Factors Affecting To Employee Retention In A Supportive Work Environment

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Employee retention is basically mean “intention and interest of employees to remain in the current workplace when they are encouraged to remain in the organization for a long period or until the ongoing project complete in other words contract employees. Humans are an asset to the organization which impacts majorly. It is a mandatory requirement in an organization to retain those human assets. Firstly, needs to identify the main organizational facts that will affect employee retention in an organizational and also how are those affected to employee retention. As per the study of (senevirathna, 2017) compensation, work life balance and working environment were noted directly has an impact to employee retention.

As the first factors compensation was based on the amount of both financially and non-financially remuneration provided to employees by their employers in payment for their valued service (Osibanjo, 2014). Compensation includes basic wage, incentives, transport allowance, medical allowance and other bonuses. On one hand compensation is a motivation but in other hand employees who have valued higher financial incentives as part of their compensation package had a higher percentage of voluntary turnover, showing that compensation plays a significant role in retention.

As (Hudson, 2005) cited work life balance is stability between professional life and personal life. With the time work life balance has become a highly significant factor in today’s professionals in an organization. Unlike earlier generations today’s corporate workers expect flexible work schedules that help their professional and personal lives (Ellenbecker, 2004). Companies which offer work life balance helps their employees to fulfill their family responsibilities and reduce level of stress.

Working environment is another factor that affects employee retention. It is described as one that provides a friendly and healthy working atmosphere, sufficient resources and some level of flexibility (senevirathna, 2017). Employees benefit from an environment that gives them a sense of loyalty, which encourages them to stay dedicated and loyal to the workplace for a longer period (Ishrad, 2014). Contrastingly mentioned if the company do not pay attention to the working environment it will have a negative impact on satisfaction and success of employees also the lower retention rates (Raziq, 2015).

Conclusion

Retaining worker become a must in today’s competitive business world. Initially compensation was proven that major factor that affects employee retention. Unlike past generation workers’ today’s workers do not take money as an essential thing but it is only one factor among many that must be considered such as work life balance. Referring to work life balance it is identified as a major factor in employee retention. It helps stay loyal and committed to work place. Thirdly work environment is clearly identified that a better working atmosphere should provide workers with a comfortable working environment, sufficient facilities and flexibility. As a result, rather than changing these factors separately, a successful change in all of them together would help organizations to achieve employee satisfaction and minimize cost pressures and operational disruptions.

References

Ellenbecker, C., 2004. A theoretical model of Job Retention for Home Health Care Nurses. Journal of Advanced Nursing, Volume 47(1), pp. 303-310.

Hudson, 2005. Why employees walk: 2005 retention initiatives report. The Hudson employment report, s.l.: s.n.

Ishrad, M., 2014. Factors affecting employee retention: evidence from literature review. Abasyn Journal of Social Sciences, Volume EBSCOhost. 4(1), pp. 84-97.

Osibanjo, O. A. A. F. H. H. P., 2014. Compensation package: a strategic tool for employees’ performance and retention. Leonardo Journal of Sciences, pp. 65-84.

Raziq, A. M. R., 2015. Impact of working environment on job satisfaction. Procedia Economics and Finance, Volume ScienceDirect. 23(1), pp. 717-725.

senevirathna, E., 2017. Factors affecting employee retention.

 

Comments

  1. Hansika SamarakoonMay 1, 2021 at 2:07 AM

    According to Smith, P. G. (2020) “Transforming the workforce from High Turnover to High Retention”, there are attributes are essential to a high –retention organization. i.e. Clearly outlined structure direction and purpose, Caring management, Flexibility in advantages, Open, easy communication, Energetic and passionate work surroundings, Effective performance appraisals, Rewards and recognition, Training and development, Paying competitive wages, Respecting staff, Retention bonuses

    ReplyDelete
  2. HR ZONE JINODAMay 3, 2021 at 6:55 AM

    In today’s competitive environment employees leave their organization for various reasons. As the knowledge of employees have become highly important in gaining competitive advantage in today's business environment (Hall, 1993). The organizations are trying to retain the best employees. The Importance of HR and their retention is established. Initially because resources are scarce and secondly because the competition by businesses to have the best and most talented employees for their organization (Chambers et. Al., 1998) and finally because Turnover also destroys the customer confidence in the company (Koys, 2001). Customers don’t want to teach about their needs to the new employees. So it is better to retain employees that can retain customers.

    ReplyDelete
  3. HR Times- Isuru WijayalathMay 6, 2021 at 4:45 AM

    Workplace environment includes the condition or environment under which employees have to work. This includes matter such as permitted breaks, the state of heating, lighting and ventilation of workplaces, the safety and comfort of machinery, vehicles, and other equipment, normal manning levels, and disciplinary procedures supervision, compensation packages, communication and other benefits.

    ReplyDelete
  4. Apsara RajapakshaMay 6, 2021 at 8:09 AM

    Good article. Followings are the some benefits of employee retention in an organization.
    • Reduced Turnover Hassle.
    • Improved Morale.
    • Reduced Acquisition and Training Time.
    • Dedicated Company Experts.
    • Increased Overall Productivity.
    • Reduced Costs.

    ReplyDelete
  5. KD JayakodyMay 8, 2021 at 11:33 AM

    Employees are not expected to stay in their positions for decades. Employers face retention challenges in excess of four-fifths of cases. Turnover has an effect on an organization's performance. Competition for skilled workers continues to grow, making management more challenging.

    ReplyDelete

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