A definition of employee

retention
Published: 23rd March, 2015 Last Edited: 23rd March, 2015

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"Retention is a voluntary move by an organization to create an environment which

engages employees for a long term" Chaminade (2007 cited in Chibowa et al. 2010).
According to Samuel and Chipunza (2009), the most important purpose of retention is to
look for ways to prevent the capable workers from quitting the organization as this could
have negative effect on productivity and profitability. The view that the main purpose of
retention is primarily for organizational gains is similarly viewed by Humphreys et al.
(2009), who in describing the concept, place the focus of retention in terms of "some
notion of adequacy or sufficiency of length of service", which can be measured in
terms of a return on the costs of investment associated with training and recruitment or
the effects on patient care that are considered to be optimal.
In addressing the multi-dimensional concept of retention, Cascio (2003) perceived
retention as initiatives which the management takes to prevent employees from leaving
the organization. The issues which the latter further proposed are employees being
rewarded for doing their jobs effectively, ensuring that the relationship between
employees and managers are harmonious, and maintaining a working atmosphere
which is safe and healthy.
The Workforce Planning for Wisconsin State Government (2005), placed emphasis on
managers' systematic effort to create organizational systems and an environment which
is conducive for addressing the diverse needs of their current employees in order to
sustain their continued employment through harmonious work practices. The author
Brown (2005) claimed that an orientation program which is designed appropriately, "
whether it is short or long, will improve retention of employees." Also, Frank et al. (2004,
p. 13) defined retention as the ".effort by an employer to keep desirable workers in
order to meet business objectives".
Another important facet of this research study is its attention to some of the weaknesses
of other retention studies. Heneman and Tansky (2002) suggested that only by
extending the existing retention models from large firms to small emerging firms would
not be meaningful since it has not worked appropriately to extend other human resource
(HR) practices from large firms to small ones (Barber et al. 1999). Instead, there should
be the development of HR theories such as those dealing with retention that are specific
to small growth-oriented firms and their strategic practices (Heneman and Tansky 2002).

Employee Turnover
Gberevbie (2008) referred to frequent labor turnover as "a state of affairs in an
organization" where it is seen that employees tend to leave or resign from their jobs
because of best known reasons based on their point of view concerning personnel
policies and practice of a firm. Frequent labor turnover at work has been found to be
causing harm to performance, especially when employees are going to the direct
competitors of the organization (Chartered Institute of Personnel Development (CIPD
2006)). The CIPD (2006) further argued that it is essential for employers to completely
understand their labor turnover and how these affect the organizations' effectiveness at
achieving their overall set of goals. This implies that when the staff turnover in an
organization is found to be higher than usual, the performance of that organization would
be relatively low because there will be a lack of availability of competent employees
arising from frequent turnover of organizational workforce. (CIPD 2006)
"Excessive staff turnover is costly for an organization" (North et al. 2005). They added
that its effect goes above the financial costs inherent in the recruitment, selection and
training (new employee). Thereby, Larsen (2000) found that when employees are highly
satisfied, they will remain in the organization, and as a result rising the rate of retention
of that organization.

Factors having an impact on employee

turnover
According to Foster and Krolik (2008 cited in Stern, 2008) the five following factors have
an impact on employee turnover:

A tactical IT environment
Somehow motivation tends to lose its essence when organizations are ignorant to the
fact that IT forms part of their organizational strategy and of the employee work
particularly the tactical projects. Employees tend to develop feelings that their role does
not enhance enough value or furnish chances for them to grow, especially if industry
peers are working on new developments, when they are not provided with the
opportunity to form and carry out strategic initiatives.

Changes in leadership
There are some employees who feel that their roles are affected when there is a change
in staff. The fact that an established leader leaves an organization or a new leader
makes his entrance in an organization, gives rise to uncertainty among employees who
feel that these types of situations will make an impact on them. During this change of
leadership, it is essential that the firm knows how to handle the end-to-end
communication and the process of transition. As soon as the change is planned, it is
quite obvious and wise that the due change should be communicated to the employees,
the rationale for it, and what impact it will make on them including the benefits that may
arise for example growth or increased opportunity.

Changes in organizational structure

As a whole, changes in the business or influencing the IT organization directly create
suspicion. This can be supported with substantial examples like outsourcing, and merger
and acquisition but also we have to bear in mind that the creation of uncertainty is not
only because of large scale business initiatives. There can be changes in the roles of
employees and their responsibilities that can make them become alert about their future
when there is the restructuring of an IT department to streamline operations or align IT
more effectively with the business. This situation may not have the chance to arise if
both the rationale for change and their future role are distinctly communicated and like
such the employees will make their own interpretations.

Cost cutting, leading to reduction or

cancellation of planned IT projects
It is said that initiatives that do not create a direct impact on the bottom line is the first to
be impacted when organizations attempt to decrease their cost. In this case, large or
new IT initiatives can go down. The cutting of new developments has an effect on morale
and interest especially if the workers perceive that this is impacting their development
and marketability.

Lack of respect (for your boss)

The author, Stern (2008) found that Bethanis (1999) also explained this point well by
adding that, "A key differentiator in why someone stays with an organization is
satisfaction with his/her boss". There is a tendency of employees becoming disengaged
when they firstly feel that they are not given respect at the workplace and also the
management does not bother in taking into considerations about their opinions. Stern
(2008) proposed that leaders can win the trust of employees by meeting up to the
expectations of maintaining the commitments they make to their organization. However,
this does not imply that leaders must be reliable, people who must always abide to its
commitment or someone who is the leader must try to do the right thing.

THE SCRUTINY OF RETENTION AND

TURNOVER
According to Curtis and Wright (2001, p. 59), when managers ignore the concept of
retention, there may be high employee turnover in an organization which can severely
cause damage to the business particularly if it affects factors which provide competitive
advantage to the company. The authors added that as a result this could hinder
business growth or even the business can go down. Similarly, Brazier (2005, p. 128)
stated that there are some factors like hierarchical structures, high employee turnover
and lack of resources which are likely to prevent creativity and innovation.
Moreover, in view of Curtis and Wright (2001, p. 59), it costs quite a lot to replace
workers who leave an organization. Also, it is said by Thornton (2001) that to recruit the
key employees like the managers, specialists or highly trained professionals asks for a
large amount of money which in turn can be up to 150 per cent of the annual salary.
Thornton (2001, p. 24) also added that the cost for hourly paid workers is six months'
salary. As a whole, this causes disorder in the work and there may be a negative effect
on employees' morale (Curtis and Wright 2001, p. 59).

TURNOVER AND RETENTION

When studying turnover, there are some essential antecedents to turnover which
normally have to be considered and they are satisfaction, commitment and intention to
quit (Bigliardi et al. 2005, p. 428). Job satisfaction has been taken into account within
research and numerous studies have seen the relationship between low job satisfaction
and high turnover motivation (Jamal (1999, p. 727 cited in Hytter 2007)). There is some
research work which shows the correlation between commitment and turnover and this
was demonstrated by Kondratuk et al. (2004). It was found that affective commitment
(emotional attachment, identification and involvement in the organization), and normative
commitment (feel obliged to continue work) were notably lower comparing those who
moved to another organization and those who remained in the same position (Bishop
and Scott 1997; Kondratuk et al. 2004).
According to Michaud (2005, p. 10), when an employer is unsuccessful in maintaining a
good relationship with his or her employees they tend to develop a feeling of being not
important, not being appreciated which can consequently push them to quit the
organization. The suggestion put forward by Hytter (2007) is that an employer should try
to build a strong relationship with his or her employees which may in turn act as an
essential retention strategy to the organization. To retain non-senior staff it is advisable
to introduce flexible benefits where the employees can choose from a wide choice of
benefits available and this particular type of benefit can be characterized as the easier
and cheapest way for the owners of organizations to satisfy most of its staff (Curtis and
Wright 2001, p. 61).
Sigler (1999, p. 2 cited in Hytter 2007) proposed that when trying to retain employees
with other factors than compensation (pay and stock ownership), the management must
try to do all possible things in order to level up the rate of job satisfaction among the
employees. Cappelli (2000, p. 104) stated that there is a need of executives to 'take a
hard-headed, analytical approach to what has long been viewed as a "soft" side of
business- the management of people.'

Factors influencing employee retention

Employee retention has been a major concern of organizations all over the world.
Although there has been a common trend among organizations to outsource work that is
routine and non-core, retaining people at strategically important positions remains a
major concern.
A number of factors have been assembled so as to give explanation of the reasons why
employees leave an organization for others, or in some situations they just leave the
country. Some of the reasons are inappropriate hiring practices, unprofessional
management style, no good recognition, lack of competitive compensation system, lack
of interesting work, lack of job security, not enough of promotion, inadequate training and
development opportunities and an unhealthy working environment (Hewitts Associates
(2006); Abassi and Hollman (2000); Sherman et al. (2006)). CHECK REFERENCE
Herzberg (1959 cited in Bassett-Jones and Lloyd 2005) two factor theory argued that
employees are motivated mostly by the internal values rather than the external values to
the work. In other words, Herzberg (1959) stated that motivation is "internally generated
and is propelled by variables that are intrinsic to the work" and he called that
"motivators". Conversely, certain aspects which cause dissatisfying experiences to
employees are mostly resulting from non-job related variables (extrinsic).
Other researchers have also discovered that the decisions of employees to leave a firm
are influenced by factors such as "salary, work life balance, or career opportunities"
(Mayer 2006; Abraham 2007; Holland et al. 2007).
Moreover, in a study on employee retention, Sunil Ramlall (2003) suggested that when
there is lack of challenge and opportunity, career advancement opportunities,
recognition, inadequate emphasis on teamwork, no flexible work schedule, these
become the most common reasons for employees' quitting an organization.
Consequently, Hannay et al. (2000) stated that the extent to which the employer has met
employee expectations and the witnessed future opportunities provided by the employer
are seen as the most important variables for employee retention.
While conducting a study in Australia, Mayer (2006), discovered that the reasons for
young academic staff members' leaving are somehow different. Their decisions to leave
were varied as follows: too much workload, lack of input in decision making, inadequate
new challenges, teaching out of field, insufficient autonomy, not enough salary and
personal circumstances (Mayer 2006, p. 65). He added that after the study it was
noticed that workload was ranked as the highest, while salary was the least motivating
factor for quitting.
At a finishing point, we could deal with these challenges by introducing retention
strategies (Armstrong 2002 cited in Millmore et al. 2007; Mayer 2006; Holland et al.
2007; Prichard 2007) that would aid the organization in keeping the employees that are
in sought after fields.

Retention Strategies
Employee retention strategies refer to the "means, plan or set of decision-making
behavior put in place by organizations" so as to retain the competent staff for
performance (Gberevbie 2008). Researchers have also found that employees remain
longer and work for the attainment of successful organizational goals when appropriate
employee retention strategies are adopted and practiced by organizations (Amadasu
2003; Taplin et al. 2003; Gberevbie 2008).
There are studies which showed that when right employee retention strategies such as
job satisfaction arising from appropriate rewards (Gomez-Mejia and Balkin 1992;
Heneman and Judge 2003), pay according performance (Griffeth et al. 2000), training
and career development (Okoh 1998) and social community at work are used, this
enhances social relations such as encouraging employee marriages and siblings
employment (Ayagi 2001), job security (Chartered Institute of Personnel and
Development (CIPD) 2006), increased level of wage rate and company image (Taplin et
al. 2003) and decision making and sharing of information (Jike 2003; Riordan et al.
2005) serve as a catalyst in retaining employees for organizational performance.
Holland et al. (2007, p. 248) suggested that companies should look for workers
possessing scarce specialized skills and must try to retain them. Also, they added that in
order to be able to retain those having new knowledge and skills for long term, the
organizations also must use effective retention strategies. Similarly, effective retention
strategies are seen as a motivator to workers which improve their performance at work
and this may result in attracting more qualified people to work for the institution (Naris
and Ukpere 2009, p. 883).
Furthermore, DeMarco (2007) proposed three retention strategies to effectively deal with
the Generation X work group that is those born between 1964 and 1977. According to
him, the first one is that communication is vital which includes feedback, group
communication, employee surveys and corporate communication. Secondly, he added
that top management should review issues such as supervision whereby the manager
deals with building of team, performance management and the development of
individuals and thirdly he concluded that attention should be given to the matter of
generational interest. The researcher even stated that "employees want to know that
they are valued and important."

The Illustration of Employee Retention

Strategies through some Diagrams
The following figures are frameworks which will give us a better view about retention
strategies used by organizations in order to retain its employees.

Figure : Four attractors and retainers

Source: Corporate Leadership Council (2002)

Figure : Retention Factors Framework for

Existing Employees
Source: Adapted from Britton et al. 1999

Figure : Conceptual Model of Organizational

initiatives and Management and Non-
Management retention and turnover
relationship
Source: Monacarz et al. 2009, p. 439

Figure : A Framework for Attraction and

Retention
Source: Hotton 2006
Figure 2 has been used as the main framework by means of which all the below stated
employee retention strategies were extracted and explained thoroughly for better
comprehension.

Recognition, Rewards and Compensation

Many studies have shown what implications employee compensation, rewards and
recognition have on turnover and retention (Becker and Huselid 1999, Cho et al. 2006,
Milman 2003, Milman and Ricci 2004, Walsh and Taylor 2007). Furthermore, numerous
research studies found that employee commitment can be promoted by highly
competitive wage systems and thus resulting in the attraction and retention of a superior
labor force (Becker and Huselid 1999, Guthrie 2001). Also, most of the managers
believe that the prime retention factor is money and many employees mentioned the
reason of better pay or higher compensation for leaving one employer for another
(Mathis and Jackson 2003). Compensation is said to play a fundamental role in
attracting, retaining and motivating workers (Swanepoel et al. 2003).
According to Arms (2010), although employee recognition is largely important, it is said
to be quite simple to deal with. He added that it is just a matter of an everyday
interaction by saying a simple "thank you" to the staff that has gone out of their way.
Also, he stated that an employer must often acknowledge the stress and effort of
employees working on an important and timely project. The author further added that it is
essential for the boss to give them credit they deserve for work that they have done for
the firm and instead not to give them the impression that the employer is taking credit for
their efforts. He finally concluded by proposing to employers that they can set up a more
formal program for employee recognition having both the financial rewards such as "gift
certificates" and intangible rewards that is having a personal parking place, obtaining
summer flexible time and "dress code perks".
However, several other research studies have showed that compensation in the form of
base or variable pay may not be sufficient to attract or retain employees. Milman (2003)
and Milman and Ricci (2004) concluded that the most significant retention predictors
included intrinsic fulfillment and working conditions rather than monetary rewards.
Similarly, the study by Walsh and Taylor (2007) revealed that although compensation
and work-life balance are important, it is the absence of opportunity for professional
growth and development that affects management retention and turnover (Walsh and
Taylor, 2007).
Researchers have found that rewards as provided by organizations have relationship
with job satisfaction and hence employee retention (Taplin et al., 2003). Rewards help to
motivate and retain competent staff for performance (Okoh, 1998; Bamigboye and
Aderibigbe, 2004; Jerez-Gomez et al., 2005). Heneman and Judge (2003) argue that for
an organization to retain its employees for performance, it must match its rewards to
employees' preference. The match between rewards desired by employees and offered
by the organization is what leads to job satisfaction. And job satisfaction in turns
guarantees employee retention.
Others like Kinnear and Sutherland (2001: 17) assert that managers should not be
deceived that money no longer matters in retaining employees any longer. They further
reiterate the importance of money in attracting, motivating and retaining quality
employees in the organization and further concluded that skilled employees are
achievement oriented and want their achievements rewarded with money. However,
Amar (2004: 96) argues that money has not remained as good a motivator as it was in
the past. The efficiency of money as a motivator of skilled employees is quite low.
In contemporary organizations, Hay (1999: 46) contends that if managers reward
performance with only money, in many ways, they lose the retention war, because there
are other more powerful motivators of talent, such as freedom and flexibility in the
organization. Concurring with Hay (1999: 46), Dess et al. (2008: 127) state that money
cannot be ignored, but it should not be the primary mechanism to attract and retain
talent because employees who come for money will leave for money.
Job Security
Empirical study by Samuel and Chipunza (2009) found a strong evidence of association
between job security and employee retention. This is more so in under-developed and
developing economies where job security presents an important factor in employment
decision making of individuals. Also they stated that employees place great importance
on their jobs because it provides them with the source of income with which socio-
economic stability and psychological well-being are achieved.
However, regardless of the importance attached to job security, existing literature argues
that job security at present has a different valence to different generations of employees.
Supporting this assertion, Amar (2004: 97) posits that job security is not a retention
antecedent for the new generation of skilled employees. Their expectations in the
organization do not include long-term employment. He adds that they see job security as
a positive feedback of their labor market worth and therefore look for a daily proof that
their work matters. According to him, in this way, skilled employees create for
themselves a sense of security every day, meaning that, if they are doing a good job,
they are secure, if not with their present employers, then with another one.

Training and Development

According to Cataldo, Assen and D'Alessandro (2000), employees with key information
technology skills have become increasingly hard to find. Thereby, organizations that
focus extensively on developing newly hired talent through continuous training will be in
a much stronger position to retain the most talented employees, thus becoming an
employer of choice (Boxall & Purcell, 2003). Also, according to the research of Matlay
(2010), "Companies that want to hang on to the graduates that they have and continue
to attract the best should look to their training programs." His research also showed that
training was considered key not just to newly working graduates but to final year
students. He perceived that over 90 per cent of them believe that organizations that
continue to invest in their people will come out of the recession stronger. In his view,
whilst they acknowledge that training budgets may have shrunk and will view companies
claiming the opposite with some scepticism, they demand honesty about training
opportunities from employers during the interview process.
"Successful retention programs incorporate training and development in an effort to
retain their employees. Any organization that develops employees will want to retain staff
and utilized their skills. It is important that key staff members, who are developed, are
also retained" (Pritchard, 2007: 140). Also, when combined with selective promotion and
salary action, the learning and development process is a strong retention activity.
(Echols, 2007 cited in Govaerts, Kyndt, Dochy, & Baert, 2011)
In the US the 'Jobs Initiative' found that although work readiness activities increased
participant placements, training and the provision of hard skills was the most important
factor in supporting longer term retention (Abt Associates, 2003). According to Kellard et
al. (2002); NESA (2007), training has been found to be most successful when it: makes
use of a range of education options from on the job to fully accredited training; is closely
linked with the skill requirements of employers in the local labor market; and fits with
both home and work schedules. They added that this should involve continual
development of hard and soft skills, addressing of skill deficits as they arise in the
workplace and the targeted development of skills in jobs at one level that will support
advancement to jobs at a higher level of employment.
According to Arms (2010), "There are various ways you can support the professional
development of your staff. Consider offering internal training opportunities. Facilitate
continuing professional education (CPE) attendance by not only paying for the classes
but also allowing your staff necessary time away and reasonable travel and per-diem
expenditures. Many companies also offer a tuition assistance program with vested or
performance-based reimbursement for secondary education. Finally, don't neglect
technology. Keeping up with the latest and greatest in office equipment, software, and
personal devices can be a daunting capital investment, but it will provide significant
returns in the form of streamlined operations, improved accuracy, and increased
revenue. The fact that your staff will also enjoy being at the forefront of technology is an
added benefit."
On the other hand, once employees feel they are no longer growing, they begin to look
externally for new job opportunities (Rodriguez, 2008). This makes development and
learning critical for attracting and retaining employees, because "[. . .] talented people
are inclined to leave if they feel they are not growing and stretching" (Michaels et al.,
2001, p. 14).
On the other side of the coin, what we see is that there are some companies very
unwilling in investing money for training employees (Lyons, 2003:398; Gagg, 2005:28)

Corporate culture and communication

According to Becker and Huselid (1999), culture creates competitiveness since it
changes employee behavior by making them act consistently with the firm's desired
corporate culture, thereby influencing employee retention. Other researchers who
investigated the relationship between organizational culture and employee turnover and
retention uncovered similar findings (Chew et al., 2005; Cho et al., 2006; Milman and
Ricci, 2004). For example, a study by Milman and Ricci (2004) revealed that among the
most powerful indicators to predict hourly employee retention in the lodging industry
were positive experiences with the company's policies and with the company's humane
approach to employees.
According to Arms (2010), Communication is seen as a key. Even if you speak with your
employees regularly, are you telling them what they need to know? Share your mission,
vision, and goals with them. If they're expected to help you attain something, they should
at least have an idea of what it is they're working toward. Also, many employers don't
include staff in discussions of company performance, assuming that they don't care or
need to know. But they do care, and keeping them informed gives them a feeling of
inclusion and unity that will foster accountability.
Moreover, Sinkin and Putney (2009) states that no simple solutions can eliminates these
retention fears, but one of the most effective actions is clear and frequent two-way
communication in which you share your firm's vision and ask for (and to listen) their
opinions. These actions create an environment in which staff feels someone is listening,
they have input and their opinion counts.

Work environment, Work Life Balance and

Job Enlargement
"Professional practice environments, successful in attracting and retaining staff,
intentionally utilize events and activities that promote employees' social attachment to
the workplace community." (Halbesleben and Wheeler, 2008; Holtom and O'Neill, 2004).
Similairly, some companies that actively promote a positive work environment, and who
also value employee contributions while achieving a true work-life balance have been
found to be more successful at communicating the idea that their employees are one of
their most valuable resources (Hom and Kinicki, 2001; McGrath, 2006; Mitchell, Holtom,
Lee, Sablynski, Erez, 2001). Furthermore, work/life balance factors are also cited as
retention factors by DeMarco (2007) and Gillis (2007).
Also, an institution should help employees maintain a balance between personal and
work life (Dibble, 1999 cited in Netswera, Rankhumise and Mavundla, 2005). He added
that in some institutions, practices such as making childcare facilities available on the
premises and flexi time can make the difference between keeping and losing an
employee. Work/life policies include flexible work scheduling (e.g. part-time work, job-
sharing, variable starting and quitting times), family leave policies allowing periods away
from work for employees to take care of family matters, and childcare assistance (e.g.
referral service, on-site or offsite care centres) (Burke & Cooper, 2002). Similarly, Hytter
(2007) stated that some firms have ameliorated in retaining employees by giving them
more flexible working options and also by offering them other family-friendly policies.
However, according to Dibble 1999, p. 157, often statements about the environment,
caring attitude towards workers, etc. appear in the official statements of the
organizations, but are not often practiced in most work environments. Additionally, Loyal,
high technology employees (those who cannot envision changing jobs in the foreseeable
future) are more concerned with leave (vacation, holidays etc), flexible work schedules,
family friendliness and a proximity to their home, than job seeking employees who are
actively looking for a new position (Dubie, 2000).
Results of empirical studies of lodging properties in Central Florida confirmed that hourly
employees' retention was predicted by self-fulfillment and working conditions, even over
monetary rewards (Milman, 2002, 2003; Milman and Ricci, 2004). These studies found
that employees who had a positive experience with regards to working hours, sense of
fulfillment with their jobs and higher level of job satisfaction are more likely to stay with
their current employer. In a study of restaurant food servers, Wildes (2007a, b) noted
that although monetary rewards can be a top motivator for employee retention, having a
fun working environment and flexible hours were also important motivators.
Flexible work arrangements have been used for more than a decade as a way of
retaining valued employees. However, this is a short-term fix (Maitland, 2007). Instead,
employees should be encouraged to choose from a menu of options in the following four
areas:
Pace of career progress (ranging from accelerated to decelerated)
Workload (from full to reduce)
Location and schedule (from not restricted to restricted)
Role (from leader to individual contributor) (Maitland, 2007).
Walsh and Taylor (2007) study found that although it was important to obtain a good
salary and benefits package, whether employees remain with the organization primarily
depends on the degree to which their employers respond to their professional growth.
They noted: "those employees most committed to performing challenging work are the
ones most likely to remain with their companies" (Walsh and Taylor, 2007, p. 147).
"A retention strategy such as job enlargement could be offered, which refers to adding
challenging or new responsibilities to an employee's current job." (Noe et al., 2006: 398)
Reduce Workload
The previous strategies will ultimately be ineffective when employees are simply
overworked. To avoid employee burnout, keep your requirements reasonable,
particularly during peak workloads-such as tax season and year-end-that last for more
than a few weeks. Also, encourage employees to use their paid time off. According to the
ninth annual Expedia.com Vacation Deprivation survey, up to 53% of employees who
took time away for vacation reported a renewed sense of drive, determination, and skill,
enabling them to be more productive. In addition, you can consider the use of contingent
labor to offset peak workloads, fill vacation gaps, and better manage the work life
balance of your employees. In contrast to the costs of disengagement and turnover,
temporary staffing costs can pay long-term dividends in terms of productivity and
revenue. (Arms 2010)

Motivation- (Praise and Trust)

According to Glen (2006), ''it is possible to retain key skills within highly cash-strapped,
extremely lean organizations; by focusing, as a necessity, on broader predictors of
retention and motivation. '' He even added that '' It is quite conceivable that, for example,
certain employee groupings may be primarily motivated by their personal stake in the
business, career leverage, rewards and recognition, whilst other groupings may be
motivated by a combination of role challenge, organization values, work environment,
and so on. '
Anon (2010, P.13-15), says that "While some employees recognize their own limitations
and accept that they are fortunate to have a job of any description, talented employees
can usually shop around for a suitable employer even in a global economic downturn.
Competition among organizations is not just about customers, it is about hiring the best
people. They need to be tempted and trusted, and hiring them is just the beginning.
Their talent has to be nurtured and managed - and moulded into a form which is an
exact fit with the organization's strategic aims."
Anon (2010, P.13-15) also proposed that "Hiring and hanging onto talented staff in
economically-trying times might be tough, but it can be invigorating. It is not all about
providing perks such as healthcare or furloughs though. Recognizing good work is as
important as it ever was. Equally important is telling people on a regular basis that their
work is good. We all like praise. It is often what motivates us, gives us a sense of
belonging, of being ''part of the team''.
Motivation is what drives people to work. The researcher suggests that in order for
institutions to retain their staff members, they should first find out what motivates
workers to work. Also, by paying attention to what motivates them to work, one will be
able to develop strategies to retain them (Gerson and Gerson, 2006:7). Moreover,
People come to work for various reasons, which are mainly based on their needs.
Several authors have postulated theories about what motivates people to work, for
example, Maslow, Herzberg, ERG, and McClelland (Robbins et al., 2007: 143).

Create Support by Mentoring (Do not just

manage - lead)/ Leadership
Establishing a leadership program will help counteract any uncertainty your staff-level
employees may feel because it creates a support network that provides them with
resources to help them better understand corporate culture, accountability, team
interaction, and, perhaps most important, the unspoken rules of business engagement.
Mentoring programs are a proven method for generating professional interest and
commitment to the firm or department (Arms 2010).
Chen and Sliverthorne (2005:280) claimed that the higher the rate of the leader's point of
progress concerning leadership, the more an employee will want to do a work. This also
results in an increase in the level of employee job satisfaction which includes a reduction
in employee's stress at work and also the employee's turnover intention decreases. To
support the above statement, the author Ribelin (2003: 18) added that the actions of a
manager can both positively and negatively affect the working environment which can
have a direct impact on job satisfaction as the employees can perceive and feel the
behavior of the manager.
Furthermore, Michaud (2005: 10) said that the majority of employees will have no
problem in happily talking about their needs and issues of their job. He also stated that
the employees should obtain the employer's full attention in order to make them feel
important to the organization. To make things more effective, Thornton (2001: 26)
proposed that there is a systematic approach used to motivate employees which is the
feedback program. The author stated that without this program, the employer will not be
sure if the employees sees the working environment good or bad and whether the
communication systems used around the workplace is enough or not. As a
consequence, Thornton (2001: 26) concluded that the staff will tend to be demoralized to
work in such an environment.
In a culture that has a high rate of power distance, we can expect to have social order,
relative harmony and role stability due to presence of power (House et al., 2004: 536).
Hytter (2007) also claimed that when the level of power is high, there is an increased
importance of equity, competition and performance including performance-based reward.
He even said that the leadership style in this context focuses more on achievements. On
the other hand, the same author elaborated on this issue by now looking at its human
aspect. He brought forward that when the power of leaders are high, there is in fact more
need of belonging and affiliation for employees and the leadership style here need to
focus on relationships.
According to Morgan (2008), the number one reason that employees choose to leave a
company is that their managers fail to lead. Leader credibility is comprised of many
attributes: competence (both technical and managerial), courage, character, composure
and care for people. Those who consistently master these attributes are our most
effective leaders and mentors. When leaders elevate their game to improve their
leadership capabilities, they will be much more likely to retain their high-performers.
When leaders are committed to self-improvement - so too are the people who work for
them.

THE FUTURE OF EMPLOYEE RETENTION

According to Anderson (2010), with problems like recession where unemployment is
high, organizations will first and foremost think of reinforcing its retention strategies and
look for ways to bring about improvements in them. This is the point where he disagreed
and stated that there is no assurance for the employees or top talents that one day they
will not leave the organization and more specifically when it comprises of the Generation
X type of people. He claimed that neither technology nor outsourcing will be a remedy to
this situation. The author proposed that organization should instead focus on creating
knowledge, networks and new opportunities which in turn will add more value to the
organization as a whole.
Moreover, Schultz and Grimm (2008) claimed that in polled market places, employers
see that there is a significant importance of research work to be done in order to
determine the barriers and best practices of how to retain employees throughout the
industry. They added that other advices require organizations to individually take action
based on their particular needs and requirements. In their view, human capital
management and the concept of knowledge will be one of the doors to success in future
business.