Employee Retention – How to Beat the odds?
People Retention – What to consider
People/ Employee retention is incredibly critical for any organization. The investments: time, money and the efforts, put into the hiring, onboarding and integrating an employee to make him the perfect organization fit is too huge to let the best performing employees go. The people retention strategies go a long way in motivating your people so that they stick around for a longer period of time and contribute effectively.
So, It is important for all managers to understand that retaining not only a “good talent” as well as an “average talent” is the key to any healthy organization. And, Corporates are putting Sincere efforts to ensure growth and learning for their people/employees in their current assignments and for them to enjoy their work. But, if we analyse sometimes they miss to identifying the actual need of an employee.
Lucrative salary, comfortable timings, better ambience, growth prospects are some of the factors which prompt an employee to look for a change. But, along with above benefits now people need more personal space in their workplace.
We conducted a survey to know more about the choices of an individual, continue reading further to know our findings.
What would make the employees stay?
When the best people of any organization start to leave, Only then the management/managers become very much concerned about it. Because people like these are hard to find.
So, how to retain these types of employees?
What are all those factors responsible for making an employee stay in an organization?
When asked, what would make an employee stay in an organization?
The answer was, Around 96% of the respondents said that they would stay in an organization if their career growth along with learning expectations are met.
Good salary and work-life balance were the 2nd and 3rd relevant causes for the same with 79.2% and 75% of the responses respectively.
The Correlation with Hiring Process
Around 67% of the respondents agreed upon the fact that the hiring process has a significant correlation with the retention of the employees. And being one of the primary functions of HR it has a correlation with the last function which is retaining the employees. The reasons behind this correlation were
- Identifying person-job fit, cultural fit
- Clear communication about the job roles & culture
- hiring process shows the seriousness & interest of top management towards employees/ their people
The Factors of Performance Evaluation
When asked which are the factors of performance evaluation responsible for employee retention, 65% of the respondents said that communication of expectations should be clear to retain the employees. The 2nd most significant factor was found to be ‘Proper feedback system’ with 64% of the responses. Objectivity was the 3rd factor with 53% of the responses.
Talking about career growth
Around 69% of the respondents said that the career growth of any employee must be of ladder growth ( A mix of horizontal and vertical growth). While 21% of the respondents wanted to have a fast and vertical growth in an organization.
Ranking of different factors
The most important factor responsible for retention of employees was found to be career growth along with challenging work with an average rating of 4.56 out of 5. The ranking of the factors are as per following
1- Career Growth with Challenging Work– 4.56
2- Attitude from top management– 4.1
3- Work Life Balance-3.81
4- Good Salary- 3.80
5- Rewards & Recognition- 3.67
Attitude from top management especially the reporting manager was found to be of 2nd most significant factors. This is a stated fact that people leave managers, not companies; Forbes conducted a survey confirming this.
“The single biggest decision you make in your job—bigger than all the rest—is who you name manager. When you name the wrong person manager, nothing fixes that bad decision. Not compensation, not benefits—nothing.”
-Gallup CEO Jim Clifton
We can’t ignore the fact that all of these factors are considered important as all of them were rated above 3.5 out of 5.
Hindrances in implementing any framework
While many of the major issues sustain management designs and implements a suitable framework as well. But there are always problems while implementing any framework. 32% of the respondents accepted that lack of proper communication is the most faced factor while the lack of defined EVP (Employee Value Proposition) was the 2nd most faced problem with 28% of responses.
Engagement Activities for retention
From our survey and the study conducted we found out that engagement activities help in developing a feeling of belongingness, releasing work tension and most importantly it helps in boosting the productivity of the employees as well.
Views are welcome!
Study Conducted by –
Abhilasha Bakhla – Summer Interns – B. Arch from BIT MESRA & Pursuing MBA in HR – IIM Ranchi
Mohit Kumar Sethy – Summer Interns – B.Tech. from IIT-Dhanbad & Pursuing MBA in HR – IIM Ranchi
Edited By –