Employee engagement through better employee communication and involvement is considered as the key strategy for employee retention by most organisations, reveals a TimesJobs study.
Employers are predicting a cash hike of 10-15%. However, they are focusing on employee development & growth as the key retention strategy, this appraisal cycle.
The TimesJobs.com study involving responses from over 1,000 HR managers across industries revealed that majority (82%) find retention a bigger challenge than scouting for new talent. To address the retention problem, 84% of employers prefer employee engagement strategies over monetary benefits.
Most (40%) employers claimed to have set in place a structure for better employee communication and involvement. About 36% vouch for providing growth opportunities to their employers via training programs. Another 8% said they have policies that facilitate job profile modifications and job rotation opportunities.
Only the remaining 16% consider improving monetary benefits as the best tool to retain workforce.
The study also showed that maximum retention (76%) happens at the lower two levels of the organisation. Employees at fresher and executive levels are more than willing to take risks and experiment at the job front. To retain these employees for longer periods employers need to engage them in the organisation.
As Vinay Deshpande, Sr. Vice President – Human Resource, Mahindra & Mahindra Financial Services Ltd. stated, “We have many non-monetary incentives for employees such as ‘Invitation to Annual Convention’ and ‘Foreign Trips’. We also reward high potentials by providing them opportunities to pursue higher education in a subject of their choice.”