Employee retention is a process in which the employees are encouraged. Employee retention is critical in most organizations today. In previous researches a number of factors associated with employee retention have been identified. Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs.
Review what literature and past research tells us about. A strategic approach to employee retention by john gering and john conner, phd, ma n september 2000, paul rutledge, president, midamerica division of hca, nashville, tennessee, initiated action to become the employer of choice. The theories and determinants of teacher attrition and retention by tuan d. Applying a motivation theory model, such as maslows hierarchy of needs, is an effective way of identifying effective retention protocol. Human resources, employee retention, job satisfaction, literature. Generally, expectancy theory can be used to predict behavior in any situation in which a choice between two. It then goes on to describe the scenario of employee turnover and retention in indian nonprofit organizations. Next, the motivation theories of abraham maslow, frederik herzberg and victor vroom will be explained in detail. Pdf the role of traditional motivation theories on employee.
The chapter ends with identification of problem areas and research gaps in the context of employee turnover and retention in nonprofit sector. Employee retention techniques go a long way in motivating the employees for them to enjoy their work and avoid changing jobs frequently. Get our twiceweekly updates on the key trends you need to know. International journal of management science and business administration, 33, pp. Conceptual framework employee turnover, as defined by hom and griffeth 1994, is voluntary terminations of members from organizations. It attempts to relate some of the factors discovered to major theories such as the employee equity model, herzbergs twofactor theory and the job embeddedness theory. Identify and understand turnover and retention issues related to the general workplace. A guide to analyzing and managing employee turnover reducing turnover at american home shield american home shield, the major appliance warranty arm of servicemaster, is based in.
The findings show that motivation factors are vital instrument of retaining employees in public organization. The topic of employee motivation and retention is a complicated issue, which is given by the individuality of each person and reflects not only the specific needs of each person, but sometimes even their very different rating in terms of importance. Arruda is clinical director of critical care at william w. The example output below shows the results of an employee satisfaction study run for a large corporation. There are many motivation theories that attempt to explain peoples motivation or lack of motivation at work. These theories of motivation help the employers to motivate the employees from the employees day to day grievances. A retention plan normally consists of survey and exit interview analysis, any current plans and strengths and weaknesses of those plans, the goal of the retention plan, and finally, the specific strategies to be implemented. The investigation into existing literature of voluntary employee turnover and retention practices will be con.
Businesses invest a significant amount of time, effort and resources into their employees, from hiring to training and motivation. Employee participation and employee retention in view of. Furthermore, the use job embeddedness theory may help to better understand the relationship. Effect of employee retentions factors on organizational competence employee retention is a major issue in todays era of business environment. Boosting employee retention with predictive analytics. Compensation as a retention strategy microfinance gateway. Retention theories employee retention motivation scribd. We believe that the leader plays a key role in employee retention and retention management. The loss of employees not only removes talent from a business, it also represents a loss of the company resources invested in the employee.
Employee retention theory is philosophy centered on considering why employees leave a company and what can be done to keep them. It explores changes in employee preferences between years 2011 and 20. Could theories on employee retention be totally wrong. The role of benefits in employee motivation and retention. Learning objectives understand why turnover of child welfare workers is a problem. Within any organization, employees continually change jobs, receive raises, are promoted, or change their marital status. D scholar management 20142017 kalinga university, raipur, c. After running regressions of the individual questions on the employee survey, the results show attitudes that are positively and negatively related to employee retention. This study also provides aretention model based on motivation theories to enhance. This thesis explores the factors that can significantly impact employee retention in an organisation. Employee retention is a hot topic for business leaders. Employee retention is beneficial for the organization as well as the employee.
Finding good people is getting harder and especially for smbs. A study of effect of employee retention on organizational. Factors affecting employee retention at the university of. It is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. The impact of employee benefits as retention strategy in a. Good managers use a process approach to solving problems. Pdf integrating herzberg and social exchange theories to. In kenya few studies have been done on employee retention. They help organizations to understand the best practices for keeping employees. Instead of letting talent walk out the door, do something by implementing a retention program that becomes part of your company culture. Many researchers approached employee retention using a group of individual factors such as employee motivation 4, job satisfaction 1, and organizational culture 5. Without talented and well integrated people, the organization can never experience long term success gentry et. Experts have developed several employee retention theories to help companies retain their employees. However, many consider employee retention as relating to the efforts by which employers attempt to retain the employees in.
Based on empirical research, supplemented by the roundtable method, this article determines the significance of the benefits for employee motivation and retention as one of many factors. In the behavioural theory, he explains have two distinct varieties those are task oriented management style and relationship oriented style of management. Introduction longterm health and success of any organization depends upon the retention of key employees. Hence, it is important for companies to understand the goals of their employees and if they match those of the organizations. An immense research attempted to study the influence of leadership number of studies have been done in employee retention. Employee retention involves various steps taken to retain an employee who wishes to move on. A retention strategy should specify a quantified prtjblem and measurable objectives. The influence of employee benefits on retention at. Employee motivation herzbergs theory frederick herzberga s theory of motivation is commonly based upon two important factors of motivation such as hygiene factors and motivation factors. However, the study analyzed retention on the basis of individual factors basis. Employee retention is a process in which the employees are encouraged to remain with. This study discusses the significance of motivation on employee retention. Maybe employees will soon barge through the doors and board shuttle busses to the bmw dealerships, software bugs be damned.
It has been accepted for inclusion in this collection by an authorized administrator. This presents the major theories and research findings. If one or all of those needs are not met, employees may seek employment elsewhere. This is due to the fact that employee turnover is high as employees look for jobs elsewhere that have offer better packages or employees end up being headhunted by rival companies which ends in making the organization loose skilled employees. Employee retention strategies, theories, models hrzone. Employee retention by motivation academic publishing platforms. This research will give further understanding about how competency mapping, employee engagement, performance management and career development affect in employee s job retention. Employee retention is ranked as the second most important business. Retaining employees is an important goal of every organization. Expectancy theory holds that people are motivated to behave in ways that produce desired combinations of expected outcomes. Interpersonal relationships guanxi are still important in the informal chinese social networks, based on individual trustworthiness. Employee retention strategies for generation y nicholas w.
Employee retention is the organizations goal to keep talented and skilled employees. Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Open communication, employee reward program, career development program, performance based bonus, recreation facilities, gifts at. A qualitative study of 369 child welfare professionals perspectives about factors contributing to employee retention and turnover. Employee retention digital article bye, bye, organization guy. Employee retention models and factors affecting employees. Retaining best talents is a common challenge for most organizations. Compensation as a retention strategy executive summary in todays globalized economy, the importance of opportunities for growth, advancement, and worklife balance in the office vary from employee to employee. An employee must find his job challenging and as per his interest to excel at work and stay with the organization for a longer period of time. The theory argues that employees must be fully satisfied by lowerlevel needs before they can move to highorder ones maslow, 1954. Results of pearson correlation analysis indicate in table 1 that employee retention was positively correlated with salary, delegative participation, consultative participation, worker director, and worker union. How responsive is the employees to motivational reward adopted by the company.
Retention has a direct and causal relationship with employee needs and motivation. The importance of employees motivation on organizational effectiveness is also discussed shortly. In another study, herzbergs theory was used for studying. The impact of employee benefits as retention strategy in a concept dining restaurant chain in india masters in arts in human resource management by. Overview back in the 1990s, fitzenz 1990 observed that employee commitment and retention is not determined by a single issue but by a cluster of factors 6. Increasingly, companies have been hearing dismal employee engagement numbers from polls from established sources like gallup, which show that 70% of american workers and a slightly higher percentage of the millennial generation do not feel engaged at work. Njoroge 2007 did a survey of factors that influence employee retention in manufacturing firms in nairobi and established that employee retention in the manufacturing industry was influenced by the reward, working environment, career development. Assessing elements of employee retention in child welfare. Employee motivation herzbergs theory tutorialspoint. In both processes, organisational determinant variables play a vital role due to their effect on satisfaction, which is a major predictor of employee and student retention. Thereafter follows a discussion on employee turnover and retention in nonprofit organizations. Assessing elements of employee retention in child welfare 4 ce hours by.
Theories of motivation and their application in organizations. Herzberg believed that the two dimensions of job satisfaction are dissatisfiers he called them hygiene issues and satisfiers, also called motivators. According to peltokorpi, allen and froese 2015, the employee turnover is the rotation of employees around available job position. Previous tactical programs to retain employees had proven to be ineffective. Pdf leadership theories influencing employee retention dr. As weve seen, the ease with which the individual can leave an employer plays a role in the persons choices. Employee retention can be represented by a simple statistic for example, a retention rate of 80% usually indicates that an organization kept 80% of its employees in a given period. Employee retention strategies an empirical research by dr. Encouraging employees to remain in the organization for a long period of time can be termed as employee retention. Provides a retailing context in which employee retention. Integrating herzberg and social exchange theories to underpinned human resource practices, leadership style and employee retention in health sector article pdf available may 2017 with 3,043 reads. You can set up your system to store historical records of the employee information. Nguyen dissertation submitted to the faculty of the graduate school of vanderbilt university in partial fulfillment of the requirements for the degree of doctor of philosophy in leadership and policy studies june 30, 2018 nashville, tennessee approved. This guide will help inspire an effective retention.
Factors influencing child welfare employee s turnover. Leaders are in charge of their employees either remain or leave the organization subsequently leadership winds up one of the components impacting employee retention. Employee retention, hrm practices, leadership styles. Basic theories of motivation and talent retention approaches.
However, many consider employee retention as relating to the efforts by which employers attempt to retain the employees in their workforce. As mentioned before, employee retention at the age of uncertainty is one of the most discussed issue in the area of hr management. Employees retention, hrm practices, job embeddedness theory. The impact of employee engagement factors and job satisfaction on turnover intent. According to bean 1980, student attrition is analogous to employee turnover and both employees and students leave for similar reasons. The theory explains that if the goals of an employee are aligned to those of the company, the retention rate is high. Retention through motivation is one of a critical success factor of an organization. Retention learn how to deploy effective employee retention techniques to avoid high levels of turnover. Role of motivation in employee retention employee retention involves various steps taken to retain an employee who wishes to move on.
The famous theory of douglas mcgregor the differentiates between theory x and y defines the two extreme styles of leadership and its effect on the employee retention in an organization. The concept of retention management can both have a narrow, and a broader significance. Even though all types of the organizations are now a days, found to be technology driven, yet human resources. Overview of student retention theories, strategies, and. Abstract human resources are the livelihood of all types of an organization. Knowledge and influencing factors of employee retention. A study of manufacturing companies in nnewi international journal of managerial studies and research ijmsr page 9 2. The role of benefits in employee motivation and retention in. Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until.
The literature surveyed by this study mention employee motivation, job satisfaction and job embeddedness as the main factors that influence employee retention rates. Basic theories of motivation and talent retention approaches management essay. There isnt a one size fits all approach to retention planning, so the research component is essential to formulate a plan that will make a difference in. Human is an essential asset that handles different assets of the organization. An employee retention program erp is said to be effective when a systematic effort is made to create and foster an environment that encourages and supports employees to remain employed by maintaining strategies and practices in place that addresses their diverse needs. Those words start the first chapter in the estimable daniel pinks free agent nation, published in 2007. A strong retention strategy becomes a powerful recruitment tool. Pdf leadership theories influencing employee retention. It will bring insight on employees motivation and understanding of different motivational theories. To achieve worthwhile results, iecruiting and retaining good employees should be treated the same way.
Employee retention strategies an empirical research. Equity theory has been used in social studies to explain relationships. Overview of student retention theories, strategies, and practices at peer institutions in the following report, hanover research examines programs and initiatives employed at peer institutions to improve retention rates from first year to second year, and second year to third year, as well as graduation rates. Employee retention was negatively associated with gender, age, and qualification. The primary objective of this study is to provide an assemblage of traditional motivation theories that influence employee retention. Pdf the role of traditional motivation theories on. After we have an understanding of why employees leave and employee satisfaction theories, research is our next step in developing a retention plan that will work for your organization. For a lower employee retention, you need to nurture and engage your talent to stop them from leaving. The paper concludes that employee retention can be practiced better by motivating the employees in the following aspects. The perspective of job embeddedness theory article pdf available may 2016 with 5,974 reads how we measure reads. The theories and determinants of teacher attrition and retention. They are not the ones who dont have good opportunities in hand.