RELATIONSHIP BETWEEN CAREER DEVELOPMENT AND EMPLOYEE RETENTION IN PUBLIC SECTOR ORGANIZATIONS: IMPLICATION FOR A TIMELY INTERVENTION
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RELATIONSHIP
BETWEEN CAREER DEVELOPMENT AND EMPLOYEE RETENTION IN PUBLIC SECTOR
ORGANIZATIONS: IMPLICATION FOR A TIMELY INTERVENTION
CHAPTER ONE:
INTRODUCTION
1.1 Background to the Study
Career
development and employee retention are key strategic considerations for all
organization regardless of size, sector, market or profile. The development of
the capacity and capability of the organizations managers has a fundamental
impact on efficiency, effectiveness, morale and profitability of an
organization. High performing organizations increasingly pay close attention to
the validity of their recruitment practices and are becoming equally vigilant
about developing their employees in order to ensure they achieve optimum
performance both in the present and the future. This is confirmed by Mwenebirinda,
(1998) who acknowledges that employee performance can be enhance via training
that addresses identified weaknesses. One of the most significance developments
in the public sector in recent times is the increasing importance given to
human resources. Torrington and
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Hall (1987)
agree and point out that due to their use of labour intensive activities and
increasing competition within the sectors, financial services in general and
industry in particular have embark on considerable investment in career development.
A career refers to all of the jobs that people hold during their working lives.
Career planning is the process by which employees plan their career goals and
paths. Career development refers to all technical and managerial skills
employees acquire to achieve their career plans. Employee retention is an act
of keeping or retaining workers in an organization for increases turnover.
Employee retention can means how long an individual has stayed with an
employer, or it can means how long a person has been attached to the labour
force. Employee retention can be represented by a simple statistic ( for
example, a retention rate 80% usually indicates that an organization kept 80%
of its employees given period). However, many consider career development as relating
to the effort by which employers attempt
2
to retain
employee in their workforce. In this sense, retention becomes the strategies
rather than the outcome.
Career
development is considered important factor in employee retention, organization
has the incentives to decrease employee turnover in form of training &
development of workers. According to Clark (2001), organizations are
intensification development for talented employees, through proficiency
analysis, input on employee interests, need development and multisource
appraisal of capabilities and formulate plans for action. Wetland (2003),
suggested that firms and individual made investment on human capital in the
form of development. Career development enhances the skills, organization needs
to start training and development programme. Career development provides
specialized technique and skills to employee that helps to rectify deficiencies
in employee performance, and provide the skills and abilities to employee which
will be needed in the organization in the
3
future.
Development of skill consists of improving interpersonal communication;
technologies, problem solving and basic literacy, the development of people,
their competencies and the process of development of the total organization are
the main concerns of organization to enhance retention. Stone and Freemen
(1992) list special training for career development and employee retention
undertaken by supervisors as: Career Planning and Development for personnel.
The retention of talented employees is an advantage to an organization because
employees’ knowledge and skills are central to a company’s ability to
economically competitive. Employee retention becomes increasingly important to
organization because periodic labour shortages can reduce high performance
employee. Thus workers are searching for better employment opportunities and
organizations are seeking to increase productivity of their career path within
an organization to move them to remain in the organization to achieve their personal
career goals.
4
In spite of
the fact that, there are challenges in relationship between employee retention
and career development, HR executive find that attracting and retaining is a
problem because when employee leaves the job, organization lost not only
employee. But also lost the customers and clients who were loyal with the
talent is a problem because of bounded rationality, particularly of cultural
and social norms associated with the country (Metcalfe 2008). Organizations are
employees, knowledge of production, current projects, competitor and past
history of the organization. Ineffective career development is a problem that
affects the retention of employees in the sense that organizations quality of
served and turnover would reduce which may stop them not to retain employees.
Unwanted turnover due to stress, how job satisfaction, unsatisfactory working
condition and inadequate benefits may chase employee not to stay in an
organization.
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Organizations
make enormous efforts to attract handfuls of employees and sustain them in the
organization. In today’s business scenario only high salary and designation is
not significant for employees to retain them in the organization, but career
development also play important role in their retention. Career development in
the organizations helps to retain the talented employees because it gives
imperative outcomes to employer and employees. To gain and maintain competitive
advantage, organizations required talented and productive employees and these
employees need development to enhance and cultivate their competencies (Prince,
2005). According to Silbert (2005), well skilled and talented workers may
easily find good job, position and workplace elsewhere; however the effective
way for retaining these talented employees is to enhance friendly and close
working environment and to promote leader support. Career development provides
opportunity to test employees abilities and providing level of
6
performance
to enhance employees’ capability and make them to stay in the organization.
This study
provides an assessment of relationship between career development and employee
retention in the public sector.
1.2 Statement of the Research Problem
In any
public sector organization, career development has become necessary to serve as
a way of improving employee talent and retention of employee for the
achievements of organizational objectives. In spite of the role such career
development has not adequately enhanced employee retention in the public
sector, this is as a result of poor training and development in a public
sector. Inadequate organizational capabilities and the organizational
competencies also affect career development and employee retention. This is
because organizational capabilities and organizational competencies need right
kind of human resource in order to achieve organizational goal. As argued by
Prahald
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and Hame
(2000), organizations that acknowledge and direct their organizational
competencies efficiently competes more productively and effectively. Retaining
employees is the key issue in current business environment. Without well
incorporated staff in the organization and putting their greatest effort,
success can never be long term. Problems existing in the personnel or in a
sense human capital, have unforeseen influences that cause troubles with
training, planning and decision making. So it clarifies the reason why
employees leave the organizations. Cole (2000) stated that employees are more
likely to stay with organizations that give them the sense of pride and they
will work to maximum potentials due to some rationales as work climate,
rewards, opportunities to develop and grow and the work life balance (Madiha et
al, 2009). Major cost of organizations is due to more employees quitting the
job, these quit rates raise labor costs and lower organizational performance
(Norsworthy & Zabala 1986 cited in Batt, Colvin & Keefe, 2002). Several
factors e.g presence of challenging and meaningful work,
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opportunities
for development and growth, level of empowerment, responsibility and managerial
integrity and coordination affect the employee retention in various
organization (Birtet., 2004). Walker (2001) determined that compensation and
appreciation of the task accomplished, challenging and meaningful work climate,
learning opportunities, and strong relationship with workers, better work life
balance, better coordination within the organization, are the key factor that
support retention. Factor such as poor rewards, poor style of leadership, lack
of development opportunities, poor working environmental conditions directly
affect employee retention (Hytter, 2007).
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