CSR AND EMPLOYEES RETENTION

Effects of Social Responsibility on Retaining Employees

Effects of Social Responsibility on Retaining Employees

Introduction

Even the best recruiting and selection system in the world will be of little value to an organization if the new employees leave their jobs soon after being hired. Therefore, the establishment of effective systems for retaining employees is a crucial part of the staffing process. While some loss of employees is both inevitable and desirable, retention management seeks to ensure that the organization is able to keep enough employees with important knowledge, skill, ability, and other characteristics (KSAOs) to generate future success. Everyone likes and wants to live more with the person who does charity, give something good to the society and is good, the same thing goes with employee and organizations. CSR plays a major role in retaining employees.

From a strategic perspective, some turnover of employees is actually good. For example, when an employee who lacks strategic competencies leaves, an opportunity arises to find a more suitable replacement. On the other hand, if a highly productive employee with unique skills leaves, the organization may have trouble finding a suitable replacement. In this case, turnover can severely limit the organization's ability to achieve strategic goals. There are many factors that help retaining employees and Corporate Social Responsibility (CSR) is one of them. CSR fulfills employees psychological need of doing something for the world. This paper discusses effects of social responsibility on retaining employees.

Discussion

CSR marries the ideas of global citizenship with environmental stewardship and sustainable development. Social responsibility also is linked to employees retention. Social responsibility is a broad field because it covers or can come into play in so many areas—everything from how you treat people to how you treat the environment to what you do with the opportunities or capabilities that are available to you—but for me it basically means being sensitive to the good of mankind in whatever area that might be impacted. (Brenner, 2010)

Good corporate social responsibility in practical terms means that organizational managers and leaders must:

be sensitive to the issues that affect the lives of the people they live and work with;

possess an understanding of the conditions in society that they could have a positive influence on;

consider the social impact that their financial and business decisions have on a wide range of constituencies, stakeholders, and the environment

be conscientious about not only what the company produces, but also how it is produced.

Most important, being socially responsible means going beyond awareness of these social impacts by being willing to act on them. (Coleman 2010, 605-633)

Role of Corporate Social Responsibility (CSR) in Employees Retention

Corporate Social Responsibility (CSR) help organizations to decrease voluntary turnover. Through considerable research, various models of voluntary turnover have been developed and tested.3 The model shown in Exhibit A is a distillation of that research.

[Exhibit A: Causes (Drivers) of Voluntary Turnover]

The employee's intention to quit depends on three general factors: the perceived desirability of leaving, the perceived ease of leaving, and alternatives available to the ...