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 Chapter 09 

Retention

Management

By: Heneman Judge

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Types of turnover :

 Voluntary (Employee initiated)

i- Avoidable turnover

ii- Unavoidable turnover

 Involuntary ( Organization initiated)

i- Discharge

ii- Downsizing 

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Avoidable

(Could prevent) 

Try to Prevent :

High-Value Employees

High Performance 

Strong KSAOs

Valued Intellectual

Capacity

 High Promotion

Potential

 High Training

investment

 High Experience 

 Difficult to find

replacement 

Do not Prevent :

Low-Value Employees 

Low Performance 

Weak KSAOs

Little Intellectual

Capacity

 Low Promotion

Potential

 Low Training

investment

 Low Experience 

 Easy to find

replacement 

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 Unavoidable

(Could not prevent) 

No Attempt to prevent,

Regardless of Value

 Retirement

 Dual Career

 New Career

  Health

 Child care or

pregnancy

 Elder care

 Return to School

 Leave country

 Take a break

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Involuntary (Organization initiated) Discharge

Discipline

PoorPerformance

Downsizing

Permanent Layoff

Temporary Layoff

Site or plant closing,

relocation

Redundancy due to a

merger or acquisition

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Causes (Drivers) of Voluntary Turnover :

Desirability of Leaving

Low Job Satisfaction

Shocks to employee

Personal (non job)

reasons

Ease of Leaving Favorable labor

market conditions General, transferable

KSAOs

Low cost of leaving

Alternatives Internal: new job

possibilities

External: job offers

Intention

to Quit

Intention

to Quit+

+

+

+

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Reasons of Leaving:

 Employees Satisfaction Surveys 

 Exit Interviews

 Postexit Surveys 

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Retention Initiatives: Voluntary Turnover 

Guidelines for Increasing Job Satisfaction

and Retention:

 Match reward to employee preferences

 Make rewards unique

 Rewards must be meaningful Link rewards to retention behavior

 Deliver rewards that are promised

 Reward permanency is important

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Retention Initiatives: Voluntary Turnover:

Guidelines for Increasing Job Satisfaction and

Retention:

Report turnover costs to top management on a

monthly, quarterly, and annual basis.

 Fairness and justice  Communicate continuously

 The Manager matters

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Ease of Leaving:

 Organization-specific Training

 Increased Cost of Leaving 

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Retention Initiatives: Discharge

 Performance Management

 Training and Development

Alternatives to Downsizing 

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Five Mistakes to Avoid While You Still

have a Job:

 Ignoring Self Improvement

 Not Availing Opportunities

 Not Saving Money  Not Developing Contacts

 Not Planning Ahead

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Best Wishes for ll