There are many factors that affect the employees’ willingness to leave their job prematurely or to remain in an organization. The topmost factor in employee retention is the wage, but it cannot be the sole factor. Aside from the pay, employees also look for career advancement. Or, if some employees are performing well on their jobs, they expect recognition from managers, and incentives that could motivate them to strive harder and remain satisfied.
What organizations should consider important are their employees’ satisfaction, and not just the management’s plan on how they’re going to raise their profits. The workforce is the asset of the business to grow and last in a specific industry. When you hire people, it’s the first stage for the business to run. You may be hiring fit employees, but are you clear about what their roles are going to be?
Upon orientation and training, the management should be able to define the goals and objectives of the company, what is expected of the trainees or employees, and what their specific duties will be in their jobs. The management should not just provide information about their rules and policies, but these should’ve been studied as reasonable and fair. Policies can greatly affect the attitude and morale of the workforce. If you think they’re unreasonable, you should make modifications on these policies in order that these conform to the labor laws. These policies should not be too restrictive and not too lax.
Besides the organizational policies, the firm must study the elements that can motivate the labor force to excel and stay. The lack of motivators is one of the reasons the employees leave prematurely, and thus, there goes a low employee retention rate. Motivators include paid trainings for new hires, and promotion for top-performing employees. Instead of allocating funds for the turnover, the management may consider funding a program for giving incentives and rewards for those who excel.The organization may also implement annual raises, so that the employees will be drive to stay there for years.
The profits of the company may be moving upward, but does the statistics show employee satisfaction? The company may be committed to its growth, but does it also consider the employees’ expectations on career growth? While the management doesn’t want its business flow to stagnate, the workforce, too, doesn’t want to be stuck in a company that does not encourage career growth. They want to learn new skills, share their thoughts for the development of the company, and to communicate with managers what the issues are within the workplace. Communication can greatly affect employee retention rate.
There should be a smooth professional relationship between the manager and employees. If they are able to express their concerns regarding their work or workplace, they will have the mindset that they are regarded as important people within the company. Through an open communication, the management can identify what their workforce needs, and what issues within the company need to be addressed. The management can also know the reasons the employee is leaving, or know what makes the employee stay.
There will be a low retention rate if there’s no assurance that the company will cover the life insurance and benefits of the employee. If the nature of the work is risky, but there’s no benefits package for the employee, he will not accept the job in the first place, or will just leave the job soon enough. The management should be responsible for their employees’ welfare and needs. An effective measure the management can implement to raise employee retention is to allow them of a paid day off once a month. If the organization allows this, they can let the workforce spend enough time with their family, and have a workforce that has regained energy.