Performance Management and Rewards - Essay Example

Performance Management and Rewards Table of Contents Introduction 3 Discussion 3 Retention- What does this mean? 3 Retention – why? 3 What makes an employee Leave the organization? 4 How to increase retention? 5 How to manage retention of employees? 5 Retention strategies for Hertfordshire-based SME 5 Recommendations 7 Conclusion 8 References 9 Appendices 11 Introduction In this fast-moving aggressive scenario, both the organizations as well as the human resources are entirely dependent over one-another. As a result of which the effect of one is viewed on another such as retention or recruitment of an experienced employee might help in enhancement of the profitability and productivity of the organization in the market among others. Thus, human resources are considered as the engines of attaining growth for the organizations, operating in this age so as to reduce the challenges of the business. Due to such reasons, it’s extremely essential to retain the human resources of the organization so as to enhance its productivity and brand value in the market among other rival players. This essay is divided into four phrases mainly highlighting the importance of retention as well as the ways to increase the rate of retention of the employees in the organization. Along with this, the retention strategy is also devised in order to reduce the ratio of attrition of the Hertfordshire-based SME so as to amplify its reputation and efficiency in the market among others. Discussion Retention- What does this mean? It is the process by which, employees are retained within the organization for longer period of time so as to enhance its image and productivity. Due to which, retention is recognised as the most important tactic of talent management process. So, it is offered higher attention by the organizational entrepreneurs in this competitive age (Cannon & McGee, 2011). Retention – why? Retention of an employee within an organization is essential as it acts as its driving force. This is because it helps in introduction of varied types of inventive products and services thereby satisfying the changing requirements of the customers. As a result of which, it enhances the reliability and trust of the customers towards the brand thereby amplifying its position and dominance in the market among others. Not only this, employee retention also gears the goodwill of the organization to a significant extent thereby amplifying its cost of profit margin and net income. In addition, employee retention also helps in: Regaining the efficiency and effectiveness of the organization Long term success and profitability Improvement of turnovers Thus it might be stated that retention of employees might enhance customer satisfaction, improve total sales cost and amplify returns of the Hertfordshire-based SME. What makes an employee Leave the organization? The term retention seems easy, but it’s extremely hard. This is mainly due to various reasons presented below: Lack of appreciation- this is one of important causes of attrition of the employees, working in an organization. As a result of which, the level of performance and productivity of the employees as well as the organization reduces thereby minimising its brand value in the market among its competitors (Saks & et. al, 2010, pp. 312-315). Stress of overwork- it is also recognised as one of the important causes of attrition of the employees of Hertfordshire-based SME. Due to which, the rate of devotion and commitment of the employees reduces significantly that might hinders the prosperity of the organization. Lack of growth opportunities- due to lack of growth opportunities of an employee, his or her level of performance declines that may not prove ineffective for the organization and its growth (Stephens & Wallace, 2003, pp. 681-690). Lack of compensation- it also plays a vital role in the life of an employee that might inspire the employee towards the idea of switch over to other organizations. As a result of which, the equity and market share of the Hertfordshire-based SME might get declined thereby hindering its path of success. Therefore, in order to enhance of revenue and total sales of the organization of Hertfordshire-based SME, its better devise effective retention strategies for the employees (McCooey, 2009, pp. 126-129). How to increase retention? In order to retain the employees in this age of aggressiveness, the best way is to offer higher attention over four core areas such as: competitive based pay, achievements and rewards of the employees, flexible working opportunities as well as flexible advantages like cash allowance, annual leave, medical insurances and others (Liebowitz, 2008, pp. 189-212). How to manage retention of employees? Retention of the employees might be reduced only by understanding the reasons of their attrition. Along with this, in order to retain the prosperity and success of the organization, proper implementation of retention strategies is extremely essential. This might prove effective for the Hertfordshire-based SME to reduce its total cost of recruitment and selection (Dibble, 1999, pp. 512-523). Retention strategies for Hertfordshire-based SME The Hertfordshire-based SME might try to offer more concentration over the below mentioned points in order to reduce its staff attrition ratio. This is because, all the employee try to get engaged within an organization, that not only offers competitive pay but also support and proper recognition for his or her work. This might enhance the inner trust and morale of the employees thereby amplifying the rate of output of the Hertfordshire-based SME. In addition, many employees might retain in this organization thereby rejecting the proposal of other organizations. This might help in enhancement of the recognition and equity of the Hertfordshire-based SME in the market among other rival players. As a result, the rate of conflicts among the employees due to unfair policies and strategies might get reduced thereby enhancing the level of uniformity and equality in the Hertfordshire-based SME (Davidson & et. al. 2011, pp. 452-467). Employee retention strategies In addition to this, the major factors that need to be considered at the time of devising a retention strategy for Hertfordshire-based SME are presented below: Recruitment and selection of right employee or candidate for right job. Empowering the employees according to his or her skills and talents (CIPD, 2014). Motivating their inner morale to enhance their level of performance (Davidson & et. al, 2011, pp.112-128) Creating a friendly and harmonized environment, so as to improve the working standards of the employees (Compton & et. al. 2009, pp. 326-356). Offering effective training programs for the employees (Sims, 1998, pp. 178-190). Providing the employees all sorts of information and facts of the organization. Appreciation of their works (Beatty & Schneier, 1997, pp. 245-256). Trust them (Finnegan, 2010, pp. 556-561). Presenting the feedbacks of their performance after a specific period of time. Proper incentive, salary or bonuses for the employees. Presenting the remuneration in accurate time. Enhancement of interpersonal relationship and team-work among the employees. Equal policies and strategies for all employees, irrespective of caste, creed, race and culture (Tidd & Bessant, 2010, pp. 213-223). If all the above mentioned factors might be followed, then the rate of attrition of the employees of Hertfordshire-based SME may surely get reduced. Recommendations In order to make the retention strategy of Hertfordshire-based SME effective in all its aspects, it’s extremely essential to recruit an experienced and talented manager or a leader. This is because; a manager or a leader might enhance the productivity and commitment of the employees by varied reasons stated below: Generating a motivating situation for the employees so as to enhance their devotion towards the assigned goals. Offering training and various types of valuable information to his employees so as to tackle business challenges in an efficient way. Delegating all the authorities of the organization in the employees as per their talents and qualities. Resolving all sorts of problems of the employees so as to improve their performance. Inspiring the employees to take part in decision-makings in order to present their ideas and motives to all. Encourage the employees for better performances and results in future. Organization of cultural programs within the organization in order to reduce work stress and boredom. Performance-based incentive need to be presented to the employees at accurate time Thus, it might be depicted that the manager or leader plays a very effective role within an organization, so he need to be selected with extreme concentration. Conclusion Conclusively, it might be stated that employee retention is the most crucial concept for the organizations like Hertfordshire-based SME in this age. This is because; they are considered to be the prime asset of an organization that may be used for long-time success and prosperity of the brand. Other than this, retention of the experienced employees might help in introduction of varied types of inventive products and services thereby amplifying the rate of satisfaction of the customers in this age of numerous substitutes. As a result of improvement of the satisfaction of rate of the customers, the total sale of the products might get enhanced thereby amplifying the profitability of the organization in the market among others. Along with this, employee retention might also prove effective in enhancing the goodwill and brand image of the organization like Hertfordshire-based SME in the market among other rival contenders. Hence, it might be stated in a nut-shell that proper respect and dignity of the employees would surely pay effective results to the organization in its future era. It would amplify its returns and customers bases thereby boosting its competitive position in the market. As a result of which the threat of new entrants might get lowered and the dominance may get enhanced to a significant extent among other rival players of the market. So, employee retention is extremely essential. References Beatty, R. W. & Schneier, C. E. 1997. New human resource roles to impact organizational performance: From "partners" to "players.” Boston: Harvard Business School Press. Compton, R. L. & et. al. 2009. Effective Recruitment and Selection Practices. London: Sage. Cannon, J, A. & McGee, R. 2011. Talent Management and Succession Planning. [Online]Available at: http://www.cipd.co.uk/nr/rdonlyres/cc24fef5-42cb-465b-906c-5c6b6651aaa0/0/9781843983095_sc.pdf [Accessed on 11th February, 2014]. CIPD. 2014. Talent management: an overview. [Online]Available at: http://www.cipd.co.uk/hr-resources/factsheets/talent-management-overview.aspx [Accessed on 11th February, 2014]. Coca-Cola Enterprise Ltd, 2014. Annual Report. [Online]Available at: http://www.cokecce.com/system/content_panels/22/pdf/CCE_2012_AR_FINAL.pdf [Accessed on 11th February, 2014]. Davidson, J, P. & et. al. 2011. Motivation. London: Sage. Dibble, S. 1999. Keeping Your Valuable Employees: Retention Strategies for Your Organization’s most important resource. London: John Wiley & Sons. Finnegan, R, P. 2010. Rethinking Retention in Good Times and Bad: Breakthrough Ideas for Keeping Your Best Workers. London: Nicholas Brealey Publishing. Liebowitz, J. 2008. Knowledge Retention: Strategies and Solutions. London: Sage. McCooey, D. 2009. Keeping Good Employees On Board: Employee Retention Strategies to navigate any economic storm. New York: Morgan James Publishing Stephens, D, O. & Wallace, R, C. 2003. Electronic records retention: new strategies for data life cycle management. Germany: ARMA International. Sims, R. R. 1998. Reinventing Training and Development. New York: Springer. Saks, M. A. & et. al. 2010. Managing Performance Through Training and Development. London: Sage. Schneier, C. E. 1994. The Training and Development Sourcebook. New York: Springer. Swart, J. & et. al, 2012. Human Resource Development - Page 79. New York: Cengage Learning. Sony Corporation, 2014. Sony. [Online]Available at: http://www.sony.net/SonyInfo/IR/financial/ar/2013/shr/pdf/AnnualReport_E.pdf [Accessed on 11th February, 2014]. Tidd, J. & Bessant , J. 2010. “Managing Innovation: Integrating Technological, Market and Organizational Change” . Germany: JohnWiley & Sons. Appendices The organization of Coca-Cola enhanced its total sales and profitability in the segment of beverages in the market of United Kingdom after implementation an effective employee retention strategy and an experienced mentor or leader, Mr John. E. Brock. Due to which, the reputation of the organization of the organization of Coca-Cola enhanced significantly thereby amplifying its range of customers and employees as well as presented below: Source: (Coca-Cola Enterprise Ltd, 2014). So, retention strategy extremely effective for the organization of Coca-Cola among others rival players. Similarly, the organization of Sony enhanced its market share and profitability to a significant extent due to its employee retention strategy. Source: (Sony Corporation, 2014). Thus, it might be easily depicted that employee retention is extremely essential for any organization so as to improve its brand image and position in the market among many other rival players. As a result of which, both the organizations mentioned above such as Coca-Cola and Sony are recognised as market leaders in their segments among others. Such dominancy of the organizations took place mainly due to unique, experienced and cultured employees that amplified its brand value of the market. Similarly, the Hertfordshire-based SME might try to implement the prior mentioned strategies within its organization so as to position itself just like Coca-Cola and Sony in its segment among others. Along with this, it might try to retain its employees so as to increase its product lines and demand in the market thereby amplifying the trust and reliability of the customers. Only then, it might also amplify its total sales, net income and profitability among many other rival players in the market. Not only this, the level of devotion and commitment of the employees in the organization of Hertfordshire-based SME might also get enhanced due to the implementation of various unique strategies and policies such as presentation of incentives, bonuses, training programs, proper appraisals, promotions and many others. In addition, the management of Hertfordshire-based SME also need to recruit an effective leader, like the CEO of Coca-Cola so as to motivate and encourage the employees towards their assigned duties in order to improve the productivity and efficiency of Hertfordshire-based SME. Along with this, due to the implementation of such strategies cooperation of the employees might also get enhanced thereby reducing the rate of conflicts and attritions. Only then, the employees might work together that might help the organization of Hertfordshire-based SME to achieve its overall target and goals. Apart from this, due to cooperation and interpersonal relationships, the range of employees might get enhanced just like Sony Corporation thereby boosting its portfolio and image in the market among other existing contenders. Along with this, the rate of equity and market share of the organization of Hertfordshire-based SME might get enhanced to a significant extent. Likewise, the self-esteem and reputation of employees of Hertfordshire-based SME might also get enhanced that may reduce the risk of attrition or switch over to other organizations. Hence, it might be stated that employee retention is not just a buzz term but the fuel that may drive the organization towards success. Read More