FEW ASPECTS OF EMPLOYEE RETENTION

Economic security and employee retention

To create economic security, factors that are sustainable will be important, (International Labor Organization 2004). Employees tend to stay with organizations and don't look for other jobs or even relocate to another company, industry, or countries when they feel secure financially in any country or even any business field.

Singh (2012), indicated that if the employees possess the required abilities, employee retention with economic sustainability might be attained. The high rate of staff turnover has a detrimental impact on the national and international economies from an economic standpoint.


Psychological security and employee retention

Psychological security is the first and most fundamental level of need, according to Maslow's motivation theory, which is based on the hierarchy of human needs. The idea behind this variable is based on people's capacity to sustain a steady state of normal survival requirements. It contains tangible elements like food, water, air to breathe, shelter, etc. that are essential for human survival. (Adair 2006).

Employees with stable jobs typically have secure, routine lives and can satisfactorily meet their demands and obligations in life. Being psychologically sustainable promotes high sustainability and improves worker morale and output. In the corporate world, having a suitable workplace and obtaining fair salary translate into psychological stability. Without these elements, workers will be forced to seek employment that can meet their psychological demands (Hanif, Khalid & Khan 2013).


Affiliation and employee retention

The McClelland theory of needs tries to understand and anticipate an individual's behavior and performance in light of those needs. These requirements have been divided into three levels: those for achievement, power, and affiliation. Affiliation seekers are continually striving for healthy relationships with other people, while achievement seekers are constantly trying to outperform their competition, and the people who crave power want to be in charge and have authority (Royle & Hall 2012).

In general, the need for affiliation involves becoming more socially focused, spending more time in interpersonal interactions, working in groups, and wanting to be loved. Additionally, it pursues group activities where cooperation and reciprocity are crucial (Yamaguchi 2003).


Self-Actualization and employee retention

A person must look beyond a homeostatic condition, be more creative, and have peak experiences, which are empowering encounters that enable a person to realize their potential. Self-actualized people are more productive and imaginative (Maddi 1996).

In the business world, self-actualization can be attained through feeling satisfied with employing an employee's abilities and potential. This may occur when a company's executives and managers encourage employees to work more productively and with higher motivation (Hanif et al. 2013).

 

References

  • Adair, J. E. (2006). Leadership and motivation: The fifty-fifty rule and the eight key principles of motivating others. Kogan Page Publishers.
  • Hanif, A., Khalid, W., & Khan, T. N. (2013). Relating Maslow's hierarchy of needs with employee turnover and retention: case study of local telco. International Journal of Human Resource Studies, 3(2), 51.
  • International Labor Organization. (2004). Economic Security for a Better World. Geneva.
  • Maddi, S. R. (1996). Personality theories: A comparative analysis. Thomson Brooks/Cole Publishing Co.
  • Royle, M. T., & Hall, A. T. (2012). The relationship between McClelland’s theory of needs, feeling individually accountable, and informal accountability for others. International Journal of Management and Marketing Research, 5(1), 21-42.
  • Singh, S. (2012). Developing e‐skills for competitiveness, growth and employment in the 21st Century. International Journal of Development Issues.
  • Yamaguchi, I. (2003). The relationships among individual differences, needs and equity sensitivity. Journal of Managerial Psychology.


Comments

  1. Isuri PinnaduwaSeptember 2, 2022 at 10:35 PM

    Hi Larry, Grossman, J.(2002) stressed that Work growth is the effect of employee performance in the organization as well as the result of organizational provenance provided to employees by the organization. Growth and productivity are the ultimate results of employee behavior such as performance, retention, and satisfaction of employees.

    ReplyDelete
    Replies
    1. Larry ShanthikumarSeptember 3, 2022 at 8:07 PM

      Yes, and also, Employee Development is one of the most important functions of Human Resource Management. Employee development means to develop the abilities of an individual employee and organization as a whole so; hence employee development consists of individual or employee and overall growth of the employee as when employees of the organization would develop the organization, organization would be more flourished and the employee performance would increase (Elena P. 2000).

      Delete
  2. Dulshan EdirisuriyaSeptember 3, 2022 at 10:58 PM

    Hi Larry,
    Employee Retention is important to reduce the turnover cost and cost of recruiting and training cost of the employees. Further the employee retention is vital to reduce the talented employees being poached by the competitors (Sandhya and Kumar, 2011)

    ReplyDelete
    Replies
    1. Larry ShanthikumarSeptember 7, 2022 at 2:24 AM

      In addition to these replacement expenses, output would also either be somewhat compromised or maintained at the expenses of overtime payment. Turnover has important effects on organizations (De Micco and Giridharan, 1987; Dyke and Strick, 1990; Cantrell and Saranakhsh, 1991; Denvir and Mcmahon, 1992).

      Delete
  3. Saleem Mutaliph September 30, 2022 at 11:31 PM

    The biggest challenge that
    organizations are facing today is not only managing the human resources but also retaining them. Securing and
    retaining skilled employees plays an important role for any organization, because employees’ knowledge and
    skills are central to companies. Work-life balance is increasingly important for engagement and affects retention. (Hyman et al,2003)

    ReplyDelete

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