In these changing times both the employee & employer are under tremendous pressure to perform. There is fierce competition not only in the industry but also across categories. This new liberalized cutting edge technology driven environment has made employee retention mind-boggling. The fast pacing change across the globe has made the new employee & employer relationship irreversible. However all corporations not only in IT sector but also traditional manufacturing sector are attempting to stem attrition. This paper attempts to unravel this paradox & study the various facets that surround this burning issue i.e. * factors that make employees stay in a organization
* reasons why they leave
* what could be done to make them stay with the company
Let Us see what “Employee Retention” used to mean
This entails understanding just a little history. The term “employee retention” first began to appear with regularity on the business scene in the 1970s and early ’80s. Until then, during the early and mid-1900s, the essence of the relationship between employer and employee had been (by and large) a statement of the status quo: You come work for me, do a good job, and, so long as economic conditions allow, I will continue to employ you. It was not unusual for people who entered the job market as late as the 1950s and ’60s to remain with one employer for a very long time—sometimes for the duration of their working life. If they changed jobs, it was usually a major career and life decision, and someone who made many and frequent job changes was seen as somewhat out of the ordinary. As a natural result of this “status quo” employer-employee relationship, an employee leaving his or her job voluntarily was seen as an aberration, something that shouldn’t really have happened. After all, the essence of “status quo” is just that little or nothing should change in the relationship—and leaving was a pretty big change!
What is Employee Retention Today?
Employee retention is more than just keeping employees on the job. It is also about sustaining employees, primarily by enhancing their job satisfaction. Job satisfaction, in turn, can increase productivity and keep employees energized and motivated to give their best. Job satisfaction can equate to employees who stick with their current employer and strive to perform at or above expectations and standards. Employee retention is beneficial for the organization as well as the employee. Employees today are different. They are not the ones who don’t have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. If they don’t, they would be left with no good employees. A good employer should know how to attract and retain its employees. Most employees feel that they are worth more than they are actually paid. There is a natural disparity between what people think they should be paid and what organizations spend in compensation. When the difference becomes too great and another opportunity occurs, turnover can result.
This study helps to realize the importance of effective employee retention. This research study examines types and effectiveness of various factors leading to retention. It helps to provide insights to support future research regarding strategic guidance for organizations that want to retain their most valuable asset.
1.2.1 Primary objective- To find out factors that lead to retention of employees. *
1.2.2 Secondary objective-
* To find out the gap between employee expectations and present measures. * To find out various factors that make the employees leave the organization. * To examine the effectiveness of retention strategies in place. * To identify alternate strategies for retaining valuable employees.