, exit is the only solution. An organization should be flexible and put up with personal preferences on working times. A good management should not have the poor culture of working for longer hours than usual to please the management. Employers should be given job security and uncertainty should be highly avoided. If the job is insecure, people will tend to leave it in search of a stable and secure job. All employees should be fairly treated and given equal opportunities in career advancement and training. Any perception of unfairness is one of the leading causes of exit. It is always wise to seal all the exit loopholes and protect your organization against infiltration by recruiters who want to poach the best staff.