Considering the increasing competition and thrive to survive, staff cut-off has risen in many organizations so that they do not deviate from the budget. As a result existing employees gets a lot of workload, disengagement and a feeling that they are under-valued. Subsequently a perception of low job satisfaction arises and they start looking for a better opportunity.
Retaining potential employees is a vital and challenging task for a company HR for the reason that new hiring and training for the desired task involves a lot of costs. To reduce the overall costing, it is better to cling to the existing employee and make efforts in retaining the talent.
Following are some theories that an employers need to apply in effectively retaining valuable resources.
Valence Theory – Valence refers to the degree to which employees’ expectation matches the organizational rewards. It is very important for managers to maintain this valence and align organizational goals with the employees’ needs in order to retain him/her with a company. For this a proper reward system has to be designed to ensure maximum employee job satisfaction. A low degree of valence means that you might be at the risk of losing a potent employee.
Equality Theory – This theory mainly deals on the basis of fairness and equality among various employees of an organization. If an employee feels that he/she is being treated unequally and a fellow employee is given more preference, then it is a sign of dissatisfaction. This matter should be seriously taken into consideration and an employer must see to it that all employees get proper recognition.
Satisfaction Theory – There are many aspects of employee satisfaction, let it be equality, rewards, office environment or sometimes hygiene. If any of it is missing, then it creates dissatisfaction among the employees. Thus, in order to ensure maximum employee satisfaction, an employer is required to take care of all these factors.
Motivation Theory – There is a direct and casual relationship between employee retention and motivation. Motivation acts as a medium for an individual’s success and growth as well. A simple recognition like “Well done” or “Keep it up” might boost up your employees’ morale and he/she will be more interested in the work.
An employer who follows all these theories is sure to retain his employees for a long time. Having that said, a fully customizable and a comprehensive HRMS tool will also be of great help to effectively handle all the HR related functions.
To wrap-up it can be said that cost-saving technique might be good in the sense of surviving the on-going cut-throat competition, but employees’ gratification shouldn’t be affected due to this. By employing a proficient HRMS, an organization not only cut on costs but even recruits, develops and preserves the most capable employees.