Employee Retention: Theories, Evaluation, and Recommendations Report

This report provides a comprehensive overview of employee retention theories within the context of Human Resource Management (HRM), specifically focusing on the UK's public and private sectors. It begins with an introduction to the significance of employee retention, highlighting its role in organizational growth and development. The report then delves into various theories, including rewards and compensation, job security, workload reduction, transparent communication, training and development, and motivational culture. A critical evaluation of these theories follows, examining their strengths and weaknesses, and the report further emphasizes their importance in fostering employee satisfaction and organizational development. Finally, the report concludes with actionable recommendations for improving retention strategies, such as enhancing HR policies, promoting innovative ideas, and integrating corporate culture with motivational concepts. The report aims to provide a holistic understanding of employee retention, equipping readers with practical knowledge and insights for effective HRM practices.

Running Head: Report
Contents
Introduction.................................................................................................................................................3
Different types of Theories..........................................................................................................................3
Critical Evaluation.......................................................................................................................................5
Importance of Theories................................................................................................................................6
Recommendations.......................................................................................................................................6
References...................................................................................................................................................8
2

Running Head: Report
Introduction
The retention is considered as one of the primary factor for the growth and improvement of the
employees. The retention can be helpful in providing specific assistance for development of the
employee. The employee retention not only play a vital role in the development, but also
provides specific growth in the process of business development for the organization. In fact, the
HRM also plays a specific role in designing specific employee retention theories. The process of
retention also helps the employee to sustain in the competitive environment and simultaneously
increases the trust of the employees towards the organization. There is a wide range of theories
specified for the process of employee retention. The report specified below mainly covers
different types of theories implemented in the public and private sector of the UK. Apart from
this, the critical evaluation, importance of theories and suitable recommendations for the
improvement of theories are also specified.
Different types of Theories
The staff retention applications are identified as one of the major responsibility managed by the
HRM. The applications or theories which are implemented by the HRM in UK are various in
numbers. The organizations such as the Swire, Stemcor and British Airways change their
retention policies as per the requirements of the employees. Some of the most common theories
are specified below:
Rewards and Compensation is the most traditional and widely used theory which helps in
providing assistance to employees. Through these theories, the employees can able to manage
3

Running Head: Report
the most specific aspects related to the development. The rewards can be in the form of an
amount, points or some shopping carts. The employees can easily get motivated towards the
corporate environment.
Job Security or Job stability is also identified as one of the most common aspect which can be
identified by the HRM. This theory will be helpful in improving job aspects in relation to the
employees. The employees can easily focus on work and can also able to provide more specific
input to the organization.
Workload reduction is another theory which can be implemented for the employees in the
organization. The reduction of work will be helpful in managing the work life balance on a wide
landscape. The management and stability in the lifestyle will help in providing specific
assistance for the growth and development. Through this theory of retention, it could become
easier to manage the economic aspects in respect to the organization (Duchastel, 1981).
Transparent methods of Communication are identified as the method through which
transparent and precise communication can be possible. This communication will be helpful in
providing assistance to the employees in the correct direction. The employees can easily able to
share various views and approaches related to the work and services. This will help in improving
the productivity and output related to the organization.
Training and development is the most used and admired theory related to the staff retention
applications. To develop the interest of candidates in the most specific manner, it is essential for
HRM to introduce weekly or monthly sessions for training and development for the employees.
This will help in driving the interest of employees in activities which are majorly performed in
4

Running Head: Report
the organization. The training and development may also help in innovating the hidden
perspectives in employees.
Motivational culture is the most basic tool or theory which is helpful for the employees in
various conditions. The employees can able to gain maximum motivation by their seniors and
team mates. The motivation factor not only helps in improving the positive energy of the
employees, but it will also aid in driving maximum productivity on the corporate level. The
employee’s working aspects may also increase in a coordinated manner (Chandu et al., 2014).
Critical Evaluation
The critical evaluation will be helpful in providing an opportunity to calculate some positive and
negative factors related to the theories. On an organizational level, if the training and
development is not organized by the HRM correctly, then the impact for the process cannot be
executed successfully. The training and development theory can also work properly, if the
planning is correct (Das & Baruah, 2013). The training won’t be successful if the planning is not
identified in the correct direction. In an organizational context, transparent communication
system can create both positive and negative impacts. In some organizations of UK, the
transparent system helps in providing stability and in the other organizations, it creates a
negative impact on the growth aspects of the employees (Shakeel & But, 2015).
5

Running Head: Report
Importance of Theories
Every theory or application holds its specific importance, but to explain the specific importance
of these theories on simultaneous level, some common points are defined below:
 The level of satisfaction for the employees will be improved with the help of these
retention theories. To provide them with specific direction, it is essential to come up with
new approaches (Ellucian Company L.P., 2017).
 These theories are helpful in the holistic development of the organization. The economic
as well as the developmental process can be possible by the help of these theories.
 To manage perspectives related to the human resource management, these theories are
important.
 Finally, these theories of retentions provide suitable directions for improvement in a
specific manner (Holtom & Mitchell, 2008).
Recommendations
To improve the negative aspects related to the theories, some of the recommendations are also
framed. These recommendations will be helpful in providing specific assistance for the
improvement. Firstly, the HR has to make policies and planning for improving different aspects
related to the organization. The stable growth and development procedures should be well
framed for the employees on a large level. Secondly, to eradicate these common issues related to
the employees, it is essential to look forward for the new approaches and innovative ideas. This
will help in providing assistance for an improvement. Apart from this, it is also recommended
6

Running Head: Report
that the proper blend of corporate culture and motivational concept is required on a wide level.
This will help in promoting the retention theories in public and private organizations of UK.
7

Running Head: Report
References
Chandu, G. et al., 2014. A comparative study of retention of complete denture base with different
types of posterior palatal seals – an in vivo study. PMC journal, 6, pp.95–100.
Das, B. & Baruah, M., 2013. Employee Retention: A Review of Literature. IOSR Journal of
Business and Management (IOSR-JBM), 14(2), pp.08-16.
Duchastel, P., 1981. Retention of prose following testing with different types of tests.
Contemporary Educational Psychology, 6(3), pp.217-26.
Ellucian Company L.P., 2017. Retention and student success: Implementing strategies that make
a difference, Available at: http://www.ellucian.com/Insights/Retention-and-student-success--
Implementing-strategies-that-make-a-difference/
Holtom, B. & Mitchell, T., 2008. Turnover and Retention Research:A Glance at the Past, a
Closer Review of the Present, and a Venture into the Future. The Academy of Management
Annals, 2(1), pp.231–74.
Shakeel, N. & But, S., 2015. Factors Influencing Employee Retention: An Integrated
Perspective. Journal of Resources Development and Management, 6, pp.32-51.
8