Employee Retention and Job Satisfaction

 Employee Retention and Job Satisfaction

In this competitive world, it is a real challenge to retain employees. Once an employee feels dissatisfied, they will move out to another competitor. Options are widely open for employees to look out for better options. Hence, it is a vital role of HR in order to retain the best-performing employees for a long period of time. They are many ways to reduce employee turnover by increasing the benefits offered to the employee. This will lead to job satisfaction and a negative figure in employee turnover. Employee turnover is costly to organizations hence, they try to create a positive work environment for their employees to increase retention and job satisfaction.

What is Employee Retention?

Employee Retention is a process in which employees are motivated and influenced to stay in the organization for a long period of time (Sandhya and Kumar, 2011). Employers should identify the right way to retain the best employees. Best performers always get opportunities from various competitors. Organizations should use human resource management factors to influence employee commitment and retention. 

What is Job satisfaction?

Job satisfaction can be described as the positive impact employees have toward their jobs (Das & Baruah, 2013). Job satisfaction can be attained by adopting or practicing employee retention strategies. 

Employee Retention Strategies

There are many ways where the organization can adopt many strategies which increase employee retention, such as Compensation, Reward and recognition, Promotion, Work-life balance, Training, and Development, etc. 

• Compensation on Employee retention

Monitory compensation has been a key motivating factor in employee retention. Hence, organizations should find the correct salary scale based on the experience and job role of each employee to keep them motivated for the job they are required to do. The compensation strategy needs to be planned perfectly for the best employees of the organization. This would include many ways of compensation such as competitive salary, project bonus, superannuation, and fringe benefits (Nwokocha and Iheriohanma, 2012). On the other hand, Sandhya and Kumar, (2011) stated that monetary compensation would not stop an employee from leaving an organization as many employees are more focused on good bosses, meaningful work, and opportunities for learning and development.

• Promotions 

Career development opportunities such as promotions can lead to employee satisfaction and motivate the employee to be loyal to the organization for a long period of time. Organizations have to make sure that they correctly identify the best employees and give them the correct status in the organization. Talented employees always expect career growth and their organization should analyze their performance and offer the correct position. 

• Rewards and Recognitions

It can be either an intrinsic or an extrinsic reward as an appreciation for the work done by an employee/s which would lead to job satisfaction and loyalty. Best employees always seek appreciation for the job they have done. Recognition from superiors, team members, and coworkers would enhance the employee's loyalty.

• Training and Development 

Identifying employees' need and providing necessary training and development is very much important to gain employee satisfaction. This could erase the insecurity an employee would have about the job of the organization. Proper training for the job and development programs for career growth would work as a motivation factor for the employees. This will help to have both the best and most loyal employees within the organization. 

Conclusion

Employee retention is a key element in an organization. Various kinds of strategies can be used in order to enhance job satisfaction and employee retention. Employee retention followed by strategies would lead to job satisfaction. At the end of the day, the organization will have the best and most loyal employees in the organization for a long time. 

References

• Sandhya, K. and Kumar, D.P. (2011). Employee retention by motivation. Indian Journal of Science and Technology, [online] 4(12), pp.1778–1782. doi:https://doi.org/10.17485/ijst/2011/v4i12.34. (Accessed on: 04 May 2023)

• Das, B.L and Baruah, M. (2013),’ Employee retention’. Journal of Business and Management, 14(2), pp. 08-16. IOS journals [online]. Available at: https://d1wqtxts1xzle7.cloudfront.net/36724463/review_1-libre.pdf?1424579679=&response-content-disposition=inline%3B+filename%3DEmployee_Retention_A_Review_of_Literatur.pdf&Expires=1683222174&Signature=eWns4qVmb6YhVnnwStVbbM2hoNM~oIB2QSUzUn5GkidfJH19Nm4pASHg~fLCO4pIOw8VYORY0hP2-CYMTm2RTcJjr5TtthfQMnCNQ4bwlO1Jotz6hsxofakU5TMNh-13tKjYiOiSGsES7WRYWOBFXBFKYHUBemEpMfqQ9NoAuvCTO2I5gvEa1E1EfvQphD5nMI0rkNba0TAegGRkdEIwygKtva3wFCxegzj-3WJOLYl8PFqzNj7FSvYDBoz-WyRg3eHlByYZdD-TIn6v2StFSvUWqSzzLsDQRf1aOIpz3reit8-wD-DT3CljW1XfQsHtIImYn3X8DyzjOI0Ebe60Hg__&Key-Pair-Id=APKAJLOHF5GGSLRBV4ZA (Accessed on: 04 May 2023).

• Nwokocha, I. and Iheriohanma, E.B.J. (2012). ‘Emerging Trends in Employee Retention Strategies in a Globalizing Economy’: Nigeria in Focus. Asian Social Science, 8(10). doi: https://doi.org/10.5539/ass.v8n10p198. (Accessed on: 04 May 2023)