Incentive Program for Retention of Employees - Essay Example

Incentive Program for Retention of Employees Proposal Essay - Incentive Program for retention of employees Necessity of improving retention. Growth of any organization is dependent on having a team of good quality employees - longer the duration they are retained - faster and higher would its growth characteristics. Further, it is observed that the task of retention becomes very difficult when opportunities for personal growth are plenty, mostly arising from very favorable business environment.

In addition to the loss of the best skilled personal, the organization too becomes less preferred one in the business circle. The immediate effects anticipated in these circumstances are drastic reduction in the ingenuity and creativity among the working group often leading to lower productivity levels. Such type of situations could also result in the reduction of innovative spirits of the group, irregularity in attending the client/customer requirements , delayed projects /outputs and ultimately drastic reduction in the profits.

Thus every successful business venture would require their own employee retention strategy not only to ensure its sustainability in business but also to create a spirit of every employee. Successful cases of employees retention Various successful initiatives have been reported across the world with respect to the retention rate of the employees in the organizations. One such analysis is reported based on a study at NASA . The aerospace industry faces Herculean task of retaining a satisfied team of engineers with a very few graduating into the employment scene from the schools.

Thus the shortage in the supply of talent is the bottleneck faced by most of these companies as it was very difficult to locate a suitable replacement. The research analysis conducted on the NASA Marshall Space Flight Centre showed that practicing appropriate and innovative ways to retain their employs can pay rich dividends (Herdey et al, 2008). One of the prime reasons that make well performing employees to think about alternate job locations are ineffective understanding and communication issues prevalent at work places.

Creation of such scenarios often culminates in the natural withdrawal of the employee from the present place of work to another place where one hopes to have a better environment of work. To arrest such migration across organizations, different techniques are widely practiced and among them the most common technique is to award higher incentives to good performers. But it is understood that the incentive systems often orients employees performance towards the inventive component rather than what the organization expects them (Pavla, 2002).

The selection of the technique must also consider the impact of such technique during the period of low business activity. In the case of business slow down, all the companies would be forced to work on very tight budgets and often incentive systems are the first one to get hit. And, discomfort the employee express has led to severe loss of productivity also. Proposed interventions to improve retention For the organization like Quanta Services, the retention mechanism need to be more innovative and efficient.

Retention planning shall become one of the most vital component in the strategic planning process. An organization that has a behavior of acknowledging its vision and values of its employees stands at a great advantage. One such method could be to have a exclusive guest column by the employee in the space hired by the organization in any suitable print media. This could create employees feel the pride of being a valuable spokesperson for their organization. feel their significance. Majority of the employees are inapt to properly handle the work-life balance.

Organizations could come in as a helping hand to sort their issues either by creating family counseling centers attached to human resources department. These centers could work towards creating a comfort zones for the employees which would force them to have a long term association with the enterprise. This could also be coupled with free medical camps and stress relieving programs that are periodically undertaken. All the above mentioned techniques could be followed during the times of low business period and it would add to their social equity factor.

Having a platform where employee could air their concern or issues is another aspect that most of the employees would be eagerly looking forward. Maintaining the anonymity in the receipts of the complaints and public disclosure of the clarifications would certainly help the employees reinforce the faith of the leadership which the best employees would certainly express even during the troubled times. Another way of increasing the retention in this organization is by having a specific retention allowance for all, which would be in proportion to the year each one have associated with the organization.

The less expenses that the company would have to bear for recruitment and the subsequent reduction in the new recruit training programmes would add to surplus fund. A portion of this saving could be the corpus for the retention allowance. Thus the organizations directly communicates the support the employers have given to ensure the growth. In order to maintain its business delivery, the importance of the retention cannot be limited to those within the limits of organizational framework. The retention policies shall span to all level of business - like the contracted agents, delivery people or any such groups who are very critical to the business of the organization but are not influenced by its administration.

Conclusion The effective employee retention policy in any organization need to be dynamic. It could vary across departments and also based on the characteristics of tasks assigned to each one. Further , the importance of strategic retention management of employees need to be evolved to ensure a long term performance of any organization. The role of human resource managers must be to create a long term plans for every employee joining the group. Identification of individual aspirations, abilities possessed by them and organizational performance would help the managers to prepare a road map for every employee and hence create a suitable functional space for every member of the team.

This would certainly lead to reduction of collisions and sudden withdrawal rate of employees from the workplace. References Herdy, R. , Monaco , L., Weibert , M. , Jacobs, B and Millwood, B. (2008) Employee Retention - A success storey, AIAA SPACE Conference and Exposition, 27 February, 2009 Quantas (n.d.), We are about solutions, 26, February 2009, Pavla, M. P. (2002), “Employee motivation, teamwork and retention, Client relations management. Change management“, 27, February 2009.< http://www.

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