Employee Retention Strategies at Gist Limited: A Comprehensive Report

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Employee retention at Gist Limited
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Executive Summary
As Waal & Coevert (2012) point out, high employee turnover is associated
with a number of costs, which can eat into the bottom-line of the companies. When
the high levels of employee turnover are not taken into consideration by organizations
like Gist Limited, it can significantly affect their overall performance. Therefore, they
need to ensure that various measures are put in place to retain their employees, as this
can significantly improve their overall performance.
The aim of this report was to explore the strategies, which have been used by
Gist Limited to retain their employees and to explore the level of effectiveness of the
strategies. The findings of the report indicates that a number of employees leave the
organization for others due to a number of reasons, which include lack of training and
development opportunities.
The report offers a number of strategies, which can be used in order to ensure
that the company retains the employees. Some of the main strategies, which the report
recommends include making sure that there are various training and development
opportunities for the employees, making sure that there are other growth opportunities
for the employees, like mentoring, coaching and promotions, and ensuring that there
is effective leadership. Transformational leadership style has been established by the
findings of the report to be one of the most effective styles of leadership that the
organization can adopt in order to ensure that the employees are retained.

TABLE OF CONTENTS
1.0. Introduction.............................................................................................................3
2.0. Methodology...........................................................................................................4
3.0. Causes of high employee turnover in organizations...............................................5
3.1. The costs of high employee turnover in the organization...................................7
4.0. Why Gist Limited cannot retain its employees.......................................................9
5.0. Recommendations: Strategies, which Gist Limited can adopt to retain their
employees.......................................................................................................................9
5.1. Training and development of the employees......................................................9
5.1.1. The objectives of training and development...............................................10
5.1.2. Process of Training and Development programs that Gist Limited should
use.........................................................................................................................11
5.1.3. The types of training programs that Gist Limited should adopt.................11
5.1.4. Individual benefits of training and development programs........................12
5.1.5. Benefits, which Gist Limited will gain from the training and development
programs...............................................................................................................12
5.1.6. How training and development will ensure employee retention................13
5.2. Effective leadership...........................................................................................14
5.2.1. Transformational leadership.......................................................................15
5.2.2. How transformational leadership can lower employee turnover................15
5.3. Effective human resource management practises.............................................16
6.0. Conclusion............................................................................................................18
7.0. References.............................................................................................................20

1.0. Introduction
According to Taylor & Taylor (2013) and Srimai, Wright & Radford (2013),
employee turnover is defined as the number of staff leaving a company. It is the
opposite of the companies being in a position to retain their employees. Different
reasons can make the employees to leave their companies. For instance, when the
employees are not adequately remunerated, they are highly likely to leave their
organizations for others, which can pay them well (Stavrou-Costea, 2009). The other
notable factors, which increase the level of employee turnover, include lack of
motivation, ineffective leadership, being overworked, lack of feedback and
recognition, failure of the organizations to involve the employees in the process of
decision making and poor selection of the employees (Singh, 2012).
This report mainly explores whether Gist Limited is in a position to retain
their employees. It explores the challenges, which are faced by the company when it
comes to retaining their employees and provides some of the main strategies, which
can be put in place to ensure that the employees are retained. The report is therefore
highly significant, as it will provide recommendations to the company concerning
some of the key measures, which they can put in place in order to ensure that the
employees are retained.
2.0. Methodology
According to Creswell & Plano (2011) and Creswell (2013), methodology
refers to the manner in which collection and analysis of data takes place in a research.
It details the manner in which data, to be used during the research process is supposed
to be collected, and the manner in which the data, which is collected is analysed. The
report relied on both primary data, as well as on secondary data. Primary data can be

defined as the data, which is collected by a researcher from first-hand sources, like the
use of methods such as interviews, surveys or experiments (Greene, 2015). Primary
data can also be defined as the information, which is collected personally, for a given
purpose (Greene & Hall, 2010). The data is always collected with the given research
project in mind. There are a number of benefits, which are associated with the use of
primary data. They include the fact that the data is collected first hand after careful
operationalization of the research variables and through the use of procedures, which
are carefully selected (Bazeley & Lynn, 2012).
At the same time, primary data is regarded to be more trustworthy in
comparison to the secondary data. They are always collected in an objective manner
with careful planning and sampling. There are also proper controls in place, which
ensures collection of highly accurate data. This implies that primary data is generally
more credible in comparison to the primary data (Guest, 2013).
The other major advantage, which is associated with the primary data, is the
fact that the researchers always have greater control over the data collection process.
The researchers, who collect primary data, are always in a good position to pinpoint
the key aspects they wants to focus on during the process of data collection. At the
same time, they are also in a good position to omit the details, which are not pertinent
to the given research (Hesse-Biber, 2010).
On the other hand, secondary data can be defined as the data, which is
collected by a different person other than the actual researcher. This information may
be obtained from government websites, journals, periodicals, books, magazines and
newspapers among others. In this report, collection of primary data took place through
interviews with the human resource managers at Gist Limited. This was aimed at

getting information concerning why the organization is not in a position to retain its
employees.
Secondary data was mainly obtained from books and journals with adequate
information concerning employee turnover and employee retention. They were highly
effective in the realization of the goals and objectives of the research.
3.0. Causes of high employee turnover in organizations
A number of factors can be attributed to the high employee turnover within
some organizations. The factors can make the employees to leave their organizations
for others (Schuler & Jackson, 2008). Some of the key factors, which can be
attributed to the high employee turnover in the higher education sector, are mainly
ineffective leadership and ineffective human resource management practises. A
thorough discussion of these key factors has been provided (Siaguru, 2011).
Work-life imbalance has been cited as one of the main factors, which make the
employees to leave their organizations for others. Different studies have pointed out
that this is one of the main factors, which can contribute to the high employee
turnover (Jankulovic & Skoric, 2013). According to Jankulovic & Skoric (2013),
when the jobs that the employees are doing do not meet their expectations, they are
also in a position to leave their companies for others.
Employee misalignment has also been cited as one of the main reasons why
employees leave their organizations for others (Jankulovic & Skoric, 2013). Some
organizations just hire new employees without ensuring that they are fit for the given
jobs. When the employees are not properly fit for the jobs, they will always leave the
organizations for others (Guerrero & Barraud-Didier, 2012).
The employees can also leave their organizations when they have the feeling
that they are undervalued. Employees always want to be rewarded and recognized

when they do their jobs very well. Recognition of the employees does not have to be
monetary. One of the most effective recognition can be sincere appreciation. When
they are not recognized, they cannot be in a position to leave the organizations for
others (Eskildsen, Kristensen & Antvor, 2010).
When coaching, as well as feedback are lacking, some of the employees might
be forced to leave their organizations for others. Effective managers always strive to
ensure that the employees improve their performance. They should also consistently
give coaching, as well as feedback to all the employees. When feedback is provided,
the employees are always motivated, and this hinders them from leaving for other
organizations (de Waal & Counet, 2009).
When the employees are also not involved when decisions are being made in
various matters within the organizations, they can leave for the other organizations.
Employees dislike being micromanaged, and when they have managers who
micromanage them, chances of them leaving the organizations are very high
(Torrington, Hall & Taylor, 2015). Therefore, there is the need for the companies to
ensure that their employees are highly empowered to make decisions within their
organizations. When the employees are empowered, they will have the freedom of
making decisions as well as other kinds of suggestions. This will make them to feel
trusted besides having the pride of ownership (Donohue & Heywood, 2014).
Lack of growth opportunities can also make the employees to leave their
companies for others. When the employees have the feeling that their employers are
not interested in their growth, when they get better opportunities, they will leave for
other organizations (Carmeli & Freund, 2014).

3.1. The costs of high employee turnover in the organization
According to Newbert (2008) and Nishii, Lepak & Schneider (2008),
employee turnover cost refers to the cost of hiring a replacement employee and
training them after the replacement. The training costs are aimed at making sure that
the new employees are highly productive. They ensure that the new employees are in
the same level of productivity as the former employee who left the organization (Raub
& Streit, 2009; Sheppeck & Militello, 2010).
The costs encompass both the direct costs, such as the fees that are paid to the
recruiter to get candidates for the company as well as indirect costs like the loss to the
businesses because they lacked employees to carry out certain roles and
responsibilities (Ryan & Sagas, 2009).
One of the main costs, which is associated with high employee turnover
include the hiring costs. There are always indirect and direct costs, which are always
incurred when an employee, who has left is replaced. The hiring costs include the
costs of recruitment, which includes the costs, which are incurred in the recruitment
process, which include the fees, which are paid to the external recruiters and the costs,
which are associated with advertisements for the job positions within the
organizations (Stone, 2008). There are also various kinds of costs, which are
associated with interviewing the candidates. These include costs, which are associated
with traveling for those interviewing the potential candidates and costs, which are
associated the time that the human resource professionals spend interviewing the job
candidates (Sutiyono, 2010).
There are also post interview costs, which refer to the costs, which are
incurred to cross check the references, as well as the credentials from the candidates
who pass the screenings and pre-employment screenings for drugs. The other major

costs include employment costs, which include the costs of the employees relocating
to their new locations (Stone, 2008).
Training costs also form part of the costs, which are associated with high
employee turnover within the organizations. The costs of training include the direct
costs, as well as the indirect costs of training. After the employees have been hired,
they have to be trained in order to ensure that they are highly qualified for the given
positions. The training is always continuous up to the point at which the new
employee is up to the position of the employee who left. The training costs generally
include the time spent training the employees, costs associated with the training
material, costs associated with the training venues, as well as administrative functions,
which are associated with the process (Sheppeck & Militello, 2010).
4.0. Why Gist Limited cannot retain its employees
Based on the interviews with the human resource managers at Gist Limited
and other employees concerning the reasons why most of the employees leave the
organization for others, the data, which was obtained indicates that the key reasons
behind the departure by a number of employees is the fact that the organization does
not provide an environment in which the training needs of the employees are met. The
company does not have in place training and development opportunities for its
employees. At the same time, there are no growth opportunities for the employees.
5.0. Recommendations: Strategies, which Gist Limited can adopt to retain their
employees
There are a number of strategies, which organizations like Gist Limited can
adopt in order to ensure that their employees are retained. The main ones have been
discussed below:

5.1. Training and development of the employees
The company should make sure that there are various measures in place aimed
at ensuring that the employees receive training and development in their different
areas. Based on the findings of the report, it can be noted that there is a very high
employee turnover in the company due to the fact that there are no training and
development opportunities. When it comes to training and development, there is need
for the company to make sure that training needs analysis is done effectively as
recommended by Carmeli & Freund (2014). This is to understand the needs of
training, and then making of training design and conduct the training was found to be
necessary. Training expands the level of knowledge of employees but some of the
employers always consider it as additional expenses to the company. Also training
may delay the completion of on-going work. In spite of the potential downsides,
preparing and improvement gives both the organization all in all and the individuals
with advantages that make the cost and time a beneficial venture.
Training and development will ensure advancement of the managers and the
overall workforce of the company (Boswell & Boudreau, 2010). It is frequently used
as a medium to fill the gap between the current performance and expected future
performance. The human resource department within the organization should work
towards making sure that there are training and development programs. They should
start the process by identification of the requirements, selecting techniques, arranging
pragmas to meet the needs, and making sure that there are proper arrangements to
ensure that there is highly effective execution. This should be followed by assessment
of the results.

5.1.1. The objectives of training and development
The objectives of training and development can be grouped into three major
categories, which include social objectives, organizational objectives and the
functional objectives. Social Objectives guarantees that the organization is morally
and socially capable to the needs and difficulties of the general public. Organizational
objectives are to support the company’s prime objective of improvement of improving
employee’s performance. Functional objectives aim to keeping up the level of
department activities to the organizational needs. Individual objectives make the
workers to be in a position to accomplish their own objectives, which truly, improve
the individual commitment to the association (Bussim, 2012).
5.1.2. Process of Training and Development programs that Gist Limited should
use
The training and development process that Gist should use should consist of
several steps as follows:
5.1.3. The types of training programs that Gist Limited should adopt
The requirement of training and development is depends upon the
requirements of the job profile. So, different industries and organizations perform
different types of training programs to meet their job requirements. Mainly the type of

job training and development program is divided into two namely On-the-job training
and off-the- job training.
5.1.4. Individual benefits of training and development programs
There are a number of individual benefits, which the employees stand to gain
from the training and development opportunities. The first one is improved
performance of the employees. Training plays a major role in improving the
employees working skill and enhances organizational performance. It is positively
affecting the performance of the employees in the company. This can hinder them
from leaving their companies (Bernthall, Rogers & Smith, 2013). Training and
development opportunities play a major role in improving employee satisfaction.
Training conducted by the organization cultivates an emotion in employee’s mind that
the company is spending for their future advancement (Allen & Helms, 2012). Career
competencies are another major benefit, which is associated with training and