"We have to get used to the thought that companies are much more dependent on their best employees than the good people from the company.” With reference to this statement made by Peter Drucker in 2002, the contribution of employees to a company’s success and their growing independence from current employer takes on greater significance in the management of human resources. Already in the 1990s, the war for talents has been declared on the basis of decreasing resources of employees who own valuable qualifications on behalf of organisational success. Employers nowadays are growingly confronted with economic circumstances influencing the quantity and quality of their workforce. Thus, demographic changes will modify the composition of employee workforces, while globalisation will enable employees to rapidly change their place of employment. In addition, organisations are likely to counteract skill shortages and increasing readiness of employees to leave an employer for a more profitable offer. With regard to these global developments, the work of HR management is to implement a specified form of management strategy in order to maintain experienced and valuable employees within the organisation, as well as to ensure continuing productivity. Similar to the common practiced customer relationship management aiming at establishing a stable customer base and associated higher profitability, employee retention management transfers experiences in retaining promising customers to human resource processes and therefore focuses on employees as an additional crucial element in corporate success. Basically, there is a growing consensus that the retention of employees is a key determinant of further strategic competitiveness and longterm success of a company. In fact, various surveys among human resource departments agree in their findings that the retention of employees will be prioritised in further human resource strategies. In order to counteract employees’ willingness to leave their employer, retention management intends to respond appropriately to employees’ needs by means of individualised incentives which are considered to improve the employees’ conformity and loyalty with the employer. Thus, the elaboration of the variety of possible instruments presented in this thesis may lead organisations in their development towards a strategic concept enhancing the organisations’ attractiveness as an employer which will enable organisations to current economic influences.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Purpose of the Study
- Structure
- Definition
- Relevance of Employee Retention Management
- Economic Perspective
- Globalisation
- Demographic Change
- Employee Turnover
- Shortage of Skilled Labour
- Financial Perspective
- Value of Human Capital
- Costs of Turnover
- Implementation of Employee Retention Management
- Identification of Key Employees
- Classification of Workforce
- Process of Classification by the Example of Forced Rankings
- Identification of Motivation
- Motivation as Initial Point
- Maslow's Hierarchy of Needs
- Measurement of Motivation
- Instruments
- Selection of Instruments
- Financial Compensation
- Leadership
- Communication
- Job Design
- Job Environment
- Summary of Employee Retention Instruments
- Critical Reflection of the Applicability in Organisations
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper explores the concept of employee retention management, analyzing its significance and practical implementation in organizations. The study aims to understand the instruments of Human Resources and how they contribute to retaining valuable employees in a changing business landscape. * **Economic and Financial Implications of Employee Retention:** This theme examines the economic and financial costs associated with employee turnover, highlighting the value of human capital and the need for effective retention strategies. * **Motivation and Engagement:** The study delves into employee motivation, exploring different theories of motivation, such as Maslow's Hierarchy of Needs, and examining how to measure and foster employee engagement. * **Instruments of Employee Retention:** The research identifies and analyzes various instruments commonly used in employee retention management, focusing on aspects like financial compensation, leadership styles, effective communication, and job design. * **Applicability and Challenges:** The paper critically reflects on the applicability of these retention instruments in diverse organizational contexts, considering the challenges and limitations in implementing these strategies.Zusammenfassung der Kapitel (Chapter Summaries)
The introduction provides a background for the study, outlining its purpose and structure. It establishes the significance of employee retention management in today's competitive business environment. The definition section explores various conceptual frameworks and definitions of employee retention management, providing a theoretical foundation for the study. The chapter on the relevance of employee retention management delves into the economic and financial perspectives. It examines factors like globalization, demographic change, employee turnover, and skilled labor shortages, highlighting the urgent need for effective retention strategies. The implementation section examines the practical aspects of employee retention management. It discusses techniques for identifying key employees, analyzing motivation factors, and selecting and implementing appropriate retention instruments. This section explores different motivational theories, including Maslow's Hierarchy of Needs, and examines the practical implications of using instruments such as financial compensation, leadership, communication, job design, and job environment.Schlüsselwörter (Keywords)
Employee retention management, human resource management, employee turnover, motivation, financial compensation, leadership, communication, job design, job environment, organizational performance, strategic planning, workforce planning, human capital, talent acquisition, talent development, globalization, demographic change.- Quote paper
- Isabelle Klippert (Author), 2014, Employee Retention Management. Instruments of Human Resources in the view of current developments, Munich, GRIN Verlag, https://www.grin.com/document/274122
