In the past 20 years, the technology has been improving as well as the behavior of human. Another change that has been significant enough in the workforce is the generation. Since the baby boomers is reaching the retirement ages, the workforce changes its face. During the change of the pace there are many issues regarding the younger generation. Though, the unprepared new labor force brings another issues to the most company. As the new age begin, the company is struggling with the high demand of spending and low output level from the employees. This event challenges the human resource management on the search of potential employees. The consideration breed the pros and cons whether to keep, train and improve or recruit and change the force. The essay will provides the thorough exploration to oversee the positives of developing dedication of the employees. The method will be used are research and case discussion. The objective of the written report is to provide an insight of the importance of loyalty from the employees.
Maintaining Employee’s Loyalty
There are various ways to increase the productivity of workers in the workplace. Through motivation, rewards and punishment, etc. However, none of those approach will success without the cooperation from the employees. In order to improve the company, manager must be able to allocate their employees to respected field. Professionalism can be achieved with the certain amount of time and dedication. Management cannot ignore the importance of low employees’ turnover. This report will show several benefit from having loyal employees in the company.
Loyal employee tend to be more motivated than the new employee. The more a human love something, the more incentives popped to improve...
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It’s usually this type of employee that is treated unfairly and gets stuck in a job they do not like. I know I was one of those loyal employees. With the economic shift and government influences (Obama care!) Having a job that works for you and takes care of you is vital.
According to Arora, Yousaf and Gupta (2015), employee commitment to an organization has a strong influence on customer satisfaction and the quality of customer has improved service due to the multidimensional skills that are developed
Employee turnover costs are very costly to a company. Turnover not only affects the bottom line but also affects the company’s morale. We are analyzing the problems within our company that are causing our employees to become unsatisfied with their job. Then we are going to find solutions. And then do the cost estimates of the turnover costs and the turnover savings after our solutions are implemented.
Employees believe that the rules and regulations are for the well being of the company and its staff, for the wellbeing of everyone. Managing Voluntary and Involuntary Turnover: A Good or Bad Strategy? It is a good strategy because it has the ability to create awareness’ on the reasons of the turnover rate within a business. It becomes a tool to be able to find results as to why the business has a high turnover rate. Compensation issues are one of the highest reasons for voluntary turnover.
And if we further look into it Voluntary turnover can be further subdivided into Functional turnover or dysfunctional turnover. A healthy organization will be one which has a low voluntary turnover. A higher turnover indicates a higher dissatisfaction within the organization. The importance of employee turnover control depends on many factors, including the
Loyal employees improve the effectiveness of the organization and benefit themselves in the process as the organization improves. Loyalty also contributes by giving an organization a sense of community, which in turn fosters more loyalty. Arguments against loyalty include that it puts the employee in a vulnerable position, especially considering the frequency of corporate downsizing and restructuring. Additionally, employees must realize that businesses are not human entities and exist for the sole reason to make a profit. Employees must continue to think critically, even as they are loyal to an organization.
According to Compdata Surveys and Consulting, the turnover rate in the healthcare field in 2015 was 19.2% and has been rising each consecutive year (Compdata Surveys and Consulting, 2015). Internal factors such as inability to integrate, impulsivity and integrity are three of the top reasons turnover rates are so high in the healthcare field (Bean, 2016). On the other hand, external factors that fuel the high turnover are workload, leadership and growth opportunities (Compdata Surveys and Consulting, 2015). Both internal and external factors can be combined into poor
Today, It has become the fundamental gainsay for the organizations to retain the most talented employees. Hiring knowledgeable employees on the job is essential for an employer but keeping those employees even more important than that of hiring. There are many companies who are always searching for talented employees so such employees have no shortage of opportunities. In this era, employee retention is becoming a critical issue as the result of shortage of skilled labor, economic growth and employee turnover. Many of the companies are facing problems in retaining employees. Although it is hard to measure the exact cost of turnover because a current employee holds with him the knowledge about company, costumers and the past history so when he leaves the organization everything is gone with him, sometimes to competitors, so the exact loss cannot be realized but the industry experts often quote 25% of the average employee salary as conservative estimates. (Importance Of Employee Retention) So we need to understand that basically itself employee turnover is not a disease but it is a symptom of the disease i.e. Failure to retain employees.
Employee turnover in organization is one of the main issues that extensively affect the overall performance of a workplace (Tariq, Ramzan and Riaz, 2013). Various studies show that employee turnover negatively affect the overall efficiency at the organization (Tariq, Ramzan and Riaz, 2013). Xiancheng, (2013) mentioned the employee turnover is a method of personal issues who decided to stop associate with the company for better advantage. There are two types of turnover which are voluntary and involuntary turnover. Voluntary turnover can be defined as the termination of the official and the psychological contract between the employee and employer (Krausz, 2002; Macdonald, 1999; Mclean Parks et al, 1999; Rousseau, 1995) while involuntary turnover inescapably lead to direct negative results such as current job is insecurity, work difficulty, and status fluctuation (Gowan and Gatewood, 1997). However, other researchers such as Haven-Tang and Jones, (2012) concluded poor management, lack of salary, bad working environment and paucity of job opportunities could be the highest causes of turnover among organization. This statement was support by Kusluvan et al., (2010) where is they had stated that poor management, low payment of salary, work environment and lack of employees’ job opportunities on the organization will make employee want to quit from their job. Turnover intention situation will appear when labour had feeling that they want to quit from current job, so voluntary and involuntary turnover will become final stage for them as their decision (AlBattat and Mat Som, 2013) but it is different for researchers such as Mosadeghrad, Ferlie and Rosbenberg (2013) when they conclude that employee turno...
In cultures that value loyalty to the employer, a kind of family relationship seems to develop between employer and employee. It is a reciprocal arrangement, which the employer is concerned with assisting the employee to develop to his or her full potential and the employee is concerned about optimizing the welfare of the company. The negative aspect to absolute loyalty to one company is that an employee may stay in one job that he or she has outgrow and may miss out on opportunities to develop in new directions. From the employer’s point of view, the employee may be burdened with employees whose skills no longer match the needs of the company.
A business is as good as the human component that makes it up. It is the employees who add the value of service into the business that the organization engages in turning it into a component that is worth something economically. This therefore calls for the regarding of employees not as a cost of production rather as a factor of production (Gunderson, 2001). While this appears easy theoretically, one has to keep in mind that employees are human beings. In humans, there reside a lot ofambitions, goals and temperaments. This means that each employee will bring in a different dynamic that another employee may not have. To illustrate this, one employee may be loyal to the company and work well into old age; another may stay with the company until
This study examines the performance management and reward strategy used in Unilever to retain and motivate their employees for a long term. Both intrinsic and extrinsic rewards are given to employees to make them loyal and to utilize their skills to further improve the performance of Unilever. Almost all the factors of reward strategies and performance management are discussed and evaluated accordingly. Performance of the employees might be get affected if the rewards are not given to employees, so to motivate them furthermore the Maslow Hierarchy of need theory is also recommended to Unilever to make their employees loyal.
The purpose of this report is to brief the management on the importance of employee satisfaction in achieving the competitive goals of the organization through increasing the retention of the employees.
Additionally, employee satisfaction are directly correlated to employee commitment and the loyalty which again directly related with the business and work productivity (Papazisi, Raidén, and Sheehan, 1995). Smart leaders knows that keeping their employee satisfied and motivated are essential for their organization (Sher, Bakhtiar, Muhammad &Ali, 2010).
...s in the corporate world by setting new standards to promote and better satisfy their employees. We chose four leading companies in four different industries. The above analysis definitely reveals that perhaps one of the reasons why these companies are the leaders in their industry is because they are well aware of the importance of the work force. They mention in their mission statements as well that yes in deed customers are important but in order to make the customer happy they first need to motivate and satisfy the employee as well. According to Citibank, the general belief is that a happy worker is a motivated and loyal one. So keeping employees' spirits high is a sure-fire way of maintaining a productive workforce. A productive work force would ultimately lead to a healthy organization which would not only promote the society its working for but also itself.