"We have to get used to the thought that companies are much more dependent on their best employees than the good people from the company.” With reference to this statement made by Peter Drucker in 2002, the contribution of employees to a company’s success and their growing independence from current employer takes on greater significance in the management of human resources. Already in the 1990s, the war for talents has been declared on the basis of decreasing resources of employees who own valuable qualifications on behalf of organisational success. Employers nowadays are growingly confronted with economic circumstances influencing the quantity and quality of their workforce. Thus, demographic changes will modify the composition of employee workforces, while globalisation will enable employees to rapidly change their place of employment. In addition, organisations are likely to counteract skill shortages and increasing readiness of employees to leave an employer for a more profitable offer. With regard to these global developments, the work of HR management is to implement a specified form of management strategy in order to maintain experienced and valuable employees within the organisation, as well as to ensure continuing productivity. Similar to the common practiced customer relationship management aiming at establishing a stable customer base and associated higher profitability, employee retention management transfers experiences in retaining promising customers to human resource processes and therefore focuses on employees as an additional crucial element in corporate success. Basically, there is a growing consensus that the retention of employees is a key determinant of further strategic competitiveness and longterm success of a company. In fact, various surveys among human resource departments agree in their findings that the retention of employees will be prioritised in further human resource strategies. In order to counteract employees’ willingness to leave their employer, retention management intends to respond appropriately to employees’ needs by means of individualised incentives which are considered to improve the employees’ conformity and loyalty with the employer. Thus, the elaboration of the variety of possible instruments presented in this thesis may lead organisations in their development towards a strategic concept enhancing the organisations’ attractiveness as an employer which will enable organisations to current economic influences.
Table of Contents
- Introduction
- Purpose of the Study
- Structure
- Relevance of Employee Retention Management
- Economic Perspective
- Financial Perspective
- Implementation of Employee Retention Management
- Identification of Key Employees
- Identification of Motivation
- Instruments
- Critical Reflection of the Applicability in Organisations
- Conclusion
Objectives and Key Themes
This bachelor thesis aims to examine employee retention management and its instruments within the context of current developments. It explores the relevance of employee retention from both economic and financial perspectives, investigating the costs associated with employee turnover and the value of human capital. The thesis then delves into the implementation of employee retention strategies, focusing on identifying key employees, understanding their motivations, and selecting appropriate instruments.
- Economic and Financial Impacts of Employee Retention
- Methods for Identifying and Retaining Key Employees
- Effective Instruments for Employee Retention Management
- Motivational Factors and Their Measurement
- Applicability of Retention Strategies in Different Organizational Contexts
Chapter Summaries
Introduction: This chapter sets the stage for the thesis by introducing the topic of employee retention management (ERM) and outlining the study's purpose and structure. It establishes the context and provides a brief overview of the subsequent chapters, highlighting the key areas of investigation.
Relevance of Employee Retention Management: This chapter explores the significance of ERM from economic and financial viewpoints. The economic perspective examines factors like globalization, demographic change, employee turnover, and skilled labor shortages, illustrating how these trends impact the need for effective retention strategies. The financial perspective focuses on the value of human capital and the substantial costs associated with employee turnover, including direct, indirect, and opportunity costs. These sections build a compelling case for prioritizing ERM in contemporary organizations.
Implementation of Employee Retention Management: This chapter delves into the practical aspects of implementing ERM. It outlines methods for identifying key employees through classification techniques, such as forced rankings. A crucial section focuses on understanding employee motivation, utilizing Maslow's hierarchy of needs as a framework. The chapter then explores a range of instruments for employee retention, including financial compensation, leadership styles, communication strategies, job design, and job environment improvements. This comprehensive overview provides a practical toolkit for organizations seeking to improve employee retention.
Critical Reflection of the Applicability in Organisations: This chapter critically examines the applicability of the discussed ERM instruments in different organizational settings. It may compare the approaches suitable for small and medium-sized enterprises (SMEs) versus large corporations, potentially highlighting the challenges and considerations involved in implementing ERM in various contexts. This section provides a nuanced perspective on the practical challenges of effective ERM implementation.
Keywords
Employee Retention Management, Human Resources, Motivation, Employee Turnover, Cost of Turnover, Human Capital, Financial Compensation, Leadership, Communication, Job Design, Job Environment, Key Employees, Globalization, Demographic Change, Skilled Labor Shortage, Small and Medium-sized Enterprises (SMEs), Forced Ranking, Maslow's Hierarchy of Needs.
Frequently Asked Questions: Employee Retention Management Bachelor Thesis
What is the main topic of this bachelor thesis?
This bachelor thesis comprehensively examines employee retention management (ERM) and its practical application within organizations. It explores the economic and financial implications of employee turnover, investigates methods for identifying and retaining key employees, and analyzes various instruments for effective ERM implementation.
What are the key themes explored in the thesis?
The thesis focuses on several key themes, including the economic and financial impacts of employee retention, methods for identifying and retaining key employees, effective instruments for ERM, motivational factors and their measurement, and the applicability of retention strategies in different organizational contexts.
What aspects of employee retention management are discussed in detail?
The thesis delves into various aspects of ERM, such as identifying key employees using techniques like forced ranking, understanding employee motivation through frameworks like Maslow's hierarchy of needs, and exploring a range of retention instruments, including financial compensation, leadership styles, communication strategies, job design, and job environment improvements.
What are the economic and financial perspectives on employee retention?
The thesis analyzes ERM from both economic and financial perspectives. The economic perspective considers factors like globalization, demographic change, and skilled labor shortages, while the financial perspective focuses on the value of human capital and the substantial costs associated with employee turnover (direct, indirect, and opportunity costs).
How does the thesis address the implementation of ERM?
The thesis provides a practical guide to implementing ERM, outlining methods for identifying key employees, understanding their motivations, and selecting appropriate instruments. It also considers the challenges and considerations of implementing ERM in various organizational settings, including small and medium-sized enterprises (SMEs) and large corporations.
What are the key instruments for employee retention discussed in the thesis?
The thesis explores a wide range of instruments for employee retention, encompassing financial compensation, various leadership styles, effective communication strategies, optimized job design, and improvements to the overall job environment.
What is the structure of the bachelor thesis?
The thesis is structured into several chapters: an introduction outlining the purpose and scope, a chapter on the relevance of ERM (economic and financial perspectives), a chapter on the implementation of ERM (methods and instruments), a chapter critically reflecting on the applicability of ERM in various organizational contexts, and a concluding chapter summarizing the findings.
What are the keywords associated with this thesis?
Key words include: Employee Retention Management, Human Resources, Motivation, Employee Turnover, Cost of Turnover, Human Capital, Financial Compensation, Leadership, Communication, Job Design, Job Environment, Key Employees, Globalization, Demographic Change, Skilled Labor Shortage, Small and Medium-sized Enterprises (SMEs), Forced Ranking, Maslow's Hierarchy of Needs.
What is the overall conclusion of the thesis?
The conclusion summarizes the key findings and insights gained from the analysis of employee retention management. It reiterates the importance of a comprehensive approach to ERM, considering both economic/financial factors and the practical aspects of implementing effective retention strategies. (Specific details of the conclusion are not provided in the preview).
- Quote paper
- Isabelle Klippert (Author), 2014, Employee Retention Management. Instruments of Human Resources in the view of current developments, Munich, GRIN Verlag, https://www.grin.com/document/274122
