Literature Review

Managing the human resource refers to the function that are performed by managers to maintain the performance of organisational employees. The human resource department plays a significant role; it is used for managing and allocating resources, providing the direction to the employees so that vision and goals are achieved. They aim to develop a positive environment at the workplace so that employees remain motivated and contributed to the work. The positive environment helps in motivating the employees which in turn improves their overall performance.

Thus, to retain the employees and improve their turnover mangers need to resolve all the issues related to the employees. Managers plan to offer opportunities to employers by offering training and extra programs so that they can gain feedback from the employees. Their goal is to listen from the customers and remove all the obstacles faced by them. The duty of HR professionals is to transform HR data into useful information for the organisation. In this report, they have to demonstrate ability to identify data sources and analyse it. In this assignment the reasons why employees leave the organisation is found and suggestions are offered to reduce employee turnover.

Literature Review

According to (Cascio, 2014), there are several reasons due to which employees leave the organisation. Some of the common reasons due to which employees leave the organisation is that job aren’t what they had accepted. Mangers in such case can handle the situation as they keep on asking the applicant about the situation or issue they are facing. The other reason due to which an employee plans to leave an organisation is due to lack of training and feedback. Lack of training can have poor impact at the workplace as employees may remain unaware about the organisation. Some employees do leave the organisation due to their poor relation with their staff or managers (Cascio, 2014).

This can be resolved by fixing the behavioural issue related to communication, performance management and performance of the organisation. The other reason is if there is no higher growth or opportunities that are seen by an employee. Thus, to resolve all such issues the managers should showcase the growth options so that opportunities can get advancement. Some of the employees also face issue due to poor work life balance (Cloutier,  Felusiak,  Hill and Pemberton-Jones,  2015). If employees are not satisfied with their work life they should follow up the recruitment by that job dissatisfaction is resolved.

In the views of (Cloutier,  Felusiak,  Hill and Pemberton-Jones,  2015),  There are various theories that are used  by employees retention. One such is defined by Fredrick Herzberg in which job satisfaction is offered to the employees by motivating them. In this theory he believed that retention can be achieved by minimizing the dissatisfaction and maximising the satisfaction level. Satisfaction can be achieved by offering job promotions, responsibility and recognition. Various rules and policies are built so that employees’ dissatisfaction is resolved and they are motivated. It assures that equality and fair decisions are taken so that employees can be retained.

Reasons behind Employee Turnover

Advancement and promotion helps in offering satisfaction to the employees. The opportunity for promotion helps in retaining employees as it helps in overcoming from the dissatisfaction (Florentine, 2017). The other theory that is used for retention is herzberg’s theory that removes all the issues faced by the employees and take action so that employee turnover is improved.

According to (Deery and Jago, 2015), There are various tools and resources that are used for retention like employee surveys, exit interviews and employee retention consultants. By surveying the employees the vision of employees is observed so that actions are taken in that direction. The exit interviews are used in the process of employee retention as it helps in gaining the valuable insight of employees about an organisation. The organisation can make use of this information to make changes in the company (Florentine, 2017). Exit interviews consist of various questions that help in gaining honest response from the employees that are getting separated (Deery and Jago, 2015). The organisation also builds up a consultant team through which all the operations get assisted and issues related to organisation are identified. To overcome such issues training programs are implemented.

According to (Iqbal and Hashmi, 2015) ,  retaining the employees is an important part of every organisation. Job satisfaction is one of the reasons behind employee retention; it is one of the most reliable factors that supports in offering retention. Employee equality is one of the reasons that affect the employee retention (Holtom and Darabi, 2018). Some of the factors that attribute to employee turnover or retention are market force that is the condition of market. The market force plays an important role for employee while making decision of leaving an organisation. The retention and turnover rate is dependent on the organisation environment as if promotion and .

career advancement opportunities are provided to individuals they can make them stick to the organization (Presbitero, Roxas and Chadee, 2016). Herzberg in their theory model used motivation and hygiene factor so that equality and branding of an organisation is built. Human resource management is a term that is used to describe the formal system of an organisation (Iqbal and Hashmi, 2015). The purpose of HRM team is to improve productivity and efficiency so that talent is acquiring and retained at the workplace by developing.

In the views of…., employee turnover can be improved if right people are hired so that they can fit best in an organisation for a longer time. They try or thing to leave an organisation due to the management mishaps. This can be resolved by understanding the management philosophies so that retention can be improved (Aruna and Anitha, 2015). The unprepared managers can also lead to a problematic situation as they do not deal with the employee requirement effectively. Employees do leave an organisation if there is no proper channel of communication or a way to take constructive feedback. Regular feedback will also give you more warning when people are feeling dissatisfied or disengaged (Presbitero, Roxas and Chadee, 2016).

Strategies for Improving Retention

According to (Ribes,  Touahri and Perthame, 2017), employees do leave their job then they get bored or remain unchallenged by their work. It is the duty of managers to help the employees in finding out their passion so that they can enjoy their job. Sometimes poor relation with the co-worker pokes employees to leave their workplace. Thus, maintaining a good relation can help employees to stay in an organisation for longer time (Holtom and Darabi, 2018). The other reason can be contribution of the work to attain the business goals, opportunity to use their skills so that job abilities are fulfilled. The other reason could be lack of autonomy, independence and empowerment (Ribes,  Touahri and Perthame, 2017). Culture also plays an important role, if there is partiality or any other issues the employees may look for any other option.

Findings & Analysis

There are several questions that need to be asked in the exit interview so that issues faced by the employee could be recognised. The few common questions are: why have you started looking for a new job, what is your position or designation you are not looking for, how is the culture of the company you are working in, what could have been done for you so that you remain employed here, did you share your issues with anyone before leaving (Columnist, 2017). Other common questions that help in analysing the situation is if you could change anything about your job or the company, what you would change, were you satisfied with the management department, is the training and development programs up to date, what is the changes required and would you like to join the firm in future.

These are the basic questions that are asked from the employee so that their issue could be resolved (Vasquez,  2014). The above questions are asked in the interview by the HR, these question s help in analysing the situation and reason why an employee leave an organisation. It is found that employees having an experience of 1-3 years tend to leave an organisation because they face issue with the culture and majority look for a change so that they can get high salary and designation (Pittino, Visintin,  Lenger and Sternad,  2016).

Thus, being an HR consultant I realized that salary should be increased and rewards should be offered to the employees so that they find a good working environment. The efforts are put in hiring but at the same time it is important to retain the talent. Retentions plays an important role thus to increases the employee retention rate an environment should be created so that employee feel like they are an important asset to the company (Aruna and Anitha, 2015).

The work environment should be open and honest and opportunities should be offered to the employees so that they grow and learn. The work and talent should be recorded and they should be rewarded by good work (Terera and Ngirande,  2014). The issue could be resolved by making an employee they need to feel their contributions to the business.  The feedback and praise must be sincere and should be smart enough to know the difference between sincere appreciation and platitudes.

The Role of HR Professionals

(Source: https://www.jibe.com/ddr/why-good-employees-leave-and-what-to-do-about-it/)

The reasons why employees leave an organisation are listed, 45% of employees leave the job due to the lack of opportunity, 41% because they are unsatisfied by their leadership, 36% want to work in more challenging environment, 34% employee may be unsatisfied by the extra benefits and rest may be unsatisfied by the awards and appraisal process (Ahammad, Tarba,  Liu and Glaister, 2016).

Conclusion

It can be concluded, hiring employees is important but it is necessary to retain the employees so that turnover is improved. To retain the employees it is important to offer comparative benefits so that employee fit in the organisation. Employees should be awarded for their performance so that they remain motivated about their work and promote them to higher position so they feel motivated. The cultural conflicts and issues with the managers and employees could be resolved at the regular meetings. The training should be offered so that they could improve their performance.

Recommendations

Some of the recommendation that can be used for employee retention is getting managers involved in the processes so that financial rewards are offered to them. A channel of open communication should be built between the employees and management so that all the issues and concern are identified. The financial rewards should be offered to the employees so that they work hard to reach at the performance goal. Part from that it is recommended that employees should get what they deserve and require. It is suggested that

, a platform should be provided to the employees to speak their mind freely within the organization. Apart from that, make employee feel appreciated. This is done by monetary rewards, bonuses, and gifts as it makes them feel significant. The five key factors that help an employee retain in an organisation are offering responsibility, respect, revenue sharing, and rewards. The reason why employees leave an organisation is due to lack of opportunity and poor culture. Thus, it is recommended that mangers should maintain a good communication with the employees so that their issues and concerns could be resolved.

While undertaking this course I realised that talent is the biggest asset for an organisation and this need to be considered to maintain employee turnover. I found that it is important to design policies so that employee remains in an organisation for a longer time period. This can be done by offering training so that the entire difficult situation gets eliminated. The best solution is to keep the workers happy by listening to their concerns and then planning so that employee retention is increased.

The management mishap is one of the reason due to which employees quit the job. I feel that an employee leave an organisation if they are satisfied from their work or they have an issue with the culture of the workplace. Thus, it is the duty of HR team to maintain the performance. I being an HR consultant will make up regular meeting and programs so that I can listen to their concerns and work in a direction to resolve them. The aim is to make plans so employees remain motivated and contribute in a way that turnover is increased. It is difficult to train new employees so it is better to retain the already working employees. I feel that most of the employees leave an organisation because they didn’t get the job what they are expecting in such cases the passion of employees needs to be known. This reason can be resolved if proper training and feedback is given. 

Conclusion

The poor relation with the staff and other employees is one of the other reason employees leave. Hence, I believe that meeting or a get together party should be organised in a time period so that conflicts could be removed and connections between the employees can be built up. Good relations with the employees help in completing the work effectively and in a short span of time. I being an HR will showcase the higher growth opportunities in front of the employees so that they get a reason or a motive to perform well.

There are various theories that are used for employee retention which focuses on minimizing the factor that causes dissatisfaction and maximizes the factors of satisfaction. I will make sure that equality is maintained and decisions are taken in a way that it is fair. Advancement helps in offering motivation by creating events so that they find a good reason to communicate with the employees. I will make sure that all the issues faced by the employees are eliminated and will work in a direction so that turnover is improved.

I will create surveys every month that will help me in getting the feedback from the employees and know what need to be done. Surveys are the medium through which employees write down or share their queries. Exit interview is other way to know the reason why an employee leaves an organisation. From this, I found that employee leave because they get better options or job that might be paying high wages.

The other common reason that was found in exit interview is that they are looking for better growth. This issue can be resolved if the growth options are showcased to the employees. The exit interviews are used in the process of employee retention as it helps in gaining the valuable insight of employees about an organisation. The organisation can make use of this information to make changes in the company. Being an HR, these methods are the best way to analyses the problem in an organisation. To achieve the organisational success the best way is to give the response to the employees regarding their query.

I will make sure that employees are satisfied from their jobs and the reason that causes reasons to quit is found.  The retention could be done by offering promotion to the employees so that they can develop their career path. Thus, it is the duty of human resource management team to describe the formal system of an organisation. The purpose of HRM team is to improve productivity and efficiency so that talent is acquiring and retained at the workplace by developing. I will make sure that regular feedbacks are taken so that the feeling of employees us known that weather employees are satisfied from their job or not.

I will make sure that relations with the employees are improved by building a passion towards their work. I will make sure that employees remain in an organisation for a longer time thus, will ask few questions in the exit interviews that why are they planning to leave, what is the main reason, do they have any issues with the co-workers or the management team. Once these sorts of questions are done they are analysed and the common issue is figured out. Thus, being an HR consultant I have realized that salary should be increased and rewards should be offered to the employees on timely basis. So, that they find a good working environment to grow their work experience. The efforts are put in hiring but at the same time it is important to retain the talent that is already present in the organisation. I will praise the employees if they do a brilliant job and offer them feedback if something goes wrong.

I will assure that the reason for leaving an organisation will be figured out and steps would be taken so that employees remain in an organisation. My main motive is to increase the retention rate so that organisations grow. They often leave an organisation when they become unsatisfied from the senior management and face lack of opportunity or advancement at the workplace. The workplace culture would be improved and will offer them chances to work in a challenging environment. Thus, to retain the employees it is important to offer comparative benefits so that employee needs to fit.

References

Ahammad, M.F., Tarba, S.Y., Liu, Y. and Glaister, K.W., 2016. Knowledge transfer and cross-border acquisition performance: The impact of cultural distance and employee retention. International Business Review, 25(1), pp.66-75.

Aruna, M. and Anitha, J., 2015. Employee retention enablers: Generation Y employees. SCMS Journal of Indian Management, 12(3), p.94.

Cascio, W.F., 2014. Leveraging employer branding, performance management and human resource development to enhance employee retention, pp. 56-120.

Cloutier, O., Felusiak, L., Hill, C. and Pemberton-Jones, E.J., 2015. The Importance of Developing Strategies for Employee Retention. Journal of Leadership, Accountability & Ethics, 12(2).

Columnist, G. (2017). 10 Reasons Why Your Best Employees Quit. Available from https://hrdailyadvisor.blr.com/2015/08/14/10-reasons-why-your-best-employees-quit/ Accessed on 19 nov 2018.

Deery, M. and Jago, L., 2015. Revisiting talent management, work-life balance and retention strategies. International Journal of Contemporary Hospitality Management, 27(3), pp.453-472.

Florentine, S. (2017). 8 reasons good employees leave — and how you can prevent it. Available from https://www.cio.com/article/2858746/careers-staffing/9-reasons-good-employees-leave-and-how-you-can-prevent-it.html Accessed on 19 nov 2018.

Holtom, B.C. and Darabi, T., 2018. Job Embeddedness Theory as a Tool for Improving Employee Retention. In Psychology of Retention (pp. 95-117). Springer, Cham.

Iqbal, S. and Hashmi, M.S., 2015. Impact of perceived organizational support on employee retention with mediating role of psychological empowerment. Pakistan Journal of Commerce and Social Sciences, 9(1), p.18.

Pittino, D., Visintin, F., Lenger, T. and Sternad, D., 2016. Are high performance work practices really necessary in family SMEs? An analysis of the impact on employee retention. Journal of Family Business Strategy, 7(2), pp.75-89.

Presbitero, A., Roxas, B. and Chadee, D., 2016. Looking beyond HRM practices in enhancing employee retention in BPOs: focus on employee–organisation value fit. The International Journal of Human Resource Management, 27(6), pp.635-652.

Ribes, E., Touahri, K. and Perthame, B., 2017. Employee turnover prediction and retention policies design: a case study. arXiv preprint arXiv:1707.01377.

Terera, S.R. and Ngirande, H., 2014. The impact of rewards on job satisfaction and employee retention. Mediterranean Journal of Social Sciences, 5(1), pp.481.

Vasquez, D., 2014. Employee retention for economic stabilization: A qualitative phenomenological study in the hospitality sector,pp. 45-90.