Increasing Retention Rate of a Company
Retention of employees in companies has been a headache for human resource managers in this century. Different human resource managers use diverse criteria to ensure they keep a high retention rate of employees. Human resource managers employ several factors to ensure that there is no turnover among employees. Some of the factors include; providing guidance, creating the right culture, offer training, paying the employees on time, and providing a good working environment.
Paying the employees on time
A company may not have enough resources to offer employees huge perks and other money-related fringe benefits but paying them on time effectively increases employee retention. In addition, prompt payment of employees' salaries serves as a morale booster on the side of the people employed in that company. It is important to note that no matter the salary package an employee receives, the time of payment and its promptness will comfort the employees and have confidence in the company.
Creating the right workplace culture
Culture in an organization is very important because it silently sets beliefs about the operations of the company. For example, suppose the company has a culture of reimbursing their employees fairly and increasing salaries annually. In that case, the employees will have no worries even when th company is not having money to increase their salaries at any one point in time.
Providing guidance and counseling to employees
Turnover of employees is normally caused by work-related stress. If the company devices a mechanism of providing guidance and counseling to its workers, it will increase the company's retention rate. Organizational politics also may increase the rate at which employees exit the company. In this case, professional guidance and counseling will reduce the way the effect politics. McLeod (2010) review revealed that workplace counseling was generally effective in decreasing the levels of anxiety, stress, and depression.
Providing a good working place and environment
The workplace entails an environment in which the worker performs his work (Chapins, 1995). A good working place coupled with necessary resources and assistance reduces the employees' rate exit the company. Healthy and safe at the workplace is a morale booster to employees. If the employer does not ensure the safety of the workspaces of her employees, it will reduce the confidence of employees in their employe.
Training of workers is very important to both th employee and the employer. Training of workers at the company's expense not only increases the skills of employees but also increases the confidence of the employees in the company. In addition, periodical training boosts the morale of workers to continue to work for th company.
In summary, the retention rate of employees in an organization is a nightmare for many companies. As illustrated above increase in remuneration is not the main factor in worker retention in a company. Provision of a good working relationship, dealing with workers with respect, providing guidance, paying the workers on time, and creating a good company culture contribute to increasing retention rate in the company are very fundamental in employee retention.
Chapins, Andrew. "Workplace and the performance of workers." Reston: USA (1995).
McLeod, John. "The effectiveness of workplace counselling: A systematic review." Counseling and Psychotherapy Research 10.4 (2010): 238-248.