Impact of employee retention

Employee Retention Strategies Employee Retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee.

Impact of employee retention

Faced with an increasingly competitive business environment, many employers are turning to employment testing as a way to improve their workforces. In a recent survey, forty percent of Fortune companies indicated that their employment selection systems included some form of psychological testing.

A similar survey by the American Management Association showed that forty-four percent of its responding members used testing to select employees.

While cognitive ability tests continue to be the most commonly used form of psychological testing in the workplace, personality tests are being used more and more frequently.

Personality tests are self-report measures of what might be called traits, temperaments, or dispositions. The number of personality measures available is enormous. Some personality measures focus on characterizing individuals within the normal adult range of functioning, while others focus on the identification of psychopathology.

Many personality instruments such as the Minnesota Multiphasic Personality Inventory MMPI produce measures of a substantial number of personality characteristics; others concentrate on measuring single traits.

Employers use different types of personality tests for different purposes. For example, an insurance company might use a measure of extroversion-introversion to select applicants for a sales job so that Impact of employee retention characteristics match successful incumbents in their sales force.

Similarly, a police department might use the MMPI or a similar test to screen out applicants for mental instability or psychopathology. Perhaps the most commonly used personality tests are honesty or integrity tests.

They are used predominantly in the retail and financial services industries for low-paying entry level jobs in settings where employees have unsupervised access to money or merchandise. Integrity tests are designed to predict proneness for theft and other forms of counterproductive work behavior in job applicants.

Because the number of employers using integrity tests in the workplace is growing rapidly, it is useful to discuss them in some detail. Prior to the passage of the Employee Polygraph Protection Act ofthe pre-employment polygraph was the method of choice for screening applicants in many industries.

It is estimated that 70 to 80 percent of the four million polygraphs given annually were for pre-employment selection purposes. The Employee Polygraph Protection Act changed everything. Except in limited circumstances, private employers were prohibited from using a pre-employment polygraph to screen applicants.

With the polygraph no longer available, employers turned to paper and pencil integrity tests to perform the screening function. Byit was estimated that 6, organizations administered up to 5 million integrity tests annually. Although there is currently no federal regulation of integrity testing, a few states have restricted their use under their anti-polygraph statutes.

For example, the Rhode Island statute does not ban integrity tests, but it requires that such tests not constitute the "primary basis" of an employment decision.

Massachusetts forbids the use of any written technique that provides a diagnostic opinion of honesty, a proscription so broad that it may prohibit not only integrity tests but also the use of application blanks, reference checks, structured interviews, and the validity scales of most psychological tests as well.

To understand the benefits and risks associated with integrity testing, it is useful to briefly review the different types of tests. There are three basic types of integrity tests: Overt Integrity Tests Overt integrity tests were specifically designed to predict the predisposition of job applicants to engage in on-the-job theft and other counterproductive job behavior.

They measure attitudes related to one or more of the following psychological constructs: These tests typically consist of two sections.

The second involves requests for admissions regarding theft and other wrongdoing.

Impact of employee retention

Applicants are asked to describe the frequency and amount of theft and other illegal or counterproductive activity. The test items that make up this type of instrument are clearly assessing job-related content. There has been a great deal of validity research showing that integrity test scores can predict theft behavior.

Overt integrity tests have been found to predict the following theft criteria: Longitudinal studies have also demonstrated the real world impact of using integrity tests to select employees.

This impact-on-losses study was replicated in a home improvement center chain.

Impact of employee retention

Several other studies have shown that both applicants and employees from high-theft stores scored more poorly on integrity tests than did applicants and employees from low-theft stores.Study additional employee retention strategies and put them to use.

Every step you take to reduce employee turnover can make a difference. Every step you take to reduce employee . The Impact of Company Culture on Employee Retention Mark Miller | VP of Marketing, Emergenetics International There’s more and more evidence to the notion that the companies who perform best financially also perform extremely well with regards to their workers and their company culture.

Keep your employees interested in continuing their career by using training as a way to demonstrate that the company values them. Training is a bridge that can lead to employee satisfaction and a higher retention rate for your company.

Having a diverse workforce means your business is more likely to appeal to a wider customer base on the outside and have a richer source of creativity on the inside.

Employees feel valued for. International Journal of Academic Research in Accounting, Finance and Management Sciences –. Employee retention refers to the ability of an organization to retain its employees.

Employee retention can be represented by a simple statistic (for example, a retention rate of 80% usually indicates that an organization kept 80% of its employees in a given period).

What is retention? definition and meaning -