Investment Practices For Improved Retention

Investment Practices for
Improved Retention
Organizational Cultures Emphasizing
Interpersonal Relationship Values
 Practices affecting the org’s culture, firms can
influence retention.
 Interpersonal Relationship Values – respect for
people & team orientation.
 Higher retention in fearless culture
 Positive relationships with superiors, absence
of conflict-laden relationships, having put into
decisions, less emphasis on formal authority,
info sharing, & support for emps.
Effective selection procedures
 Hiring should match well with the org, job and
their coworkers.
 Careful selection is most widely used method
for retaining front-line emps
 Use of Realistic Job Previews (RJP).
 Use of Biodata – data on objective
characteristics like y ears of experience,
bilingualism, college education.
Compensation & Benefits
 Equitable compensation
 Fair appraisal reviews, equitable ratios of
inputs to outputs.
 Exclusion of politics in compensation
 Retention bonuses.
Job Enrichment & Job Satisfaction
 Increased responsibility or autonomy,
knowledge of results, meaningful work,
knowledge of how assigned tasks contribute to
greater activity & skill variety.
 Job latitude & Job satisfaction
Practices providing Work Life
Balance
 Alternative work schedules
 child care services
 provisions for family leave.
 Unreasonable workloads
Organizational Direction Creating
confidence in future
 Setting a clear direction for future & building
confidence in the vision.
Retention of Technical emps
 Demand for specialists & highly skilled emps
is very strong that companies have been very
innovative.
 Increased communication with technical emps.
 Attractive compensation & benefit packages.
 “Red Carpet” Treatment.
Other practices
 Training, new learning, growth & promotion.
 Liberal transfer policies.
 Effective mgmt of diversity & prevention of
sexual harrasment.
Cost of Downsizing & Layoffs
 Downsizing is commonly linked to
competitively driven structural changes in orgs.
 Typical result is another 10-15 % of an org’s
workforce will quit after layoffs.
 Bumping practices: emps with less seniority are
“bumped” out of their jobs by more senior
emps.
 Other costs include severance, administrative &
intangible costs.
Business Cycle Based Layoffs
 Laying off workers during economic
downturns is questionable.
 No layoff policies in South west Airlines &
Lincoln Electric
 Sony Corporation refused to lay off emps in its
San Diego plant after decline in sales paid off
increased emp commitment & increased
performance in following years.
Offering Employee Guarantees
 Companies like Hewlett-Packard, Hallmark &
Worthington Industries have offered emp
guarantee.
 HP Emps were voluntarily allowed to go on
leave without pay but with continued benefits
& guarantee of job getting back.
 When condition worsened entire non sales
workforce was furloughed for two months &
senior staff’s salary was reduced by 10%.
Alternatives to Layoffs
 Preserve investments in emp skills & avoid
expense of hiring & training new emps.
 Study reveals that cos retain approx 8% more
labor during downturns than needed.
 Inflow can be shutdown; hiring freezed.
 Redeployment of current emps or curtailment
of subcontracts & reassignment of work from
contractors to own emps.
 Pay cuts for fewer days with commitment
Non traditional Investment Approaches –
investment in disabled emps
 Emp who have become disabled rely on the co’s
long-term disability insurance policy to provide
economic support.
 Some laws provide additional benefits like
accommodations.
 Raising heights of desks; providing ramps for
wheelchairs.
 Return is quite attractive
 Advances in medical technology allows disabled
people to join.
Investment in Emp health
 Increase productivity of emps.
 Health related programs like reduction of
smoking.
 Cardinal Industries pays for smoking
cessation.
 Investing in fitness centres & physical
conditioning programs.
Countercyclical Hiring
 Stockpiling a limited no of high quality key
personnel for future use in pursuing strategies
requiring certain personnel capabilities.
 Empirical studies of countercyclical hiring
indicate successful cos employ systematic
approaches toward hrm.

Investment Practices For Improved Retention

Uploaded by

Copyright:

Available Formats

Investment Practices For Improved Retention

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Investment Practices For Improved Retention

Uploaded by

Copyright:

Available Formats

Investment Practices for

You might also like