In this chapter, there is a brief background on theories that studied employee retention and an overview on factors affecting retention. Then the gaps, purpose of the study, significance of the study and the research questions will be discussed. Background
In the light of the rapid economic change, companies all over the world are obliged to sustain their technological innovation, continuing globalization and competitive edge. To keep up with this process, companies should have the ability of retaining the skills of its employees by the continuous learning and employee development. Companies also have to take into consideration the demographic changes. In few years, workers between the ages 40 and 60 will retire which will cause a loss of skills that cannot be replaced by recruiting new employees (Kyndt et al., 2009). The loss of critical employees costs every organization approximately $1 million for every 10 managerial and professional employees (Ramlall, 2003). One of the biggest challenges that companies face nowadays is retaining their employees (Kyndt et al., 2009). According to Mak & Sockel (2001), the most important indicator of retention is loyalty. New generation employees are less loyal to companies because they have much more opportunities and don’t want to have a traditional career. It costs a loss of investment (training new employees), competence and competitive advantage (risk of losing confidential information to competitors) (Kyndt et al., 2009). Three retention strategies are suggested to effectively deal with this generation work group: communication including feedback, group communication, corporate communication and employee surveys, employers should take into consideration the development of individuals, paying attention to generational interests (Munsamy & Bosch Venter, 2009). The most important factors that could cause the employee to leave the company are the salary, lack of challenge and opportunity in one’s position, and the inability to advance in one’s career (Ramlall, 2003). In order to stay loyal for the same company, employees must have organizational commitment and job satisfaction (Kyndt et al., 2009). “People who enjoy their work, particularly its intrinsic features, are more likely to be retained by their employer” (Boxall et al., 2003, p.197). When the job satisfaction of the employee is low, he tends to have the want of earning more money (Kyndt et al., 2009). Individual merit-based reward systems and the use of skill-based or knowledge-based pay systems are associated with employee retention (Boxall et al., 2003). Kyndt et al. (2009) said that according to Walker there are seven factors that can enhance employee retention: compensation and appreciation of the performed work, provision of challenging work, chances to be promoted and to learn, invitational atmosphere within the organization, positive relations with colleagues, a healthy balance between the professional and personal life, and good communication. Mak et al. (2001) said that Maslow’s Hierarchy of Needs Theory, Herzberg’s Dual Factor Theory, and Hackman-Oldman’s Job characteristics Theory share the same concept that employees can be motivated by fulfilling their needs in order to keep their job. Gaps
Management theory and practice had traditionally focused on extrinsic motivators while modern strategies take into consideration intrinsic motivators (Sinha & Sinha, 2012). There is a need for a study that considers both factors. In addition, the majority of research studies have focused on retention factors rather than retention barriers. Moreover studies on employee retention in Lebanon are rare if not null. Purpose of the Study
This study has two purposes. The first one is to focus on the factors which have an influence on employee retention in terms of the gap and appreciative approaches. The second purpose is to shed the light on the barriers of employee retention in order to find the...
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Munsamy, M., & Bosch Venter, A. (2009). Retention Factors of Management Staff in the Maintenance Phase of Their Careers in Local Government. SA Journal of Human Resource Management/SA Tydskrif vir Menslikehulpbronbestuur, 7(1). DOI: 10.4102/sajhrm.v7il.198.
Ramlall, S. (2003). Organizational Application Managing Employee Retention as a Strategy for Increasing Organizational Competitiveness. Applied HRM Research, 8(2), 63-72.
Sinha, C., & Sinha, R. (2012). Factors Affecting Employee Retention: A Comparative Analysis of two Organizations from Heavy Engineering Industry. European Journal of Business and Management, 4(3), 145-162.
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