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Dr Lisa Bradley Associate Professor and (Acting) Head of School School of Management Queensland University of Technology.

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Presentation on theme: "Dr Lisa Bradley Associate Professor and (Acting) Head of School School of Management Queensland University of Technology."— Presentation transcript:

1 Dr Lisa Bradley Associate Professor and (Acting) Head of School School of Management Queensland University of Technology

2  Why worry about retention?  Work motivation theory  What motivates employees to work?  What motivates them to work harder? SO…What stops them leaving you?  How do we retain high-performing employees?  Summary and recommendations

3  Turnover disrupts workplace productivity  Lost momentum, lost output  Employees need to neglect their own work while covering for missing co-workers  It takes time to incorporate new employees and get back up to speed again  It may anchor workplace productivity at a lower level  Ongoing lower levels of output and profit  Turnover negatively impacts on the unit’s productivity  Costs of recruiting & training new staff  Diversion of managerial attention and funds  Adjustment costs for new & old employees

4  Why do they leave?  Higher pay offered elsewhere? u You need to pay the market rate –But they may be worth more elsewhere Talent ‘fit’ with the job requirements u You may need to pay more than the going rate –Employee may have firm-specific skills & knowledge  – to get a “better job”  A ‘better job’ offered elsewhere? u What constitutes a ‘better job?’

5  It is one that the employee ‘gets more’ out of  Higher level of ‘engagement’ u Job satisfaction u Job involvement u motivation  Person-job fit  Person-organisation fit

6  Work and Leisure are complementary activities requiring a trade-off  Only 24 hours in a day  The employee’s work decision involves:  Work time  Work intensity  Work effort = Time x Intensity  Discretionary work effort  Minimal work effort  Maximal work effort

7  What motivates people to WANT to work (at all)?  What makes them want to work beyond the minimum?  Discretionary work must be voluntary  Going beyond the minimum required/expected u Organisational Citizenship Behaviour u Contextual performance u Extra-role performance  Answering these questions will solve the retention problem…if you also encourage them to want to do that for you

8 ‘War’ for Talent  We compete for ‘star’ employees  Stars combine high levels of task performance with behaviours which are beyond expectations  Once we have them, we want to retain them “ Talented people are the scarce strategic resource of the 21 st century” (Hewitt, 2001:2)

9 Contextual - Task Performance (Borman & Motowidlo, 1993; Van Scotter, Motowidlo & Cross, 2000) Performance TaskContextual Application of technical skills & knowledge Support the organisation - psychological & social context 5 Elements - Volunteering - Persisting with enthusiasm - Helping & cooperating with others - Following rules & procedures, even when inconvenient - Endorsing, defending, supporting objectives of firm

10 What leads to motivation?  Good management  Strong leadership – upward influence  Social interaction  Fun at work  Decision-making autonomy  Work is not too hard, but is challenging  Protection from risk  Security  Ability to manage work and non-work activities

11 Issues for retention  Employee needs  Work/life balance  Justice perceptions Leading to….  Engagement of employees

12  They want more income  To buy goods and services  They don’t enjoy their non-work time  Lack of leisure activities, friends, lack of ‘leisure skills’  They enjoy the non-monetary aspects of work  Social networking, good managers, good co-workers  Tangible and intangible perquisites (perks) of work  They want to achieve success or specific targets  Achieving targets takes longer than not achieving them

13  Need for goods and services  Economic Orientation  Need for leisure  Leisure Orientation  Need for perquisites in the workplace  Perquisite Orientation  Need to work  Work Orientation  Need for achievement  Achievement Orientation

14  Having and enjoying goods and services  Economic Orientation  Having and enjoying their leisure (non-work) time  Leisure Orientation  Having and enjoying perquisites at work  Perquisite Orientation  Having the opportunity to work  Work Orientation  Achieving targets and success  Achievement Orientation

15  Defined as ‘the strength of preference for income’  This preference is derived from the strength of preference for goods and services (i.e. materialism)  Some strongly prefer material things, others less so…  For some, income is related to productivity, which for some is related to time spent working…  Expectancy theory (Vroom, 1964)  It encompasses the preference for future income  E.g. One might work harder to gain a promotion  Also encompasses the preference for financial security  E.g. One might work harder to build a bigger ‘nest egg’

16  Defined as ‘the attitude of an individual to leisure’  For simplicity, Leisure = Non-work  The strength of preference for non-work time  Is derived from the strength of preference one has for u Time spent by oneself, relaxing, sleeping u Time spent with family u Doing chores u Participating in the community u Involvement in sport and recreation, etc.  High and low preferences for leisure…  Depend on your preferences for the above components  The income-leisure trade-off  Only 24 hours in a day

17  Perquisite Orientation is defined as the strength of preference for the non-monetary benefits associated with working  Perks are both tangible & intangible u Physical things – office, car, location, etc. u Social interaction with co-workers, fun at work, good management/leadership, achievement, etc  Some perks are negative u Irksome co-workers, traffic congestion, etc u Net perks = Perks – Irks u This is what we mean when we say ‘perquisites’

18  Defined as the individual’s attitude to work per se  Economists traditionally expect this is to be negative; i.e. workers have an aversion to work. – theory X managers  Calvinistic ‘work ethic’  An inner psychic need to work u Work itself gives satisfaction

19  Defined as the strength of one’s preference for achieving desired results at work  Completion of projects on time, on budget  Winning formal or informal competitions  Gaining market share, increased profitability, etc  Need for achievement has long been recognized as one aspect underlying people’s motivation to work u McClelland (1953)

20  Job satisfaction does not necessarily translate into higher productivity  Hard to monitor employee performance u Monitoring and surveillance costs  Group production hides individual performance u Free rider problem, shirking  Recent evidence suggests we need to look at work ‘engagement’ rather than satisfaction  Employees need to be motivated to PERFORM, as well as kept happy  Managers need to design jobs and workplaces that best motivate employees to perform better  And be happier while performing better  Get more out of their job  Higher engagement

21 WORK-LIFE BALANCE  Defined as a satisfactory level of involvement or “fit” between the multiple roles in one person’s life and how well someone is able to manage these competing demands (e.g., Tausig & Fenwick, 2001).  Employees who experience increased levels of stress due to a lack of balance between their work and non-work life, are:  less productive  less committed to, and less satisfied with their organisation and  more likely to be absent or leave the organisation (Adams, King, & King, 1996; Boles, Howard & Donofrio, 2001; Frye & Breaugh, 2004)  The availability of even extensive work-life policies does not necessarily result in widespread utilisation by employees

22 Work-life Culture  Work-life culture: “the shared assumptions, beliefs and values regarding the extent to which an organisation supports and values the integration of employees’ work and family lives” (Thompson, Beauvais & Lyness, 1999, p. 394)  Five aspects of the organisational environment – ‘work-life culture’ - have been identified as contributing to under-utilisation (McDonald, Brown and Bradley, 2005)

23 Policy-practice Gap  Of the 127 participants who indicated they wanted to use or increase use, reasons stated:  Nature of their job (26)  Unsupportive work area (25)  High workloads (25)  Lack of information (18)  Financial reasons (12)  Policies not offered or available (11)  Technical problems (4)  Length of service too short to be eligible (2)  Would affect promotion opportunities (2)

24 Perceptions of the 5 day week The five day week is fantastic. This is the way the whole industry should operate’ ‘I wouldn’t be working on the job if it included a six day week’ ‘A five day week is what I and my family now demand. I will not work six days again, even if it means changing to another industry.’ ‘I was actually contemplating whether the construction industry was not for me. And I was becoming active in seeking other roles. And then the elimination of the Saturday work – really saved that. So if it wasn’t for that, probably wouldn’t be here at the moment. And, not only had I felt the change, and the huge benefit – my wife has as well. She immediately saw a totally different person on the weekend. So that was really positive. But now I’m much happier, much more energetic at work. So I concentrate for longer – well, for the entire time I am here. Whereas before there were times there that were non-productive. ‘ (salary staff)

25 Dimensions of Work-life Culture 1. Manager support – supportiveness of management 2. Career Consequences – negative consequences associated with work-life policy use 3. Time expectations – expectations of working hours (time and place) 4. Gender expectations – perceptions of gender roles and parenting in the workplace 5. Co-worker support – supportiveness of co-workers of work-life balance and use of work-life policies

26 Justice  Realistic Job Preview  Links with needs and expectations  Psychological contract  Selecting the right person  Ability  Training  Perceptions of decision making  Procedural and distributive justice

27 Psychological contract  Overall set of expectations about what the individual will contribute to the organisation and vice-versa.  It is not written on paper, nor are all the terms explicitly negotiated.

28 Psychological contract  Individual contributions  knowledge  skills  abilities  loyalty  time  Organisational contributions  sense of fulfilment  job security  financial rewards  meaningfulness

29 Overall Recommendations  To retain employees, focus on: 1.Meeting their needs 2.Ensuring their ability to manage their work and non-work lives 3.Try to maximise employee engagement 4.Deal with employees ‘justly’  How can we do this…..?

30  The workplace first (person-organisation fit)  Build in desirable non-monetary benefits u Physical perquisites – office, car, parking, etc u Good opportunities for work/life balance u Intangible perquisites –Good management and leadership –Workplace culture of achievement, fun, socialising  The job second (person-job fit)  Pay enough money – meet the market u May be worth more to you than to other employers –Job-specific skills and tacit knowledge  What drives the individual? u Cater to those needs by modifying the job to suit the person’s individual preferences –Achievement? Perquisites?

31 Job Characteristics model: Job Dimensions  Skill variety: the degree to which a job requires a variety of different activities in carrying out the work, which involve the use of a number of different skills and talents of the employee  Task identity: The degree to which the job requires completion of a “whole” and identifiable piece of work - whether in the immediate organization or in the external environment

32 Job Dimensions (cont)  Task significance: the degree to which the job has a substantial impact on the lives or work of other people - org or environment  Autonomy:The degree to which the job provides substantial freedom, independence and discretion of the employee in scheduling the work and in determining the procedures to be used in carrying it out

33 Job Dimensions (cont)  Feedback from the job: the degree to which carrying out the work activities required by the job results in the employee obtaining direct and clear information about the effectiveness of his or her performance.

34 Have a supportive work-life balance culture  5 dimensions 1. Manager support 2. Career Consequences 3. Time expectations 4. Gender expectations 5. Co-worker support

35 Justice  People will compare themselves  Ensure performance management systems actually work  Is performance under employee control?  Is on-going feedback being given?  Don’t break the psychological contract

36  All of these should lead to greater employee engagement  Engaged employees lead to better individual AND organisational outcomes  Design your workplace culture to attract and retain the kind of worker you want  Productive, committed, happy, and loyal  Treat your good performers as the valuable resource they are – or someone else will.

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