Talent Management and Employee Retention
Background
Due to globalization, technology developments, mergers and growing competition in the organizations it has being a vital role for human resource management to identify talent and retention of employees. Considering Asia, Europe and USA continents, Talent Management and employee retention had become a widespread problem, especially in Asia continents. It is also recognized that Asia is in second place of employee turnover issue (Manhertz, 2011).
Talent Management
Talent and talent management have rarely been as important to the success of organizations as they are today (Fitzgerald, 2014). According to Ulrich and Smallwood (2011) model has defined the organization workforce to facilitate talent strategy and development, especially by offering talent development. The defined categories assumption with “everyone in the company is talented” and there should be different approach and understanding of all groups such as a part of the process identifying high flyers and building a protective culture is one of the key responsibilities of HR. Miller (2001) states competency is the behaviors that employees must have, or acquire, to achieve high levels of performance. Laddha, Singh and Gabbad (2012) states there are two points to be considered on employees which is the performance in the job or having high potential. Along employee retention is a process that employees are encouraged to stay in the organization to the maximum time period which is beneficial to the organization business environments are highly competitive, and profits and goodwill is generated by employees who are the backbone of the organization (Saman, 2014). As per surveys done by Laddha, Singh and Gabbad (2012) employees change their jobs for various reasons, which are career development/ promotional opportunities, for a higher salary, or due to lack of job fit general work environment, the flexibility of the job and job security. Figure 1 reflects how to identifying what is talent. The organization could recognize that a systematic approach to the management of talent would address three of the key leadership challenges of ‘recruiting and retaining employees; a more diverse or inclusive leadership or an organization of all the talents’; and benefits in terms of organizational performance, as organizations can achieve competitive advantage through people (Macfarlane et al., 2012).
Figure 1: Identifying what is talent
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Source: Ulrich and Smallwood 2011
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Employee Retention
According to Kotze and Roodt (2001), staff Retention and turnover issues impact organizations in several ways. Mostly its related various costs. Mainly visible turnover costs, invisible costs and hidden costs. The visible turnover costs are leave capitalization, recruitment costs and induction expenses. Invisible costs include increased human resource and payroll administration, loss of productivity, transition meetings and induction expenses. Hidden costs are missed deadlines, loss of organizational knowledge, lower morale due to overwork, clients impact and chain reaction turn over, even long-tenured employees’ personal relations with the customers. Therefore, staff retention has a positive effect on customer relations and ultimately profitability of the organization. When staff often feel demotivated or disheartened it will reduce the productivity and job satisfaction which will lead to the employees to look forward to new job opportunities.
Figure 2 : Maslow’s Hierarchy of Needs on Motivation of Employees
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(Source: Jerome, 2013)
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Effectively motivating employees has been one of management's most important and challenging duties in employee retention and it is critical for an organization to evaluate the level of the staff needs. Therefore, it is important to understand the level of motivation and the need that the employees are at. Maslow’s hierarchy of needs is such a model that could be used to motivate employees, which introduced his theory about how people satisfy various personal needs in the context of their work. (Gawel 1997).
Safety needs refer to the need for shelter and protection from danger. Belongingness needs refer to the need to be part of a group and also to the need to love and be loved. Esteem needs concern the need to feel good about oneself, one's abilities and characteristics. At the top of Maslow's hierarchy of motivators, it is important to understand the level of motivation and the need employees, Jones and George (2013) Maslow’s Needs Hierarchy is an abstract way of classifying employees’ needs and desires as each level is devised of specific motivational forces that are to be attained throughout career progression. Therefore, the organization I work provides salaries and other allowances to meet physiological needs while safety needs are being provided through job security, and training and development to staff members. Social needs are met with good and healthy supervisor-employee relations and respect for all employees and recognition of work. Senior managers are provided with modern vehicles, house rent and other allowances such as entertainment allowances to satisfy esteem needs, this in return leads to high retention as personal needs are met by the organization at all levels, and in return engaged employees meeting the organizations key performance indicators (KPIs).
Herzberg’s Two-factor theory is another model that is used to motivate employees (Mujtaba 2016). According to Herzberg, there are two sets of factors that influence motivation in the workplace by either enhancing employee satisfaction or hindering it. These factors are referred as hygiene and motivation factors. Herzberg's research proved that people will strive to achieve 'hygiene' needs because they are unhappy without them, but once satisfied the effect soon wears off - satisfaction is temporary, example policy, relationship with supervisor, work conditions, salary, status, security, relationship with subordinates and personal life (Lynn 2016). There are other factors Herzberg identified as real motivators, such as achievement, advancement, development, responsibility and recognition (Lynn 2016).
Organisation believes that having an established human resource governance framework will lead to improved productivity and assistance to drive the organizational changes. Below are the Human resource function strategies of the industry (NDB bank annual report, 2015)
Figure 3: Bank’s Strategies
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| (Source: NDB bank annual report, 2015) |
Recruitment and Retention Practices
Industry welcomes new generation with new thinking patterns and the industry had adopted best practices in retaining staff such as providing an attractive remuneration package, training and development, career progression and employee share options.
Figure 4. Age analysis of employees leaving NDB
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(Source: NDB bank annual report, 2015)
Employee Turnover A total of 116 employees resigned from the Bank during the year, with males (65%) and the age group 20 to 30 years (47%) accounting for the largest proposition of leavers (NDB bank annual report, 2015). This is an increasing trend from the year 2014 to 2015, exit interviews will help identify the underlying reasons for employees to leave the organization (Sajjad Hossain, 2017) and subsequently take necessary action to improve employee retention.
Table 1: Turnover by age group
(Source: Sri Lankan Manufacturers Journal report 2016)
Training and Development
The organization invests continuously to fulfill the training and development needs of staff identifying through staff performance reviews, assessment feedback and regular discussion with line managers. After discussing with the line managers training programmers are prioritized to close the competency gaps. The organization provides training programs to all categories of staff aligned with professional bodies and also provides self- learning facilities such as e-learning (NDB bank annual report, 2015)
Average Training Hours
Training is made available to staff based on needs, both in terms of the company and the individual and is independent of gender. The average duration of formal training provided during 2015 was 32.4 hours per person overall, by gender, the corresponding figures were 30.24 hours per female and 33.39 hours per male employee. (NDB bank annual report, 2015)
Rewarding Performance, Health and Safety, Welcoming Feedback
Attitude Towards the Company.
There are 9 elements included in this category which explains the attitude towards the job; such as nature of work, job security, job status, quantum of work, clear job requirements, appreciation/recognition, communication, training and one open-ended question whether the employees are searching for jobs externally (Wright and Nishii 2004).
Attitudes Towards the Job.
This category consists of 7 elements which explain the attitude towards the industry; respondents feeling as an employee at the organization, policies and procedures in place, superior’s guidance, relationship with peers, relationship with subordinates and whether the respondents will advise their friends to apply for a job at manufacturing sector (Judge 2004).
Attitudes Towards Human Resource Practices.
This category consists of 8 elements which explains attitude towards human resource practices; mode of selection when recruiting, lateral movement vacancies advertised internally, training programs made by the organization, promotional policy in practice, transfer policy practice, leave rules, grievance handling procedure at the industry and also whether the employees find discrimination /favoritism in the industry (Judge 2004).
Conclusion
Nature of employee retention is poor as a higher percentage of the respondents wants to move out of companies for better job opportunities. This may be caused due to lack of communication, less appreciation/recognition, not satisfying job-specific training, not satisfying periodical salary responses to the lower grade, less promotions and high favoritism/ discrimination. As examined the organization will face many consequences in the future such as high employee turnover, less quality service, decrease in morale and reduction in the productivity which will give a chance to the competitors to lead in the industry and customers might move out to competitor brand for satisfaction.
Employees are considered as the backbone of the company therefore necessary actions should be taken to identify the most potential, talented respecting the methods of talent management and retain the employees. Any organization will have to bear significant costs due to poor employee retention, especially if the talent is not recognized and uplifted to the next level, which will be another path for industry loss.
According to Lockwood (2006) Discrimination and Favoritism should analyze by the human resource department in the organization. the employees, who get frequent higher performance reviews, promotions, periodical salary revisions should take fair necessary actions by appreciating and recognizing individuals. The Leaders of the organizations must be appreciated and the good work too. This approach will make the employees recognized and value addition to their career (Lockwood 2006).
According to Capelli (2008) to uplift employee’s Specific job Training is required, Job-related training should be given to all the employees irrespectively. Also, they should be given a freedom to request for the training if they require. the human resource department and the management could provide training aligned with their job so the employees can enhance their knowledge of their job role, Clear Communication of Goals and Strategies, Proper communication methods should be used to convey the goals and strategies of the organization employees. At least quarterly basis employees should be updated regarding the goals and strategies.
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REFERENCES
Cappelli,P. (2012) Talent on Demand: Managing Talent in an Uncertain Age, Talent for Tomorrow Summit, Vienna.
Das, B. and Baruah, M. (2013). Employee Retention: A Review of Literature. IOSR Journal of Business and Management, 14(2), pp.08-16.
Fitzgerald, M. (2014). Talent and Talent Management Insights. p.Single.
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Hossain, M., Himi, S. and Ameen, J. (2017). Strategic Use of Exit Interviews: The Art of Retention. Asian Journal of Economics, Business and Accounting, 2(4), pp.1-12.
Jerome, N. (2013). Application of the Maslow’s hierarchy of need theory; impacts and implications on organizational culture, human resource and employee’s performance. International Journal of Business and Management Invention, 2(3), pp.PP.39-45.
Jones Gareth R, George Jennifer M (2011): Contemporary Management, 7th edition. McGraw Hill, New York
Jones, G. and George, J. (2013). Essentials of contemporary management. 6th ed. New York: McGraw-Hill Irwin.
Klotz, A. C., & Bolino, M. C. (2016). Saying goodbye: The nature, causes, and consequences of employee resignation styles. Journal of Applied Psychology, 101(10), 1386-1404.
Kotzé, K. and Roodt, G. (2005). Factors That Affect The Retention Of Managerial And Specialist Staff: An Exploratory Study Of An Employee Commitment Model. SA Journal of Human Resource Management, 3(2), pp.48- 55.
Laddha, A., Singh, R. and Gabbad, H. (2012). EMPLOYEE RETENTION: AN ART TO REDUCE TURNOVER. INTERNATIONAL JOURNAL OF MANAGEMENT RESEARCH AND REVIEW, 2(3), pp.1-6.
Lockwood,N.R. (2006) Talent Management: Driver for Organizational Success; Research Paper, SHRM www.shrm.org/research/articles/articles/documents/0606rquartpdf
Macfarlane, F., Duberley, J., Fewtrell, C. and Powell, M. (2012). Talent management for NHS managers: human resources or resourceful humans? Public Money & Management, 32(6), pp.445-452.
Manhertz H. (2011). Worldwide trends of employee retention, [pdf]. p.single. Available at: https://achieveglobalmec.files.wordpress.com/2015/01/worldwide-trends-in-employee-retention.pdf [Accessed 1 Jun. 2018].
Miller, L., Rankin, N. and Neathey, F. (2001). Competency frameworks in UK organisations. London: Chartered Institute of Personnel and Development.
Nations development bank (2015). Annual report. [online] Colombo. Available at: http://ndbbank2015.annualreports.lk/ [Accessed 2 Jun. 2018].
Ndulue, T. and Ekechukwu, H. (2016). Impact of Job Satisfaction on Employees Performance: A Study of Nigerian Breweries Plc Kaduna State Branch, Nigeria. Kuwait Chapter of Arabian Journal of Business and Management Review, 5(11), pp.13-23.
Saari, L. and Judge, T. (2004). Employee attitudes and job satisfaction. Human Resource Management, 43(4), pp.395-407.
Salman A. (2014). Factors Affecting on Employees Retention in Banking Sector: An Investigation from Karachi. International Knowledge Sharing Platform, 6(37).
Ulrich, D. and Smallwood, N. (2011). what is talent?. Michigan: Michigan Ross school of business, pp.1-7.
Vito, L., Brown, A., Bannister, B., Cianci, M. and Mujtaba, B. (2016). Employee Motivation based on the Hierarchy of Needs, Expectancy and the Two-Factor Theories Applied with Higher Education Employees. International Journal of Advances in Management, Economics and Entrepreneurship, [online] 3(1), pp.20-32. Available at: http://www.ijamee.info [Accessed 31 May 2018].
Wright, P. and Nishii, L. (2006). Strategic HRM and Organizational Behavior: Integrating Multiple Levels of Analysis. [ebook] p.single. Available at: http://digitalcommons.ilr.cornell.edu/cahrswp [Accessed 1 Jun. 2018].
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One of the crucial concerns in organization is the employee retention. Retention is regarded as a strategic opportunity for many organizations to sustain a competitive workforce (De Long & Davenport, 2003; Schramm, 2006). Retention could be improved when employees are offered compensation and benefits, a supportive work culture, career developing and advancement and balance work and life (Messmer, 2006).
ReplyDeleteStudies states that the employees are leaving organizations due to some mixture of tangibles (pay and benefits), and intangibles (supervisor relationship, work/life balance, work content, career path, trust in senior management) is unsatisfactory, and they have the opportunity to join another organization where, presumably, that employment schemes are better than the current. (Kaliprasad).
Talent Management together with employee retention has become a daunting task for HR Experts. Different HR experts could provide organizations with suggestions as to how they can retain employees. Compensation experts could focus on market equity, incentive pay, retention bonuses and stock options while a benefits expert could focus on the importance of flexible benefit plans communicated brilliantly and delivered seamlessly. Such as organizational design specialists addressing work/life balance, supervisor training, and career development” (Kates, 2006). These will help the organizations to retain the required talent which meets the organizations strategic development.
Yes, I agree. De Long & Davenport, 2003; Schramm, 2006; Messmer, 2006; Kates 2006 have contributed a lot in Talent Management and Employee Retention, as per to their journal studies identifying and maintaining the talent has being a vital role by HR department in order to identify and retain the best to uplift the organization and profits as well.
DeleteEmployee retention undertakes different measures so that an individual continues to work in an organization for maximum period of time. It fosters long-term effective association between the employees and the management representing the organization. It avails the organization with skilled and experienced workforce which is useful for increasing the productivity of the organization. Organization with poor employee retention culture seldom grow as desired (Capeli, 2008).
ReplyDeleteAn organization should develop a work culture that encourages creativity and diversity and puts in place an effective anti-discrimination policy, that promotes flexible working, where possible. Making your employees feel valued and proud of the work that they do, will not only do wonders for your employer branding strategy, but will also improve your employee turnover rate also (Judge, 2004).
Retaining a motivated and an optimistic employee is vital to any organization's growth and success. There will be a negative effect on an organization’s morale, if employee turnover increases the expenses. Implementation of an employee retention program is an effective way in making the key workers remain employed while maintaining job productivity and performance (Lynn, 2016). For creating a strong workforce, hiring of employees is the starting phase of any organization. High employee turnover costs business owners in productivity and time (Gawel, 1997).
2. The culture and organization environment plays a vital role. Better culture and environment makes the employee the best place to work. It can be defined as a set of beliefs, values and behaviours that leaders to invent or discover to solve problems in the external and internal environment, which is taught to new entrants as the correct way of solving problems (Schein, 1990). The culture varies across the organization. It is a combination of norms and values of members of an organization, passed along to new entrants to organizations. It is a normal way to guide people of what is expected of them at the work place. However, culture does not remain stagnant. It is a dynamic element, which takes the effect of the changes occurring in the environment and resultantly, new thoughts, beliefs and feelings get in it with the passage of time (Vlachos, 2009). According to (Musser, 2001; Sinnott et al., 2002; Yusoff et al., 2013) The decision of an employee to stay in the organization is effected by a number of factors depending on a variety of elements like the individual’s age, the family situation, mentoring, career and learning opportunities, good benefits, networking and the external job market or job title.
DeleteSome of Major Factors Involved in Employee Retention
ReplyDeleteCompensation − It includes salary, advance, bonus, rewards, health insurance, and retirement benefits.
Environment − Organizational environment motivates employees to perform better. Positive environment creates positive energy.
Growth − Every employee needs growth in his/her career, and most employees look for growth within the organization.
Support − Support culture helps employees grow professionally and they perform better in their job. Organizations need to support employee financially and emotionally so that they perform better, and feel secured.
Employee retention is defined as “a technique adopted by businesses to maintain an effective workforce and at the same time meet operational requirements” (Mita, 2014). Fitz-enz (1990) has recognized back in the 1990s, that employee commitment and retention is not hell-bent on a single issue but by a cluster of factors. Ghapanchi and Aurum (2011) stated that retention factors include remuneration and benefits, training opportunities, fair and equal treatment, organizational culture. In addition, Allen and Shanock (2013) emphasize on relationship with colleague socialization, further Andrews and Wan (2009) emphasized on management style and leadership to increase an organization retention capability.
DeleteAs stated by Messmer (2000) training and development are fundamental factors for employee retention. Deery (2008) ascertained that on the job training will increase retention and commitment. Furthermore according to Leidner (2013) employee loyalty is improved through training and development.
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ReplyDeleteIn any organisation, Employees are one of the most important aspect. But if they aren't feel valued, don't be surprised if they decide to call it quits. Recognizing their hard work, keeping a transparent line of communication and stay open about where the company is headed are some of the ways to keep your employee retention rate high.
ReplyDeleteForbes Human Resources Council has identified Six Strategies You Can Use To Improve Employee Retention namely:
1. Conduct Stay Interviews
2. Empower Your Team
3. Allow Them To Communicate Anonymously
4. Avoid Micromanaging
5. Check In Regularly
6. Be Transparent
Forbes Human Resources Council. (2016). Leadership : Six Strategies You Can Use To Improve Employee Retention. Available at https://www.forbes.com/sites/forbeshumanresourcescouncil/2016/09/08/six-valuable-ways-to-improve-your-employee-retention/#6ff3f90513d6. Accessed on 6 June 2018.
Agreed Dinuka. However, when HRM became popular it was criticized for the reason that it referred to people as resources, hence according to Boxall and Purcell (2016:4) this is a misunderstanding of the term and rather it’s knowledge, skills and energies which they use in their daily roles: ‘People are not human resources. On the contrary, people are independent agents who possess human resources, which are the talents they can deploy and develop at work and which they take with them when they leave the organisation’ (authors’ emphases). https://www.ipa.ie/_fileUpload/Documents/THE_PRACTICE_OF_HRM.pdf .
DeleteWhen addressing the issue of HR management strategies, it is essential to understand and analyze all the HR dimensions: Organization, People, Processes and Systems. HR strategy includes all of these dimensions http://www.eupan.eu/files/repository/HRManagement1.pdf
High levels of engagement results lower absenteeism and higher employee retention in organizations (Stairs and Galpin, 2010). According to Armstrong (2014) following factors affect whether or not employees stay with the organizations.
ReplyDelete• Career development opportunity
• Ability to manage their careers and satisfaction from their work
• Job security
• Company image
• The effectiveness of recruitment, selection and deployment
• Leadership
• Learning opportunities
• Performance recognition and rewards.
According to Tansley and Tietze (2013), retention and deployment of individuals with high talent is one of the main strategies of talent management. Hence, talent management plays an important role with regard to employee retention.
In the prevailing economic environment, it is extremely important for organizations to find better ways to uplift levels of engagement. As further stated by Stairs and Galpin (2010) employee engagement is related for faster business growth and higher likelihood for business success. Furthermore, employee engagement is described as a concept similar to that of employee commitment, as something influenced by job challenge, independence over tasks, variety, feedback, environmental fit, opportunities for development and rewards and recognition (Armstrong, 2016).
DeleteThe CIPD (Chartered Institute of Personnel and Development, UK) has defined ‘talent’ as: “Those individuals who can make a difference to organizational performance either through their immediate contribution or, in the longer-term, by demonstrating the highest levels of potential”
According to Workforce Planning for Wisconsin State Government (2015), employee retention is “a systematic effort to create and foster an environment that encourages employees to remain employed by having policies and practices in place that address their diverse needs”
Retention of employees for a longer time gives an image of employer branding to any organization (Fitz-enz, J. 2003).
Hence I agree that talent management plays an important role with regard to employee retention.
In the 21st Century, Employees are a company’s most vital and valuable asset. It is the responsibility of the management of a company to be able to recognize good talent within employees. Being able to identify an employee’s talent and manage it to the advantage of the company and development of the individual is key. There are a few steps that have being identified and proven by researchers that are important in this process, empowering your employees, conducting regulate two way interviews, allowing anonymous communication and feedback, avoiding micromanaging and being transparent are some of them. The way to make sure talent management is positive in a company is like continuously pumping in an endless stream of “talent” directly into the veins of the company (Collins,2009).
ReplyDeleteDuring the past few decade, the turnover of employees in a company has become a daunting and very serious problem. Managing retention, keeping the employee turnover rate low and retaining skilled and competent employees has become a target and norm in the way most companies work in today’s world (Phillips and Connell, 2004). Retention of employee refers to the ability of a company to be able retain its key skilled and competent employees. Many consider employee retention as the efforts in which a company takes in attempt to retain the employees in their workforce. In this sense, retention becomes the strategies rather than the outcome. However, this is not true at all times. The company would need to draw a clear distinction should low-performing employees and its top performers. And high levels of effort should be taken to retain employees that are targeted as Valuable and employees that contribute to the growth of the company. If a company demonstrates a high level of employee turnover this is a sign of deeper issues that have not been resolved, which may include friction between management and employees, low motivation of employees, no proper career development plan in place for employees, lack of rewards and recognition or many other problems. A lack of job satisfaction being given to an employee would result in poor commitment to the company that could employees to withdraw and seeks outside job opportunities. Salary or Pay does not always play a large contribution in this decision.
Agreed Joanne. Mary Kay Ash, America’s greatest woman entrepreneur a visionary and an innovator claims that “People are definitely a company’s greatest asset. It doesn’t make any difference whether the product is cars or cosmetics. A Company is only as good as the people it keeps”.
DeleteIt is the desire of every organization and business to be successful and achieve long-lasting progress. However, only a few organizations think that the employees are their main assets that lead the organization to a long-lasting success. As modern markets very much competitive, employee retention has become a major challenge. Consequently, to overcome these restraints, a strong and positive relationship should be created and maintained between employees and their organizations. Unless and until the employees of an organization are satisfied, are motivated for the tasks fulfilment and goals achievement, no organization can progress or achieve success (Adi, 2000, Anka, 1988, Rothberg, 2005).
An organisation that operates in a country where the economy is growing at a faster rate, it is likely that the companies will offer both factors in order to get benefited from the economic growth. Therefore in order to retain employees the organisations will offer a combination of hygiene and motivating factors.
ReplyDeleteHowever in certain organisations it is believed that only extrinsic rewards (tangible) are needed to motivate people therefore only salary increments are offered. But in the long term this could have a negative impact on the employee motivation levels. However in multinational companies like Accenture, it is believed that a combination of extrinsic and intrinsic rewards are necessary to motivate the employees. Hence it is important for organizations to set norms about the value of intrinsic rewards at the work place.
Yes Salinda I agree with your comment and would like to further state that Intrinsically motivated behaviours are for the pleasure and the satisfaction of self-performing (Deci, 1971) and are known as activities that are performed by people voluntarily in the absence of material rewards or constraints (Deci & Ryan, 1985). Furthermore, Intrinsic motivation is important be it individual interest or interests in certain situations. To name a specific motive within the internal motivation is interest (Sansone & Morgan, 1992). In addition, Ryan & Deci (2000) emphasizes that individuals who are intrinsically motivated are likely to think more strategically, generate more creative solutions, persist through difficulties, and learn more from their experiences.
DeleteTalent management is motionless rather of a mystery to supreme, but it is fetching more broadly used to explain the complete HR strategy across individuals in the workplace. And just like trustworthiness is suitable a more recognised and esteemed component to achievement a competitive advantage in business, best-practice associations have recognised talent management as the major component of their business strategy to segregate themselves from the contest and accomplish desired objectives (Ha, 2006).
ReplyDeleteCurrently, there are hardly any HR managers who do not concern themselves with the management of talent in their organization. While talent management is a topic that is frequently thought about, it is only rarely figured out: Many (HR) managers actually feel that their talent-management systems or practices do not have the desired effects (CIPD, 2012).
DeleteAccording to (Lepak & Snell, 1999) originally, talent management has been coined as a highly exclusive construct: It is a tool for employees who are valuable and unique. The managers’ understanding of talent, in turn, influences whether talent management practices are directed at all employees, or at an elite circle of highly valuable and unique employees only (Meyers, 2015).
Organizations that have difficulties to attract new talent, need to boost the engagement and performance of a stable core workforce, or aim to foster workplace inclusion should consider a shift towards a more inclusive or hybrid talent management approach. Such a shift can be facilitated by several initiatives. First, existing HRM instruments such as performance appraisals can be formally adapted to make more room for the discussion of personal strengths, qualities, and achievements (Bouskila-Yam & Kluger, 2011).
Deloite’s Human Capital Trends Study 2014 identifies retention as one of the top two people issues of organizations (Bersin, 2013). Due to the huge differential value created by a talented employee, the recent researches in human resource area tend to focus on retention of talented employees than of entire workforce. researchers have identifted that when perceived level of talent management practices increases, turnover intentions observed in talent employees decreases (Oehley & Theron, 2010; Plessis, 2010; Sonnenberg, 2011). It is really important that the person’s values, career goals and plans for the future must ‘‘fit’’ with that of the organization as well as the bigger community. The first place to focus in building fit in the organization is in the recruitment and selection process (Holtom et al.2006). Talent management is a mutual investment relationship where employees are benefited with career development and organisations with enhanced performance ( Hom, Tsui, Wu, Lee, Zhang, & Fu 2009).
ReplyDeleteThis comment has been removed by the author.
DeleteTalented employees often comprise the organization’s core human capital, making it significant to highlight their turnover behaviour influence on an organization’s competitive advantage (Lee and Steven, 1997; Shaw, 1999; HoukesInge, 2001). The Traditional Turnover Model. Adapted from Griffeth et al., (2000); pp. 463-488.
DeleteTinsley (2000) mentioned that P-E fit models “ubiquitous in vocational psychology” and concluded that the research support was overwhelming “that the P-E fit model provides a valid and useful way of thinking about the interaction between the individual and the environment.
http://www.academicjournals.org/article/article1380553719_Zheng%20et%20al.pdf
Exact investigations, for example, Stovel and Bontis (2002) have demonstrated that, practical turnover (great workers stays, and terrible workers leave) can lessen dangerous various leveled execution. Then again, Abassi and Hollman (2000) contend that, useless turnover (great representatives takes off, furthermore, awful workers stay hurts the association through reduced improvement, conceded organizations, dishonorable execution of new ventures and declined benefit. For that reason, Gandz (2006) entirety up that, the viably executed Talent Management systems in an associations update the rate of maintenance. Subsequently, it oversees imperative specialist issues and enhances association's aggressive position.
ReplyDeleteAccording to Mulligan (2001), managers must evaluate the organizational culture, its different elements and try to find out the ways to discover methods to develop the culture accordingly to retain more employees. Training and development programs can increase retention when they meet the needs of the employees (Montgomery, 2006). Talented and good employees are asset of an organization. Although according to Heathfield, (1995) it is highly important to retain talented employees towards a long term growth and as well as success of the organization, (Heathfield, 1995), at present organizations encounter major issues to retain employees (www.retentionconnection.com, retrieved on May 22, 2010).
DeleteThe decision of an employee to stay in the organization is effected by a number of factors depending on different elements like the individual’s age, the family situation, mentoring, career and learning opportunities, good benefits, networking and the external job market or job title (Musser, 2001; Sinnott et al., 2002; Yusoff et al., 2013).
Retention Model Review principles:
ReplyDeletea) Employees have stopped working because they can. Demographics on workplaces leave employees with too many jobs, even in lower economies. Survey outputs and various studies indicate that employees have left due to
superiors,wages, career development and "better opportunities" While each of these reasons for termination is true at one moment or another, the main reason why employees left is that our economy and society make it easier for them.
b) Employees stay on things that escape from you. These things can be tangible, such as the opportunity to go to work, a five-day / eight-hour program or a reduced price for the company's products. Or, could be intangible things like learning new skills, working with a trusted superior or performing services that help others. Some of these reasons can be caused by procedures or programs, while others occur during work. Retaining happens when employees receive things they appreciate thinking they are not doing anywhere else, and these things create reasons for them to stay.
c) Leaders create unique relationships that lead to retention or turnover.
Researchers Marcus Buckingham and Curt Coffman in their book, "First, Break all Rules," say: "A talented employee can join the company for his charismatic leaders, generous benefits and world-class training programs, but how long does the staff remain, and how productive when it is determined by its relationship with its immediate superior. "Supervisory relationships are unique controls that deeply affect employee decisions about residence / holidays. Some employees remain for supervisors, some leave for them and some drive them out. (A Lewis, A Sequeira, 2016)
In any form of activity of people involvement leadership plays a vital role. Similarly, Northouse (2004) asserts that leadership is where any individual influences a group of people to achieve common goals. Hence the nature of leadership influences individuals’ intention to retain or leave the organization (Mbah and Ikemefuna 2011). As result leadership requires a serious attention as it is one of the factors that influence employee retention. Furthermore, Sharma and Jain (2013) define leadership as a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent.
DeleteHire the right people. Retainable employees show a clear commitment to contribute their skills and best efforts to your organization for the long term. Seek out people who are intrinsically motivated and interested in developing their skills and careers. Those only seeking money and power are classic turnover risks. Clearly establish expectations when you hire so that disappointments on both sides can be avoided. It's also important to understand your company culture and how potential hires fit into it.
ReplyDeleteHave a good system for evaluating performance. Both the company and the employee benefit from knowing exactly where they stand in relation to each other's expectations. By monitoring and sharing results, it becomes clear which employees are meeting (or not meeting) performance expectations. Evaluation gives middle market companies the chance to recognize and reward excellence, a key aspect of employee retention. Employees expect feedback and will leave if they're not getting enough.
Track your levels of retention/turnover and overall employee satisfaction. This allows you and your employees to know where problems are so you can solve them. Having an employee satisfaction survey, and then acting upon it, can decrease turnover. Questions you'll need to include: Are your people happy with compensation and benefits? With how they are managed? With the challenges the company offers them? With the training opportunities? Collecting this information will help support your ongoing retention efforts.
Train managers and supervisors in good communication skills so that expectations between employees and managers can be openly established. Evaluation of performance begins with clear, measurable expectations that both manager and employee agree to and track. Giving managers better skills in offering important (sometimes sensitive) feedback is crucial. Employees generally don't quit on the company, they quit on their managers. Having managers who communicate feedback well and behave professionally is perhaps your best retention strategy.
Offer employees a career path and a career development plan. This will allow your employees to have a better long-term vision of their evolving role inside the company. It will also allow the company to show its commitment to developing its talent, which benefits both the company and the employee. If employees have gaps in their skills or experiences, a career development plan (created by the manager, the employee, and HR working together) lets the employee realize that the company wants to close that gap and prepare the employee for the next step. Thus, employees don't feel "stuck" and without growth potential in the company, problems that are major drivers of turnover and low morale. For more research from the NCMM on this issue of training as a retention strategy, see a full report here.
Have a recognition program that celebrates employees with excellent performance. It's not just the high achievers who deserve recognition, but anyone who goes above and beyond the call of duty. Reward good examples, and you create a culture where everyone wants to be a good example. This is also a culture that retains people. In addition, managers should seek out opportunities to recognize or appreciate employees informally, perhaps over lunch or during watercooler conversations. These are moments employees remember: Employees who feel valued generally reciprocate by offering their loyalty to the company.
Customize benefits and work expectations for individual employees as much as possible. This will take a lot of time and effort because it requires companies to better understand the particular needs of their employees. Different employees want different things, so offering the same benefits package and working conditions to all will inevitably create dissatisfaction. This is a turnover risk. While it may be inconvenient to offer more flexible working hours or a customizable menu of benefits, such practices boost employee satisfaction and loyalty.
Thank you Saman for your input. However some of the points have already being discussed in the blog.
DeleteEmployees are a key figure in today's organisational Structure.If the employees does not feel valued by the organisation they would leave the organisation.Specially in my experience the line manager plays a huge role on making his team motivated.Managing talent and recruiting the right talent for the right job is very critical in controlling employee retention as well. It links with job satisfaction in the long run.
ReplyDeleteIt appears that for an employee to be motivated, their needs have to be met. Thus, the satisfaction of the employee represents an indispensable dimension of the motivational process. Therefore, a satisfied employee would certainly contribute positively to the realization of organizational goals and objectives, while a dissatisfied employee may not only contribute but also can even act in such a way that the realization of such goals and objectives could be completely destroyed. This underlines the importance of employees‟ satisfaction to the organization (Anka, 1988). Furthermore, it gives pride to an employee to be recognized as being a part of an organization, fully dedicated to the organization’s goals and doing their best to help in achieving them (Armstrong, 2007).
DeleteAccording to Armstrong, M. (2014), Talent management is the process of ensuring that the organization has the talented people it needs to attain its business goals. It involves the strategic management of the flow of talent through an organization by creating and maintaining a talent pipeline.
ReplyDeleteAs suggested by Younger et al (2007), the approaches required include emphasizing ‘growth from within’; regarding talent development as a key element of the business strategy; being clear about the competencies and qualities that matter; maintaining well-defined career paths; taking management development, coaching and mentoring seriously; and demanding high performance.
The term ‘talent management’ may refer simply to management succession planning and/or management development activities, although this notion does not really add anything to these familiar processes except a new name – admittedly quite an evocative one. It is better to regard talent management as a more comprehensive and integrated bundle of activities, the aim of which is to create a pool of talent in an organization, bearing in mind that talent is a major corporate resource.
Armstrong, M. (2014). A Handbook of Human resource Management Practice, Thirteen Edition, Kogan Page Publishing, London
Agreed Kohulakrishnan. Thank you for the contribution
DeleteTalent management is ensuring that the organization has the talented people it requires to provide for management succession and meet present and future business needs.
ReplyDeleteAccording to Lewis and Hackman (2006), talent management is defined in three ways:
1) As a combination of standard human resource management practices such as recruitment, selection and career development;
2) As the creation of a large talent pool, ensuring the quantitative and qualitative flow of employees through the organization (i.e akin to succession or human resource planning);
3) As a good based on demographic necessity to manage talent.
Agree Thusitha. Thank you for the input, however, there are number of definitions for talent exist.
DeleteBroadly, talent is defined as “a natural ability to do something well” (Longman Dictionary of Contemporary English, 2006). According to Gagne (2000) the term talent designates the superior mastery of systematically developed abilities and knowledge in at least one of the fields of the human endeavor. Thorn and Pelant (2006) define talent as “someone who has the ability above others
and does not try hard to use it.
European Scientific Journal September 2014 /SPECIAL/ edition Vol.1 ISSN: 1857 – 7881 (Print) e - ISSN 1857- 7431, page 347.
Individuals who have the habit of changing jobs frequently never get attached to any particular organization. They just treat the organization as a mere source of earning money. They are never serious about their work and fail to accomplish the tasks within the desired time frame. It hardly matters to them whether the organization is performing well or not? In cases of poor retention policies, employees are just not bothered about the reputation of their office and avoid taking initiative to do something new. The employees who are there for a long time in the organization are trustworthy and the management can rely on them anytime.
ReplyDeleteLeaders should commit to the recruitment, retention, and strategic support of employees (Agrawal, 2012).
DeleteA factor that affects the performance of workers is management's strategy within an organization. However, in the way organizational leaders treat the employees and the respect shown to employees may set the atmosphere for an entire shift. Managers with poor attitudes may reduce the employees' performance, and retention could become a problem for organizations when employees feel disconnected and leave (Kwon, Chung, Roh, Chadwick, & Lawler, 2012).
Corporate culture is one of the strongest drivers of innovation globally (Tellis, Prabbu, & Chandy, 2009). Employees prefer an organizational culture where managers and workers understand assigned goals and they have an incentive to achieve the goals. Leaders should retain qualified talent to sustain in a competitive market (Kaplan, Wiley, & Maertz, 2011) by maintaining high productivity or goal achievement. Normal hiring procedures will not be sufficient to keep employees if organizational leaders have limited opportunities for advancement (Stewart, Volpone, Avery, & McKay, 2011). Attitudes, behaviors, and communication issues produce cultural dissimilarities (Holmes, 2010). Kochanowski (2011) asserted leaders might develop retention challenges if they do not have good retention strategies. These strategies allow managers to reduce turnover and retention costs (Chen, Wang, & Chu, 2010).
Robinson et al. (2004) state that neither commitment nor OCB reflect sufficiently two aspects of engagement-its two-way nature, and the extent to which engaged employees are expected to have an element of business awareness, even though it appears that engagement overlaps with the two concepts. Rafferty et al (2005) also distinguish employee engagement and the two prior concepts- Commitment and OCB, on the ground that engagement clearly demonstrates that it is a two-way mutual process between the employee and the organization.
ReplyDeleteThe commentary on the evolution of employee engagement is summarized by the following points:
Delete1) It builds upon and goes further than 'commitment' and 'motivation' in the management literature (Woodruffe, 2006 as cited in CIPD, 2006a)
2) A desk review undertaken by Rafferty et al (2005) indicates that it originated from consultancies and survey houses rather than academia
3) The level of interest it has generated indicates that it is more than a passing management fad and a considerable amount of research and analysis has been conducted in the last 10 years or so building up our understanding of the term.
https://www.gov.scot/Publications/Recent
According to Osteraker (1999) [20], the employee satisfaction and retention are the key factors for the success of an organization. The Retention factor can be divided into three broad dimensions, i.e., social, mental and physical. The mental dimension of retention consist of work characteristics, employees always prefer flexible work tasks where they can use their knowledge and see the results of their efforts which, in turn, helps in retaining the valuable resources. The social dimension consists of the contacts that the employees have with other people, both internal and external. The physical dimension consists of working conditions and pay.
ReplyDeleteThank you for commenting Chanaka however, the points are already mentioned in the blog.
DeleteManaging talent & hiring the right person for the right job is a major concern that every organization faces in today's business world. It all begins at Selection & Recruitment process where there are so many candidates meeting the advertised requirements, but not competent enough to do the work. Especially in IT field, there are so many graduates from many number of institutes & young generation who gained certified qualifications on different technologies due to social trends but without the knowledge of knowing how to apply what was learned when it is practically required. It is has become a HR departments responsibility to carefully select & recruit the right employee using many number of new methods in place to do so.
ReplyDeleteTwelve steps for hiring right
Delete1. Conduct Job Analysis
2. Update Job Description
3. Sourcing potential employees
4. Resume / Application Review
5. Telephone Screen
6. Pre-employment performance testing
7. Interview #1 (with realistic job preview)
8. Structured Interview #2 (panel)
9. Office Tour
10. Matrix Comparison
11. Offer (contingent upon background and reference checks)
12. Background/Reference Checks
Source: Journal of Applied Business and Economics vol. 12(3) 2011, page 142
http://t.www.na-businesspress.com/JABE/MuellerWeb.pdf
With talent management becoming an area of growing concern, there is a need for practicing due diligence in their talent acquisition strategy. To meet the demands for talent with a specific skill set in a given timeline, the organizations are adopting innovative recruitment practices to find the correct skill sets and competencies.It is suggested that organizations should make efforts to build effective, practical and holistic talent strategies that are not only able to attract talent but also address employee engagement and the retention of key skills thus boosting the productivity and business performance. During talent acquisition, due diligence is required in assessing the person‐organization fit and providing an enabling work environment to keep the talent anchored to the organization. (Srivastara,2008)
ReplyDeleteEffective retention management requires ongoing diagnosis of the nature and causes of turnover, a strategic approach to determining in what human capital markets retention
has the largest impact on organizational success, and the development of an appropriately targeted and organized bundle of retention initiatives (Allen, Bryant, Vardaman,
2010). Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time. Employee retention is beneficial for the organization as well as the employee. Employees today are different. When they get dissatisfied,
they move to other organizations. It is the responsibility of the employer to retain their best employees, if not; the organization will lose the star performers (good employees),
(Gurumani, 2010).
Agree and thank you for your inputs. However some comments are already discussed in the blog.
DeleteAccording to Sheehan, (2012) Talent management has become a main issue in the Public and private organizations and business administration field from the end of the Nineties and As a new stage talent management is becoming a way of applying human resource management functions in the organizations. The labor market has entered a new era as a result of innovation, knowledge development, globalization and increased competition.
ReplyDeleteThe success of an organizations depends on employee retention which helps the organization in reducing employees turnover intention and enhancing organizational efficiency (mohsen,2007). Therefore, organizations pay more attention on retention and attraction rather than recruitment and selection to survive in competitive environment (Holland et al, 2007) hence, talent management plays an important role in this process.
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ReplyDeleteThis comment has been removed by the author.
DeleteHuman capital with its knowledge, skills and abilities becomes a critical factor for economic success of organizations. Since human capital is the greatest and most important asset of an organization and talents are able to influence the overall performance and results of the organization, the process of managing talents is becoming very important.
ReplyDeleteOnce the talented individuals are recruited, selected, and developed, they must be the focused of retention efforts. According to Walker (2001), following are some of the essential factors which may help employee retention.
• Performed work is compensated and appreciated
• Promotions
• Learning opportunities / Scholarships
• Organizational Culture should be invitational
• Positive relationship among the colleagues
• Balanced professional and personal life and communication
• Good Interaction
Yes agree with your comments. To add a few Retention is a complex concept and there is no single recipe for keeping employees with a company. In literature, retention has been viewed as “an obligation to continue to do business or exchange with aparticular company on an ongoing basis” (Zineldin, 2000). A more detailed and recent definition for the concept of retention is “customer liking, identification, commitment, trust, readiness to recommend, and repurchase intentions, with the first four being emotional-cognitive retention constructs, and the last two being behavioral intentions” (Stauss et al., 2001). Studies have also indicated that retention is driven by several key factors, which ought to be managed congruently: organizational culture, communication,
Deletestrategy, pay and benefits, flexible work schedule and career development systems (Logan, 2000).
https://pdfs.semanticscholar.org/bf6b/86d40c9b0d75abb66c8c5fb1ee4d3536de8e.pdf
Employees tend to be important in an organization , if a lot employees leave the organization, the image of the business would get tarnished,so its important to retain staff.
ReplyDeletemanaging for employee retention involves strategic actions to keep employees motivated and focused so they elect to remain employed and full productive for the benefit of the organization.
A comprehensive employee retention program can play a vital role in both attracting and retaining key employees,as well as in reducing turnover and related costs.
Yes Tharindu I agree with your comments. Few points are already discussed in the blog. Further you have also pointed out that the 'image of a business is tarnished hence its important to retain staff', yes retention of employees for a longer time gives an image of employer branding to any organization (Fitz-enz, J. 2003). This too is pointed out by Pradeep in his comment and have replied accordingly.
DeleteTalents could be expressed as those individuals who acquire differentiating skills and effectiveness enabling them to perform well who can support the employer to achieve the organizational goals. These individuals can be treated as talent-dynamic, that is, people whose prevailing skills will further grow and develop over time and help the organization to grow and develop sustainable competitive advantage.
ReplyDeleteThank you Sameeka for your input and I agree with your comments.
Delete