Challenge 3

 Challenges in Retaining the Talent Pool in Organizations

Talent retention in a company is the company’s effort to retain talented, experienced and high performing employees within the company for a long period of time. Due to today’s highly competitive business environment, there are many job opportunities available to talented employees. Therefore, if the company is unable to meet their expectation, they may leave the company to find better job opportunities. Therefore, this has become an important challenge in human resource management.

Talented employees are a more important factor for the company’s growth. Therefore, when talented employees leave, it costs more than hiring and training new employees. Therefore, retaining talented employees are more important than ensuring the stability and performance of a company. To retain talent in a company, measures such as providing fair and competitive salaries, training programs, providing promotion, skill development, reducing employee stress by ensuring work life balance, and evaluating employee performance can be taken. This enables the company to gain competitive advantage reducing employee turnover and increasing performance. 

Employee retention is an important area in HRM as employees who are effective tend to greatly contribute to an organization’s performance and success. Thus, an organization faces a critical concern in the area of HRM when the employee turnover rate is excessively high. Talent pool retention therefore becomes of critical strategic concern to organizations.

Through Maslow’s hierarchy of needs theory, it has been often found that workers tend to stay in those places where their basic needs are fulfilled in terms of salaries and job security. Other high-level needs are recognition, belongingness, and career advances. For whatever reasons, talented workers are not provided with those things in certain places.

Herzberg’s Two-Factor Theory further reveals that factors such as pay rates or conditions will prevent an individual from feeling dissatisfied in a company, though it will not actually retain them in the company in the long term. Employees’ motivation or retention depends mainly on factors such as recognition, promotion, responsibility, or the possibility to further develop themselves as a person.

Regarding this, in terms of the HRM function, the organizations will also have to ensure that they implement the relevant talent management and appropriate performance management strategies in the organizations; this will ensure that the relevant retention of each of the employees within the organizations is adhered to properly. The third function of an HR department within an organization would ensure that each and every employee within the organizations feels valued, and this would be done by implementing the relevant HRM theories while ensuring success through appropriate best practices in this regard.

Proposed HRM Strategies to address the challenge

·         Competitive Compensation and Benefits

Firm should present fair salary, performance incentives, and benefits like health insurance and dividends. This supports employees feel safe and reduces displeasure and laborer turnover.

·         Career Development and Training Opportunities

Organizations should give training plan, skill development, and clear job pathway. When worker see chances to grow and improve, they are more likely to stay in the company.

·         Effective Performance Management Systems

A clear performance appraisal system with regular feedback should be used. Recognizing good performance motivates employees and increases their commitment to the organization.

·         Employee Recognition and Rewards

Employee achievements should be recognized through rewards, promotions, or appreciation programs. Recognition makes employees feel valued and increases their sense of belonging.

·         Positive Work Environment and Culture

The organization should create a supportive and respectful work environment. Good relationships with managers and co-workers improve job satisfaction and loyalty.

·         Work–Life Balance Initiatives

We should have working hours this means we can choose when we work. We should also have leave policies so we can take time off when we need it. And we should have stress management programs these are programs that help us deal with stress.

These things are important because they help reduce stress and employee burnout at the workplace, which's really good for the employees and for the company because flexible working hours and leave policies and stress management programs really help people to feel better and not get too tired, from work.

·         Strong Leadership and Employee Engagement

Managers should be trained to communicate well and support employees. When employees are involved in decision-making, they feel valued and are less likely to leave.