Theories of HRM related to retaining

 

The term retention can be defined as a systematic effort to create and foster an environment that encourages employees to remain employed by having policies and practices in place that address their diverse needs” (Workforce Planning for Wisconsin State Government, 2005). Any organization's capacity to succeed depends on the quality and efficiency of its human resources (Mensah, 2014). As a result, organizations have a responsibility to recruit and retain the most valuable, inventive, productive, and efficient employees in order to achieve maximum benefits. This is because turnover affects an organization, especially in terms of productivity, satisfaction, and profitability (Tanwar, & Prasad, 2016). On the word of Bidisha Lahkar Das (2013), any organization's capacity to retain its key staff is essential to its long-term profitability and viability. Employee retention refers to the process of encouraging them to stick around the organization for as long as possible or until the project is finished (Bidisha Lahkar Das, 2013). On the other hand, one of the most vital factors influencing human performance and behavior is motivation. All aspects of organizational performance can be impacted by the level of motivation that individuals or teams brought to their work tasks (Tan, S.K., 2013).

Herzberg two factor theory

According to Almaaitah et al. (2017), there are many reasons why employees switch companies, and research suggests that many of these reasons include recruitment practices, a lack of an equal compensation structure, management style, poor working conditions, job insecurity, job dissatisfaction, and a lack of incentives for training and development. These causes are typically classified as intrinsic and extrinsic motivating factors (Almaaitah et al., 2017). When assessing an efficient employee retention strategy, management must include both extrinsic and intrinsic variables in addition to intrinsic variables. This is because extrinsic variables have a greater impact on employee retention than intrinsic variables (Almaaitah et al., 2017). According to Herzberg's theory, there are several elements that are connected to the job's requirements and give employees satisfying experiences. According to the theory, there are two separate sets of factors that have an impact on job satisfaction and dissatisfaction. As a result, it is impossible to measure both satisfaction and dissatisfaction along the same continuum (Stello, C.M., n.d.). 

As stated by Tan, S.K., (2013), the interaction of the intrinsic and extrinsic factors was further emphasized by this theory. Employees' work dissatisfaction will only be eliminated by the presence of extrinsic factors; however, it will not provide job satisfaction. On the other hand, a sufficient supply of Intrinsic Factor will cultivate employees’ inner growth and development which will lead to higher productivity and performance; however, absence of this factor will only neutralize their feeling neither satisfy nor dissatisfy with their jobs (Tan, S.K., 2013).

Achievement, recognition, the work itself, responsibility, promotion, and growth are some examples of these motivators or satisfiers (Steers & Porter, 1991). According to the theory's second feature, employees may have unsatisfactory experiences for reasons unrelated to their jobs. These elements, which are often referred to as hygiene factors or dissatisfiers, include business policies, pay, relationships with coworkers, and supervision style (Steers & Porter, 1991).

As an example: Stress was studied using the two-factor approach by Knoop (1994). Herzberg's factors were connected to work values by Knoop, who also proposed that stress and intrinsic factors would be inversely associated. However, stress reduction shouldn't be influenced by outside factors. His research confirmed his theory and showed that businesses can reduce stress by giving employees stimulating jobs that support their career goals (Knoop, 1994). On the word of Tan, S.K., (2013), has examined how a pay-for-performance system may affect the intrinsic and extrinsic motivational factors as well as the job satisfaction of front-line employees at an Australasian retailer. Pay and benefits have the biggest relationship with job satisfaction, according to the findings.

 

 

 

References:

Almaaitah, M.F., Harada, Y., Sakdan, M.F. and Almaaitah, A.M. (2017). Integrating Herzberg and Social Exchange Theories to Underpinned Human Resource Practices, Leadership Style and Employee Retention in Health Sector. World Journal of Business and Management, [online] 3(1), p.16. doi:10.5296/wjbm.v3i1.10880.

 

Bidisha Lahkar Das (2013). Employee Retention: A Review of Literature. IOSR Journal of Business and Management, [online] 14(2), pp.08-16. doi:10.9790/487x-1420816.

 

Knoop, R. (1994). Relieving Stress Through Value-Rich Work. The Journal of Social Psychology, 134(6), pp.829–836. doi:10.1080/00224545.1994.9923017.

 

Mensah, R. D. (2014). Effects of Human Resource Management Practices on Retention of Employees in the Banking Industry in Accra, Ghana (Doctoral dissertation, KENYATTA UNIVERSITY).

 

Steers, R. M., & Porter, W. L. (1991). Motivation and work behavior (5th ed.). New York: McGraw-Hill Inc.

 

Stello, C.M. (n.d.). Herzberg’s Two-Factor Theory of Job Satisfaction: An Integrative Literature Review.

 

Tanwar, K., & Prasad, A. (2016). Exploring the Relationship between Employer Branding and Employee            Retention.       Global Business          Review,           17(3),   186-206. https://doi.org/10.1177/0972150916631214

 

Tan, S.K. (2013). Herzberg’s Two-Factor Theory on Work Motivation: Does it Works for Today’s Environment? Global Journal of Commerce and Management Perspective, 2(2319-7285), pp.1–6.

 

Workforce Planning for Wisconsin State Government. (2005). Employee retention. Retrieved July 1, 2010 from http://www.cs.state.ny.us/successionplanning/workgroups/Retention/employeeretentionreport.p df