IBM analysis of labour shortage

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The purpose of my report is too analysing the reason of turnover as this means a whole to many company who has labour shortage. The report has try to look on all aspect which has made the retention a main point in human resource department every individual who works for human resource has worked on many sub division but when it comes to retain an valuable employee it becomes very difficult. My aim is to see how it will be managed by Human resource. Human resource department must follow certain procedures before doing any retention, train staff well before doing such risky jobs where in right judgement is solution to success. At the end of this report one case of IT (IBM) company speaks about their success & failure retention.


The report states about employee retention and the steps which can help the managers or any management to retain the staff back to company to keep the goodwill. The employee retention means, encouraging employees to services for few more years in same company. This is mostly done by compensating or meeting the staff requirement, in such cases it is mentioned that management must analyse good employee who can performance well in future and dismiss others who are not being good to management in achieving companies productivity, company maintain PRP (performance related preview) which is managed by human resource and management on confidential grounds. Projection of this report is towards every category in a company and how ever member has some things in equal for resigning their job, it is important that management and human resource members look into the depth of such factors which can be a threat in coming years. The objective in the report states about 3 main things like:

Ø Possibilities of retention occurring in a company

Ø Measures to be taken for reducing retention/ turnover.

Ø Strategy implemented by the HR for employee retention.

Future down I have discussed with few graph and tables to make it more explanatory. The employee has various reasons for leaving an organisation or company which they know very well but what is that which makes them happy for leaving.


The methods used to gather information is secondary and this was done with the references done through books and published journals and few others were famous authors quotation which helped me understand what it means to outside world, the articles which based on IBM company and how did they overcome this situation was helpful to grab the understanding. The references are done from British library and university articles. Case referred below is shared by one of the HR manager. The graphs attached are own ideas and opinion used to illustrate my views on employee retention. The sites which I preferred was emerald and Athens which helped me to go through various strategies to make my decision.

Main body

The report helps to understand about employee retention in very simple, retaining good employees which brings productivity and success to company. The book called “Human resource management: managing people at work”, “retention means encouraging staff to remain in company for long or till project completion”. The concept of retention is very favourable for both the company and employee because employer needs good staff and employee need good management which fulfils their living lifestyle. Author Diana Arthur, has commented that less turnover will happen if the company hire skill staff and who will remain in company for certain period of time. It has become difficult to create a stable environment because, lack of skilled workers in the competition. The company has not only put up the loss of good employee but has to invest again to fill the gap; this makes company face lot of marginal cost per year. Recent studies says that employee retention has become new chapter in every organisation because the employee has lot of scope from current to new employer and this makes tough competition in achieving good and right attitude staff to fill in a gap. More over studies says that company has to look into reasons of employee leaving. Few expected are mentioned below.

Ø Personal ( marriage, relocation, medical challenged, higher education)

Ø Potential( co-workers miscommunication, non performer, lack of experience)

Ø Drive( Lack of opportunity, personal growth, lack of appreciation)

Ø Drag (recognition and reward, salary, voyage allowance, physical condition indemnity) the above discussed are few but there can be many more lets look further down this factors. What is this reason mentioned above is explained briefly down.

As discussed above are the various aspects of employee retention which are faced first,

Personal: Every company has some common issues like personal where management can do nothing to stop the employee, genuine reasons like marriage, higher education, relocation with spouse, and medical challenged where management cannot stop in such situation.

Potential: Staff acceptance for leaving the company is welcome by both employer and employee on operational grounds. It is expected majorly from poor performer or from someone who is inadaptable with company's cultures.

Drive: The main retention occurs in such stream of drive factors where in staff has some common dissatisfaction at work which can cause concern to an organisation and this could be by immediate supervisor or the lack of opportunity at work, this can be easily looked by an company such reasons occurs due to low level of system in company which is unseen.

Drag : Employers competition is main cause of concern , this could be raising salary level by other employer can make employee feel to relocate their work to improve their current lifestyle, excellent opportunity to enter new work area. This reason is tackled by negotiating with employee and with better opportunity and package compared to future employer pay.

Above discuss are the key aspect because of which an employee leaves a company in search of better prospects. As an organisation they draw strategy to conquer such situation because skills have become very competitive in today's world but to achieve good employee is very difficult few steps has to be considered before turnover takes place, let's look into this steps.

Information of staff: This means an employer must maintain a detail report about each employee hour of work as this is maintained as a legal document which states about employee work productivity. This document will describe the employee potential skill and achievement contributed to company in service period.

Analyse the reason for leaving: HR must check their performance review, record the relation of the employee between other staff and supervisor. HR must understand the reason and try to manipulate before the staff puts in their paper for leaving this can help company save time and energy.

Potential for resolving the reasons: Company must collect all the top level management, Human resource manager and finance representative to join in discussion of retention this measures can be employer profit or else both can face loss. Comparison between competitors in such scenario is required. Management must come with few options to sustain their goodwill and also to retain employee.

Amendment of best option: Company must plan better opportunity for the employee who is leaving because lack of opportunity, no coordination between team mates and varies reasons which company can follow on. This requires trained staff who can handle issues which can be solved without many efforts and will gain right employee back to the organisation.

The first half of the reports states about the company possible reason for leaving whereas we shall monitor what strategy should be planned to increase retention.

HR has to set up different ways of handling the retention one could be analysing the cause of leaving discussing and resolving employee needs with companies decision. Human resource has to build good team members this can be done by noticing this few points as discussed, reimburse and repayment, Training and development, effective working condition, recruitment and selection process, Conflict among controller and assistant. The employer must build good foundation by looking into the heading said before like reimburse and payment because employee after achieving any targets or goal must be motivated this encourages employee to work at such times the other botheration does not affects them. Training in such way creative and aspiring employee ideas should be considered rather than using old method of working this makes employee very automotive in their work they forget what they learnt this must be appreciated at given intervals. Effective working condition this is main cause to couples who have kids in such scenario employer has rights to allow employee at their convenience by creating understanding between employer and employee can subsidise lot of internal issues. Recruiting is important since company needs skill staff and choosing right candidate is the art of HR recruitment. Above all this facts company needs to design a strategy to overcome such tedious situation which can help the company to regain their good and loyal service personnel.

Employer goes through various steps to decide which employee will fit in the job but at every interval employer must also note the variation in performance the employee do and counsel them whenever require this makes a good management where employee feels free to communicate with the employer but this will happen with various aspect this could be interviews which is also a mean of counsel or a formal talk where employee can speak about his ideas which can be used for the betterment of the company. Group discussion on any serious job given must be held between employee and supervisor so as to grow a strong bridge between each team mates this will enable the supervisor to judge each in different angle of work. Company after getting a resignation a formal exit interview is conducted where in feedback about the current employer is collected for future prospects but researchers say it is never looked in seriously, that is why it makes the volume of turnover increased from past years.

HR conducts exit interview but I totally disagree to this concept of interview because this never helps company to retain the staff, where company takes a pre exit and post exit interview which can be functional for future retention. This can be measures which a HR department can follow;

Ø Pre exit interview: this means employee is given a chance to share his comment about the current employer and what are the changes expected and reason for leaving this gives a whole picture about the employee psychology and company can enact according to employee view which helps employee to feel good and can think on his decision, but such changes should not be temporary which can damage the employer image.

Ø Post exit interview: As a employer company can evaluate the cause of leaving and employee can give opinion on current employer which can make the employer competitive to make sure rest of the employee is not affected with such decision.

Such strategy can create a good management practises which can be necessary to overcome such tremendous turnover. Conducting a pre exit interview is a formal and positive approach towards the employee on their future opportunity this can create a wide difference in mind of employee where in employer must always have good value in eyes of employee, mostly such interview is done by the line manager.

By retention company profits in good employee and also cost, every company has different grade people, company list their creditability on each level let us look at them. This strategy can help company stop turnover if well planned in employee performance this are ways of compensation which can make employee feel motivated.

Low Level: These workers are low skilled workers so compensating could in form of bonus, word appreciation, child care facility and this are the backbone of company so overlooking this needs can be huge loss to company.

Medium Level: All other facility like low level with few exceptions like medical allowance, recreation facility, policy for family and training for advanced technology.

High Level: They are the workers who rule the company management and they have all other like low and high with few exceptions like, they are trainer for other employee so vocational training in intervals, highly paid staff because they are the leaders they must be trained to fill the gap between the employee and employer.

Evaluation so far done says that every company has turnover and this could be with the reasons as discussed in earlier paragraph but strategy must be adequate to stop such retention. Personnel view is company must have good management principles which makes each employee satisfied at the end of there every shift and this is the main key to employer, which is failed with all the data collected so far suggested.