Talent Retention
"Human Asset - A valuable Asset"


By

N. Viswanadham
Asst. Professor
Department of Management Studies
Pydah College of Engg & Tech
Gambheeram, Visakhapatnam
 


Retaining talented employees is one of the topmost priorities of employers today. The cost of employee turnover is from 40% - 100% of an employee's annual salary, when we consider productivity, recruiting costs, reduced efficiency in transition and time. Worker shall continue to escalate. Each and everyday good employees quit their employees for better jobs.

The challenge is not only to attract the best talent but also to retain them. Rising opportunities for carrier development, lifestyle decisions, job changing, unbalanced work life, poor mentoring and stress are some factors which influence an individual's decision to continue or quit.

Talent : Natural Ability of skill, such skills and abilities that is useful for the organization.

Retention: Hold Back.

Why we are searching out for retention?

Company Reputation: Maintaining company reputation is an effective way to attract the talented. The organization with the using of talented employees, there is a chance to improve its goodwill and reputation.

Productivity: A talented employee is self motivated, self driven towards the work, he acts as a motivator to other employees in work life. That increases total productivity of the organization.

What makes an employee to quit?

Lack of training programs: Organizations should plan training programs that helpful to improve the employee competencies with current trends.

Ineffective Mentoring: Another reason for leaving is lack of effect to mentoring policies. Employees get demotivated due to lack of proper mentors.

Lack of Challenging Atmosphere: Employer must provide challenging environment, that help to prove the employees. Challenging atmosphere help the employees prove their worth and bring out their skills.

Lack of Autonomy: Employer maintains centralization, employees feel some in convince. Giving employees responsible positions, they work in their own style.

Lack of work place relationships: In case employers failed to maintain healthy relationships among the staff members that causes for all disputes.

In attractive compensation : Compensation plays an important role in motivating employees.

Plans for Retention:

Maintaining Image: Maintain image is a better way to attract skilled employees. Identifying the talented employees, provide excellent package and challenging environment are the indicators of corporate image.

Conduct exit interviews: Organizations strictly conduct exit interviews and identity reasons for turnover. The information must be ideally used to plan good retention strategy.

Concentrate on Development: Organizations adopt new policies and technologies for development. Give freedom to new employees and build a long-term relationship.

Employee Information: Organizations must maintain employee information; particularly new employees should be kept in mind even after the recruitment process over. This information will help in identifying their strengths and setting targets.

Prerequisites for Retention:

  • Properly designed induction programs
  • Creating good work environment
  • Provide proper training programs
  • Provide suitable compensation packages
  • Counseling
  • Implementing reward strategies

There are many plans to retain employees. These are so help to improve employee relations in any organization.

CONCLUSION: Loss of human assets, lower productivity, and lower performance levels are the negative results of high turnover. The management must provide good retention strategy to improve human assets. Creative Human Asset Retention Strategies have to be emphasized. Opportunity to grow and learn at work is emerging as a primary determinant of attracting and retaining employees. Cash is not the main factor that keeps employee in their current job or attracts them a way to a new job.

The only "Intangible Asset" found to predict the future financial performance of a firm is the firm's retention rate for key employees.
 


N. Viswanadham
Asst. Professor
Department of Management Studies
Pydah College of Engg & Tech
Gambheeram, Visakhapatnam
 

Source: E-mail August 13, 2007

         

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