Retaining Employees: Strategies for High Retention

2. Development Planning and Administration MPA – 403 Lecture 15 • FACILITATOR • Prof. Dr. Mohammad Majid Mahmood Bagram

3. Reflections

4. Human Resource Planning & Human Resource Retention

5. OUR ASSET WALK OUT OF THE DOOR EACH EVENING. WE HAVE TO MAKE SURE THAT THEY COME BACK THE NEXT MORNING

6. HRCritical Findings One Out of Every Three People Plan on Leaving in the Next Two Years Hay Group, USA

7. It Costs Much More to Replace Employees Than to Keep Them Critical Finding

8. Employee Turnover • In human resources context, employee turnover is the rate at which an employer gains and loses employees. • Simple ways to describe it are "how long employees tend to stay" or "the rate of traffic through the revolving door". • If an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. • High turnover may be harmful to a company's productivity if skilled workers are often leaving.

9. Defining HR Retention • The extent to which an employee is committed to his work and his organization, and • the extent to which this commitment impacts his performance and intent to stay with the organization.”

10. Defining HR Retention HR Retention is the total of the behaviour employees espouse in the organisation which primarily should be characterised by: • Belief in the organisation • Drive to work and make things better • Respect and support for others • Desire to learn new skills

11. High-Turnover to High Retention “Here Today, Here Tomorrow” • Transforming your workforce from High-Turnover to High Retention. • To do this we need first to look at the main reasons for; Why Do People Stay?

12. Retention is Commitment Based Rational Commitment: • Employees believe they will personally and professionally benefit from the organization. • It makes sense for them to stay with the organization.

13. Rational Commitment Driven By: • Remuneration • Incentives • Career growth opportunities • Health benefits • Work environment • Learning and development opportunities • Work-life balance

14. Retention is Commitment Based Emotional Commitment: • Believing in, valuing, or enjoying their day-to-day work, teams, managers or organizations. • Because they can make a link between their role and organizational objectives and value system, and they enjoy or find fulfillment in the work

15. Emotional Commitment Driven by: • Enjoyment of one’s job • Role clarity • Understanding the link between one’s job and organisational strategy • Belief in organisational values • Respect manager, team and organisation Emotional Commitment Drives Discretionary Effort - Performance

16. Role Based Levels of Retention There are five work related roles that an employee can assume and these are: • Job Holder Role: employees come to work and do the job that is listed in their job description. • Team member role: employees go “above and beyond” to help members of their team work toward common goals. • Entrepreneur role: employees come up with new ideas and processes and try to get those ideas implemented. • Career role: employees do things to enhance their career in the organisation; they learn, they adapt new skills, and more. • Organisation member role: employees do things that promote and help the company even if it’s not part of their jobs or their team’s duties.

17. Organizations With High Levels of Employee Retention 38% Higher Customer Satisfaction Scores 22% Higher Productivity 27% Higher Profits Employee Engagement Drives Business Results

18. How Do You Know What the RIGHT Person Looks Like? Hire the Right People

19. Why Good People Quit? ?

20. Why Good People Quit Poor match between the person and the job Poor fit with the organizational climate and culture Poor alignment between pay and performance Poor connections between the individual, their coworkers, and the supervisor Poor opportunities for growth and advancement

21. Typical Hiring Practices • Failure to detect motivational fit with job • Applicants "exaggerate" to get a job • Most hiring decisions made by intuition during the first few minutes of the interview  • Two out of three hires prove to be a bad fit within the first year • Most interviewers not properly trained • Excellent employees placed in the wrong jobs grow frustrated when unable to utilize their strengths

22. Key Finding Money may attract people to the front door but something else is needed to keep them from going out the back.

23. Employee Retention Strategy Provide a clear sense of Direction and Purpose. Reward and Recognition Programs. Become a Better Leader by Showing me you care.

24. Employee Retention Strategy Keep the Doorways and Pathways of Communication Open. Create a Charged Work Environment that Energizes and Engages the Workforce.

25. Employee Retention Strategy Career Opportunities and Development Plans. Develop Your Valuable Staff “Help People Move Up, or they will Move Out”

26. conclusion For efficient and effective Human Resource Planning & Retention, we need to build a sense of strong employee ownership

27. Thank you for your kind attention! • FACILITATOR • Prof. Dr. Mohammad Majid Mahmood Bagram