3. Employee Retention

As we spoke in previous articles the main issues pertaining to staff turnover is poor HR management. To arrest the situation we have to apply some HR theories and strategies

Human Resource theories is a general term for the strategies, tactics and objectives used by business owners and managers to administer policies and procedures related to employees. Human resource theories explain how management practices and structures can influence employee behavior in a favorable or bad way.

Human resource theories help explain how management behaviors and structures can positively or negatively influence employee behavior

There are four Human Resource theories which are named as follows:

  • Organizational Lifecycle Theory. ‍ ...
  • Strategic Contingency Theory. ‍ ...
  • General Systems Theory. ‍ ...
  • Transaction Cost Theory.

 

Organizational Lifecycle Theory

The Organizational Life Cycle is the theoretical pattern of phases that are typically followed by an organization. The Organizational Life Cycle consists of four phases: planning, growth, maturity, and decline. Each phase in the Organizational life cycle is characterized by specific activities and problems.

 

Strategic Contingency Theory

As per the Strategic contingency theory, a leader becomes a central part of an organization due to his/her unique skills to solve issues or problems which others are unable to solve. Too much dependency lies on a leader so he/she is not easily replaceable

 

 General Systems Theory

General system theory describes “how to break whole things into parts and then to learn how the parts work together in systems”. General system theory is known by different names - systems theory, theory of open systems, systems model, and family systems theory

Transaction Cost Theory

Transaction cost theory (Williamson 1979, 1986) posits that the optimum organizational structure is one that achieves economic efficiency by minimizing the costs of exchange. The theory suggests that each type of transaction produces coordination costs of monitoring, controlling, and managing transactions.

 

 

 

 Actionable Employee Retention Strategies for new generation

 

1. Encourage Employee Creativity

"Work and no fun makes Jack a dull boy" goes a popular adage. Make sure that your firm gives importance to rewarding employees that give attention to their creative sides - hobbies, risk-takers, amd spontaneous performers during fun activities.

2. Provide positive feedback and support

A piece of constructive advice and your eagerness to help the team improve can do wonders for his morale. It increases the sense of belongingness with the firm

3. Promote hybrid workplaces 

 


Instead of forcing a particular location, the time has come for a flexible work environment. Remote working becomes a win-win situation for employers and employees

4. Surprise Rewards! Who does not want them?

Appreciate the efforts done for the project and not just the results it got for the company. It demonstrates that employees are valued.

5. Good On boarding Program

Poor management practices can make you lose a gem. Hence, always keep your onboarding practices and methods in check.

6. Employee well-being matters

You all have by now realized that health is indeed wealth. Arrange for free health checkups or counseling sessions from reputed doctors to give health inputs for the employees.  

7. Mentorship Sessions

Sometimes, an employee crumbles due to a lot of reasons and is unable to concentrate on the work. A mentor who is experienced and can be ears to his personal/ professional issues could be a great support for him.

8. Employee Stock Ownership Program

An excellent program, the employee stock ownership program (ESOP) can boost your employee retention rate. This gives him a chance to be a shareholder of the company he is investing his time, work efforts for and thus, won’t think of quitting within a short time.

9. Alternative work responsibilities

Doing the same role can become mundane and monotonous for the employees. It also hampers professional growth. If you give them freedom and a chance to work in other departments, the work looks less tedious and can also increase their enthusiasm to do something good.

10. Reduced workdays

Slogging work daily can become a burden for most employees. Hence, a shorter work week with the fulfillment of hours along with intermittent breaks can help the team to be more productive.

For instance,

Person A works dedicatedly 9 hours with only lunch and tea breaks; leaves on time

Person B works dedicatedly for 7 hours, with intermittent breaks; leaves on time

If you are thinking about who is more productive, both employees complete their obligations and timesheets. But being busy does not necessarily mean being more productive.

11. Communication centre

Timely, positive and constructive communication to address workplace or project issues can assist in completing it faster.

12. Training and Development programs with a New Angle

While every company does indulge in training and development programs for its employees regularly, doing it from a new perspective can keep a good positive atmosphere in the work environment. For better employee retention, give them time to upskill. This could be certified online training programs, virtual conferences in a fortnight at company meeting rooms or even provision of scholarships for employees looking to do a further education course.

13. Provide a competitive base salary and hourly wage

In a fierce job market, employees move to organizations that offer better financial stability. The main reason is money for any individual, you need to redesign salary structure and benefits regularly.

14. Revised Employee compensation

Even if the company can't offer a handsome package, ensure you provide good employee compensation in terms of bonuses. You can also include health-care benefits and even retirement plans to give maximum job satisfaction. This will surely up your employee retention percentage.

15. Sabbatical Work Leaves

To give wellness offerings to keep all - physical, mental and emotional health in proper shape through sabbatical grants is a big card under employee retention. It helps the individual take a paid break from the work pressure without any risk of employment termination. It helps the employees feel refreshed and recommit to their work after a break to pursue areas of interest or even a short “me-time

 

Conclusion

Based on above explanations the HR authorities need to focus on employee satisfaction since 1st step of recruitment. By offering flexible methods to treat the employee can make the work place a pleasant place to work, by satisfying the employee bank can have great productive output from the employee. Initially the company need to understand the loop holes and need to implement the best method to control HR aspects in the organization.

A satisfied employee is one that is positive in their approach. They're proactive, productive and committed to contributing to the organization's goals. Prioritizing employee satisfaction will increase your bottom line profits, create lower employee turnover and improve overall company performance and productivity.

 

 

 

 

References

https://www.google.com/search?channel=crow5&client=firefox-b-d&q=out+put+from+satisfied+employees

http://www.knowledgejournals.com/PDF/66.pdf

https://www.tinypulse.com/blog/17-surprising-statistics-about-employee-retention

Comments

  1. Naseer Rismi12 May 2022 at 03:59

    Yes, Fathima. Employee retention is the most critical part when it comes to banking. Lower grade staff turnover in banking sector is much higher than the other sectors

    ReplyDelete
    Replies
    1. Fathima Shafna13 May 2022 at 18:02

      Yes ,thanks for your comments,
      The HR department and branch managers are responsible person's in staff turn over,main reasons of lower grade staff turn over are ,.lack of trainings and developments, target pressure with unbearable work load and work place environment issue.Leader should identity the situation and act accordingly

      Delete

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