The world economic is in the stage of globalization. Businesses have to compete in many aspects in which quality is the most important factor (Barney, 1991). The quality affect in many departments, especially Human Resources (HR). More than ever, HR which bring the success or failure of business becomes scarcely. In fact, the hiring of skilled employees was difficult, but keeping them even harder. They leave after they have been trained or been experienced make most businesses to be in difficulties. It is believes that the only way to keep employees are clearly demonstrated their authorities and responsibilities in labor contract. However, that is not only way, the employee’s loyalty are not only work efficiency, commitment and determination to complete the work but also depends on the working conditions in which they are entitled (Armstrong, 2009). The argument will focus on: how to keep the talented employees? This essay refers to some methods and the keys factors to attract talented employees.
Why employee retention?
Hiring an employee is only a first step. Building awareness of the importance of the employee retention is essential. The costs associated with employee turnover can include lost customers and businesses as well as damaged morale (The Wall Street Journal). In addition, there are costs incurred in screening verifying credentials and references, interviewing, hiring and training a new employee (Mythri, 2006).
‘Fitz-enz (1997) stated that the average company loses approximately $ 1 million with every 10 managerial and professional employees who leave organization. Combined direct with indirect costs, the total costs exempt employee turnover is a minimum of one year’s pay and benefit or maximum of two year’s pay and benefits. There is significant economic impact with an organization losing any of its critical employees, especial given the knowledge that is lost with employee’s departure’ (Ramlall, 2004).
The concept of employee retention
It is difficult to define the term “talented employee retention” correctly. Thus, the concepts about it of businesses are very different. Employees leave organizations for many reasons; oftentimes these reasons are unknown to their employers (Levoy, 2007). Employers need to listen to employees’ needs and implement retention strategies to make employees feel valued and engaged in order to keep them. These retention methods can have a significant and positive impact on an organization’s turnover rate (Whitt, 2005).
According to Yukon Government (2008:9):
‘Employee retention is defined as a systematic effort by employers to crease and foster an environment that encourages current employees to remain with the organization. Retention strategies strengthen abilities of the businesses to attract and retain their workforce. Ones the right staff persons have been recruited, retention practices provide the tools necessary to support staff.’
The reasons that the employee leave a company
According to strategic planning consultant Leigh Branham (2005), there are seven main reasons why employees leave a company:
1. Employees feel the job or workplace is not what they expected.
2. There is a mismatch between the job and person.
3. There is too little coaching and feedback.
4. There are too few growth and advancement opportunities.
5. Employees feel devalued and unrecognized.
6. Employees feel stress from overwork and have a work/life imbalance.
7. There is a loss of trust and confidence in senior leaders.
However, the underlying cause of the accelerated replacement of employees is the mix of trends and without the result of any separate trends or simple reason (Taylor, 2008). Trying to maintain a relationship employees and employer can reduce the growth rate of replacement of employees (Boxall, 2013). The relationship between an...