Employee Retention: An Investigation On The Influencing Factors

One of the most important tasks of the Human Resource Management (HRM) is employee retention. Hence, turnover rate is used to evaluate the HRM’s performance, and it is considered to be ok where the turnover rate is normal. However there exists another side for the coin which has got a lot to do with the reasons why the employees remain in the organization. By no doubt, the employee retention backed by any likely (weak) reason is not of value for the management. There would be no more tension for the managers in this case ust by some justified reasons coming into force for the employees to remain in the organization. In other words, the management performance has been considered to be perfect to the level of motivational factors being influential in this regard. Three main types of factors are identified and analyzed in this paper to influence the employee retention, naming motivational factors (job satisfaction), internal environmental factors, and lastly external environmental factors. Findings show that internal environmental factors, external environmental factors, and finally motivational factors influence the employees retention in the decreasing order. Moreover, the influence of motivational factors from one side, and the external environmental factors from the other side is reversely associated. That is, the more the influence of motivational factors on the employee retention decreases, the more the influence of the external environmental factors on the employee retention increases. It means that many of those unsatisfied of their job remain in the organization longer, just due to being forced to do so because of the external environmental factors. If it is so, then it would not be an ideal stand for the organization management. Moreover, the research findings show that the management performance in employee retaining has not been optimum. Therefore, it is necessary to make the motivational factors playing more active role.