Employee retention is considered to be
very important for the Human Resource managers in almost all the
companies across the world. Employees will never try to stay in a single
organisation for many years even they have many appraisals and rewards. I
can never remember my friend's and colleagues’ working place even though I ask
them several times as they change frequently to many companies
having reasonably good offers in all the companies. They prefer
shifting companies than staying in the same organisation prior appraisals.
So this made me more interesting to study about why people shift companies more
frequently? What are the key factors made them to shift?
Companies across the world always look to
earn profits and get revenues and only concerned about shares and business and
never consider the "Human Factor" which is one of the main resources.
But there are few companies where they consider "Human Factor" as the
main resource to the company with their other resources. They consider
employees' as their bench strength for their productivity and profits. Do you
think we should listen to all employees and fulfill their all
"wants"? Will these "wants" ever end? Does
"wants" of each employee be the same? Will every employee be
satisfied with the same solutions? There are few companies where they have
cracked all these questions with suitable answers. Let me give you in brief
about those companies who have done this and still doing this.
One big question stroked me-
"Do industry matters a lot for employee retention?" This found little
tricky to get an answer. Are service industries more concerned with "Human
Factor" than manufacturing industries? Yes service industry is more bound
to human resources than manufacturing industries. But even in service industry;
many companies neglect human resource development and employee
empowerment and motivation of the employee. They think that
monitory benefits can only fulfill human needs which may not be true in
all the cases when service industry is concerned. There may be many factors
that might influence the employee to retain in the same company. You will be
shocked to hear that employee attrition is more in a service industry than in a
manufacturing industry. Do you think that service industry is concerned about
"Human Factor" than a manufacturing industry? If so why is this
attrition more here? What is manufacturing industries doing in their firms to
retain employees so long? What benefits that the employees are
getting that a service industry is lacking? What is that gap between employees
and a firm that service industry is lacking?
The gap between employees and the
management of the company will be there always that can never be closed.
Management of both service and manufacturing sectors has equal concentration on
employees as human resource is one of the main resources to all the firms. But
gaps are almost the same in both the sectors. It also depends on the
"Company culture" which makes an employee doesn't suit the roles in
his organisation. Company has its own policies and culture to keep it
uniform and maintain discipline in the organisation. This creates a
"Gap" between management and the employees in every company. Service
sectors are very strict when rules and deadlines are concerned than a
manufacturing industry even though they have deadlines.
So why this “Gap” does arises in
every organisation? Does Corporate culture makes them feel pressure and
irritated? Maintaining corporate culture, company discipline is main factor for
attrition? Many companies won't prefer things to be on employees’ way as they
think that they lose control over employees and affects Company’s culture. Do
company's culture very much important than retention? Do companies have a
flexible Company's culture? So is that flexibility should be defined? Corporate
culture is very important for every company to
maintain uniformity and discipline in every organisation. It’s still
a tough challenge with the company's management to fulfill every employee
"wants" and makes everybody satisfied with the work and the work
environment also work culture. Every employee has the sacrifice one thing to
gain something. The gap is very difficult to solve but companies can minimize
that to some extent which makes employee retain. Corporate culture is
always inversely proportional to satisfy employee wants. Having
a corporate culture is not bad but being flexible will be better. Culture is
important for every employee to be together and work together and to maintain
discipline in your work. To retain employees every company can have a flexible
work culture which makes employee feel better. Management can never satisfy
every employee needs and requirements as every employee will have different
issues and different concerns.
Building pressure on employees can also
cause attrition. Pressure on employee can happen even with the work culture or
anything else. There are many companies that they have fired an employee
because of their poor performance even that employee could perform. Employee
performance can affect with the work environment and work culture. Performing
his job would feel more pressure and irritated which intern leads to
employee attrition searching for a new role in different company.
Work irritation also makes people change job frequently. This reduces a
person's performance and which induce the company to make the person
to quit.
Human mentality is always different with
time as well as with person. Humans always try to understand others than
understanding themselves. Human behavior can never be same but can be similar
but that can never be expected in your work culture. Humans have tendency to
adjust with the nature and environment but he needs space and time to
breathe. Every corporate expects every new employee adjust with their corporate
culture very soon. But it takes time for all to adjust even the person is so
lively. Even employees don't realize that this will have a different
environment and expect the same culture which makes them to quit the job. This
happens as the company expects employee to follow the company culture very soon
and employee thinks that he is in a wrong place.
There are few service based industries that
have considered the "Human Factor" as the key to success which made
them stand on top. As mentioned earlier there are few companies where they have
minimized the gap between the management and the employee and tried to satisfy
every employee and retained. The top best companies where they have maintained
company culture which satisfied the employees working in the company are:
1. Google
2. Makemytrip
3. American Express
4. Marriot Hotels
5. Intuit Technology
6. NIIT
(Source : Economic Times )
These companies have excelled in service
industries and are among the top 10 best companies to work in India. They have
their own policies and culture but they could make employees to be satisfied
and happy to work and made employees to retain in the same company. This says
that appraisals are not only a key factor to make an employee retain, there are
many factors that are to be considered. Human resource is a very vital resource
for any company irrespective of industries. Appraisals should be done
periodically but that really won't affect employee retention.
And finally a quick question that stroked my mind, after seeing
the list of companies was -
"Do Brand really matters for employee retention?"
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