Article Critical Analysis Employee Retention Business Essay

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The focus of this study is to critical analysis of the article Targeted Employee Retention: Performance based and Job-Related Differences in Reported Reasons for Staying written by John P. Hausknecht, Julianne Rodda, and Michael J. Howard. In this article authors explains that employees are becoming more and more competitive within the global arena. They stress the fact that recruiting people to meet the organisation's human resource needs is only half the battle in the war for talent. The other half is keeping people. In the following paper we will critically explain author's view of employee retention, the strengths and weaknesses of the article and methods of keeping the employee in private sectors they used.

Article Critical Analysis: Employee Retention

The authors of the article stated that for one individual, career is generally important to a person who has just been employed. This individual might devote all his energies developing his career by further studies and gaining more experience relating to his career and allowing himself to be mentored by his senior employees. In contrary, a person who has seen it all might be interested in achieving more out of his career; this might include progressing within the ranks of the organisation, as the present job does not stimulate or challenge him anymore.

According to the Burt, (2007), companies raise salaries for whole categories of people without considering how many individuals stay mostly for the money. They announce costly perks such as tuition reimbursement without knowing whether employees might prefer something else. They use the same retention techniques for salespeople, say, as computer programmers -even though the two groups are likely to have different interests.

The authors of the article examine that retention always begins with recruitment, and one key is to avoid bringing in employees who are guaranteed to be unhappy. Another key to hiring for retention is by giving people a thorough and accurate description wart-and-all-of the company and the job they are applying for.

To discuss about the methods of retention they truly stressed the word 'incentive' as a 'motive or incitement to action' (as also define in oxford dictionary). Hom, Roberson & Ellis, (2008) also stated that virtually all theories of motivation accept that money influences employees' performance to a certain extent (ref). At the same scenario the Harvard Business School Press (2005: 173) stresses the fact that no-one can honestly say that financial incentives don't matter in their professional lives (cited in Hom, Roberson & Ellis, 2008, p. 78).

The authors of the article expressed that after all, people have mortgages, college tuition, and other expenses to manage. But money alone isn't enough to motivate people to excel on the job. In fact, the most effective incentive system blends monetary with nonmonetary forms of reward -and often it's the nonmonetary types that prove the most motivating. The authors said that it must understand what employees most value: praise, the authority to do their work and make decisions, and support from their managers when they have made a mistake.

Financial options (employee share schemes)

Financial options are very focusing methods of the employee retention .According to Vidal, Valle, & Aragon, (2007), in the long term, financial options might not be a good option. What will happen to employees' motivation during the market downturns? If an individual is dissatisfied with the payment or dividends received, the result may be poorer performance. The dissatisfaction and need for higher returns might motivate him to invest his vested options elsewhere, giving him room also to look for another job with higher pay.

Higher pay strategy

Morrell, Loan-Clarke, Arnold & Wilkinson, (2008) say that in an economy of chronic labour shortages, organisations compete for limited human resources. To outbid competitors, organisations often entice workers to leave their present jobs with better pay packages, causing wages to spiral upwards.

Pay-for-performance schemes

Hom, Roberson & Ellis, (2008) stated that a change in conditions from the basis of employee evaluation and reward qualifications and skills development has led to greater emphasis on employee contributions, through this practice, performance appraisal and management by objectives organization. The change is most obvious in the compensation arrangements for senior management, although a series of non-management workers, many companies have introduced similar measures.

To discussing the reasons for keeping job performance authors found that superior and top management are predictive of employee motivation. Blau, (2007) contended that perceptions of management support could increase satisfaction and motivation, reduce stress, and improve job performance.

Perceptions of employees about numerous aspects of their work environment explained job satisfaction. Mache, (2007) defines fairness as a perception based on "the processes through which decisions are made." For Hom, Roberson & Ellis, (2008), fairness is the relationship between job performance and subsequent rewards and punishment. As a way to improve skills levels, improve performance and enhance feelings of self-esteem, and that the employees involved in training activities (Morrell, Loan-Clarke, Arnold & Wilkinson, 2008).

According to the authors income is a standard by which a worker can assess relative gains from the investments of time, work, and skills in a job. Rewards can be intrinsic and extrinsic in nature. Intrinsic rewards, according to Vidal, Valle, & Aragon, (2007), are derived task or work it interesting and challenging work, the effectiveness of self-directed and responsibilities, variety, creativity, the opportunity to use their skills and abilities, and of sufficient feedback on a person's effortsand other factors. Although external rewards, is the interaction with others in the work from the reward. They are based on factors such as the quality of human relationships, the help and support of colleagues and supervisors (Mache, 2007)

Strengths and Weakness of the Article

The strength of the article is the career identity reflects the direction of career motivation, career insight and adaptability, reflects the awakening, strength and lasting power.. They also point out that some of the dimensions, like need advancement and commitment to managerial work are most applicable to managers in hierarchical organisations. Before proceeding with career job evaluation in an organisation it is better to explain the three dimensions of career motivation i.e., career identity, career insight and career resilience.

Typically, career information, and the strengths and weaknesses through self-exploration and environmental values​​, interests and skills, to explore, for example, to discuss career interests with peers or family members. Vidal, valley, Aragon (2007) pointed out, the staff know their strengths and weaknesses are more likely to prove the behavior aimed at improving the skills weaknesses.


According to the article it is conceived that the embedding of the work is an important intermediary structure between work and on-the-job factors and employee retention. It represents the status of a focus on the accumulation of generally non-emotional reasons, employees will not leave work, including one stuckness, inertia, or bias is a key-mediating construct between specific on-the-job and off-the-job factors and employee retention. It represents a focus on the accumulated, generally non-affective, reasons why employees would not leave a job, which comprise a sort of stuckness, inertia, or bias toward the status quo. Career management programs may or may not generate positive outcomes for organisations and their employees. If programs raise aspirations to unrealistic levels or make employees certain that their personal career plan do not match those of their organisation, knowledge of organisational career opportunities may force them away from an organisation rather than binding them to it (Morrell, Loan-Clarke, Arnold & Wilkinson, 2008). Managers need to understand how individual planning, organisational career information, and perceived matches between individuals and organisational career plans combine to shape and energize employees' career attitudes and behaviours.