Company policies and procedures effect on employee retention

 

Company policies and procedures effect on employee retention

 

Abstract

Many businesses in developing countries failed to consider the most crucial factors that determine employee retention as a strategy for attaining organizational outcomes, which caused them to fall victim to regional and global industry rivalry. The goal of the study was to identify the challenges to staff retention in Sierra Leone's tertiary educational institutions. Effective employee retention strategies are essential to the growth of an organization's success, as many organizations see keeping talented and skilled employees as the fundamental building block for cost-cutting and attaining organizational goals (Researchgate.net). The most engaged employees who are familiar with the foundational elements of the company's rules and procedures will be the ones who are kept on. They are the foundation of the organization and, to a certain extent, are prepared to make sacrifices for its success.

 

What is employee retention?

By creating a nice work environment to encourage engagement, expressing gratitude to employees, offering competitive compensation and benefits, and promoting a healthy work-life balance, organizations may maintain talented and productive staff while lowering turnover.

In times of low unemployment and increased competition for talent, employers are especially interested in keeping workers on board. Organizations utilize human resources technology for recruiting, onboarding, engaging, and rewarding staff. They also provide increased work flexibility and cutting-edge perks like physical and financial wellness programs to attract and keep top talent (Baker, P. And Sutner, S., 2022).

 


Why it’s important to the organization

In order for employees to develop a sense of trust and dependability among one another, employee retention is crucial to team development and cohesiveness in the workplace (Baker, P. and Sutner, S., 2022).

When brilliant workers leave a business, one of the largest losses is diminished production and loss of competitive advantage. A company's capacity to fulfill its objective may be harmed by high personnel turnover rates owing to disruptions in continuity, the loss of institutional knowledge, and the high expenses of hiring new employees and providing them with training. Additionally, losing staff can weaken morale and encourage others to leave the company.

The influence on clients who discover they're dealing with a constant stream of different individuals is another unfavorable consequence of turnover. Consumers are frequently alerted by high turnover that there is a problem with the company or brand.

 

Ways to increase retention

The following actions can help increase employee retention:

  • ·       Recognize and appreciate your staff members' efforts, and give them regular, constructive  criticism.
  • ·       Make sure your remuneration is reasonable and market-based.
  • ·       Establish a venue to promote fresh thinking and transparent dialogue
  • ·       To improve skill development, learning, and career progression, provide mentorship programs.
  • ·       Offer initiatives for wellness and health, as well as staff help
  • ·       encourage work-life balance
  • ·       Offer a choice of flexible work schedules, including the option of telecommuting.
  • ·       provide chances for leadership (Employee Retention., Hr360.com) 


Different procedures for employee retention in the companies  


Distribution of jobs, training and development opportunities, and the assessment procedure are all parts of the employee engagement process. Following the completion of the hiring procedures and the assignment of the employee's job position and related obligations, the job distribution process starts. The candidate's position is connected to training and development initiatives. The goal of training and development is to improve an employee's abilities so they can work effectively for the organization. The employee is also encouraged and developed through this procedure. The assessment process, which is the most crucial since it increases employees' morale and drive to succeed, is the last step (IceHrm 2022). 

 

Guidelines

The entire system is reliant on the HR rules, which serve as the standards by which a business handles its personnel. The formal rules and programs that assist in running the business as well as the complete system are managed by HR policies. This covers all regulations pertaining to recruitment, employment, job descriptions, assessment, instruction, and incentive schemes. The employees that follow and adhere to human resource regulations tend to be more organized.

Policies must be documented on paper and kept on hand by the company. Pay policies, leave policies, work schedule policies, medical policies, facilitiy's policies, payroll policies, performance assessment policies, and several other regulations that rely on the company are all examples of personnel policies.

 

Performance appraisal form

The fundamental and most significant prerequisite for starting the evaluation process is the performance appraisal form. The main resource for choosing the evaluation procedure is this form. The form includes comprehensive information on the employee, their relationship to the business, their position, their contributions, their successes, their performance history, and any particular remarks made by the reporting person. Either the employer or the supervisory authority makes the appropriate evaluation. The assessment form is primarily used to assess an employee's leadership, technical abilities, and technical performance. You may use the appraisal process to decide how to execute the appraisal process by monitoring the performance of all the employees in a department.

 

Employee self-assessment

Because self-assessment is a reflection of an employee's understanding of their own performance, it is crucial for the business. Additionally, it aids in the employees' goal-setting for both themselves and the business. Additionally, this evaluation aids the company in comprehending and examining each employee's thinking. Employees may discover their skills, grow, and present those talents to management with the aid of the employee self-assessment process. Additionally, this procedure aids management in documenting all of the contributions and successes made by each employee to the business.

 

Conclusion

Any organization's senior management should constantly look into the reasons why valuable people quit their employment and find out what encourages them to do so. The primary indicator of employee turnover in a company is job satisfaction. Therefore, if solid methods are implemented, there is a chance that the firm will continue to thrive in a cutthroat, globalized economy while taking into consideration the precious personnel as a key resource.

 

Reference

Researchgate.net. Available at: https://www.researchgate.net/publication/337039813_An_Effective_Employee_Retention_Policies_as_a_Way_to_Boost_Organizational_Performance (Accessed: December 5, 2022).

IceHrm (2022) Different procedures for employee retention in the companiesIceHrm. Available at: https://icehrm.com/blog/different-procedures-for-employee-retention-in-the-companies/ (Accessed: December 5, 2022).

Baker, P. and Sutner, S. (2022) What is employee retention? Everything you need to knowHR Software. TechTarget. Available at: https://www.techtarget.com/searchhrsoftware/definition/employee-retention (Accessed: December 5, 2022).

Employee Retention (no date) Hr360.com. Available at: https://www.hr360.com/Human-Resources/Employee-Retention.aspx (Accessed: December 5, 2022).

 

Comments

  1. Policies that encourage employee loyalty and satisfaction help you prevent staff turnover. The happier your employees are at work, the less probable it is that they will leave for better opportunities.

    ReplyDelete
  2. Companies with strong Employer value proposition's (EVP) usually see higher retention rates among their quality employees.

    ReplyDelete
  3. Deshika - Effective employee retention can save an organization from productivity losses. High-retention workplaces tend to employ more engaged workers who, in turn, get more done. The guideline and the references given clearly explains the subject matter.

    ReplyDelete
  4. Good article! It's important to understand that, given enough time, individuals will always quit their existing positions. There will always come a moment when an employee organically moves on, no matter how productive they are in that role or how much support and advice their management gives them.

    ReplyDelete

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