Challenges and Strategies in Employee Retention in Manufacturing Sector

This essay analyzes the challenges faced by employees in the manufacturing sector and explores strategies to attract and retain them. It discusses issues like dissatisfaction with salary, job opportunities, unrealistic demands, and work environment. It also suggests strategies like competitive salary and benefits, employee engagement, transparent communication, and creating a healthy work environment.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
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Introduction
The essay helps in the analysis of the different kinds of challenges which are faced by
the different companies in the manufacturing sector to attract and retain the talents in the
workplace. As commented by Tanwar and Prasad (2016), the retention of the employees is
the major challenge which is being faced by the companies as the employees expect monetary
motivation such as increase in the pay and it is not possible for the organizations to offer
them as it is beyond the budget of the company which impacts the morale of employees and
employees do not feel like working in such organizations.
In the present era, as commented by Stone and Deadrick (2015), there is huge
competition in the market for the employees. The businesses everywhere are looking to
expand the business and they are open for the different new positions. In such scenario, it is
one of the most difficult aspects which creates great pressure on the Human Resource
department of the companies to keep the most talented resources and provide the employees
with the best benefits for the benefits of the company in the long run. As commented by
Srimannarayana (2016), the most challenging role faced by the organizations in retaining the
employees who are valuable and talented.
Issues Faced by Employees in Manufacturing Sector
As opined by Noe et al. (2017), the different issues which are faced by the employees
in the manufacturing sector includes the following:
Firstly, the dissatisfaction related to salary is the major concern of the employees in
the organizations in the manufacturing sector as all the employees has high expectations
regarding salary and it is the major reason that the employees quit job. The retention in such
scenario becomes one of the most crucial problems as the employees quotes for the

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exceptionally high salary and it cannot be provided by the organizations to employees. As
each and every organizations have salary budget to be provided to employees and such
salaries can be extended or raised to a certain extent, however it is not beyond the certain
limit as well (Nankervis et al., 2016).
Furthermore, as opined by Msengeti and Obwogi (2015), there are different job
opportunities which are high as there is cut throat competition in the market which can be
able to attract the best talents in the organizations. The different organizations go a long way
for luring the talented employees from the different competitors present in the market. The
availability of the different lucrative offers which will be making it difficult to retain the
different talented employees in the organizations which will be affecting the overall
efficiency of the organization in a negative manner.
Moreover, as opined by Le Blanc, Demerouti and Bakker (2017), there are different
unrealistic demands of the different employees which cannot be managed and met by the
different employers in the organizations and it affects the reputation of the company and
therefore employees quit such jobs. Moreover, as stated by Kundu and Gahlawat (2016), the
different employees demand a good compensation as well as benefits from the job which is
performed by them, and when the similar thing does not happen, it becomes difficult for the
employers or the organization to retain such talents.
In addition, as commented by Kossivi, Xu and Kalgora (2016), each and every
employee working in the organization requires to be motivate for the work which is being
performed by them. However, from different scenarios, it can be identified and analysed that
such treatment is not provided in all the organizations which leads to decrease in morale of
employees and it reflects on the performance of the work of the employees as well. as opined
by Jilani and Juma (2014), the work environment is the other major factor which affects the

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motivation of the employees and it forces them to leave the jobs. In many scenarios, it can be
noticed that the work environment is not safe and healthy and the employees are not treated
well.
Additionally, as stated by Hosain (2016), there are different surveys and researches
have been conducted from which it can be identified that employees do not stay in those
places wherein the work is not meaningful and they do not have opportunities to grow in such
company. The people or the individuals who feel unappreciated sometimes seek
acknowledgement in the other areas of work. The boredom which are faced by the different
employees in the organizations can affect their work-life balance and it creates monotonous
aspect in the lives of the employees. Therefore, from the above, it can be identified that these
are the major challenges which are faced by the employees in the organizations and therefore
it leads to the different retention challenges faced by the organizations and it affects the
overall productivity of the organization in a negative manner as the talented employees are
quitting.
Analysis of Strategies to Attract and Retain the Staffs in Workplace
As commented by the different authors, it can be analysed that the retention is one of
the biggest challenges which are faced by employees and it affects the overall productivity of
the company in a negative manner. However, there can be implementation of different
strategies which can be adopted by the companies in the manufacturing companies as it will
be helpful in improving the morale of the employees as it will be enhancing their motivation
factors and the company will be gaining competitive advantage in the market as well.
First and foremost, the salary and benefits are the most important aspects which
should be implemented by the companies as it will be helpful in enhancing the strategies of
retention. The benefits and salaries should be competitive in nature as it is the first priority of

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the employees (Hejase et al., 2016). From the various surveys, it has been identified that the
hiring managers or the human resource managers found that more than 45% of the different
employees quit wherein the main reason is salary. The reason is followed by the advancement
in career along with better benefits as well as opportunities. The salary should be considered
as the most important essential factor which should be considered as it will assist the
companies in improving morale of employees and they can be retained.
Furthermore, the employee engagement is the other major factor which should be
considered to be the other essential priority as it will enhance the morale of the employees.
The companies need to have leaders and not bosses who should be providing the employees
with clear direction towards the future goals (Hanaysha, 2016). The different good leaders let
the employees know where the company is heading as it will make the employees feel that
they are being valued. The engaged employees assist in boosting the productivity of the
company and it will increase their morale in performing the different tasks and the customers
will be satisfied. When the employees will be engaged in the different activities in the
organization, it will be enhancing the culture of the company in an appropriate manner
(Deery & Jago, 2015).
In addition, the employees working in the companies should be treated in an equal
manner and the information provided should be transparent. It will be helping in building
trust in the companies as when there is no transparency regarding the reviews of the
performance of the employees, it can be identified and analysed that will lead to employee
dissatisfaction and quitting the job (Davis & Frolova, 2016). From the above, it can be
identified that the satisfaction is the core element which should be provided to the employees
as it will be enhancing the morale of employees in performing in a better manner and it will
increase the productivity of the company in an apt manner as well.

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Furthermore, as opined by Cloutier et al. (2015), the work environment in which the
employees are performing the different activities should be healthy and clean as it will be
creating a beautiful place to work in. In accordance to Herzberg’s Two Factor Theory, it can
be seen that the employees should be provided with both hygiene and motivating factors as it
will be enhancing the work culture and they will be able to deliver the best results that will be
beneficial for the overall growth of the company appropriately as well. Moreover, as
commented by Aruna and Anitha (2015), the work environment plays a vital role in
employee retention as they prefer to work in such environments wherein there is inclusion of
proper and appropriate facilities that can be incorporated by the company such as different
inclusion of leaves as well as other facilities which will be enhancing the overall culture of
the company and the productivity will be increasing in a positive manner.
In the different companies, more than eighty percentage of the employees come from
the middle-class backgrounds and the job security is the most essential factor which is
desired by them. However, in the present scenario, the different activities such as downsizing
and layoffs are affecting the retention of the employees as well as loyalty and in such
scenario, it forces the employees to look for the other job opportunities (Anitha, 2016). In
such scenarios, the companies play a major role in providing job security in the organizations
and the employees will be feeling that their decisions are taken into consideration and it
improves the morale of employees and the retention becomes easier. As the employees are
treated as the major assets of the company and they continue to stick with the company for a
long time (Aguenza & Som, 2018).
Conclusion and Recommendations
Therefore, from the above, it can be concluded that the employee engagement plays a
vital role in improving the productivity as well as profitability of the company in a proper

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manner. The different effective human resource functions will be helpful in ensuring that the
different employees establish the long-term association with the organizations beyond the pay
check which is provided to them. The different organizations need to go extra miles as it will
be enhancing the overall motivation of the company and they will be able to showcase their
abilities in performing the different activities in an appropriate manner as well.
In order to foster the environment which will be motivating as well as stimulating the
employees, the different managers need to incorporate the different motivation and team
building activities as it will be help in showing that the companies value their contributions
and it will impact their motivation in a positive manner. The different practices which should
be incorporated by the companies includes listening to the employees, respecting the opinions
provided by the employees and the assistance is the other effective approach which should be
managed by the company in the career advancement process. In addition, through the
employee engagement practices, the employees working for the long term are able to become
familiar with the practices and guidelines of the companies as it will be enhancing their
motivation and thus they can be able to adjust in a better manner.
From the analysis of the different strategies which are related to the employee
engagement and retention of the employees, it can be identified that the employees are the
crucial asset of the companies and they should be valued. Firstly, the companies need to
retain the valuable employees who shows their potential as it helps in improving the morale
of employees. In the manufacturing companies, the employees or the workers are required to
provide with growth opportunities as it will assist them in gaining proper insight on various
tasks and showcase their skills which will make them feel that their opinions are valued.
Furthermore, there can be inclusion of the executive coaching is the other major
approach that can be incorporated by the companies in manufacturing department as it will be

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motivate them and their talents will be showcased. The fostering of trust and confidence in
the senior leaders is the other approach that can be incorporated by the companies in
manufacturing industries as it will be helpful in developing strong kind of relationships with
employees and it will be building trust. The employers should be able to inspire confidence
and make the different decisions which can be reinforced.
For instance- In such scenarios, the employers should not force the employees to
work within a short span along with high quality as it will affect the performance of the
company negatively.
Moreover, the different employers in the manufacturing companies need to inspire as
well as engage the different employees through enacting the different policies which will be
showing that the employers trust them such as to get rid of the authoritarian management
style of leadership as it will improve their efficiency level and they can achieve the targets
within the short span of time as well. In addition, the employees should be made feel valued
through providing them with different responsibilities and receive recognition of the
contributions. The different manufacturing department employees should be rewarded at high
level to motivate them expect high performance form them as well (Abdullah et al., 2016).
The employees should be provided with the different kinds of growth related
opportunities by conducting the different workshops, software along with other tools as it will
be enhancing the performance and it will be helpful in enhancing the goal settings. The
employees are likely to be engaged in the work when they feel that the higher management
trusts them and it will be enhancing the motivation of employees in a proper manner as well
(Abdullah et al., 2016). the feedback and the coaching are the other techniques which can be
incorporated by the company as the coaching will be helpful for the company and they align
with the goals of the organization and meet the expectations.

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The proper usage of communication can be analysed as the major factor which
generates credibility as no matter what the size of the company, the communication is the
most central element in building as well as maintaining credibility. The positive kind of
communication culture will generate positive working environment and it will be beneficial
for the overall efficiency of the company in the future as well. Proper instilling of the positive
work environment can be established the companies in the manufacturing sector as it will be
helpful for them in developing the specific competencies, providing the performance
feedback along with designing the individualized plan for career development (Abdullah et
al., 2016).
From the above analysis of the recommendations, it can be identified and analysed
that retention of the employees is one of the major factors which should be followed and
managed by the different manufacturing companies in the competitive business environment
as it will enhance the culture of the company as it will be improving the overall productivity
of the company and the employees working in the respective companies. The training and
development of the different employees play a vital role in providing structured mechanism
for development of strong relationships with the employees as they are the major aspect of
the company and designing of the individualised development plan will be enhancing their
career and goal to develop competencies will be impacting the growth of the company and
abilities of the companies in a positive manner as well.

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