EMPLOYEE RECOGNITION A GIZMO FOR EMPLOYEE RETENTION

G. Sindhu, Research Scholar, Anna University

V. Ramya, II MBA, PPG Business School, Coimbatore

Really great people make you feel that you, too, can become great
-

Mark Twain

ABSTRACT

Intelligent employers always realize the importance of retaining the best talent. Employee retention refers to the ability of an organization to retain its employees. Motivation is the driving force by which humans achieve their goals. Motivation comes from two sources: oneself, and other people. These two sources are called intrinsic motivation and extrinsic motivation, respectively. A reward, tangible or intangible, is presented after the occurrence of an action with the intent to cause the behavior to occur again and is called extrinsic motivation. Employees are motivated by rewards and recognitions. To deliver the proper messages, remuneration objectives and strategies should be aligned with the overall business strategy of the organisation. Alignment enables organisations to deliver the right type of rewards to the right people, at the right time, and for the right reasons. To motivate and retain employees, and to improve organisations profitability, a right mix monetary and non monetary reward should be made available to employees as employees needs differ. Without qualified people who are good at what they do, any company would be in serious trouble. In the long run, the retention of existing employees saves companies money. The employee retention strategy is important and that is to be carried out effectively by the HR. The aim of this paper is to highlight the importance of reward and recognition program in order to retain the talent in an organisation. The paper also throws light on some successful rewarding strategies followed at successful organisations.