The Impact of Effective Human Resource Planning on Retention

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This report investigates the impact of human resource planning on employee retention rates within organizations, focusing specifically on the context of Ireland. The study begins with an introduction that defines key terms such as employee retention and human resource planning, followed by a comprehensive literature review exploring existing research on the relationship between HR strategies and employee retention. The literature review examines topics such as leadership programs, performance appraisals, and competitive compensation, assessing their influence on employee retention. The research problem and methodology are clearly outlined, including sampling techniques and data analysis methods. The report aims to determine the effects of effective human resource planning on employee retention rates. The study concludes with findings and recommendations, highlighting the significance of HR planning in fostering employee satisfaction, motivation, and ultimately, organizational success. The report emphasizes the importance of employee retention for organizational efficiency and competitiveness, providing valuable insights for HR professionals and business leaders.
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RUNNING HEAD: HUMAN RESOURCE 0
Employee Retention Rates: The Impact Of Effective Human Resource Planning
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HUMAN RESOURCE 1
Table of Contents
Introduction.................................................................................................................................................3
Literature Review........................................................................................................................................3
Employee Retention................................................................................................................................3
Increase coordination..........................................................................................................................3
Human resource planning........................................................................................................................4
Leadership programs...........................................................................................................................4
360 degree performance appraisal.......................................................................................................4
Competitive compensation..................................................................................................................5
Relationship between human resource planning and employee retention................................................5
Maintain human resource....................................................................................................................5
Cost effective......................................................................................................................................5
Role of human resource planning............................................................................................................6
Increase satisfaction............................................................................................................................6
Effect of human resource planning on the employee retention................................................................6
Motivate employees............................................................................................................................6
Increase organization reputation.........................................................................................................7
Findings.......................................................................................................................................................7
Research problem........................................................................................................................................7
Methodology...............................................................................................................................................8
Sampling.................................................................................................................................................8
Research instrument................................................................................................................................8
Data analysis...........................................................................................................................................9
Pilot study...............................................................................................................................................9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11
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HUMAN RESOURCE 2
Introduction
Employee retention is the approach which is used as the strategy and policy to reach the outcome
of the organization; therefore simple statistics are used for representing the employee’s retention
of the corporation (Pandita & Ray, 2018). The proposal research focuses on the research question
that is “What is the impact of human resource policies and structure developed by the
organization in Ireland on the employee's retention rates?” One of the key terms of the proposal
is employee retention which is defined as the approach which describes the abilities of the
organization to retain its existing employees. This is the reason the organization made various
efforts to retain its workforce (Khalid & Nawab, 2018). Another key term is human resource
planning in which various plans are made by managers to manage the workforce in the
organizations (Lin et al., 2017). This research question is important because it supports other
organizations to develop an efficient and successful framework for human resources to expand
their business in the international environment (Iqbal et al., 2017). This proposal will discuss the
perceptive and opinion of different authors, the proposal will also analyze the methodologies
which will be used for conducting the research.
The literature review will focus on finding whether organizations in Ireland use human resource
planning to retain employees in the organizations. The key argument will be that these strategies
influence the employees’ retention rates in Ireland. The literature review will describe the key
heading such as employee retention and human resource planning. It will also focus on
describing the association among strategies made for managing human resource and employee
retention. Furthermore, in literature review role and significance of human resource planning and
influence of this on the employee retention will be discussed. The literature review is done
particularly for organizations in Ireland.
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HUMAN RESOURCE 3
Literature Review
Employee Retention
Increase coordination
Employee retention becomes the strategy of the organization it is because this supports the
organization by increasing efficiency. Kossivi & Kalgora argues that employee retention is
important for the organization (Kossivi & Kalgora, 2016). Researchers describe that employee
retention helps in improving the recruitment strategy and manage employee turnover. Therefore,
it is concluded that employee retention becomes important for the functioning and efficiency of
the organization. Researchers describe that Aldi profits increase in the year 2017 that is $97
billion because more competent and skilled employee retention (Hassan, 2016).
Human resource planning
Leadership programs
Vetrakova et al. describe that employee retention leads in motivating the employees it is because
the organization develops various development opportunities which help the organization to
develop and grow the employees in a professional manner (Vetrakova et al., 2016). The study
argues that human resource policies retain more employees in the organization. From the
analysis, the researchers describe that organization organizes various leadership program to
provide and increase the skills of the employees. The estimation describes that Lidl supermarket
organize several leadership program to motivate the employees and to increase communication
and intellectual skills among them. This estimated that in the year 2018 employee turnover in the
organization is reduced by 3.2% and more employees retained in the organization because of
more development opportunities (Jalloh et al., 2016).
360 degree performance appraisal
The organization develops various strategies and policies through which employees get
motivated and result in increasing overall growth and development of the organization will be
achieved (Johennesse & Chou, 2017). The study argues that different plans allow and provide the
capability to the organization to operate its functions in high competition. Through this, the
researchers analyzed that employee retention strategies are the major component through which
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the organization can do various activities to gain competitive advantage. The 360 degree
performance appraisal strategy is also helping the organization to retain employees. Joyce’s
Supermarket Ballybane adopts the strategy of 360 degree performance to give the opportunity to
the employees to evaluate themselves. This results in increasing rates of employee retention in
the organization (Ahammad et al., 2016).
Competitive compensation
Kundu & Gahlawat describe employees are the major part of the organization; it is because the
overall activities and efficiency are in the hands of the employees (Kundu & Gahlawat, 2016).
The data collection was done through conducting a survey, Tesco provide competitive salary and
benefits to the employees to retain them in the organization. Therefore through estimation it is
describe that in the year 2019 employee retention is increased by 10.29%. From the study, the
conclusion revealed that the objective of the organization is to increase loyalty among the
employees and customers of the organization (Johennesse & Chou, 2017).
Relationship between human resource planning and employee retention
Maintain human resource
Human resource planning defined as the approach which describes the procedure that helps in
evaluating the current and future needs of the employees in the organization (Islam, 2016).
Therefore, this approach helps the organization to accomplish the overall objective of the
organization. The research question is developed to perform the research that is, what is the
association between the planning and management of the human resource. The results from the
research demonstrate that human resource planning is an effective method for maintaining the
human resource. It is concluded that there is a direct and positive association between making
plans regarding human resources and effective management. In Tesco various strategies ere
developed to manage the employees. This increases the productivity of the employees and
provides efficient services to the customer that is in the year 2018 revenue of the company was
$75.491 billion (Ott et al., 2018).
Cost effective
Abba describes the most of the organization does human resource planning to make overall plans
about recruiting, retaining and providing training to the employees because of achieving the
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HUMAN RESOURCE 5
overall goals and objectives of the organization (Abba, 2018). The study arguments that human
resource plans provide various advantages to the organization. Through the analysis, researchers
describe that the human resource department makes human resource plans for hiring employees,
retaining the existing employees by providing various facilities and benefits in the organization.
Therefore, it is concluded that human resource planning is efficient and cost-effective and
describes the situation of the organization so that the activities of the organization will be
performed on time (Lin et al., 2017).
Role of human resource planning
Increase satisfaction
The human resource planning provides various benefits to the organization that is human
resource allow the organization to deal with various complex situation and uncertainties (Hassan,
2016).The study arguments that human resource plans motivate the employees of the
organization. The data collection is gathering through collecting the information from the
primary method that is by taking an interview from the managers. Through the analysis, it is
found that human resource planning leads the organization to focus on future needs and
requirements of the employees so that satisfaction will be maintained in the organization.
Keelings Retail is also one of the company in which employees are more satisfied because of
better human resource practices this leads in increasing number of employees that is in the year
2018 it has 2000 employees (Kossivi & Kalgora, 2016).
Effect of human resource planning on the employee retention
Motivate employees
The focus of the study is to investigate the impact of performing workers planning on employee
retention (Ballaro & Polk, 2017). The argument of the study includes that there is the impact of
developing policies on retaining the employees in an organization. The data collection was done
through a secondary method that is reviewing the literature and to adopting the observation
method. Through the analysis, it is found that human resource planning introduces various plans
through which an organization can attract competent employees of the organization. From the
study, it is concluded that employee retention is an important aspect to attract and retain the
existing employees and to encourage them for increasing efficiency in the organization.
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HUMAN RESOURCE 6
Researchers demonstrate that in Lidl various motivational activities and programs such as
rewards and recognition provide 50% discount to the employees, which can attract a large
number of employees of the organization (Pandita & Ray, 2018).
Increase organization reputation
Ahammad et al. focus on investigating the influence of making plans about the human resource
on employee retention rates. The opinions and ideas of the employees are collected through the
interview method (Ahammad et al., 2016). The arguments of the study include that efficient
policies result in more employee retention. The estimation describes that 80% of employee
retention rates increase because of efficient human resource planning. Researchers describe that
Tesco more employee retention increase the status of the organization and allow the organization
to expand their operations in international environment (Ballaro & Polk, 2017).
Findings
Through analyzing the above articles it is demonstrated that employee retention is considered the
overall strength and competencies of the organization for retaining the existing employees in the
organization (Al Mamun & Hasan, 2017). Therefore, the organization does human resource
planning to manage productivity and to maintain the current and actual requirements of
employees in the organization (Jalloh et al., 2016). The above studies also describe that there are
several organization in Ireland such as Tesco, Lidl which make plans about human resource to
retain talent employees by motivating and satisfying the employees through arranging various
activities and programs in the organization (Ahammad et al., 2016). The studies also demonstrate
that employee retention is linked with the profitability and productivity of the organization.
Research problem
The various authors conducted a study to understand the role of employee retention in the
organization and to investigate the influence of making plans about the human resource in the
overall outcomes of the organization. Researchers describe that these are the most important
aspect to maintain sustainability in the organization (Johennesse & Chou, 2017). It is because
employee retention also plays an important role in raising effectiveness in the overall activities of
the organization (Pandita & Ray, 2018). So, studies also describe the influence of developing
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plans for human resources on employee motivation and development. However, not much of the
study is conducted to understand "Employee retention rates: The impact of effective human
resource planning”. The present study focuses on finding the impact and effect of human
resource planning on retaining the employees. The objectives of the research are:-
To investigate “the employee retention rates in Ireland”
To analyze “the human resource plans made in the organization”
To understand the “effect of efficient human resource planning on employee retention
rates”
Methodology
It is the approach that helps the researchers to use various instruments and adopt various
strategies so that overall research will be conducted in an effective manner (Ott et al., 2018).
Sampling
It is an approach in which research describes the target audience and technique which is used by
the researchers to select the respondents of the study (Hassan, 2016). The research proposal
describes that in the present study the selection will be made of the organization in Ireland. It is
selected because not much of the study is investigated to understand the influence of workforce
planning in employee retention rate in Ireland. This will give opinions regarding the employee
retention rates of the organization and the human resources strategies they adopt in increasing
satisfaction in the organization. For conducting the study 357 employees of Ireland organizations
will be selected. The proposal will also describe that the random sampling technique will be
chosen so that the participated respondent will be selected randomly by the human resource
department of the corporation in Ireland. It is because through this more of the respondents will
involve and participated in the study. From them selected respondents I will ask the questions
about the strategies being used for managing employees and percentage of improvement
organizations achieved from these strategies. Yes I have that no existing questionnaire scale I
will adopt and I have also searched about psycTESTS database for taking the example.
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HUMAN RESOURCE 8
Research instrument
It is a method that demonstrates the strategy, technique, data collection tool, philosophy, and
design that will be used in conducting the study (Islam, 2016). This is also the tool that helps the
researchers in evaluating and analyzing the information. The research proposal describes that I
will adopt “descriptive and exploratory research design” because the study is conducted and
based on the primary study and includes experimentation because of analyzing the data through a
quantitative approach. For selecting and choosing the right method as well as technique for
analyzing the information "pragmatism philosophy" can use it is due to the reason that it can also
allow maintaining accuracy and efficiency of the data collected.
The proposal also demonstrates that the "deductive research approach" will be used this can
provide the capability and ability to focus on the related aspects of employee retention. Through
this, I can collect information regarding the rates of employee retention in Ireland and the
strategies as well as policies which organization are using in human resource management. The
data collection will be done by adopting primary research that is by taking the survey from the
respondents by using the questionnaire method. It is because this helps me to make questions
regarding the effects of human resource plans on employee retention rates. This also helps in
providing accurate findings of the subject matter and also supports me in involving all the
respondents in the study.
Data analysis
It is the approach that can help the researchers to analyze and evaluate the data in an effective
manner (Johennesse & Chou, 2017). In this aspect researcher selects appropriate technique so
that accuracy will be maintained, this step is done after the data collection method. The research
proposal describes that the testing method is used for finding the influence of workforce planning
on employee retention rates. It is because testing is done by comparing the different questions of
the survey so that the association between the strategies adopted for satisfying employees and the
degree of employee retention will be revealed.
Pilot study
In the research proposal, it is described that I will conduct the pilot study by selecting at least 10
participants from the human resource department. In this research problem of the study will be
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HUMAN RESOURCE 9
described and survey method will be used to collect the information and correlation method is
used to test the relationship between the plans made by the organization to satisfy employees on
the effectiveness and retention of the employees. Therefore, for conducting the study some
resources are required such as printing paper, etc. It can help me in minimizing and reducing the
mistakes involved in accomplishing the objective of the research.
Conclusion
From the above, it is concluded that there is a positive impact of human resource policies and
structure developed by the organization in Ireland on the employee retention rate. Human
resource planning helps the organization to retain a large number of competent employees in the
organization. There is direct association between the human resource planning as well as
employee retention rate and human resource planning play a key role in retaining the employees
in organizations. The data gathering will be done by taking survey from the respondents and
study is concluded in Ireland. The research proposal also demonstrates that further attaining the
objective of the study testing method will be done so that the evaluation of the information is
done efficiently.
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References
Abba, M.T., 2018. Effects of Training and Development on Employee Retention. Operational
Research, 4(1).
Ahammad, M.F., Tarba, S.Y., Liu, Y. & Glaister, K.W., 2016. Knowledge transfer and cross-
border acquisition performance: The impact of cultural distance and employee retention.
International business review, 25(1), pp.66-75.
Al Mamun, C.A. & Hasan, M.N., 2017. Factors affecting employee turnover and sound retention
strategies in business organization: A conceptual view. Problems and Perspectives in
Management, 15(1), pp.63-71.
Ballaro, J.M. & Polk, L., 2017. Developing an organization for future growth using succession
planning. Organization Development Journal, 35(4), pp.41-59.
Hassan, S., 2016. Impact of HRM practices on employee’s performance. International Journal of
Academic Research in Accounting, Finance and Management Sciences , 6(1), pp.15-22.
Herd, A. & Alagaraja, M., 2016. Strategic Human Resource Development Alignment:
Conceptualization from the Employee's Perspective. In Project Management: Concepts,
Methodologies, Tools, and Applications, 5(2), pp.1460-77.
Iqbal, S., Guohao, L. & Akhtar, S., 2017. Effects of job organizational culture, benefits, salary on
job satisfaction ultimately affecting employee retention. Review of Public Administration and
Management, 5(3).
Islam, I.N., 2016. Human resource management practices: architects’ perception and job
satisfaction. Human Resource Management , 4(1), p.61.
Jalloh, A.A.A., Habib, M.A. & Turay, B., 2016. the Effects of Human Resource Planning in the
Implementation of Operational Activites in Large Scale Enterprises. International Journal of
Information, Business and Management , 8(1), p.252.
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HUMAN RESOURCE 11
Johennesse, L.-A.C. & Chou, T.-K., 2017. Employee Perceptions of Talent Management
Effectiveness on Retention. Global Business & Management Research, 9(3).
Khalid, K. & Nawab, S., 2018. Employee participation and employee retention in view of
compensation. SAGE Open, 8(4).
Kossivi, B.M.X. & Kalgora, B., 2016. Study on determining factors of employee retention. Open
Journal of Social Sciences, 4(5), p.261.
Kundu, S.C. & Gahlawat, N., 2016. Effects of employee retention practices on perceived firm
and innovation performance. International Journal of Innovation and Learning , 19(1), pp.25-43.
Lin, C., Wang, C.Y.-P., Wang, C.-Y. & Jaw, B.-S., 2017. The role of human capital management
in organizational competitiveness. Social Behavior and Personality: an international journal ,
45(1), pp.81-92.
Nasir, S.Z. & Mahmood, N., 2018. A Study of Effect of Employee Retention on Organizational
Competence. International Journal of Academic Research in Business and Social Sciences, 8(4),
pp.408-15.
Ott, D.L., Tolentino, J.L. & Michailova, S., 2018. Effective talent retention approaches. Human
Resource Management International Digest , 26(7), pp.16-19.
Pandita, D. & Ray, S., 2018. alent management and employee engagement–a meta-analysis of
their impact on talent retention. Industrial and Commercial Training , 50(4), pp.185-99.
Papa, A. et al., 2018. Improving innovation performance through knowledge acquisition: the
moderating role of employee retention and human resource management practices. Journal of
Knowledge Management, 5(1).
Rasdi, R.M., Kusnin, N. & Chen, Y.S., 2018. Predictors and Intervening Variables of Talent
Retention. International Journal of Academic Research in Business and Social science, 8(12).
Vetrakova, M., Durian, J., Seková, M. & Kaščáková, A., 2016. Employee retention and
development. BioResources , 11(4), pp.9231-43.
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