Analysis of Employee Retention and Turnover

RUNNING HEAD: HR PRACTICE REVIEW
Analysis of Employee retention and Turnover
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1HR PRACTICE REVIEW
Introduction:
HR practices are the crucial area of management in any organisation the practices are
designed for managing the human resource of the company, that is considered to be the most
important source of production (Aruna and Anitha 2015). In case of any change in the
organisation, the most affected will be the human resource of the organisation. However, change
in the organisation is a necessary happening that will help the company to remain dynamic and
strategic for meeting the needs of the market and developing the employees so that their
individual goal align with the organisational goal.
In the present business scenario where competition has been accelerated to a large extent,
the issue of employee turnover has increased considerably owing to the exposure to different
industries, job pressure to meet the target or job dissatisfaction. The problems in retaining the
key talent have been a glaring one for the HR management.
In order to analyse the condition of any HR practice in the organisation and recommend
means for improvements, it is necessary to review the credible sources for gaining an overview
of the situations. The present report will aim at the HR issue of retention of the key talents in the
present scenario of increased turnovers in the organisation. The report will aim at the analysis of
the issue in general as well as in company specific context. In preparing the report, it will
consider the credible secondary sources regarding retention and turnovers. It will further set out
the research methodology that will be best to undertake in the current scenario. Based on the
findings from the research, it will draw the conclusions.

2HR PRACTICE REVIEW
Turnover and Retention:
One of the basic similarities among the companies is present days is the issue of
employee retention and turnover rates. The employment retention is referred to the strategy of
the organisation in retaining the best employees and maintaining a lower turnover. Since the
organisations in recent time have to face major revolutionary trends, the constant demand of new
and advanced products and a global competition, the mission of the organisations have been to
retain their best employees who are instrumental for the company for the implementation of the
changes (Duffield, Roche, Homer, Buchan and Dimitrelis 2014). The organisations must have
successful motivational strategies so that they can retain the talents to survive any kind of
consolidation and restructuring.
In recent times, there has been an acceleration of the companies’ dependency on the
employees. The organisations in the hospitality industries mainly depend on the performance of
the human resource. In production oriented industry as well, the necessity of the key talents is
there since the physical labour and brain storming are still essential areas of requirements. The
formulation of strategies that will be beneficial in retaining the employees is thus the ultimate
goal o maximum companies. Thus, the issue is important to maintain the demand of the
employees and adapt to certain strategies with the local market. In the company, it has been
observed recently that turnover rate has been increased upto 16 percent higher than 10 percent
which is considered to be normal. Turnover of the key talents is not only a regretted affair by
terms of losing a capable employee, but also is a costly affair since the leaving formalities.
Moreover, it is difficult for the company to find for another suitable candidate with same or more
capabilities. It incurs both time and cost (Christiano, Nagaraj, Fröhlich and Walther, 2014.).
Another important issue of consideration is the huge workload upon the employees that tends to

3HR PRACTICE REVIEW
create a sense of dissatisfaction among employees because of stress. It is thus needed in the
context to analyse the various factors that will affect the retention policy and the turnover rates in
the organisation.
Critical Review of the information sources:
Norma Davila and Wanda Pina Ramirez in their article “Providing the value of
induction” (Davila and Piña-Ramírez 2014. ) have critically analysed the importance of the
process of on boarding and the effectiveness of the process on the employees’ perception about
the company. The article takes up an example from the banking sector and tries to track a
correlation among the on boarding process and the turnover rate among the newly employed
employees. The research however, lacks the approach of a conducted and deduced method
inferring from a definite statistics. The research has been done on some primary basis without
graphing any particular raw data and measuring the statistics. The study seemed valuable also
from the point of view that the authors have measured the tool of on boarding twice so that they
have sufficient and reliable base for comparison and to be executed also for moving positions.
The article, however, made a positivism approach towards the process of on boarding and shed
light on the fact that the process accelerates the growth of the company. However, there are
traces where one ca find that the employees are taking the aspect negatively as it seemed futile
and tiresome to them. In order to improve the quality of research, the researchers could have
taken the process along with other one and establish a cause and effect relation of the process in
the context of turnover and retention. In doing the second hand research, the renowned book by J
Kodz and H Harper named as “work life balance: beyond the rhetoric will be considered (Kodz,
Harper and Dench 2002). The research book contains a lot of reliable sources of information