Impact Of Employee Retention In Pharmaceutical Company Management Essay
It’s a well known reality that employees are the driving force of any organisation. In any enterprise, employee is a person who works in the service of another person under an express or implied contract of hire, under which the employer has the right to control the details of work performance.
In every organisation, the main task of human resource management is ensuring existing policies and revision in these policies as deemed necessary, proper classification and reclassification of employees, pay scales, job description and methods of periodical reviews, development of in house expertise, approval and revision of organisation set up, set up of latest criterion for recruitment, training and performance appraisal and effective management of information system to monitor implementation of policies as approved.
In the present, where human resources management has adopted the form of profession and different expertise are hired to manage this force in order to enhance its capabilities to gain a competitive edge on others, employees turnover become a big challenge for the multi nationals, Although a reasonable level of staff turnover can be good for a business, every organization needs to have a strategy in place to retain high performers that give it a competitive edge.
The cost of not doing so can be severe as high employee turnover can be very costly: lowering internal morale, harming the company’s external reputation and losing it business.
The first plank in this strategy is to try to understand more about the reasons why people are resigning.
Human Resource may be defined as the total knowledge, skills, creative abilities, talents, and aptitudes of an organization work force as well as the values, attitudes, approaches and beliefs of individuals involved in the affairs of the organization.
Intellectual employers always realise the importance of retaining the best talent. Retaining talent has never been so important in developing countries; but with the passage of time such concept has been replaced by human relationship management.
In an extremely competitive environment, where HR managers are poaching from each other, organisations can either hold on to their employees tight or lose them to competition. Those days are gone, when employees would bond to an employer for years for want of a better choice. Now, opportunities flourish.
It is a fact that, retention of key employees is critical to the long-term health and success of any organisation. The performance of employees is often linked directly to quality work, customer satisfaction, and increased product sales and even to the image of a company. Whereas the same is often indirectly linked to, satisfied colleagues and reporting staff, effective succession planning and deeply embedded organisational knowledge and learning.
Employee retention matters, as, organisational issues such as training time and investment, costly candidate search etc., are involved. Hence, failing to retain a key employee is a costly proposition for any organisation. Various estimates suggest that losing a middle manager in most organisations, translates to a loss of up to five times his salary.Â
The research work will be undertaken to highlight the importance of HRM in modern organization. The first plank in this strategy is to try to understand more about the reasons why people are resigning.
Objectives of Research:
To emphasize the importance of HRM in organization.
Impact on organization of Retention polices.
Finding the Retention strategies of organizations.
Highlighting the reasons why people are resigning.
Identifying the ways to improve employee retention
Ways to improve staff retention
Following are some of the way through which an organisation can improve staff retention
Improved career development opportunities.
Strong diversity management policies.
A practicable means of dealing with harassment.
A good work/life balance.
A method for staff to register dissatisfaction, whether it is appraisals, grievance proceeding and so on.
Leadership training for managers.
Conduct training workshops, seminars or conferences at regular intervals.
The ultimate aim should be to make every employee feel valued and proud of the work that they do. To develop a work culture that encourages diversity and creativity. There should also be effective anti-discrimination policies in place that promote flexible working, where possible.
Adopting a strategy for staff retention is not easy but it will greatly benefit your organisation.
Productivity and Loyalty
Without productivity and loyalty an organization will not be able to get work more softly from employees. An organization can achieve its goals more quickly with better productivity and loyalty. Employees will react in favour of company if they are giving respect.
Being open minded means you can trust on your staff abilities. If you follow through on promise as well as threats, you will create a work environment where employees trust on your fairness and consistency.
If you will allow your workforce creative freedom they will perform well and play pivotal role in your achievement. You can attract your employees by offering better opportunities and create interest in their job. Challenging targets are always interesting for workforce.
Fair compensation keeps employees more productive and goal oriented. organization look for good profit before paying high wage whereas employee look first and foremost high pay they are not interested what organization is doing and for what purpose. If wage is high it is alright to go up but it is not good to come down. it is in company interest to get workers favour by offering better incentives.
In order to be loyal and productive, employees should be engaged in an ongoing process of work-based learning. Learning is always important step toward workers building skills. It is easy to increase workforce confidence by conducting workshop, seminars, and provide opportunity to experts to come and improve their skills.
Learning is an ongoing challenge for managers and organizations. It is the duty of the management team to provide a working environment that cultivates staff retention. Maintaining a good staff can determine the success of an organization as high turnover rates can cause disruption, budget and quality concerns and scheduling conflicts. Staff retention techniques help to retain high performing employees.
Employee retention starts with the recruiting process. Recruiting workers is key step toward this process. Organization teams will be careful and well trained in selection of employees. Personal likes and dislikes will be ignored and give priority to merit and fair selection. Select those individual who will be able to work well both under pressure and in normal routine check references to validate experience and capabilities.
Goals and Flexibility
Organization goals are always clear and specific to employees so no doubt is left in understanding it. promote sense of community so employees feel that they are respected .if employee want to spend some time in their home it is essential for manager to redefine his or her schedules so he do his work with more flexible way. Empower your employees and keep communication lines open so they are comfortable talking with you.
Performance and Training
Showing confidence on your workforce will reduce your extra burden. Do not show favouritism for anyone. Give equal status to all workers so they will work well in company interest. Increased the responsibility and decision making of employees who have mastered their job duties. Provide adequate training for the employee’s position and offer additional training so the employee can gain new skills and advance through the organization. Be clear about what the employee is expected to do at his job. Say thank you to all workers who will perform well.
Reasons for Leaving
Employee turnover is always a big issue for company management. Employees are always think good for their personal interest. It is in company interest to speak workers to know why they want leave. Pay is basic problem in employee turnover. Workers compare there pay and will be dissatisfied if comparison is unfavourable. So, pay is hygiene factor at work instead of motivating factor. Human resources professionals understand why people leave an organization; they can tailor the company’s retention strategies to address these issues. There are common reasons why individuals leave a company, but management should take the initiative to speak with every employee who leaves to identify the reasons why. When an employee feels unappreciated, he may leave. If the job is not challenging or the worker has no confidence in the company, she may seek other opportunities.
Main reasons of employee turnover
Following are some of the reasons of employee turnover
Poor salary and benefits
A lack of training and development opportunities
Dissatisfaction with management
Lack of work/life balance
While companies do conduct ‘Exit’ interviews to try and ascertain the reasons behind a departure, because of the necessity to obtain a decent reference, people often tone down or completely fabricate their reasons for leaving. However, analysing the data can provide valuable feedback to improve staff retention. Indeed, it might also be worthwhile using staff retention as a Key Performance Indicator within your business.
Methods to find out the reasons of employee turnover
Methods to find out why staff are leaving include:
Confidential attitude surveys.
Questionnaires sent to former employees around six months after their departure.
CONFIDENTIAL ATTITUDE SURVEYS
Originations should adopt this method on regular basis. This survey an organisation easily understands the main causes of employees’ turnover, and can easily take proactive action to control this. Usually this approach is adopted by western courtiers
QUESTIONNAIRES SENT TO FORMER EMPLOYEES AROUND SIX MONTHS AFTER THEIR DEPARTURE
Under this method questionnaire are sent to former employees and inquired them the reason which make them dissatisfied during their tenure of employment. it is also an effective tool.
Conducting an exit interview is also an effective method to understand the reasoning of employee turnover within an organisation. The data gathered through this interview should be use to enhance employees satisfaction and diminishing dissatisfaction.
To develop an initial understanding of the concepts of Employees Satisfaction and loyalty, we have to give attention to the historical view of this concept ; this chapter will be focusing on employee satisfaction and loyalty definition, Research theories, Way to enhance employee satisfaction and current role of human resources management.
History of Human Resources Management
HRM officially came into existence in 1996 as a result of the joining together of the cities of Halifax and Dartmouth, the town of Bedford, and the County of Halifax. That coming together has given HRM a significant suburban and rural mix in addition to a large urban population. With approximately 200 communities within its boundaries and a population of roughly 373,000, HRM is Nova Scotia’s largest and most diverse municipality. Indeed, we are the largest community in Atlantic Canada. Events of historical importance have influenced our development. From 1928 until 1971, over a million immigrants arrived in Canada through Pier 21 in the Port of Halifax. Many settled in the area, enriching our social and cultural environment. Now a trip to Pier 21 National Historic Site is a trip back in time as visitors hear stories of hope and excitement as told by those arriving to the place they would soon call home.
Today, Halifax Regional Municipality is a multicultural society that is home to people from around the world. Arabic is the most commonly spoken language after French and English, and we have one of the largest groups of Shambhala Buddhists in the world living here. We’re proud of the global infusion of cultures, languages, histories, and hope that has converged to make HRM a truly international city.
Research on Human Resources Management
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According to John zepshyr, April 2011. At the height of the United States Great Recession of National Affairs, in 2009, at the height of the United States’ “Great Recession,” the percent of employees voluntarily leaving their jobs was at 0.5 percent, down by a half from the previous year. While a tight job market can lead to less employee turnover, replacing an employee, no matter the circumstances, can have serious (and expensive) consequences for employers.
Loss of Productivity
If employee leaves from company the more horrible consequences is loss of company productivity. After this aspect the company is going to hire new staff to replace outgoing staff and spend time on their training so they replace properly outgoing staffs and fulfil their position. it is also hurt company goodwill they will not able to fulfil their regular orders and their clients will move to another suppliers.
Another significant and hard consequence of employee turnover is cost. If Employees leave during production process it is great blow for company. They have to hire newly staff and to arrange training program for there selves to improve their skills. This cost includes cost of recruiting, hiring agencies and severance pay.
Once replacement of outgoing workers is found the new workers will be trained and responsibility should be assigned. Training employees especially at higher level is not easy step. It takes time and company productivity will definitely be hurt. It increase company formal cost such as training classes, materials and hours as well as informal cost like mentoring and socializing.
Intangible Consequences Finally, job turnover can have intangible consequences, the type of affects on companies that can be seen or recognized on a balance sheet. If job turnover is high due to layoffs or staff dissatisfaction, morale can suffer by those left behind. In addition, customers who constantly interact with new employees may be adversely affected as well, resulting in a loss of business. Yet, not all consequences are negative. New employees can bring enthusiasm and fresh ideas and, if many employees voluntarily leave a company, management may be forced to address issues and rethink how they are treating and managing employees, leading to positive change.
Gaining your client’s trust is a large part of building successful relationship founded on loyalty for your business while it takes time to build loyalty; it only takes seconds to destroy your client’s opinion of you and your business. Whether you’ve damaged trust by having a flaw in your business system, your products or your services, you must take steps to repair the fragile relationships in order to remain in business.
Prepare solutions in advance. .
Listen attentively to your client’s feedback
Follow up with the client.
Forget the desire to transform your image.
Role of HRM in Employee retention
A committed employee is extraordinarily valuable. You can gain staff commitment by meeting people’s key needs: paying attention to people at all levels; trusting and being trusted; tolerating individuality; and creating a blame-free, can-do culture. But why go through all these? What is the importance of gaining trust and commitment? It all goes down to the fact that when a company gains the trust and commitment of their employees they establish employee retention. And employee retention is vital in establishing a firm foundation as the company proliferates and achieves their goals.
Basics of Gaining Trust of Employee
The quality and style of leadership are major factors in gaining employees’ trust and commitment, thereby, initiating employee retention in the long run. Clear decision-making should be coupled with a mutual and emphatic approach. This entails taking people into your confidence and clearly and honestly valuing their contributions. In turn, you gain employee retention.
As the boss, you should also;
Make yourself as visible as possible.
Show yourself to be approachable.
Always be willing to listen to others.
Never ask an employee to do something you would not be willing to do yourself.
Learn to trust those who work for you – trust is a two-way street
Factors which enhance the faithfulness of employees within the organisation
Sense of Ownership In The Organization
Pride to be the part of organisation
Willingness To Work Long Hours
Holding Personal Values Consistent With The Organization
Creating A Strong Sense Of Team Spirit
Commitment is the highest form of employee retention. If your employee is already committed to the company by expressing his or her desire to uplift the status of the organization, to boost productivity, and to refurbish mistakes and failures then you can be sure that the employee will stay for good Keep in mind that when employee retention is achieved, the company should, in turn, keep that retention as well by remunerating effectively and expressing appreciation through employee recognition. If this is all incorporated, then, a harmonious relationship between the employee and the company is at hand.
Chapter 3 Methodology
The main objective of this research is to understand the employee behaviours, their role in company progress, employees’ retention policies and role of human resources management. The research is qualitative based and different books, articles, websites, literature and questionnaire will be used to compile this research.
The data will be collected from both primary and secondary sources. Primary- data will be collected from consumers through questionnaire and direct interviews. Sources of secondary data include books, journal articles, related websites and other related literature.
Sample size is 20 from 10 different organizations which will be selected on random basis and data will be collected through questionnaires and interviews.
Time frame for completion of research is as under:
12th Jan, 2008
8th Feb, 2008
4th Feb, 2008
15th March, 2008
15th Feb, 2008
20th Feb, 2008
Data Collection (Primary & Secondary)
20th Feb, 2008
15th March, 2008
16th March, 2008
23rd March, 2008
Drafting & Composing
20th Feb, 2008
15th April, 2008
16th April, 2008
20th April, 2008
30th April, 2008Order Now