Staffing System and Retention Management

Organization StrategyOrganization Strategy HR and Staffing StrategyHR and Staffing Strategy

Staffing Policies and Programs

Staffing System and Retention Management

Support ActivitiesLegal compliance

Planning

Job analysis

Core Staffing ActivitiesRecruitment: External, internal

Selection:Measurement, external, internalEmployment:Decision making, final match

OrganizationMission

Goals and Objectives

Staffing Organizations Model

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Introduction

• Even the best recruitment and selection system in the world will be of little value to an organization if the new employees leave their jobs soon after being hired.

• Therefore, the establishment of effective system for retaining employees is critical part of the staffing process.

Turnover and Its Causes

• Nature of problem

• Types of turnover

• Causes of turnover

Nature of the Problem

• Employee retention can contribute to organizational effectiveness

• Turnover is not only costly but may be beneficial.• Focus of retention strategies

– Number of employees retained and– Who is retained

• Approach to retention management– Gather and analyze employees’ reasons for leaving

Types of Turnover

Types of Employee Turnover:VoluntaryInvoluntary

Types of Turnover

• Voluntary:is broken down into avoidable and unavoidable turnover.

– Avoidable - Could be prevented• Try to prevent for high value employees by certain organization

actions like pay raise or new job assignment.• Do not try to prevent for low value employees.

– Unavoidable - Could not be prevented like• (retirement, health problems).

Types of Employee Turnover -Voluntary -- Employee Initiated

Types of Turnover

• Involuntary– Discharge It is aimed at the individual employee, due to discipline

and/or job performance problems.– DownsizingMay occur as permanent or temporary employees layoffs.Typically targets groups of employees . It occurs as part of an organizational cost- reduction

program.

Types of Employee Turnover -Involuntary -- Organization Initiated

Causes of Turnover: VoluntaryCauses of Voluntary Turnover• Behavior of leaving preceded by intention to quit.• Factors affecting intention to quit

– Desirability of leaving• Often results from a poor person/job match or• Person/organization match

– Ease of leaving• Represents lack of barriers to leaving and, being able to likely find a new

job– Available alternatives

• Depends on other job options both internal andoutside organization

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Causes of Turnover: Involuntary

• Discharge turnover– Mismatch between job requirements and KSAOs

• Employee fails to follow rules and procedures• Unacceptable job performance

• Downsizing turnover– Mismatch in staffing levels which leads to an overstaffing

situation– Factors related to overstaffing

• Lack of forecasting and planning• Inaccuracies in forecasting and planning• Unanticipated changes in labor demand and/or supply

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Measurement of Turnover:Reasons for Leaving

• Important to determine, record, and track reasonswhy employees leave

• Tools– Exit interviews

• Formal, planned interviews with departing employees– Postexit surveys

• Surveys sent to employees soon after their last day– Employee satisfaction surveys

• Surveys of current employees to discover sources of dissatisfaction which may become reasons for leaving

• Results can provide information to pre-empt turnover

Most Effective Retention Initiatives

Guidelines for Increasing Job Satisfaction and Retention

Extrinsic rewards

– Rewards must be meaningful and unique

– Rewards must match individual preferences

– Link rewards to retention behaviors

– Link rewards to performance

Intrinsic rewards

– Assign employees to jobs that meet their needs

– Provide clear communication

– Design fair reward allocation systems

– Ensure supervisors provide a positive environment

– Provide programs to enhance work-life balance

Other Guidelines for Increasing Job Satisfaction and Retention

• Provide organization-specific training• Combine training strategy with a selection

strategy focused on assessing and selecting general KSAOs

• Approaches to make internal alternatives more desirable than outside alternatives:– Internal staffing

• Encourage employees to seek internal job opportunities• Provide attractive internal options