Case Study: Employee Retention

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Running head: CASE STUDY: EMPLOYEE RETENTION 1 �PAGE � Employee Retention � PAGE �2�

Employee Retention April 10, 2012

This is a critique is based on two articles, in which addresses the issues of employee retention and suggestions for the motivation and engagement of employees in the hospitality industry. The first article is titled "Targeted employee retention: Performance-based and job-related differences in reported reasons for staying" by Hausknecht, Rodda, and Howard (2009), in which addresses the major theories to help in explaining the reason that employees stay or leave their organization, and ways to retain them. The second is titled "Terms of engagement" written by David MacLeod (2010) that presents suggest ways for motivating and engaging employees so they will want to stay.


_Reasons employees want to stay with their company_

According to this article, the primary reason that employees stay with their employer are job satisfaction; they enjoy the work involved in serving customers. For many employees, the reasons for staying are for the extrinsic rewards such as pay, benefits and advancement opportunities. Employees want to receive fair rewards for their efforts. If these rewards are not presently found, employees may leave for other opportunities that offer greater rewards. Another factor is "constituent attachments, in the form of effective supervision and positive peer group relations," (Hausknecht et tal, 2009, p. 3). Other incentives to retaining employees are organizational commitment and prestige. The secondary reasons are compensation, competitive wages, health benefits, retirement contributions, and incentive plans. Additional reasons for staying are "constituent attachments, organizational commitment, organizational prestige, lack of alternatives, investments, advancement opportunities, location, organizational justice, flexible work arrangements, and non-work influences" (p.10). Companies must find ways to keep their employees satisfied so they will not want to leave.


Retention is the most important part of a company's approach to talent management. When organizations cannot retain high performers, its core leadership base will eventually erode as a result of losses in performance, high replacement costs, and potential talent shortages. Because of this, employers are seeking "to retain high performers and replace low performers with workers who bring greater skills and abilities to the organization" (p. 5). More important than understanding the reasons why people stay is in understanding how retention factors are different between high performers and others at different levels within the company, (p. 2). The authors suggest that organizations should adopt specific strategies retention of their most valued employees rather than those that are considered average or low performers, (p. 2).


_Benefits of better engagement_

The hospitality industry places certain pressures on its employees such as long hours, in which can interfere with their social life, and oftentimes having seasonal nature make it more difficult to retain good people. Engaged employees are far more likely to stay with the company than those who are disengaged. In such a highly-pressured environment as the hospitality industry, it is more difficult to more effectively assess and engage employees. According to the author, there are steps that employers can follow to help ensure employees are committed to delivering great customer experiences along with delivering longer-term growth and success, (MacLeod, 2010).

_Define a clear and compelling goal_

Oftentimes employees feel that management does not clearly communicate business objectives to them, in which may give the impression that senior managers do not have a clear vision for the future of the business. That is the reason the...
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