Theoretical Framework for Employee Retention in Organizations

This study explores the theoretical framework for employee retention in organizations, including Maslow's Hierarchy of Needs and Herzberg's Two-Factor Theory. It recommends that organizations can improve retention of the employees by inspiring integrity in the provision of training & development prospects to their employees. The study proposes additional research on the efficiency of strategies used by other organizations of higher rank to retain employees to benefit the organizations and employees.

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Theoretical framework
For an organization to gain employee commitment, it must provide good incentives,
rewards and training. “Commitment is critical to organizational performance, but it is not in a
panacea. In achieving organizational ends, there are other ingredients that need to be added to the
mix and when blended in the right complements, motivation is the result,” according to
O’Malley (2000). Most of the time, individuals are left for some of the reasons unconnected with
their work and it is necessary for companies to research on the source of turnover for efficient
employee retention (Mitchell et al. 2001). There are many approaches to the study of employee
retention each addressing different facets of intentional employee retention activity. The theories
that support this piece of study include;
The Maslow’s Hierarchy of Needs
According to the theory by Abraham Maslow at 1943, individuals tend to satisfy their
preliminary fundamental requirements before targeting to fulfill higher level of growth needs
(Stephens, 2000). According to his theory, it is the nature of the human beings to achieve self-
actualization and view the potential of the human as extremely underrated and incomprehensible.
The hierarchy of needs stated that individuals have five interdependent range of fundamental
human requirements or needs that should be satisfied in an order starting from the lowest
platform. These are physiological needs, safety or security needs, social needs, self-esteem needs
and self-actualization needs.
Physiological need -It is the preliminary or the first stage of the Maslow’s model. It is the basic
requirement for staying alive and to reproduce. This stage consists of some of the basic
necessities like water, food, air, shelter and adequate clothing.

Safety/security need- The second stage of the hierarchical model includes protection and safety
from risk and danger. It furthermore includes emotional, physical and environmental protection.
Employment security and protection from risks and danger are some of the basic factors of this
stage of the model.
Social needs: This stage includes the need for affection, love and belongingness.
The self-esteem needs: This stage includes the requirement for acknowledgment, respect and
appreciation from others.
Self-actualization needs- This stage is categorized as a growth necessity. It is known as one’s
optimum human potential. According to Stephens, this stage represents or highlights the
challenges of effective leadership traits since it is a major issue for any organization to provide
these phases in an environment.
According to Maslow, the higher stages of needs such as the social needs or the self-esteem
needs should only be addressed and tend to be fulfilled after meeting the minor necessities. The
progress of satisfaction for this empirical evidence is minimum. Throughout the experiences of
employment, the workers thus wonder around the pyramid of Maslow’s hierarchy of needs.
According to this theory, the manager of the organizations should develop agendas or terms for
satisfying the emergent and unfulfilled necessities for motivating the employees of the
organization since many of their requirements remains unfulfilled most of the time and they are
felt throughout. It is the responsibility of the managers of the organization to organize a
workplace environment where each and every employee in the organization gets the opportunity
to show their potentials and talents, when the concept of the necessity hierarchy is considered. In
case of failure to provide such an environment in an organization, it would hypothetically result

in reduction of gratification among employees, below average performance of the employees and
higher rate of withdrawal of employees from organization (Steers & Porter, 1983).
The two-factor theory by Herzberg
Herzberg, a psychologist brought forth this theory at 1959. The theory is most often also
referred to as the ‘Herzberg's motivation-hygiene theory’ and ‘The Dual-Factor Theory’. Brings
the concept of there being specific factors within a work place that bring about job satisfaction
and on the other hand specific factors that bring about job dissatisfaction. The fundamental to
this theory which is attitudes and its correlation with industrial psychological health is almost
same to ‘Maslow’s Theory of Motivation’. Herzberg derived aspects of hygiene that is related to
the environments where actions or work is undertaken relative to the internal and external
environment. Some of the dimensions of employment responsibilities and autonomy includes
benefits, salary, supervisor, policies of the company, working conditions and factors of
motivations.
One of the major example of satisfiers is the motivators. This is because these encourage the
development and growth of the employees that result in fulfillment. On the other hand, hygiene
is one of the examples of dissatisfies which tends to prevent job dissatisfaction but do hardly
contributes to the fulfillment of job. His discoveries resulted in a significant hypothetical also
practical influence on attitudes concerning administration.
From Herzberg, (1959), the concept that employees earning low income are often not satisfied or
pleasing. Individuals rather search for accomplishment, acknowledgement, accountability,
progression, and the working type or the category. Consequently, this correspond to the

Maslow's hierarchical theory on the necessity. In the same, Herzberg made an additional angle
by suggesting that the two-factor model of motivation that is developed on the existence of a
single type of feature of the work generally results to the satisfaction of the worker, on the other
hand, another separate type of work features lead to frustration in work. Thus, it can be said that
the concept of satisfaction and the concept of dissatisfaction are not the constant increasing or
diminishing but are independent singularities.
According to the theory both types of characteristics must be attended to since decrease in
dissatisfaction does not mean considerable increase in satisfaction. With that taken care of there
will be improvement of attitude and productivity.
Conclusion.
To conclude employee retention in organizations is governed by training and
development, performance evaluation, welfare benefits, disciplinary processes and of potential
for career development. One of the main contributor to the retention of the employees are the
institutional support for development and staff training. The employees appreciate the
significance of the training in career development. For training and development and to impose a
positive impact on retention of the employees, the programs must be fair, and promotions should
be based on the training acquired.
It is also noted that performance appraisal enhances retention of employment to employees in an
organization. Performance evaluation factors such as the precision of performance targets,
fairness in the rankings of performance and the use of performance results for career
development greatly affect employee retention. The main setback to enhanced employee

retention through performance appraisal at the organization level is lack of comprehensive when
performance targets are set.
Welfare benefits provided by organizations greatly influence employee retention. Employees can
be enthusiastic to hold their work post if they receive benefits such as medical scheme, leave
administration policy, education policy and the care provided on their general welfare.
The potential for career growth in organizations serves as a major factor in employee retention.
Employees perceive the support for staff career growth and development provided by the
organization as a motivator for employees’ retention. The employees also attribute their retention
to career growth features such as organizational support career development, merit-based
employee promotions, descriptive career track of the employee, Training and coaching agendas
for the staffs and practices of succession planning
Recommendations.
This piece of study thus recommends that organizations can improve retention of the
employees by inspiring integrity in the provision of training & development prospects to their
employees.
It is recommended that the duration taken to evaluate employee performance should be long
enough to allow comprehensive assessment and the process of evaluation should involve wide
consultations especially in setting performance targets. This ensures employees feel that they are
incorporated in the organization and they tend to retain their work for longer periods.

The study recommends that organizations can improve employee's retention by providing
welfare benefits that meet the need of employee in their places of work. For employees to
understand the importance of welfare benefits, organizations should provide the employees with
sufficient information that will enable them to appreciate the benefits and enhance their loyalty
to the organization.
The study recommends that organizations should make disciplinary rules and regulations clear to
their employees. Make sure those employees understand disciplinary procedures enable them to
appreciate any disciplinary decision related to them. This contributes to understanding between
employers and employees in the event of disciplinary action thus improving employee retention.
Suggestions for further Research
The study proposes additional research on the efficiency of strategies used by other
organizations of higher rank to retain employees to benefit the organizations and employees.
Summary
Retention of employees is fundamental for companies should concentrate on recognizing
and prompting factors that move purposefully refining and executing essential policies in areas
resourcefully to hold their employees. The main objective of this piece of study was to note the
effective techniques of retaining employees in organizations and influence of five factors namely
training and development, performance appraisal, welfare benefits, corrective procedure, and
career development on employee retention.

Employees are enthusiastic to hold their work while they get access to benefits such as medical
cover, a good leave administration policy, education policy and the care the organizations offer
on employees’ general welfare. The retention of employees in organizations can be realized by
humane handling from the supervisors and accessibility of opportunity for appeals on
disciplinary verdicts. The employees attribute employee retention to the aspects of career
development such as staff career growth by institutional backing, merit-based employee raises,
defined career track of employee, mentorship and coaching for the staff members, practices of
programs and planning of succession.

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