Motivating and Retaining Employees Essay Example | Topics and Well Written Essays - 1000 words

Motivating and Retaining Employees - Essay Example One problem that may be identified with the Company is the need for the human resource department to design and implement measures to promote retention of these valuable employees. Since the Company attracts highly skilled and capable employees, the same employees will also be valued by the rival, competitor firms and McKinsey and Company must take steps to ensure that employees feel valued and appreciated, so that the Company is able to retain them rather than losing them to competitor firms. This Paper will identify measures that have been found to be successful in attracting and retaining good employees so that the Company can retain a good competitive advantage in the market. It will assess the relative benefits of monetary rewards as compared to intrinsic rewards such as recognition and which policy may better serve the company in promoting retention of the best employees. Several companies have successfully achieved a competitive advantage through the restructuring of their human resource management systems to provide financial benefits to employees, as pointed out by Schuler and Macmillan (1984). In the Bairnco Corporation, bonuses were linked to performance for top-level executives and the company was able to almost double its sales from $270 million to $442 million in the short span of two years. In the case of Lincoln Electric, workers receive a share in the profits, which imbues workers with a high motivation to produce. When employees are offered profit sharing and incentives, it may help to enhance their performance and increase retention. Oller (2002) discusses how employees at various design and printing firms are rewarded for jobs well done with monetary benefits, such as gift cash vouchers, free lunches or contributions for educational purposes. Such reward and recognition for work done well functions as a strong motivation for employees and helps them.