HRM Case Study

Imagine you’re the HR director in a company that is having
difficulty retaining staff despite having a successful brand profile

and high sales. You consider raising pay to improve retention. Can
this measure improve retention rates by itself? What other measures
can you try?
Answer:
Employee retention refers to the ability of an organization to retain its employees.
Employee retention can be represented by a simple statistic. However, many
consider employee retention as relating to the efforts by which employers attempt
to retain the employees in their workforce. So, it is quite obvious that pay rise
alone cannot be a solution to bad employee retention rates.
Importance of retention: Retention of a positive and motivated employee is very

important for the organization's success. High employee turnover increases the
expenses and also has a negative impact on the organization’s morale.
Implementation of an employee retention program is an effective way of making
sure that the pivotal workers remain employed while balancing and maintaining
job performance and productivity. Why it’s important to retain employees:
 Recruitment Enhancement
 Employee Turnover Management
 Performance and Productivity Maintenance
 Cost Effective
 Increases Morale
So, we understand why it’s so important to retain employees.
Now, pay rise is a good way to retain employees for a short period of time. But
giving more money cannot be a sustainable solution. It will not help the company
keep its employees for the long run. Money certainly is a vital HR tool, and if
people feel they are being paid inadequately, they may be more likely to leave. But
if they are paid close to the competitive level they expect, other parts of the job
become more important.
We know that, raising pay is not the only way to retain employees. And raising the
pay might not solve the problem of employees quitting. The next step is to know
what we can do to retain the employees except for raising the pay.
The company has to identify the causes behind employees leaving the company
despite having good sales and a good brand profile to sort out a problem like bad
employee retention rate. They have to eliminate the source of these issues by
finding the causes and only then can the company ensure less employee turnover
because employee turnover hampers the company's image and also gives the
competitors a competitive edge by losing their good employees to them and also by
risking losing valuable information to the competitors from the companies.
Below are some of the factors that make a major contribution to maintaining the
workers of an organization:
1. Responsibility: Show your employees you trust them by giving them
responsibilities that allow them to grow. Encourage them to gain new skills.
Provide ample continuing education opportunities. Hire from within
wherever possible, and give generous promotions at appropriate times. Here
are the things that management can look to work on in order to make its
employees feel dedicated to their workplace and their work.
2. Respect. Employees want to know they are respected and appreciated. As

the saying goes, people may readily forget the things that you said, but they
will always remember the way you made them feel. Many workplace
legends are built around the horrific things weary and stressed-out managers
said or did. But if managers make it a priority to show outward respect for
employees on a regular basis, it will lead to a strong and enduring workplace
culture as well as positive experiences and memories that they will never
forget.
3. Work schedule flexibility: As the approach to work continues to change,

the nature of work itself will evolve as well. We don’t believe work
flexibility should be mandatory for every company, but it must be a
discussion employer are willing to have. New parents or people dealing with
family issues appreciate the flexibility to work remotely for parts of their
week. And a position that offers such flexibility will play heavily into
retaining them.
4. Work-life balance: As mentioned earlier, offering work flexibility is a

great place to start in developing your employee retention strategy. Of
course, one should not blindly start letting employees arrive at 2pm and
leave at 5pm. Figure out what really matters to your employees first.
Childcare, additional vacation days, subsidized gym memberships, or public
transit passes are a few retention factors that may compel employees to stay
put.
5. Revenue-sharing. Tie a part of your employees’ wages to the company’s

performance. This will align their interests with the company’s revenue and
profit goals and will serve as an inherent incentive to stay with the company
as it grows. By making the fixed cost of payroll inherently more variable
under differing business conditions, you can make your company more
resilient and agile, while also treating your employees exceptionally well.
6. Health and wellness benefits: Offering a competitive health benefits

package, including health and life insurance along with a retirement plan is a
retention strategy worth investing in. When you support health and wellness
throughout your company, it alleviates stress and allows employees to focus
on doing their best work.
7. Relaxation Time. Be generous with time off. Despite the hard economy,
provide sufficient time for sick days, family vacations, new babies, etc.
Pacing workflow can be highly beneficial to enduring employee
relationships. You should expect and even demand high-quality
performance, but it is unreasonable to expect a continual level of pressure at
100 percent. Allow employees the chance to catch their breath from one
assignment to the next with the help of team-building activities or mini
break periods over the course of the day
8. Top performer recognition and rewards

a. Keep them entertained. Whether that be through creative projects or
exciting social events. Assigning monotonous work lacking creative
aspects is the best way to have a top performer looking for an exit.
b. Give them visibility. When goals are met, give those responsible the
spotlight. Praise them appropriately throughout the company and
ensure that management takes note.
c. Provide them with mentors. Every top performer lists personal
development as a high priority. It’s what makes them successful.
Connect them with mentors to help them achieve their goals and
they’ll surely thank you for it.
d. Make them responsible—and then reward them. When they’ve proven
themselves time and time again, give top performers more
responsibility. More responsibility is a signal of trust. And developing
a relationship of trust will only strengthen their investment in your
business.
9. . Compensation: It goes without saying that having competitive, market-

level wages is the first step. The next step is getting to know your
employees, their motivations, and their goals. It is the idea route any
employer can take. In short, make sure that you offer a reasonable salary and
balance it out with a stimulating and flexible work environment.
10.Onboarding and training: Considerable research show that presenting

applicants with a realistic job preview during the recruitment process has a
positive effect on retention of those new hires.” The key word here is
realistic. New hires tend to turnover faster because their expectations don’t
align with reality.
These are some of the ways I feel that the mentioned company could reduce its
employee turnover in the longer run rather than a short-term solution such as pay
rise.
Now we’ll look into why employees quit a company even though it has high sales
and good brand name.
1. Lack of trust and autonomy

Keeping good employees begins and ends with trust. Leaders who don’t trust
their employees often micromanage them, constantly questioning their
decisions and requiring them to seek approval on everything they do. High
performing employees don’t typically need this level of oversight. Instead, they
thrive in environments where there is a high level of trust and autonomy.
2. Not being appreciated or recognized
This lack of appreciation can come in many forms including being underpaid,
not receiving positive feedback for a job well done, broken promises, especially
those around end-of-year bonuses, valid complaints that are shrugged off and
reasonable change suggestions that go ignored. When leadership makes these
mistakes, the environment in an otherwise healthy company can start to feel
toxic and encourage a mass exodus of high-quality employees that are difficult
to replace.
3. Lack of respect
Respect could mean how they’re treated by managers and coworkers, or the
types of assignments and projects they receive to work on. When people say
they left a job because they weren’t paid enough, it normally means the
company didn’t respect their work and abilities enough to compensate them
appropriately. Again, it’s all about respect. If an employee’s abilities aren’t
respected enough to receive appropriate compensation or be given projects that
challenge and utilize their abilities and skills, they will leave. If they are
mistreated by others within the company, it’s because of a lack of respect
4. Little to no opportunity for growth and development, no advancement
opportunities
Good employees always want to continue moving up, forward, earning more,
learning more, etc. If they aren’t offered continuous opportunity to grow their
skills, grow personally and learn new things that interest them, grow their
salary, or earn enough in compensation and benefits to make them feel
comfortable, then they will look elsewhere for a career and company that does
offer these things
5. Communication gap
A good employee leaving an organization is also a failure of communication.
An astute manager should be able to read the employee and get an early
warning that something is not right. Employees who are not happy will bring
issues to the attention of their manager, but if there is no interest or follow-
through after a while they will shut down. This is the time when they start to
seek new opportunities in order to escape an untenable situation.
6. feeling over stressed or overworked

It is easy to unintentionally overwork good employees because obviously, they
are good at what they do. Overworking any employee can be counterproductive
because it can lead to inefficient work. If you do want to increase a good
employee’s workload, think about offering promotions or raises as well.
Another reason good employees quit is not rewarding the good work they do. If
you have a good employee make sure they know they are appreciated.
7. Lack of support
Good employees typically want to operate in a high-performing environment.
When they feel coworkers are dragging them down, or that management is not
supporting them or helping pull them up through the organization there is a
feeling of stagnation and possibly frustration. The old adage that people don’t
quit a company, they quit their manager holder hold here – either scenario
would represent a situation where managers did not get engaged and address
situations or help the employee develop in some way.
8. Work life balance
People want more time with their families and to avoid burn out. Startups are
notoriously bad about expecting employees to work non-stop and through the
weekends without vacations. It is unreasonable to expect employees to keep up
that type of pace in the long run.
So, we can say that, payment isn’t the only factor to retain employees. There are
other strategies we should follow. Getting a handle on its employee retention
factors no easy task, but doing so pays dividends far into the future.

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Imagine you’re the HR director in a company that is having

difficulty retaining staff despite having a successful brand profile

Importance of retention: Retention of a positive and motivated employee is very

2. Respect. Employees want to know they are respected and appreciated. As

3. Work schedule flexibility: As the approach to work continues to change,

4. Work-life balance: As mentioned earlier, offering work flexibility is a

5. Revenue-sharing. Tie a part of your employees’ wages to the company’s

6. Health and wellness benefits: Offering a competitive health benefits

8. Top performer recognition and rewards

9. . Compensation: It goes without saying that having competitive, market-

10.Onboarding and training: Considerable research show that presenting

1. Lack of trust and autonomy

6. feeling over stressed or overworked

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