Contemporary HR issues Blog #3 - What are the most important HR issues facing your organization today?

Employee Retention

Organizations are mainly depending on its employees & they are the major component of any organization. Although it is important for a company to have good strategies, technology, marketing plan & business location but without having strong & motivated HR assets organization will not achieve any progress or won’t reach their goals. (Taylor, 2002)

It is very important for an organization to ensure their employee retention since the unnecessary staff turnover may increase the recruitment cost of the company. (Taylor, 2002) It takes lot of time to hire or to get a new employee & lot of efforts need to be put to get a new employee. Other than the effort & time, recruitment process would require a huge cost.(Mobley, 1982) Hence it is always profitable for an organization to retain its existing employees.

Employee retention can be described as policies, practices & procedures that make employees to stay with the organization for longer period. Employee retention is not determined by one factor, there are bunch of factors which affect the employee retention of the organization such as, compensation, rewards, job security, training & development, supervisor support, organization culture, work environment & organization justice. (Fitz-enz, 1990) If the companies lose a fully trained employee they have to face a huge loss. (Francis, 2014)

Now days the second biggest problem faced by the organizations is employee retention & 10% of the HR issues in industries are related to Employee retention. (Great Place to Work, 2018)

If the organization failed to retain their employees, other than the losing an employee the organization will also have to face some other problems like re-organizing resources, handling agony of the team, managing work pressure of the other employees, drop in moral of employees & also the organization will fail to achieve expected goals. (Mobley, 1982)

Companies can have several unique strategies to ensure employee retention but in general by letting employees to feel like they are also a part of the organization, employee retention can be ensured. (Mitchell et al., 2001)

References

Fitz-enz, J. (1990). “Getting and keeping good employees” In personnel, Vol:67 No:8.

      Francis, A.U. 2014 “Human Resource Management Practices and Employee retention”, International Journal of Scientific & Engineering Research, Volume 5, Issue 2.

Great Place to Work (2018) What are the current HR challenges. Available at http://www.greatplacetowork.co.uk/publications-and-events/insights/1025-what-are-the-current-hr-challenges (Accessed: 17^th June 2018 at 12.01am).

Mitchell, T. R., Holtom, B. C. and Lee, T. W.    (2001) “How to Keep Your Best Employees: Developing an Effective Retention Policy”, Academy of Management Executive.

 Mobley, W. H. (1982) “Intermediate Linkages in the Relationships between Job satisfaction and Employee Turnover”, Journal of Applied Psychology.

Taylor, C. R. (2002) Focus on Talent, Training and Development.