Retaining Valuable Employees is Becoming Increasingly Difficult! Does Your Organization Have a Formal Employee Retention Program?

Introduction

Consider this. Only a few months remain before school national examinations. Sitting in your office one morning, thinking that everything in the school you are heading is just fine, there is a knock on the door.

‘Come in!’ you bellow. The door opens slowly, followed by the appearance of the best mathematics teacher you have in the school. The teacher walks over to your desk and puts an envelope on it.

"Good morning, sir.’’ He greets you respectfully.

‘’Morning!’’ You respond enthusiastically and add ‘’What can I do for you?’’

''I've come to inform you that I have decided to resign from my job!" He speaks.

You are shocked. Anger starts to rise in you, and you start to stand up from your desk. The math teacher turns around and starts to leave.

"Wait a minute!"

You raise your voice.

"There are others who are also thinking of leaving!"

He answers you as he leaves through the door. The door closes. Sudden weakness washes over you. You drop back onto your chair like gravity has completely taken over you are body.

What has happened? Who are the others who want to leave? Now how will the students prepare effectively for the exams? Fear starts gripping you.

This is just an example of one of the challenges employers face worldwide. Employers are facing many challenges. These include the increasing difficulty of finding employees with sufficient skills and diligence; a new generation of employees (young people) who do not agree with the work ethic of the previous generation; and the continuous decrease in the number of experienced employees due to various reasons including retirement.

The difficulty of finding skilled and committed employees who stay has become a big crisis in many industries, just about everywhere in the world. For many businesses, the biggest challenge faced by employers is losing key employees who often switch to competitors.

The New Generation of Employees

This generation consists of young people graduating from various colleges. Taking Tanzania as an example, we can say this generation consist of those born from the 1980s onwards. It is a generation brought up in the era of the free market and culture of instant gratification. A culture where individualism is the main pillar and accumulation of wealth is one of the main goals regardless of the means to attain that wealth. In this environment, young people of this new generation want 'immediate satisfaction' and they look at jobs through that lens. Studies done in many parts of the world show that on average this generation stays in a job for only 18 months, a situation that has given employers a hard time!

Costs of Employee Turnover

Every year employers in many parts of the world spend billions of dollars to fill the gaps left by employees who leave. Many take employee turnover for granted and have no plans to stop it. Only a few employers consider the financial losses they incur by losing employees. In the end it can cost a company millions of dollars to replace a single skilled employee who leaves. Despite this fact, many organizations do not have formal employee retention programs.

It is clear that a certain amount of employee turnover is inevitable, but with a little effort turnover rate can be reduced significantly. Money and benefits are important but many studies show that a large group of employees leave their jobs for other reasons.

Developing and implementing effective employee retention strategies can help organizations minimize costs associated with employee turnover. Losing skilled workers can be costly, so retaining valued employees should be a priority. However, many businesses do not have formal retention programs in place. Some steps organizations can take to retain valuable employees include the following:

Hire the Right Fit

Hiring employees that have the right skills, experience, and work ethic from the start helps retention (Cisco, n.d.). Avoid hiring people who do not meet the organization's standards. Yahoo advises it is better to leave a position vacant than hire the wrong person (Cisco, n.d.). Top companies make a focused effort to find the people they need, regardless of present openings.

Improve Orientation Programs

Many new employees leave within 90 days due to poor onboarding (Cisco, n.d.). Early acclimation to the work environment helps retention; aim to make new hires feel at home within days of being hired (Cisco, n.d.).

Implement Flexible Work Policies

Flexible work arrangements that accommodate employees' personal needs improve retention (Cisco, n.d.). Policies like flexible schedules, remote work options, and time off for family needs show employees their life demands are valued.

Remove Ineffective Employees

Good employees do not like working with unproductive and problematic coworkers. Removing ineffective employees improves morale and retention (Cisco, n.d.).

Invest in People Management Skills

Employees want to feel valued and appreciated, so leadership people skills are critical for retention (Cisco, n.d.). Activities like one-on-one meetings, listening to employees, and personalized development plans build trust and connection.

Provide Growth Opportunities

Employees are more likely to stay in jobs where they can learn and progress (Linkage, 2002). Organizations should provide training, more challenging work, and opportunities for career advancement.

Implement an Alumni Program

Reconnecting with former skilled employees can motivate them to return (Cisco, n.d.). Maintaining contact with valuable alumni and showing them that they are wanted can yield highly valuable referrals and potential hires.

Survey Employees

Regularly surveying employees helps identify issues impacting retention early (Cisco, n.d.). Surveys provide insights into employee needs, concerns, and satisfaction levels. Organizations can then act to improve retention.

Conclusion

The article concludes that formally planned and deliberate employee retention strategies incorporating multiple elements can help organizations significantly reduce employee turnover. Investing in retention reduces costs associated with replacing valuable workers and maintains organizational effectiveness.