Problems in managing retention and employee absenteeism by HR Managers - Essay Example

? Individual Paper Table of Contents Introduction 3 Problems in managing retention and employee absenteeism by HR Managers 3 Recommendations- Addressing the problems of employee attritions and absenteeism at the workplace 7 Conclusion 9 Reference 10 Introduction Employee attritions and absenteeism at the workplace are some of the glaring problems affecting businesses today. Turnovers can affect the overall productivity of firms and can be the root cause of other difficult problems too. One man leaving the organization can generate insecurity and anxiety at the workplace and can leave behind a situation of low morality, apprehensions and anxiety. It accounts for one of the largest costs that employers need to bear today. Besides losing out on a crucial talent which is valued in the organization, the organization is also likely to suffer from the loss of business reputation and image in the market. This could not only act a catalyst in losing out on the potential talents in the industry but the firm can also appear as an unattractive employer to work with. The spoil of reputation and image can prove to be extremely damaging for the business’s performance and productivity in the market. Employers have been seen to be increasing awareness about the problem. They have been redesigning their policies and practices required for laying the foundation of a productive and satisfied workplace. However, before implementing strategies, a complete and thorough analysis of the potential causes and reasons for turnover must be analyzed. The project seeks to identify the concerns facing HR managers in organizations in trying to retention employees and reduce absenteeism at the workplace. On the grounds of potential concerns for the employer, the project seeks to devise strategies for addressing these problems. Problems in managing retention and employee absenteeism by HR Managers Organizations make a lot of investments on employees in the form of induction and training programs, developmental programs, maintenance and retention programs in the organization. Thus, managers must always try to minimize costs incurred in the form of employee turnovers. According to Kevin (2004), Even though there does not exists any standard framework based on which the turnover process of employees can be understood, numerous factors have been found to be useful in interpreting turnovers effectively in organizations. Thus, researchers have focussed on the need for understanding turnovers more specifically; the sources which determine the turnover process, their effects and the strategies that managers can put to use to minimize turnovers in the organization. With the expanding aspect of globalization, organizations are increasingly required to develop and generate such tangible products and services which are based on the strategies created by employees. According to Meaghan et al. (2002), these employees are of great critical importance for the organization as their value to the organization is necessarily intangible and cannot be easily replicated. Thus Abbasi et al. (2000) considers it essential for organizations to regard employees as major contributors towards the achievement of organizational goals and objectives. Managers must necessarily control turnover rates for the sake of organizational success. The major literatures on turnovers are thus concentrated on three main areas, namely, sources of turnovers, effects of employee turnovers and strategies for minimizing or eliminating turnovers (Ongori, 2007, p.1). Researchers like Bluedorn, 1982; Kalliath and Beck, (2001) have seeked to understand the factors which determine individual’s intentions to quit a job. They have attempted to investigate the possible antecedents of intentions which lead people to quit. Till date there has been very little consistency in their findings from these researches. Thus there can be numerous reasons why people can switch over from one organization to another. Some of the most probable reasons found by Firth et al. (2004), which managers have to deal with, are job related factors such as stress, lack of faith or commitment towards the employer and job dissatisfaction among employees. This shows that these are individual decisions which influence them to quit. Some of the other factors such as sense of powerlessness, personal control and locus of control are some other factors which also cause the same. Firth et al. (2004) defines locus of control as the extent to which individuals believe that external factors such as opportunities and power control events which subsequently influence their own lives. Researchers have also regarded economic reasons for employee turnovers. According to the views of Manu et al. (2004), local labor market conditions account for organizational stability and success. Large and stable organizations consequently are able to deliver better job prospects and better chances or opportunities of advancement along the organizational hierarchy for employees. They are also in a position to offer better and higher wages and ensure greater organizational attachment. One of the other important factors by researchers which contribute towards high employee turnover in the organizations is role stressors. Role ambiguity is regarded as the difference between people expectations about the job and the company’s expectations from them. This creates ambiguity regarding the job role and responsibility that people think to deliver. This situation can arise because of lack or inadequacy of communication between them or unclear and discrete expectations of supervisors and peers in the organization or even ambiguous methods of performance evaluations and management (Ongori, 2007, p.2). Ambiguous performance management systems can be one of the prime reasons for employees deciding to quit the organization. This is because it is likely to generate a situation in which there could be unfair evaluation of performance, biased evaluations and outcomes which can have damaging effect on the employee’s morale and performance at the workplace. According to Kahn, et al. and Muchinsky (1990), there could also lead to misunderstandings regarding employee’s expectations as to how they could do the job differently or in a better manner. Insufficient information regarding the ways of performing a job effectively, uncertain expectations of supervisors and peers about what kind of job is expected of them; extensive pressure at the workplace; inadequate consensus on the various on the job duties and functions might generate lack of involvement and association of the employee at the workplace. On account of these reasons they can remain less satisfied with their careers and jobs, less committed and loyal towards the organization and eventually demonstrate a propensity towards quitting the workplace. In case the roles and responsibilities of the employee is not correctly and completely spelled out by the management and supervisors of the organization it can eventually accelerate the process of turnovers and employees quitting their jobs on account of lack of clarity (Ongori, 2007, p.2). Managements are often seen to make the mistake of imposing quantitative approaches for managing employee performances. This leads to disenchantment among employees leading to turnovers. Thus cost oriented approaches towards managing employees must be avoided at all costs. These approaches must be minimized substantially if managers want to eliminate turnovers at the workplace (Ongori, 2007, p.2). Griffeth et al. (2000) have particularly noted pays and pay related variables and their implications on employee turnovers. The analysis reveals a positive association between pays and performance of an employee. Their analysis specifically demonstrated that when high performers are inadequately paid they are more likely to quit. The provision of adequate financial incentives enhances the chances of employees staying loyal and committed to the organization and vice versa. Some of the other practices which they have identified as having serious implications on organizations in the form of employee turnovers are managerial style, hiring practices, lack of a competitive system of compensation, lack of employee recognition in the organization coupled with a toxic working environment (Ongori, 2007, p.2). Recommendations- Addressing the problems of employee attritions and absenteeism at the workplace First and foremost it is crucial for the management to pay down transparent and clear job description for employees. There must not any clashes or overlapping of job responsibilities. Employees must work according to the exact requirements of the job. The clear descriptions, guidelines and deadlines are required for making them sure about what is expected of them. This creates a sense of security and job satisfaction of the employee. They are able to deliver as per requirements which make them sure about their won performance and do not leave behind any discrepancy regarding how their performance would be evaluated. This must be followed by a proper and effective system of performance management. This must also be unbiased and transparent; concisely laying down factors on which employees performances would be rated (Hammerberg, 2002, p.16). Employers must be particular about job related problems from the workplace. It is crucial that good performances must be rewarded and recognised. In other words, motivation is one key aspect which must be enhanced. A motivated workforce is a productive workforce. Disregarding good performances can be damaging for the organization and can end up losing the most critical and potential talents from the workplace. In this context remuneration and compensation standards are of strategic importance. Firstly compensation standards not as per industry levels can ruin image and reputation of the organization in the form of being unattractive as an employer. Secondly, in the world of increased competitiveness when adequate remuneration is not paid to an employee deserving a particular financial compensation he can be easily tempted to join an organization which recruits him at a higher compensation level. Along with financial incentives employees must be appreciated with the use of good rewards. The management can arrange for certifying employees for their performance and appreciate their work in the organization. Such acts can go a long way to resolve the problem of employee attritions. Not only would it enhance job satisfaction of employees but also work towards enhance an environment of competitive working. Recognition at the workplace must necessarily be complimented with proper training and developmental programs along with career development program. This must be done to provide employees with the perception that the management cares about their performance and is concerned about their progress in the organization. Proper training and developmental programs are an indication to show that employees are being educated to perform in a higher position than where they currently exist. This would propel their initiative and encouragement to better their performance in order to progress to a higher level in the organization (Hammerberg, 2002, p.16). It is also essential to adjust recruitment and selection process in the organization so as to ensure that the right types of candidates are recruited who can adjust to the prevailing organizational culture and environment. This refers to testing behavioural aspects of employees so as to evaluate their behavioural aspects such as stress and time management skills, tenacity, group activity and team building skills, level of motivation, leadership and managerial skills. Having the right recruitment procedures and selecting candidates with the right behavioural qualities can lower chances of them leaving the organization and nurture and positive and committed workforce (Hammerberg, 2002, p.16). Conclusion It is seen that organizations bear extensive costs of recruiting an employee and thus the need to retain him is equally important. However, researchers have highlighted numerous reasons which compel them to leave the workforce and join some other organization. Firstly, it is see improper communication and vague job descriptions can make them feel insecure as they are likely to be unsure about the management’s expectations out of them. This can trigger the process of turnovers and absenteeism. Thus setting suitable standards of job descriptions and guidelines are an absolute necessity for ensuring that employees work up to the required standards. Also a well defined and transparent performance management system is also required to ensure that parameters on which their performances would be evaluated. Eliminating biasness and vague parameters on which their work is evaluated is important in the organization. Some of the factors like compensation and incentive plans, bonuses and rewards must be set as per industry standards. This is because in the age of cut throat competition employees can be easily tempted towards another organization having a higher level of compensation level. Lastly, it is crucial to nurture a motivated workforce and this can be done by harnessing a competitive environment in which they are paid proper incentives, provided training and developmental activities and provided with proper career development plans and policies. Work recognition, reward and incentives must also form critical components of the system. Reference Hammerberg, J. H. (2002). Reasons given for employee turnover in a full priced department store. University of Wisconsin-Stout. [Pdf]. Available at: http://www2.uwstout.edu/content/lib/thesis/2002/2002hammerbergj.pdf. [Accessed on July 18, 2012]. Ongori, H. (2007). A review of the literature on employee turnover. African Journal of Business Management pp. 049-054, June 2007. [Pdf]. Available at: http://www.academicjournals.org/AJBM/pdf/pdf2007/jun/ongori.pdf. [Accessed on July 18, 2012]. Read More