High employee turnover at API
Suzanne Chalmers, who is one of the top talents in her area of expertise, is also leaving the company for a start up firm Statement of Problem:
What strategies should API use to improve employee retention? How can they motivate Suzanne Chalmers to stay as a software engineer with the Advanced Photonics Inc.? Analysis:
There are a number of factors which contribute to Suzanne Chalmers’ decision to leave API despite the fact that she is valued by the organization and persuaded to stay. 1. MARS Model
The possible reasons for Chalmers behaviour under MARS are lack of motivation as well as situational factors: - Motivation
Suzanne Chalmers no longer has the drive (intensity) and desire (persistence) in order to stay with API (direction). Even though she had chances to negotiate with Chan, she chooses to resign than negotiate the improved terms that would keep her motivated to stay in API. The company probably can no longer fulfill her need as an employee related to work challenges. - Situational Factors
Her need of self-actualization is very strong and the organizational environment constrains her performance through routine, and she would be motivated to expand her skill variety and job challenge. The company also struggles in offering adequate office space to employees, Chan himself pointing it out apologizing for the cramped workspace.
2. Employee Engagement and Job Satisfaction
Employee engagement and job satisfaction are very important for a company’s and employee well-being. One reason why the company has a high employee turnover is the job specialization, many of the employees being forced to leave for companies which offer job enrichment focusing on client relationships as well. Suzanne’s desire is to perform beyond narrowly defined job duties, her high level of absorption of work and strong self-efficacy to perform force her to leave the company for a start-up firm. The purpose of Suzanne’s meeting with Chan is to voice her dissatisfaction towards the fact that she is not challenged and her job became a routine.
3. Maslow’s Need Hierarchy Theory & ERG Theory
In the case of employees at API, they would not be highly motivated by their existence needs because they are already well satisfied due to the fact that they are gainfully employed and easily have enough money to satisfy these needs. Next are relatedness needs which include a person's need to enjoy company and interaction with others, public recognition, and the need to feel safe around others. This means that the company should have a culture and an environment that allows or even promotes employees to interact with each other and ensure that employees receive the appropriate recognition when it is due. Lastly there are growth needs which relate to self-esteem through personal achievement and fulfilling one's potential. Chalmers needs to fulfill higher needs such as self –actualization, growth, therefore her decision to leave the company. 4. Four Drives Theory
Suzanne Chalmers’ insatiable need to achieve higher goals forces her turn to new companies to tackle new challenges because at API this is not facilitated. She already has fulfilled her basic need; she would then focus on her higher needs such her need for status and recognition which lead to higher self esteem. She is already a senior employee in API and an expert in the Internet Protocol (IP) assignments. Her drive to learn is probably the most important and determines her to leave API and join another company to explore new opportunities such as meeting customers or working on capital proposal opposed to established firms such as API with many employees ensuring them to match staff with specific and specialized tasks.
5. Learned Needs
She is a high achiever; she appreciates unambiguous feedback and recognition of success. Chan’s final attempt to attract her with the promise of monetary rewards (salary...