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This paper attempts to contribute to a holistic view concerning the practices and strategies adopted by organizations to retain committed and talented workforce globally. Engaging and retaining employees of 21st century workforce in this competitive era is a toughest job for HR people. Now-a-days, almost every organization is driven by technology, but human resources are needed to carry out the works through technology. Hence human resources are the life energy for the organization for its survival growth and development. It is the challenge of a HR manager to retain employees in an organization for a long run in a dynamic environment. This is a secondary research, which reviews various research articles in journals and books and attempts to explore the reviews on employee retention in various sectors, industries etc., to understand the concept of retention, factors influencing retention and the strategies to retain the employees in a better way.
International Journal of Innovative Research in Management Studies (IJIRMS)
Volume 4, Issue 4, May 2019. pp.1-10.
M.S.Kamalaveni1, S.Ramesh2, T.Vetrivel3
1Assistant Professor, Department of management Studies, Sona College of Technology, Salem
2Professor, Department of Mechanical Engineering, KCG College of Technology, Chennai
3Professor & Head, Department of Management Studies, Velalar College of Engineering and Technology, Erode
AbstractThis paper attempts to contribute to a holistic view concerning the practices and strategies adopted by
organizations to retain committed and talented workforce globally. Engaging and retaining employees of 21st century
workforce in this competitive era is a toughest job for HR people. Now-a-days, almost every organization is driven by
technology, but human resources are needed to carry out the works through technology. Hence human resources are the
life energy for the organization for its survival growth and development. It is the challenge of a HR manager to retain
employees in an organization for a long run in a dynamic environment. This is a secondary research, which reviews
various research articles in journals and books and attempts to explore the reviews on employee retention in various
sectors, industries etc., to understand the concept of retention, factors influencing retention and the strategies to retain
the employees in a better way.
KeywordsDynamic Environment, Human Resources, Talented Workforce, Organizations, Retention, Strategies.
I. Introduction:
Talent management is a concept emerged during late 1990s and is due to the establishment of many multinational
companies. It is more complex to manage talents in global organizations than in a national business scenario. The talent
or ability to keep the employee in an organization is referred to as retention in the human resources management context.
Every organization is facing some challenges to sustain in a dynamic and competitive environment. Out of which, one
of the primary challenges is that to retain employees in the long run satisfactorily. Every citizen has a right of liberty
according to our Indian Constitution. So, in an organization perspective, every employee has a right of liberty to move
from one organization to another depending on his/her comfort and also by considering other factors like pay, work
environment, compensation, benefits, career development, recognition, training and development etc.
Some organizations have identified the problems behind turnover and managing to retain the talents by addressing the
factors influencing over these. The need to retain the employee is that, as organization has incurred cost on recruitment
and has invested huge money on each and every employee for giving training to develop them to fit for the organization
and to improve the efficiency of the employees, so obviously it is the expectation of the organization to make use of the
outcome of the training for its development. In order to confront the problem of attrition of employees, organizations
are making policies with respect to recruitment, selection, induction, training and development, compensation and
benefits, designing job, evaluation of job and wage standards etc., which in turn helps to retain the employees in the long
run. The objective of this paper to review the research papers by various researchers in the topic of employee retention
which helps the HR managers to frame strategies to retain or enhance the duration of the employees in an organization.
II. Significance of Retention:
Retention helps in human resource planning in an organization. Human resource planning estimates the gap between the
demand and supply of workforce required for the future based on the objectives of the organization. It also helps in
succession planning whereas it aims to determine the competent strategic positions in an organization. It helps to have a
ISSN: 2455-7188 (Online)
IJIRMS Volume 4, Issue 4, May 2019
talented and committed workforce that would reduce recruitment costs and training and development costs.
III. Objectives of the study:
Literature review on employee retention aims to explain the following objectives:
i. To explore the various researches carried out on employee retention.
ii. To identify the various factors determining retention of employee in organizations.
iii. To provide suggestions for retaining employees in organizations.
IV. Research Methodology:
The nature of the study is descriptive and this is a secondary research which involves using of secondary data available
in various research journals, books and reports etc.
V. Literature Review on Employee Retention:
This study explores several research papers which explain various factors influencing retention and provides suggestions
on employee retention and is discussed as follows:
Employee Retention:
Hom and Griffeth (1995) described in a study that the process of encouraging employees to stay for a long period or till
the project completion is termed as retention. Wysocki, B (1997) pointed out the view of “The Society of Human
Resource Management” that retention of employee is the hottest topic in the current scenario. Drucker (1999) explained
that employees voluntarily quits their job is a potential retention issue. Trip, R, while discussing turnover stated that for
many organizations, voluntary turnover is a big challenge. Turnover may be i. voluntary or involuntary and ii. functional
or dysfunctional. Voluntary turnovers refer to leaving of an employee in an organization voluntarily ie. the employee
himself decides to leave/resign from the organization. In involuntary turnover, the employer expels the employee i.e. the
employee leaves the organization unwillingly. It could be due to low performance, conflict or due to employment-at-
will. When a low performer leaves the organization, it is referred as functional turnover. When a high performer leaves,
it is referred as dysfunctional turnover which incurs cost to an organization. Terence et al., (2001) stated that there are so
many reasons for an employee to leave voluntarily. Some may be personal and some may be influenced by organizational
factors. Personal reasons such as family situation, career growth and attractive job offers etc. Organization factors
includes lack of promotional opportunities, unfair treatment among employees and mismatch between personal values
and organizational values etc., Overall turnover is a great problem for both organization and individual. Further it is
clearly discussed that occurrence of shock which is expected or unexpected leads to serious thoughts (i.e. intention) to
leave. Shocks may be positive, negative or neutral. Positive such as alternative job offers, pregnancy etc., Negative such
as leaving of friends, poor performance appraisal etc. and neutral such as relocation of spouse, changes in administration
etc. Maqsood Haider et al. (2005) undergone a research in Telecom sector and conversed that the competition to hunt
and retain talents is tougher all the time and discussed that employees effective human resource practices show a positive
and direct relationship in retaining employees. Further, it is analysed that culture and compensation have a positive
impact; training & development has a negative impact over employee retention.
Abeysekera (2007) in a study evaluated the HR practices like realistic information about job, job analysis, work life
balance and career opportunities, supervisor support and compensation and their impact on employees’ intentions to
leave which resulted that compensation and job analysis have positive impact on employee turnover. Holtom et al. (2008)
discussed in this study that the factors that makes the employee for staying and leaving were different. Hay Group (2009)
stated that employee engagement includes components such as commitment and discretionary effort. Commitment refers
to employees’ attachment with an organization and the intent to continue with. Discretionary effort refers to the
employees’ readiness to leave. It is discussed that these two components must be considered seriously. Taylor (2010)
while explaining turnover stated that pull and push factors are to be considered. Positive attraction towards alternative
job opportunity is pull factors, in which employees are searching for alternative job opportunities even if they are happy
and satisfied. In this circumstance, it is highly essential that employer/management must understand the real value of
their employees and identify the reasons for searching or what they are expecting in the current job and this would help
to retain the talents. The next important factor is push factors, in which some dissatisfied circumstances are prevailing in
the current organization which makes the employee to leave for refining work life. There are several attributes for pull
A Review of Literature on Employee Retention
and push factors that need to be identified and focussed more. Cardy and Lengnick-Hall (2011) conducted a study on
retention of employees, which emphasizes more on customer-oriented approach. Employee equity model is the method
followed in this research. This study explores more regarding employees’ values rather than external factors which have
effects on the employees whether to stay or to leave. In other words, this study was concentred towards internal factors
which makes the employees to stay or leave. Chitra Devi and Latha (2011) conducted a research on employee retention
in IT sector. The main aim of the research is to identify why employees are migrating one from companies to another i.e.
reasons for migration and to analyse the retention benefits. Discriminate analysis tool was used and resulted that the
sector has to focus on compensation, job satisfaction and job security as these were some of the important tools used for
retention of employees in organizations. Tripathi et al. (2011) attempted to analyse the problems faced by the professional
institutions i.e. private and government institutions and the factors to overcome the difficulties faced by them. Analysis
with respect to private and government institutions for Level of job satisfaction, tenure of working, working environment,
working hours, job switches and its reasons, faculty loyalty and tenure of service and retention tools were suggested in
this study. Pay Dissatisfaction, lack of career growth opportunities, uncomfortable work environment, unsecured job,
Loyalty are the factors which determine an attitude in faculties concerning their institutions. The study cited reasons for
faculties leaving in existing employment and what made them to stay in the current employment. Sadaf Zahra et al.
(2013) conducted a study in Pakistani Universities and found that compensation, support of the supervisor and work-life
policies are some of the key factors in turnover intention and employees consider these a lot when compared to
recognition and rewards. It is concluded that less flexibility and heavy work load affects family life. Apart from these
motivation, competitive pay, supervisory support, leadership, programs for career development would reduce intention
to leave.
Chartered Institute of Personnel and Development report i.e CIPD (2015) has identified the factors for employee leaving
as push and pull factors. Gary Dessler and Biju Varkkey, while discussing a comprehensive approach to retaining
employees, stated that after identifying problems of retention, action can be taken to boost employee retention by way of
pay rise, hire smart, discuss careers, provide direction, offer flexibility, attractive employee welfare measures, HR
practices for high performance, binding contracts etc. Priyanka and Dubey S K (2016) in their study performed
exploratory factor analysis using principal component technique. They have identified employee turnover intentions
through eight factors such as i. quality of management practices, ii. Low salary, iii. No career growth opportunity, iv.
Lack of support from the peer, supervisors and family members, v. little learning opportunities, vi. Poor working
environment i.e. no workplace safety, vii. Communication and viii. Insecurity in job. Kossivi and Kalgora (2016)
attempted to study the various factors for retention from the findings of various previous research studies and brought
some factors such as opportunity for development, work-life balance, compensation, style of leadership of the
management, work environment, autonomy, training & development, social support etc., In their study, supervision and
leadership are explored more and the factors like organizational culture, autonomy and training & development are less
explored. Further the scope for further research also stated in the conclusion that based on category of employees can be
done in future.
Vijayalakshmi V (2012) attempted to analyse the influencing factors of employee retention in automobile industries in
India. Objectives of the study are i. to study the employee retention practices in automobile industry ii. To find out
employees’ overall satisfaction towards work environment culture iii. To examine the training and development
opportunities offered and its effectiveness iv. To analyse compensation factors. Tools used in this study are chi-square
analysis, regression analysis, Mann-Whitney test, Kruskal Wallis test and analysis of variance. This study discussed the
retention management in global perspective as “It includes salary which is competitive, balancing work-life between
personal and professional life, offering training, determining the performance of the employees through conducting semi-
annual reviews, conducting events i.e. celebrations, providing appropriate rewards & recognitions with the view to
motivate employees for better performances. These are all the factors considered both by the employer as well as the
employee globally. Apart from these, some of the measures are advised to be adopted by the firms. Firstly, assessment
and reward of managers are to be taken care of. Secondly, it’s about conducting period interviews focussing on retention.
The linking factor behind these strategies is HR managers and their role is very vital in retaining employees in
organizations”. Further it is discussed about the retention management in Indian perspective as “Strategies like better
working environment, good compensation i.e. monetary & non-monetary, and flexi work hours, good superior-
subordinate relationships, spending money on training and development which can enhance learning environment-are
considered in retaining employees in any companies in a current scenario. Additionally, management support, stimulate
IJIRMS Volume 4, Issue 4, May 2019
corporate culture, employee empowerment lead to job satisfaction which in turn increase employee retention. In Indian
perspective, better communication between superior and subordinate, and growth and training opportunities have high
preference and improvement of monetary benefits also lead to better employee retention.
Recruitment and Retention:
Frankeiss (2008) discussed in this study that policies and practices on talent management, recruitment and retention
policy can play an important role in decreasing the attrition rates. Oracle white paper (2012), it is discussed that recruiting
the right person in the first place would be the best practices for retention of employees. Beardwell and Wright (2012)
emphasized in a study that organizations systematic approach to recruitment and selection which would help in decrease
in turnover of employees.
Development opportunities and Retention:
One of the important factors of retention is development opportunities. The following researches have mainly focussed
on development opportunities. Horwitz et al., (2003) explored in a research that an important factor of retention is
personal as well as professional growth and it is the promotion opportunities which enhance commitment of the
employees and in turn results in employee retention. Illeris, (2003) emphasized the learning organization strategy model
through which the employees’ best learning in the work environment actually happens. Kroon (2013) identified that
development opportunities can improve employee commitment to retain employees in organizations.
Compensation and Retention:
There are many studies that have explored the relationship between compensation and retention. Some studies have a
positive impact of pay on retention and some have not. Tremblay et al., (2006) in a study explored by a team of researchers
that performance related pay is an important factor in determining retention. Milkovich and Newman (2004) discussed
that monetary pay is an essential factor in keeping the employee. Hytter (2007) concluded in a research that there is a
correlation between reward and retention. Some studies have some negative impact on pay with retention. Hausknecht
et al, (2009) discovered in a research that compensation and benefits contribute to retention. Daniel Eseme Gberevbie
(2010) conducted a study among the civil servants at Nigeria and concluded that to retain talented employees for
performance, suitable incentives must be provided. Pitts et al., (2011) identified that compensation predicts turnover of
employees. Onyango (2014) found the positive correlation between direct & indirect financial rewards and employee
Work Environment and Retention:
Horwitz (2003) observed in this study that fun working environment is a conducive factor of retention. Ellet et al., (2007)
identified that flexibility plays an important role in retention of employees. Abrams et al., (2008) gave more importance
towards the work environment where learning and working is possible in an organization. Tiwari (2012) suggested that
organizations in a competitive environment use various strategies which are linked systematically with HR practices so
that work environment can be improved.
Leadership and Retention:
In many studies, it is found that the leadership style has a greater impact on employee retention in organizations. Mc
Neese and Smith (1995) identified in a research that manager’s attitude also impacts on commitment of employee in
organizations. Kaye and Jordan-Evans (2002) highlighted that a good boss can influence retention of employees in an
organization. Budhiraja and Malhotra (2013) explored in his study leadership style determines the success/failure.
Alkhawaja and Arwa (2017) while discussing the leadership style and employee turnover stated that increase in turnover
is due to unbalanced treatment of employees and hence while dealing with people, leaders should question themselves
regarding their personal judgements, biases and assumptions, this ultimately results into high motivations and
organizational effectiveness.
Training and Retention:
Bassi and Van Buren (1999) identified in this research that competency and professional advancement is the primary
factor for retention of employees which are acquired through training. Investing money on training is not a cost, it adds
value and strategy of an organization is reflected through training for the growth and successful survival. Deery (2008)
suggested that one of the ways to improve retention and commitment is providing on the job training opportunities to
A Review of Literature on Employee Retention
workforce. Sarah Leidner et al., (2013) in this study, it is highlighted that for promoting employee devotion to the
organization HR practices play an important role. It is found in this study that providing better training to workers leads
to employee loyalty.
Job Satisfaction and Retention:
Davy et al., (1991) clearly stated the relationship between job security, job satisfaction and retention and highlighted that
the results of insecurity among workforce results into job dissatisfaction. Abraham (1994) when comparing effectiveness
of teaching, it is evidenced that faculties with high and medium level of satisfaction were more effective than those with
low level of job satisfaction. Koh and Goh (1995), highlighted the significant factors that affect turnover intentions which
were job satisfaction with respect to career growth, identity of company and financial rewards and results showed that
the higher satisfaction over these factors causes lower turnover intentions. Vijaya Mani (2010) in a study to analyse
employee job satisfaction and motivation used scorecard. It is found that if employees are dissatisfied, it is struggle for
the employer to retain the knowledgeable people in the organization. Noltemeyer and Patrick (2014), it is proved in this
study that there are certain responsibilities which accounts for job satisfaction. These are responsibility, work, good
supervisor and employee recognition.
Performance appraisals and Retention:
Both the employer as well as employee is benefited out of performance appraisal. It helps employees to realize their
strength and weakness. It also helps to identify the performance gap between the actual and the set standard. It helps the
individual as well as the organization where they are. Based on the performance feedback, efficiency of employees can
be improved. Performance appraisal helps in increasing monetary (pay) as well as non-monetary benefits like rewards,
recognition, career development, management support etc which are some of the important factors in determining the
employee to stay or leave the organization. Ingersol Company has developed a 360-degree online performance appraisal
for performance evaluation and they had conducted a survey with the company heads being interviewed like TATAS,
Hyundai Motors, Reliance Industries, Infosys, etc. Jonathan P. et al. (2011) found that it is required to be given that
‘extra’ to motivate the employees to stay.
Work-life balance and Retention:
The balance between the professional life and personal life is one of the factors in employee retention. Hyman and
Summers (2004) stated in this study that work which demands interventions into employees’ personal life would exhaust
them emotionally and result into high stress among the employees. Noor and Maad (2008), this study revealed that
satisfaction towards work-life balance leads to low turnover intentions. Deery (2008) suggested some retention strategies
which helps in balancing the personal and professional life e.g. i. flexible working hours, ii. flexible working
arrangements, iii. providing adequate resources iv. training opportunities, v. correct workload, vi. providing adequate
breaks in a day, vii. permission to take leaves i.e. carer’s leave and sabbatical leave etc., viii. staff reward, ix. invitin g
staff families for staff functions, x. wellness opportunities, and xi. effective management practices. Shrotriya (2009), it
is proved in this study that balance between professional and personal life increases the employee productivity and
competence which in turn would result into commitment and satisfactions. Branch (2011) contended that to improve
employee retention, encouraging a good work-life balance was not the only way to retain employees, but a good
compensation structure in a competitive range, career and development opportunities and some other factors also have
some influence over it. Further, it is essential to have a balance between personal and professional work which would
improve commitment towards the organization. Khairunnezam Mohd Noor (2011), in this study correlational analysis
and mediation analysis were performed. In correlational analysis, it was found that perceived work-life satisfaction have
negative impact with the intention to leave. In simple mediation analysis which resulted that job satisfaction &
organizational commitment are partial mediators in proving the relationship between work-life balance and intention to
leave among academics.
Employee Commitment and Retention:
Allen and Mayor (1990) found that in organizations, employees with strong/high employee attachment or commitment
have low turnover intentions when compared to weak/poor employee attachment or commitment. Fitz-enz (1990) found
in a research that employee commitment and retention cannot be determined by a single issue and it is determined by
many factors. Goulet and Frank (2002) conducted a research in which organizational commitment in public, non-profit
IJIRMS Volume 4, Issue 4, May 2019
and profit sectors were studied and it was discovered that the workers from the profit sector was the most committed to
their organization and next committed was non-profit and finally the public sector employees. Due to extrinsic and
intrinsic motivation, the employees from the public & non-profit sectors were anticipated to have high organizational
commitment but the study resulted against the expectation. Rashmi (2016) explained that in a competitive environment,
survival of organization becomes very tough because there is increase in poaching of employees and hence it is highly
essential for retaining committed employees in organizations.
Employee Engagement and Retention:
Mike Johnson (2004) in his book “The new rules of engagement” described that one of the utmost organizational battles
for the future 10 years and it is the ability of the organization to engage employees to work with the business of the
organization successfully. This is the hot topic currently i.e., in the 21st century and almost all the organizations are
attempting to achieve this to their extent. Gemma Robertson-Smith and Carl Markwick (2005) in IES Engagement survey
2005 discussed that job satisfaction, feeling valued and involved, equal opportunity, health & safety, total service,
ethnicity, communication and co-operation are employee engagement drivers in organizations. Hemsley and Fraser
(2008) cited that higher employee engagement leads to low turnover of employees’ i.e. high retention, high productivity
and profits and return on investments.
VII. Discussions:
Right person for the right job is not only a big challenge; but to retain them is also another great challenging for HR
professionals. To retain and also to have committed employees there are no standard HR practices followed in
organizations. From the above reviews, it is found that some studies were focussed on internal factors and some on
external factors influencing retention. Organizations also follow strategies depending on the nature of the business and
the key role to be played by HR department. Singh, S. et al. (2010) found in this study that exit interviews are highly
advantageous to identify the reasons for an employee for leaving an organization and which in turn would reduce attrition
level and result in increase in employee retention. Various studies have shown many strategies and recommendation to
retain the talented workforce in order to retain the knowledgeable work force.
VIII. Retention Strategies:
John Mason (2008) conducted a research and concluded that retention strategies now-a-days are recognized as vital one
in most of the industries. He listed out top ten retention strategies, these are as follows:
1. Treat employees like the way one treats his/her valuable clients.
2. Make the employee to fall in live with the company/organization where attached with.
3. Frame strong strategies for retention which ultimately brings recruitment advantages.
4. Right person for the right job.
5. Money is a driver but it is not the main reason for employees to stay.
6. To determine why employee, stay and leave, form employee committees.
7. Leadership style of the management.
8. Recognition
9. Fun in work teams
10. Competitive benefit packages.
Daniel Eseme Gberevbie (2010) analysed the organizational retention strategies and employee performance in banking
sector and resulted that suitable employee retention strategies help in achieving the goal of the organizations. The
following strategies are recommendations in the study:
1. Employee must be encouraged by way of fair human treatment
2. Employees should be informed of on a regular basis the reasons for taking actions.
A Review of Literature on Employee Retention
3. Implementation of policies and practices reflect how management has a view towards employees and how
friendly the management is with the employees and it is the ability of the organization to keep up the promises
and the integrity.
4. Regular salary package increases employee retention
5. Participation of employees in decision making process enhances retention.
Ananthan B.R and Sudheendra Rao L.N (2011) investigated the dynamics of retention towards practices and strategies
in Multinational companies and Indian firms. It was revealed in the study that there was no differences observed in MNCs
and Indian firms over retention strategies. The study resulted that perception towards retention strategies was significantly
high in employees’ side than the management side. Further, employees scored higher than the management with respect
to strategies such as organizational strategies, employee benefit strategies, rewards and recognitions strategies and ideas
and suggestions strategies. It was suggested in the study that integration of human resource practices to match with the
organizational as well as individual needs would be an effective strategy to improve job motivation and retention.
Kate Hutchings et al. (2011) highlighted some strategies for attracting and retaining employees in the Australian
Resources Sector. They classified three types of strategies in terms of organizational context-1, employment practices-2
and community and social concerns-3. Strategies with respect to company reputation, excellent work environment, high
quality leadership, quality people, good communications and high ethics and professional standards are discussed in
organizational context. Competitive remuneration, bonuses, training and development opportunities, benefit
packages/workplace benefits, challenging work, career opportunities (international), rostering, permanent work and
secured contract are discussed in employment practices.
Tripathi et al. (2011) concluded in the study that retention strategies for faculties irrespective of their level of pay. It is
discussed that there are several steps must be taken to develop retention strategies. First step is assessment of the existing
situation and measure the turnover rates in organization. The second step is to create designations/positions in
organization e.g. Officer for Recruitment & Retention. The next step is building a programme for comprehensive
retention management which would provide a correct data about how many employees are leaving and the reasons their
leaving and without this accurate information, the facts behind leaving cannot be found out. Finally, organizations with
a view to retain employees must conduct interviews and exit interviews.
Vijayalakshmi V (2012) discussed in the study that employees-the bases of a company and hence human resource
department must focus on them by identifying why employees are voluntarily leaving in an organization and what are all
their needs relating to their growth, education and personal life. This approach would create a positive impact in employee
retention in organizations.
X. Recommendations:
The following are the suggestions put forth to retain employees after reviewing various research papers:
i. Smart hiring is essential because the person to be selected should be fit to the job as well to the organization’s
culture and it is very important to keep in mind the qualification, skills and experience, diligence, attitude
required for the job.
ii. The next important one is to focus on training and development. Identifying the training need and giving
appropriate training to the employees make them to enhance their skills and motivate them to reach higher
iii. It is the foremost duty of the HR professionals to motivate, appreciate and recognize the work of the employees.
iv. It is essential to conduct a survey to measure the satisfaction level of employees in organizations. The reason
behind this is that this would help in understanding the satisfaction level of the employees and steps can be taken
to improve the satisfaction level.
v. It is highly important to conduct exit interview to identify the reasons behind leaving of employees in
organizations. This would help in strengthening the strategies for employee retention.
IJIRMS Volume 4, Issue 4, May 2019
vi. Mutual trust between the employer and employee must be created so as to bring a feel that employees are part
of the organization and they are working not only for their benefit but also for the benefit of the organization
and as well as for the benefit of the society.
vii. HR managers can conduct surveys and interviews to identify the issue of employee job withdrawal. Apart from
this observation can also be helpful in identifying such issue. This would be helpful to remove the negative
aspects of job and increases the positive aspects.
viii. To avoid monotony of work in some jobs, fun related activities, games, get together, stress management
programs can be organized.
ix. Work from home can be encouraged in organizations where there is no crèche facility which would boost the
morale of the female employees.
x. There must be a balance between the employee’s personal life and professional life i.e. work-life balance play a
vital role in retention because this would bring peace to the employees. Flexi-timings can also be encouraged so
as to improve work-life balance.
xi. Equality and fairness treatment among the employees would create a sense that everyone is treated as one and
the same i.e. there is no bias among the employees.
X. Conclusion:
Managing the talents is a great challenge and to retain the best employees, framing of policies and practices is highly
essential. At this juncture, it is necessary that strategies must be aligned with HR practices (i.e. recruitment and selection,
training and development, performance appraisal and compensation). Any retention strategy without aligning these
practices would definitely be ineffective. It is evidenced over these studies that organizations are framing various policies
and strategies to retain the talents. To avoid poaching of employees, to compete with its competitors and to survive in
dynamic environment, organizations have to concentrate on the factors on ‘staying’ for enhancing satisfaction and
commitment to retain the talented workforce. By reviewing the research papers, this study brings a holistic approach to
retain the talented and committed employees in organizations.
XI. References:
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A Review of Literature on Employee Retention
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... Leaders must promote motivation, well-being, and organizational effectiveness. Miranda et al. (2016), Kamalaveni et al. (2019), and Alkhawaja (2017) Competition: The increased competition regarding talented workers has led organizations to review their relationship strategies with employees, aiming to attract, motivate, and retain the workforce that can ensure the success of companies. ...
... With respect to the costs derived from the occurrence of churning, the results demonstrated that the biggest investment of an organization is in vocational training. Kamalaveni et al. (2019) referred that vocational training is a variable that has a negative impact on organizations' profits. It occurs because of the absence of retention measures. ...
... Therefore, the investment made in vocational training does not amount to costs, in fact, it adds value. An organization's strategy can be reflected in terms of administration of vocational training, generating growth and ensuring the survival of a company within the labor market (Kamalaveni et al., 2019). ...
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Purpose: This article presents the results of qualitative research performed through the semi-structured interviews to elaborate a theoretical-methodological human resources churning model that will allow to statistically describe the relations of interdependence between the selected variables, to analyze their impact, and to test hypotheses in future studies. Originality/value: The relevance of this study lies in the opportunity to contribute to the development of such an intricate, unexplored topic, with scarcely available literature and empirical studies, providing the elaboration of an interview script as an instrument for data collection that facilitates future studies. Churning of human resources (excess of turnover) is solely related to the replacement of workers who voluntarily choose to leave organizations (Burgess et al., 2000). Design/methodology/approach: This study follows a qualitative approach. The process of data collection consisted of developing a semi-structured interview guide to gather information through the performance of 20 interviews. Findings: Through the analysis of the results, it was possible to ascertain that the more favorable churning dimensions are, the greater the retention of workers in organizations. Thus, the elaboration and application of strategic measures by organizations become relevant for the retention of the most experienced and qualified workers in order to avoid high costs with new hiring, which are a direct result of such replacements (churning).
... No que concerne aos custos derivados da ocorrência de churning, os resultados demonstraram que o maior investimento de uma organização está centrado na formação. Kamalaveni et al. (2019) referem que a formação é uma variável com impacto negativo nos lucros de uma organização quando não são tomadas medidas de retenção. Investir em formação não é um custo, mas acrescenta valor, e a estratégia de uma organização reflete-se através da formação ministrada para o seu crescimento e a sua sobrevivência no mercado de trabalho (Kamalaveni et al., 2019). ...
... Kamalaveni et al. (2019) referem que a formação é uma variável com impacto negativo nos lucros de uma organização quando não são tomadas medidas de retenção. Investir em formação não é um custo, mas acrescenta valor, e a estratégia de uma organização reflete-se através da formação ministrada para o seu crescimento e a sua sobrevivência no mercado de trabalho (Kamalaveni et al., 2019). ...
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Resumo Objetivo: O presente artigo apresenta os resultados de uma pesquisa qualitativa através da realização de entrevistas semiestruturadas, com o objetivo de elaborar um modelo teórico-metodológico do churning de recursos humanos, que permita em estudo futuro descrever estatisticamente as relações de interdependência entre as variáveis selecionadas, analisar o seu impacto e testar hipóteses. Originalidade/valor: A pertinência sobre o estudo desta temática recai sobre a oportunidade de contribuir para o desenvolvimento de um tema muito complexo, pouco explorado, com pouca literatura e poucos estudos empíricos, proporcionando como instrumento de recolha de dados a elaboração de um guião de entrevista que facilite estudos futuros. O churning de recursos humanos (excesso de turnover) está relacionado apenas com as substituições de trabalhadores que saíram voluntariamente da organização (Burgess et al., 2000). Design/metodologia/abordagem: Trata-se de estudo com uma abordagem qualitativa. O processo de recolha de dados consistiu na elaboração de um guião de 20 entrevistas semiestruturadas. Resultados: Através da análise dos resultados, foi possível constatar que quanto mais favoráveis forem as dimensões do churning, mais favorável será a retenção de trabalhadores nas organizações, pelo que se tornam pertinentes a criação e aplicação de medidas estratégicas por parte das organizações com o intuito de reter os trabalhadores mais experientes e qualificados, de forma a evitar custos elevados com novas contratações, resultantes de substituições (churning).
... They further stated that direct evaluation of fit started at recruitment process improves fit as it matches employee skills and values with that of the organisation. Smart hiring is important since the person to be chosen should fit to the job also to the organisation's culture and it is very critical to be mindful of qualification, diligence, attitude, skills and experience needed for the job (Kamalaveni et al, 2019) [16] . It is likewise essential that employers evaluate the employees credentials to ensure they are the right fit (Cloutier et al, 2015) [9] . ...
... Moreover, job satisfaction is what employees seek and a main part of employee retention which is possibly attained by creating environment that makes employees feel content physically and psychologically (Biason, 2020) [7] . It is noted that when employees are dissatisfied, it becomes hard to retain the knowledgeable employees in the organisation (Kamalaveni et al, 2019). Whereas employees that are satisfied and happy with their work tend to be more dedicated and work for the growth of the organisation (Biason, 2020) [7] . ...
In the recent competitive and changing business environment, employee retention has become a matter of utmost concern in all private sector due to economic growth, shortage of skilled workforce and employee turnover. Since employees are the assets of any organisation, this competition has increased the responsibilities to implement effective strategies by organisations to retain their employees. The study examines the factors that promote employee retention through reviewing of past studies with the aim to analyse and identify various strategies that can help private sector organisations retain their best employees and motivate them to stay in the organisation. The study applied descriptive study technique and secondary sources have been used to collect the data from various research articles and journals. Recommendations are made for effective retention of valuable talents for private sectors that can enhance and promote employee's intention to remain with the organisation in this era of talent hunt. Introduction Employee retention is globally considered immensely critical for any organisation and has been the centre of organisational success or failure. In the current competitive era, private sectors are required to maintain their highly talented and well trained employees for effective sustainability and productivity in the market (Patro, 2014) [24]. Dhanpat et al, (2018) [11] further emphasized that for an organisation to prosper in the evolving world of work, there is a need to appeal, develop and maintain talent with the right skills and knowledge that will improve organisational effectiveness and productivity. However, turnover rate affects how the organisation performs and most organisations are judged on the basis of their turnover rate. Employee turnover has proven to be expensive to organisations. When there is high employee turnover the cost in resources, recruiting and time of replacing vacant positions increases. These increased costs incurred through new staff recruitment include advertising and administrative expenses, time and resources for recruiting and training, loss of productivity and overlapping of salary; hence making it hard to maintain positive employee culture and morale. Moreover, high employee turnover leads to missed opportunities of achieving the set production matrices and budgets within the department, adding extra costs to the organisation (Cloutier et al, 2015) [9]. Whereas, low turnover makes certain that the organisation retains competent employees by giving them conducive environment that increases employee's performances (Hassan et al, 2013) [15]. In order to confront employee turnover, most attention is given to retention as it helps with reducing turnover rates as well as retaining talented employees from getting poached by other organisations. Additionally, retention strategies make a friendly working environment that encourages employees to be productive and helps maintain good relations. Therefore, the objective of this study is to analyse different factors that enhances the period of the employees in private sector organisations.
... De forma a contornar esta problemática, as organizações devem desenvolver e atuar com medidas estratégicas com o intuito de tornar as condições laborais mais atrativas com a finalidade de aumentar o nível de satisfação dos trabalhadores em permanecer na organização e deste modo manter os seus trabalhadores evitando custos com substituições (Kamalaveni et al., 2019). ...
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Introduction: Given the multiplicity of definitions about the concept of human resource churning, we took as a premise, the costs associated with the replacement of workers from voluntary departures from organisations. As this is a subject that has not yet been widely explored in Portugal, this study aims to expand the theoretical framework, as well as the empirical studies; Goals; Methods: This qualitative study aims to identify the main recedents of human resource churning and the strategic measures applied by organisations to mitigate it. In order to make the objective feasible, the research question was: what is the origin of churning in organisations and what are the mitigation measures? As a data collection method, 20 semi-structured interviews were conducted with human resources directors from various sectors of activity, which were analysed through content analysis in order to extract the main variables, emphasising the development of a theoretical model and its analysis; Results: In order to analyse this model, 3 propositions were defined and proceeded to their substantiation, using the literature on the subject and the information obtained through the interviews, it was possible to analyse the veracity of the defined propositions. It was possible to predict that human resource churning recedents negatively influence the occurrence of human resource churning; that mitigation measures have a positive influence on human resource churning and that mitigation measures have a positive influence on human resource churning precedents; Conclusions: The greater the investment in the application and/or development of policies and practices of human resources retention, the lower the churning rate will be, and therefore the costs derived from the replacement of workers will be reduced.
... This high percentage would have serious effects on the efficiency of an organization. Hiring the right person is already difficult enough, but keeping them is even harder (Kamalaveni et al., 2019). The departure of valuable ICT employees would not only have a financial impact on the company in terms of the costs incurred in hiring and training new employees but would also have an impact on the overall viability of the company (Lim & Saraih, 2021). ...
With the intensified focus on information and communication technology (ICT) as a driver of the Malaysian economy, pressure will increase on the recruitment and retention of ICT employees. However, work overload and conflict with family roles may lead to a higher level of turnover intention among ICT employees. The objective of this study is to investigate the predicting effects of all forms of work-family conflict (time-based, strain-based and behavior-based) on turnover intentions. This quantitative cross-sectional study utilizes primary data collected from 200 employees from ICT companies in the Klang valley using purposive sampling. Various statistical analyses such as correlation and multiple regression analyses were conducted to analyze the collected data with the SPSS statistical package. The findings indicate that all forms of work to family conflict and family to work conflict had effect on turnover intentions except for time-based form of family to work conflict (TFWC). This study has significance for the management of ICT companies in Malaysia as it provides human resource managers with a better understanding of their employees needs in order to devise better strategies to reduce turnover rate. This study also addressed some limitations, implications and recommendations for future research.
... Branham, in 2005 mentioned in his study that an employee, due to an overwork climate, feels stressed and becomes unable to balance work and family life, which later makes him quit the organization. Researchers have suggested that organizations must ensure a balanced work and professional life, which is important in employee longevity 24 . In his study, the researcher has taken 2 antecedents of employee longevity: Work-Life ...
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Previous studies have shown and proven that employees need temporary detachment from their work to recharge and re-energize for the next day to work with similar enthusiasm. But work pressures and overwork culture have become a buzzword every corporate follows, and employees are bound to face it. This study investigates the impact of overwork culture (OWC) on employee longevity (EL). Further, it examines the mediating role of employee psychological detachment (EPD) on the linkage between OWC and EL. It aims to develop a relationship between psychological detachment and employee longevity, which can be referred to further to show how important the former's role is for the organization's welfare. The survey data was collected from 116 IT professionals from India, and the proposed relationship was analyzed through the SMART – PLS structural equation modeling tool. This study found a significant impact of Overwork Culture on EPD, but at the same time, the impact of OWC on EL is much less. This gives a scope to rethink the causes behind accepting this new norm. Also, our study fails to give the considerable impact of EPD on EL, and the mediating role of EPD can decrease up to 13% of the impact of OWC on EL. The originality of the research stems from the scarcity of research on EPD and almost no study on the mediating role of EPD on EL. This is one of the earliest studies to investigate the mediating role of EPD on EL with another independent variable. This proves the novelty of this study as it has a huge difference after Covid-era, where psychological detachment has less effect on employee longevity.
... It is worth highlighting that human resources holding is defined as the capacity of an organization in keeping its workers, so, workers are considered as being an asset by staying as part of the organization, these being employees that take fundamental strategic positions in order to develop the organization. In this sense, there is a need to implement strategic measures in service or the organization needs as well as the workers, with the purpose of finding a balance with the objective of creating satisfaction between the workers that remain in the organization and in order to hold on to the knowledge, creativity, and skills to meet the organization goals [33,34]. ...
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The term churning is defined by a multifaceted approach and is quite a complex concept that has been gaining relevance in the field of human resources, due to the problematic loss of investment, originating from the voluntary exits of worker-associated costs. This phenomenon is a direct result of the rising competitive job market, causing employees to leave organizations and carry with them all the knowledge and experience acquired in the starting organization, an organization which invested in the development of its workers. Even though churning is aligned with human resource practices, it is considered a multifaceted concept because of the different contexts in which it interferes, such as economic context, per activity sector, clients, the type of organization, geographic location, etc. Although, despite its own complexity, churning is related to turnover; however, there are differences between these two concepts. While turnover is linked to the workers' rotation within an organization, churning is mainly focused on the costs associated with voluntary exits from workers. It is simply linked to investment losses inside an organization, which has the main goal of creating mechanisms that allow the creation of awareness in organizations about the relevancy of action using strategic measurements of holding in order to minimize the churning rate, and in this way, reducing the unexpected costs, creating revenue, increasing proficiency, standing out in business activity, bettering nimbleness and expanding profits. This initial manuscript introduces the churning concept in human resources, the main causes of churning, as well as approaching how organizations take action in order to appease this event using literature, which lacks major advertising and given relevance to its pertinence in human resources. Through the analysis of the existing, this entry was guided with the objective of demystifying the subject of human resource churning.
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Purpose: This paper investigates the influence of job engagement and work-life balance on increasing employee retention in the Hotel Industry. Method: The study used quantitative research with a causal associative approach. The population in this study was 63 employees of Natra Bintan Resort. 40 respondents were successfully collected using simple random sampling techniques. Data was obtained through a structured questionnaire and supplemented with a desk review of the literature. The proposed model is analyzed through the Smart PLSS assessment. Result: The result of this study found that there is a significant influence on the significant work engagement path. Meanwhile, there is an insignificant influence of the work-life balance path on employee retention. Job engagement and work-life balance are predictors of employee retention in the hospitality industry. Contribution: The contribution of this study is manifestly found as a significantly increasing employee retention which will give a big impact on the Hotel Industry. The company is expected to pay attention to the relationship between employees and superiors about work-life balance and job engagement and employees get complete information about the requirements for occupying a position. The theoretical contribution of this research lies in its exploration of the influences of work-life balance and job engagement on employee retention within the hotel industry. By empirically testing these relationships and differentiating their impacts, the study provides valuable insights for both academia and the practical management of human resources in the hospitality sector
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O presente trabalho visa desenvolver o conceito de churning, uma vez que este apresenta poucos estudos empíricos e literatura. Normalmente este conceito associa-se aos clientes de uma certa empresa, contudo neste trabalho vai ser estudado o churning nos recursos humanos, podendo ser definido como a alta rotatividade de trabalhadores numa organização. Este fenómeno pode causar bastante impacto, daí a grande importância desta temática, na análise das suas possíveis causas, desde a questão do salário até aos horários, e as suas consequências, destacando-se os custos elevados na substituição do trabalhador. Juntamente com o tema do churning nos recursos humanos, o presente trabalho engloba o período de estágio curricular na Administração da Universidade de Coimbra, na equipa de Avaliação de Desempenho. Este período de estágio para além da parte pessoal, acabou por contribuir também para o aprofundamento da temática a ser explorada. Na última parte do trabalho, analisa-se um questionário de satisfação dos trabalhadores da Universidade de Coimbra, com o intuito de prever possíveis causas de churning. Com uma amostra de 810 trabalhadores, o maior nível de insatisfação encontra-se em fatores que englobam o SIADAP, contratos de trabalho, concursos internos, políticas de gestão de recursos humanos e falta de trabalhadores. Grande parte da insatisfação dirigiu-se a questões ligadas ao sistema público vigente em Portugal e todas as suas limitações e, uma vez que literatura existente confirma o churning no setor público como sendo tendencialmente a nível interno, concluiu-se que essa troca de departamentos acaba por não resolver as causas de insatisfação.
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The research goal is to see if opportunities for career development, salary, and work-life balance profoundly influence millennials toward turnover intention in multinational corporations (banking sector) in Klang Valley Malaysia. To strengthen the findings and evaluation, a descriptive, cross-sectional correlation, the quantitative study will be conducted to determine the relationship between career development, salary, and work-life balance against the factor influencing millennials toward turnover intention in multinational corporations (banking sector) in Klang Valley Malaysia. Furthermore, this research will be carried out in a non-contrived study setting, in which research will be carried out in the natural environment. In this study, a non-probability questionnaire survey will be used. A questionnaire will be created, which will be derived from past research. According to Krejcie and Morgan (1970), the minimal sample size must be 384. Assuming a response rate of 80%, 400 questionnaires will be distributed to millennials in Klang Valley. The Statistical Package for Social Science (SPSS) software will be used for data analysis.
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Employees are the most valuable assets of an organization. Their significance to organizations calls for not only the need to attract the best talents but also the necessity to retain them for a long term. This paper focuses on reviewing the findings of previous studies conducted by various researchers with the aim to identify determinants factors of employee retention. This research closely looked at the following broad factors: development opportunities, compensation, work-life balance, management/leadership, work environment, social support, autonomy, training and development. The study reached the conclusion that further investigations need to be conducted regarding employee retention to better comprehend this complex field of human resource management.
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This article presents findings from a survey conducted in the Australian resources sector in 2009 exploring human resource (HR) managers’ perceptions of how their organizational practices and external contextual changes in industrial relations legislation present challenges for the sector and influence attraction and retention of highly skilled employees. The research makes an important contribution to the literature on good employment/high involvement work practices by investigating organizational practices within the politico-legislative context of this economically significant sector. Our findings indicate that organizations have implemented a range of ‘good’ employment practices, while dealing with concerns about skills shortages, employee turnover, an aging workforce and changes in legislation. We identify a need for employers to give greater attention to diversity and work—life balance issues. Further, there is a need for strategies to increase the attractiveness of work in remote locations.
This second annual State of the Industry report, produced by the research department of the American Society for Training & Development, tells what leading-edge companies are doing to be at the top of the training field. The data is from the more than 750 U.S. organizations that participated in ASTD's 1998 Benchmarking Service. The evidence shows that employer-provided training is on the rise in terms of the amount of money invested and the percentage of employees being trained. Yet, there is still a gap between leading-edge companies and the average organization. The training leaders are different in the amount of training they provide, the resources they invest in employee development, the practices they use, and the means of training delivery. Generally, to be leading edge, a company has to spend more money on training employees, especially in human performance work practices such as self-directed teams, and on innovative training practices such as mentoring. Specifically, to stand out from the crowd, an organization has to use at least 13 of the 17 practices identified by the study as leading edge. The average organization uses only 11 of those practices. The average company spent about $2 million on training in 1997, up from $1.4 million in 1996. The total training expenditure of the typical leading-edge firm rose from $3.4 million in 1996 to $4.1 million in 1997. The authors note, however, that total training expenditure depends greatly on an organization's size. Not only must organizations provide more training, they must also provide training to more employees-at least 86 percent to be leading edge. The average organization trains about 74 percent of its employees. The article includes a breakdown of findings by industry.
The competition to retain key employees is intense. Top-level executives and HR departments spend large amounts of time, effort, and money trying to figure out how to keep their people from leaving. This article describes some new research and its implications for managing turnover and retention. These ideas challenge the conventional wisdom that dissatisfied people leave and money makes them stay. People often leave for reasons unrelated to their jobs. In many cases, unexpected events or shocks are the cause. Employees also often stay because of attachments and their sense of fit, both on the job and in their community. We discuss these ideas and make recommendations for integrating them into a comprehensive retention plan.
The paper aims at quantifying the employee satisfaction levels by using Employee Satisfaction Index (ESI). It also attempts to observe if there is any significant change in the ESI of the employees in response to the introduction of treatment variables to improve the current level of satisfaction. This research study was undertaken in an R & D organization near Chennai, where the past employee performance appraisals showed significant trends of employee job dissatisfaction. 150 employees of this firm were surveyed. Various factors that lead to employee satisfaction have been chosen and their influence on ESI has been assessed. This was accomplished through the responses to a questionnaire received from a sample of respondents spanning across different hierarchical levels and various departments in this organization. The top ten important factors that lead to employee satisfaction were identified. Based on these rating scale responses, a scorecard was generated showing the factors that lead to employee satisfaction with their respective weight age.
Despite the considerable attention scholars have devoted to studying symbolic management, theoretical integration across disciplines remains limited. This panel symposium brings together researchers from strategy, organizational behavior, and organization theory to address three questions which are foundational to the future of symbolic management research: 1) What common threads characterize our collective understanding of symbolic management across domains of organizational research, 2) What theoretical and practical approaches do managers have at their disposal to accomplish symbolic management, and 3) What role do stakeholder and society play in validating symbolic management efforts?
Recent years have seen significantly increased interest in learning at the workplace as partial or full compensation for vocationally-oriented education and training in schools and educational institutions. In this general enthusiasm, former scepticism about workplace learning would seem to be buried deep under layers of modern management slogans. However, the well-known limitations inherent in this learning framework cannot be talked out of existence, and there is an urgent need for insight and tools capable of distinguishing between the genuine possibilities in the area and how to establish fruitful interaction between workplace learning and educational learning. It is, first and foremost, a matter of viewing learning from the perspective of the learner, because adults are not very inclined to learn something of which they cannot see the point on the basis of their own life situation. As a grounding for this, a contemporary and comprehensive learning theory is needed. The outline of such a theory and an example of how it can be used are presented.
A model of survivor responses to layoffs is developed and tested. Perceptions of global process control, perceived fairness of the layoff, and job security are tested as predictors of job satisfaction, organizational commitment, and behavioral intentions to withdraw. The empirical assessment of a complete latent variable model with covariance structure analyses supported both the measurement and the structural models. Global process control is shown to be a direct antecedent of perceived fairness of the layoff and job satisfaction. Perceived fairness of the layoff and job security also have direct effects on job satisfaction. Job satisfaction acts as a mediating variable between these variables and organizational commitment. Organizational commitment, in turn, has a direct negative effect on behavioral intentions to withdraw. These findings suggest that witnessing a layoff has significant effects on psychological and behavioral responses of layoff survivors. Direction for future research is discussed.