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Factors that might affect retention are: compensation, promotion, company stability, working environment, employee recognition or rewards, employee empowerment, career development and harmonious relationship. All of these factors are essential in keeping your most talented workers. All employees aim for both monetary and more importantly the non-monetary benefits that the company can provide. Monetary benefits are crucial to suffice their daily living while non-monetary benefits like employee rewards/recognition are essential to emphasize their value to the company and work satisfaction.
Retention strategies should be based on an understanding of the factors that affect whether or
not employees leave or stay. For early-career employees (30 years and under) career advancement
is significant. For mid-career employees (age 31–50) the ability to manage their careers
and satisfaction from their work are important. Late-career employees (over 50) will be interested
in security. It is also the case that a younger workforce will change jobs and employers
more often than an older workforce, and workforces with a lot of part-timers are less stable
than those with predominately full-time staff. The other factors that affect retention are:
Company image;
Recruitment, selection and deployment;
Leadership – ‘employees join companies and leave managers’;
Learning opportunities;
Performance recognition and rewards.
A study by Holbeche (1998) of high flyers found that the factors that aided the retention and
motivation of high performers included providing challenge and achievement opportunities
(eg assignments), mentors, realistic self-assessment and feedback processes.
agree with a great twice answers above
The literature defines retention as continuing relation between employees and their organization.
Employee retention issues are emerging as the most critical workforce management challenges of the immediate future .Agrela, et al (2008) states the need to focus on the factors that affects retention leading to growth and success of organizations.
Providing skill recognition of personal job accomplishments is an effective retention strategy for employees at any age (Yazinski, 2009). Studies indicate fulfilling peoples need for acceptance by acknowledging individual work accomplishments prolongs employment of employees (Redington, 2007).
Since learning and development opportunities appear crucial for the retention of talented employees (Arnold, 2005; Hytter, 2007; Walker, 2001), an organization must establish a supportive learning and working climate. The concept “learning and working climate” is derived from previous research (Abrams et al., 2008 etc).
Job flexibility is vital for retaining employees of any age (Boomer Authority, 2009).Researchers describe the importance of employment flexibility such as scheduling variations that better accommodate individual work times, workloads, responsibilities, and locations around family responsibilities . Prenda & Stahl (2001) say that employees having job flexibility options report having higher levels of individual commitment, concentration, satisfaction, productivity, loyalty, and mental capacity at any age.
Studies supports the conclusion that organizations providing cost effective job flexibility options benefit from satisfying the needs of all employees, independent of age, which allows for the reallocation of expenses related to recruitment, work space changes, sick time, absenteeism, and commuting costs .Consequently, studies indicate that there is a link between cost-effective "flexibility" choices and advanced levels of job satisfaction, accuracy, productivity, recruitment, and employee retention (Boomer Authority, 2009;Cunningham, 2002; Prenda & Stahl,2001
Training is a key retention factor for employees at any age. Statistical evidence indicates job training is a critical factor for personal (behavioral) and professional (technical) development .The availability for all employees having access to training and development programs is critical in facilitating organizational growth, particularly with performance and technological improvements .
The relationship of benefits with retention is another aspect of making people stay is often investigated by researchers. Maccoby (1984) identified the job satisfaction of employees and supervisors of Bell System over a five-year period and found that the employees and supervisors were satisfied with their pay and benefits and were also motivated to work productively.
The purpose of career planning as part of an employee development program is not only to help employees feel like their employers are investing in them, but also help people manage the many aspects of their lives and deal with the fact that there is not a clear promotion track.
Employee development programs cannot exist without a culture that supports them. Any effective program must have strong support from people in senior management positions, and these people must also serve as positive role models to subordinates (Zenger, Ulrich,Smallwood, 2000). Managers and supervisors take on a new role when an organization gets into the business of employee development.
Studies have concluded that committed employees’ remains withthe organization for longer periods of time than those which are less committed.
Creating a compensation structure that supports an employee development program is a distinct challenge for companies. Many organizations claim to base pay raises on performance, but that is not actually the case. Some companies try to emphasize a team environment, but continue to reward people for individual achievement (Feldman, 2000). These inconsistencies can cause frustration and cynicism by employees. It is especially difficult when employees are not seeing significant pay raises, yet company leaders are richly rewarded (Feldman, 2000). The entire organization must buy into the culture of employee development.
Studies have indicated that effective communications improve employee identification with their agency and build openness and trust culture. Increasingly, organizations provide information on values, mission, strategies, competitive performance, and changes that may affect employees enthuse . Many companies are working to provide information that employees want and need in better way of communication, through the most credible sources (e.g., CEO and top management strategies) on a timely and consistent basis
Management theory and practice has traditionally focused on extrinsic motivators. While these are powerful motivators, by themselves they are no longer enough—intrinsic rewards are essential to employees in today’s environment (Thomas, 2000). Nowadays motivational issues are more complex because of the wealth and opportunity so many employees have enjoyed. Over the long haul, people need intrinsic rewards to keep going and to perform at their peak (Thomas, 2000).
