This report is produce to review and analyse the Human Resource Management (HRM) policies with which to ensure employee retention and development.
The report will provide an insight into how an organisation’s policies is important and necessary to achieve the objective in securing employees’ retention and how development can be implement to help employees’ growth linking it with organisational performance. More studies will be done on actual companies or organisation, journals and articles to support the report. However, there will be some limitations on the policies discussed that might not work on certain employees.
Human Resource Management (HRM) is ...view middle of the document...
These policies play an influential role in affecting the organisation as a whole (Tzafrir et al., 2004) because it will determine whether the employees will stay or leave the firm.
In order to maintain staff, HR policies implemented by firm must be consistent with what employees’ value (Vos and Meganck, 2009).
The meaning of retention and development of employees must be understood before further discussion can continue. Retention is effort by employer to keep desirable workers longer from the firm’s competitors (Johnson, 2000) and to meet business objectives (Frank et al., 2004). It is important to create the right HR portfolio but at the same time, employees’ view on retention practices needs to be taken into account. This is because HR managers’ view on retention factor may differ from employees.
Once employees is retained in organisation, developing and moulding would start for employees to acquire required attitudes, knowledge and skills to facilitate the achievement of employee career goals and organisational objectives (Stone, 2005). Organisation must be able to provide challenging, meaningful work and opportunities (Birt et al., 2004) to stimulate learning and development process which indirectly links to retention activities. When employees feel they are learning and growing, it is unlikely they will leave.
Vos and Meganck, (2009), conducted an investigation to investigate HR managers’ view on retention factor and the relationship with their intention to stay. Below are their findings illustrated in Table 1.
Table 1 shows the reason why employees stay with the company, reasons why employees leave and actual practices used to enhance employee retention according to the HR managers.
Table 1: Ranking of most frequently cited reasons for leaving, reasons for staying and retention practices reported by HR managers
Source: (Vos and Meganck, 2009)
From the results, we can conclude that what HR managers’ think is best for employees may not be necessary what employees want or desire. Therefore, it is important for HR manager to identify influential factors that may retain valued employees.
Based on the brief introduction given, there will be a further discussion focusing on three main HR policies that is compensation and benefits, empowerment of employees, training and development where each play a role in ensuring the retention and development of employees in an organisation.
3.0 Psychological Contract between Employee and Organisation
Psychological contract represents employment relationship in terms of subjective beliefs of employees and their employers (Rousseau, 1996). It is a set of unwritten expectation within both parties. When newcomer enters the organisation, expectation is set about the job, the organisation and working relationship (Thomas and Anderson, 1998). In order to manage the newcomers expectation, during job interviews an expectation should be set between the manager and the...