Employee’s turnover is the rate at which an employer hires and loses the employees within a working period. Employee’s turnover is very significant indicator for the production companies, where skills are a basic requirement (Dubinsky, 2004.pg.15). Naturally, good employees should be retained by the company irrespectively to the cost of retaining them. A good employee adds a portion of value to the company, and all product and service companies should strive to retain productive employees within a workplace. Companies with high employees’ turnover are said to have employees with small tenure hence unable to meet its goals and objectives in areas where skills is a basic need. Although experienced employees are expensive to retain; production or service companies should strive to low level employee turnover that will help them to achieve their goals and objectives in their production more efficiently. Companies with low employee’s turnover can be said to be companies which have to set a good structure which favors employees hence motivating them to stay for lengthy periods (Dubinsky, 2004.pg.15).
Motivation is the only way to retain experienced employees. Companies are operating in a free market today, where competition is an element that encourages free mobility of labor. This leads to improved mobility from work places that do not cater to employee welfare and into places where staff motivation is of a paramount importance. Those companies with high employees’ turnover have been meeting big budget expenses while orienting and nurturing new employees who only get job exposure and later join the best motivating organization in the industry (Dubinsky, 2004.pg.65). Beside motivation, there are various elements that have an impact in the increase or decrease of the employee’s turnover. To decrease employees’ turnover, companies should strive to motivate employees by providing them with fair incentives, good working environment and positive aspiration.
Various reports on the employee’s turnover have been prepared by various scholars. The main objective of the report is to analyze reasons of employee’s retention that is a major task for any organization. On the same hand, organization attitude to the employees has been found to have a critical impact towards employees’ turnover. Poor consideration, working environment and career growth threats have been found to be the major reasons for high employee turnovers occurrence. Employees tend to be restless, and they always tend to look for new and better employers who will be willing and able to meet employee’s expectations. Employers are found to be victims of this development where they lose experienced and well performing employees to other companies and incur the costs of recruiting and training new workers.
Strategies to retain Employees
There are three steps developed for an organization to reduce the employee’s turnover rate. First step is hiring the right people and developing their skills continuously. Second step for most companies with low turnover rates is creating employee oriented environment. The final step lies in development of an overall strategic compensation package. Using these three steps, the employer-employees relationship can be enhanced hence a decrease of the employee’s turnover should be expected (Harris, 1999.pg.45). The employees will also find a reason to continue being stakeholders in the organization as long as their interests are considered and their work is rewarded.
Hire the right people and continue to develop their careers
Hiring the right people is expensive and tricky step for any particular organization due to the cloudy employment sector with too many job seekers. After employing the right people, organization receives an ample time to relate the employees to a company, so that they could become aware of company’s expectations and goals. A good relationship between the employer and the employees comes from good results (Harris, 1999.pg.45). If employees are able to meet the company’s expectations then it will be the duty of the employer to reciprocate. The core objective of a business is to make a profit. If an employee is willing and able to help the company meeting its goal, then the company will have a good chance of embracing him or her by paying him/her a good remuneration for his/her services. If the company did not manage to make a right choice while selecting employees, then it will be difficult to embrace the employees holding the fact that the employees will not add a value to the company.
Be employee oriented
After selecting right employees, a company should adopt the best strategy to retain them. This can only be done if the company decide to treat all employees like stakeholders of the organization and include them to the decision making process among other key development in the organization. This will bring a sense of a responsibility for a company to a regular worker. This also will make them feel appreciated by the employer hence been motivated to work in the organization (Buchanan, 2006.pg. 23). The company should also make sure that the employees’ working environment is productive and secure. Insuring and involving all employees in a career development programs will motivate them to stay on a workplace and make them abandon any intentions of seeking employment anywhere else. In addition, company must identify other possible factors that are likely to improve employee motivation and create a sense of well being and belonging to this organization.
Develop an overall strategic compensation package
Good and realistic remuneration is one of the key motivating strategies that a company can use to retain its employees for a long time. The basic reason of why people work is to get a fair pay for their effort. Most of employees that move from one organization to other do so because they always want to be paid fairly. If a company considers this critical area, the employment turnover in a company will reduce hence reducing skills outflow from a company. Irrespective of having a good working environment among others in an organization, fair payment package will help the company to retain the most important employees (Buchanan, 2006.pg. 22). Payment should therefore be given according to individual’s experience and capability hence making it possible for a company to retain the most experienced and potential workers in an organization.
Using the above strategies makes it easier for a company to achieve its goals and objectives. Employee’s retention is a key strategy to any organization that value skills. Those employees with experience and strong qualifications are highly valuable to the organization. To reduce employees turnover, the organization must be willing and able to create a good relationship between management and staff to ensure they do everything for a reason of accommodation the needs and wants of their staff members (Buchanan, 2006.pg. 23).
Conclusions and Recommendation
Employee’s turnover has a big impact on the company growth holding the fact that some of the employees are very important to the company due to the set of skills that they are representing. Best employees in an industry where competition is high must be treated with care to avoid their outflow. Mobility of employee can leave a company in a vulnerable position in the market and hamper its ability to meet objectives in a competitive manner (Branham, 2005.pg. 7). To avoid this, the organization should always consider fair incentive strategies among other as a way of preventing employee turnover. Identifying employees as key stakeholders the harmony, cohesion and high performance can be achieved within the work place and employee turnover can be stopped before it can erode a company’s competitiveness.