Relationship between Human Resources Practices & Employee Retention

Relationship between Human Resources Practices & Employee Retention

Human resource management practices are essential for Organization’s performance, organizations design and implement human resource policies and practices to achieve their goals therefore it is important for organizations to manage their employees’ performance strategically. In order to retain the best talents, strategies are designed to satisfy employees’ needs, as satisfied employees are more productive and loyal to their organizations. To do so, organizations need to produce high morale and satisfied employees who will perform and enhance productivity, which subsequently will lead towards higher sales and satisfied customers. To attract and retain employees, organizations need novel reward systems that satisfy their employees, employee rewards is an important component in exchange of employee contribution, it plays a significant role to attract, motivate, satisfy, retain and maintain commitment among employees in any organization while ensuring a high standard of performance and workforce stability.
Organizations are facing the challenge of employee retention due to increased competition in the market that is why retaining competent employee is more important than hiring. Organizations are always searching for talented employees and spent time and money on their employees for future return aspects.  When an employee departs from an organization, he/she brings out with him all the information about the company, clients, projects and history.
In addition, there is a cost that is paid when hiring a new employee, it starts with the recruitment process & its logistics, and then the cost of the employee himself when being hired that is represented in his salary, benefits, allowances, training. So it is crucial to choose the potential employees as they will be a gain to the company’s performance and also the company will then not lose the costs of this employee. (Haider et al. 2015). Retention of valuable employees became an extremely important strategy for human resources managers and organizational leaders, different HR bundles should be promoted & enhanced to increase the retention level.
The employer has to consider combination of different factors when he wants to keep his potential people for a longer period of time. (Anita & Begum 2016). It was mentioned by Rose & K.G, (2016) that sufficient human resources programs lead to employee job contentment which in return increase his obligation towards the corporation, and hence affecting retaining of people.
When it comes to human personnel, it is not a simple issue to deal with, on the contrary, it is complicated one, as these personnel are the essence of the organizations who can build up the organization or can make it lose. Though retaining the skilled employees will help the corporations achieve their potential prosperity. Nowadays employee retention is considered as a challenge to many corporations as satisfying people and keeping them for longer period of a time is not a simple mission. (Mwasaru & Kingi, 2015). Besides Employee retention help the employers to fulfil their aims and targets (Inabinett & Ballaro, 2014).
Employees are considered the heart of the corporations, losing the skilled people has a high cost in which the employer has to bear it, so employers have to choose the beneficial retention strategies to keep those skilled people and this is considered as a huge threat to them, since a retention strategy for one employee might be suitable for him but not suitable to another employee, so here communication plays a big role, as the employer has to know employees’ needs so that he can offer him the appropriate retention strategy .the employer has to let the employees feel that they are their assets not their costs , and this will be reflected in the practices in which the organizations are implementing . (James & Mathew, 2012)
In order for corporations to retain their employees, they have to rely on human strategies that increase people’s commitment and loyalty, so here commutation plays a big role in way that organizations have to clearly notify their employees with their exact roles and that how these roles affect the company’s objectives and goals . Organizations should always keep motivating their employees , providing them with their training needs , coaching & guiding them with respect to their accomplishment .Also to reward them with an appropriate remuneration  packages so that to increase their satisfaction . (Hassan, 2016)
Both Cloutier et al (2015) and Gadekar (2013) agreed that that the cost of employee retention is less than the cost of hiring the employee and its logistics, so retention can be viewed as a mean to decrease costs. Retaining skilled employees affects the corporation net earnings, as at the end it is reflected in a cost in which the company pays, either recruiting the employee has a cost which is the hiring cost and its logistics followed by the cost of the employee development, and the cost the company will pay if the employee leaves the company. (Cloutier et al. 2015)
Organizations should efficiently utilize its people, they have to correspond between the employees’ needs and the company’s needs, so that there is a mutual benefit between them. Companies should deal with employee retention as a developing tool that will give her a competitive advantage against competitors, as competition is getting fiercer, keeping and retaining their potential employees will keep them aside from this competition, employee retention has a return to the employer which is achieving his potential growth. (Cloutier et al. 2015)
Each human resource practice have a different effect on employee retention , they do not have similar effects on employee retention ,also if any human resources practiced did not work with employees , this does not mean that he will quit the organization. (Slavianska, 2012).Organizations can increase the strategies that increase employee satisfaction and his self-esteem such as increasing one to one meetings between employee and his manager, that give him feedback about his performance, keeping always the relation between the manager and the employee close, appreciating efforts done form employee’s sides such strategies affect employee loyalty and help in retaining him. (Ratna & Chawla, 2012).
Retention plans should be a component of all company’s policies , as they are embedded in the company’s vision and mission, Actually employee retention starts with the recruitment process and how to choose the right person for the job , then it continues with the day the employee  on board in the company, how the company contact the employee  in order to the employee to be part of the company’s vision and start adapting with its values, and showing the employee how his role affect the company’s goals (Cloutier et al. 2015).
Remuneration schemes are key factors to retain employees as there is a strong association between them, as satisfying remuneration schemes affect the employee’s opinion if he wants to stay or leave the organization, so the employer should review such beneficial rewarding remuneration schemes. (Michael et al. 2016). In addition Employee coaching and guidance, and satisfying his training needs increase employee engagement and helps in employee retention. (Cloutier et al. 2015)
To conclude, in order to achieve efficient employee retention policies, a bundle mix of human resources practices should be implemented, as a practice may be suitable to one person but not suitable to the other one, in addition each person has his own different circumstances. (Haider et al. 2015). organizations should mix up with these different human resources practices, starting with the suitable remuneration packages, Followed by the employee training and development through coaching and feedback, achieving work life balance through providing with flex working hours, flex places, enhancing working environment through transparent communication so that the employee feels comfortable at work and finally organizational culture is very important factor that affects employee behavior and attitude, both values of the employee and the company should be aligned. (Al-Emadi, et al. 2015).
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  • Al-Emadi, A., & Schwabenland , C., & Wei, Q. (2015). The vital role of employee retention in human resources management. The IUP Journal of Organizational Behavior, XIV(3), 7-22.
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  • Hassan, R. (2016).The role of human capital management in enhancing engagement and retention among top talent organization. Journal of Emerging Economies and Islamic Research, 4(special issue), 54-67.
  • Inabinett, J., & Ballaro, J. (2014).Developing an organization by predicting employee retention by matching corporate culture with employee’s values. Organizational Development Journal, 32(1), 55-74.
  • James, L., & Mathew, L. (2012).Employee retention strategies .Journal of Indian management, 9(3), 79-87.
  • Michael, B., & Prince,A., & Chacko, A. (2016).Impact of compensation package on employee retention . International journal of research in commerce and management, 7(10), 36-40.
  • Mwasaru, H., & Kingi, W. (2015).Effects of employee retention strategies on organizational competitive advantage in the hotel industry in Mombasa country. International journal of research in commerce and management, 6(3), 1-4.
  • Ratna, R., & Chawla, S. (2012).Key factors in retention and retention strategies. Global management review, 6(3), 35-46.
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  • Slavianska , V. (2012). Measuring the impact of human resource management practices on employee turnover. Problems of management in the 21st century, 4, 63-73.



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