10-08-2012, 03:34 PM
Seminar on Employee Retention
Introduction retailer retention 1.doc (Size: 56.5 KB / Downloads: 49)
Introduction:
The ability of an organization to hold back its employees is called Employee retention. The different strategy applied by employer to retain the employee also refers to retention of employees.
Generally the employers reduce the turnover ratio of employees to reduce the training and recruiting costs and not to loose the skills, talent and knowledge of existing employees. The retail employers should only see that the potential and talented employees are retained and rest of the employees can be detained. Employers should never step backward in throwing out the talent fewer employees.
Employers should see that they retain the employees not at the cost of organizational strategies, objectives and goals. The different strategy applied by retail employers is by motivating the existing employee. The concept of motivation is explained by different theories which state that the motivation is the first and foremost factor because retention has direct relation with the employee needs which plays vital role in encouraging the employees.
The priorities among the workers and employees are changing. They are concerned more about the quality of work life today along with the salaries and wages. The reduced quality of work life brings a tremendous change in the behavior of the employees and their expectations. This has become a big hitch for the employers.
Employee loss is not only the problem of employees but it is also a problem for employer because the employers have to adapt the new environment consisting new employees. Many a times the employers build relations with the employees and they become sensitive for their employees because of the committed nature of the employees. The breakage of this bond between the employer and employees might pinch the heart of the employer.
Determinants of employee retention:
1. Physiological and safety needs: employees are concerned about the physical conditions of comfort, convenience, and safety, and the clarity of mission. Even the employees are also concerned about the goodwill and reputation of the retail organization. Especially the working hours in the retail organizations are very long and they are provided with less salaries and no job security.
2. Misunderstanding nature-employee: Even though employers respect and value employees, they don't tell them often enough. Sometimes employees feel that they are given no importance. Finally they're not motivated to stay. Employees move to a place where they get the respect, motivation and appreciation.
3. Rules and regulations: Regardless of the opinions of the retailers or organizations employees want to do a good job. When employees are frustrated by too many rules of supervisors or peers, employees look for other opportunities.
4. No advancement in career: every employee likes to learn and increase their skills in order to improve their capability to perform a wide variety of jobs which is called as career security. The desire is for training and development. If the employees don’t find the growth opportunities with one organization, the employees move to the other organization where they can find career growth.
5. Compensation: It is true that the employees want fair compensation. Even with the better environment and values employees doesn’t stay because they don’t compromise on salary. They often contend that “you can’t pay me enough to stay here”. Sometimes employees don’t mind to compromise at the other things if the salaries paid are good.
Impact of employee turnover-organizations climate and economy:
Employee turnover in the retail industry is expensive, leads to dissatisfaction, inefficiency, and negative perceptions on the employers and the management. Management desists in investing in talent because everyone agrees that employee turn over is painful .this disinclination emanates from the management and any counter retention strategy prove futile
The danger of ignoring employee turnover is risky, as it leads to lack of employees in the organization, which further affects quality of goods, reduced supplier confidence, reinforcement of investor, and thereby falls short of customer demand.
Employee retention layouts
1. Right person at the right position: properly qualified people with the requisite experience leads to any day a better option than an inexperienced. For low level jobs in retail industry this problem might not affect much because they take less educated employees but for high level requirements this becomes the major problem.
2. Power on rotation: authority goes with responsibility. Employees get motivated to perform tasks when they are given with power. Big Bazaar a major retailer in India follows a different strategy to give power to the low level employees on the weekly and monthly basis with which they act motivated to perform better
3. Empathy and encouragement: big bazaar creates an environment in the minds of the customer that they are vital for the company they discuss any implementation or decision with the employees before they proceed. This enhances their morale and makes them feel good.
4. Belief on the employee: employees have tremendous talent and encourage them. Big Bazaar is the best example for it and believes in their employees more than their customers. Organizations that encourage and tap talent send positive signals.
5. Nurture your employees: employees are to be provided with their performance information, their level of Knowledge. This feedback enables them to grow.
6. Recognition: employees of the retail organization are to be recognized and appreciated for their achievements. Big Bazaar encourages their employees by providing them with incentives, award called “Employee of the month”.
Conclusion:
The benefits of retention of employees are very high. When employers are retaining their employees, the employers understand the actual environment. When they understand the situations practically the employers or retailers try to adopt best strategies. The practices adopted by the retail organizations towards their employees determine their performance .In general the employee of the organization yields good results when the conditions of the organization are flexible. When employees are threatened of job loss they may not improve their performance but when the retailers understand the situation of the employees and motivate them, the performance of the employees obviously increases. Finally retailers apply all the above strategies to increase their retention capacity.