Retention
Employee retention is
considered as the heart of organizational success (Khalid and Nawab,
2018). It helps to have a talented and
committed workforce that would reduce recruitment costs and training and
development costs (Kamalaveni, Ramesh & Vetrivel 2019). By
selecting right people and implementing various strategies or programs to keep
employees engaged and motivated in an organization, the process of retention
begins (Freyermuth, 2007).
Retention is of primary
importance because organizations invest significant resources in training,
developing, tangible and intangible compensation and taking the time to build
organizational citizenship and buy-in to goals and objectives (Kazi, &
Zadeh, 2011).
It is an observation that
strategies like career aspirations, autonomy, delegation, involvement, and
cooperative and supportive working environment could be the key factors of
employee retention (Agarwala, 2003).
Herzberg's Two-Factor Theory
The Herzberg theory has
been used as a method to explore job satisfaction among employees (Lundberg et
al., 2009). Herzberg argued that there were two types of factors that impacted motivation,
these are the motivational factors and the hygiene factors (MacPherson, 2021).
Alrawahi et al. (2020)
discuss that, according to Herzberg's theory of motivation there are two types
of motivating factors:
1) Satisfiers (motivators) - which are
the main drivers of job satisfaction and include achievements, recognition,
responsibility, and work advancement
2) Dissatisfiers (hygiene
factors) - which are the main causes of job dissatisfaction and include
factors such as working conditions, salaries, relationships with colleagues,
administrative policies, and supervision.
Figure 1.0 depicts the
motivators and de-motivators in job satisfaction in Herzberg's two factor
theory (EPM, 2018).
Figure 1.0 Herzberg's Two-Factor
Theory
Source: (EPM, 2018)
The two-factor theory
argues that dissatisfaction is linked to hygiene factors and satisfaction is linked
to motivational factors (Herzberg, et al., 2010). In order to reduce
dissatisfaction, leaders must clean the hygiene factors within the team and in
order to increase satisfaction, leaders must focus on improving the
motivational factors (Herzberg, et al., 2010).
The 'Motivators' have a
correlation with Maslow's higher-level needs and the 'Hygiene Factors have a
correlation with Maslow's lower-level needs. The two factors work independently
of each other, however, to increase motivation leaders should ideally focus on
both of factors (Rae, 2017).
Herzberg's Two-Factor Theory in to Practice
Herzberg's Two-Factor theory
could be used to improve the motivation of the employee and thus to achieve retention
of employees of the organization. Satisfied employees tend to be more
productive, creative and committed to their employers and high levels of
absenteeism and staff turnover can affect your bottom line, as temps,
recruitment and retraining take their toll (Syptak, et al., 1999).
Considering the motivational
factors of the company that I work for used to motivate the employees are;
Salary & fringe benefits
–
Salary is not a motivator for the employees and hence, it is essential for the employees
to be fairly paid. The company I work for has a salary scale which is comparatively
higher than the other public sector organizations in the country. Hence, this
helps to attract, motivate and retain the most suitable candidates.
Working Conditions-
Providing an environment that improves the level of the employee and the work done
is an inevitable motivational factor.
Policies of the Company-
Providing clear policies and instructions tends to motivate the employees to do
the job effectively and efficiently.
Supervision –
Supervising fairly to all the employees and the leadership skills of the
supervisor plays a great role in motivation the employees.
Interpersonal
Relationships – encouraging team work and organizing
social activities, the company tries to increase the motivation of the
employees. Further, taking charge of disruptive actions also helps to improve
the relationship among the staff.
Recognition – Employees at all
the levels of the company motivate by giving recognition for the work they do.
Giving more autonomy –
Giving more autonomy and responsibility for the work that an employee does,
certainly motivates the staff.
Advancement –
Allowing the employees to climb up in the ladder of the hierarchy certainly
helps to motivate and retain the talented employees of the company. Encouraging
both academic and professional development helps the advancement.
This video by EPM, (2018),further explains the Herzberg's Two-Factor Theory and the practical aspect of the theory.
Video 1.0 Herzberg's Two-Factor Theory
References:
- Agarwala, T. (2003). Innovative human resource practices and organizational commitment: An empirical investigation. International Journal of Human Resource Management, 14, 175-197.
- Alrawahi, S., Sellgren, S. F., Altouby, S., Alwahaibi, N., & Brommels, M. (2020). The application of Herzberg's two-factor theory of motivation to job satisfaction in clinical laboratories in Omani hospitals. Heliyon, 6(9), e04829. https://doi.org/10.1016/j.heliyon.2020.e04829
EPM, 2018. Expert Program Management. [Online] Available at: https://expertprogrammanagement.com/2018/04/herzbergs-two-factor-theory/ [Accessed 10 May 2021].
- Freyermuth, T. (2007). Retaining Employees in a Tightening Labor Market. RSM: McGladrey, USA.
- Herzberg, F., Mausner, B. & Snyderman, B. B., 2010. The Motivation to Work. 12th ed. New Brunswick and London: Transaction Publishers.
- Kamalaveni, M.S, & Ramesh, S. & Vetrivel, T. (2019). Retention of Generation X Faculties in Self-Financing Engineering Colleges. Anthropologist. 36. 13-22.
- Kazi, G., & Zadeh, Z. (2011). The Contributions of Individual Variables: Job Satisfaction and Job Turnover. Interdisciplinary Journal of Contemporary Research in Business.
- Khalid, K. and Nawab, S. (2018) ‘Employee Participation and Employee Retention in View of Compensation’, SAGE Open. doi: 10.1177/2158244018810067.
- Lundberg, Christine & Gudmundson, Anna & Andersson, Tommy. (2009). Herzberg's Two-Factor Theory of work motivation tested empirically on seasonal workers in hospitality and tourism. Tourism Management. 30. 890-899. 10.1016/j.tourman.2008.12.003.
- MacPherson, A. (2021). Motivating Millennials: the journey to project success. 10.13140/RG.2.2.29251.02087.
- Rae, A., 2017. Organisational Behaviour - Project Management Fundamentals Lecture. Paisley: The University of the West of Scotland.
- Syptak, J.M., Marsland, D., & Ulmer, D. (1999). Job Satisfaction: Putting Theory Into Practice. Family practice management, 6, 26.
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ReplyDeleteIndeedVindya Herzberg’s two factor theory can be used to increase the employee retention.
ReplyDeleteHygiene factors are considered less important to job satisfaction than motivation factors. Hygiene factors are related to ‘the need to avoid unpleasantness. Motivation factors lead to job satisfaction because of ‘the need of the individual for self-growth and self-actualization’. This theory is one of the most commonly used theories in job satisfaction research (Dion, 2006). Many researches have used this theory as a theoretical framework in testing job satisfaction among nurses (Kacel et al., 2005; Mitchell, 2009; Jones, 2011).Furthermore, Organizational leadership is urged to first identify what satisfies or dissatisfies their workforce and initiate change programs to nurturing their job satisfaction and elevating job dissatisfaction which may motivate them for higher productivity and retention besides reducing their exit turnover or its intentions (Malik & Naeem, 2013).
Agree with you Gagana. adding to that, one of the most interesting results of Herzberg’s studies was the implication that the opposite of satisfaction is not dissatisfaction. Herzberg believed that proper management of hygiene factors could prevent employee dissatisfaction, but that these factors could not serve as a source of satisfaction or motivation (Juneja, 2015).
DeleteAgree with your view Vindya, Adding further when considering employee retention in an organization it is important to consider organizational factors such as organizational commitment and personal factors such as satisfaction level should be taken in to consideration for better retention( Hytter 2007).
ReplyDeleteThank you for the feedback Pernalla. I agree with you, there are numerous investigations that have studied the relationship between organizational commitment and job satisfaction. Predominant view is that job satisfaction is an antecedent to organizational commitment. There is also some support for the reverse causal ordering, organizational commitment as an antecedent to job satisfaction (Tatar, 2020).
DeleteAgree with you Vindya. The motivational-hygiene model states that employee motivation is achieved when employees are faced with challenging but enjoyable work where one can achieve, grow, and demonstrate responsibility and advance in the organisation. That is, when the employees’ efforts are recognized, it brings about job satisfaction and motivation (Dartey-Baah & Amoako, 2011).
ReplyDeleteThank you for the feedback Chamara. exactly, according to Herzberg, motivating factors (also called satisfiers) are primarily intrinsic job elements that lead to satisfaction, such as achievement, recognition, the (nature of) work itself, responsibility, advancement, and growth (Sledge & Coppage, 2008).
DeleteDefinitely Vindya, many researchers have used Herzberg’s motivation-hygiene theory to explore relation of motivation and hygiene factors to job satisfaction. Employee job satisfaction is a prominent element in employee retention. If an organization succeed in implementing an effective retention strategy, the employees will be satisfied and motivated and will promote supportive working environment to retain experienced employees (Clayton , 2018).
ReplyDeleteThank you Oshadee. Certainly, the bottom line is that by focusing on employee retention, organizations will retain talented and motivated employees who truly want to be a part of the company and who are focused on contributing to the organization's overall success (Florentine, 2019).
DeleteAgreed with you Vindya, The implication for organizations to use this theory is that meeting employees’ extrinsic or hygiene factors will only prevent employees from becoming actively dissatisfied but will not motivate them to contribute additional effort toward better performance. To motivate employees, organizations should focus on supplying intrinsic or motivation factors (Yusoff, et al., 2013).
ReplyDeleteThank you Sachith. Further, the Two-Factor theory implies that the managers must stress upon guaranteeing the adequacy of the hygiene factors to avoid employee dissatisfaction. Also, the managers must make sure that the work is stimulating and rewarding so that the employees are motivated to work and perform harder and better. This theory emphasize upon job-enrichment so as to motivate the employees. The job must utilize the employee’s skills and competencies to the maximum. Focusing on the motivational factors can improve work-quality (Juneja, 2015).
DeleteYes Vindya,Herzberg’s motivation/hygiene theory interpret as the two-factor theory, Herzberg created his theory based on Motivators and Hygiene factors, the themes of the satisfying incidents called as motivator factors & dissatisfying events called as hygiene factors (Sachau,2007).Hygiene factors avoid dissatisfaction, but they do not lead to satisfaction. They are necessary only to avoid bad feeling at work, motivators are the actual factors that motivate employees at work (Hong & Waheed,2011).
ReplyDeleteThank you Sandun. Totally agree with you that, Hygiene issues, according to Herzberg, cannot motivate employees but can minimize dissatisfaction, if handled properly. In other words, they can only dissatisfy if they are absent or mishandled (Syptak et al., 1999).
DeleteI do agree that retention helps in HR planning and succession planning of organizations (Kamalaveni et al., 2019).
ReplyDeleteHowever, Wan Fauziah et. al. (2013) proves through their research that participants were satisfied with their jobs if both motivators and hygiene factors were improved which contradicts Herzberg's theory which asserts that improving hygiene factors will cause dissatisfaction and only motivators increased job satisfaction. Therefore organizations must be careful when adapting Herzberg's theory as different individuals may perceive factors that improve job satisfaction in a different manner.
Thank you for the good point highlighted Arjun. This process becomes even more complex since the importance of work facets differs as per individual perception. For example, one employee may feel that pay rate is extremely important while another may feel that social relationships are more important. Consequently, this leads to an individual measure of satisfaction or dissatisfaction when expectations are met or not. For example, the job satisfaction of an employee who places extreme importance on pay would be positively impacted if he or she receives a salary within expectation. Conversely, his or her level of pay would minimally impact the job satisfaction of an employee who places little importance on pay (Redmond, 2016).
DeleteYes Indeed! Employee retention is one of the most critical aspects of organizational success. Any business hiring personality must have the expertise, capabilities, and attitude company demands. In the long run, companies want workers who are proficient in handling difficulties and continuing to progress. Hence, companies are willing to have broader possibilities to obtain a competitive advantage while securing the employee retention (Elern, 2009).
ReplyDeleteThank You Harsha. Adding to that, losing an employee is expensive. The process of finding and training a replacement can cost twice as much as your former employee’s salary. Then, once your new hire is properly trained and onboarded, keeping them engaged and loyal is the next challenge (McGrath, 2015).
DeleteAgree with your views. The main concept of this Herzberg’s two-factor theory is the difference between motivation factors and hygiene factors. These two factors that have an effect on job satisfaction are divided into two sets of categories. Hygiene factors are considered less important to job satisfaction than motivation factors. Hygiene factors are related to ‘the need to avoid unpleasantness’. Motivation factors lead to job satisfaction because of ‘the need of the individual for self-growth and self-actualization’ (Alshmemri,M., Shahwan,L.A. and Maude,M., 2017).
ReplyDeleteThank you Wasantha. Adding to what you said, according EMP (2018), the two factors identified by Herzberg are motivators and hygiene factors;
Delete1. Motivating Factors
The presence of motivators causes employees to work harder. They are found within the actual job itself.
2. Hygiene Factors
The absence of hygiene factors will cause employees to work less hard. Hygiene factors are not present in the actual job itself but surround the job .
Agreed with you and adding that, The two-factor theory speaks on the factors related to an employee that will either leads to the satisfaction of the employee or dissatisfaction of the employee (Baah and Amoako, 2011).
ReplyDeleteThank you Eranda. As I mentioned earlier also, on the other hand, one of the most interesting results of Herzberg’s studies was the implication that the opposite of satisfaction is not dissatisfaction. Herzberg believed that proper management of hygiene factors could prevent employee dissatisfaction, but that these factors could not serve as a source of satisfaction or motivation (Juneja, 2015).
Delete