Currently, managers become more concerned with attraction and retention of high-quality employees. In a current global competitive environment, companies’ success highly depends on ability to acquire and retain human capital. Many industries currently face labor shortages and high employees’ turnover. To reduce these issues, companies develop various human resources policies and practices. In addition to company’s performance, employee turnover is important for individuals who leave the job. It is stressful for people to give up their places of employment. In the immediate future employee retention will remain among the critical workforce management challenges.
The purpose of this essay is to address employees’ retention at the local petrochemical company. The company is a start-up which aims to grow and develop into a significant market player. The company faces high employee turnover. Currently the company employees young people, who leave the company when gain experience. Broadly speaking, 70% of employees are aged between of 22-30. There are different stakeholders in the company which require suggestions on the issue. To provide them with sound solutions, primary qualitative data was collected and respective conclusions were made.
It is argued that high rates of voluntary turnover are harmful to firm performance (Holtom et al 240). However, not all turnover is bad. When poor performers leave the company, it enhances the overall effectiveness. Managers should always make a distinction between avoidable and unavoidable turnover. For all companies, there are financial costs associated with turnover. They relate to time and financing spent on recruitment, selection, temporary staffing and training (Holtom et al 240). These costs may be also associated with losses of customer service and implicit knowledge. Estimates of such costs vary from a few thousand dollars to more than two times the person’s salary (Holtom et al 241). These figures depend on the industry and labor market competition. According to the available research, employees can be divided into people who are engaged, not engaged and actively disengaged (Holtom et al 235). The former group of employees capture loyal and productive people. The second group of employees just cope with ongoing tasks to meet the deadlines. The last group includes those who are unhappy and spread their discontent. Researches show that overall less than 30% of employees are fully engaged in their work. People in the second and third group more frequently become distracted. Their productivity is much lower. Studies demonstrate that company’s managers have a significant power to influence unwanted turnover (Holtom et al 239). This is mainly for a reason that managers are able to control factors which shape employees’ satisfaction. Such factors are as follows: recognition and feedback, possibility to learn and develop, compensation, work environment.
To enhance employees’ motivation and devotion, managers should clearly understand the needs and accomplishments of each person in the team. They should be able to listen to employees and work together with them. A successful manager is defined as a person who can can help talented people to find satisfaction in their daily work (Holtom et al …