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Business LibreTexts

7.3: Retention Plans

  • Page ID
    23770
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    Learning Objectives

    1. Be able to discuss some of the theories on job satisfaction and dissatisfaction.
    2. Explain the components of a retention plan.

    Effective high-performance work systems (HPWS) is the name given to a set of systematic HR practices that create an environment where the employee has greater involvement and responsibility for the success of the organization. A high-performance work system is a strategic approach to many of the things we do in HR, including retention. Generally speaking, a HPWS gets employees involved in conceiving, designing, and implementing processes that are better for the company and better for the employee, which increases retention. Figure \(\PageIndex{1}\) gives an example of HR’s part in creating these systems.

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    Figure \(\PageIndex{1}\): HR Components of a HPWS. (CC-BY-NC-SA This work)

    Keeping HPWS in mind, we can begin to develop retention plans. The first step in this process is to understand some of the theories on job satisfaction and dissatisfaction. Next, we can gather data as to the satisfaction level of our current employees. Then we can begin to implement specific strategies for employee retention.