Employee Retention: Analyzing Herzberg's Two-Factor Theory

This report delves into the concept of employee retention, emphasizing the application of Herzberg's Two-Factor Theory. It explores the significance of both motivation and hygiene factors in enhancing job satisfaction and increasing retention rates. The report highlights the importance of incorporating both incentive and non-incentive strategies to boost employee morale and commitment. Furthermore, it underscores the critical role of hygiene factors in creating a positive work environment. The report provides an overview of the theory and suggests practical applications for improving employee retention within organizations by balancing motivation and hygiene factors. The conclusion summarizes the key findings, reinforcing the importance of a holistic approach to employee retention.

EMPLOYEE RETENTION
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Introduction
In this study, discussion will be made regarding the management concept of employee
retention. This concept refers to the ability of an association to retain their employees by
enhancing their job satisfaction.
Employee retention
For employee retention, the Herzberg’s theory operates. This hypothesis operates with
two broad categories: motivation and hygiene theory. It is also known as dual factor theory.
As per this hypothesis, it states that an organization should work on two aspects to increase
their employee retention rate. Under the motivation factor, an organization should make a
wise decision to select tactics of motivation such as incentive or non-incentive tactics. Non-
incentive tactics includes: appreciation, providing job security, encouraging employee’s
participation in decision making, etc. On the other hand, incentive factors of motivation
include providing more earning opportunity, performance-based incentive, etc (Alfayad &
Arif, 2017).
This hypothesis also suggests that an organization should not consider on only a
single motivation aspect. For example: an organization should not concentrate on only one
factor, either non-incentive or incentive factor. In order to increase employee retention ration,
an organization should make strategies that incorporates both motivation aspects (incentive or
non-incentive). Now, focusing on hygiene factors also resultant in enhancing employee
satisfaction in the effective and efficient way. Hygiene factors focuses on characterize the
environment of an organization (Alshmemri, Akl, & Maude, 2017).

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Conclusion
It is concluded that the Herzberg’s theory operates in the context of employee
retention. This hypothesis states that an organization should force on two aspects in order to
enhance employee satisfaction. Such as: motivation factors and hygienic factors.

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References
Alfayad, Z., & Arif, M. L. (2017). Employee voice and job satisfaction: An application of
Herzberg two-factor theory. International Review of Management and Marketing,
7(1), 150-156.
Alshmemri, M., Akl, L. S., & Maude, P. (2017). Herzberg’s two-factor theory. Life Science
Journal, 14(5), 12-16.