Analysis of Effective Retention Strategy: Today Interpretation of these Retention Strategies

Effective Retention Strategies
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Introduction
Human Resource departments in different organizations have the capacity to build and drive the knowledge assets within an organization. In this current dispensation, it is essential to note that the development and retention of talented employees remains a critical factor in the success of an organization. It is essential to note that keeping and retaining high performing employees remains a challenge for the growing organizations (Ananthan, & Sudheendra, 2011). However, many companies are bound to lose their employees, a factor that makes a company also lose their customers. The ever increasing pressures on corporates aimed at cutting down on costs thus resulting in layoffs and downsizing has remained a major factor that has diminished employee loyalty, the absence of job security and an increase in competition in hunting for talented workers. These factors therefore point out to the need to attract and retain talent.
Employee retention remains an essential element since when employees leave a company; they leave with an organizations intellectual property, investments, relations, with other employees and some clues about an organizations future. Through a retention strategy, organizations are in a position to provide effective communication with the aim of improving the commitment and enhancing workforce support that are essentially important in a corporate initiative (Ananthan, & Sudheendra, 2011). An effective employee retention approach is in this case is a systematic effort that is developed by an employer of an organization in an effort to retain the best employees and to ensure that the customers of an organization are satisfied, the products sales of the organization are increased, and satisfaction of the workers and an effective succession planning is articulated. This paper therefore aims at establishing an effective employee retention strategy.
Analysis of Effective Retention Strategy Today
Retention of employees as determined by several literatures ensures the long-term health and success of an organization. It is a well-known fact that the retention of a company’s best employees ensures the success of an organization in the market. According tothe Medical Laboratory Company, there is the combination of several retention strategies through an approach that ensures the provision of realistic job previews (Ananthan, & Sudheendra, 2011). In this process, the job candidates are made to understand the job they apply for thus giving the employee the broad picture of his duties and responsibilities in the job context. This approach is focused on helping the candidates understand the positions they will undertake and also
It is in this case essential to determine the fact that the retention strategy employed by TESCO primarily consists of non-financial rewards such as subsidized lunches, housing and educational grants, 70% medical aid contribution transport allowances to the non-managerial workers. For the managerial employees, the company offers benefits such as company cars, 100% medical aid contribution to the employees, subsidized lunch, fuel, education and housing grants, holiday bonuses, and a company cell phone (Idris, 2014). Additionally, the company also ensures that there is a recruitment plan in place that sponsors the students learning within tertiary institutions considering the fact that the beneficiaries of these sponsorships would one day work for this organization upon the completion of their studies. An instance of this can be seen in a student who undertakes a five year program required to work with the organization for five years before the employee gets another job in another company (Idris, 2014). Another part of the retention approach in this organization is the element of job promotions within the company, a factor that has been determined to foster a good succession plan that encourages the workers to develop a life-long career within the organization. This will also ensure that commitment and loyalty is cultivated among the employees.
Interpretation of these Retention Strategies
It is essential to determine that the labor force today is different. Supervisors are required to take responsibility of their employee’s retention since without this; they are bound to lose their good workers. Wise employers therefore should see the need of attracting and retaining good employees within a company since in the long run they will determine either the success or the failure of the organization (James, & Mathew, 2012). Supervisors therefore need to be prepared in collaborating, supporting, and nurturing their employees since the retention of employees involves being sensitive to the needs of the workers.
Retention my view is a voluntary approach by an organization aimed at creating an environment an environment which ensures the employees are engaged over a long time. According to sources, the primary aim of a retention strategy is to prevent an organization from losing its competent employees since this would result in adverse effects that would lower the productivity and profitability of an organization (James, & Mathew, 2012). However, retention approaches have turned out to be highly challenging for Human Resource practitioners and managers. One of the traditional ways that are used in managing employee retention and turnover is through a reward system. Rewards are what the employees receive for their contribution to an organization. The rewards come in the form of salaries, bonuses, promotions and incentives.
An effective reward system therefore helps in achieving an organizations objective, and ensures that appropriate approaches are developed to maintain and retain a productive workforce. In the event that employees feel they are inadequately rewarded, they are prone to leave an organization. Replacing potential employees may turn out to be costly and mostly may be a difficult task (James, & Mathew, 2012). There are several areas of management which have an impact in the retention of employees such as job satisfaction, motivation, psychological contract and reward systems. Reward systems remain the most widely used approach within strategic HR since an organization has the capacity to use this tool to enhance the levels of commitment, congruence and competence of employees.It is however essential to determine the fact that keeping talented employees may be further complicated as a result of bounded rationality. As a result of this, other employees are left unable to improve their positions within the workplace. The use of incentives by employers in setting targets may be another approach.
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An effective retention strategy ...