What is employee retention and satisfaction?
Employee Satisfaction
Individual characteristics and behaviours differ from one another. In the same way, employee happiness varies from person to person. A study also concluded that “employee
satisfaction is the combination of affective reactions to the differential perceptions of what he or she wants to receive compared with he or she actually
receives.” (Cranny et al., 1992 cited in Sageer et al., 2012, p.32).
Sageer et al (2012) also explains that the employee satisfaction
is a measure of how happy workers are with their job and working environment. A
study also states that “satisfaction refers to the level of fulfillment of
one’s needs, wants and desire. Satisfaction depends basically upon what an
individual wants from the world, and what he gets.” (Morse, 1997 cited in Sageer
et al., 2012, p.32).
Employee Retention
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| Figure1: Should I stay? Should I go? (Source: Frazao, 2021) |
Retainment of skilled and experienced staff in an organisation is essential to enhance the organisational performance, in order to achieve the organisational objectives. Terera and Ngirande (2014) states that because of the intense competition for scarce skills, attracting and retaining great personnel has become the most difficult task in human capital management. However, as explained by Heriyati and Ramadhan (2012), a company’s ability to create an atmosphere for employees to become loyal leads to retain experienced staff in front lines.
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| Figure2: Staff retention (Source: Casas, 2018) |
The retention motivational factors consist of work factors such as workload, basic job characteristics, complexity of a task and agency factors such as work development, supervisor behaviour, clarity in policy as well as leadership behaviour (Bernotavic, 1997; Bubenick, 2004 cited in Heriyati and Ramadhan, 2012, p.194).
Link between employee satisfaction and employee retention
Mass cost cut downs in organisations during the pandemic situation, reflected on the rewarding systems and payment schemes of the employees in the recent past. There had been organisations who reduced the employee salary increments as well as who used the pandemic as an excuse to deliberately not pay the salaries of the employees.
By looking at the world's economy, it is noted that the inflation has taken over the purchasing power and the living standards of people. A study showed that “Covid-19 has negatively affected the poverty and living standards of households.” (Bukari et al, 2021, p.15). Employee turnover is therefore, becoming a burning issue in organisations with the pandemic. A study also has concluded that “turnover rates are increasing in various organisations; if employees are unhappy with their organisations, they tend to leave the organisation.” (Schuler and Jackson, 2006 cited in Terera and Ngirande, 2014, p.481).
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| Figure3: Manager Measuring Individual's performance (Source: Fanatic Studio, 2021) |
As explained by Sageer et al (2012), companies have to make sure that the employee satisfaction is high among the workers, which is a precondition for increasing productivity, responsiveness, quality and customer service. Although Sageer et al has stated about the link between the employee satisfaction and productivity, responsiveness, quality as well as customer service, it is also essential to understand the relationship between employee satisfaction and employee retention.
According to Sageer et al (2012), every company should identify ways to improve the work environment and boost employee morale and happiness, in order to improve staff performance and productivity, which then leads to higher earnings, customer satisfaction, and customer retention. A study explains that “to attract, retain and be profitable, organisations need novel reward systems that satisfy employees.” (Terera and Ngirande, 2014, p.481).
Conclusion
In-light of the details above, it is noted that there is a positive relationship between the employee satisfaction and employee retention. Therefore, organisations should take necessary actions to enhance the employee satisfaction, as it ultimately helps retain the skilled and experienced staff within the organisation, rather facing a knowledge leak. This will further help organisations to refrain from unnecessary budget allocations, to cover additional training costs and hiring costs of new staff. Therefore, the organisations will easily be able to achieve their organisational objectives, with the help of their satisfied existing experienced staff, who are willing to retain in the organisation.
References
Casas, J., (2018) Staff retention concept with employee tied
up. [ONLINE]. Available at:
https://www.istockphoto.com/vector/staff-retention-concept-with-employee-tied-up-isolated-gm887714478-246340240
[Accessed 4 December 2021].
Fanatic Studio, (2021) manager measuring individual's
performance. [ONLINE]. Available at:
https://www.gettyimages.com/detail/illustration/illustrative-image-of-manager-measuring-royalty-free-illustration/494329303?adppopup=true
[Accessed 4 December 2021].
Employee retention is a complex task for all HR managers. Employee satisfaction in a job role is the main reason for employee retention. The job satisfaction leads to increase the performance of the employees and helps to achieve the goals of the organization.
ReplyDeleteAgree with you. Thank you so much for your valuable comment.
DeleteA valuable article. Employee retention is very much important for the organization growth. For Job satisfaction of the employee’s, HR department should be work with employee's wages, job allocation, employee health & safety, better working environment & Job appraisals, promotions, etc... If employee satisfied about his/her Job & the organization, they will continue their job in that organization. Thank for sharing this.
ReplyDeleteThank you so much for your valuable comment.
DeleteTimely Topic. Employee retention is most essential to an every organization. Satisfied employees are fully engaged in their tasks and feel that the company appreciates their effort and diligence. But if they don't feel that in their work or in how things are run, this becomes a common reason as to why employees leave the organization. Agreed with your conclusion that there is positive relationship between the employee satisfaction and employee retention. Good one.
ReplyDeleteThank you so much for your valuable comment.
DeleteWorker satisfaction is a measure of their contentment and satisfaction in their roles and at the organization as a whole. Worker retention, on the other hand, refers to an organization's ability to retain its employees. An organization's retention rate often indicates the effort is put into engaging its staff.
ReplyDeleteThank you so much for your valuable comment.
DeleteOne of the main reasons why Top managers are focused on enhancing employee engagement at their organizations is retention. Disengaged employees are a primary contributor to high employee turnover, and organizations with strong engagement minimize both turnover and hiring costs. Employee engagement is vital for retaining valued talent and is a critical component of employee happiness; disengaged employees are more likely to leave their positions.
ReplyDeleteInteresting article in the current context. Employee job satisfaction and engagement factors are key ingredients of employee retention. Improving employee retention and satisfaction is not an easy task, but it is ultimately one that rewards both the company and its employees.
ReplyDeleteThank you so much for your valuable comment.
DeleteEmployee happiness is a good predictor of employee retention. Employee satisfaction improves when businesses engage in strategies that foster excellent working relationships because workers believe the organisation is utilising their abilities and valuing their service and commitment. As a result, higher levels of job satisfaction usually lead to higher levels of staff retention. It appears that in this article you have tried to present some important information regarding employee retention and employee satisfaction thank you.
ReplyDeleteIn order to keep your employees, you need to make sure they are happy with their work environment. Worker satisfaction rises as a result of employees believing the company recognizes and appreciates them for their contributions to the company's success. As a result, employees who are more satisfied with their jobs are more likely to stay on board.
ReplyDeleteThank you so much for your valuable comment.
DeleteAs in my point of view employee satisfaction is very vital for any given company because the growth of the company is in the hands of the employees so their retention and satisfaction is very important. Very important topic discussed
ReplyDeleteThank you so much for your valuable comment.
DeleteAs managers currently we are striving to retain people in the organization, you have explained in proper way to understand. Thank you.
ReplyDeleteEffective employee retention can save an organization from productivity losses. High-retention workplaces tend to employ more engaged workers who, in turn, get more done. Engaged employees are more likely to improve customer relationships, and teams that have had time to coalesce also tend to be more productive,Thank you for the article
ReplyDeleteAuthor of this article explains the relationship between employees retention and satisfaction and how employees satisfaction leads to overall performance of organisation. Then Author emphasized the importance of taking necessary steps to enhance employees satisfaction. Thank you for sharing this article
ReplyDeleteThank you so much for your valuable comment.
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