The Criticality Of Retaining Skilled Employees Management Essay


Purpose of the record: The survey is intended to analyse the key factors involved in employee retention and also target of the measures to be taken up by the employer for reducing the attrition rate of skilled employees. The solutions mentioned suggested in the statement could be possibly applied regarding 'Keeping Suzanne Chalmers'. The commentary also seeks to discuss further the reasons of the staff leaving the business.

Scope: The information in the statement ranges from examining the factors for Suzanne Chalmers quitting the job to the measures used by Thomas Chan to avoid the attrition. Further the evaluation in the commentary will discuss on the whole the reasons in charge of such situations in organisations.

Background: The credentials of the article will be the case study of Suzanne Chalmers a high talent in the area of internet protocol working at API who made a decision to quit the organisation even though was offered options like higher salary, much larger working space, unpaid leave for just two or three months complete with paid benefits and upsurge in show options.

Limitations: The article revolves around the staff retention of Suzanne Chalmers and the methods attempted by the workplace Thomas Chan and is limited to be offered only a few variety of reasons to stay back the occupation. The research of the case is situated and compared on the theories of four drive and the theory of expectancy.

Summary of the problem:

The case of Suzanne Chalmers working at Advanced Photonics Inc. as a software engineer in internet standard protocol is an example of the issue faced by many employers in today's market were in employees who are talented for the work and maintain key position in the business after gaining many accolades for outstanding performance over years and accountable for finishing projects adding a lot of money to the business deciding to leave the business on an extremely brief notice without proper reasons. The summation of the record discusses about the means and ways the employer can practice to carry the employee back again at the job and other reasons accounting for the employee to decide to leave the job and possible alternatives around the issue. It also confers about the resolutions attempted by the staff in the case of Suzanne further converses about the employee behavior on the whole towards their job and the tasks entrusted onto them by the workplace.

The goals of the employee and employer generally speaking are also mentioned in the survey. Regarding Suzanne Chalmers the employee quits the organisation at a stage of her job were she is under the age of 40 years exactly like many other employees who leave the company. It is also noted that the reason is not stress or extended hours. The vice leader of Advanced Photonics Inc thought that the reason why was more money. The generous share options which had skyrocketed on the stock market giving many employees more money than they can make use off. It has been observed that their money independence provided them less reason to remain with the organisation. It was mentioned that the staff after stopping the organisation and going for a break returned back again to market and joined a start-up software firm in the same locality.

The meeting between your vice chief executive and the employee is reviewed further moving to the solutions for retaining employees in general. The determination factors for the employees in an organisation have been elaborated in the article. The survey would also discuss thoughts of the labor force as well as beliefs and attitudes of management.

Importance of worker turnover:

Abbasi and Hollman (2000) searched for to look for the impact of staff turnover on organizations and discovered that excessive worker turnover often engenders far-reaching repercussions and, at the extreme, may jeopardize work to achieve organizational objectives. In addition, Abbasi and Hollman (2000) indicated that when a business loses a critical employee, you can find negative effect on innovation, steadiness in providing service to friends may be jeopardized, and major delays in the delivery of services to customers might occur. The analysis also showed a decline in the typical of service provided to friends may possibly also adversely affect the satisfaction of inside and external customers and therefore, the success of the business.

As part of the process of developing and implementing strategies to maintain and increase competitiveness, organizations face the task of retaining their finest employees. As such, this research was made to evaluate and determine the very best ways for just one employer to preserve its critical employees. The company in this review has been successful at maintaining a relatively low turnover proportion, however the employees who remaining the organization have been critical employees, thus delivering a significant obstacle. The results of this research effort potentially could be utilized as a platform for guiding staff retention in other large, intricate organizations.

Criticality of Retaining Skilled Employees:

Fitz-enz (2002) stated that the common company loses roughly $1 million with every 10 managerial and professional employees who leave the business. As mentioned recently, the combined immediate and indirect costs associated with one worker ranges from a minimum of one year's pay and benefits to a maximum of two years' pay and benefits. Thus, there may be significant financial impact when an organization loses some of its critical employees, especially given the data that is lost with the employee's departure. It'll become significantly more important in the years forward to identify the commitment of people to a business, as well as the organization's need to set-up an environment in which you might be willing to remain (Harris, 2000).

Organizations will need to either create an intellectual capital environment where in fact the transmitting of knowledge occurs throughout the structure, or continue steadily to lose important individual knowledge that has been developed through the amount of service (Harris, 2000). This profound knowledge is exactly what many believe will meet the needs and targets of the customers and create and support a competitive advantages within the global market where organizations are rivalling in today.

The critical factors produced out of eminent drive theories and the implications for expanding and implementing worker retention practices serves as a follows:

Needs of the Employee - Employees have multiple needs based on their specific, family, and social values. Furthermore, these needs rely upon the current and desired financial, political, and sociable status; job aspiration; the necessity to balance profession, family, education, community, faith and other factors; and an over-all feeling of your respective satisfaction with the current and desired express of being.

Work Environment - Employees want to work in an environment that is productive, respectful, offers a sense of inclusiveness, and will be offering friendly environment.

Responsibilities - Given that one feels experienced to perform in a more challenging capacity and has recently confirmed such competencies, an employee may feel a need to seek additional responsibilities and become rewarded in a fair and equitable manner.

Supervision - Managers and other leaders more frequently than others feel a need to teach, mentor, and develop others. Furthermore, these individuals would seek to impact the organization's goals, objectives and the strategies made to achieve the quest of the organisation.

Fairness and Equity - Employees desire to be treated and regarded in a good and equitable manner regardless of era, gender, ethnicity, disability, sexual orientation, geographic location, or other likewise defined categories, With increased effort and higher shows employees also be prepared to be viewed more significantly than counterparts who provide outcome at or below the norm. The employee's work and performance at a particular level is influenced by their individual goals and objectives and which would range by each individual. An results or pay back that is recognized to be highly significant and important can lead to a higher level of effort and performance by the average person employee.

Effort - Even though employees may exert higher levels of effort into a position based on a recognized significant reward, this may be a short-term success if the task itself will not struggle or provides satisfaction to the employee.

Employee Development - Employees prefer to function in environments offering difficult, offers new learning opportunities, significantly plays a part in the organisation's success, offers opportunities for advancement and personal development predicated on success and demonstrated interest in a particular area.

Feedback - Individuals opt to have well-timed and open responses off their supervisors. This feedback should be a continuing process during the year and not limited by formal performance reviews once or twice per year. Furthermore, the opinions should be from both the staff and the supervisor.

Employee Retention at Advanced Photonics Inc :

As implicated in the event study Thomas Chan the vice president at the organisation has noticed that employees even though were under 40 years, which is too early to retire quitting the job at API. It has also been witnessed that it is not for reasons like stress or long hours however the organisation's share options that skyrocketed on the stock market which kept many employees at API with an increase of money than they may spend. It has additionally left the employees to be millionaires providing them with financial independence going out of fewer reasons in which to stay used at API.

In this particular case Thomas was approached by Suzanne Chalmers who may have been used at API for four years in neuro-scientific internet process as a software engineer supporting the software that directed fibre optic light through API's routers. Additionally it is talked about that internet process is a very specific work and Chalmers was one of the very best talents in that area.

Theory of Expectancy and Four Drive Theory:

Four Drive Theory: As it is known that emotions play a significant role in worker inspiration which is not recognized by many theories and research workers. But, the four drive theory emphasizes the idea and relevance of emotions in employee inspiration. The theory originated by Harvard Business University professors Paul Lawrence and Nitin Nohria. Corresponding to Steven M, Mara O, & Tony T (P. 178, 2009), a motivation theory that is based on the innate drives to obtain, connection, learn and defend, and that comes with both thoughts and rationality. It has been produced that employees with higher mental intelligence will be more sensitive to rivalling needs from the four drives, and are better able to avoid impulsive behavior from those drives, and can assess the ultimate way to act to fulfill those drive demands in a public context. Suggestions of the useful implications of the theory are discussed in two parts. First being that best workplaces for staff motivation and wellbeing offer conditions that help employees match all four drives. Employees continually seek fulfillment with their innate drives, so successful companies provide sufficient rewards, learning opportunities, social interaction and so forth for those employees. The next recommendation is the fact that fulfillment of the four drives must be held in balance; that is, organisations should avoid too much or inadequate opportunity to gratify each drive. The reason behind this recommendation is usually that the four drives compensate each other.

Expectancy Theory of Inspiration: This theory offers an elegant model based on rational logic to predict the chosen way, level and persistence of desire. Relating to Steven M, Mara O, & Tony T (P. 178, 2009), expectancy theory is a motivation theory predicated on the theory that work effort is aimed toward behaviors that folks imagine will lead to desired effects. The idea also says that work effort is directed toward behaviors that individuals believe will lead to desired benefits. One of the attractive characteristics of expectancy theory is the fact it provides clear guidelines for increasing employee desire. The Expectancy Theory of Determination originated, by Victor Vroom of the Yale School of Management, in the year 1964. He was of the judgment that individuals made a mindful choice while considering if to perform at the work environment. However the choice that was made by the worker depended entirely on the employee's degree of motivation which was a function of three factors that happen to be effort, performance and final result.

Current pattern of Employee job satisfaction and Suzanne Chalmers:

In the current generation employee is not completely satisfied with higher salary packages but wants more than that and stressing on impressive ways of retaining the employee. The reasons for choosing an organisation for occupation can be grouped as location of company, payment, the job, company reputation, profession development, career route, job security, organisational culture, problem, training and development, empowerment and attractive benefits. Like wise potential reasons for staff to leave the company can be grouped as salary, insufficient task and opportunity, lack of career advancement opportunities, ineffective management, inadequate emphasis on teamwork, not having the ability for a flexible work schedule, too much time of your commute, insufficient trust in senior management, inadequate opportunity for training and development and low overall job satisfaction. The situation of Suzanne Chalmers can be outlined for lack of concern and opportunity and lack of a better job. The employer took good care of everything but lacked on the above mentioned factors departing the employee without other choice but to give up the work.


If the organisations take up better employee retention plans and offer employees with an increase of valued reasons to stay back again with the organisation. The firms can potentially produce innovative employee retention programs by offering the employees with better location of the company or the branch which is nearer to their living place, compensation, better job coordinating their qualification, profession development, career route, job security, organisational culture, task in job, training and development, empowerment and attractive benefits. Applying the thoughts of Four Drive theory has been proved to be very important in the current situation as feelings play a significant role in inspiration of employees.

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