Retaining Talent: HRM Theories and Practices

 

Due to the nature of the telecommunications industry, it faces significant challenges in retaining talent and maintain a healthy workforce. As we have identified previously, employee turnover can have a negative impact on the organization as it disrupts operations, creates a hostile work environment, increases costs, and hinders growth and innovation. It is critical to address such issues by identifying the issues and effectively implementing strategies to foster employee satisfaction and loyalty.

Following is an analysis of theories in HRM beneficial for any organization to have an in-depth insights into employee turnover and effective ways to minimize the employee turnover.


·         Expectancy Theory

 This theory suggests that employees are motivated to stay in an organization if they believe their efforts result in good performance which eventually leads to desirable rewards.

 

·         Equity Theory

 This theory suggests employee turnover caused by employees perceiving inequality and discrimination related to input (effort, skills, time) vs output (recognition, benefits, competitive salary).

 

·         Job Satisfaction Theory

 Higher job satisfaction is associated with lower employee turnover rates, whereas lower job satisfaction is associated with higher employee turnover rates. This is identified as a primary determinant of employee turnover.

 

·         Social Exchange Theory

      This theory suggests that employees weigh the costs and benefits of choosing to stay in an organization. If the benefits outweigh the costs, employees are more likely to stay whereas when the costs outweigh the benefits offered by the organization significantly impacting the employee turnover caused by job dissatisfaction.

 

The above explained theories provide a fundamental understanding into factors that influence employee turnover. Further, organizations can develop effective strategies to foster healthy workforce, organization by understanding and effectively implementing action plans. 


Comments

  1. Maneesha Gamage6 August 2024 at 20:40

    Very details article about turnover related theories. After going through all the theories I think more employees decide to leave the organization mainly because of Social Exchange & Job Dissatisfaction. As you mentioned here nowadays most of the people leave the organization for better benefits or salary. I think the current economic condition and some political decisions are the main reason for this.
    So, it is really important to level up the salary scales up to industry margin in order to retain the best talent within your company.

    ReplyDelete
    Replies
    1. Mirzab Sheriffdeen7 August 2024 at 18:28

      Thanks for your thoughtful feedback. You make a strong point about how pay and job satisfaction are big reasons for higher employee turnover. I can agree that economic conditions can also be identified as one of the key factors that affect the employee turnover in the Telecommunication industry. This same factor also creates an expectancy amongst the employees for their salaries to be matched to the industry standard as I had explained about expectancy theory under my blog article that evaluates the HRM theories that helps understanding employee turnover.

      Delete
  2. Wathmi Ashinika10 August 2024 at 10:50

    This blog clearly explain about Employee turnover in telecommunication industry. It is critical to address such issues and effectively implementing strategies to foster employee satisfaction and loyalty. To overcome these problems we can apply expectancy theory, Equity theory, social exchange theory and etc. As well as we can apply different HRM theories to reduce employee turnover.

    ReplyDelete
    Replies
    1. Mirzab Sheriffdeen 10 August 2024 at 12:41

      Thank you for your comment! You've understood the importance of addressing employee turnover in the telecommunications industry. Applying theoretical frameworks discussed in this blog article can indeed provide valuable insights into employee turnover and retention. Likewise, I agree that incorporating various HRM theories also can offer a comprehensive approach to address employee turnover in the telecommunications industry.
      Would you like to share a specific theory you think could be used to address employee turnover in the telecommunications industry?

      Delete

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