Employee Retention Strategies

This assignment delves into effective employee retention strategies. It examines the importance of comprehensive benefit packages in attracting and retaining talent, providing examples of common benefits. Additionally, it discusses the implementation of acclimatization plans to help employees adjust to new environments and work demands, highlighting best practices for successful integration.

MANAGING HUMAN CAPITAL

EXECUTIVE SUMMARY
In the summarised report, methods are highlighted to retain group of managers, as it is
important to retain them in organization for better functioning of it. Retention of employees is
also equally significant, as it becomes harder to train workers again and again as it is wastage of
time for firm, which has diverse impacts on company's growth prospectus have been also
explained briefly.
Types of acclimatisation programme and training are also summarised to help expatriate
employees adapt new changes. Further, methods of retaining group of managers are also
mentioned which are: training, mentoring, install a positive culture, use of communication to
build credibility, encourage referrals and recruit from within, provide growth opportunities,
foster trust and confidence in senior leaders, etc.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. number of middle to senior managers that would be recruited by company and its
justification.............................................................................................................................1
2. Assessment of the need to hire senior and/ or junior managers.........................................2
3. Evaluation of the need of employees to have institutional qualification v/s relevant work
experience...............................................................................................................................1
4. Competitive Compensation and benefit packages for employees......................................3
5. Types of Acclimatisation programme and training............................................................5
6. Methods of retaining groups of managers..........................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Human Capital Management is a set of practices to recruit, develop and optimize human
resources of an organization. Whereas, Human Capital is the stock of knowledge, habits, social
and personality attributes which also includes creativity.
The present report is a brief analysis and research of a local conglomerate company of
Thailand i.e. The Central Group of Companies. This company deals in real estate, retailing,
merchandising, hospitality and restaurants in different parts of world and this study put emphasis
on its human capital requirement which is expanding its business in Indo-China. This project is
completed as Vice President of Human Resource who is responsible to recruit and retain a group
of middle to senior managers over the next three years.
This project includes considerations of the number of middle to senior managers that are
to be recruited by company to fulfil requirements of managers with their justifications, and there
is a need to hire senior or junior manager and concluded that an optimal mix. Further, evaluation
of the needs of employees with relevant work experience and institutional qualifications.
Packages of attractive and beneficial compensation for employees are also mentioned in this
report. Further, training programmes that could be provided to assist expatriate employees in
adapting new culture and environment are also given emphasis so that each and every employee
could work effectively and efficiently.
MAIN BODY
1. number of middle to senior managers that would be recruited by company and its justification
To expand their business in Indo-China, this company would be hiring four middle
managers and three senior managers (Paché and Ika, 2016). Sr. Managers are the ones who
determine broad strategic movement for organizations in general to focus on big picture whereas,
middle managers are at an intermediate management level which are accountable from top to
bottom as well as are responsible for leading lower level managers.
The following functions of senior and middle level of managers, that would be performed
by them to attain success in diversification of company are as follows:
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Middle Managers
 Implementing and Designing effective work group and information system.
 Defining group level performance indicators.
 Solving work place related problems to maintain peace. Designing proper system for rewarding employees for their good work.
Senior Managers
 The Most important function of Senior Manager is to look after the entire
organization.
 Another function of senior manager is to look after company's policies, regulations,
rules, discipline, financial investments, discussions with the board, etc.
All middle managers would be recruited from Indo-China itself to assure their retention
for at least 3 years (Bratton and Gold, 2017). Company would be recruiting managers from the
country itself where it is going to be situated as it would be beneficial to hire locally employed
managers as they will be cheaper than hiring from other countries, also they will have no need to
reallocate themselves to different countries, and adopting their culture or environment which
would assure their retention as well. There is another option left for recruiting middle managers
from country of Domicile which could assist company in maintaining traditional environment.
Expatriates would be recruited in the position of Senior Managers, as company would be
benefited from it only. Recruiting expatriates from other countries is good, as it enables company
to have diversified ideas of different traditions, environment and country (Popescu, Comanescu
and Sabie, 2016). One with experience is far better than an individual having good qualification.
The Central company is diversifying their businesses in Indo-China to encourage good growth
and development with employee retention for at least 3 years as it is highly recommendable to
hire an individual with good experience irrespective of its tradition, or background.
As an outcome, the company could suggest to recruit middle managers from Indo-China
or from country of Domicile and senior managers as expatriates from other countries to attain
success and establish effective and diversified hierarchy.
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2. Assessment of the need to hire senior and/ or junior managers
Assessment for the need of hiring senior or junior managers could be done by evaluating
steps of determining optimal mix.
So here are some steps to determine an optimal mix:
 Step 1: In this step, production processes is analysed and elimination takes place of
activities that do not add value to the company and are not necessary (Grohsjean and
Kryscynski, 2018). To determine optimal mix, the manufacturing process of product
must be as efficient as possible. For example: if certain machine is not in use and not
needed any more during production, then turning off such machine will reduces cost
and save electricity. Same could be done with employees, if at a place, three workers
are appointed to monitor the process and only two are needed and the other one
should be eliminated to increase efficiency and reduce costs.
 Step 2: Cost is calculated which is associated with products after eliminating
inefficiencies.
 Step 3: In this step, Investigation is done of possible constraints faced by the product
line.
 Step 4: In this step, generated gross revenue from product must be calculated by
multiplying the number of units sold by price per unit (Human Capital Management,
2018). Then total percentage of sales would be calculated on the basis of product
contribution to overall bottom line.
 Step 5: Here, study is done on costs and benefits of each product to determine an
optimal mix. It is possible that during investigation, it was found that product is
relatively inexpensive to produce and makes up a significant proportion of annual
gross sales.
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Need for junior and senior managers could be determined by the following points:
Senior Managers
 To provide guidance to direct reports.
 To ensure clarity around priorities and goals for the entire functional area.
 Approving investment requests.
 Guiding talent identification and development processes for a group or function.
 To ensure collaboration for shared goals.
 Interact with senior managers for reporting.
Junior Managers
 To supervise different tasks in the quest of completing a project.
 To maintain flow of information from the project owner to the team.
 To conduct rules and regulations to the working teams.
 To make provisions of the project.
 To ensure that all the rules, procedures and regulations governing project management
are well adhered.
 To set specifications and make a higher standard.
 To make arrangements for the project completion based on specifications of the project
owner.
 To suggest strategies of achieving the project goals to the owner.
3. Evaluation of the need of employees to have institutional qualification v/s relevant work
experience
Every employer put more emphasis to experience and positive mental attitude towards
work than a degree when they are hiring graduates (Hollenbeck and Jamieson, 2015). The study
of 500 employers found that, while hiring graduates’, half of them were looking for relevant
work experience to have good work ethics and a degree on relevant subject to find the job. It was
observed that only one out of four employers, were interested in candidates with qualifications. It
has become necessary to gain real life work experience as part of course and has become a key
requirement.
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Following are attributes for which employers look for in this era of decreasing
importance when hiring graduates:
 Relevant work experience.
 Good work ethic.
 Studied subject degree.
 Mature attitude.
 Class of degree.
 Natural leadership.
 Career minded and ambitious.
Reasons for it:
 Poor spelling, grammar in application.
 Obvious exaggerations.
 Poor presentation of application.
 No relevant work experience.
Over the year, it is noticed that employers are more focused upon employees work
experience than on educational qualifications (Kariv and et.al., 2016). This era of modern and
technological environment has developed a need for experienced employees than degree holders.
Every employer wants to deal with an individual with practical knowledge and the ones, who
knows better ways of doing the same job again and again then an individual having theoretical
knowledge and does not know much about the practical aspect of the same. Employers refrain
from recruiting a degree holder because it takes lot of time to train that employee for suitable
role and it is far better and easier to make an experienced worker familiar with his or her job
(Cosack, Guthridge and Lawson, 2010). The need for gaining work experience has developed
over the years; every company wants to grow faster to diversify itself across the globe for which
ready-made employee (one with experience) is better than a raw worker (inexperienced
employee).
So, The Central Group of Companies would recruit employees with relevant work
experience to grow and develop faster in Indo-China (Mahapatra, 2015). As it would not be so
profitable for the company to hire an employee with good qualifications than an experienced one
because it would take lot of time, money and efforts to train and develop an employee from zero
base.
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4. Competitive Compensation and benefit packages for employees
Employees benefits in packages are the choice of employers which provide a
comprehensive package to attract them and assure their retention (Carraher, 2011). It is a
standard and expected part of an worker total compensation in addition to a competitive
employee benefit salary. It also possible to customise an worker benefit package according to
needs and desires of its worker.
The Central Group of Companies should take care of the following types of
comprehensive employee benefit packages:
 Health Insurance: It is the basic and the foundation of any comprehensive employee
benefits packages that employees wants and need. This is the most preferable employee
benefit that the majority of employee who work want.
 Paid time off from work: Employers should provide a variety of options for paid time
off.
 Short term and long term disability insurance: It ensures that an employee will still
receive a percentage of income if they are not able to work due to sickness or injury
(Osibanjo and et.al., 2014). It is important as it provides employee with significant
protection who cannot work on a short term basis.
 Retirement plans for employees or 401(K): These are important to attract and keep
talent in company.
 Health Care flexible spending accounts (FSAs): Employers are shifting cost endlessly
to employees in the form of higher co-payments, as health care premiums are continued
to increase at a rapid rate. Many managers are implementing Health Care Flexible
Spending Account plans because of these out-of-pocket expenses.
Some guidelines for developing a highly competitive benefits program that will help
company to be known as a workplace that offers `great compensation` are as follows:
1. Choice for required health care benefits: Health care benefits that fits under minimum
requirements must be chosen such as preventative medical care for all eligible employees
and vision care for children. Then two other plans should be explored that might offer
next level of health and wellness coverage.
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2. Select Low Cost Voluntary Benefit Options: There must be variety of plans that should
be offered to employees so that they can choose plans that fit their unique lifestyle
because a single plan cannot fulfil all their wants and needs. Also, low cost, voluntary
benefit options can also be provided to them by working with an insurance broker.
3. Generous Financial Benefits: Providing employees with flexible savings account or
health fund account can help in stretching their pre-tax dollars for items that insurance
may not cover (Hameed, Ramzan and Zubair, 2014). Employees could be given more
purchasing power through corporate discount programs via stock incentives.
4. Invest in the success of people: By setting company learning centre and offering regular
training and development classes, another valuable player could be added to company
benefits plans just by investing in employees’ skills and knowledge in the industry.
5. Provide more Work Life Balance: This process may include access to on-site lifestyle
services as well as flexible scheduling that allows parents and caretakers the ability to
manage demands on their time.
By following the above mentioned guidelines, The Central Group of Companies would
be benefited in becoming highly competitive and could appeal to numerous employees.
An example of employee benefit packages is as follows:
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5. Types of Acclimatisation programme and training
Acclimatisation is a process in which an individual adjusts himself according to the
change in its work environment and culture. It allows it to maintain performance across a range
of environmental conditions, as it occurs in a short period. Heat acclimatisation programme
could be provided to expatriate employees in order to enable them in adapting to the new culture
and environment (Lee and et.al., 2012). As company is diversifying itself in Indo-China, it may
be required by expatriate employees to adapt themselves according to the heat strokes.
Heat Acclimatisation is the process of slowly exposing the body to high temperatures in
order to build tolerance. In other words, it is a process which allows the body to physiologically
adapt to temperatures in the work place. This process should be conducted once in a week. There
are five steps to create an acclimatisation plan:
1. Increase heat exposure gradually: Centres of Disease Control and Prevention says that,
new crew members should not expose to more than 20 percent of heat exposure on the
first day. Workers should be exposed to heat gradually instead of all at once.
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Illustration 1: Example of employee benefit packages
(Source: What's in a Comprehensive Employee Benefits Package, 2018)

2. Keep a Schedule: New employees should be tracked from day one to day five with
exposure percentages and specific times of a day (5 steps to create an acclimatization
plan, 2014). This should be continued for days where the heat index might be
exceptionally high so that they get enough time to make themselves comfortable
according to the change.
3. Pick a Partner: Heat stress could be reduced by creating a buddy system on the job site.
As, they both can look after one another on job sites which would be beneficial in
keeping track of sun exposure and help in emergency situations.
4. Train Employees: Rule of heat exposure could be directed to foreman and crew
members by landscapers. Company should hold safety training sessions weekly in order
to teach employees about the schedule.
5. Place the plan in the office: New acclimatization plan should be visible in office. By
doing this, employees could be encouraged to follow the guidelines. The plan could be
form in bullet points list, visual demonstrations or in the form of physical schedule of
heat exposure.
In order to implement acclimatisation programmes and training managers of company
should also consider the type of work being done at the job sites (Sehra, 2010). By following
above mentioned steps company can achieve success in this type of training and programmes.
6. Methods of retaining groups of managers
Here are some effective methods that should be used by employers of the company to
ensure retention of group of managers:
 Training: Employees should be provided with training as it strengthens them to their
sense of value (Dawson and Abbott, 2011). Through training, worker are helped by
employers to achieve goals and ensure a solid understanding of their job requirements.
 Mentoring: Strong relationships could be developed by integrating mentoring program
with a goal oriented feedback system which provides a structured mechanism within
company.
 Install a positive culture: The company should create a right culture to gain an
advantage in attracting and keeping good employees.
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 Use of communication to build credibility: It is important for employees to know what
managers want from them and should know that the employers is really listening and
responding to employee input.
 Coaching/feedback: To align efforts of worker with the goals of the company and meet
expectations, it is important for organisation to give feedback and coaching to worker
(Retaining key employees in times of change, 2010).
 Encourage referrals and recruit from within: Current employees should be offered
with referrals to minimize confusion of job expectations. Another way an employer can
lessen the impact of turnover is to hire from within.
 Provide Growth Opportunities: Workshops, software and other tools should be
provided by an organization to employees to assist them in increasing their understanding
of themselves and to enhance their goal setting efforts (McKenna and Martin, 2016).
Employees are more likely to stay engaged in their jobs with an organization that makes
investments in them and their career development.
 Foster trust and confidence in senior leaders: Strong relationships should be build up
with employees from the start to develop trust. It is required by employees to believe that
top level of management is competent and that the organization would be successful
(Strategies for Retaining Employees and Minimizing Turnover, 2010). Employers should
engage employees and inspire them by enacting policies that show they trust them, such
as getting rid of authoritarian style of management.
 Lower stress from overworking and create work/life balance: It is important to match
work/life benefits to the needs of employees. This could be achieved by offering non-
traditional work schedules or extra holidays. Encouraging employees to set work/life
goals such as, spending more time with their children, communicating the needs of
having life outside of work can result in good employee retention.
It could be said that by proper retention strategies, group of managers could be retained in
an organization. The Central Group of Companies can make use of above mentioned strategies to
encourage retention of group of sr. managers.
CONCLUSION
The concluded file represented growth strategy of The Central Group of Companies. For
diversification of their business in Indo-China, Functions of both managers are also specified
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clearly in this file to attain success in growth It was concluded that expatriates that would be
recruited for the position of senior managers and middle from the country of domicile. Further,
steps of optimal mix are also summarised to determine need of hiring senior or junior managers.
In this report, it is also summarised that employees with relevant work experience are far
better than the ones with institutional qualifications. It was noticed that managers and employers
are also more focused towards employees with relevant work experience than on educational
qualification.
In addition, it was observed that competitive compensation and benefit packages should
also be introduced for employees to attract them and assure their retention. Health Insurance,
paid time off from work, Short term and long term disability insurance, Retirement plans for
employees or 401(K) and Health Care flexible spending accounts (FSAs) are types of
comprehensive employee benefit packages that should be taken care of by The Central Company
accompanies by guidelines to implement it.
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REFERENCES
Books and Journals
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Carraher, S. M., 2011. Turnover prediction using attitudes towards benefits, pay, and pay
satisfaction among employees and entrepreneurs in Estonia, Latvia, and Lithuania. Baltic
Journal of Management. 6(1). pp.25-52.
Cosack, S., Guthridge, M. and Lawson, E., 2010. Retaining key employees in times of change.
McKinsey Quarterly. 3(1). pp.135-139.
Dawson, M. and Abbott, J., 2011. Hospitality culture and climate: A proposed model for
retaining employees and creating competitive advantage. International Journal of
Hospitality & Tourism Administration. 12(4). pp.289-304.
Grohsjean, T. and Kryscynski, D., 2018. Origins of strategically relevant firm-specific human
capital. In Academy of Management Proceedings (Vol. 2018, No. 1, p. 11692). Briarcliff
Manor, NY 10510: Academy of Management.
Hameed, A., Ramzan, M. and Zubair, H. M. K., 2014. Impact of compensation on employee
performance (empirical evidence from banking sector of Pakistan). International Journal
of Business and Social Science. 5(2).
Hollenbeck, J. R. and Jamieson, B. B., 2015. Human capital, social capital, and social network
analysis: Implications for strategic human resource management. Academy of
management perspectives. 29(3). pp.370-385.
Kariv, S., and et.al., 2016. Human Capital Management System and Method. U.S. Patent
Application 15/153,776.
Lee, J. K., and et.al., 2012. Effects of heat acclimatisation on work tolerance and
thermoregulation in trained tropical natives. Journal of Thermal Biology. 37(5). pp.366-
373.
Mahapatra, S., 2015. Management of Infected Non-Union by Implant Retainment and Papineau
Open Bone Grafting–Report of Two Cases. Indian Medical Gazette. p.119.
McKenna, H. and Martin, D., 2016. Surviving physiological stress: Can insights into human
adaptation to austere environments be applied to the critical care unit. Trends in
Anaesthesia and Critical Care. 11. pp.6-13.
Osibanjo, A. O., and et.al., 2014. Compensation packages: a strategic tool for employees'
performance and retention. Leonardo Journal of Sciences. (25). pp.65-84.
Paché, G. and Ika, L., 2016. European Professional Football Club Image and Human Capital
Management. International Journal of Business Administration and Management
Research. 2(3). pp.31-34.
Popescu, G. H., Comanescu, M. and Sabie, O. M., 2016. The role of human capital in the
knowledge-networked economy. Psychosociological Issues in Human Resource
Management. 4(1). p.168.
Sehra, P. S., 2010. A Visit to the South Pole. Resonance. 15(4). pp.384-391.
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<https://searchhrsoftware.techtarget.com/definition/human-capital-management-HCM>
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<https://www.totallandscapecare.com/green-industry-news/5-steps-to-create-an-
acclimatization-plan/>
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Strategies for Retaining Employees and Minimizing Turnover. 2010. [Online]. Available
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