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retention and motivation
Who is to blame in the organisation where turnover is high?
When an organization hires individuals who are knowledgeable, it is more likely that such individuals will create firm-level capabilities that act as a source for competitiveness and overall performance. So, to foster innovative thinking and learning as well as retention throughout their organization, leaders have “to improve their actions as a consequence of reflection on new knowledge and understanding” (Fiol and Lyles, 1985). To that effect, leaders (of course supervisors are also in this category) should be ready and willing to learn as well as consider their subordinates as learners; not crucifying them for the mistakes they make and for being risk takers (Laureate Education, n.d.) lest they quit... What is your take on this?
Yes they did because they had implemented almost all of the important motivational factors needed to retain an employee.
Two companies that i would love to work for would be : Linkedin Yahoo Both of these companies are completely very work friendly environment and have a very flexible way of working out things. The employees are very well paid and also the jobs offered are very interesting and challenging.
On successful completion of this module, students will be able to: Explain the strategies and considerations in development of a retention plan.
Salaries and Benefits
As we know a comprehensive compensation plan that includes not only pay but things such as health benefits and paid time off (PTO) is the first retention strategy that should be addressed. The compensation plan should not only help in recruitment of the right people but also help retain employees. Utilizing a pay banding system, in which the levels of compensation for jobs are clearly defined, is one way to ensure fairness exists within internal pay structures. However, compensation is not everything. An employee can be well paid and have great benefits but still not be satisfied with the organization. Some of the considerations surrounding pay as a way to retain employees include the following:
Instituting a standard process. Many organizations do not have set pay plans, which can result in unfairness when onboarding (the process of bringing someone “on board” with the company, including discussion and negotiation of compensation) or offering pay increases. Make sure the process for receiving pay raises is fair and defensible, so as not to appear to be discriminatory. This can be addressed in both your compensation planning process as well as your retention plan. A pay communication strategy. Employees deserve to know how their pay rates are being determined.Transparency in the process of how raises are given and then communicating the process can help in your retention planning process. Paid time off. Is your organization offering competitive PTO? Consider implementing a PTO system that is based on the amount of hours an employee works. For example, rather than developing a policy based on hours worked for the company, consider revising the policy so that for every X number of hours worked, PTO is earned. This can create fairness for the salaried employee, especially for those employees who may work more than the required forty hours.
Training and Development
To meet our higher level needs, people need to experience self-growth. HR professionals and managers can help this process by offering training programs within the organization and paying for employees to attend career skill seminars and programs. In addition, many companies offer tuition reimbursement programs to help the employee earn a degree. Development Example Dick’s Drive-In, a local fast food restaurant in Seattle, Washington, offers $18,000 in scholarships over four years to employees working twenty hours per week. There is a six-month waiting period, and the employee must continue to work twenty hours per week. In a high turnover industry, Dick’s Drive-In boasts one of the highest retention rates around.
Thought tool You work for a small organization in the HR department. One of your web developers schedules a meeting with you, and during the meeting she says that she doesn’t see any career growth for her in the organization. As a result, she confides that she is planning to leave the organization as soon as she can find another job. She is one of the best developers you have and you would hate to lose her.
How would you handle this?
Performance Appraisals. The effectiveness of this process can contribute to employee retention, in that employees can gain constructive feedback on their job performance, and it can be an opportunity for the manager to work with the employee to set goals within the organization. This process can help ensure the employee’s upper level self-actualization needs are met, but it also can address some of the motivational factors discussed by Herzberg, such as achievement, recognition, and responsibility.
Succession planning is a process of identifying and developing internal people who have the potential for filling positions. As we know, many people leave organizations because they do not see career growth or potential. One way we can combat this in our retention plan is to make sure we have a clear succession planning process that is communicated to employees. Succession planning is sometimes called the talent bench, because successful companies always have talented people “on the bench” or ready to do the job should a key position become vacant. Succession planning must be just that: planned. This allows clear communication to the employees on how they can further develop within the organization. Succession Goals, The goals of most succession plans include the following: Identify high-potential employees capable of advancing to positions of higher responsibility.Ensure the development of these individuals to help them be “ready” to earn a promotion into a new position.Ensure diversity in the talent bench by creating a formal succession planning process.
Flextime, Telecommuting, and Sabbaticals
According to a Salary.com survey, the ability to work from home and flexible work schedules are benefits that would entice an employee to stay in their job.  The ability to implement this type of retention strategy might be difficult, depending on the type of business. A retailer may not be able to implement this, since the sales associate must be in the store to assist customers. However, for many professions, it is a viable option, worth including in the retention plan and part of work-life balance. For Example Some companies, such as US firm Recreational Equipment Incorporated, based in Seattle, offer twelve weeks of unpaid leave per year (beyond the twelve weeks required under the Family and Medical Leave Act) for the employee to pursue volunteering or traveling opportunities. In addition, with fifteen years of service with the company, paid sabbaticals are offered, which include four weeks plus already earned vacation time.
A manager can affect an employee’s willingness to stay on the job. In a recent Gallup poll of one million workers, a poor supervisor or manager is the number one reason why people leave their jobs.  Managers who use the theory X approach, communicate poorly, or are incompetent and may find it difficult to motivate employees to stay within the organization. While in HR we cannot control a manager’s behavior, we can provide training to create better management. Training of managers to be better communicators and motivators is a way to handle this retention issue.
With over nineteen thousand employees in sixty countries, Google has seen its share of retention problems.  In late 2010, people left the organization en masse to work for Facebook or Twitter.  Many who left were looking for pre-initial public offering (IPO) organizations to work with, something that Google couldn’t compete with, since it went IPO in April 2004. As a result of the high turnover, Google put its mathematical algorithms to work to determine which employees were most likely to leave, allowing HR to determine what departments to focus on in their retention plans. In 2011, Google gave every employee a 10 percent pay raise, and it continues to offer a variety of new and old perks, such as free food in any of its cafeterias, 20 percent of time to work on personal projects, and $175 peer spot bonuses. Google also offers free laundry services, climbing walls, tuition reimbursement, child-care centers, financial planning classes, and matching funds (up to $3,000 per employee) to nonprofit organizations. For all this, Google ranked number four on Fortune magazine’s list of 100 best companies to work for in 2011.  Some say it isn’t the perks, high pay, or bonuses but the company culture that Google creates. A weekly all-hands meeting with the founders, where people are encouraged to ask the founders questions, and a team focus meeting where everyone shares ideas are examples of the company culture Google creates. Google exemplifies the importance of culture in retention of employees.
Conflict Management and Fairness
Perceptions on fairness and how organizations handle conflict can be a contributing factor to retention. Outcome fairness refers to the judgment that people make with respect to the outcomes they receive versus the outcomes received by others with whom they associate with. When people are deciding if something is fair, they will likely look at procedural justice, or the process used to determine the outcomes received. There are six main areas employees will use to determine the outcome fairness of a conflict are:When we look at how our retention strategies are developed, we want to be sure they can apply to everyone in the organization.
Conflict Example, JoAnn just received a bonus and recognition at the company party for her contributions to an important company project. Another employee, Sam, might compare his inputs and outputs and determine it was unfair because he had worked on bigger projects and not received the same recognition or bonus. Some of the procedures questioned could include the following:We should be sure that policies and processes are clearly communicated. These types of policies should be revisited yearly and addressed in the retention plan if it appears they are causing employee dissatisfaction.
In addition to a sense of fairness within the organization, there should be a specific way (process) of managing conflict. If the organization is unionized, it is likely a grievance process is already in place to handle many types of conflicts. There are four basic steps to handle conflict:
Discussion. The individuals in conflict should try to handle the conflict by discussing the problem with one another. Recommendation. A panel of representatives from the organization should hear both sides of the dispute and make a recommendation. Mediation, a neutral third party from outside the organization hears both sides of a dispute and tries to get the parties to come to a resolution. Arbitration, an outside person hears both sides and makes a specific decision about how things should proceed.
Job Design, Job Enlargement, and Empowerment
Job enrichment means to enhance a job by adding more meaningful tasks to make the employee’s work more rewarding. For example, if a retail salesperson is good at creating eye-catching displays, allow him or her to practice this skill and assign tasks revolving around this. Job enrichment can fulfill the higher level of human needs while creating job satisfaction at the same time. In fact, research in this area by Richard Hackman and Greg Oldham  found that employees need the following to achieve job satisfaction: One of the reasons for job dissatisfaction is the job itself. Ensuring we are appropriately matching skills with the job when we do our initial hiring is important. Revisiting the recruitment plan and selection process should be a consideration.Job enlargement, defined as the adding of new challenges or responsibilities to a current job, can create job satisfaction. Assigning employees to a special project or task is an example of job enlargement. Be cautioned, though, that some employees may resent additional work, and job enlargement could actually be a de-motivator. Otherwise, knowing the employee and his or her goals and adding work that can be an end to these goals is the best way to achieve retention through job enlargement.Employee empowerment involves employees in their work by allowing them to make decisions and act upon those decisions, with the support of the organization. Employees who are not micro-managed and who have the power to determine the sequence of their own work day, for example, tend to be more satisfied than those who are not empowered. Empowerment can include the following:Encourage innovation or new ways of doing things.Make sure employees have the information they need to do their jobs.Use management styles that allow for participation, feedback, and ideas.
A pay-for-performance strategy means that employees are rewarded for meeting preset objectives within the organization. styles that allow for participation, feedback, and ideas from employees. Performance ExampleIn a merit-based pay system, the employee is rewarded for meeting or exceeding performance during a given time period. Rather than a set pay increase every year, the increase is based on performance. Some organizations offer bonuses to employees for meeting objectives, while some organizations offer team incentive pay if a team achieves a specific, predetermined outcome. For example, each player on the winning team of the 2010 US NFL Super Bowl earned a team bonus of $83,000,  while the losing team of the Super Bowl took home $42,000.Players also earn money for each wild card game and payoff game. Some organizations also offer profit sharing, which is tied to a company’s overall performance. Gain sharing, different from profit sharing, focuses on improvement of productivity within the organization. To make sure a pay-for-performance system works, the organization needs to ensure the following:Standards are specific and measureable.The system is applied fairly to all employees.The system is communicated clearly to employees.The best work from everyone in the organization is encouraged.Rewards are given to performers versus nonperformers.The system is updated as the business climate changes.There are substantial rewards for high performers.
Work-life balance discussions originated during the 1960s and 1970s and pertained mostly to working mothers’ meeting the demands of family and work. During the 1980s, the realization that meeting a work- life balance is important (for all, not just working mothers) resulted in companies such as IBM implementing flextime and home-based work solutions.
The growing awareness of the work-life balance problem continued into the 1990s, when policies were developed and implemented but not acted upon by managers and employees, according to Jim Bird in Employment Relations Today. 
Other Retention Strategies
According to Fortune’s “100 Best Companies to Work For,”  retention strategies that are more unusual might be part of your retention plan. Some strategies from the list include the following:
On-site daycare or daycare assistance
Gym memberships or on-site gyms
On-site dry cleaning drop-off and pickup
Car care, on-site once a week
On-site doggie daycare
On-site yoga or other fitness classes
Employees work half days on Fridays during the summer
Various support groups
Allowance for fertility treatment
On-site life coaches
Peer-to-peer employee recognition programs
Management recognition programs
Recall, Do you feel your current or past organization did a good job of reducing turnover? Why or why not?
EXERCISE Research two different companies you might be interested in working for. When reviewing their list of benefits, which ones are offered that might motivate someone to stay with the organization?
Once you determine the employee’s level of satisfaction through exit interviews and surveys and understand motivational theories, you can begin to develop specific retention strategies.
Of course, salary and benefits are a major component of retention strategies. Consistent pay systems and transparent processes as to how raises occur must be included in a retention plan (and compensation strategy).
Training and development meets the higher level needs of the individual. Many companies offer paid tuition programs, reimbursement programs, and in-house training to increase the skills and knowledge of the employee.
Performance appraisals provide an avenue for feedback and goal setting. They also allow for employees to be recognized for their contributions.
Succession plans allow employees to see how they can continue their career with the organization, and they clearly detail what employees need to do to achieve career growth, without leaving your organization.
Flextime and telecommuting options are worth considering as an addition to your retention plan.
These types of plans allow the employee flexibility when developing his or her schedule and some control of his or her work. Some companies also offer paid or unpaid sabbaticals after a certain number of years with the company to pursue personal interests.
Since one of the reasons people are dissatisfied at their job is because of the relationship with their manager, providing in-house training to all management team members to help them become better communicators and better managers can trickle down to the employee level, creating better relationships and resulting in better retention and less turnover.
Reviewing company policies to ensure they are fair can contribute to better retention. For example, how projects are assigned or the process for requesting vacation time can contribute to dissatisfaction if the employee feels the processes are not fair.
Review the job design to ensure the employee is experiencing growth within their job. Changing the job through empowerment or job enlargement to help the growth of the employee can create better retention.
Other, more unique ways of retaining employees might include offering services to make the employee’s life easier, such as dry cleaning, daycare services, or on-site yoga classes.
1] “The Knowledge of Pay Study,” WorldatWork and The LeBlanc Group LLC, 2010, accessed February 26,
 William J. Rothwell and H. C. Kazanas, Building In-House Leadership and Management Development Programs: Their Creation, Management, and Continuous Improvement(Westport, CT: Quorum Books, 1999), 131.
 “Employee Job Satisfaction and Retention Survey, 2007/2008,” Salary.com, 2008, accessed February 26,
 “No. 1 Reason People Quit Their jobs,” AOL News, Netscape, n.d., accessed July
 “Our Philosophy,” Google, n.d., accessed July 28, 2011,
 Ben Popper, “Why Google’s Retention Plan Backfired,” CBS Business Network, September 16, 2010, accessed July 28, 2011, http://www.bnet.com/blog/high-tech/why-googles-retention-plan-backfired/1172
 “100 Best Companies to Work For,” CNN Money, 2011, accessed July 28,
 Robert N. Ford, Motivation through the Work Itself (New York: American Management Association, 1969); William J. Paul, Keith B. Robertson, and Frederick Herzberg, “Job Enrichment Pays Off,” Harvard Business Review, March-April 1969,
 Darren Rovell, “How Much Do Players Get Paid for Winning the Super Bowl?” CNBC Sports, January 18, 2011, accessed July 29,
 Jim Bird, “Work-Life Balance: Doing It Right and Avoiding the Pitfalls,” Employment Relations Today 33, no. 3 (2006), reprinted on WorkLifeBalance.com, accessed July 29,
 Karol Rose, Work-life Effectiveness: Bottom-line Strategies for Today’s Workplace(Scottsdale, AZ: World at Work Press, 2006).
 “Pay and Benefits: Total Rewards at REI,” Recreational Equipment Incorporated, n.d., accessed July 29, 2011,
 “Vans, Quiksilver, and California Top Skate Companies Offer Dream Careers to FIDM’s Graphic Design SchoolGrads,” Fashion News, June 4, 2011, accessed July 29, 2011,http://www.fashionnews.com/2011/06/04/vans-quiksilver-californias-top-skate-companies-offer-dream-careers-to-fidms-graphic-design-school-grads
 “100 Best Companies to Work For,” CNN Money, 2011, accessed February 26,
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