Risk Management: Employee Retention in Organizations

This report delves into the critical aspects of employee retention risk management, focusing on the challenges of employee attrition within organizations. It identifies key issues such as the impact of long working hours, overtime, and work-life balance on employee satisfaction and retention rates. The report highlights gaps in existing literature, emphasizing the need for further research on factors beyond organizational issues that influence employees' decisions to leave. It explores the impact of ineffective supervision and the importance of organizational pride in fostering employee engagement. The report proposes resolutions that include enhanced supervisory support, a balanced approach to productivity, and the implementation of flexible work arrangements. It concludes that work-life balance is a significant factor affecting employee motivation and attrition, underscoring the need for organizations to prioritize these aspects to improve retention. The report references various studies to support its findings and recommendations.

Running head: RISK MANAGEMENT: EMPLOYEE RETENTION
RISK MANAGEMENT: EMPLOYEE RETENTION
Name of the Student
Name of the University
Author Note

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Introduction
The study focuses on the essential analysis of the subject of organizational risk
management. The various prevalent issues that tend to affect the businesses of organizations are
addressed through the work. The specific problem area that has been focused in the study is the
issues of employee attrition. In the recent years various organizations have been critically
affected by employees leaving their jobs. This has significantly contributed towards lower
productivity and revenue across the various organizations that have been affected. Hence, there
is a significant need to identify the literatures considering the risk of attrition. Many gaps in the
literatures have also been identified that need to be essentially considered for future researches.
The evaluation of the issues are much important.
Issue identification
The recent literatures concerning the subject of employee retention have mostly focused
on the aspects of remuneration, reward management, employee engagement and organizational
culture. However, there has been lower number of literatures concerning the subject that have
addressed issues related to long working hours and overtime that affects the psychological and
physical aspects of the employees (Clemmer, 2017). Moreover, the exact effect of the factors
other than the organizational issues that affect the employees’ choice for leaving an organization
have not been addressed properly. Thus, there is a significant gap in the literatures that exists as a
result. It can be assumed that the organizational nature of the problem of attrition often leads to
the authors to provide clear organizational perspectives in writing about the problem. The
organization and the role of the employees in the organization are thus provided much greater
importance than the wide number of other psychological issues that can affect the employees.
Rising number of employee resignations are greatly affecting the various organizations. This is

2RISK MANAGEMENT: EMPLOYEE RETENTION
not only being caused by better opportunity provided by the competitors or any other widely
known but also due to the failure of companies to understand the specific job requirements of the
employees (Frye et al., 2018). This often contributes to the growth of the problem due to the lack
of significant literatures.
Impact
As mentioned above the issue in relation to longer working hours for employees and
overtime pressure have not been widely researched in the field of employee retentions. The
employee’s need to have a significantly satisfactory work-life balance has been a principle cause
for many employees leaving their organizations. The problem becomes more important as
organizations have not been very effective in addressing the problems at a wider corporate level.
This means that that the issue has not only become prominent at an organizational levels in the
past years but also affected the corporate sector in general (Clemmer, 2017). Hence, employees
have kept on leaving the organizations for similar reasons and their general corporate lives and
careers have been affected greatly as a result. Ineffective and abusive supervisory have been
blamed for higher levels of work life conflict in many of the previous literatures. This has led to
the growth of low levels of satisfaction among the corporate workforce of today. At the
individual level this is affecting the productivity of employees other than the demotivating them
towards having long lasting relationships with the organizations (Loganathan & Ashwini, 2017)).
Low work life balance is not only affecting the mental satisfaction of the employees but at the
same time it is affecting the quality of production, organizational integrity and industry
performance at a greater level.

3RISK MANAGEMENT: EMPLOYEE RETENTION
Existence of problem
The issue has been persistently affecting the organizations and the employees alike. The
main reason that can be identified from the previous researches is the lack of balance between
the aspects of organizational effectiveness and the amount of leisure that it can provide to the
employees. The most significant area that needs attention is the support that is required by the
employees to provide better performances (Stoeber & Damian, 2016). Organizations have failed
to provide effective levels of autonomy to the employees. This has contributed towards the lesser
individual growth of the employees with lesser amount of satisfaction to guide their
performance. A large number of employees have come under unfair and abusive supervision of
their employers due to this reason. The main reason for this issue remaining continuous in the
organizational context is the lack of proper attention that have been paid to the same over the
years. A significant aspect in this context that can be identified is organizational pride (Mas-
Machuca, Berbegal-Mirabent & Alegre, 2016). Organizations at the operational levels are being
unable to imbibe the value of pride within the employee. Hence, employees are being unable to
be satisfied with their roles in the organization at the basic level. This is contributing to greater
unsatisfied employees in the organization that is eventually leading to more employee attrition
moving forward.
Resolution
The resolution to the issue is manifold and this need to be provided in an integrative
manner. As identified above supervisory support becomes much important towards determining
employee satisfaction in a given organization. It is important that the supervisors provide
essential care to the employees for enhancing their motivational aspects. Supervisors are the
closest persons to employees within organization. Crucial elements affecting the work life

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balance for employees are being enhanced through better supervisory functions (Kumar, 2016).
It is important that at the greater organizational levels the focus is towards implementing a
balanced approach towards quality and quantity of productivity of the organization. Employees
need to be better guided and better motivated. Organizations are focusing on improving the
relationships they have with their employees (Loganathan & Ashwini, 2017). Organizations
currently are focusing towards more flexible work timings and overtime needs to be
implemented through strong consideration of the ethical values. In essence, employee’s work life
balance are being considered as crucial risks that can affect the functional abilities of
organizations.
Conclusion
In conclusion, it can be said that work life balance is critically affected by long working
hours and excessive overtime. In fact it is the greatest contributor towards lower levels of
motivation in the employees that in turn greatly increases employee attrition rates in the
organizations. The relevant literatures that have addressed these issues have been less. However,
it was also found that organizations are increasingly understanding this problem and contributing
more towards optimizing the work life balance of the employees.

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References
Clemmer, J. (2017). Customer satisfaction is a reflection of employee satisfaction. Accessed
March 6th.
Frye, A., Boomhower, C., Smith, M., Vitovsky, L., & Fabricant, S. (2018). Employee Attrition:
What Makes an Employee Quit?. SMU Data Science Review, 1(1), 9.
Hoffman, M., & Tadelis, S. (2018). People Management Skills, Employee Attrition, and
Manager Rewards: An Empirical Analysis (No. w24360). National Bureau of Economic
Research.
Kumar, G. A. (2016). A Study Of Employee Retention Strategies In Software Industry.
Loganathan, D. M., & Ashwini, S. (2017). A study on employee attrition and retention in
manufacturing industries. International Journal of Commerce and Management
Research, 3(7).
Mas-Machuca, M., Berbegal-Mirabent, J., & Alegre, I. (2016). Work-life balance and its
relationship with organizational pride and job satisfaction. Journal of Managerial
Psychology, 31(2), 586-602.
Stoeber, J., & Damian, L. E. (2016). Perfectionism in employees: Work engagement,
workaholism, and burnout. In Perfectionism, health, and well-being (pp. 265-283).
Springer, Cham.
Yedida, R., Reddy, R., Vahi, R., Jana, R., GV, A., & Kulkarni, D. (2018). Employee Attrition
Prediction. arXiv preprint arXiv:1806.10480.