Employee Retention Practices
According to Armstrong, (2006), employee retention refers to how an
organization keeps their employees from leaving the organization thus coming
up with retention strategies to ensure that employees remain in the company.
Research shows that HR practices can be especially powerful in enabling an
organisation to achieve its retention goals. These practices includes:
Recruitment, Selection, Socialization Training and Development, compensation
and rewards, employee engagement Griffeth, R. W, (2002). Yazinski, (2009),
in his study gives a brief review of the twelve retention factors working
towards the preservation of an organizations most valuable asset – skill
recognition, learning and working climate, job flexibility cost effectiveness,
Training, benefits, career development compensation organisation
commitment, communication, Employee Motivation, Conduct of stay and exit
interviews caring management and culture.
Recruitment and Selection
Labour market shortages and recruitment difficulties have led to a more
competitive recruitment market in the last decade. Lievens, van Dam and
Anderson (2002) asserted that the war for talent meant that the emphasis in
organisations moved from the selection to the attraction of employees.
Recruitment “includes those practices and activities carried out by the
organisation with the primary purpose of identifying and attracting potential
employees” Breaugh& Starke, (2000) and has long been regarded as an
important part of human resource management as it performs the essential
function of drawing an important resource - human capital- into the
organisation (Barber, 1998). The strategic significance of recruitment is often
reported in the literature Boxall and Purcell, (2003), the emphasis being upon
the need to attract and retain high quality people in order to gain a
competitive advantage, as is consistent with the resource-based view Barney,
(1991); Barney and Wright, (1998); (Wright and McMahon, 1992).
Recruitment and selection play a pivotal role in service delivery. If utilized
efficiently it can be cost effective in more than one way. From a managers
point of view the objective is to get the maximum return on investment from
human capital. Investments, such as salaries, cost of recruitment, training,
fringe benefits, are expected to be returned in the form of profits or some sort
of increase in the bottom-line. Hammersak, (2002) explained that star
performers usually return three to seven times their salary‟s worth in
productivity. If the right person is appointed, training cost will be minimised,
breaks in delivery decreased, and production or service increased, putting the
organisation in a position of achieving its key performance objectives of:
dependability, cost, speed and quality (Slack, Chamber and Johnson, 2001).
Training and Development
Some observers worry about raining and development opportunities may be
double- edged sword. This is due to the fact that training can necessitate
employee leaving due to added skills. In the other hand people in certain jobs
that require constant updating of skills such as Information Technology might
leave if they have no options for strengthening those skills, Sommer, R.D
(2000). It calls for organisation therefore to be keen to formulate and
implement retention practices to avoid their trained employees from leaving
immediately after training.
Investment on employee Training and career development is considered
important factor in employee retention. Organization has the incentive to make
investment in form of training & development only on those workers, from
whom organization expect to return and give output on its investment.
According to Clark, (2001), organizations are intensification development for
talented employees, through proficiency analysis, input on employee interests,
need development and multisource appraisal of capabilities and formulate plans
for action. Wetland, (2003), suggested that firms and individual made
investment on human capital in the form of training. Training enhances the
skills of employees. When employees are hired to enhance the skill,
organization needs to start training program. According to Parker & Wright,
(2001) employees have perception to acquire new knowledge and skills which
they apply on the job and also share with other employees.
Gomez et al.,(2005) posits that training provides specialized technique and
skills to employee and also helps to rectify deficiencies in employee
performance, while development provide the skills and abilities to employee
which will need the organization in future. Development of skill consists of
improving interpersonal communication, technological knowledge, problem
solving and basic literacy. Garg & Rastogi, (2006), explained that in today‟s
competitive environment feedback is essential for organizations from
employees and the more knowledge the employee learn, the more he or she will
perform and meet the global challenges of the market place. The availability for
all employees having access to training and development programs is critical in
facilitating organizational growth, particularly with performance and
technological improvements. Clark, (2001), recommends that training is a sign
of organization commitment to employees. Training also reflects organization
strategy that is based on value adding rather than cost lowering. Leading firms
of the industry recognized that comprehensive range of training, skill and
career development are the key factors of attraction and retention the form of
flexible, sophisticated and technological employees that firms strategy to
succeed in the computerized economy (Accenture, 2001).
Career Advancement Opportunities
Career Growth and development are the integral part of every individual‟s
career. If employees cannot foresee their path of career development in their
current organization, there are chances that they will leave the organization as
soon as they get an opportunity, (Bratton & Gold, 2003). The important factors
in employee growth that an employee looks for himself are work profile,
personal growth and dreams, and training and development. Career
development is vital for both the employees and employers. Career
development is mutual beneficial process because it gives imperative
outcomes to employer and employees. To gain and maintain competitive
advantage organizations required talented and productive employees and these
employees need career development to enhance and cultivate their
competencies, (Prince, 2005).
Employee’s career advancement is a phenomenon which is formalized,
organized and it is planned effort to accomplish the balance between
requirement of organization workforce and individual career needs. The rapidly
rising awareness makes it evidence that employees can give leading edge to the
organization in market place. It is a challenge for today human resource
managers to identify the organization developmental strategies which
enthusiasts the employee commitment to the organization vision and values to
motivate the employees and help the organization to gain and sustain the
competitive advantage (Gomez et al.,2005). Greller, (2006) states that people
always work for a reason and the cause should be provided by work,
organization, co-workers or from within. Findings showed that when
employees want to advance in their careers, a motivational factor, it does not
matter how old one is, a lot of stay in the organization as a way to advance.
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