Aviation Employees Retention - Literature review Example

Aviation Employees Retention Name: Institution: Date: 2.0 Literature Review 2.1 Individual Factors One of the fundamental factors that influence and impact on employee retention and turnover rates in an organization are the employee individual factors. In his case, the individual fairs are the intrinsic employee elements and variables that impact on their operations and their decision making process. This literature review section offers a strategic analysis of the process and manner through which the individual employees’ variables and factors influence their retention rates. Among the core employee variables and internal factors as identified by Liu, Mitchell, Lee, Holtom and Hinkin (2012) include career passion, intrinsic motivation, and employee culture. 2.1.1 Career and Passion for the Industry An employee career passion can be described as the nature and extent to which an employee is willing and ready to advance in their career. In this case, arguments have been developed on the effects of a career passion. On one hand, De and Carlsen (2008) stated that employee with a high career passion have a tendency to withstand challenging work situations and operations. On the contrary, those with a low career passion have minimal tolerance to work related challenges. In this case, the theoretical analysis forms the assertion that the rate of retention is relatively high for employees with a high career passion as compared to those with a low career passion. The above arguments can be illustrated and critically reviewed through a series of empirical studies. Brunetto, Teo, Shacklock and Farr‐Wharton (2012) developed a study evaluating the nature and extent to which a career passion impacted on employees’ retention and turnover ratio. I this case the research study focused on the evaluation of career passion and ability to withstand challenges. In its review, the analysis concluded that the employee with a high career passion, exhibited g-high challenges tolerance tendency. In this case, the employees were willing to sacrifice their additional benefits at the expense of developing their careers. This assertion was later evidenced by Ho, Wong and Lee (2011). In this case, the evaluation stated that the employees with a high career development and passion were increasingly concerned with the elements that supported their career development and growth. On the other hand, for those with a lower career passion, they were concerned with the additional gained benefits form an organization, rather than the opportunity to grow their careers. As such, based on the above arguments, it is evident that variances in career passion create variances in the nature and extent of employee retention and turnover. In the development of employee retention for the employees with a high career passion, Govaerts, Kyndt, Dochy and Baert (2011) recommended the use of development opportunities. These included approaches such as employee engagement and inclusion in the decision making process. The application of such practices allowed the respective employees to advance and grow their careers. In this case, the analysis established that under such conditions, only the employees with a high career passion were poised to being retained. On the other hand, in situations with low career development opportunities and high returns and wages, the rate of turnover was high for the career passion employees, and low for the low career passion employees. Thus, the above analysis serve as an illustration that indeed, the career passion between many employees differs and influences their retention or turnover rates differently, in the same work conditions, and environment. 2.1.2 Intrinsic Motivation Employee motivation can be categorized into two main categories, namely the extrinsic and the intrinsic motivations respectively. In this regard, the definitions of the diffenet motivations are derived from the motivational element sources. In this case, while as the extrinsic motivation emanates from the eternal environment and factors, the intrinsic motivation emanates from the internal employee traits. Therefore, based on this description, it is apparent that different employees with diverse traits are bound to posses and exhibit different motivational levels. There exists a diet relationship between motivation and employee retention rates. In this context, Skudiene and Auruskeviciene (2012) stated that employees level of motivation implicated on their willingness to be retained in an organization, or decisions to move on to new employers in the market. As such, highly motivated employees were likely to exhibit a low turnover ratio, and a high retention rate than the lowly motivated peers in an organization. There are two key personality traits that impact on employee intrinsic motivation. They are optimism and pessimism traits. On one hand, optimist employees are the employees who perceive the positive nature of an organization and the environment. In this case, such employees are mainly focused on the positive elements of an employer and organization. More than not, such employees overlook the negative elements in an organization as an employer. In addition, the optimist employees are focused on the progress and situation improvement. In this regard, although the short term period could be riddled and coupled with challenges, they often forecast and expect a better turn of events. Therefore, although the current situation could be unsuitable, the expectations of a future positive development motivate such employees. In this context, Rego, Sousa, Marques and Cunha (2012) developed a study evaluating the process and approaches through which to motivate optimist employees. In this case, the analysis argued that such employees were motivated and exhibited high retention rates in an organization is there was the expectations and hope for appositive future development. In this case, organisational practices such as changes towards systems improvement and efficiency development in the long run period, besides short term negative implications enhanced a high retention rate and a low turnover among the employees. On the contrary, are the pessimist employees? These are employees who are focused on the risk of a negative occurrence. In this case, Tripathi and Chaturvedi (2015) established that the probability of an organisational change creates a high turnover among such employees. Therefore, the adoption of practices such as organisational change process, create the risk of a negative occurrence, a move prompting a high employee turnover for this employee category group. In this case, the employees are anti changes in the market. This is because organisational changes create and increase the overall risk of the skills needs change. On the contrary, the existence of a stable market environment creates a high employee retention rate. In this case, the employees are highly motivated by the presence of positive elements, but are not motivated by the expectations of future positive developments. Therefore, in order to facilitate the retention approaches and methods to apply, the respective organisations should analyze their employees ‘traits to establish if they fall under the optimist or the pessimist groups respectively. 2.1.3 Culture: A sense of responsibility The third element influencing employee retention and turnover, under the individual employees’ factors, is the employee culture. In this case, an employee culture can be described as the manner and approach through which an employee conducts their activities. The development of an employee culture and beliefs is mainly derived from the eternal market environment. Alvesson (2012) developed an evaluation on some of the key employee cultures, which can be exhibited in an organization. One of the cultures is a liberal participative culture. Under this employee culture, the employees are hedged on a culture in which all the decisions are made through participation and inclusion. This culture is mainly evident in the Western culture organisations. On the other hand, Jang and George (2012) established that the directives abiding culture was a major employee culture. Under this culture, the employees have the tendency of taking orders and directives, rather than actively participating in the orders and directives generation. As such, the two main employees’ cultures impact on the nature and extent to which the employees can be retained, and their influencing factors for retention and turnover respectively. This assertion could be evidenced by the study developed by Govaerts, Kyndt, Dochy and Baert (2011). The study established that for the employees with a participative culture, their retention as based on the rate of employee engagement in the decision making process. As such, a high rate of employee engagement illustrated a high retention rate, while a low rate of employee engagement illustrated a high turnover ratio. On the contrary, for the directives abiding culture, the rate of retention as based on the communication process efficiency. In this case, the presence of a clear command structure, and the flow of information from the top bottom increased employee retention. However, a less efficient command structure reduced the retention rates while increasing overall employee turnover trends. Therefore, based on the above analysis it is evident that the employee culture has a direct influence and impact on their retention and motivational levels. Therefore, in the strategic evaluation of relevant retention strategies, organisations should consider and incorporate the various employee cultures. The above three reviews are an illustration that the individual employee factors have a direct role and influence on their respective retention or turnover rations. As such, in the study analysis, the concept of employee individual factors in the aviation industry will be evaluated. This will be investigated in connection to the overall impact on the industry employee retention and turnover rations. In this case, the study analysis investigates how the different individual factors have played a role in the current employee retention and turnover situation in the industry. 2.2 Work Environment The second element that influences the level of employee retention and turnover in the market is the existing work environment. In this case, a work environment can be described as the combination of external work factors under which an employee operates in. In the determination of a work environment as a key pillar in the retention and employee turnover, a number of theories come into play. One of the fundamental theories is the Herzberg two factor theory. The theory holds that there are two factors in a working environment. The factors are classified as the motivational and hygiene factors. 2.2.1 Motivational Factors: self development programs and Job security On one hand, the motivational factors are an organsiational working environmental factors whose presence allow for increased employee motivation. In this case, the presence of these factors increases employee motivation and overall workplace performance. In this case, as already illustrated, there exists a direct employee motivation and retention rates relationship (Hong et al, 2012). In this case, a high employee motivation and satisfaction rate translates into a high retention rate in the long run period. One of the examples of a workplace motivational factor is employee engagement and empowerment. Employee empowerment and engagement could be described as the process through which an organization decentralizes its operations and decision making process. In this case, the organization offers the employees an increased responsibility and duty to performance and executes their functions. Boamah and Laschinger (2014) developed a study evaluating the role of employee empowerment and engagement to the overall retention rates in the healthcare industry. In this case, the study established that through employee engagement, organisations were able to factor in their interests. As a result, the resulting organisational decision and strategies are a combination of the employee interties with those of the organization. One of the fundamental effects of such combination is the elimination of conflicts. As a result, this encourages the employees to support and own such decisions, enhancing their retention. A second example of a motivator in the workforce is the adoption of a growth and development opportunity. In this case, organisations applying such a system allow for employee training and career development. Consequently, such an opportunity creates a mutual benefit system, where besides offering quality and productivity to the organization, the employees acquire a chance to enhance and grow their careers. In this regard, Kraimer et al (2011) developed a strategic analysis evaluating the process and extent to which employee career growth and development impacted on retention and overall turnover rates in the market. In this case, the study established that organisations with a high growth and development opportunities exhibited a high employee retention rates. This can be analyzed and explained through the argument that the employee development facilitated the overall emotional and psychological goals achievement in an organization. On the other hand, organisations with minimal career growth and development opportunities had minimal retention rates and high turnover rations. This is because the lack of a long term benefit and development opportunity creates the impression of the lack of a long term organisational commitment to having such employees. In this case, if an organisations invests highly in developing and growing an employee, they are likely to invest more in retaining the employee in the long run period However, if such investments are minimal, such organsations are easy and quick in replacing such employees. As such, the above analysis serves as an illustration that the application and the presence or the absence of motivational factors directly impact on employee retention and turnover rates in the market. 2.2.2 Hygiene Factors: Financial reasons for employee turnover The hygiene factors in an organization are the organsiational environment factors whose presence does not guarantee employee motivation. However, their absence causes employee dissatisfaction. In this case, for the hygiene factor, their absence creates and enhances employee turnover ratio. However, their presence is not a guarantee or a factor for employee retention rates in an organization. One such practice is the organisational policies in the market. In this regard, the development of practices such as employee remuneration enhances retention. In this case, Yang, Wan and Fu (2012) developed an analysis on the impacts of employee remunerations on the overall employee turnover ratio in the Taiwanese hotel industry. In its analysis, the study established that a high employee remuneration rate reduced the risk of employee turnover. However, the review stated that although a high remuneration reduced turnover in the short term period, it was an ineffective tool for retaining employees in the long run period. This study analysis could be analyzed through an illustration and review of the Maslow’s hierarchy of needs. In this case, the theory, developed by Abraham Maslow argues that employee and human needs can be classified into six main stages. In this case, the needs change and evolve from one stage to the other over the years. The stages are the physiological, safety, social, self esteem, and self actualization stages respectively. In this case, the employee needs rise from one level starting at the least level, physiological, to the highest level of self actualization. In relating the theory to the study analysis, the financial needs achieved through the high remunerations are a physiological factor (Wellin, 2007). Therefore, although the process can enhance employee retention while their needs are at the stage, it cannot create sustainable retention strategy as the employee needs are to change over time. The second hygiene factors that can illustrate the reduction in turnover ratio are the organisational policies. Buciuniene and Kazlauskaite (2012) evaluated the relationship between organisational policies and the overall turnover rates. In this case, the study concluded that organisations with proper and well established policies facilitated enhanced reduced retention rates. In this case, the review findings can be analyzed and explained through the Herzberg two factor theories (Richard, 2012). In this regard, the employee turnover rates are high in instances where the orgnisational systems fail to meet and deliver on the employees psychological contracts. These are the emotional and unwritten expectations that employees have on an organization. Therefore, through the presence of a clear organisational system and policies, the employees formulate their psychological contracts expectations in line with the expected values (Festing & Schafer, 2014). Consequently, this enhances the probability of the expectations being met. However, if the organisations lack a clear policy system, the employees are unsure of what to expect. Thus, this leads to the formulation of unrealistic psychological contracts, which are often not met. The above analysis on the role of organsiational work environment illustrates that both the hygiene and motivational factors play a critical role in impacting employee turnover and retention rates respectively Thus, in the study analysis a focus was developed evaluating the extent to which the application of the different factors in the aviation industry working environment impacted on employees retention and turnover rates in both the short and long run period. Industry 2.3 Job Satisfaction The third element influencing the rate of employee retention and turnover in organisations is the extent of job satisfaction. In this case, job satisfaction could be analyzed as the situation at which the employees are satisfied and happy with their duties and responsibilities (Bolweg, 1976). There are a number of factors that influence the level and extent of job satisfaction. Among them is job design. In this case, the element of a job design is the process through which the responsibilities of a given job are evaluated and developed. In this case, he scope and nature of the allocated tasks for every employee level determine the employee satisfaction and subsequent retention levels. In order to evaluate the nature and extent to which organisations applied job design as a means of enhancing retention, Wood, Van Veldhoven, Croon and De Menezes (2012) developed a study on this concept. In this case, the study evaluated the different element and concepts that enhanced employee retention in job designing. One of the identified practices was job enlargement and enrichment. In this case, the process was characterized with the development and increment of the employees’ duties and responsibilities. In this regard, Truxillo et al (2012) revealed that a regular job re-designs and the enrichment of employee roles provided new tasks, thus reducing the risk of employee boredom. In this case, employee boredom and the lack of challenging tasks, due to monotony are attributed with high employee turnover rates. Thus, by reducing employee boredom, the job re-design process creates a suitable basis through which the employees are challenged. To well explain this analysis, Bontis, Richards and Serenko (2011) developed a study valuating the relationship between employee challenging tasks and job satisfaction. As such, the review established that through the conduction of challenging tasks, employees were bound to expand their skills and knowledge in the long run period. Therefore, the process allows for the development of employee development, a critical component for facilitating employee job satisfaction (Stride, Wall & Catley, 2007). 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