Retention & Motivation theory: Retention has a direct and causal relationship with employee needs and motivation.

Applying a motivation theory model, such as Maslows Hierarchy of Needs, is an effective way of identifying effective retention protocol.[2] Each of the five tiers of Maslows hierarchy of needs relates to optimal retention strategy. Since Maslows introduction of his motivation model, organizations have been employing strategies attempting to stimulate each of the five humanitarian needs described above to optimize retention rates. When applied to the organizational model, meeting the self-actualization and esteem needs of an employee tend to correlate to better retention. Physiological, safety, and social needs are important as well, however, and must be addressed to better the work environment. While implementing a retention strategy is ideal, successful satisfying all five needs of employees is not only difficult, but also expensive. That being said, managers who attempt to maximize employee need coverage tend to be more concerned with employee satisfaction.[3] Herzbergs theory: An alternative motivation theory to Maslows Hierarchy of Needs is the MotivatorHygiene (Herzbergs) theory. The theories have overlap, but the fundamental nature of each model differs. While Maslows Hierarchy implies the addition or removal of the same need stimuli will enhance or detract from the employees satisfaction, Herzbergs findings indicate that factors garnering job satisfaction are separate from factors leading to poor job satisfaction and employee turnover. Herzbergs system of needs is segmented into motivators and hygiene factors. Like Maslows Hierarchy, motivators are often unexpected bonuses that foster the desire to excel. Hygiene factors include expected conditions that if missing will create dissatisfaction. Examples of hygiene factors include bathrooms, lighting, and the appropriate tools for a given job. Employers must utilize positive reinforcement methods while maintaining expected hygiene factors to maximize employee satisfaction and minimize retention.[4] Equity Theory: Equity Theory realizes the humanitarian concern with fairness and equality. While one party may be given motivational rewards and opportunities, the individual will assess the work-reward ratio

based on similar, external positions. If the individual feels the rewards and motivators do not meet the standard, the employee will either lose motivation, request more compensation, or leave their current position in search of more favorable benefits. Because of this, firms must not only recognize internal obligations, but also attempt to equalize or outperform competition in meeting employee needs.[5]
References:

2)

http://en.wikipedia.org/wiki/Maslow%27s_hierarchy_of_needs Spector, Paul E. "Measurement of Human Service Staff Satisfaction: Development of the Job

3)

Satisfaction Survey." American Journal of Community Psychology 13.6 (1985): 693-713. Web. 12 Mar. 2011.
4)

Breaugh, James A., and Mary Starke. "Research on Employee Recruitment: So Many Studies,

So Many Remaining Questions." Journal of Management (2000): 305-434. Web. 12 Mar. 2011.
5)

Spector, Paul E. "Measurement of Human Service Staff Satisfaction: Development of the Job

Satisfaction Survey." American Journal of Community Psychology 13.6 (1985): 693-713. Web. 12 Mar. 2011.