Background And Significance
HRD is a mean to improve business effectiveness. The other motive may derive from the origins of improving the social well being of producers and consumers. Employees today come to work with all types of skills, skill levels, attitudes and personalities. The diversity of cultures and ethnicity is mounting at lightening speed. And for the first time in American history, five generations are working concurrently side-by -side. Even with this economic hold up, the best people have other offers. Employee wearing away has risen by more than 25 percent in the past five years. Attrition costs are roughly 18 months' worth of salary for each manager or professional who leaves and a half year's pay for each hourly worker. Employee defections are killing the bottom line and even worse, they are killing any chances for a quick turn-around once the economic winds of fate shift direction. The surveyed carried out of nearly 1 million workers of over three hundred companies over the past few years, has shown that it is important to weed out those managers who cause workers to abandon their job.
Retention has similarly become very costly and one of the direct causes of employee turnover can be attributed to faulty training. The paper will explore the impact of personnel turnover on an organization’s ability to learn, performance, influence of HRD and training. The presentation of a model of organization, evaluation of training, and organizational behavior etc will be helpful to develop the proposal. The requirement at present is since to research few questions only, evaluation of training part will be covered at length.
Aim/Objective Of The Study
The aim of the study is to carry out research regarding existence of retention and turn over problem in modern companies and evaluate the training to ensure that the trend is captured by removing the gaps in imparting of instruction.
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Retention / Turnover Problem:
The survey (Thomas Staffing, 1999) carried out on the issues of employee retention and turnover, revealed that 21 percent of turnover problem among respondent companies exist. The question asked was; "Do you consider employee retention a problem in your company?" Amount respondents, who indicate their company does experience some employee retention problems, when asked if this problem had increased, decreased or stayed the same over the last two years. Twenty-one percent of respondents felt retention was an issue in their area.
- Respondents who worked for companies in the transportation or automotive industries are indicated that an area-wide employee turnover problem existed.
- Respondents whose companies employed over 250 people were most likely to indicate employee retention was a problem in their company.
- The greater the number of employees in a company, the more likely the respondents was to indicate the problem of employee retention existed within their company.
- Among respondents who identified employee retention as a problem in their company, one-half feel this problem had increased over the last two years.
Influence Of HRD
HRD has the answer to help the companies to pick the right candidates with the right skills willing to settle in any work environment. A strong management team, bright colleagues, and good customers, and growth potential are critical. Finding the candidates is one challenge; the other is to retain them for indefinite period in the companies and present great employment opportunities to them with good incentive At a time when knowledge has been identified as a prime competitive advantage, the industry rocks under the scarce availability of skilled human resource, compelling HR managers to reinvent policies and tools to retain this valuable resource. Life for an HR manager is not much of a comfort when it comes to managing disinterested manpower.
Retention Strategy In Microeconomics Terms And The Role Of HRD;
Retention is the most important aspect of any industry particularly in the US companies. They are facing a severe attrition rate. Of late with the increasing drop in value of new economy stock, this trend has only grown. No firm has been found agreeing or divulging any details about attrition. Retention is an extremely difficult and complex aspect of HR strategy. One should work backwards to find out how best to retain an employee. There are a few main factors, which attract an employee to continue his job.