Gender Pay Gap Lebanon
CHAPTER I
INTRODUCTION
In this chapter, there is a brief background on theories that studied employee retention and an overview on factors affecting retention. Then the gaps, purpose of the study, significance of the study and the research questions will be discussed.
Background
In the light of the rapid economic change, companies all over the world are obliged to sustain their technological innovation, continuing globalization and competitive edge. To keep up with this process, companies should have the ability of retaining the skills of its employees by the continuous learning and employee development. Companies also have to take into consideration the demographic changes. In few years, workers between the ages 40 and 60 will retire which will cause a loss of skills that cannot be replaced by recruiting new employees (Kyndt et al., 2009). The loss of critical employees costs every organization approximately $1 million for every 10 managerial and professional employees (Ramlall, 2003).
One of the biggest challenges that companies face nowadays is retaining their employees (Kyndt et al., 2009). According to Mak & Sockel (2001), the most important indicator of retention is loyalty. New generation employees are less loyal to companies because they have much more opportunities and don’t want to have a traditional career. It costs a loss of investment (training new employees), competence and competitive advantage (risk of losing confidential information to competitors) (Kyndt et al., 2009). Three retention strategies are suggested to effectively deal with this generation work group: communication including feedback, group communication, corporate communication and employee surveys, employers should take into consideration the development of individuals, paying attention to generational interests (Munsamy & Bosch Venter, 2009). The most important factors that could cause the employee to leave the company are the salary, lack of challenge and opportunity in one’s
INTRODUCTION
In this chapter, there is a brief background on theories that studied employee retention and an overview on factors affecting retention. Then the gaps, purpose of the study, significance of the study and the research questions will be discussed.
Background
In the light of the rapid economic change, companies all over the world are obliged to sustain their technological innovation, continuing globalization and competitive edge. To keep up with this process, companies should have the ability of retaining the skills of its employees by the continuous learning and employee development. Companies also have to take into consideration the demographic changes. In few years, workers between the ages 40 and 60 will retire which will cause a loss of skills that cannot be replaced by recruiting new employees (Kyndt et al., 2009). The loss of critical employees costs every organization approximately $1 million for every 10 managerial and professional employees (Ramlall, 2003).
One of the biggest challenges that companies face nowadays is retaining their employees (Kyndt et al., 2009). According to Mak & Sockel (2001), the most important indicator of retention is loyalty. New generation employees are less loyal to companies because they have much more opportunities and don’t want to have a traditional career. It costs a loss of investment (training new employees), competence and competitive advantage (risk of losing confidential information to competitors) (Kyndt et al., 2009). Three retention strategies are suggested to effectively deal with this generation work group: communication including feedback, group communication, corporate communication and employee surveys, employers should take into consideration the development of individuals, paying attention to generational interests (Munsamy & Bosch Venter, 2009). The most important factors that could cause the employee to leave the company are the salary, lack of challenge and opportunity in one’s
References: Boxall, P., Macky, K., & Rasmussen, E. (2003). Labour turnover and retention in New Zealand: The causes and consequences of leaving and staying with employers. Asia Pacific Journal of Human Resources, 41(2), 196-214. Coldwell, D. A., Billsberry, J., Van Meurs, N., & Marsh, P. J. (2008). The effects of person-organization ethical fit on employee attraction and retention: Towars a testable explanatory model. Journal of Business Ethics, 78(4), 611-622. Retrieved from: http://www.sajhrm.co.za Kyndt, E. , Dochy, F., Michielsen, M. & Moeyaert, B. (2009). Employee retention: organizational and personal perspective. Vocations and Learning, 2 (3), 195-215. DOI: 10.1007/s12186-009-9024-7. Mak, B. L., & Sockel, H. (2001). A confirmatory factor analysis of IS employee motivation and retention. Information & Management, 38(5), 265-276. Monsen, E., & Wayne Boss, R. (2009). The impact of strategic entrepreneurship inside the organization: Examining job stress and employee retention. Entrepreneurship Theory and Practice, 33(1), 71-104. Munsamy, M., & Bosch Venter, A. (2009). Retention Factors of Management Staff in the Maintenance Phase of Their Careers in Local Government. SA Journal of Human Resource Management/SA Tydskrif vir Menslikehulpbronbestuur, 7(1). DOI: 10.4102/sajhrm.v7il.198. Ramlall, S. (2003). Organizational Application Managing Employee Retention as a Strategy for Increasing Organizational Competitiveness. Applied HRM Research, 8(2), 63-72. Sinha, C., & Sinha, R. (2012). Factors Affecting Employee Retention: A Comparative Analysis of two Organizations from Heavy Engineering Industry. European Journal of Business and Management, 4(3), 145-162. Sutherland, M., & Jordaan, W. (2004). Factors affecting the retention of knowledge workers. SA Journal of Human Resource Management, 2(2), 55-64.