“Train people well enough so they can leave, Treat them well enough so they don’t want to.”
By Richard Branson
The above quote by Sir Richard Branson provide us so deep inspiration and knowledge that we generally don’t think. Earlier employees were regarded as machines or tools but now they are considered as an asset to the organisation. Really these employees are an asset to the organisation as employees are the major contributors to profit and worth of the organisation. The greatest investment we can make is in people. They are considered as the backbone of any organisation. Without employees no organisation can think of its success and even it’s not possible too. As said by Peter Drucker in 1999 – ” The most valuable assets of a 20th century company were its production equipment, The most valuable assets of a 21st century institution, whether business or non – business, will be its knowledge workers and their productivity.” These words by Peter Drucker can be clearly seen in the present scenario. But retaining these potential employees is also a big problem. So first we should know what is employee retention. In layman’s term employee retention means the ability of an organisation to retain its employees so that they don’t quit their jobs. It is very important for an organisation to retain its employees as an organisation has invested a lot of time, money and effort on these employees. And if they leave the organisation the company has to bear the losses and also has to recruit new employees and again they have to invest time, money and effort on these new employees to make them fit for the new job. So retaining the employee is a tough task for HR. There are many factors affecting employee retention they are –
- Training- Employee Retention starts from day one itself. As from the starting day itself employees think whether he or she want to stay or leave. So training plays an important role in retention of employees. As training is a very essential part in any organisation as training is a learning process in which an employee get an opportunity to develop skills, knowledge and competency as per the job requirements. Through training an organisation invest in its employees in order to make them competent enough and help its employees to sustain in this dynamic environment. In the same way, through this training employees develop a greater sense of self – worth as now they became more valuable to the organisation and hence employees develop a sense of belongingness.
- Compensation- Compensation is the most important factor. As this can only determine whether the employee will stay or leave. After we hire an employee, compensation and benefits is the only part which can help in retention and motivation. As, if the employee feels that he or she is receiving a good package from your organisation he or she will work hard or otherwise they will leave. So compensation and benefits have direct impact on retention.
- Relationship between Manager and Employee- Employee- manager relationship is very crucial and important. As a poor relation between the two can lead to employee attrition. There are some employees for whom relations matter a lot than any other things like compensation and benefits, rewards and recognition. So, the relationship between the two should be nice.
- Recognition and Rewards- Everybody in this world like to get rewards and recognised by someone. By employee recognition we mean highlighting the positive efforts and achievements in the workplace. This may include both personal traits and professional achievements. As through rewarding and recognising our employee we can foster a sense of engagement with the work. This will motivate them to work hard and stay in the organisation.
- Work-life Balance- It is very important for an organisation to retain its top – performing employees. Not only salary, but work environment is also a factor which may distract your employees that whether they want to stay or leave. There are many types of work – life balance arrangements like Flextime, Job-sharing and Part-time work. An organisation should provide these facilities to retain them.
Last But not the Least
Retention and Turnover affects everyone in the organisation. It is not always possible that you can retain each and everyone. One or other will leave the organisation sooner or later. Handling employee retention is not an easy task. The only thing you can do is try to improvise your employee retention strategies from time to time according to your requirement and need. On this note, keep your team happy, healthy and safe.