THE RELATIONSHIP BETWEEN employee retention strategies AND EMPLOYEE TURNOVER
1.1 INTRODUCTION TO THE STUDY
Employee retention is a subject that is increasingly attracting the attention of many firms (Hong et al., 2012), as the loss of high-performing personnel poses a significant concern (Hong et al., 2012). When good, skilled employees decide to leave, organizations face a number of negative outcomes, including decreased efficiency and production, increased costs, and a threat to the organization's long-term existence and sustainability (Beach, Brereton, & Cliff, 2003). Consequently, talent retention has become increasingly vital for management (Samuel & Chipunza, 2009). In this regard, Slattery and Selvarajan (2005) explained that positive human resource practices (e.g., better pay and benefits, job freedom, and job security) can reduce employee turnover. Employees' intention to leave was found to be reduced when they perceived that their organizations provided positive human resource practices (e.g., better pay and benefits, job freedom, and job security) (Stewart & Brown, 2009). Retaining personnel is a crucial issue that would offer value and competitiveness to any firm if handled properly and successfully. Employees are regarded as the most valuable assets of an organization, and as such, it is essential for businesses to make steps to retain existing talent to prevent the need for new hires. Increasing staff retention has so become a trend among commercial organizations in nations such as Jordan. Employees with exceptional skills and abilities can contribute considerably to an organization's competitive edge. Therefore, firms should maintain such expertise, particularly in today's tough and unpredictably changing environment (Samuel & Chipunza, 2009). Employee retention is advantageous for both the organization and the personnel. Today's employees have access to a plethora of excellent options. As soon as they become unhappy or dissatisfied with their current employer or position, they will immediately seek new employment. Employers are completely responsible for retaining their finest employees. Failure to do so may result in the departure of talented employees. Good employers should be aware of the steps necessary to recruit and retain staff. Employees are an organization's most valuable asset. If employees cannot exercise their full potential and are not acknowledged and valued, they will leave due to stress and dissatisfaction (Kakar, Raziq, & Khan, 2007). (2015). Even if they continue with the organization, their sentiments of annoyance and discontent will have detrimental effects on their performance and productivity. When these unpleasant emotions become too overwhelming, employees depart. Nonetheless, if employees receive a sense of accomplishment and belongingness from a healthy work environment, the company would have contented and dependable workers who contribute to the company's growth.
In contrast, employee retention refers to the proportion of employees who remain with the organization (Phillips and Connell, 2003). Any organization's primary goal should be the recruitment and retention of critical personnel. Even the most competent businesses can be severely harmed if they fail to develop effective staff retention tactics. It takes a substantial expenditure of both time and money to discover the appropriate individuals. The goal for any firm is to make logical decisions on staff retention methods and to prioritize employee interests (Putting People First: Employee Retention and Organizational Performance, 2011).
Employee retention is also defined as a procedure in which employees are strongly encouraged to remain with the organization for an extended duration (Sandhya and Kumar, 2011). Organizations must establish and implement employee retention strategies in order to improve employee performance. A high turnover rate is a critical problem for the majority of organizations today, due to factors such as bad working conditions, lack of career growth opportunities, job unhappiness, and a lack of a sufficient compensation package (Ivancevich, 2010). This in turn leads to poor employee performance, and as a result, firms must develop employee retention methods and regulations. This will also increase the likelihood that employees will remain with the firm for a longer period of time and improve their performance.
According to Sandhya and Kumar (2011), staff retention is crucial not only because it reduces recruitment and training costs and turnover. It is crucial because it prevents organizations from losing their most skilled personnel. When a person leaves a business, they bring valuable information about the organization, current initiatives, and customers, as well as past information about competitors, to their new employer. A good employer should therefore be able to recruit and keep his personnel. The retention of personnel has proven to be a crucial aspect in achieving an organization's goals and objectives. Before an organization can achieve the necessary competitive advantage, it must be able to keep its people. Employers must exercise extreme caution in light of the numerous changes in global economics, trade agreements, and technology, as these factors have a significant impact on the employer-employee relationship (Nyamekye, 2012).
In today's company environment, turnover of skilled staff is a key worry for managers and administrators due to the costs associated with replacing them and lost productivity. Employees quit their employment for a variety of reasons, but research has identified the following as the most common: disagreement with or dislike of the boss or supervisor, failure to fit the company culture, and attraction to another employer who matches the employees' expectations (Phillips and Connell, 2003).. Therefore, limiting staff turnover through efficient retention techniques is the most crucial objective for any business with a highly skilled workforce.
According to Gberevbie (2010), employee retention strategies are the plans, means, or set of decision-making behaviors that firms implement in order to effectively retain their competitive workforce in order to enhance employee performance. The majority of researchers have discovered that employees will only remain and work to ensure the organization's goals are met if effective employee retention tactics are adopted and implemented. This research will examine the connection between employee retention tactics and employee turnover. A case study of Ota Breweries
1.2 DESCRIPTION OF THE PROBLEM
Every business seeks to boost production and decrease turnover, resulting in profitability. Controlling employee churn is a requirement for achieving corporate objectives effectively (Kakar, Raziq, & Khan, 2015).
However, the business would be devastated by both direct and indirect expenditures due to a high turnover rate. Direct costs refer to expenses incurred for new employee recruitment, selection, orientation, workshop, and training (Gberevbie, 2010). Indirect costs are associated with spending on education, diminished self-esteem, strain on the existing workforce, and the demise of social capital. In addition, high personnel turnover threatens the achievement of the organization's objective. To address the problems of the cutthroat corporate world, management has made employee retention a top priority and implemented several retention strategies (Nyamekye, 2012).
However, due to the lack of focus, senior management does not prioritize this significant issue. They may not be able to comprehend how staff turnover negatively affects the organization's production. Therefore, it is more important than ever to undertake research on employee turnover to assist businesses by identifying their problems, interpreting the data, and offering potential remedies.
The techniques employed by a firm to retain their employees have a significant impact on an employee's performance (Gberevbie, 2010). It is essential for any successful firm to comprehend employee viewpoints and evaluate employee retention elements. According to a study conducted by Earle (2014), organizations should provide a positive environment where people feel energized and valued, and they will want to stay. Negative associations are often reinforced when employees feel as though they are dragging themselves to an unpleasant environment every day.
1.3 OBJECTIVES OF THE RESEARCH
This study's purpose is to analyze the relationship between staff retention tactics and employee turnover, using Nigerian Breweries, Ota as a case study. Included among the specific aims are the following:
Determine how flexible work environment initiatives influence employee performance.
Determine the influence of career development methods on employee performance
Determine the internal and external factors that contribute to staff turnover at Nigerian Breweries Ota.
Examine the retention techniques implemented by the management of Nigerian Breweries in an effort to reduce staff turnover.
5. Determine if employee retention tactics and employee turnover are related in Nigerian breweries.
THE RELATIONSHIP BETWEEN EMPLOYEE RETENTION STRATEGIES AND EMPLOYEE TURNOVER