Employee Retention & Careers Nadia Khan 13941

HUMAN RESOURCE MANAGEMENT
SUBMITTED TO:
SIR SHAFQAT ULLAH
SUBMITTED BY:
NADIA KHAN
REG ID: 13941

ASSIGNMENT
Managing Employee Retention, Engagement and
Careers
Employee retention is defined as the process by which a company ensures that its employees
don't quit their jobs. Every company and industry has a varying retention rate, which indicates
the percentage of employees who remained with the organization during a fixed period.
A distinction should be drawn between low-performing employees and top performers, and
efforts to retain employees should be targeted at valuable, contributing employees. Employee
turnover is a symptom of deeper issues that have not been resolved, which may include low
employee morale, absence of a clear career path, lack of recognition, poor employee-manager
relationships or many other issues. A lack of job satisfaction and commitment to the organization
can also cause an employee to withdraw and begin looking for other opportunities. Pay does not
always play as large a role in inducing turnover as is typically believed.
In today's environmental conscious behavior society, companies that are more responsible
towards environment and sustainability practices can attract and retain employees. Employees
like to be associated with companies that are environmentally friendly.
Retention Programs
It is important to first identify the root cause of the retention issue before implementing a
program to address it. Once identified, a program can be tailored to meet the unique needs of the
organization. A variety of programs exist to help increase employee retention.
 Career Development – It is important for employees to understand their career path

within an organization to motivate them to remain in the organization to achieve their
personal career goals. Through surveys, discussion and classroom instruction, employees
can better understand their goals for personal development. With these developmental
goals in mind, organizations can – and should – offer tailored career development
opportunities to their employees.
 Executive Coaching – Executive coaching can be used to build competencies in leaders
within an organization. Coaching can be useful in times of organizational change, to
increase a leader's effectiveness or to encourage managers to implement coaching
techniques with peers and direct reports. The coaching process begins with an assessment
of the individual's strengths and opportunities for improvement. The issues are then
prioritized and interventions are delivered to target key weaknesses.
 Orientation and Onboarding – An employee's perception of an organization takes
shape during the first several days on the job and continues throughout their first six
months, with 90% of employees still deciding whether or not to stay at the organization
during this time. It is in the best interest of both the employee and the organization to
impart knowledge about the company quickly and effectively to integrate the new
employee into the workforce.
Turnover
Turnover means the rate at which employees leave the firm, varies depends among industries.
For example, accommodation and food services is very high, transportation unavailability, low
income, etc.., with over half the industry’s employees’ voluntary leaving each year.
It’s not include involuntary separations, such as poor performance. Combining both voluntary
and involuntary turnover produces some outstanding statistics.
Turnover is expensive cost of HR department as profit center in any organization.
Cost of Turnover
 Studies have shown that cost related to directly replacing an employee can be as high as
50–60% of the employee's annual salary
 These costs include candidate views, new hire training, the recruiter's salary, separation
processing, job errors, lost sales, reduced morale and a number of other costs to the
organization
 Turnover also affects organizational performance
Types of Turnover
There are two types of employee turnover.
1. Voluntary turnover occurs when some employee choses to leave (resigns) from an
organization due to his/her personal reasons. The reasons are:
a. Got a new opportunity in reputed organization
b. Leave a city or area for family issues
c. Medical issues
d. Starts own new business (entrepreneur) …
2. Involuntary turnover when the employer or organization makes the decision for the
employee to leave (fired) due to following reasons. The reasons are:
a. Unnecessary staff
b. Suspended because of violence
c. Theft
d. Conflict in code of conduct
Job Withdrawal
 Progression of withdrawal is a theory that dissatisfied individuals enact a set of behaviors
in succession to avoid their work situation. In other words, actions intended to place
physical or psychological distance between employees and their work environments.
 Three categories include:
o Behavior change
o Physical job withdrawal
o Psychological jib withdrawal
 Withdrawal behavior are related to one another, and they are all at least partially caused
by job dissatisfaction.
 Its means escape for someone who is dissatisfied or fearful.
Turnover versus Withdrawal

 Turnover means the rate of employees leave voluntary while withdrawal means
separating oneself from one’s current situation.
 Poor attendance and voluntary turnover are two job withdrawal examples
 Some examples include taking undeserved work breaks, spending time in idle
conversation and neglecting aspects of the job one is obligated to perform
 Other employees stop showing up mentally (psychological withdrawal), perhaps
daydreaming at their desks while productivity suffers.
 When an employee perceives that temporary withdrawal will not resolve his/her
problems, then the employee is apt to choose a more permanent form of withdrawal (i.e.,
turnover, assuming that alternative work opportunities are available).
Approach to Retaining Employees

Identifying the problems is an important first step. After conducting exit interview of leaving
employees, analysis the turnover problems areas.
Many employers regularly managed attitude surveys to monitor employees about matter such as
supervision and pay. They work on polices to control and managed to get positive results
according to expectation for organization.
Analyzing the situation leads to solution. Then, having identified potential problems, the
employer can take steps to boost employee retention.
 Increase pay – for talented employees increase pay is retention tool for many
employers.
 Hire smart – retention start up front, with the selection and hiring of the right
employees.
 Discuss careers – discuss with employees their career preference and prospects, and
help them lay out career plans.
 Direction – retaining employees requires making it clear what your expectations are
regarding their performance and what their responsibilities are.
 Flexibility – flexible work arrangements are benefits to encourage to select job over
another.
 High performance – invested in employees such as promotion, high pay, pensions and
permanent job.
 Counteroffer – employer who do allow counteroffers need a policy that specifies what
people and positions are eligible for counteroffers, allowable compensations
enhancement, and how to determine the offer.
Employee Engagement
Employee engagement is the extent to which employees feel loving about their jobs, are
committed to the organization, and put flexible effort into their work. Employee engagement is
not the same as employee satisfaction.
Engagement supports actions include making sure employees:
1. Understand how their departments contribute to the company success
2. See how their own efforts contribute to achieving the company’s goals
3. Get a sense of accomplishment from working at the firm.
Career Managagement
HR activities such as screening, training, and appraising serve two basic roles in organizations.
1. To fill its positions with employees who have requisite interests, abilities and skills.
2. To ensure that the long-run interests of the employees are supported by the organization.
The second role is that the employer has an obligation to utilize its employees’ abilities to the
fulfill and to give all employees a chance to grow and to develop successful careers.
It is important to understand the terminologies of careers are:
 Career Management
The process for enabling employees better understand and develop their career skills and
interests, and to use these skills and interests more effectively.
 Career Development
The lifelong series of activities that contribute to a person’s career exploration,
establishment, success, and fulfillment.
 Career Planning
Deliberate process through which someone becomes aware of personal skills, interests,
knowledge, motivations, and other characteristics; acquires information about opportunities
and choices; identifies career-related goals; and establishes action plans to attain specific
goals.
The Employer’s role in career management

• For the employee, career planning means matching individual strengths and weaknesses
with occupational opportunities and threats.
• In other words, the person wants to pursue occupations, jobs, and a career that capitalize
on his or her interests, aptitudes, values, and skills.
• He or she also wants to choose occupations, jobs, and a career that make sense in terms
of projected future demand for various types of occupations.
• The consequences of a bad choice (or of no choice) are too severe to leave to others.
Coaching and Mentoring

Do not underestimate the impact that a supervisor can have on his or her employee’s career
development. With little or no additional effort than realistic performance reviews and honest
career advice, a competent supervisor can help the employee get on and stay on the right career
track. At the other extreme, an unsupportive supervisor may look back on years of having
inhibited his or her employees’ career development.
The manager can do several things to support subordinates’ career development needs. When
the subordinate first starts, make sure he or she develops the skills required to do the job well.
Schedule regular performance appraisals, and at these reviews cover whether the employee’s
current skills and performance are consistent with his or her career aspirations.
In doing so the manager may act as coaching and mentoring.
 Coaching
o Involves educating, instructing, and training subordinates
o Focuses on teaching shorter-term job-related skills
 Mentoring
o Is actively advising, counseling, and guiding
o Is helping employees navigate longer-term career hazards
o Is leading highly trained employees and self-managing teams

o Supplants the need for authority and for giving orders for getting things done
Coaching and mentoring require both analytical and interpersonal skills
Managing Transfers
Transfer is a move from one job to another job, not necessary to effect in salary or grade, some
cases to change his grade and income, its depends on organization engagement with employees.
Employers\ may transfer of employee:
 To vacate a position where no longer needed
 To fill a position where needed
 To find a better fit for the employees within the firm
 To boost productivity by consolidating positions
Employees’ reasons for desiring transfers

 Personal enrichment and growth
 More interesting jobs
 Greater convenience
 Greater advancement possibilites
Managing Retirements
Retirement planning is a significant issue for employers and no longer just for helping current
employees slip into retirement
It can also enable the employer to retain, in some capacity, the skills and brain power of those
who would normally retire and leave the firm.
Workforce Retirement Planning
 A reasonable first step is to conduct numerical analyses of pending retirements.
 This should include a demographic analysis (including a census of the company s
employees), a determination of the average retirement age for the company s employees,
and a review of how retirement is going to affect the employer s health care and pension
benefits.
 The employer can then determine the extent of the retirement problem, and take fact-
based steps to address it
Employers seeking to attract or may be retain retirees need to take several steps.
1. Create a culture that honors experience
2. Modify selection procedures
3. Offer flexible or part-time work
4. Implement phased retirement programs

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Employee Retention & Careers Nadia Khan 13941

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HUMAN RESOURCE MANAGEMENT

REG ID: 13941

 Career Development – It is important for employees to understand their career path

Turnover versus Withdrawal

Approach to Retaining Employees

The Employer’s role in career management

Coaching and Mentoring

o Focuses on teaching shorter-term job-related skills

o Is leading highly trained employees and self-managing teams

Coaching and mentoring require both analytical and interpersonal skills

Employees’ reasons for desiring transfers

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