Approaches Organisations Can Take to Retaining Key Human Resources - Literature review Example

Critically Evaluate Approaches Organisations Can Take To Retaining Key Human Resources Table of Contents Introduction 3 Discussion 3 What is an organization? 3 Who are the employees? 4 Why employee or human resource retention essential? 4 Benefits of human resource retention 4 Reasons of employee terminations 5 Approaches or retention tools of human resources 5 Role of HR in work force retention 8 Challenges in human resource retention 9 Analysis 10 Qualities for employee retention in an organization 10 After effects of a poor human resource retention 10 Conclusion 12 References 13 Introduction Sustainability seems extremely easy for an organization. However, it may not be possible, if an organization fails to retain its human resources in an effective way. This is because; human resource acts as the driving force of the organization that assists in enhancing its productivity and profitability. Along with this, it is the human resource or workforce of the organization that participates in various decisions so as to make it effective in long run. The human resources analysis and evaluates various key aspects of the organization, prior making the final verdict. So that, the decision might prove effective, both for the organization as well as the workforces in long run. In addition, it is the workforces or human resources that help an organization to cope up with various business challenges thereby enhancing its portfolio and dominance in the market among many other rival players. But all these positive effects might be possible only if the human resources or workforces are maintained and retained effectively. Only then, the organizational efficiency and equity might be retained and improved for a longer period of time, thereby reducing the threat of new entrants and substitute products. Therefore, it might be clearly stated that in order to enhance the level of sustainability and competitive advantage of the organization, retention of employees of the most essential requirement. Without which, an organization may not retain its prosperity and efficiency in the market among the other contenders in this age of competitiveness and high bargaining rivalry. Discussion What is an organization? Organization is described as a place where numerous individual of varied age-groups, races and creed arrive together and work in a coordinated way to accomplish the final objectives. Who are the employees? Snell & Bohlander (2010) states that, employees are considered as the assets of an organization, which need to be retained. This is because; it is the employees who work together within an organization in order to fulfil its upcoming demands and requirements. Not only this, the employees or the human resources act as the lifeline that enables the organization to enhance its profit margin and brand image in the market among other contenders. Why employee or human resource retention essential? Human resource retention is extremely essential for an organization in this age of competitiveness in order to reduce the negative impact of turnover to a significant extent. So, almost 88% of the organization desire to enhance employee retention by implementing varied types of strategies and polices. Only then, the rate of turnover might be reduced significantly. Benefits of human resource retention Cost of turnover- human resource retention is extremely essential in order to increase the turnover cost of the organizations to a significant extent as compared to others. Thus, Deb (2006) states that the turnover of the organization is directly related to employee retention. If the talented employees of the organization retain for a longer period of time then, its turnover might surely improve among others. Improvement of organizational goodwill and brand image- human resource retention is extremely beneficial to enhance the goodwill and brand image of the organization. Retention of employee knowledge- due to the retention of human resources, their talents and knowledge may also be reserved. Therefore, according to Beatty & Schneier (1997), knowledge and skills of the employees helps an organization to present inventive product and services to satisfy the changing requirements of the customers. Improvement of profitability- due to the retention of the employees within the organization, its profitability might also be enhanced to a significant extent. Reasons of employee terminations Low decision making power- it is considered to be one of the most important causes of employee termination in an organization. Low job satisfaction- due to the presentation of improper jobs, the satisfaction rate of the employees reduced to a significant extent as compared to others. Thus, according to Brown (2007), jobs might be assigned as per the skills of the employees so as to improve their devotion and performance. Low compensation- due to lower compensation rate, the level of satisfaction of the employees reduces considerably. This is because; it acts as the prime source that enhances the inner morale and dedication of the employees towards their assigned tasks. Therefore, as per Armstrong (2000), compensation acts as the catalyst to retain the human resources of the organization for a longer period of time. Improper organizational culture- due to improper organizational culture, the rate of dissatisfaction of the employee increases significantly. Lack of appreciation- due to lack of appreciation of the employees, the turnover rate is extremely high in the organization of this age. Thus, due to these above mentioned reasons, the rate of employee turnover is quite high as compared to others. Approaches or retention tools of human resources Dibble (1989) states that, organizational reputation and productivity might be enhanced not only by fascinating the best skilled individual but to retain them for longer period of time. Not only this, retention of the best employees within the organization might not only enhance the organizational income but also amplify the satisfaction ratio of the customers thereby increasing its reliability and trust within their minds. As a result of which, the total sales of the organization might get enhanced thereby amplifying its position in the market among the other rival contenders. However, this might be possible only if the organization might implement or follow the below mentioned approaches or strategies in an effective way. Offering best compensation- offering attractive compensation to the employees is seemed to be one of the best strategies to retain the employees for a longer period of time. This is because; compensation acts as a motivational tool that enhances the inner morale and commitment to perform his or her duties in an effective way among many other co-workers. So that, he or she might retain his or her dominance in the organization. Proper training to the employees and managers- as per McCooey (2009), varied types of trainings might be implemented for the employees and managers. This might help in enhancement of their inner skills and talents thereby amplifying the efficiency of the organization. Not only this training programs, also help in betterment of the career prospects of the employees that enhances their ratio of retention for the future era. Open communication system- according to Schneier (1994), the employees of the organization might try to motivate the employees to participate in decision making processes so as to enhance their rate of self esteem and confidence to a certain extent. By doing so, the management of the organization might attain their views and ideas that may be implemented in future era. This procedure may prove effective for the organization to retain its employees for longer period of time. Rewards programs- implementation of varied types of rewards systems might act as a boon for the organization to amplify the rate of retention of the employees. This is because; such type of rewards might help in accomplishment of the tertiary needs of the employees in an effective way as stated by Stephens & Wallace (2003). Recreational facilities- the organization management might try to implement varied types of recreational programs for the employees in order to reduce their boredom of work. This might help in retention of the employees for longer time. Performance appraisals-proper performance appraisal methods are extremely essential for retention of the employees for longer period of time. This is because; it might help the employees to satisfy the tertiary needs such as self esteem, morale that may improve their efficiency as depicted from the thoughts of Swart & et. al. (2012). Fair treatment- the employees might be offered equal and fair treatment in order to amplify their chances of retention in the organization. As a result of which, the rate of productivity and profitability of the organization might be enhanced significantly. Presentation of proper information and facts- all sorts of information and facts might be presented to the employees so as to maintain transparency and lucidity. Due to which, the rate of conflicts might be reduced thereby amplifying the ratio of retention of the employees in the organization. Employee recognition- as per Liebowitz (2008), employee recognition might prove effective for the organization to enhance its productivity and dedication towards the assigned tasks thereby amplifying his self-respect among all. Proper delegation of the duties and responsibilities- the duties and responsibilities the employees need to be delegated in an appropriate way so that it might improve the output of the organization to a significant way. Solving any sort of issues- in case of any sort of problem, the leaders or manager might get involved with the employees to resolve it effectively. Only then, the relationship of the employees with the management and the leaders might get enhanced thereby amplifying their scope of retention to a considerable extent. Introduction of new technologies- advanced techniques and technologies might be implemented within the organization so as to enhance the output and efficiency of the employees to a significant extent among others (Tushman & Anderson, 2004, pp 284-285). Teamwork- all the employees might be enhanced to implement the technique of teamwork so as to fulfil the final objective of the organization in an effective way. Moreover, due to team work, the assigned task might get completed in easily and quickly thereby reducing the possibility of errors (Tidd & Bessant , 2005, pp 579-580). Implementation of induction program- implementation of induction program is also extremely essential for the employees in order to enhance their skills and relationships (Ulrich, 1997, pp 236-237). Offering proper value to the employees- the management of the organization might try to offer proper value and respect to the employees so as to increase their inner determination and morale. Thus, as stated by Finnegan (2010), this strategy might help in retention of the employees within the organization thereby reducing the scope of switchovers (Sims, 1998, pp 136-137). Providing proper performance feedbacks- in order to enhance their level of motivation and inner trust, it is extremely essential to offer them effective feedbacks on their performances. This might help in retention of the employees (Swart, & et. al, 2012, pp 192-193) Recruitment of the best employees- the organizational management might recruit the most talented and skilled employees so that, he or she may be recognised as an asset and be retained for long (Schneier, 1994, pp 57-58). If the above mentioned strategies or tools might be followed or used by an organization, then the rate of termination or switchover might be reduced significantly. Along with this, it might prove effective for the organization to retain its employees for a long run, thereby amplifying its sustainability and competitive position in the market among others (Snell, & Bohlander, 2010, pp 198-199). Role of HR in work force retention Human resource department of an organization tries to motivate the employees by offering varied types of rewards, bonuses and incentives. These techniques act as the guiding force to amplify the motivation and dedication of the employees towards their goals and targets. By doing so, the level of performance of the employees might get enhanced thereby amplifying the total output of the organization (Stephens, & Wallace, 2003, pp 74-75). In addition to this, the HR of the organization tries to reviews the performances of the employees with the assistance of the team leaders or managers in order to know their actions or activities. By doing so, he or she might present their appraisals or bonuses. Thus, the policies HR of the organization also act in a positive way to increase their rate of retention. Challenges in human resource retention In spite of varied benefits, employee retention also offers various negative impacts over the productivity of the organization. These are stated below: Monetary dissatisfaction- the compensation offered by the management to the employees may not prove satisfactory to them that may reduce their devotion towards work. This might hinder the productivity and brand value of the organization in the market among other rival players(McCooey, 2009, pp 437-438) Lack of opportunities- due to lack of career opportunities, the employees may be retained with the organization for a longer period of time as presented by Liebowitz, (2008). Unrealistic expectation- due to the presence of varied types of unrealistic expectations, the employees might get terminated from the organization. But due to such type of actions, the profitability of the organization might get hindered to a certain extent as compared to others (Lissak & et. al. 2009, pp 228-229). Negative conducts- due to the presentation of varied types of negative conducts, the management of the organization might get forced to terminate the employees resulting in reduction of its portfolio in the market (Liebowitz, 2008, pp 23-24). Thus, due to these above mentioned problems, the rate of retention of the employees might get reduced. Analysis Qualities for employee retention in an organization As per Beck (2003), motivation is the most essential stimulus that binds an employee within the organization for a longer period of time. However, in order to enhance the rate of motivation of the employees, various techniques might be followed like: Monetary satisfaction- it is considered as one of the most requirement tool to retain the employees within the organization that may improve the efficiency and reputation of the organization (Finnegan, 2010, pp 276-277). Freedom of expression- it is also extremely essential for an employee to offer them the liberty to present his or her ideas and notions in front of the organizational management (Compton & et. al. 2009, pp 34-35). Simple hierarchy- the organization might comprise of a simple hierarchical nature, so that the bottom –line employee might easily reach the higher authorities (Dibble, 1989, pp 443-445). Experienced leader or manager- an experienced leader or manager is also extremely essential for the employees so as to resolve any sort of dilemmas or troubles. By doing so, the employees might get more motivated to cope up with varied business challenges (Beatty & Schneier, 1997, pp 109-110). Thus, if these strategies might be used then, the quality of employee retention might be enhanced significantly as compared to other organizations. After effects of a poor human resource retention If the employees are retained within the organization forcefully, then it might offer negative impacts as well. These are presented below: Loss of reputation of the organization- due to varied types of negative deeds, the reputation of the organization might be declined to a significant extent (Deb, 2006, pp 174-175). Loss of business secrets- varied types of important documents might also be lost due to forceful employee retentions. This might prove extremely awful for the organization thereby reducing its effectiveness in the market among others (Brown, 2007, pp. 87-88). Decline in profitability- due to forceful employee retention, their level of devotion might get declined that may hinder its profitability to a certain extent (Adair, 2010, pp. 112-123). Lack of productivity- due to improper employee retention techniques, the productivity of the organization might be reduced significantly as compared to other rival players(Armstrong,2000, pp.226-228). Lack of image- due to lack of productivity, the brand image of the organization might also get reduced thereby hampering its dominance and supremacy in the market. Thus, employees or human resources need to be retained only through appropriate techniques and polices so that it may prove effective in future (Beck, 2003, pp 321-322). Conclusion Conclusively, it might be stated that, employee retention seems extremely tough but it’s extremely easy in nature. This is because; the employees might be retained in an effective way only by offering them best compensation and expression methods. Along with this, proper treatment and appraisals might also enhance the possibilities of employee retention within an organization among other rival players. In addition to this, the productivity and net income of the organization might be enhanced to a significant extent thereby amplifying its brand value and equity among other rival contenders. Apart from this, retention of the employees might prove effective in development of many new products and services that may easily satisfy the changing demands of the customers. Due to which, the level of reliability and trust of the customers towards the brand might get enhanced thereby amplifying its dominance and effectiveness in the market. Only then, the total revenue and total sale of the organization might get amplified that may prove extremely effective for it in future age. Therefore, due to these underlining reasons, the concept of employee retention is extremely essential for an organization in order to retain its consistency and reliability in the market among the other rival players. References Adair, J. 2010. Effective Motivation: How to Get the Best Results From Everyone. New York: Cengage Learning. Armstrong, M. 2000. Strategic Human Resource Management: A Guide to Action - Page 63. Boston: Harvard Business School Press. Brown, L, V. 2007. Psychology of Motivation. London: Springer. Beck, R, C. 2003. Motivation: Theories And Principles, 4/e. New York: Cengage Learning. 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. Deb, T. 2006. Strategic Approach to Human Resource Management - Page 16. New York: Springer. Dibble, S. 1989. 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