EMPLOYEE RETENTION STRATEGIES

Introduction:
Over two-thirds (70%) of HR managers state that employee retention is a primary business
concern while !0% of HR managers report an increase in wor"er turnover during the past eighteen
months# $hough HR managers currently find employee retention a business challenge long-term
demographic changes such as the retiring %aby %oomer population have the potential to aggravate this
issue#
&ccording to the %ureau of 'abor (tatistics (%'() the )#(# wor"force grew at an annual
rate of *#+% and added 7, million wor"ers between *,-0 and .000# $his strong growth enabled )#(#
business to grow without the constraints of a limited wor"force# /et structural changes in the )#(#
population could fundamentally alter this economic advantage# &ccording to the %'( the annual growth
rate in the native wor"force of the )nited (tates is e0pected to slow to #0+% between .000 and .0-0#
1uch of this change is due to the %aby %oomer generations2 aging into retirement#
&s a result of the %oomer retirement one possible scenario for the )#(# is an e0panding
economy constrained by a slower growing wor"force# $his could produce e0cess demand for talented
wor"ers and significantly drive up recruiting costs forcing organi3ations to rethin" how they grow and
maintain their wor"forces#
Employee Retention Strategies Pilosopy
)ses only research-based theory-supported approaches to improving employee engagement#
&voided are gimmic"s such as employee of the month suggestion bo0es pri3es or other
4carrots#5 6hile commonly used these short-term fi0es fail to produce genuine employee loyalty
(more than +0 years2 of research tells us so7)#
8mploys an easy-to-understand systems approach to ensure the root causes of turnover are
addressed and the potential for lasting change unleashed#
9ustomi3es all activities to your organi3ation2s uni:ue history current practices and strategic
ob;ectives# &lso considered are challenges uni:ue to your industry sector competitive
mar"etplace issues and talent shortages#
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<nvolves those responsible for implementing change in actually creating the change ensuring
input and improved shared understanding and support of all initiatives#
<ntegrates hands-on action-oriented approaches that enable organi3ations to move forward
:uic"ly and effectively
Recogni3es the research-proven role of no-cost strategies in developing the 4glue5 that builds
employee loyalty and commitment#
%rings to your organi3ation leading-edge organi3ation-development best practices to effectively
and :uic"ly build a 8mployee retention-rich culture#
E!!ecti"eness o! Employee retention Strategies
80it interviews (ineffective)
(urveys of retained employees (un"nown)
8mployee retention rate bench-mar"ing (promising)
(urvey feedbac" (effective)
=ob enrichment (effective)
Realistic ;ob previews (effective)
80pectation-lowering training (promising)
O#$ecti"es
$o understand employees opinions
$o understand the concept reason and outcome of attrition
$o understand the cost of attrition and saving because of 8mployee retention
$o understand employee retention-concepts and the ways to retain the top performers
$o envision their own employee retention strategy (appropriate to their organi3ational setting)
$o understand the role of managers in retaining top performers
%uild a high 8mployee retention wor"force that reduces employee turnover
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Help people reach greater levels of productivity leading to higher ;ob satisfaction
<mprove employee motivation
$ransform the entire wor"force into a high-8mployee retention culture-saving
organi3ations countless thousands of dollars
<mplement advice focusing on industries including healthcare manufacturing service
high tech and professional firms
Approaces to Retaining Sta!!
(taff resigns for many different reasons# (ometimes it is the attraction of a new ;ob
which 4pulls5 them> on other occasions staff is 4pushed5 due to dissatisfaction in their present role to see"
alternative employment# (ometimes it is a mi0ture of both 4pull and push5 factors# Research from the
9hartered <nstitute of ?ersonnel and @evelopment (9<?@) shows that it is relatively rare for staff to leave
;obs in which they are happy even when offered a higher salary elsewhere# Organi3ations must therefore
wor" to minimi3e the 4push5 factors# $his can be done by ensuring that staff feelsA -
* B they and their contribution are valued
. B their personal development needs are met
C B they are committed to the organi3ation2s vision and strategic aims
! B they are involved in the way the organi3ation and their team functions
- B there is good leadership within the organi3ation
+ B they have a good wor"-life balance
7 B they receive appropriate pay and conditions
D B they are motivated and their morale is high
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Team Employee retention Model
The Team Employee retention Model
%ommitment: 8mployee retention leaders ma"e commitments and "eep commitments# %y doing so they
inspire their team members to do li"ewise# (ome leaders apply a distinct pattern of commitment of E<
move then you move then < moveE to help teach commitment and follow-through#
Strengten Relationsips: Frounded in the "nowledge that they are in the relationship business
8mployee retention leaders place a premium on relationships# %y see"ing and applying the s"ills that
strengthen relationships they build their foundations for growth employee retention and long-term
profits#
Moti"ation: 8mployee retention leaders have mastered motivation-how to become and remain motivated
and how to motivate those around them toward action# 1otivation to succeed includesmotivation to learn
share build and retain#
&no'ledge ( S)ills: Gnowledge and s"ills are the tools in the 8mployee retention leaderHs toolbo0# $he
"nowledge and s"ill base developed by a 8mployee retention leader includes business-building tools such
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as prospecting presenting closing and developing> interpersonal s"ills such as listening and
empathi3ing> product "nowledge and tools> compensation plan "nowledge and presentation s"ills> and a
host of behavioral and motivational tools and s"ills# $hey are constantly learning drawing "nowledge and
s"ills from the best practices of 8mployee retention leaders and sharing with their teammembers#
Accounta#ility: &ccountability is the thread that binds performance and behaviors to progress and
success# 8mployee retention leaders hold themselves and their teams accountable for the actions and
results that produce success#
Less E*pensi"e o! Employee Retention Programs
<s your crew getting ready
$o abandon shipIII
@onHt let the good ones get away7


Employee retention Programs are Less Expensive
Than Recruitment Programs
*) So'ing appreciation and recognition !or a $o# 'ell done
?ersonali3ed than"-you notes from supervisors
9ongratulatory notes sent home to spousesJfamilies
?ersonali3ed voicemailsJmessages from management team e0pressing than"s for a ;ob well done
?eriodic day(s) off to recogni3e good performance
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(pot rewards (e#g# gift certificates for completion of large pro;ects)
.) Recogni+ing personal,!amily milestones
6edding gifts
%aby gifts
9ollege survival pac"ages for college-age children
Fet well cardsJflowers
%irthday cards gifts or celebrations
C) Pro"iding "oluntary #ene!its: programs tat can #e set up 'it a payroll deduction- no cost to
employer oter tan administering te program
&uto and home insurance plans
'egal insurance
'ong-term care insurance
?et insurance
$ravel insurance
@iscount vision plans
@isability programs
(ection -., (college savings plans)
!) Pro"iding per)s . arrange !or discounts troug clients or local mercants
@iscounts for museumsJlocal attractions
Retail store discounts
9omputer purchase discounts
-) Pro"iding 'or)place con"eniences
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@irect @eposit
On-site &$1
On-site dry cleaning pic"up
&ssistance with ta0 preparation
&ssistance with financial planning
?ar"ing spots for e0pectant moms
(hipping services for personal items K using firm )?(JLed80 on-site pic"up (cost paid by
employee)
?arenting guide- tips on helping new parents successfully return from a leave of absence bac" to
the wor" environment#
'actation rooms
9asual dress policies
+) /a"ing !un at 'or)
Recogni3e birthdaysJanniversariesJretirementsJpromotions
8nd of engagementJta0 season parties
Holiday parties and holiday gift certificates
Opening day baseball parties
Halloween parties
?icnics
Folf outings
&rrange for the good humor truc" to stop by the office on Lridays during the summer
7) Ta* Season Stress Relie"ers
46ear your ugly tie to wor"5 day
46ear your slippers to wor"5 day
Head and nec" massages
Handwriting analysis
1iniature golf in office
?artner-prepared brea"fasts
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<ce cream $hursdays
(tarbuc"s coffee brea"s
1il" and coo"ies afternoon brea"
(t# ?atric"2s @ay brea"fast
D) Supporting employees troug times o! personal crisis
?ersonal loans during emergencies
9hildcare and eldercare resource and referral services
8mployee &ssistance ?rograms K subsidi3ing referrals to counseling services (e#g# paying for
first - visits)
8mergency bac"-up childcare services (when usual arrangements fail> paid by employee or
employer) 1edium 9ost
,) So'ing appreciation and recognition !or a $o# 'ell done
%onuses for passing firm-sponsored certifications (9?& 80am %M& 9<$? ?L( etc#)
*0) Supporting !amily needs troug #ene!it programs and 'or),li!e e!!ecti"eness
&doption benefits
Lle0ible benefits
N @ependent care assistance (childcare and eldercare services)
N 1edical care reimbursement
**) Pro"iding 'or)place con"eniences
On-site wor"-out e:uipmentJathletic membership reimbursement program
On-site (aturday day care (during annual reportJta0 season)
*.) Encouraging pro!essional training and de"elopment and,or personal gro't opportunities
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(abbatical programs
4?rofessional @evelopment5 accounts K setting aside a specific amount of dollars an employee
can use for various forms of professional development that aren2t normally covered by traditional
9?8 (e#g# professional spea"ing coach)
<ndividuali3ed career guidance and development
8mployee retention Fuide
Long0Term Strategies:
*) Promoting 1or),Li!e E!!ecti"eness . understands and recogni+es tat employees are
indi"iduals 'it outside interests and !amily needs
@evelop Lle0ible (chedules
N $elecommuting
N ?art-time schedules
N =ob sharing
N 80tended leaves of absence
9overage for 9?8 O license renewal during the leave
N (upport for partnership opportunities on a reduced schedule
@evelop (upport (ervices
N On-site day care K year-round
.) %reating a management style and culture tat so's understanding o! employee needs
'isten well and show interest in ideas
8mbrace new ideas and reward ris"-ta"ing
(how support for personal initiative
?romote creativity
C) Encouraging pro!essional training and de"elopment and,or personal gro't opportunities
9reate mentoring programs
9reate ongoing performance feedbac" programs
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!) Ensure eac and e"ery sta!! mem#er is e2uipped 'it te necessary tools to acie"e teir
pro!essional goals
&fford employees the ability to attend training whenever the need arises
Optimi3e staff interests and talents
&dvanced degree opportunities K paying for certain 1asters degree programs
?rovide vocational counseling
(upport educational leaves of absences
Offer individuali3ed career guidance and development
-) %reating an en"ironment o! trust . communication is a t'o 'ay process- input is sougt and
"alued
9reate suggestion committees
?rovide a problem resolution policy
9reate an open door communication policy
9reate regular communications with updates on firm goals and activities
N 1anagement communications
N <ntranet that provides access to information .!J7 from any computer with <nternet access
N Pewsletters and updates
+) /iring te rigt people !rom te outset
1a"e sure all new hires 4fit5 with the culture of your organi3ation K assess the candidate2s
personality and leadership characteristics as compared to the culture of the hiring organi3ation#
?rovide employees with referral bonus for successful hires K current employees are your best
resources for networ"ing
@evelop and train managers on good interviewing and management techni:ues
&ccelerate successful on-boarding and assimilation
@evelop an internship program to recruit the right college graduates
EMPLOYEE RETENTION STRATEGIES IN N3%L:
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In the present globalized economy, attrition is one of the greatest threats to all inds
of organizations including !"#L$ %ou can counter the threat and save your company by mastering the
techni&ues to effective Employee retention of employees and help save their profitability by retaining their
ey employees$ ES
Introduction
9ompanies are becoming acutely aware of the fact that nowadays employees are :uitting
their ;obs more often than was the case earlier# $he failure of an employee to stay with an organi3ation
can damage the company in many ways#
&ttrition as a phenomenon has many long-term implications for the organi3ation and
cannot be translated only to the :uitting of employees# $here are many direct and indirect costs that occur
on account of &ttrition and thus it poses a severe threat to the effective functioning of an organi3ation#
1ost HR departments are designing more programs to help employees become comfortable so that they
can be retained for a long time#
8ven such strong companies as H9' 9omnet 8merson Petwor" ?ower &ircom .!J7
9ustomer <nfinite 9omputer %lue (tar <nfo$ech 'O$ etc# are facing high 'ttrition rate and Employee
retention is high on their priorities# $he cost of going through the recruitment process is duplicated and
additional cost in terms of training and orientation of a new inductee ta"es cost to roofs#
$here is nothing uncommon about it# 6hen ;ob mar"et improves it leads to a high
turnover rate# %ut this alone cannot account for the high attrition figures that loom in front of us today# (o
what is needed is a thorough understanding of the factors that actually ma"e the employee thin" of
leaving in the first place# $a"e this seriously> Attrition is not a factor of compensation package alone#
O#$ecti"e o! Employee retention:
$o understand employees opinions
$o understand the concept reason and outcome of attrition
$o understand the cost of attrition and saving because of 8mployee retention
$o understand employee employee retention-concepts and the ways to retain
the top performers
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$o envision their own 8mployee retention strategy (appropriate to their
organi3ational setting)
$o understand the role of managers in retaining top performers
Metodology o! Sur"ey
(tructured :uestionnaire
?ersonal meetings with employee
Quantitative data and :ualitative inputs received
Employee retention: $he $hreats
Opportunities overseas for significantly compensation
1igration opportunities overseas
Opportunities in start ups with high growth possibilities
8ntrepreneurial opportunities
Employee retention Measures E*plored
&ddress compensation aggressively
)se differed 9ompensation-8mployee retention bonuses lin"ed to tenure J pro;ect completion
&sset ac:uisition schemes especially housing
High level of employee satisfaction in wor"
Employee retention Measures - 9reating a ?ool of (taff
(etting up of own training 9entre for employees
%etter 8mployee retention of staff from own training schools#
&ey Employee retention Strategy
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9ompensation mainly salaries and incentives
6or" 8nvironment
=ob satisfaction
8mployee2s participation
Quality of =ob
%ompensation
(alaries
<ncentives
&ppraisals
&llowances
1or) En"ironment
9reating a 4community5 J campus - li"e atmosphere
o Recreation facilities
o Fyms
o 8#g#A <nfosys (atyam $9(#
Lle0ible wor" timings
$elecommuting
9reating a strong emotional bond
o 9ulture
o 1entors
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o Role of pro;ect managers
8mployee referrals as a recruitment strategy and to create a 4cohesive team5
80cellent physical wor" environment including regular upgrading of systems
?roviding several facilities for employees to better :uality of life and reduce time spent on
mundane personal chores for eg# transport to wor" assistance with running errands li"e paying
bills getting tic"ets personal travel boo"ing etc#
8mployees share fully J partly in costs of these services provided by third parties#
Employee Retention Strategies
&cceptance that attrition is a fact of the industry#
@efining whom to retain -- loc"ing in by 8(O?#
@efining 4hot5 s"ills R 8mployee retention bonuses or (igning On bonuses for these s"ills#
1at do start ups o!!er4
9hance for e0traordinary growth and wealth creation
Lun of creation
1anaging threats from start ups
&ssessing the employees2 threshold of ris" ta"ing
1a"e entrepreneurs within the company - creating a company within company
&llow employees to be 4partners5 from outside by outsourcing
1at Retains People
4L)P5 ?lace to wor"
9ompensation
9ulture
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=ob (atisfaction
'earning Opportunities
<ndustry Frowth
9ompany <mage
6or" 8nvironment
?ersonal Frowth
E*pectation !rom Management
9ompensation increases
80citement on the ;ob
'earning opportunities
%uilding a sense of pride in the organi3ation
%ontrolling Attrition
<n an ideal world employees wor" hard love their ;ob worship their wor"place feel li"e a
family and would never leave# %ut letHs loo" at the real world where employees :uit at the drop of a hat#
How can attrition are controlled#
/R5s role and strategies:
&s the struggle for reducing employee attrition rates is intensifying recruiters are putting
renewed efforts in identifying talent which is committed and productive# However while
everyone is competing for talent in e0pertsH opinion a hiring spree can be a blunder sometimes#
(tringent recruitment process could help reduce attrition to a certain e0tent#
&n internal referral mechanism is also very useful in reducing attrition rates in
companies# & thorough analysis of a candidateHs bac"ground or behavior pattern adaptability or
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li"ing would help the organi3ation with good resource pool and less attrition rates# 41en 'e
recruit an outstation candidate- 'e need to )eep in mind tat tere could #e an inclination
!or tat candidate to mo"e to a place closer to is or er nati"e place6 Suc !acts sould #e
)ept in mind 'ile ma)ing a decision-5 says &braham#
&n efficient HR focuses on creating a good wor" culture and wor" out different strategies in line with
organi3ational philosophy# &ccording to e0perts HR managers must use the combination of growth
learning opportunity and pay attention to employeesH personal needs and participation# $he needs of the
employees should be regularly gauged through open communication polls and feedbac" mechanisms to
maintain consistency in performance and high motivation levels#
Reduce te Attrition:
Old Tecnologies:
High 9ash
High 8mployee retention bonus
6or" environment
'earning opportunities on new technologies
Ne' Tecnologies:
9reating talent in organi3ation
<dentify future leaders in organi3ation
High 8mployee retention performances
8ncouraging corporate culture
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