Influence of Employee Retention Strategies on Quality of Service Delivery Employees in
all facet of life play a central role in ensuring that the organization delivers on its mandates, if
employees leave, meeting the organizational needs may have negative effect on the quality
of service provided to service beneficiaries. The creation of decent working conditions was
non existence, deficiencies in staff had depressing effect on the provision of services,
hindrance in concluding the new recruitment structures, caused immense feeling of being
overworked. When employees leave an organization, turnover represent loss of skilled
employees, reduction in knowledge, decreased staff morale and increased workloads.
The interviewees stated that the escalation in the rate of labour turnover is a major concern for
businesses and is clearly impacting on organisational performance. Clients begin to doubt the
management of such an organisation and unsure whether they should continue to do business
with an organisation with higher staff turnover.
Effect of Retention Strategies at KPLC on Efficiency Of Service Delivery High staff
turnover rate may jeopardize efforts to attain organizational objectives. In addition, when
an organization loses a critical employee, there is negative impact on innovation,
consistency in providing service to guests may be jeopardized and major delays in the
delivery of services to customers may occur.
The interviewee indicated that the impact of staff turnover results in an extra work load for
the remaining staff member’s performance and on organizational effectiveness. Staff
turnover is costly and disruptive. Costly, as it reduces the output and disruptive, as it requires
that schedules and programs to be modified. Turnover causes the organization to lose a lot of
money because they have to employ other agency staff to come and help. The agency staff is
paid from the organization’s coffers and it becomes very expensive.
Retention Strategies and Achievement of the Organization’s Objectives
A strong retention strategy eventually becomes a powerful recruitment tool. Employee ret
ention matters as training, time, investment, lost knowledge and candidate search are involved
in recruitment of a new employee. Hence, these employees are extremely crucial to the
organization since their value to the organization is essentially intangible and not easily
replicated.
Retaining employees is the key issue in current business environment. Without well
incorporated staff in the organization and putting their greatest effort, success can never be
long term. Problems existing in the personnel or in a sense human capital, have unforeseen
influences that cause troubles with training, planning and decision making. So it clarifies the
reason why employees leave the organizations
Employee retention involves taking measures to encourage employees to remain in the
organization for the maximum time period. Employees turnover often results in a drain on
management time and creates pressures in the workforce palnning, intaggible costs which
include: negative impact on employees morale, adverse effect on social capital and erosion
of organizational memory.
Retention Strategies Helps in Reducing the Cost of Turnover
Major cost to organizations is due to more employees quitting the job, these quit rates
raise labor costs. And lower organizational performance. The cost of replacing an
employee ranges from 29% (non-management) to 46% (management) of the person’s
annual salary. Then there are the sunk costs such as, induction and training expenses,
other administrative people costs incurred on the person, expenses are also incurred when
someone else does the per son’s job in the interim, leading to the domino effect on
employee cost.
Effect of Employee Retention Strategies on Acquisition of New Clients and
Maintenance of Old Clients
The interviewee indicated that customers' impressions of a business depend in large part
on the environment present in the workplace. While managers may have a preference as
to how their workplace will feel, employees are the ones who actually set the scene.
Employees impact the business environment through the ways in which they interact with
each other as well as how they respond to customers. If employees behave in a
professional-yet-inviting manner, they may be better able to please customers and make
the business environment an inviting one.
It was found that employees who interact face-to-face with customers can ensure that
they are truly satisfied. To do this, however, employees must feel as if they are able to
make modifications to the general business practices to truly satisfy their customers. If
the employees feel compelled and empowered to meet customer needs, then there will be
higher levels of customer satisfaction and likely improved customer retention.
Effect of Employee Turnover Have On The Productivity of KPLC
The interviewee indicated that the costs of recruiting and engaging new members of staff
are considerable. He adds that this affects the direct costs like advertising, agency fees,
paper work and interview time. They added that there are many hidden or indirect costs,
like the expenses incurred in training and supervising new entrants, as well as those they
are replacing and overtime that may have to be paid during staff shortages. Other costs
may include increased wastage and losses while new staff settles in. Moreover, customer
irritation and low staffing morale leads to high staff turnover.
The interviewee indicated that the impact of staff turnover results in an extra work load
for the remaining staff member’s performance and on organizational effectiveness.
Employees have to work extra hours to compensate for the work of those that have
resigned. They continued to say that that cost is not only financial but must also be
measured in terms of the damage to staff morale and deficits in meeting customer
demand. The increased workload leads to low morale and high levels of stress which in
turn leads to absenteeism amongst employees.
Employee Retention Strategies Contributed To Revenue Margin of KPLC
It was noted that for the past three years there has been low turnover of staffs at KPLC
and therefore the revenues have increased. The interviewees indicated that high turnover
can be detrimental to the organization’s productivity. It results in the loss of business
patronage and relationships, and can even jeopardize the realization of organizational
goals. On the other hand, dysfunctional turnover that is, good performers leave, bad
performers stay damages the organization through decreased innovation, delayed
services, improper implementation of new programs and degenerated productivity. Such
activities can radically affect the ability of organizations to prosper in today’s competitive
economy, leaving even the most ambitious organizations unable to succeed due to their
inability to retain the right employees.
Turnover is not only destructive to organizations, it is also costly. Every time an
employee quits, a replacement must be recruited, selected, trained and permitted time on
the job to gain experience. Apart from the costs that are directly associated with
recruiting and training a new employee, other indirect costs exist.
Measures in Place KPLC to Enhance Performance
The interviewee indicated that they have put in place various factors of engagement and
employee retention that comprised of organization’s acceptance to satisfy personal needs
and family interests, offering career development opportunities, attractive salary
offerings, and intellectual challenges.
They went ahead and said that the organization initiates a learning environment aiming at
their particular organizational competence. Individual competencies are considered to be
the major concern to victory. They provide encouraging job settings where they think
they are making a differentiation and where of the staff in the organization is capable and
pulling together to create advancement in the organization.
They have a good reward system that rewards top performers and provide a good
working condition for their employees and therefore the retention rate is high. There is
also job security provided so that employees feel secure working in the organization.
Employee Retention Strategies Affects the Customer Base of KPLC
Retaining staff has positive effects on the customer base and company bottom line.
Employees that are happy in their work not only stay with the company and boost
productivity; they also can help maintain a happy customer base as well.
Retained employees that are given the resources necessary to do their jobs effectively and
present an intelligent and proactive image to customers. The company develops a
reputation as a positive company to do business with, and that kind of information will
travel through the marketplace and help you attract new clients.
Effect of High Turnover on The Firm’s Performance
Satisfied employees will create satisfied and loyal customers, which will result in higher
sales and, therefore, higher financial returns, Most of the time when these employees
move, they migrate to competing organizations with the knowledge and trade secrets
acquired from their former employers thereby creating an even more critical situation for
the latter. Customer satisfaction plays a key role in the health and future success of any
company. When customers are satisfied, they keep coming back to the same store and
invite their friends to do the same. Thus the profits of the company will increased due to
repeated customer who become loyal to the company and also refer other who will also
be well served and become attached to the organization.
The interviewee added that when staffs are retained, customers are taken care of in an
efficient and friendly manner. If the customers continually get the same friendly and
efficient service each time they contact the company, then customer satisfaction goes up
and the cost of administering customer service goes down. The decreased costs of
customer service add to the overall profitability of the company.
The value of your product is based on customer perception. If the customers perceive
your product as being valuable, then the company can set your pricing accordingly. Part
of the perception of value by the clients is the satisfaction and dedication of employees.
Customers see employee satisfaction as a commitment by the company to general quality.
That helps to improve the perception of value for your product and can allow you to
charge more. Thus the company performance will be high.
REFERENCES
Abelson, M. & Baysinger, B. (1984). Optimal and dysfunctional turnover: Towards an
organizational level model. Academy of Management Review, 9: 331-341.
Agrela, R., Carr, R., Dunn, c., Ellis, D., Gandolfi, A., Gresham, B., King, L. , Sims, A., &
Troutman, (2008). Retention issues and solutions: tools to ensure University of
California becomes an employer of choice.
Allen, D.G., & Griffeth, R.W. (2001). Test of a mediated performance-turnover
relationship highlighting the moderating roles of visibility and reward
contingency. Journal of Applied Psychology, 86, 1011-1021.
Aquino, K., Griffeth, R.W., Allen, D.G., Hom, P.W. (1997). Integrating justice constructs
into the turnover process: A test of a referent cognitions model. Academy of
Management Journal, 40, 1208-1227.
Baker, D. (2007). Strategic Change Management in Public Sector Organisations.
Oxford , Chandos Publishing.
Borg, W. R. & Gall, M. D. (1989). Education Research: An Introduction. 4th ed. New
York: Longman.
Boyens, M. (2007). Organizational socialization, career aspirations and turnover
Intentions among design engineers. Leadership and Organization Development
Journal, Emerald Group Publishing Limited, 26(6), 424-441
Branham, L. (2005). Planning to become an employer of choice. Journal of
Organizational Excellence, 24, 57-68.
Breaugh, James A., and Mary Starke. (2000) "Research on Employee Recruitment: So
Many Studies, So Many Remaining Questions." Journal of Management 305-434.
Charles, M. (2009). Employees’ retention in state corporations. Journal of management.
Vol 33.
Chew, J.C.L. (2004). The influence of Human Resource Management Practices on the
Retention of Core employees of Australian Organizations: An empirical study. A
published Master’s Thesis, Murdoch University.
Chiboiwa, M., Samuel, M., & Chipunza, C. (2010). An examination of employee retention
strategy in a private organisation in Zimbabwe. African Journal of Business
Management, 4(10), 2103-2109.
Cooper, E. (2007). Job Stickiness & Employee Retention Rate. Journal of Applied
Psychology, 92, 180-190.
Dalton, D. & Todor, W. 1979. Turnover turned over: An expanded and positive
perspective. Academy of Management Review, 4: 225-235.
Eisenberger, R., Stinglhamber, F., Vandenberghe, C., Sucharski, I., & Rhoades, L. (2002).
Perceived supervisor support: Contributions to perceived organizational support
and employee retention. Journal of Applied Psychology, 87, 565-573.
Eyster, L., Johnson, R. and Toder, E. (2008). Current strategies to employ & retain older
workers. [PDF document]. Retrieved from:
http://www.urban.orguploadedPDF/411626_0lderworkers.pdf.
Fitz-enz, J. (1997). It's costly to lose good employees. Workforce, 50, 50.
Fombrun, C. J., & Shanley, M. (1990). What’s in a name: Reputation-building and
corporate strategy. Academy of Management Journal, 33, 233-258.
Glebbeek, A., E. Bax. 2004. Is high employee turnover really harmful?An empirical test
using company records. Acad. Management J. 47(2) 277–286.
