Relationship between Employee Engagement & retention


Employee retention is a process in which organizations create an environment which encourages employees to stay for longer period of time (Singh & Dixit, 2011). Employees’ retention is considered as vital source of achieving competitive edge in the marketplace (Walker, 2001). For example, Huawei has leading IT/Telecom industry by 5G technology with competitive advantage. In this current context most of the organizations are facing the problem of employees’ retention. Employing competent staff for the job is important for an organization but retaining them in their jobs is more essential (Ghansah, 2011), Specially replacing a new employee in Huawei, increases huge operational costs and time for start from the beginning and adapt for Huawei culture and gaining more know-how of technological products and it may leads to results in loss of profits.( Kwenin et al. 2013) investigated the impact of HRM policies, job satisfaction and rewards on employees’ retention. therefore, Huawei HRM policies are more focused on employees and the policies are bound to protect and satisfy employees to avoid employee turnover.

Satisfying with emotional contract will have high chances of them remaining with the organization (Bedarkar and Pandita, 2014). The reason for low turnover in Huawei is, how the leaders and line managers managing the subordinates to full fill the emotional contacts. Since been a multinational and multi-cultural environment Huawei leadership has cautiously engaged with employees as well as managers to train for improving emotional quotient. Employee engagement necessities the retention of staff as employees will be motivated to remain in the organization, due to high commitment and loyalty (Saks and Gruman, 2014; Jordan, 2011; Bedarkar and Pandita, 2014)

Furthermore, engagement with employees through effective Internal communication can share organizational ideas to all employees, obtaining their cooperation in achieving organizational goals. As a result, internal communication is critical for maintaining employee engagement (Bindle and Parker, 2010;Papalexandris and Galanaki, 2009; Bakker et al, 2011, as cited in Welch, 2011). As well as external communication enhance brand image of the organization and it can lead to enhance employees moral and self-esteem.

References

 Ghansah, E. (2011). The Role of Employee Retention on Job Performance, A Case Study of Accra Brewery Company Limited, Accra.

Kwenin, D.O., Muathe, S. & Nzulwa, R. (2013). The Influence of Employee Rewards, Human Resource Policies and Job Satisfaction on the Retention of Employees in Vodafone Ghana Limited. European Journal of Business and Management, Vol 5(12), pp.1-8.

Singh, S. and Dixit, P.K. (2011). Employee retention: The art of keeping the people who keep you in business. International Journal of Business and Management Research, (1), pp.441–448.

Walker, J.W. (2001), “Zero defections?”, Human Resource Planning, 24(1), pp.6–8.

Zaffane, R.M (1994). Understanding employee turnover. Int. J. Manpower. 15(9): 22-33.

Zareen, M., Razzaq, K. and Ramzan, M. (2013). Impact of Employee Retention on Performance: the Moderating Role of Employee Psychological Perception Towards Retention Plan. Interdisciplinary Journal of Contemporary Research in Business, 4(10), pp.822–833.

Comments

  1. chandrasekaranpradharshane00187015 May 2022 at 10:09

    I agree with you. according (Vigoda, 2000),Employee engagement and retention is a promising area in management as well as psychology. The purpose of this paper is to examine the effects of employee engagement (EE) on their retention (ER). We proposed a theoretical framework model explaining how employee engagement affects their retention. The original model linked engagement with control at work (CAW) and general well-being (GWB) through psychological capital (PsyCap).

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    Replies
    1. Suresh Wijewardene16 May 2022 at 02:43

      Indeed , An astounding 90 percent of the workforce thinks, that a policy on employee engagement, would help to improve their general well-being (Bahreini, 2015). Engaged workers are more dynamic, enthusiastic and captivated than non-engaged employees.

      Delete
  2. Mohamed Shamran16 May 2022 at 07:35

    It was claimed by Reed (2001) that every worker is five minutes away from handing in his or her notice, and 150 working hours away from walking out of the door to a better offer. Action is required to retain talented people, but there are limits to what any organisation can do. It is also necessary to encourage higher levels of contribution from existing talent and to value them accordingly (Armstrong & Taylor, 2014).

    ReplyDelete
  3. Samantha Samarasinghe17 May 2022 at 18:45

    Hi Suresh Your article is short and sweet. However, I would like to further comment on it. According to a study done by Wittmer, (1991) Regardless of managers' values and compensation preferences, there are major discrepancies between the public and private sectors. Other organizational motivation elements (promotion, prestige, co-worker friendship, and possibilities for the public sector) are not vastly different between sectors, however corporate sector employees are more likely to be driven by financial rewards than public sector managers Wittmer, (1991).

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