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Career Tip |
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Plan Your Career
move carefully and don't just shift from one job to another
for the smallest of reasons! |
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Employee Retention Tools
In the present scenario, world is
turning into a global village and the whole globe is reachable from
any destination. In this small world even companies are reachable to the
people and vice versa. And so their jobs are also easily accessible for
everyone. In this situation, the biggest challenge for a company is to
retain its workforce intact especially the Knowledge Banks.
All the companies are planning to increase
their turnover every moment of time. While in all this workout of
increasing the turnover they forget about their loss incurred by the
resignation of employees and the expenses of hiring new employees (Hiring
Cost, Training Cost, Productivity Loss etc.). This hiring of a new
employee normally costs around 35% or more of the average employee salary.
For example- let us consider average salary of an employee per year as
Rs.20, 000, and then the cost of hiring a new employee and other expenses
come around Rs.7, 000. If you have 2 employees resigning per month the
cost comes to Rs.14, 000 and taking the same for 12 months comes to around
Rs.168, 000, which is a direct loss from the turnover of the company. And
after all this there is always a risk of getting a right employee for the
right position with a right attitude.
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If an employee resigns, then good amount of time is lost in hiring
a new employee and then training him/her and this goes to the loss of the
company directly which many a times goes unnoticed. And even after this
you cannot assure us of the same efficiency from the new employee (He
might be better and might not be). You require time to judge his
capabilities and work nature. The loss is even graver if he/she is Your
Knowledge Bank, this can bring your process to a stand still even. And
above all these things, one resignation many a times triggers a chain
reaction among other employees, leading to a negative effect. |
For all these and many other reasons you need to retain your employees.
For retaining your employees, you need to understand the requirements
of the employees and at the same time should make them clear about the
expectations of the company from them. It’s a general human tendency that
each human being thinks himself as important and expects the same from the
other side, so the company management should make their employees
accountable for their respective jobs and make them feel that they are
very important for the smooth processing of that process(At the same time
create a backup for him). Care and importance are two things of which
every human being is mad of.
Below are few of the tools for Employee Retention:-
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1.
Employee Reward Program-
You can make a provision of Monthly or
Quarterly Award (depending upon the budget) for the best employee,
Awarding 2 or 3 best workers each month. The award can be in terms of
gifts or money.
If it is money then it should be divided into
two parts, first part to be given with the next month salary and the
remaining after 6 months. In this way he/she can be retained for 6 more
months. These rewards shall be considered at the time of appraisal. |
2.
Career Development Program-
Every individual is worried about his/her career. You can provide them
conditional assistance for certain courses which are beneficial from your
business point of view. Conditional assistance means the company will bear
the expenses only if he/she gets an aggregate of certain percentage of
marks. And entrance to that course should be on the basis of a Test and
the number of seats to be limited. For getting admitted to such program,
You can propose them to sign a bond with the company, like they cannot
leave the company for 2 years or something after the successful completion
of the course.
3.
Performance based Bonus-
The employee always comes to know about
the profit of the company which is of course based on the strategic
planning of the top management and the productivity of the employee. To
get more work out of the employee, You can make a provision of Bonus. By
this employee will be able to relate himself with the company’s profit and
hence will work hard. This bonus should be productivity based. You can
make sure that this bonus is not adding extra-pressure on the budget of
Your Company and you can arrange this by cutting a part of the salary
hikes and presenting it to the employees in the form of bonus.
4. Employee Referral Plan- You can introduce Employee Referral
Plan. This will reduce your cost (charges of external consultants and
searching agencies) of hiring a new employee and up to an extent you can
rely on this new resource. On every successful referral, employee can be
given a referral bonus after 6 or 9 months of continuous working of the
new employee as well as the existing employee. By this you can get a new
employee at a reduced cost as well as are retaining the existing one for a
longer period of time.
5. Loyalty Bonus- You can introduce a Loyalty Bonus Program in
which you can reward your employee after a successful completion of a
specified period of time. This can be in the form of Money or Position.
This will encourage the fellow employees as well whether they are
interested in money or position, they will feel fascinated.
6.
Giving a voice to the Knowledge Banks- First of all you should
try to retain your workforce intact, as they are the intellectual asset of
the company. And above that you can’t afford losing your knowledge banks.
These are the people who stabilize the process. You can involve them in
some of the decisions.
7. Employee Recreation- You should also let your employees enjoy in
a light mood. You can take your employees to a trip or for an outing every
year or bi-yearly. You can make use of this trip as well. You can start
this trip with an opening note about the management views and plans,
strategies etc. At the same time you can involve your top management into
some of the fun activities as this will make feel the employees that they
are very close to the management and everybody is same.
8.
Gifts at some Occasions- You can give some gifts at the time of
one or two festivals to the employees making them feel good and understand
that the management is concerned about them.
9. Accountability- You should make each employee accountable so
that he can also feel that he is as important as his manager. If he/she
will be filled with this sense, he/she will seldom think of leaving the
company.
10. Making the managers effective and easily accessible- You should
make the management easily accessible so that the employee expectations
can be clearly communicated to the top management, as it is impossible for
the top management to reach each employee frequently.
11. Surveys- You should conduct regular surveys for feedbacks from
employee about their superiors as well as other issues like food,
development plans and other suggestions. This will make them feel of their
importance and the caring nature of the company. Some of the suggestions
might be of real good use for the company.
For a company, the workforce is like an intellectual property, both
in terms of skills and money. A trained and content workforce can lead a
company to new heights while a opposite one can hamper it badly. So, every
resignation saved is every dollar earned.
Contributing Writer: Rohit Minton
is working as Assistant HR in the Group HR department of the Amicorp
group. He has done his bachelors in Spanish Language and is now pursuing
his MBA in HRD.
minton.rohit@gmail.com +91 9845676315
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