Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. It's an essential part of every manager's responsibilities, but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently.
The rate of change facing organizations has never been greater and organizations must absorb and manage change at a much faster rate than in the past. In order to implement a successful business strategy to face this challenge, organizations, large or small, must ensure that they have the right people capable of delivering the strategy. The market place for talented, skilled people is competitive and expensive. Taking on new staff can be disruptive to existing employees. Also, it takes time to develop 'cultural awareness', product/ process/ organization knowledge and experience for new staff members.
As organizations vary in size, aims, functions, complexity, construction, the physical nature of their product, and appeal as employers, so do the contributions of human resource management. But, in most the ultimate aim of the function is to: "ensure that at all times the business is correctly staffed by the right number of people with the skills relevant to the business needs", that is, neither overstaffed nor understaffed in total or in respect of any one discipline or work grade. The goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key word here perhaps is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an organization's employees, and the overall strategic direction of the company (Miller, 1989).
[...] In addition, the study sought to draw out a profile of a typical employee who has remained with the company or who is most likely to remain in the company. Based on the profile of the employee's presently enrolled, it was observed that 36% of the employee's in the company have an experience of 1 to 5 years with the company. Experience in Yrs No: of % Employee's The employees were segregated based on their experience in intervals of 5 years. [...]
[...] The best way for them to combat this is by making employee retention a priority. Successful businesses are built by their employees. By understanding their needs, a company can save itself a lot more than just money. Knowing why employee retention is so important is easy. Implementing the above ideas into a company's corporate culture, however, is not. It is a gradual process that should be enthusiastically encouraged by the company's leaders and led by example. Following these simple suggestions, a company will prove itself to be proactive rather than reactive to the needs of its employees. [...]
[...] Miscellaneous compensation: It may include employee assistance programs (like psychological counseling, legal assistance etc), discounts on company products, use of a company cars, etc Growth and Development: Growth and Development are the integral part of every individual's career. If an employee can not foresee his path of career development in his current organization, there are chances that he'll leave the organization as soon as he gets an opportunity. The important factors in employee growth that an employee looks for himself are: Work profile: The work profile on which the employee is working should be in sync with his capabilities. [...]
[...] Offer other seniority-based rewards such as a paid membership in the employee's professional association after one year, a paid membership to a local gym after two years Four basic factors that play an important role in increasing employee retention include salary and remuneration, providing recognition, benefits and opportunities for individual growth. Conduct employee satisfaction surveys. You won't know what's wrong . or what's right . unless you ask. To check the pulse of your workplace, conduct anonymous employee satisfaction surveys on a regular basis. [...]
[...] The cost of employee turnover can range between 1/2 to 4 times an employee's annual wages and benefits 80% of turnover can be attributed to mistakes during the hiring process(Harvard Business Review) Employee retention has as much to do with who you hire as what you do after he or she is hired Traditional methods of hiring employees only provide a 14% likelihood of a successful job hire (Michigan State University) An ineffective employee retention strategy can drive any manager crazy. [...]
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