Employee Motivation and Employee Retention

Employee Motivation and Employee Retention

Employee Motivation and Employee Retention

Employee retention involves a simple process that encourages and uplifts individuals or teams within an organization to remain engaged with the Company in the long term. It is beneficial for both the employee and the employer. However, retaining employees depends on four major factors on which employee motivation is based:

Remuneration and Rewards
Remuneration plays the biggest role in the process of motivating staff, which in turn, leads to retention. It takes a clever hand to compose a compensation package. The best packages include:

  • Basic Salary
  • Incentives: Cash or non-cash, stock options, etc.
  • Allowances: Medical, domestic, travel, etc.
  • Bonuses: Festival Bonus, appraisals based on Company’s and individual’s performance, etc.
  • Employee Assistance Programs: Legal, psychological, etc.
  • Retirement Benefits: Provident Fund, gratuity etc.

Work Atmosphere
It is not always about retaining an employee but about managing one’s surroundings at work. It is about offering appropriate facilities and services to staff. A Company should serve as a second home, as most of the employees spend a maximum of their time at work here. The following features play a major role in making the employee feel connected to the corporation:

  • Friendly and lively culture
  • Ethical values
  • Reliability and dependence
  • Most up-to-date technologies
  • Learning environment: Provide scholarships for higher education
  • Personal and Professional Balance: Flexible hours
  • Challenges
  • Engaging employees in decision-making
  • Credit and recognition
  • Health, safety and well-being

Growth Opportunities
Growth is an integral element of an individual’s career graph. If there is no scope of growth within a Company, the employee seeks external opportunities. The essential aspects that an individual looks to grow in are:

  • Job profile: A low or high job profile underrates or overrates an individual’s ability and aptitude.
  • Personal zeal to develop: The Company must also focus on helping the employee reach his target goals. If the individual is dissatisfied with achieving his personal targets, the organization loses him.
  • Training for personal development: The Company should provide training facilities such as technical and communication improvement programs, one-on-one sessions and feedback surveys as electives, in order to motivate employees and also help enhance the employee’s individual skills.

Bonding and Timely Support
Providing a personal or professional supportive work culture is sometimes overlooked by Management. This results in demotivation due to the decrease in interest in work in a particular team or a Company as a whole. To craft a good, reliable, longlasting bond between the management and an employee, it is important to:

  • Respect the individual
  • Recruit leaders who can promote team work and enhance relationships
  • Recruit an individual only if necessary
  • Provide support at the time of need
  • Acknowledge individual targets and create growth opportunities

Therefore, it is very important to motivate employees at the workplace in order to retain them. Empowering employees, making them realize their importance and value to the organization, appreciating their efforts and appraising them for their performances will induce self-motivation and help reduce employee turnover.

Do share your thoughts on the same.

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  • In these days of agile development and self organizing teams, would the concept of individual rewards and incentives have a negative impact on team development? Should the incentives and rewards be allocated to teams rather than individuals?

  • Amanda Boonzaaier

    With the new generation Y entering the work-force, I think companies should also look at Purpose: what is the difference I can make/ what difference does the work I do make? Just having a good job with good remuneration, getting personal development opportunities, being part of a good team might not be enough anymore. I think getting employees engaged will be easier if there is also a clear and exciting purpose people can identify with, believe in and therefore strive to achieve. It is not only about “what is in it for me” anymore but also “what about our responsibilities”? The challenge is retention across the various employee generations with their different needs, aspirations, values, beliefs, diversity and demands.

  • While renumeration and rewards are important, their impact declines after a certain point. It’s critical to understand that they are NOT motivators. Study after study after study has shown this to be true (read “Drive” by Daniel H. Pink). In actuality, a leader doesn’t really motivate anyone. Rather, the leader provides the environment that allows a person’s own motivation to meet their own needs. Things like salary and work conditions, if not satisfactory, can tend to inhibit motivation. But, when improved will not cause motivation.

    As you mentioned, things like growth opportunities, and self development are more likely to help a worker realize his or her motivation. Also, an opportunity to stretch and genuine feeling of being appreciated for his or her talents will also fuel a person’s motivation.

    Yes, there are a few people for whom material things actually are a motivator. However, when real leadership is tried, that number becomes very, very small.

  • SooryaGita

    @Steve: Today’s Corporate World and living conditions have brought in more self centered individuals. No offence, but in every team or department, How many members are solely working for and with the team? There is heavy competition within a team. Every individual tries to look better than the other in order to grow within an organization.

    I can give you an example, My friend works for a Software Company and his team is of 6 members including himself. All seniors! Now he is no less than the rest. he holds 6 years of work experience and is much more enthusiastic, knowledgeable and quicker than the others in the team. Now, there was a situation where one of the members had an onsite opportunity. The subject area was purely related to my friend’s domain. But he was not given the opportunity because of internal politics within the team. There are so many simple situs like this and when they grow to become a pile, one loses it ultimately. This is where the management has to focus on the employee and make him feel a part of the company and give him what he deserves. Otherwise he is going to leave which in turn will have an impact on the employee turn over and etc.

    Hence generalizing; for all those who are discouraged by their fellow team mates it is very important for the management to identify and encourage them with mere appreciation for their respective skills and talents ‘individually as well as a team.’