TALENT MANAGEMENT - BLOG 04

EMPLOYEE RETENTION IS THE KEY TO SUCCESS.

We all know that there is no employee retention strategy at many organizations here in our country. With the expanding job market, employee retention is becoming increasingly difficult especially for the key performers (Myrna, 2008). Losing the best employees will not only damage the company reputation but also productivity. In the previous decade, the majority of companies have not strategized in developing the talents in people, where they were depending on the competitors to get the people developed for them.

(Source: omniagroup, 2017)

A person who seems to be good at interviews may not necessarily be good at their job. Instead of putting so much of time and focus on finding the perfect candidate, organizations should focus on retaining the current employees. In order for an organization to succeed, they must invest in employees who will be dedicated to their position for the longer run. Studies have shown that in high performing companies, the secret behind is employee retention (Peterson, 2005). Also, the link between benefits and employee commitment is not always strong. Adequate communication with employees is, as with most other retention practices, essential (Trevor, (2001).

(Source: youtube, 2017)

 “The implementation of integrated strategies or systems designed to increase workplace productivity by developing improved processes for attracting, developing, retaining, and utilizing people with the required skills and aptitude to meet current and future business needs” (Lockwood, 2006).

1.1 Recommendations On How to Win the Battle of Employee Retention. 

• Competitive Salary And Benefits
• Hiring The Ideal Candidate 
• Recognition and Reward System
• Career Development Guidance 
• Work-Life Balance
• Employee Motivation

1.1.1 Competitive Salary And Benefits

When it comes to employee salaries, it has been a major reason why employees leave the organization. Sometimes when employees start talking among them selfs about the salaries, that too make a situation of disconcerting within the employees. Which'll again make them move out in search of a better pay. 

(Source: dreamstime, n.d.)

Mostly the highest paid employees are either experienced workers or high performers. And when it comes to the recruitment, the employee always look at the salary, and they usually compare with the previous company of work experience. But not the perks which are offered by the company. Many companies nowadays offer bonuses, health insurance, and performance incentives.No doubt that employees consider Salaries as the top issue, due to the necessity of financial stability. And that is why companies should match the salaries and benefits, especially those companies that pay below industry standards.

1.1.2 Hiring The Ideal Candidate

Retainable employees show a clear commitment to contribute their skills and best efforts to the organization for the long term. In order to impress the interviewer, most employees make promises that they are unable to do. This leads to a gap in expectation and delivery. Eventually, those employees realize that they don't fit in, and so work becomes stressful. Finally making them leave the organization. Companies should, therefore, make sure to evaluate the candidate correctly and hire the ideal person.

(Source: ceohangout, n.d.)

1.1.3 Recognition and Reward System

This can be done by monitoring and sharing results, a clear picture of the performers and none performers can be recognized. This is a key aspect of employee retention, the employees expect feedback on good performance and they will not like it when they are not recognized and will leave in the end. Even a small team with a smaller budget can have a recognition program, as well as a reward system.

(Source: idexcel, 2015)

A reward system needs to consist of all organizational components involved in allocating compensation and benefits in employees in exchange for their contribution to the organization.

1.1.4 Career Development Pathway Guidance

(Source: Donald super's development theory, 1910-1994)

This will allow the company to show the employees their commitment towards developing the in-house talent. Employees will then have a long-term vision of their role in the company. Employees are looking forward to the possibility of professional development. Each employee needs to be reached personally to have the strong link between the organization and the employee. This will eventually result in a good performance culture since there will be huge competition within the company self. Below are some things to help facilitate career success. 

• Clearly, communicate the strategy of the organization.
• Proactively manage opportunities for high potential employees. 
• Helping employees to learn about new opportunities. 

1.1.5 Work-Life Balance

(Source: Maslow’s Theory - simplypsychology, 2018)

In today's fast-paced business world, the ability to achieve work-life balance is becoming difficult daily. Maintaining work-life balance will lead the employees to be more positive and effective. Organizations can establish work-life balance programs which will help each professional improve their emotional well-being. And the organization has to be flexible when it comes to situations where an employee needs to deal with personal life problems, there can be a guidance given through the manager to the employees. The continuous stress from the workplace is damaging and it can hurt relationships, health, and overall happiness. Following things can be focused on improving work-life balance. 

•  Give employees information about what a healthy work-life balance should look like.
• Allowing employees to work from home. Like a day or two per month.
• Provide flexible working hours.
• Ensure management and supervisors also enjoy a healthy work-life balance.

1.1.6 Employee Motivation

Motivation acts as a catalyst for an individual's success. A continuous motivation from the managers has to be given in order to get the maximum out of the employees. When an employee has performed well, then he should be appreciated. And making that employee an example among the rest, all others will be motivated to go for it. 

(Source: Herzberg's two-factor theory - modernmilitaryleader, 2015)

Organizing various activities and events will engage the employees in a positive way and each event can be given to different employee each time to handle. The management must show its care and concern for all the staff members. Incentives, perks, cash prizes are also great ways to improve productivity as well as motivation. The employees who perform well should be felicitated in front of the colleagues as well as the management. Motivation can make a person move forward as well as take someone with them towards motivation (Burton, 2012).


Employee retention is the most important factor that contributes to the growth and profitability of the company. The dynamics between an employee and the workplace is a delicate balance of give and take. Without the right amount of involvement, support and guidance employees can feel vulnerable and ignored. So as mentioned above employee retention is vital to any organization and it's success.

Reference : 

Burton. K, 2012, A Study of Motivation: How to Get Your Employees Moving, pp. 1-33. [Online]

Lockwood, N.R. (2006). Talent management: Driver for organizational success. 2006 SHRM Research Quarterly. Alexandria, VA: Society for Human Resource Management

Myrna L Gusdorf (2008), "Recruitment and Selection: Hiring the Right Person". 10

Peterson, C. H . (2005) "Employee Retention: The Secret Behind Wal-Mart's Successful Hiring Policies" Human Resource Management. Vol. 44, No .1.

Trevor, C.O. (2001). Interactions among actual ease-of-movement determinants and job satisfaction in the prediction of voluntary turnover. Academy of Management Journal, 44, 621-638.

Thimira Wijekoon
Field Manager 
Reckitt Benckiser (Lanka) Limited,
Hemas Pharmaceuticals (Pvt) Ltd,
No.439, Galle Road, Colombo 03, Sri Lanka,