The Relationship between Successful Employee Retention and Efficient Human Resource Management

By

ACKNOWLEDGEMENT

I will be taking up this opportunity to show my gratitude towards each and every individual contributing towards this research work, in one way or the other. I am very grateful to my research facilitator and supervisor for his guidance, and my friends and family for their ultimate guidance and support. Without them, this research project would have never been completed in such a limited timeframe and in such an effective manner.

DECLARATION

I, (Name), hereby declare that all the contents and information presented in this dissertation is representing my very own work, and this dissertation has never been submitted or presented to any academic authorities or institutions for the sake of academic assessment for acquiring any certification or qualification. Additionally, this research work is the representation of my personal opinions and judgement, not the view and believes of the institution.

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ABSTRACT

In this study we try to study the relationship between successful employee retention and efficient human resource management. The researcher did in depth study to reach to meaningful conclusion. The researcher used mixed research to conduct the research. The research questions included what is employee retention? How important employee retention is for organization? How organization can retain employees? And what are the factors which affect the employee retention?

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

LIST OF FIGURESVII

CHAPTER 1: INTRODUCTION1

Background1

Significance1

Purpose2

Research aims and objectives3

Research questions3

Rationale3

Expected Findings5

Brief Literature Review5

Dissertation Structure7

CHAPTER 2: LITERATURE REVIEW8

Strategies for employee retention8

Person-Organization Fit8

Employee Retention Research10

Exit Interviews13

Incentives and Other Benefits16

Money16

Training and Advancement17

Informal Rewards19

Formal Rewards19

Fringe Benefits20

Profit Sharing21

Stock Options21

Wage-Tenure Contracts22

Employee Retention: Basic Concepts22

Recruiting23

Training24

Communication24

Pay and Benefits25

Job Satisfaction25

Factors Driving Job Satisfaction and Employee Turnover26

Summary27

CHAPTER 3: METHODOLOGY29

Introduction29

Research Design30

Data Collection Instrument31

Data Analysis31

Role of the Researcher31

Gantt Chart32

Reliability/Dependability32

Ethical Considerations34

CHAPTER 4: DISCUSSION AND ANALYSIS35

Questionnaire Analysis35

A.Benefits35

B.Organizational Culture40

C.Employee Retention45

Discussion49

Causes of Low Employee Retention49

Recommendations for Retaining Employees50

CHAPTER 05: CONCLUSION57

Recommendations for the Employers59

Future Research60

REFERENCES62

APPENDIX73

Questionnaire73

LIST OF FIGURES

Figure 1: Compensation and Salary35

Figure 2: Leave Benefits (Including paid holidays, vacations, personal and sick)36

Figure 3: Plan for Retiement37

Figure 4: Benefits associated with Health (Prescription, dental, vision and health insurance)38

Figure 5: Employee Assistance Program (EAP)39

Figure 6: Development plans discussion with the employees40

Figure 7: Involvement of employees in assignments and group tasks, irrespective of their core responsibilities41

Figure 8: Development plan for career42

Figure 9: Communication with supervisors43

Figure 10: Open Environment44

Figure 11: Personal development and growth opportunities45

Figure 12: Feeling of accomplishment from the job46

Figure 13: Future job security47

Figure 14: Benefits and fringes48

Figure 15: Fair treatment and respect from reporting authority49

CHAPTER 1: INTRODUCTION

Background

Humans are the most valuable assets for any organization in this age of globalization. However, most of the managers find it hard to retain the best employees. Humans create value and good will for the company and hence it is important for the managers to retain them for the company growth. With technology and innovation, every company can make products similar or exactly same to the competitors. Hence, to create a competitive advantage over the competitors, the companies have started to compete for quality people. To retain the employees, the management must go beyond their limits because employees switch as soon as they get a better ...