Employee retention necessitates bringing about a lot of measures in order to convince employees to remain in the organization for the long term. Retaining employees in an organization is not an easy task. And, employee motivation plays an extensive role by contributing on a very large scale in employee retention.

1. Employee Motivation and Employee Retention
Employee retention involves a simple process that encourages and uplifts individuals or teams within an
organization to remain engaged with the Company in the long term. It is beneficial for both the employee
and the employer. However, retaining employees depends on four major factors on which employee
motivation is based:
Remuneration and Rewards
Remuneration plays the biggest role in the process of motivating staff, which in turn, leads to retention. It
takes a clever hand to compose a compensation package. The best packages include:
• Basic Salary
• Incentives: Cash or non-cash, stock options, etc.
• Allowances: Medical, domestic, travel, etc.
• Bonuses: Festival Bonus, appraisals based on Company’s and individual’s performance, etc.
• Employee Assistance Programs: Legal, psychological, etc.
• Retirement Benefits: Provident Fund, gratuity etc.
Work Atmosphere
It is not always about retaining an employee but about managing one’s surroundings at work. It is about
offering appropriate facilities and services to staff. A Company should serve as a second home, as most of
the employees spend a maximum of their time at work here. The following features play a major role in
making the employee feel connected to the corporation:
• Friendly and lively culture
• Ethical values
• Reliability and dependence
• Most up-to-date technologies
• Learning environment: Provide scholarships for higher education
• Personal and Professional Balance: Flexible hours
• Challenges
• Engaging employees in decision-making
• Credit and recognition
• Health, safety and well-being
Growth Opportunities
Growth is an integral element of an individual’s career graph. If there is no scope of growth within a
Company, the employee seeks external opportunities. The essential aspects that an individual looks to
grow in are:
• Job profile: A low or high job profile underrates or overrates an individual’s ability and aptitude.
• Personal zeal to develop: The Company must also focus on helping the employee reach his
target goals. If the individual is dissatisfied with achieving his personal targets, the organization
loses him.
• Training for personal development: The Company should provide training facilities such as
technical and communication improvement programs, one-on-one sessions and feedback surveys
as electives, in order to motivate employees and also help enhance the employee’s individual skills.
Bonding and Timely Support
Providing a personal or professional supportive work culture is sometimes overlooked by Management.
This results in demotivation due to the decrease in interest in work in a particular team or a Company as a
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2. whole. To craft a good, reliable, longlasting bond between the management and an employee, it is
important to:
• Respect the individual
• Recruit leaders who can promote team work and enhance relationships
• Recruit an individual only if necessary
• Provide support at the time of need
• Acknowledge individual targets and create growth opportunities
Therefore, it is very important to motivate employees at the workplace in order to retain them.
Empowering employees, making them realize their importance and value to the organization, appreciating
their efforts and appraising them for their performances will induce self-motivation and help reduce
employee turnover.
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