Strategies of Reducing Employee Turnover (Essay Sample)

Student’s Name Professor’s Name Course Date Strategies of Reducing Employee Turnover The most important responsibility of any human resource manager is to attract, hire, and retain the most qualified and talented employees in their organization. According to Feraro-Banta and Shaikh “today employees are considered as one of the most important assets in the company; therefore, they should be professionally and excellently managed” (175). Employee turnover is an undesirable phenomenon which leaders in the organization should address to reduce operational costs. Attracting, recruiting, selecting, and training employees is an expense exercise which can reduce a firm’s profit margins. Employee retention is critical in the successful cultivation and maintenance of customer relations which leads to customer satisfaction and increased sales revenue as a consequence. Therefore, organizations should adopt effective strategies to reduce employee turnover. The compensation and benefits strategy adopted by any company will have far reaching consequences on employee retention. Even in the modern knowledge based economy, the role of employees remains crucial to achieving organizational goals. The effective management of human capital is key in the overall organizational growth and development (Bana 236). According to Shree et al., “compensation could win many functions helping in enlisting, job performance, and job satisfaction” (7327). The above arguments points to the realization that employees will not get attracted to any company that they deem less appealing in terms of compensation and benefits no matter how much they love their jobs. Therefore, it is imperative that the firm leverages on its compensation and benefits packages to attract and retain the most qualified and committed employees in their respective areas of specialization. People make decisions whether to stay or leave an organization based on the value they place on the compensation and benefits they receive. Firms can only achieve their goals and objectives through attracting and recruiting staff who are the right fit (Mabaso and Dlamini 175). Employees are particularly concerned about a fair and competitive pay package since it directly influences their lifestyles, whereas top management is concerned with the right amount to offer to employees to create employee satisfaction and increase performance. Therefore, developing the most appropriate recruitment strategy that will communicate to the outside world that employees are most valued in the firm, thereby reducing employee turnover. According to Bavik, ‘defining and measuring organizational culture is important, because a strong organizational culture could potentially yield sustainable competitive advantages to organizations” (44). Creating a strong organizational culture positively affects employee behavior leading to the overall organizational success. Top management should ensure that they develop a culture of excellence in their companies to align employee performance with the specific organizational goals and objectives. Therefore, a strong organizational culture can dramatically reduce employee turnover. Training and career development is another strategy that companies can employ to reduce employee turnover. Training provides an opportunity for employees to learn and increase their skills and knowledge, leading to increased employee productivity and satisfaction. Developing appropriate employee training programs is an effective strategy to reduce employee turnover and incre...