Employee motivation and employee retention

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From early childhood people do only what they like to do. In schools, students do things whether they like or not since they are forced to do that. Same thing applied to workplace too. If employee likes what he does, he engages with the work in a satisfactory manner. But if he does not like what he does, he tries to avoid the task. (How Employee Motivation Increases Employee Retention, n.d.)

What is employee turnover and employee retention?

Employee turnover is the rotation of workers around the labour market; between firms, jobs and occupations; and between the states of employment and unemployment (M Abbasi and W.Hollman, 2000)

In other words, If an organisation is losing its talent over a period, it is known as employee turnover. Preventing employee turnover is known as employee retention.

Causes for employee turnover

      I.          Work life balance
   Long hours of work, work style or location of office can move employees to leave the existing job

    II.          Incompatibility
  Incompatibility with employee and employer

  III.          Work relationships
 Employees having problem with subordinates, managers or organisation leadership leave the organisation

  IV.          Lack of opportunities
 If employees have few opportunities to develop his or her career path, they will leave the organisation

    V.          Financial reasons
Employees find better pay and rewards offered by other organisation

 

Is employee retention important?

Human resource is the most valuable asset in an organisation. If a company lose its valuable assets, it directly impacts the company’s success and performance. In addition, if a company has higher employee turnover, it will result in the company losing their investment in training and onboarding employees. Due to higher turnover an additional workload automatically has to be borne by existing work force. Then existing staff will burnout from the excessive workload, and they will try to walk away from the organisation. It will create another wave of employee turnover. Hence employee retention is vital to a company.

Benefits of employee retention

      I.          Cost reduction
Companies are spending more money for recruiting and training every year. But it will reduce if company can reduce the employee turnover.

    II.          Enhancement of productivity
If the company managed to enhance employee retention it will enhance productivity. Main reason for that is new employees take time to develop skills but existing employees already develop required skills hence automatically it will enhance the productivity.

  III.          Improved employee morale
Employee retention will boost the morale of existing employees

  IV.          Better customer service
Long term employees have a better skill set and connection with customers. Hence, they can provide better service than newcomers.

    V.          Stronger corporate culture
With employee retention, strong corporate culture will develop based on employees’ traits and interactions.

(Holiday, 2021)


Role of motivation in employee retention

Employee motivation plays a crucial role in the success of employees and the organisation, and it is the glue that enhances the bond between employee and the organisation. Hence organisations must motivate their employees continuously.

In the early days remuneration was the primary method used to motivate employees. At present, employees seek other qualities from their employers. They are

      I.          Challenging Work

    II.          Work that is meaningful

  III.          Training and development

  IV.          Work life balance

  V       Supportive management

(Employee Retention - Role of Motivation, n.d.)

These factors help to boost day to day motivation of employee and built stronger sense in employees. Motivated and satisfied employee will continue to retain in organisation in the long term.

 

References

Cloutier, O., Felusiak, L., Hill, C. and Pemberton-Jones, E.J., 2015. The importance of developing strategies for employee retention. Journal of Leadership, Accountability & Ethics, 12(2).

Hee, O.C. and Rhung, L.X., 2019. Motivation and employee retention among millennials in Malaysia. International Journal of Academic Research in Business and Social Sciences, 9(2), pp.876-884.

Holiday, M., 2021. How to Keep Top Talent. [online] Oracle NetSuite. Available at: <https://www.netsuite.com/portal/resource/articles/human-resources/employee-retention.shtml?mc24943=v2> [Accessed 2 May 2022].

Managementstudyguide.com. n.d. Role of Motivation in Employee Retention. [online] Available at: <https://www.managementstudyguide.com/motivation-for-employee-retention.htm> [Accessed 2 May 2022].

Ramlall, S., 2004. A review of employee motivation theories and their implications for employee retention within organizations. Journal of American academy of business, 5(1/2), pp.52-63.

SHRM. 2022. Managing for Employee Retention. [online] Available at: <https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/managingforemployeeretention.aspx> [Accessed 2 May 2022].

Successories.com. n.d. How Employee Motivation Increases Employee Retention. [online] Available at: <https://www.successories.com/articles/importantance-of-employee-motivation-to-retention> [Accessed 2 May 2022].

Sandhya, K. and Kumar, D.P., 2011. Employee retention by motivation. Indian Journal of science and technology, 4(12), pp.1778-1782.

Shah, M. and Asad, M., 2018. Effect of motivation on employee retention: Mediating role of perceived organizational support. European Online Journal of Natural and Social Sciences, 7(2), pp.pp-511.

Tutorialspoint.com. n.d. Employee Retention - Role of Motivation. [online] Available at: <https://www.tutorialspoint.com/employee_retention/employee_retention_role_of_motivation.htm> [Accessed 2 May 2022].

Comments

  1. GaminiHemachandraMay 3, 2022 at 10:43 AM

    Yes Kalanka. Further, Employees play a critical role in an organization's success or failure. Motivation can be analyzed through two factors: financial reward and non-financial reward. Only financial rewards are not enough to keep employees happy in their jobs. Both intrinsic and extrinsic motivation are important in retaining employees. Furthermore, intrinsic and extrinsic motivation play an important role in ensuring that employees are valued by the organization.
    Employee retention is important for achieving organizational goals in today's competitive work environment. Employee retention is influenced by both intrinsic and extrinsic motivation, and perceived organizational support mediates the relationship between extrinsic, intrinsic, and employee retention (Shah and Asad, 2018)
    Reference; Shah, M. and Asad, M., 2018. Effect of motivation on employee retention: Mediating role of perceived organizational support. European Online Journal of Natural and Social Sciences, 7(2), pp.pp-511.

    ReplyDelete

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