Employee motivation and retention key for companies

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The effectiveness of any organization is directly related to the effectiveness of the human element and its ability and willingness to work as an influential and effective element in the use of available material resources. The administration relies on the rational use of available material and human resources to maximize the results. It may be difficult to rationalize the use of the human element because of the multiplicity of variables related to it, to the extent that it makes it hard for the administration to rationalize the use of this element, the matter which made the main problem facing the administration of any organization is to identify the variables related to this element, which is reflected on the behavior of these individuals who represent the workforce in the organization.

Motivations and retention are some of the basic influences that play an important and vital role in the behavior of individuals, and by which the organization can create a desire among employees to performance effectively. Consequently, the ability of organizations to achieve their goals depends to a large extent on the administration success in the provision of adequate motivation of individuals and develop an effective system for motivation which help to raise incentives, which in turn prompt workers to perform better and bring them job satisfaction, which lead to lift morale and increase performance. In addition to the role of retention policies that include meeting the diverse needs of staff, and create a favorable environment to encourage them to stay in their work and enhance their sense of belonging to the organization.

This essay try to spot light on the employee motivation and retention, their definitions, importance, role in organization performance and how to improve them to achieve the maximum benefit for organization and employees making no difference alike. In addition to identify the efficiency of these improvements policies and practices.

What Motivation is?

According to some references, the term motivation comes from Latin word "movere" meaning "to move"(). Another reference indicates that the motivation is derived from the word "motive" which means that latent power in a person which impels him to do work().

Motivation refers to "the forces either within or external to a person that arouse enthusiasm and persistence to pursue a certain course of action"().

Victor H. Vroom (1964), is considered one of the most famous researchers who interested with theories of motivation, especially in the expectancy theories of motivation, researchers and practitioners have widely used Vroom's theories of motivation().

Vroom defined motivation as "a process governing choices between alternative forms of voluntary action and argued that the strength of an individual's motivation is the product of():

- strength or valence of that individual's preference for a particular outcome.

- expectation of the individual that certain behaviours will in fact lead to that desired outcome".

Hoy and Miskel (1982) defined motivation is defined as the complex forces, drives, needs, tension states, or other mechanisms that start and maintain work-related behaviours toward the achievement of the personal goals"().

According to (porter & Lawler, 1968) motivation is "a function of the perceived effort and reward probability and the value placed on that reward"().

Motivation is also defined as "the process of all allocating one's energy to actions or tasks, Motivation is about the level of effort one imports to the job, how that effort is allocated across actions or tasks, and the persistence over time effort allocation"().

In another definition, motivation is "made up of all those inner striving conditions described as wishes, desires, drives, etc… it is an inner state that activates or moves individuals"().

According to Huber "there are three common components are embodied in the term "motivation". Motivation describes factors that are believed to energize human behavior in some way. It also refers to the mechanisms of how and where that behavior will be directed. Finally, it encompasses insights on how that behavior is sustained over time" ().

In spite of all definitions we mentioned above, its not easy to understand motivation. Human motivation is a complex matter. Sometimes a person's motives may be clear to him, but quit puzzling to others, in other situations both the individual and those affected by his behavior understand what is driving him. In some situations, especially where stress is involved, the individual concerned may be totally unaware of his motives whereas others may see them quite clearly().

In general, motivation is effected by external factors, include rewards, recognition, bonuses, promotions, and praise ().

Theories of motivation

Theories of motivation classified into two categories:

Content Theories of Motivation: this grope of motivation theories present some ways of analyzing individuals with the aim of identifying their needs. They help to give accurate facts into various of human needs, how they vary among employees at work, and what causes behavior to occur and stop when it does().

These theories are():

Maslow's Hierarchy of Needs.

McClelland's Acquired Needs Theory.

Alderfer's ERG theory.

Herzberg's Motivation- Maintenance Theory.

Process Theories: this grope of motivation theories seek to analyse how individual behavior is energized(). Also they are emphasizes how human behavior is initiated, sustained, and extinguished().

These theories are():

Expectancy Theory.

Porter-Lawler Theory.

Equity Theory.

Goal -Setting Theory.

Reinforcement Theory

What Employee Retention is?

Employee retention is crucial for a momentum- powered firm, just as much as customer retention. Low employee retention is expensive, ramping up costs in recruitment, training, coherence, culture, and customer interaction().

One of the most difficult tasks facing any company is retaining good employees. To do so, a company must recognize performance, promote morale, and fair compensation and benefits, a safe work environment, and adequate training to do a good job, most employees find that being recognized for their contributions is one of the most important aspects of their job().

The concept of employee retention developed as a response to increasing voluntary employee turnover, which means the numbers of employees leaving the organization, and dealt mostly with employee "hygiene factors"- primarily compensation and benefits().

According to (Webster's Collegiate Dictionary, 1993), retention is defined as the state of being retained or the act of retaining().

Retention is also defined as "the percentage of employee remaining in the organization, high levels or retention are desired in most job groups"(). Hence, employee retention can be measured by the annual percentage of key staff resigns().

While employee retention can be an important goal, there are advantage to turnover that offer creative growth and financial stability to a design firm. This includes the option to replace individuals with less experienced talent that is perhaps newer and fresher, and offer savings to the firm().

Although employee retention is always important, the issue becomes even more important when the economy faces a temporary decline().

Three particular trends are currently shaping employee retention strategies():

The concept of "core competencies".

The rise of the "free agent".

The concept of becoming an "employer of choice".

Policies and techniques to improve employee motivation and retention