Essay Example on Positive Effects of Employee Retention: Morale, Productivity, Cost-Effectiveness

The positive effects of employee retention, are as follows; increased morale since, improved overall productivity, leads to cost-effectiveness, reduce turnover hassle. While positive results can result in turn over such as workers, of low-skill, sets are fire and a better or well-equipped worker are hired. New workers offer a fresh perspective and the removal of negative influences. In industries, high retention and low employee turnover lead to a high production rate and economic growth. For example, a company dealing in vehicle assembly, if there are low employee turnover, especially of skilled and experienced workers, the company may increase revenue and profits.

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As for organization, the retention of employees and low turnover may increase the overall morale of the workforce. When workers witness their coworkers leaving or resigning, it creates a poor working environment. In addition, it boosts confidence when veteran workers in an organization are retain and shows that they are valued. These positive effects improve management skills.

However, adverse effects of employee retention are as follows loss of company knowledge, interruption in the work area, and regaining efficiency. While negatives effects of turnover affect the overall revenue, low workplace morale, deteriorating products, and services, finally reduction in market returns on investment.

Management challenges arise from the harmful effects caused by both employee retention and turnover. These challenges include the loss of skilled workers, the decline in revenue, deteriorating products, and services. Loss of skilled workers can attribute to poor management of employee retention and turnover. It occurs when the manager fails to identify and understand the needs of the workers under him. For example, a woman in an organization might be pregnant and request she request maternity leave, but the operations manager does not approve her request. The woman decides to quit or resign due to unfavorable working conditions

While in industries, for example, the loss of skilled workers attributed to changes in the global economy or no room for advancement. For instance, workers may depends on the global sales of golf products and can affects their salary. The rise in gold value increases their wages, and when it deeps their receive less. The fluctuation in income can lead to worker resigning and opting to look for better-paying jobs.

Secondly, the decline in revenue, this in the organization attributed to lack of policy, guidelines that ensure worker who turns in resignation letter provide appropriate reasons for their resignation, and they should allow the company more adequate time to look for their replacement (Glazer, R.2019). The hassle human resource manager undergoes to ensure that the vacated position is fill and activities of hiring managers carry out to interview and publish the advertisement, waste time and organization resources.

In industries, this are seen when the rate of turnover is larger or higher than the number of retained employees. Economic constraints that lead companies to let go of workers or continuous financial constraints, the company is forces to fire more employees. It leads to losses in investments and leads to an overall loss of revenue for the company. For example, due to the ongoing global pandemic of COVID19, some industries will lose a lot of money since most companies and workers are confine to their houses.

Lastly, it leads to deteriorating products and services. Can be attributed to the low employee to customer ratio. For example, a hospital has to provide a staffing plan that ensure the ratio of nurses to patients is high or maintained at a certain level(Shimp,K.M.2017). Identifying and maintaining the number and mix of nursing staff to patients is critical to the delivery of safe and quality care.

References

Employee retention a bigger challenge in a growing economy. (2016). Physician Practice Perspectives, 35(6), 8-10.

Glazer, R. (2019). The "Two Weeks'' Notice" Approach to Changing Jobs Is Bad for Companies and Employees." Harvard Business Review Digital Articles, 2-8.

Shimp, K. M. (2017). Systematic Review of Turnover/Retention and Staff Perception of Staffing and Resource Adequacy Related to Staffing. Nursing Economic$, 35(5), 239-266