INFLUENCE OF
EMPLOYEE RETENTION TO RECRUITMENT AND SELECTION
Selection
being a strenuous task to when picking the ideal candidates from and out of
those who were considered as suitable contenders (István, J. 2010), it is much
important to retain those who are employed in an Organisation (Armstrong, M.,
2010). Therefore, there should be a plan to retain people by gathering
information that how many leave the organisation and the reasons for leaving
and what steps should be followed to retain those who are worth retaining
(Armstrong, M., 2010). Armstrong, M., (2010) further states that loss of
important employees would imbalance the stability of the business.
For
example in the Outsourcing Company that I previously worked for, as a remedial
measure, HR takes steps to get bonds signed from the employees who were given
foreign job training for a period of two years compared to the cost involved to
the Company. As the employee has to the value of the bond in case of a
resignation, in most instances refrain from leaving the Company.
The
right person with suitable skills should be given the responsibilities of the
appropriate job and should be properly motivated and if not, it will become a
wastage of resources and time. (Kaur, A., 2013).
As
an example, the Outsourcing Company that I worked previously, there were
instances where newly recruited and selected manages who did not get the
opportunity to take the leadership and responsibility became leaving the
Company due to dissatisfaction. In such instances, the whole Recruitment and
Selection process became a waste.
In Dale, M (2003), it is said that the pay is only one of the sources of
motivation and that other requirements such as the working environment, how
people are treated and the benefits granted are also treated as important.
For
example, in the previously said Outsourcing Company though those who were
Recruited and Selected for the Associate level were well paid compared to the
competitors, due to work pressure and lack of motivation employee retention was
less.
In
Cloutier et al (2015) it is stated that it increases the costs in resources of
recruiting and time is wasted when the employee turnover is high. Cloutier et
al (2015) further sates that due to high employee turnover advertisement costs
increases and salaries might overlap making it difficult to maintain positive
employee culture and morale which also results in high costs due to missed
opportunities, budget costs, etc.
Companies
feature employee retention in their annual review and budget discussion as
evident based on the growth and focus (SHRM 2014). The basis of employee
retention strategy in an Organisation starts with the vision, mission, values
and policies of the Organisation (Cloutier et al, 2015).
As
an example, in the Logistic Company that I work for, as a measure of retaining
experienced staff, once a female employee completes her maternity leave, the
management consider to let her work from home for a short period. Further the
certain employees were allowed to work according to a flexible time schedule in
order to retain them.
In
the 1st video given below:
It
describes of 10 resolutions of retention of employees.
-
Hiring of employees should be done smartly by taking time to interview thoroughly.
-
Offering fair and competitive compensation by doing researches when hiring
employees.
-
Developing attractive benefit programmes for employees such as medical insurance.
-
Training and mentoring to help employees to set goals to their carrier and for
the company.
-
Promote work and life balance by give giving the opportunity to work from home.
-
Recognise / acknowledge achievements by conducting regular programmes such as selecting
the employee of the month.
-
providing leadership opportunities.
-
Offering the opportunity to give feedback regularly.
-
Conducting employee surveys with confidential feedbacks
-
Foster teamwork, in and out of the office and coordinate all opportunities.
Video
1
10
Employee Retention Resolutions
HR360Inc,
(2015)
According
to the description in the 2nd video given below:
In terms of retaining good employees, by ensuring
that the employees are satisfied with the job Organisations face various problems.
During the Industrial Revolution the late
1800’s and early 1900’’s and during the influence of world war ii employees
worked for basic necessities such as food and clothing.
Hierarchy of human needs described by Abraham
Maslow in his research paper in 1943 related that era and matched up to this millennium.
The present era considered as the Information
Age is the Age of the Digital or the Social Revaluation and the video describes
of the workforce of the new millennium. In this era as the opportunities are unlimited
the new generation could be considered as an achiever workforce who care less
about survival. They preferably being freelancers mainly look at quality of
life which means a quality job in a quality workplace with a quality
environment having emotional wellbeing and good social relationship, health
care, work freedom, financial and material wellbeing, personal safety and
belongingness.
It describes that the millennium
generation prefers to be at the top level of hierarchy and want to be felt
appreciated and rewarded. These rewards do not mean monetary rewards but to be rewarded
in terms of quality of life such as increase the employee engagement, being encouraged
and to participate in social events.
Though the previous generation had limited
choices, this generation has and generation after will have plenty of choices.
Video
2
Employee
Retention Strategy in 2020 | Entrepreneurship 101
Can-Indian
Channel, (2020)
References
- Armstrong, M. (2010). Armstrong's essential human resource management practice. London: Kogan Page.
- Can-Indian Channel, (2020). Employee Retention Strategy in 2020 | Entrepreneurship 101. YouTube video. Available: https://youtu.be/B_d9AqbrcLM.
- Cloutier, O., Felusiak, L., Hill, C., Jean, E. (2015). The Importance of Developing Strategies for Employee Retention. Journal of Leadership, Accountability and Ethics Vol. 12(2). Available at: http://www.m.www.na-businesspress.com/JLAE/Pemberton-JonesEJ_Web12_2_.pdf.
- Dale, M. (2003). A Manager’s Guide to Recruitment and Selection. 2nd ed. Available at: https://books.google.lk/books?hl=en&lr=&id=s6K81LePGqEC&oi=fnd&pg=PP11&dq=recruitment+and+selection+and+retention+to+the+effect+of+maslow%27s+hierarchy&ots=u1l3MXkYX1&sig=m425NfN6HIskPsF6X9sKxgnHKl8&redir_esc=y#v=onepage&q&f=false.
- HR360Inc, (2015). 10 Employee Retention Resolutions. YouTube Video. Available: https://www.youtube.com/watch?v=7nJC9vDMzzI.
- István, J. (2010). Selection methods used in recruiting sales team members. Periodica Oeconomica, October, 110–117.
- Kaur, A. (2013). Maslow’s Need Hierarchy Theory: Applications and Criticisms. Global Journal of Management and Business Studies, 3, 1061-1064. Available at: https://www.ripublication.com/gjmbs_spl/gjmbsv3n10_03.pdf.
- SHRM. (2014). SHRM - Mission and History. Retrieved from Society for Human Resource Management: http://www.shrm.org/about/history/pages/default.aspx.
Nilushi, it’s interesting to read about the retention of millennials. It is stated that talent management and leadership development strategies will help enhance the organizations competitiveness, and retention of Generation Y workers (Carter et al., 2019; Chami-Malaeb & Garavan, 2013). Retaining talented personnel in a company is one of the most challenging issues that businesses face these days. Companies' management, top-level executives, and HR departments are putting their sweat and blood into reducing turnover and retaining key employees by investing time, effort, and money. According to Ongori (2007), it is recommended by the management to point out factors on employee turnover as it bears indirect and direct costs which could be cut down if the correct procedures are adopted.
ReplyDeleteThank you Ashanthi for your comment which I agree.Employee retention is a common concern for every organisation as turnover has become a common trend around the globe (Hee & Rhung, 2019). Mostly, this turnover trend is demanded by the Generation Y or the Millennials (Lisa, 2012). Millennials are possibly interested in work-life balance, flexible working hour or working from home. They are want be satisfied only with their income and job situation (Hariati, 2017).
ReplyDeleteY generation employees who are next in line to take over the management positions follow the present managers who are of X generation (Kuek et al., 2015). Finding out factors that motivate millennials to be retained in a workplace is important (Hee & Rhung, 2019).
Dear Nilushi, I totally agree what you have stated above. Further companies can identify talent through performance appraisals where managers can see both employees’ actual performance as well as potential performance. At the end managers can determine what the employee developments and what the person’s next step within organization might be. This way can be used to identify right candidates and would help to retain staff as well. (Snell & Bohalnder, 2012)
ReplyDeleteThank you and I agree with you Dulanjana. When company uses employee engagement strategies which enables to motivate and retain talent employees. Writer (2016) mentions that encouraging flexibility and offering opportunities for personal development goes a long way in gaining the trust of employees.
DeleteHi Nilushi, agreed with your post and "Employee commitment, productivity and retention issues are emerging as the most critical challenge on the management of workforce in the immediate future. This challenge is driven by the concerns of employee loyalty, corporate restructuring efforts and tight competition for key talents (Kresiman, 2002). For many firms, employee departures can have significant effects on the execution of business plans and may eventually cause a parallel decline in productivity."
ReplyDeleteThank you Nishad. Agreed with you. Employee attachment and loyalty refer to employee commitment. It is related to individual feelings about the organization. Good commitment signifies individual strength and involvement in an organization. Less supervision, a high level of flexibility, and an increase in daily attendance result from the strong commitment to the organization (Armstrong and Taylor 2014).
DeleteHi Nilushi. I totally agreed for your blog post and employee retention is one of the most challenging aspect in today's highly completive corporate world. Given that turnover costs between one and one-and-a-half times an employee's annual wage, better retention offers a financial benefit (Cascio and Boudreau, 2011)
ReplyDeleteThank you Ruwan. I agree with you. Organisations should have strategies to retain employees. Effectiveness of recruitment, selection and deployment or fitting people into jobs that they fit in and the company image are factors that affect retention. (Armstrong and Taylor 2014).
ReplyDeleteHi Nilushi. I totally agreed for your blog post. The emerging trend in today’s fast-changing competitive business environment occasioned by globalization has presented evident challenges before the Human Resources professionals. With increasing globalization, there have been enormous and far reaching changes in global organizations. These changes are the result of fierce international competitive pressure faced by enterprises operating in the global place encircled with knowledge – driven productive economy (Wokoma and Iheriohanma, 2010).
ReplyDelete