EMPLOYEE RETENTION

The role of HR in talent retention and employee loyalty



The role of HR in talent retention and employee loyalty

Table of Contents

Introduction3

Employee retention8

Job loyalty11

Importance of Job loyalty14

The role of HR managers15

Duties Of HR Managers Regarding Employee Loyalty19

Employee Expectations And Loyalty26

The role of HR managers in retention32

Factors that impact employee retention36

Factors that impact Job loyalty37

Influence of HR managers on Job loyalty40

Conclusion43

The role of HR in talent retention and employee loyalty

Introduction

Global expansion plans have implications for cultural diversity, international job placements, and the need to understand and work effectively with local workforces. Internal factors can also serve as drivers and restraints (Timming, 2007). Arguably one of the most significant internal factors influencing talent retention policy and practice is its definition. Whether or not it is perceived as being synonymous with HRM practices or workforce planning, the extent to which it is associated with technology and enterprise level systems automation, and whether it is focused on all employees or just a few, will clearly have a profound effect on its implementation (Vallas, 2003). Given the lack of direction in the literature, developing a clear definition of what talent retention means within any one organization, along with what it is meant to achieve, is an important first step. Beyond a clear definition, other internal factors have been identified in the literature (Wilkinson, 2008).

Viewed against the backdrop of the recent economic downturn, the need to identify, develop and retain top talent for critical job roles has never been more important. This reality forces organizations to approach talent as a critical resource that must be managed in order to achieve optimum results (Clarke, 2003). Organizations can therefore no longer be reactive in the supply of talent to execute the business strategy. Tackling the current talent retention challenges requires organizations to view talent retention as a critical activity aligned with the organization's business strategy that aims to attract, develop and retain talented employees (Clarke, 2003). Talent retention incorporates several critical system components such as workforce planning, hiring and recruiting, career development, performance management and succession management, to name but a few. True integration of these system components is crucial to getting the most of the talent retention process. However, research shows that organizations are not ready or equipped to confront the talent crisis (Combs, Liu, Hall & Ketchen, 2006). Many organizations do not have a talent strategy and the talent retention system components function in isolation. Such organizations, for example, meet their recruiting needs on a reactionary basis and lack a detailed career and succession management process. The current better practice approach highlights the alignment of employees' capabilities and career aspirations with the companies' business strategy and talent needs.

Identifying talent employees in a company can prove difficult. A good talent-development system can help to provide consistent reviews, which then match skills and potential to internal opportunities. By definition, not everyone is “above average” and by calibrating performance across organizations, reward systems and budgets can be better targeted. Once high achievers are identified, the challenge becomes retaining ...