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Theories on retention of employees
Research proposal on factors affecting employee turnover
Theories on retention of employees
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INTRODUCTION
In the last two years Family Video's employee retention has dramatically decreased. Employee retention has gone from sixty five percent to a staggering fifty two percent in the last two years. Family Video is currently growing at an average of sixty new stores each year. With this rapid growth Family Video must focus on how to increase the employee retention.
Employee retention requires a whole lot more than just competitive salaries and great benefits. Employee recognition and pay based on performance are just two ways on how to get started in retaining your best. Employees want to feel part of something bigger than them. Corporate volunteer programs are a proven way to increase employee moral and retention. This report will briefly show that family video is already doing all that is necessary when dealing with pay, benefits, and room for advancement. It will discuss how a corporate volunteer program would be the best choice for the company to undergo in order to help increase employee retention. The other benefits that result from a corporate volunteer program and the costs of the program will also be presented.
COMPETITIVE WAGES
The first thing a company usually investigates when trying to increase employee retention is employee wages. Family Video does not need to focus on altering employee wages because we already offer competitive wages. The area where employee retention is low includes the in store employees. This includes the part time employees, assistant managers, and store managers.
The table below shows that Family Video's wages are actually higher than those of our two top competitors. Compared to Blockbuster and Hollywood Video our hourly wages are on average one to two dollars higher than our competitors. The wages of our salary managers are two to six thousand dollars higher than Blockbuster and Hollywood Video (About Blockbuster, 2005, Jobs for Friendly People, 2005).
FAMILY VIDEO BLOCKBUSTER HOLLYWOOD VIDEO
PART TIME $6.50-$7.00/hour $5.50-$6.00/hour $5.50-$6.00/hour
ASSISTANT $9.00-$11.00/hour $8.00-$9.00/hour $7.00-$8.00/hour
MANAGER $36,000-$38,000 salary $32.000-$36,000 salary $30,000-$35,000 salary
Figure 1. Wages of Family Video and Top Two Competitors
Focusing on altering employee wages to increase employee retention would be a waste of Family Video's time and money. Since the company's employee wages are higher than our top competitors in this industry, increasing them would not have a significant impact on recruiting and retaining employees looking for a career in the video retail industry.
ENTICING BENEFITS
Many employees when looking for a job or deciding whether to stay with their current employment often considers the employee benefits the company offers.
Non-Profit organizations are a major mold in society in general, and they continue to help advance many of the social causes of our time. From the description, we know that employee and volunteer morale is quite low, and that is the fault of the senior management. In an organization, it is important that each individual knows that they are contributing to something larger than themselves. In many cases, employees seek to work somewhere where they can earn a living, but also where they can become a member of a team, and feel a sense of purpose. When they are not treated with respect or given the ability to make their own decisions, they lose engagement and become stagnant in their work. Volunteers look for much of the same thing; they are, after
Determine how innovations in employee benefits can improve the overall competitive compensation strategy of the organization.
America has always been known as the land of the free, living in America you’re always taught on the idea of living the “American Dream”. That means the chance of being whoever you want to become, deciding the route you want to go in life to live. To most that also means to have a family to take care of and also to have a stable career, own a house, car and more. The part of the dream they don't stress you about enough is that it's not easy to achieve. It takes a lot of hard work in which a lot of people don't achieve unfortunately. In the song and music video “Love Yourz” by J.Cole it shows how the situations in your household can affect the way you grow up and can determine your future. Raising a family is never an easy thing to do, as children
An employer who pays his employees the bare minimum will not see the same appreciation and respect as an employer who pays his employees livable wages. Lew Prince points out the various benefits that have come with paying his workers above the federal minimum since his business began. He states, “We’ve outlasted 20-store local chain and numerous regional and national chains. Most of these companies paid their employees minimum wage or barely above. My creative, dedicated, and better-paid employees won this life-or-death struggle for us” (Prince). Their loyalty also benefits Prince in the fact that he has to pay very little for employee turnover and constant training costs that other businesses struggle with. What Prince and many other business owners alike gain from higher wages reflects only a portion of the nation that will prosper from this monumental economical
USAA defines itself by its dedication to help manage military members’ finances throughout their military career and beyond. (usaa). USAA and its employees are simply already motivated by serving the military community because those in the military have sacrificed so much to serve their country. Serving those in the military gives employees a sense of purpose and doing meaningful work. Motivating employees isn’t that simple though, therefore USAA’s motivational techniques have been analyzed in order to determine what areas the company is succeeding in and what areas need improvement.
For my second recommendation, in order to help with the problem with business having trouble with keeping employees motivated to work for them for longer, businesses should reward employees with bonuses if they stay for x amount of year(s). This will keep employees motivated to continue working at their place of employment and decrease turnover.
...and promote retention. The key is to motivate and develop to avoid the risk for turnover.
Keeping a high turnover rate, companies will continue to lose money until they decide to deal with the issue. Through some adjustments and implementations of the programs to lower turnover rates, the company can see a significant change in their costs and what they might actually save.
Variable pay is the most effective methods to increase employee motivation and increase their productivity through overtime payment, payment with best performance and profit sharing as organizational growth.
Employee satisfaction, employee turnover, and workplace environment are inseparably linked. Workplace environments heavily influence employee satisfaction, which directly affects employee turnover rates. When employees feel they are not being supported within their first months of hire, they will inevitably leave the company. Employees want to have the security that if they need assistance, someone will be there to guide them. Therefore, it is imperative for organizations to develop a thorough onboarding program and a long-term retention plan.
In today’s highly competitive industries, companies are forced to find ways to separate themselves from their near peer rivals. Organizational success depends on it. Every strong company views their greatest resource as their workforce and the contributions they make daily in achieving strategic objectives. It is critical for a company to find and sustain top candidates to build a high-performance team. One way to successfully recruit desirable applicants is by offering a relevant and generous compensation and benefits plan. Pay and benefits may be the deciding factor between an employee signing with a company or going to their largest competitor. Human resource managers within the business are responsible for creating a flexible and attractive pay and benefits package that is appealing and comparable to market standards, but within fiscal limits. An organization’s competitive advantage is driven by their compensation strategy and its effect on employee motivation and retention.
Volunteering enables a person to develop new skills that he or she would otherwise not have been able to develop. Unlike most other organizations, a charitable organization is happy to give positions to passionate, though inexperienced, individuals who desire to help others and benefit the community. Therefore, an individual with little experience in a field of work can gain meaningful skills that he or she can use in the future. For example, while I volunteered at the hospital this summer, I learned about the daily work lives and professional duties of doctors and nurses. Had I not volunteered, I would not have learned about these things. I was always interested in the medical field, but volunteering at the hospital let me explore my interests and en...
Because of this, many employees tend to leave when they have found a job with higher pay. This increases the training costs for their employees, as they tend to not stay for too long.
As I researched and viewed my topic, I realized that retention is broader then I thought. All along I thought retention was just about retaining employees but I found out the system to retain employees and it’s factors. I found the key elements that effect retention to be very interesting. I didn’t know that retention can be broken down into to 3 dimensions which are social,mental,and physical. The social consist of the contact with people, mental consist of work characteristics, and physical consist of working conditions and pay. These three elements show that retention can be broken down psychologically. Since the terms can be broken down psychologically, it allows an employee to look into retention more closely. I
An important part of the retention of staff, reducing staff turnover and minimising absenteeism at work is ensuring that staff are properly motivated. This is not as easy as it sounds. At first glance, you might be tempted to think that merely increasing wages is the way to motivate! Not so. Most thinkers on the subject would argue that motivation is a far more complex issue than merely 'money'.