CHAPTER 2: Literature Review

Organizations these days whether they are new or old are striving towards a common goal which is indeed
hard to achieve. That is to first attract and then retain good talent which can enhance the productivity of the
organization. There is also a study that shows that every few company out of many have even a dedicated
job for this purpose and that is to work on employee retention.

Perspective of Academic:

There are two main factors that are being paid attention by the academics. The first one is the job satisfaction
and the other one are the alternatives. As for the first one, if the employee is happy that is if the employee
is being properly evaluated and is being given pay raises timely, and keeps getting promotion based on the
authenticity of the work, or is getting a good supervision which motivates the employee to learn more and
have less co-worker issue, and is also getting a more enjoyable and healthy environment to work, then that
is employee will most likely stay in that organization and will not turn his/her back on them. The second
factor is the alternatives that an employee gets while work. Those alternatives are other and better jobs at
different organization, and sometimes offers from the competitors who are willing to pay more for the talent
than the current one. If given good offers, it gets hard for an employee to stay because everyone wants to
get ahead and earn more if they are given a chance. An employee will most likely leave and catch the
alternative if it is a better option to choose.

Job satisfaction is a major issue for both an employee and organization. An employee wants to have peace
at mind, good pay, and healthy work environment while he or she is on work. Along with this, some good
holiday times and other benefits like health care are just icing on the cake. But, all of this comes in if an
employee is working and is getting productivity for the company. When a person is working hard and is
giving their best for the company which will eventually help the company to accomplish its goals, that
person will require a certain things in return. Job satisfaction being one of those things, plus an employee
will work more efficiently and harder when he/she is satisfied with the job. One mistake from either side
can make an employee dissatisfied with the work and then the search for an alternative begins.
Once an employee is dissatisfied with the work, the hunt for alternative work starts which is not good for
the current organization because this is the first stage of losing talent and if this goes on, it gets hard to
retain one. This is the time when the inner feeling of an employee awakes and tell that person to look for
alternatives. This uncovers all the hidden and the easily approachable options for an employee to choose
and if, even one is better than the current one, than it is very rare for an employee to stay. If the employee
is having very few alternatives, then he or she will likely stay on the current job and work to get successful
and proceed from the current position at the current organization.

(HILTROP, 2002)

Perspective of a Practitioner:

Most of the practitioner perspective also takes light from the previous literature that has been discovered.
A practitioner’s perspective usually revolves around the factors of the economy. How the economy is going,
whether it is going towards a boom or towards a doom, it puts a great impact on the mind and living of an
employee which opens new doors and opportunities for an employee. If the economy is going down, then
the job of an employee is in danger. Such event has happened in the past and is known as the great recession
which caused millions to lose their jobs around the world. An employee is in danger because a sword always
is hanging over his or head during the bad times and this is the time when an employee is working hard to
save the job and at this time, nearly zero alternatives are available and everyone has to hang on to what is
being offered. On the other hand, when an economy is succeeding in a country, then even an average
employee has many job openings which means that there are many alternatives to choose. During this time,
it is hard for an organization to retain good talent and this is also the period when an organization has to
give out more benefits and pay raise to their employees because even a single mistake that might dishearten
the employee will make him or her leave the organization because of many alternatives available.

(Lee, 2005)

Processes of leaving:
There can be few major causes that becomes a process of how an employee leaves an organization.

 Plan

This first process is the proper plan. An employee is always thinking about the future career and its family
future. He or she will most likely leave an organization thinking about the family. Like for example,
organizations look for a newly wedded employee. First of all, that employee is productive and is working
hard because that employee has to provide for its newly started family. Second reason is that that employee
stays in the same organizations and does not switch between jobs very often because of the same reason of
getting stable and providing for the family. An employee also thinks for the future and plans accordingly in
order to sustain in life. These plans work if properly thought and executed at the right time. If the female
gets pregnant, then it is likely for a male to either get stable at the current job or look for a better alternative
which is giving more benefits and is paying out good. Everyone has to think and provide for their family.

 Leaving from a shock

This is the process when an employee leaves from a shock, This is without a plan or search for new job.
For example, a world wrestling entertainment superstar left his wrestling career after a sudden shock of
watching his friend die during a fight. This incident made him quit wrestling without the plan of starting
something of his own or getting a job after that. There are several cases where an employed person leaves
because of a certain shock without planning for the future. It is after the quitting of the job that the hunt for
something new in career begins.

 Having a better alternative

This is the process where an employee is actually leaving for the better. This is if there is a competitor or
completely other and diversified organization is providing something much better than the current
organization. This is the ideal situation and this is most likely the main reason and common reason for an
employee to leave. This is the situation when an organization is really having trouble retaining an employee,
because this reason is something that make even the oldest employees leave that is because no one wants
to leave an extra few bucks and benefits.
(HILTROP, 2002)