Incentive Program for Retention of Employees Research Proposal

Incentive Program for Retention of Employees - Research Proposal Example Replacing a staff worker is apparently costly; on top of that, a company’s reputation is also threatened. As it is, nobody feels self-assured when dealing with a business firm that is incapable of keeping their employees intact. It implies volatility, mediocre management and lack of effectual planning. Notwithstanding the reasons why a worker leaves his/her job, more often than not the employee departs with a sour taste in their mouth. Such reaction and sensitivity are taken with them – together with the skills they learned and accumulated and these sentiments are frequently repeated to future employers and within their personal network. Evidently, losing knowledgeable and competent individuals can smash up a company’s reputation for years to come. Finally, continuous high turnover generates strife and psychological instability within a workforce, for one, positions made vacant create bigger workloads for other staff workers, workloads which are usually outside o f their position profiles or job descriptions. This sense of shakiness and aggravation can trigger work log jams which correspondingly slow down productivity. More importantly, workers’ lack of faith in an organization increases when they see their co-workers depart and such will definitely influence productivity work levels in implausibly depressing ways (Lake, 2000, pp. 65-72; Smith, 2000, p. 22). There is a considerable economic effect when an organization loses any of its vital workers, especially with the knowledge that is lost with the employee’s departure. It will become notably more important in the years ahead to be aware of the commitment of individuals to an organization, as well as the organization’s need to produce an environment where one would be willing to stay. In essence, it is imperative for organizations to either create an intellectual capital environment where the diffusion of knowledge come about right through the system or keep on losing significant individual knowledge that has been built up during the length of service.