Staffing System and Retention
Management
Staffing Organizations Model
Organization
Mission
Goals and Objectives
Organization Strategy
HR and Staffing Strategy
Staffing Policies and Programs
Support Activities
Core Staffing Activities
Legal compliance
Planning
Recruitment:
Selection:
Job analysis
Employment:
External, internal
Measurement, external, internal
Decision making, final match
Staffing System and Retention Management
14-2
Introduction
• Even the best recruitment and selection
system in the world will be of little value to an
organization if the new employees leave their
jobs soon after being hired.
• Therefore, the establishment of effective
system for retaining employees is critical part
of the staffing process.
Turnover and Its Causes
• Nature of problem
• Types of turnover
• Causes of turnover
Nature of the Problem
• Employee retention can contribute to organizational
effectiveness
• Turnover is not only costly but may be beneficial.
• Focus of retention strategies
– Number of employees retained and
– Who is retained
• Approach to retention management
– Gather and analyze employees’ reasons for leaving
Types of Turnover
Types of Employee Turnover:
Voluntary
Involuntary
Types of Turnover
• Voluntary:
is broken down into avoidable and unavoidable
turnover.
– Avoidable - Could be prevented
• Try to prevent for high value employees by certain organization
actions like pay raise or new job assignment.
• Do not try to prevent for low value employees.
– Unavoidable - Could not be prevented like
• (retirement, health problems).
Types of Employee Turnover Voluntary -- Employee Initiated
Types of Turnover
• Involuntary
– Discharge
 It is aimed at the individual employee, due to discipline
and/or job performance problems.
– Downsizing
 May occur as permanent or temporary employees layoffs.
 Typically targets groups of employees .
 It occurs as part of an organizational cost- reduction
program.
Types of Employee Turnover Involuntary -- Organization Initiated
Causes of Turnover: Voluntary
Causes of Voluntary Turnover
• Behavior of leaving preceded by intention to quit.
• Factors affecting intention to quit
– Desirability of leaving
• Often results from a poor person/job match or
• Person/organization match
– Ease of leaving
• Represents lack of barriers to leaving and, being able to likely find a new
job
– Available alternatives
• Depends on other job options both internal and
outside organization
14-11
Causes of Turnover: Involuntary
• Discharge turnover
– Mismatch between job requirements and KSAOs
• Employee fails to follow rules and procedures
• Unacceptable job performance
• Downsizing turnover
– Mismatch in staffing levels which leads to an overstaffing
situation
– Factors related to overstaffing
• Lack of forecasting and planning
• Inaccuracies in forecasting and planning
• Unanticipated changes in labor demand and/or supply
14-12
Measurement of Turnover:
Reasons for Leaving
• Important to determine, record, and track reasons
why employees leave
• Tools
– Exit interviews
• Formal, planned interviews with departing employees
– Postexit surveys
• Surveys sent to employees soon after their last day
– Employee satisfaction surveys
• Surveys of current employees to discover sources of dissatisfaction
which may become reasons for leaving
• Results can provide information to pre-empt turnover
Most Effective Retention Initiatives
Guidelines for Increasing Job
Satisfaction and Retention

Extrinsic rewards
– Rewards must be
meaningful and unique
– Rewards must match
individual preferences
– Link rewards to retention
behaviors
– Link rewards to
performance

Intrinsic rewards
– Assign employees to jobs
that meet their needs
– Provide clear
communication
– Design fair reward
allocation systems
– Ensure supervisors provide
a positive environment
– Provide programs to
enhance work-life balance
Other Guidelines for Increasing Job
Satisfaction and Retention
• Provide organization-specific training
• Combine training strategy with a selection
strategy focused on assessing and selecting
general KSAOs
• Approaches to make internal alternatives more
desirable than outside alternatives:
– Internal staffing
• Encourage employees to seek internal job opportunities
• Provide attractive internal options