Employee Retention Strategies

This MBA assignment analyzes the issue of low employee retention within a company. The student conducts a survey and interviews to identify the root causes, which include lack of performance appraisal system, biased management behavior, and unrealistic targets. The assignment proposes solutions such as implementing a 360-degree appraisal system, understanding employee needs, revising targets and salary packages, and shuffling teams to reduce bias.

Running head: MBA ASSIGNMENT
MBA Assignment
Name of the student:
Name of the University:
Author note:

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To: (Name of the Boss)
From: (Name of the student)
Date: 13th September 2017
Subject: Addressing poor rate of retention within the organization
Thank you for providing us the opportunity of working with your prestigious company. As
requested, we have conducted a detailed research for knowing the actual reasons and facts
behind the poor performance of the organization in the previous quarter. We have found that the
poor performance was a result of the poor employee retention rate within the organization.
Through the research and analysis, we have found that the employee retention rate in the
previous quarter has been as low as 53%. This indicates that a large number of employees
working within the organization have left the organization due to several reasons. It is necessary
to find out the root cause of the high rate of employee turnover to find appropriate solutions that
shall help in improving the productivity of the organization.
You asked that I look at the business problem and find the solutions to the issue. Therefore, I
conducted a survey within the organization in which the organizational employees and managers
took active part and provided their complete support for the successful accomplishment of the
survey process. For this purpose, I prepared a questionnaire and circulated its copies within the
organization in order to know the actual reasons behind the high rate of employee turnover
(Panneerselvam, 2014). The questionnaire aimed at knowing the relationships between the
employees and the employers as well as the relationships within the employees. It aimed at

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knowing whether the working conditions were suitable or not and whether the job became a
burden for them or they enjoyed their work. Later, I had a face-to-face conversation with the
employees and the managers in order to obtain detailed information regarding the issue. I have
based the research upon the question: What are the business problems faced by the organization
and how can they be resolved? I have used quantitative research approach in order to ensure the
quality and accuracy of results obtained.
The research conducted within the organization has thrown light upon the actual reasons behind
the low rate of employee retention. The research was conducted upon 900 employees and 25
managers. The results have shown that a majority of the employees felt undervalued due to the
absence of a proper performance appraisal system. Lack of proper appraisal system have lowered
the motivation levels among the employees to achieve their targets. A performance appraisal
system refers to the method using which the performance of the employees are reviewed,
evaluated and discussions are made regarding their career development. The lack of the system
of documenting and evaluating the performance of the employees resulted in lack of motivation
to achieve the targets. 83% of the employees mentioned that the targets set by the management
were too high for them to achieve due to which they were unable to earn incentives and mere
salary was not enough for them to lead a satisfactory lifestyle. The results showed that the
management did not provide adequate training to the employees to improve their skills and
abilities. The employees had several grievances, which increased the employee turnover rate
within the organization. 72% of the organizational employees expressed their grievances, which
were linked with the biasness and rude behavior of the managers. It was finally discovered that
the major reason behind the increased rate of turnover was lack of a proper performance
appraisal system and the biased attitude of the managers (Reeve, 2014). A majority of the

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colleagues of the employees who left the job in the previous quarter mentioned that they were
unable to perform due to the biased and rude behavior of the managers and those who performed
were not provided with the adequate rewards and recognitions. They also mentioned that a
majority of the employees left the organization to look for better job opportunities and many of
them have joined our rival firms, who have been offering better incentive schemes with lower
targets. Therefore, the organization needs to devise suitable plans to increase the employee
retention rate and to reduce the turnover rate in order to maintain the efficiency of the
organization and to gain competitive advantage over the other rival firms.
Considering the results obtained from the research, I would like to recommend a few solutions
that might help the organization to restore its efficiency and productivity along with improving
the employee rate of retention. The first recommendation is to implement a 360 degree appraisal
system within the organization. 360 degree appraisal system is the one wherein the performance
of the employees are reviewed from the perspectives of their co- workers, managers,
subordinates and the other organizational members (Aggarwa & Thakur, 2013). This involves
obtaining feedback from the co- workers, managers, subordinates and the other organizational
members based upon which the performance of an employee is critically analyzed (Karkoulian,
Assaker & Hallak, 2016). This helps in obtaining complete information regarding the
performance and the behavior of the employees, which the management utilized to offer them
appropriate rewards and recognitions. This shall help in motivating the employees to achieve
their targets and feel important. The second recommendation is to understand the needs and
wants of the employees. For instance, some employees are motivated when they receive some
monetary rewards while the others crave for recognition. Understanding the motivational needs
of the employees shall help the management to implement an appropriate performance appraisal

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system, which would increase the employee retention rate within the organization. I would also
recommend to revise the present targets and salary packages in order to make the targets
bearable for the employees and prevent them from leaving the organization and joining our rival
firms. Lastly, I would recommend to shuffle the teams every quarter so that the managers can be
refrained from practicing biasness within the organization. This would encourage the employees
to work efficiently and achieve their targets.
I will be glad to discuss the above recommendations with you during our way to the conference
meeting on Friday and follow through on any decisions you make.

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References:
Aggarwal, A., & Thakur, G. S. M. (2013). Techniques of performance appraisal-a
review. International Journal of Engineering and Advanced Technology (IJEAT), 2(3),
2249-8958.
Karkoulian, S., Assaker, G., & Hallak, R. (2016). An empirical study of 360-degree feedback,
organizational justice, and firm sustainability. Journal of Business Research, 69(5), 1862-
1867.
Panneerselvam, R. (2014). Research methodology. PHI Learning Pvt. Ltd..
Reeve, J. (2014). Understanding motivation and emotion. John Wiley & Sons.

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