Retention Policy - Employee Retention

Dear Friends,
How can we retain the employees if we cannot pay them competitive salaries?
Shyam

Best talent can also be retained using the following things:
1) To start with never oversell the organization.
2)Have conducive work environment.
3)Rewards and recognition.
4)Job rotation.
5)New challenges.
6)Promotions.
7)Lot of interaction with the key employees, so that they know they are actually being valued.
8)Training and development.
9)Recreational activities, so that the employee is attached to the organization.
10)New projects
Regards,
C.Vidya

Dear Vidya,
What kind of rewards and recognitions will you suggest in such a case. And what do you mean by new challenges.
Shyam

hello friends,
I think salary is d major thing to hold a person, and the major one which has to be discussed with this is - how we can identify a good contributer,because retention is meaningless when we try to retain a person who doesnt contribute to the conpany growth. So can any one tell me the ways by which we can identify a good contributer.

Hi,
Honestly it is very difficult to retain someone who is leaving for a better / very high salary.
However we could try and sense the discomfort of the employee before it reaches a level where he decides to leave. This also helps to plan for the backfill.
Some organsiation have a process set where all team members are rated based on their probability to leave the organsation by their reporting manager.
This assessment is done by the reporting managers and sent to HR.
Based on this report the HR starts its job of interacting with the employees who have been reated as the ones most likely to leave.
It is however not always possible to meet the expectation in terms of salary but for people leaving for any other reason other than salary - at least an attempt to save them can be made in due time.
If followed religiously this method does help hold the employees back.
Regrds,
PK

Hi Shyam..

Here is some guidelines that one can apply in the Organisation to improve the retention:-

1. Show employees that you have an interest in their success

60 to 70 per cent of workers do not feel that their companies help them to develop their career. Managers of successful companies are acutely aware that even the most brilliant business model will not work without skilled individuals motivated by a culture of management concern.

2. Allow employees the room to develop their skills

Many employees find themselves trapped in a narrow job function so mission-critical that the organisation cannot afford to move them. Frustrated employees, unable to satisfy their need for growth, resign, leaving holes that disrupt the company’s workflow in the short term. The company also loses strong performers who could have filled other, more important, roles over the long term.

3. Give employees a clear idea of the long-term goals of the company

Three quarters of unhappy employees do not believe that their company knows where it is going. Companies should endeavour to change their perceptions by communicating effectively to employees the direction it wants to take. This should be followed up with behaviour that is consistent with what they have told employees!

4. Measure soft skills

Many companies say they value people and train their management team to cope with people issues. Yet these same managers are rewarded based on their technical skills and financial results. Too often, people skills are not rewarded and no measure exists to evaluate them. Employees get the message that, “people skills don’t matter” and so neither do people.

5. Fight turnover with smart training

Two principles can help companies score big retention wins through training. Firstly, keep it relevant. Some firms act as though any training is better than none. From the employees’ perspective, that is not true. If training is not relevant to their jobs they feel it is a waste of time. Secondly, use training to broaden experience. Companies too often provide training that merely reinforces old skills instead of building new ones.

6. Develop your management team

People see good bosses as the wind beneath their wings, and employees who lack confidence in their bosses will leave the organisation sooner rather than later. A key retention strategy is to weed out marginal managers. Replace them with managers who can craft a compelling game plan, communicate it effectively to their teams and deploy initiatives that are consistent with company strategy.

7. Weed out poor performers in non-management ranks

Managers often under-estimate how strongly employees resent the presence of underperformers within their work group. The productive employee often has to take on more work to compensate for the poor performance of others, and they can feel that management is either turning a blind eye to unjust practices, or does not have sufficient interest in what goes on “below decks” to notice any disparity in working practices amongst employees. When the slackers are weeded out, both morale and retention improve.

Regards,

Amit Seth.

hi
I am budding Hr from chennai The suggestion which you gave recently for retention was excellent . now i am doing my project on Training need Identification .. I will be thankful if you provide me with all details ...
thank you
janani

Hi friends,

There is one more suggestion to retain a person,which is nothing but to transfer him to the place where he wants to work,because it is very important to retain a good contributer.

somewhere in the book the seven reasons I had read,,,
While most managers are of the viewpoint that 80% of employees leave for matters regarding salary, the truth is that only 20% of employees leave their jobs for the purpose of salary whereas 80% of employees leave their jobs for reasons other than salary.
SO MY FRND HOPE YOU NOW KNOW WHERE TO CONCENTRATE,,, IF you concentrate on salary you can retain 20 people, but if you give emphasis on things other than salary like environment, appraisal, status, freedom, equality you can retain 80 people.

To retain employees when competitive salaries are not feasible, focus on offering non-monetary benefits such as flexible work arrangements, professional development opportunities, a positive work environment, recognition programs, and clear career advancement paths. Emphasizing these aspects can enhance job satisfaction and loyalty, helping to mitigate the impact of lower salaries.