Retention strategy

Retention strategies are policies and plans that organizations follow to reduce employee turnover and attrition and ensure employees are engaged and productive long-term.

1. Retention Strategy

2. INTRODUCTION Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee’.

3. DEFINITION: RETENTION STRATEGIES Retention strategies are policies and plans that organizations follow to reduce employee turnover and attrition and ensure employees are engaged and productive long-term. The key challenge for businesses is ensuring a retention strategy aligns with business goals to ensure maximum return on investment.

4. What makes employee leave? Job is not what employee expected. Stress of overwork. Lack of appreciation New job offer. Lack of teamwork. Poor fit with the organizational climate and culture. Poo r alignmen t between pay an d performance

5. Retention Process

6. Key Retention Strategies Offer Compensation – Attractive And Competitive: Fair compensation alone does not guarantee employee loyalty, but offering below-market salaries makes it muc h mor e likel y tha t employee s wil l loo k for greener pastures. Benefits Need To Be Quantified And Qualitative: Although benefits are not a key reason why employees stick with a company, the benefits you offer can't be markedl y wors e tha n thos e offered by your competitors and like minded industries. E.g. Medical insurances, Corporate Credit cards and Discount Coupons

7. Train your front-line, managers and administrators: It can't be said repeatedly that people stay or leave because of their bosses and not the companies. Improve managers' leadership, communication and interpersonal skills through coaching, training and feedback . Clearly define Roles and Responsibilities : Make sure your employees know what is expected of them every day, every month and every year, what types of decisions they are allowed to make on their own, and to whom they are supposed to report. Provide clear vision, and consistent communication, teamwork and respect for human capital' efforts.

8. Enhancement, Advancement And Progression Opportunities . To foster employee loyalty, implement a career ladder and make sure employees know what they must do to earn and go in for progression. A clear professional development plan gives employees an incentive to stick around. Conduct regular performance reviews to identify employees’ strengths and weaknesses. Offer retention bonus. Employee longevity typically is rewarded with an annual raise and mandatory vacation time after three, five or ten years. But why not offer other seniority- based rewards such as a paid membership in the employee's professional association after one year, a paid membership to a local etc.

9. Retention strategies implementation needs to have a process owner . Measure your turnover rate and identify a process owner responsible for containing it. If customer returns, in-house rejections and non-confirming products can have a process owner as a countermeasure why not a process owner for implementation of retention strategies? Teamwork And Cross Functional Teams. It takes effort to build an effective team, but the result is greater productivity, better use of resources, improved customer service and increased morale. Give great emphasis on cross functional approach as it endorses acceptance and accountability,

10. Fun Is Must. Celebrate successes and recognize when milestones are reached. Buffet lunches, birthday parties, employee picnics and creative contests will help remind people why an organization is a great place to work. Include fun elements at work like Parties, bashes, outings, picnics etc. Offer Growth : People want to get better. They stay longer at place that offer education, cross-training, mentoring, tuition plan, career counseling, advancement and opportunity to run projects or to act on their own ideas.

11. Transparency in communication . Employees are more loyal to a company when they believe management or those at the helm of affairs keep them informed about key issues. That means that you regularly keep our people up to date with important events affecting the company. If November was good, let them know, and while you're at it, tell them what you expect to happen in December. Encourage higher learning . Create opportunities for your key performers and technologists to grow and learn. Encourage every employee to learn at least one new thing every week, and you'll create a work force that is excited, motivated and committed.

12. Develop an effective induction program. Implement a formal orientation program that's at least a week long and includes a thorough overview of every area of your department and an introduction to other departments Value your employees. Recognize outstanding achievements promptly and publicly, but also take time to comment on the many small contributions your staff makes every day to the organization's vision, mission and growth. DON’T FORGET — THESE ARE THE PEOPLE WHO MAKE YOU LOOK GOOD!

13. IMPORTANCE OF RETENTION STRATEGIES Manage Employee Turnover Employers implement retention strategies to manage employee turnover and attract quality employees into the organization. Retention programs focus on the relationship between management and their workers. Competitive pay, benefits, employee recognition and employee assistance programs are all apart of a company's attempt to maintain employee satisfaction. Cost Effective A company can significantly benefit from employee retention programs because of a direct effect on an employer’s bottom line. High turnover can be very expensive. According to the Society for Human Resources Management, “employee replacement costs can reach as high as 50 to 60 percent of an employee’s annual salary.” Strategies geared towards retaining good workers helps offset employee replacement costs and reduces the indirect costs such as decreased productivity and lost clients.

14. Maintain Performance And Productivity Employee retention practices help support an organization’s productivity. Recruiting and training new employees takes time. An unfilled position means work is not getting done. Even if a position is filled, there is still a learning curve most employees must overcome before their work becomes profitable. Taking the necessary steps to keep current workers satisfied with their roles will ensure productivity is not interrupted. Enhances Recruitment Effective retention strategies often begin during the employee recruitment process. Employees are more inclined to remain with a company that fulfills the promises made when their employment offer was extended. Companies that provide a realistic view of their corporate environment, advancement opportunities and job expectations to new hires can positively influence employee retention.

15. Increases Morale Employees that enjoy what they do and the atmosphere in which they work are more likely to remain employed with their company. Retention strategies are important because they help create a positive work environment and strengthen an employee’s commitment to the organization. Strategies that target employee engagement, such as team-builders and community involvement, increase company morale and give employees a sense of pride in what they do.

16. CASE STUDY ON MCDONALDS AND GOOGLE

17. MC DONALDS McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona. In 1955, Ray Kroc, a businessman, joined the company as a franchise agent and proceeded to purchase the chain from the McDonald brothers. McDonald's had its original headquarters in Oak Brook, Illinois, but moved its global headquarters to Chicago in early 2018. McDonald's is the world's largest restaurant chain by revenue, [ serving over 69 million customers daily in over 100 countries across 37,855 outlets as of 2018 .The McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. According to two reports published in 2018, McDonald's is the world's second-largest private employer with 1.7 million employees (behind Walmart with 2.3 million employees).

18. RETENTION STRATEGY OF MC DONALD’S McDonalds provides high levels of training to its employees working in various positions at the restaurants. This helps in reducing staff turnover and lowers the turnover costs. Employees that perform well are given recognition by awarding them with ‘Employee of the month’. It provides medical insurance and offers health care. McDonalds now gives quarterly bonus to its crew and manager’s instead of yearly bonus, this was a step taken towards motivating it’s employees. The organization gives five weeks holiday per annum and have increased that to six weeks . Computerized English language classes are conducted; this can be enjoyed by the crew members between shifts.

19. McDonald’s aims to provide Apprenticeships to up to 6000 of its 72,000 UK workforce and later will be increased to 10,000 from . This will give the staff an opportunity to gain valuable and nationally recognized qualification that is equivalent to five GCSE grade A*-C. McDonald’s senses the importance of investing in their staff says the Senior Vice President David Fairhurst of McDonald’s UK. This has been done purely to retain the existing staff and also to attract new ones towards working for McDonald’s, which, is a global brand name.

20. GOOGLE Google is an American multinational technology company that specializes in Internet-related services and products, which include online advertising technologies, search engine, cloud computing, software, and hardware. It is considered one of the Big Four technology companies, alongside Amazon, Apple, and Facebook. Google was founded in September 1998 by Larry Page and Sergey Brin while they were Ph.D. students at Stanford University in California. It offers services designed for work and productivity (Google Docs, Google Sheets, and Google Slides), email (Gmail), scheduling and time management (Google Calendar), cloud storage (Google Drive), instant messaging and video chat (Duo, Hangouts), language translation (Google Translate), mapping and navigation (Google Maps, Waze, Google Earth, Street View), video sharing (YouTube), note-taking (Google Keep), and photo organizing and editing (Google Photos). The company leads the development of the Android mobile operating system, the Google Chrome web browser, and Chrome OS, a lightweight operating system based on the Chrome browser.

21. RETENTION STRATEGY OF GOOGLE Google’s compensation packages are the main HRM tool that the company uses for retaining high-quality human resources. The company’s compensation packages are competitive and above average. For example, Google provides high salaries and wages. In addition, employees get free meals and other incentives and benefits.

22. The typical design of the company’s offices emphasizes fun and creativity, which attract and retain creative and innovative workers. Google’s human resource management uses coaching and mentoring to retain and develop employees with leadership potential.