Essay on Retaining Employees in Small Business - 2056 Words

Abstract Retaining employees is a dilemma for small businesses. Large corporations have resources specifically aimed at keeping their employees while smaller ones do not. Using online resources, we examined the issue of employee retention in small business. We found that the problem stems from different areas, lack of resources, few employees, minimal direction from management. While these issues are a problem, they are not insurmountable. Small businesses need to be innovative and creative in finding ways to keep their employees. Retaining Employees Why would a small business see higher turnover than a larger company? In general, small companies have less official company documentation and standardization with regard to job†¦show more content†¦Ã¢â‚¬Å"From an equity theory perspective, individuals try to find an equitable balance between what they receive from the organization and their own contributions. When employees perceive that their employer has failed to fulfill promised inducements, they may withhold their own designated contributions (Robinson and Morrison 1995). (Kickul, Jill)† Once the employee reduces the effort they put into their job, either one side or the other will sever the relationship shortly thereafter. Kickul again, â€Å"Since the employees felt they could no longer depend on the small firm for its promised inducements, they also tended to have lower feelings of identification with and attachment to their employerâ€Å". Chances are that feelings of attachment are what keep the employee working at a small business. For example, intimate work relationships, sympathy to the â€Å"underdog† mom-and-pop company, personal friendship with an owner, etc. When this feeling of attachment erodes, there is nothing stopping the employee from leaving. It is clear that small businesses would benefit from taking steps to increase employee retention, to stop the migration to larger companies. However, like all endeavors undertaken in a business, there is a cost associated with this action. But what is the cost, and is it worth it to the business to in cur this cost? Many of the suggestions have minimum cost associated with them. For example, theShow MoreRelatedA Report On Kentucky Fried Chicken861 Words   |  4 Pagesview remains very crucial. Employee retention is one of key things that every employer seeks to do. Every employer whether in the US, Europe, Asia or any other part of the world would affirm to that. It is therefore clear that no business can thrive without employees, even the self-employed jobs means that one is an employee to oneself and the moment one seizes to ensure that the job is in good condition, it immediately collapses. 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