The core of any organisation are the employees; ensuring that they are motivated and are contributing maximal input to their work is imperative to the success of the company. As Director of Human Resources at Virgin Atlantic, Jill Brady said; “what could be more important in any organisation than its people?” (Brady, 2012).
Human Resources (HR) are responsible for employing specific people to reduce attrition rates, and increase the retention of employees. The recruitment process is a large part of this, and nowadays HR departments collate big data “using specific software to tailor recruitment campaigns to their needs” (Conboye, 2015).
Keeping employees in a business is an art which Human Resource Development (HRD) plays a key role in. Pay rises hold a large influence on employees, however research has shown that profit-sharing plans specifically stock options, bonuses, and “gain sharing” are better financial alternatives (Kets De Vries, 1996). Recently, benefits have shifted from monetary to non-monetary, and have been specifically customised for key employees; “one-size-fits-all retention packages are usually unsuccessful in persuading a diverse group of key employees to stay” (Cosack, Guthridge, & Lawson, 2015).
The pie chart shows that 32% of employees left their job due to lack of Career Advancement/ promotional opportunities. This is a leading issue that HRD need to tackle, particularly in smaller companies, such as Virgin. Brady is a good example career advancement “from in-house lawyer to HR Director” (Brady, 2012), however she understands that the HR team need to stress the vast potential for virgin employees to increase retention.
Speaking from experience, I believe that specific employee benefits are crucial because different demographics of people have different needs. I left my last job due to low pay because I’m a student where short term monetary gains are more important than long term benefits.