STRATEGIC HUMAN RESOURSE

MANAGEMENT

TERM PAPER

TOPIC: UNDERSTANDING THE

DRIVERS OF EMPLOYEE RETENTION

RAJVEER WALA
AUL1910651
SECTION-2
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INTRODUCTION
Employees are the most important thing in any organization without them it is clear that any
organization can be just like a skeleton and therefore considering the number of employees in any
organization. It is a very important task to be organized to manage these employees and to keep them
on the job for a long time so this paper looks at the various factors that keep the job kept in any
organization and the surrounding topics. In this paper we try to discuss what the retention drivers are
and what factors affect this function and how this practice is linked to different SHRM practices.
There are many strategies developed by the department of HR for each organization to make this
process smooth and well organized so these strategies are discussed here. Various examples are cited
in a paper that tells us how retention of employees takes place in that organization and which major
drivers work behind them. The retention of a good and motivated employee is critical to the success
of the organization. The increase in senior staff increases costs and has a detrimental effect on
organizational behaviour. The implementation of a staff retention program is an effective way to
ensure that key employees remain employed while balancing and maintaining work and productivity.
Earnest efforts must be made to make this process a reality. Staff retention is part of human resource
management and planning efforts. Turnover, as opposed to retention, is often seen as a common HR
issue that requires records and reports. Indeed, employee retention is not a matter that can be
overlooked by reports or records, it depends on how we understand individual concerns especially in
the case of women planning to become pregnant. The only simple idea employers should understand
from an employee's point of view is that the organization should be like a helping hand on real
concerns. Therefore, organizations are forced to learn why workers leave and why they stay.
Sometimes a person in the HR area is assigned to focus on the latter to ensure that it receives the
highest priority and therefore we can conclude that these retention drivers are very important to the
organization and its work, depending on the level of behaviour of the drivers their satisfaction at work
and the company's financial characteristics.

LITERATURE REVIEW
Employee retention is a serious problem facing employers in the brewery industry due to
shortage of skilled workers, economic growth and staff growth. In the book, Retaining
Valued Employees (Griffeth and Hom, 2001) report that income costs can run up to 200 per
cent the employee's salary, depending on his or her ability level. As per The International
Association of Professionals in Employment Security, “When an employee leaves, it costs the
employer's money up to a third of the employee's annual salary. Parrott (2000) believes that
today's employees present a completely new challenge, especially when businesses are forced

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to face one of the strongest labour markets in decades. Therefore, it is very difficult to retain
staff, as is the field of talent increasingly beaten.

The study concluded that in order to retain skilled workers the organization must build a good
place to work well. Research has shown that good and effective organizations respect their
employees and strive to make policies flexible for development employees in order to
achieve that level of employee engagement. Learning Outcome has shown that retention is
the way in which an employer takes steps to prevent a change of employment of their staff is
important. Research explains what keeps the effort the employer is making some good
policies to retain talented employees to achieve organizational goals and success. The study
concluded also that skilled workers are more important in organizations because of their
expertise on top of their knowledge, skills and experience.

FACTORS AFFECTING EMPLOYEE RETENTION

Research has shown that an HR professional need to come up with critical points for making
staff leaves the organization to apply the appropriate level of protection. If an organization
failing to deal with the problem of punctuality, it becomes a major problem so some retention
practices can be adopted

Training and Development

Studies show that training and development can increase the level of retention because with
training they achieve their goal of planning on time and they will always be benefit from
rewards. The study concluded that a good organization is based on knowledge now emphasis
on training and development activities. Previous HR studies also say that this will work make
a reservation. Research has shown that the high growth of an organization depends on the
ability of staff. Achieving competitive level complete training & development plans should
be used. Research has concluded that good training programs lead to a higher level of staff
retention.

Compensation

Research into employee retention says that financial benefits are the key relationship between
the employee and the intended purpose of staying in the organization measured. research has
also concluded that the competitive pay structure is- an important factor that easily affects the
level of retention. Research holds that well managed compensation management plays an

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important role in retaining employees. So changes are needed to be made to the existing
payment frameworks for each need and market trend.

Feedback

Employee retention surveys conclude that economic, social and psychological conditions,
employee is strongly influenced by the positive feedback within the organization. Research
has been done in retention staff positive feedback from the manager and co-workers is closely
related at the final level it is concluded that the answer is a dynamic measurement and drive
the productivity level and at the same time their final level. The study has shown that the
response has also sometimes decreased and had a significant impact on employee retention
and testing with some accounting feature that includes trust, consistency, diversity,
comparison, style of communication all these factors influence the employee retention.

The relationship between SHRM practices and employee retention

According to Abeysekera (2007), employee turnover is an important challenge for

organizations, but companies that do efficient HR operations can reduce the percentage and
increase competition (Mbugua, 2015). Also, Branham (2005) argued that all the reasons for
why employees quit work is closely related to HR practices, and therefore inclusive
understanding the relationship between HRM and staff retention will help firms make the
accurate decisions in accomplishing business outcomes while guaranteeing the right level of
resources (Francis, 2014). This recognition and effort are not uncommon for others,
Institutions work to attract and retain top talent representing basic shifts / change in
employer-employee relationships. In fact, many organizations exist now I see that retention is
a strategic team that provides sustainable competition profit. By using a complete final
strategy with the support of the appropriate HRM programs, businesses can effectively retain
skilled workers (Embuhira,2011).
In this regard, there are many SHRM practices that an organization can use to increase the
level of retention. Luthans and Summer (2005) noted that SHRM methods of competition,
and thus retention of workers are; jobs design activities, job analysis methods, participation
programs, information sharing, grievance, staffing, training, performance appraisal, and
incentive-based compensation(Mbugua, 2015). Porter (2008) highlighted that a collection of
key HR factors, such as recruitment, training, employment composition, participation,
collaboration, balance of work life and rewards, are considered important a factor in
achieving a job fit, and this in the future means people can feel better equality with the

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organization (Mbugua et al., 2015). Francis (2014) examined the influence of four HRM
dimensions on employee retention, which is training and development, career advancement,
compensation and benefits and performance testing. While Mbugua (2015) described the
effect of three SHRMs final practices: strategic recruitment, strategic training and strategic
performance management. Therefore, organizations should cultivate SHRM policies and
strategies to maintain a suitable relationship between the organization and its employees.

EMPLOYEE RETENTION STRATEGY

In contrast to “culture,” the word “strategy” refers to a systematic and a planned process
linked to the general idea, a set of values and function (Jackofsky, 1984). Many companies,
especially the large ones with fully staffed labour departments, make wider exercise planning
to develop a cohesive and integrated strategy to address employee retention or, more
generally, personnel management that often includes retention as one of the objectives will
produce certain programs or interventions with reference to the obviousness of the whole
planning schedule.

Indeed, many experts within the Human Resource literature emphasize the importance of this
exercise, and emphasize that good maintenance is best ensured when companies take a
strategic approach in question. However, it is clear that taking a proactive approach to human
resource management is not possible requires large resources, and it can be seen that
resources are widely used in small companies, especially companies that are too small to
have a department dedicated to human resources, or you are too young to have a specialized
officer in charge of labour inquiries (Muchinsky, 1977).

Lockwood, (2006) provided evidence of a combination of firms among “good” workers

outcomes including reduced layoffs, quit rates, accidents and grievances with employees
strategies that emphasize employee participation and internal remuneration. Presence of
habits related to career advancement is often an excellent predictor of career impact
commitment. Such programs include development plans, internal promotions and accurate
work previews at the time of hiring. Moreover, as Lockwood, (2006) points out, it is not yet
clear whether successful practices are the cause high performance, even if strong
performance creates the resources to do so habits.

EXTERNAL DRIVERS OF THE RETENTION CRISIS

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Significant changes have taken place in organizations, both internal and external, which make
this more critical today than in previous years. Unfortunately these changes will only makes
the problem worse in the future.

 Economic growth

 Slower growth of job seekers.

INTERNAL DRIVERS OF THE RETENTION CRISIS

Internal changes in organizations work in conjunction with external influences driving

excessive profit. Internal problems include structural changes in the organization as well
changes in workers' attitudes toward work and their employers.

 Lack of company loyalty

 Desire for challenging and useful work

 Need for autonomy, flexibility and independence

 Need for performance based rewards.

 Desire for different kind of benefits

RETHINKING RETENTION MODEL

In many organizations, performance management drives sales, service, quality and security,
and various personnel departments that provide tracking, training, and other services. And the
responsibility for managing employee retention is usually taken by HR only. With this set,
organizations failed to address the issue of employee benefits. Keeping this in mind, Richard
P. Finnegan came up with the ‘Rethinking Retention Model’. The main ingredient of the
Rethinking Retention model is the shared function of performance management and
increased staff support for employee retention.

In conclusion, public organizations need to improve clear employment policies attracting and
retaining skilled staff. However, the definition of a public sector with focus on the effects of
public interest (poorly defined goals), and more open accountability (and politicians and
taxpayers), all of which can add to the level of uncertainty easily matched HRM as a partner
used in achieving competitiveness and success.

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EXAMPLES

Hyatt

On average, a housekeeper has lived with Hyatt for more than 12 years. In total, more than 14,000 Hyatt
employees of the estimated 75,000 U.S. employees have worked for the company for more than 10 years.
Apparently, the hotel company is doing something to keep its employees around. Hyatt's training program
is at an all-time high, and the company has a solid internal recruitment program by identifying potential
leaders for existing employees. A few years ago, the company released a fully revised training program
called "Change the Conversation," based on principles from the Stanford School of Design emphasizing
obedience. Employees are encouraged to discover new and innovative ways to solve problems and carry
out daily tasks. It hopes its employees to be the first source of new employment through the
recommendations of the Employee Transfer Program. In addition, Hyatt has fought for diversity from its
employees. With 10 years in operation, Hyatt has made the Best of the LGBT Equity LGBT campaign;
AARP called for Hyatt's commitment to hiring American adults; and Hyatt has been quoted by NAACP
magazine and Spanish Business for hiring African-American and Spanish African workers, respectively.

MailerLite

Another example of staff retention comes from MailerLite. They have been using remote work as part of
their publishing process like other teams. However, beyond the remote control system, they emerge as
workers by simply selecting the right people to ride on.

To do this, they tossed a standard cover letter and turned to their tools to create a unique hiring experience.
candidates now submit a MailerLite newsletter to showcase their skills, personality and creativity. At the
same time, they are learning to use this tool and have a better chance of highlighting why they are in that
group compared to the book on the cover. Switching to this non-results approach has been the result of a
number of studies concluding that skilled people are likely to enjoy a particular challenge. They would also
spend a lot of time researching the company and reading their blog as they talked about their work culture
as much as possible. This one change made MailerLite filter out people who would not bother to take the
time and do the job. Above all else, the company also ensures team equality by allowing every single
person to choose their next team member. The HR manager was hired after they already had 50 employees
just to ensure team integration and happiness and take care of more administrative and legal aspects.
Ultimately, it is up to all employees to decide who best suits their team in terms of skills and values.

Buffer

The Buffer team has become a pillar of the dominant culture of distribution teams and retention strategies.
Their turnover rate is 94% with a mere turnover rate of 5.8% .The team is fully deployed and focused on
building a satisfactory work environment from day one. They believe that ensuring the happiness of

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employees and making them committed to the product will also help the company maintain a good
customer experience and retain customers. That being said, all their salaries are public so no one will ever
feel like they have been left behind or not really paid for the work they bring. And, yes, you can look at
the formula they use to set their earnings as well. On top of this, they have taken their visibility into
their product as well, making their code an open source and free for anyone who can use it and show
the street brand of the public product.

CarMax

The economic downturn in 2008 was there and it was difficult times for companies and their
employees around the world. But instead of saving money for the company by cutting employee
benefits, benefits, and recognition systems - and frankly, employees themselves with layoffs -
CarMax has decided to go straight. During the 2008 recession, CarMax and its president and CEO
Tom Folliard decided to invest heavily in labour programs. CarMax has improved its training and
human resource development programs, helping existing employees to rise and jump on corporate
corporations. The company also focuses on developing its staff feedback in response to improve their
customer experience. Those ideas were then rewarded with powerful employee recognition programs.
In fact, CarMax's staff retention strategies are all about their employees.

DISCUSSION AND MANAGERIAL IMPLICATIONS

1 Staff Retention Reduces turnover Suffering

Employee turnover is a natural feature of any business, but high turnover can be a problem for
any HR team. Every job you leave takes an important part of your time to process, not to
mention the time you spend searching to find a replacement - waiting to continue, applying
for applications, negotiating, and repeating that process.

While each of these factors is important to replace the lost function, there is an easy way out.
Focusing on retaining employees - in advance - can help reduce stress and spend time around.

Staff Retention Reduces Recruitment and Training Time

Anyone who works for people knows that turnover consumes tons of time. First, it takes time
to find new and qualified employees. After that, it takes time to set up cycle of conversations
and discussions. After that, it takes more time for board employees. Finally, you have to train
new staff. To cover all the hours, the benefit is the head of the staff. By focusing on retaining

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employees, you can reduce the time you spend on those boring hiring jobs and get back to fun
things (like planning teams!). It is important to note that retention can also help you find new
employees. As we recently discussed, retention of employees enhances morale. Happy
employees are a very effective recruitment and training tool. Employees who are happy with
their long-term employment status will be able to find within their network and prioritize
candidates, promote business while attracting talent, be enthusiastic and helpful during
training, and help new employees learn faster in the company process. You've seen it happen.
Imagine if that happened all the time.

Globalization has led businesses and employees to change and adapt to new ways of
productivity and work order. The most challenging factor is staff productivity, commitment
and loyalty. Firms sometimes play a major role as employee profits cause a significant decline
in productivity and sometimes total in the business. The challenge for employees is to attract
and retain skilled workers while competing with other organizations for excellence in their
particular field. Job satisfaction is an important factor in retaining staff; this in particular has
an employee's attitude towards his job. However it is measured in terms of several factors
such as salary, the quality of the relationship between the employee and his or her
supervisors, and the overall work environment. The more satisfied an employee is in his or
her workplace, the more intelligent and productive he or she may be. In addition, this
satisfaction will lead him to stay with their current organization for a long time. Undoubtedly,
employee benefits are more expensive and more challenging for employees. Such costs
include searching the foreign labor market to find new employees, choosing between
conflicting job seekers, formal and informal training, and general investment. Such an
investment is necessary to enable the new employee to reach the same level as the leaving
employee. The high profit margin thus affects the profitability of organizations and creates a
difficult environment for stable and efficient business operations Due to the growing global
competition of qualified workers, transforming and initiating the final strategies is necessary
to employ and retain skilled workers. Such programs include, harmonizing the process of
human organization with its business plan. Another factor is the inclusion of critical staff in
decision-making in the workplace. This involvement gives employees a personal voice and
responsibility and gives them an additional sense of importance in the organization sometimes
undermining the value of the employee's health within the workplace. This is a very effective
tool because employees consider the importance of a life without work is very important as it
eliminates the growing work pressure sometimes.

In the current context, the biggest challenge for an organization is to retain its key and
competent employees. Managers can control the problem of employees who leave the

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 organization early on a large scale but cannot completely stop it. There are many challenges
to it.

The following are the challenges in Staff Retention -

• Salary dissatisfaction - every employee has expected salary levels and this is one of the main
reasons why an employee leaves the organization. Retention becomes a problem when an
employee quotes a higher salary, which is beyond the organization's budget. Every
organization has a budget for all working salaries that can be increased to a certain extent but
not beyond a certain limit.

• High job opportunities - There is a competition to determine the throat to attract the best
talent in the market. Companies go a long way in attracting talented resources to their
competitors. The availability of these financial benefits makes it difficult to maintain good
resources for a long time.

CONCLUSION

As we all know that employee is one of the best and most important things in every organization this
season. First and foremost the retention of a talented employee is important to the company and
provides the best results for the organization. It identifies the HR aspect including selection, salary,
recognition and reward, career development and development, challenging opportunity, leadership,
corporate culture and policies and a satisfactory work environment discussed to build relationships
and commitment to the organization and the goal of staying longer in the organization. Finally the
retention of assumptions such as age, gender, educational qualifications and field are highlighted in
terms of impact on the organisation's commitment and purpose of residency. Although this paper
attempted to identify all aspects of staff retention, this complex area of staff requires further research.
Other factors such as organizational culture, training and development, independence are less
scrutinized than leadership and leadership for example. Organizational staff can be divided into three
categories: directors, managers and employees. The available research did not place sufficient
emphasis on the workforce, the economic sector and the type of business most affected by one or
more factors, although some studies have done so. In order to do more research to better equip
organizations with the knowledge needed to develop their final capacity is needed. There is a need to
know what staff retention is, as well as ideas / strategies to improve retention rates in a different
company. While these numbers may vary from industry to industry, and everywhere, retaining their
major employees will be difficult as the labour market intensifies. There is therefore a need to keep

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track of how these different drivers affect the staff retention process in any particular retention and
after proper analysis Proper selection and investment can be made

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