PROPOSAL DEVELOPMENT AND DISSERTATION

SUBMITTED TO

SIR Dr ARIF KHATTAK

BY

HUNZA KHALID

01-121182-015
Review of Literature
Employee Retention
Employers must have a need to retain employees and keep them in organization
from leaving and going to work for the other organizations. This is obvious due to
several reasons the biggest reason is the huge amount linked with appointing and
retaining new employees. The finest and the best method to retain employees can
be well done by providing them with job satisfaction and opportunities for
enhancement in their careers but as the time passes the competition is getting tough
and tougher and it is becoming too much hard and difficult for the organizations to
retain its employees due to job market and opportunities (Fukui, et al., 2014).
Employees are the backbone of an organization and their retention is very much
important at each level such employees who are satisfied and please with their job
designs are more committed towards doing a well job and taking care of customers
that sustain the operation (Laddha, et al., 2012).

In the contrast the Equity Theory examined it is never all about just self
satisfaction having an individual power that motivates them to retain the reason is
this that as per the equity theory individuals are not just concerned with their own
level of power, need and reward they receive for their efforts they are actually
more concern about what others receive it is all comprised upon the input and
output of one’s efforts, knowledge, experience and education(Irshad, 2008).

These theories have a limitation regarding implications of them sometimes due to

politics; personal biasness due to which it is hardly implemented according to need
theory the level of power at each level of employee is not being discussed and
according to the affiliation factor it is not all the time required that every employee
wants to have close interpersonal relationship they have just explained one
personality trait and according to these two theories the equity theory is best to
implement which is all about the fair and justice and can be implemented at each
level of employees for their retention not only for the retention of critical
employees.

It has been criticized and argued that because of shift towards standards the
companies are now facing the issues and finding themselves in problem in making
themselves different from its competitors because the workers go to the other
organizations for the better opportunities and due to which turnover is being faced
mostly in service sectors most probably this issue is faced by educational sectors
and banking sectors (Howard & Hausknecht, 2009).

The most of the focus was given of employee’s desires such as compensation,
benefits and management development to retain employees but it was not being
mentioned about the work hassles and work uplift. Furthermore it has been
identified that psychological characteristics of job are also desirable tool for the
retention of employees the biggest focus of employee retention is to reduce
turnover and keep employees connected with organization because the turnover of
employees is much costly for the organization and the cost which they cannot bear
suddenly (Chipunza & Samuel, 2009). Retention strategies are being played by the
organization to keep their employees committed to the organization for the long
term. It has been acknowledged by the private sector organizations that the
retention of critical employees is one of the major issues in organizations because
their turnover is not bearable as they leave and go to another organization they also
transfer their skills, expertise and trade secrets with them which can build even
harder and more difficult situation for the organization (Michielsen & Kyndt,
2009) .

It has been identified that when an organization loses a skilled employee there is
ultimately a bad affect on creativity and development and it may affect the
satisfaction of customers as well and hence it hits the production and profitability
of an organization badly according to the study the simplest and most common
strategies of retaining the employees are reward, training and development because
they are most common and effective factors and strategies for the retention of
employees and reducing the turnover level these strategies can be implemented in
the form of increasing salary, promotion and training because they are those factors
if they are not being used appropriately for employees they leave one organization
and move towards another organization when there is a problem in management
style, deficiency of competitive payment system, destructive workplace conditions,
deficiency of job safety deficiency of promotion and inappropriate career and
development opportunity all are the most prominent reasons for the employee for
leaving his job therefore the vice versa use of these strategies will ultimately give
the positive result in retaining the employees and overcoming the problem of
turnover such organizations who have know how about what to do how to do and
when to do the correct use of these strategies will always keep its employees for
the long term (Ramlall, 2003)

Supervisor Support
Supervisor support plays a vital role in regard to employee retention. If he supports
the two faces communication and having an effective and good relationship
between them are likely to be much engrossed in the organization. Employees with
worth and respect are willing to take active part in the organizational goal, helps to
present fruitful behavior, hence increase job participation that decreases the
replacement rate it is the supervisor support that encourages the employees when
they are being recognized valuable and worthy by the organization they get the
strong affiliation towards the organization (Fukui, et al., 2014).

when the workers perceive a misbalance in their outcome and input ratio relative to
other by their supervisors it will definitely build disappointment therefore they get
demotivated and they are about to leave their jobs because they strive for equality,
justice and fairness (Irshad, 2008).

The requirement for power was defined to make the employee feel valuable and
being considered for taking some decisions and they are being listened by others.
The need for affiliation is very much important because no man is an island and
human is basically a social animal therefore the employees have the desire to have
a friendly and close interpersonal relationships with their supervisors (Irshad,
2008).

Work Environment
Work environment differs in industrial sectors and service sectors. At service
sectors it includes the work load, decisions, supports, stressors. It is necessary to
know the need of employees and the environment in which they are relax to work
energetically. People stay longer in those organizations where the work
environment is positive and good people give more preferences to their self respect
and they are willing to work in such an environment that promotes positive work
environment (Newman, 1977).

All those organizations that practices high employee involvement with friendly
environment are examined to have more pivotal because in those organizations the
power of decision making and information is dispersed throughout the organization
this always results in self-program and self-managing (Gerin, 2002).

The another case was being examined through the study which was related to
higher education in South Africa, they suffered from the issue of turnover due to
unfavorable working conditions. The skilful employees migrate themselves to the
other countries such as Europe and Australia which had a negative impact on South
Africa’s job market. So in order to overcome this issue they improved working
conditions and work environment to the employees (Nestwera & Rankhumise,
2005)

Compensation System
Compensation and reward are being considered as important features of human
resources management. The compensation system which an organization actually
offers to its employees definitely plays a vital role in determining the commitment
levels of employees as well as their retention. Money is such an influencing factor
that shapes the behavior of employees therefore compensation influences the
attraction and retention of the workforce (Chipunza & Samuel, 2009)

(Laddha, et al., 2012) Says Compensation contains a huge influence regarding

employee’s degree of engagement and retention. It can be in the form of monetary
or non-monetary such as employee basic salary and additional benefits such as
health insurance and performance bonuses. It brings high level of satisfaction in
employee and motivates the employees to work productively, it is stated that
employees wish to have something in return for which they work for and if they
are being rewarded the good compensation they will be retained.

The another case was being examined through the study which was related to
higher education in South Africa, they suffered from the issue of turnover due to
unfavorable unattractive pays. The skilful employees migrate themselves to the
other countries such as Europe and Australia which had a negative impact on South
Africa’s job market. So in order to overcome this issue they started giving rewards
and provide attractive compensation to the employees (Nestwera & Rankhumise,
2005)
Career and Training Development
America faced an issue regarding the turnover rate in health care industries for this
they adopted mission oriented employee retention strategies in order to avoid
sudden turnover rate and to make the strong retention strategies they went for
competitive plans for the purpose of increasing employee retention while giving
them benefits, good compensation and well training. It has been further
recognized that when employees leave the organization so it requires to conduct
the training again for the new employees which compels them to bear a high cost
and then the new employees take time to be flexible (Newman, 1977)

(Akhtar, et al., 2008), career and training development is considered the major
factor for employee retention. Employees are willing to learn new skills because it
enhances the motivational level of employees and it makes them feel they are
valuable and they are willing to apply the new skills on their jobs because learning
new skills to enhance the productivity and to retain the employees are much
important and this is the only way that helps in retaining the employees when they
are being taught different skills.
 THEORETICAL FRAMEWORK

.
Supervisor
Support

Work
Environment

Employee
Retention

Compensation
System

Career and
training
development
Hypothesis
H1: There is an effective relation at supervisor support and employee retention.

H2: There is an effective relation at work environment and employee retention.

H3: There is an effective relation at compensation system and employee

retention.