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Development Planning and Administration MPA – 403 Lecture 15 FACILITATOR Prof. Dr. Mohammad Majid Mahmood Bagram

Reflections

Human Resource Planning & Human Resource Retention

OUR ASSET WALK OUT OF THE DOOR EACH EVENING. WE HAVE TO MAKE SURE THAT THEY COME BACK THE NEXT MORNING 5

HR Critical Findings One Out of Every Three People Plan on Leaving in the Next Two Years Hay Group, USA One Out of Every Three People Plan on Leaving in the Next Two Years Hay Group, USA 6

Critical Finding 7

Employee Turnover In human resources context, employee turnover is the rate at which an employer gains and loses employees. Simple ways to describe it are "how long employees tend to stay" or "the rate of traffic through the revolving door". If an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. High turnover may be harmful to a company's productivity if skilled workers are often leaving.

Defining HR Retention  The extent to which an employee is committed to his work and his organization, and  the extent to which this commitment impacts his performance and intent to stay with the organization.” 9

Defining HR Retention HR Retention is the total of the behaviour employees espouse in the organisation which primarily should be characterised by: Belief in the organisation Drive to work and make things better Respect and support for others Desire to learn new skills 10

High-Turnover to High Retention “Here Today, Here Tomorrow”  Transforming your workforce from High-Turnover to High Retention.  To do this we need first to look at the main reasons for; Why Do People Stay? 11

Retention is Commitment Based Rational Commitment: Employees believe they will personally and professionally benefit from the organization. It makes sense for them to stay with the organization. 12

Rational Commitment Driven By: Remuneration Incentives Career growth opportunities Health benefits Work environment Learning and development opportunities Work-life balance 13

Retention is Commitment Based Emotional Commitment: Believing in, valuing, or enjoying their day-to-day work, teams, managers or organizations. Because they can make a link between their role and organizational objectives and value system, and they enjoy or find fulfillment in the work 14

Emotional Commitment Driven by: Enjoyment of one’s job Role clarity Understanding the link between one’s job and organisational strategy Belief in organisational values Respect manager, team and organisation Emotional Commitment Drives Discretionary Effort - Performance 15

Role Based Levels of Retention There are five work related roles that an employee can assume and these are:  Job Holder Role: employees come to work and do the job that is listed in their job description.  Team member role: employees go “above and beyond” to help members of their team work toward common goals.  Entrepreneur role: employees come up with new ideas and processes and try to get those ideas implemented.  Career role: employees do things to enhance their career in the organisation; they learn, they adapt new skills, and more.  Organisation member role: employees do things that promote and help the company even if it’s not part of their jobs or their team’s duties. 16

Organizations With High Levels of Employee Retention 38% Higher Customer Satisfaction Scores 22% Higher Productivity 27% Higher Profits Employee Engagement Drives Business Results 17

Hire the Right People How Do You Know What the RIGHT Person Looks Like? 18

Why Good People Quit? 19

Why Good People Quit Poor match between the person and the job Poor fit with the organizational climate and culture Poor alignment between pay and performance Poor connections between the individual, their coworkers, and the supervisor Poor opportunities for growth and advancement 20

Typical Hiring Practices Failure to detect motivational fit with job Applicants "exaggerate" to get a job Most hiring decisions made by intuition during the first few minutes of the interview Two out of three hires prove to be a bad fit within the first year Most interviewers not properly trained Excellent employees placed in the wrong jobs grow frustrated when unable to utilize their strengths 21

Key Finding 22 Money may attract people to the front door but something else is needed to keep them from going out the back.

Employee Retention Strategy Provide a clear sense of Direction and Purpose. Reward and Recognition Programs. Become a Better Leader by Showing me you care. 23

Keep the Doorways and Pathways of Communication Open. Create a Charged Work Environment that Energizes and Engages the Workforce. 24 Employee Retention Strategy

Career Opportunities and Development Plans. Develop Your Valuable Staff “Help People Move Up, or they will Move Out” 25 Employee Retention Strategy

conclusion For efficient and effective Human Resource Planning & Retention, we need to build a sense of strong employee ownership 26

Thank you for your kind attention! Thank you for your kind attention! FACILITATOR Prof. Dr. Mohammad Majid Mahmood Bagram