Article Entitled
"Retaining the Employees"
- Theoretical Study


By
Santhosh Kumar.N.
Faculty
Koshys Institute of Management Studies
Nagesh B.N.
Faculty
Koshys Institute of Management Studies
Dr.M.K Purushothama
Vivekananda Degree College
Bangalore
 


Introduction

Organizations have realized the importance of retaining the best talent. Retaining talent has gained its importance in the contemporary scenario, Human resource policies have changed and being changed in the recent past and coming future. Retaining the key employees and minimizing the attrition effects is a big challenge in the current trend. In the cut throat competitive market, managing the attrition and reducing the effects are the serious issue for HR Managers. Gone are the days, when employees would stick to an employer for years for want of a better choice. It is careless and risky for the organizations if efficient employees quit the company. Intellectual asset for an organization is a must to survive in the dynamic market which will lead to healthy atmosphere in the organization and bring to success. Retention is an part of Human Resource management.

Human resource Management can be defined as "Managing (Planning, organizing, directing and controlling) the functions of employing , developing and compensating human resources resulting in the creation and development of human relations with a view to contribute proportionately to the organizational, individual and social goal."

Managing the Human resource has undergone tremendous change in the recent past, but the functions of Human Resource management remain almost unchanged. Employees who are dissatisfied leave Bosses, supervisors not Jobs/Works.

The functions of HRM can be classified into two categories. They are:-

1. Managerial functions
2. Operating functions

FUNCTIONS OF HRM


MANAGERIAL                   OPERATIVE

a) Planning                   a) Employment
b) Organising                b) Human Resource Development
c) Controlling                c) Compensation
d) Directing                  d) Human Relations
                                  e) Industrial Relations
                                  f) Recent trend of HRM

Employee Retention

Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee.

The main reasons to quit the organizations are
    • Career development.
    • Monotonous Job
    • Salary Issues.
    • Lack of Motivation.
    • Dissatisfied Work Culture
    • Peer Pressure.
    • Environmental Factors.
    • Supervisor Issues.
    • Unbalanced work life.
    • Poor Performance appraisal.
    • Stress Etc.

Since Employee retention is part of H.R.M, H.R teams focuses on Retention also.

Effects of Employee Retention

  • Increased productivity.
  • Reduced absenteeism.
  • Congenial atmosphere.
  • Improved profits.
  • Less Training.
  • Less cost.
  • Improved quality.
  • Less Employee Turnover.

Retention Strategies

  • Attractive Compensation.
  • More Benefits.
  • Changing of Supervisor.
  • More Responsibility.
  • Promotion.
  • More benefits to Families.
  • Flexible Work Timings.
  • Loan for Education.
  • Retention Bonus
  • Loyalty Bonus
  • Fun at Workplace.
  • More Bonus

Conclusion

Employee retention will reduce issues such as training time and investment, lost knowledge, insecure employees and a costly candidate search are involved. Retaining the old employee who is well aware of the work, Rules and regulations, Process, People will help the organization to improve overall. End of the Day it is the Employees who make any organization successful.
 


Santhosh Kumar.N.
Faculty
Koshys Institute of Management Studies
Nagesh B.N.
Faculty
Koshys Institute of Management Studies
Dr.M.K Purushothama
Vivekananda Degree College
Bangalore
 

Source: E-mail August 21, 2012

          

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