How Retention An Issue To HRM?

Employee retention is a process in which employees are encouraged to remain with the organisation for the maximum period of time or until the completion of a particular project (Griffeth and Hom 1995).

In other word, an effort by a business to maintain a good working environment which supports current staff in remaining with the company. Many employee retention efforts are aimed at addressing the various needs of employees to enhance their job satisfaction and reduce the substantial costs involved in hiring and training new staff using good HR practices.

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Barney (1991) classified three main types of resources in an organisation which provide competitive advantage as physical capital resources, organisational capital resources and human capital resources. The firm's people are its most important asset. Thus, employee retention is a must to obtain the organisational expected success (Barney and Wright, 1997)

Khatri et al (1999) mentioned that turnover is a major problem for companies in many Asian countries such as Hong Kong, South Korea, Malaysia, Singapore, Taiwan and Sri Lanka.

Mathis and Jackson (2006) found that turnover is a costly problem and further, argued that, the cost related to the labor turnover can be classified as separation cost, replacement cost. The negative relationship between working conditions and turnover has received attention from many researchers indicating the propensity of employees quitting their jobs when working conditions are not conducive (Mowday et al, 1982). Rose and Miller (1984) found that, in particular, lack of satisfaction with job were associated with turnover intention.

Dheerasinghe (2009) stated the average labor turnover worked out per factory is about 60% per annum in Sri Lankan apparel sector. This shows how retention is an issue to local entities.

There are plenty of reasons make intention for a turnover. The management can try to make approach to overcome such variables like Job fit, work life balance, working environment, supervision, recognition, promotion, salary, work load balancing, job responsibility.

Lack of directive and supportive from Managers or leaders force the employees get dissatisfaction and the same moves for a turnover, so it is HRM team’s responsibility to manage & give guidance to the business & front line Managers to overcome such situations & always try to keep high marks on retention.

References:

Barney, J B (1991) Firm resources and sustained competitive advantage, Journal of Management, Thousand Oaks, Sage

Barney, J and Wright, M (1997) On Becoming a Strategic Partner, The Role of Human Resources in Gaining Competitive Advantage, Center for Advance Human Resource Studies, Cornel lves Hall, Ithaca, USA
Dheerasinghe, R (2009) Garment Industry in Sri Lanka Challenges, Prospects and Strategies, Staff studies

Griffeth, R W and Hom, P W (1995) The employee turnover process, Research in Personnel and Human Resources Management

Khatri, N, Budhwar, P and Fern, C T (1991) Employee turnover bad attitude or poor management

Mathis, R L and Jackson, J H (2006) Human Resource Management, 11^th Edition, Omaha

Mowday, R Porter, L and Steers, R (1982)  Employee organisation Linkages, The Psychology of Commitment, Absenteeism, and Turnover, Academic Press, New York

Rose, N and Miller, P (1984) Governing economic life, Economy and Society, Vol 19

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