Employee Retention

 Employee Retention The Good, The Bad, and How to Make It Great

Figure 1: Employee Retention strategies That Work

Introduction 

The company grappling with the departure of critical employees and encountering challenge in hiring skilled and qualified talent? Then it is the right time to know the reason. The success of any organization heavily relies on its ability to retain top talents and efficiently hire the right talent (Davenport, Harris and Shapiro, 2010). The employee turnover significantly impacts the stability and productivity of the company. In this blog it will explore the importance of staff retention.

The Pros and Cons of Employee Retention


Staff retention comes with numerous benefits for organizations striving to maintain a cohesive and productive team.


Video source: (www.youtube.com, n.d.)

  1. Enhanced Team Cohesion and Productivity: It’s not the days it’s the years of experience that matters. They develop strong working relationships and a deeper understanding of their and team strengths and weaknesses. This enhanced cohesion fosters effective collaboration, resulting in increased productivity and better overall outcomes.
  2. Preservation of Institutional Knowledge and Expertise: Retaining seasoned employees engenders the preservation of invaluable institutional knowledge and expertise. Over time, these employees accumulate a profound understanding of organizational intricacies, which is instrumental in ensuring the continuity of critical operations (Schmitt, Borzillo and Probst, 2011).
  3. Institutional Stability and Consistency: A prevalent workforce characterized by tenure and stability imparts a sense of continuity and constancy to the organization. This stability can be reassuring not only to employees but also to stakeholders and investors for the growth of the organization.
  4. Competitive Market Dynamics: In today's highly competitive job market, attracting skilled professionals can be a daunting task. Companies must continuously strive to create an attractive work environment and comprehensive compensation packages to overcome the allure of external opportunities. This will give the organization the edge over their competitors.
  5. Cost Effectiveness in Training and Development: Sustaining the tenure of experienced employees yields cost savings by mitigating expenses related to recurrent retraining and on boarding of new personnel. As these employees already possess institutional knowledge, they require less time and resources to adapt to their roles, ultimately enhancing the organization's bottom line and delivering a quality product or outcome.

Unveiling the Hidden Cons of Long-Term Employee Retention


Figure 2: The Downsides to High Employee Retention

  1. Resistance to Change: Employee resistance to change is a common challenge faced by organizations when implementing new processes or technologies. This resistance can be attributed to various factors, such as fear of the unknown, concerns about job security, and the disruption of established routines (White, 2009). Employees with positive mindset will adapt to change that will benefit them as well as the organization.
  2. Persistence of Negative Employees:  Retaining the wrong skill and employee with negativity will hinder an organization from achieving organization-wide goals, productivity, increased employee turnover, and loss of profitability.
  3. Career Growth Expectations: Employees will expect growth even if they retain in their comfort zone just because of the tenure in the organization which might demotivate talented employees with less to seek opportunities elsewhere.
  4. Balancing Cultural Competence and Attracting New Talent: Cultivating a diverse organizational culture can prove challenging in the absence of a turnover rate sufficient to facilitate the integration of new hires. The team will be stagnant without new hires to bring in innovation ideas.
  5. Succession Planning Procrastination: Succession planning will not be a priority when HR doesn't feel a pressing need, which could leave the company unprepared when a critical employee leaves.

Employee Retention Strategies

To retain top talent, organizations should focus on providing opportunities for growth and development, recognizing and rewarding outstanding performance, fostering a positive work culture, and offering competitive compensation and benefits (Sorn et al., 2023). Effective talent retention strategies help ensure that valuable employees stay committed and contribute to the organization's long-term success.

Figure 3: Employee Retention Strategy

Conclusion

 

Employee retention overwhelmingly provides advantages to organizations by promoting stability, fostering a skilled workforce, and reducing turnover costs (Sepahvand and Khodashahri, 2021). While there may be occasional challenges, the substantial benefits of retaining employees outweigh the disadvantages. Furthermore, by investing in employee retention strategies, organizations are not only promoting stability and a skilled workforce but also fostering a culture of loyalty, commitment, and institutional knowledge. This, in turn, can lead to higher employee morale and engagement, improved customer satisfaction, and a stronger employer brand. While there may be occasional challenges associated with employee retention, the long-term advantages, including cost savings and a competitive edge in the talent market, make it a sound strategic choice for any forward-thinking organization.


 Reference list


Davenport, T., Harris, J. and Shapiro, J. (2010). Competing on Talent Analytics What the best companies know about their people- and how they use that information to outperform rivals. [online]
Available at: https://workplaceif.com/wpontent/uploads/2017/09/HBR_Competing_on_Talent_Analytics.
[Accessed 20 October 2023].

Schmitt, A., Borzillo, S. and Probst, G. (2011). Don’t let knowledge walk away: Knowledge retention during employee downsizing. Management Learning. [online]
Available at: https://doi.org/10.1177/1350507611411630.
[Accessed 20 October 2023].

Sepahvand, R. and Khodashahri, R. (2021). Strategic Human Resource Management Practices and Employee Retention: A Study of the Moderating Role of Job Engagement. Iranian Journal of Management Studies (IJMS), [online] 
Available at: https://ijms.ut.ac.ir/article_77898_cc4bddd9347ad4df4964a04c20bedace.pdf.
[Accessed 20 October 2023].

Sorn, M.K., Fienena, A.R.L., Ali, Y., Rafay, M. and Fu, G. (2023). The Effectiveness of Compensation in Maintaining Employee Retention. Open Access Library Journal. [online]
Available at: https://doi.org/10.4236/oalib.1110394.
[Accessed 20 October 2023].

White, A. (2009). From Comfort Zone to Performance Management A L A S D A I R W H I T E Understanding development & performance. [online]
Availableat:https://gingermood.com/wp-content/uploads/2019/07/White-A.-2009.-From-comfort-zone-to-performance-management.-White-MacLean-Publishing.-.pdf.
[Accessed 20 October 2023]. 

www.youtube.com. (n.d.). YouTube. [online]
Available at: https://www.youtube.com/embed/csQAQbb9FAc?feature=oembed.
[Accessed 20 October 2023].

Comments

  1. Manthika SK22 October 2023 at 01:14

    Retention is the topic specially these days in Sri Lankan organisations as all our talent look to go abroad. Worthy blog. Thank you

    ReplyDelete
  2. HRMBAPriyantha22 October 2023 at 01:16

    Its Valuable details.i learned a lot from it.

    ReplyDelete
  3. S P Sappani MBA2922 October 2023 at 05:12

    Good topic in current situation.

    ReplyDelete
  4. Bimesha22 October 2023 at 08:39

    interesting topic,all the best for another blogs..

    ReplyDelete
  5. HR MAB Fazil Farook 202322 October 2023 at 13:19

    Great blog about Employee Retention with a lot of information in a limited scope.

    ReplyDelete
  6. Aravinda Fernando MBA2923 October 2023 at 04:27

    One of the Most required, most discussed and most important factor. Great blog with vivid points.

    ReplyDelete
  7. Zeinab Ahamed HRMBA23 October 2023 at 05:02

    A clear and concise overview of employee retention Proficiently highlighted its pros and cons.

    ReplyDelete
  8. Merril John23 October 2023 at 07:24

    A study by Employee Benefits News on employee retention found that the average cost of losing an employee is a staggering 33% of their annual salary. In other words, when an employee leaves, you haven’t just lost talent or time. You’ve lost valuable funding for your company.

    ReplyDelete
  9. Janaka Bandaranayaka24 October 2023 at 05:44

    Employee retention is the ability of an organization to keep its employees. It is a critical metric for businesses of all sizes, as high turnover can lead to a number of negative consequences, including:

    Increased costs associated with hiring and training new employees
    Decreased productivity
    Loss of institutional knowledge
    Lower morale

    Good One...Thanks

    ReplyDelete
  10. Rasika Gardihewa27 October 2023 at 18:07

    The blog post offers a thorough exploration of the critical topic of employee retention. The detailed breakdown of pros and cons, along with the strategies highlighted, provides valuable insights for organizations grappling with workforce stability. The inclusion of real challenges faced in retention, such as resistance to change and succession planning, adds depth to the analysis. The conclusion aptly emphasizes the long-term benefits, making a compelling case for investing in employee retention strategies. Well done on presenting a balanced and informative perspective on this essential aspect of organizational success! Great Post!

    ReplyDelete
  11. Anonymous27 October 2023 at 19:22

    Employee Retention is a powerful tool of HRM its create productive teems in organizations.This article Explain that.Well done.

    ReplyDelete
  12. Shamika Wijesinghe28 October 2023 at 00:30

    Well-rounded insights for navigating the complexities of talent retention. Kudos to the author!

    ReplyDelete
  13. HR Insight Hub - Bhagya Suraweera29 October 2023 at 11:46

    This blog serves as a valuable resource for businesses looking to enhance their employee retention practices and offers a well-rounded perspective on the topic

    ReplyDelete
  14. Deshani Kannangara4 November 2023 at 04:06

    A timely and a broad topic, but you have explained it in a smooth and well-organized manner. Keep up the good work!

    ReplyDelete
  15. Sujeewa Wimalasena28 November 2023 at 23:11

    It is a well-written and informative piece that provides valuable insights into employee retention. It provides practical guidance and encouragement, and it can help to retain skilled and qualified employees in the organization. Thank you for Sharing!

    ReplyDelete
  16. Noora Kamil MBA 291 December 2023 at 09:01

    The ability of an organization to reduce employee turnover, or the number of workers who quit their jobs either voluntarily or involuntarily, is known as employee retention. The performance and success of businesses are directly impacted by raising employee retention.

    ReplyDelete
  17. Anonymous1 December 2023 at 22:01

    To retain top talent, organizations should focus on providing opportunities for growth and development of employees because an employee retention strategy is paramount. It is not easy to find the right talent, one with the right education levels, skill sets, and other personality traits suited to the organization. when employees want to leave after making all of this effort, it becomes even harder for an organization. good topic.

    ReplyDelete
  18. Roshani_HR_MBA_B291 December 2023 at 22:47

    great insight information, a key component of successful human resource management and organizational performance is employee retention. this blog post, it clearly explained the advantages, disadvantages, and methods for achieving excellent staff retention.

    ReplyDelete
  19. Anuradhi Welideniya3 December 2023 at 08:54

    Your blog on employee retention in HR is a valuable resource, offering practical insights for fostering a supportive culture. Well-articulated strategies that resonate with the importance of retaining talent. Great Work!

    ReplyDelete

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