Why The Employee Retention Is Important - Apparel

 Why The Employee Retention Is Important -Apparel

 

(Academy to innovate HR, 2021) 

 Employee retention has become a highly discuss subject in today's business world for mere reason, employee are the assert of an organization and bring value to the organization.  Human skill, knowledge ,innovations, initiatives are few factors which play a major role for the apparel industry growth. According to the study (Nishanth et al, 2018, p.1)  "It's miles crucial for any business organization to enforce worker retention strategies to manage employee turnover efficiently". Apparel manufacturing is mainly human oriented and the skilled work force is an essential factor for many reasons.

How Worker retention Impact on an organization

    i)  Profitability of the company -  Every company has it's own structure with budgeted head count. Out of which direct head count is higher than the indirect head count. Direct head count is the worker category which earn money for the organization while indirect workforce added value to the processes. High retention of experience and skilled work force always make money to the company as well as it is benefitted for them too. On the other hand low retention of experienced and skilled work force pull down the company performance as well as profitability 

    ii) Maintain standard quality level - First Time Right Quality is very much important term in apparel manufacturing. One of the main KPI the organization is rated by customer is FPY (First Pass Yield). Therefore much attention is given and many processes are set to maintain quality standards. The quality of the garment is from needle point itself and the work force who work longer time in the organization clearly know the standard of the customers. So it is heavily recommended to take measures to retain experienced and skilled work force to  maintain the quality standard as per customer required.

    iii) Maintain customer satisfaction - Customers satisfaction is measured under three criteria such as Quality / Quantity / On Time delivery (QQT). Change of workers continuously for processes due employee turnover, directly affect to reduce the customer satisfaction level.

    iv)  Maintain high efficiency - Company revenue and break even  is budgeted base on different efficiency levels. Any efficiency over the base efficiency level, is considered as profit of the company. longer retained experience work force is a key factor to run the company over the base efficiency level. Efficiency is the core relationship between total working minutes and earned working minutes. More the worker retain more the earned minutes produce. 

 

                                                           (Holliday, 2021)

Strategies to Retain workers

According to the article (Emeritus, 2023) it is important to take strategical measures for worker retention because "Replacing an employee costs anywhere from one-third to double their annual salary, according to the Work Institute". Therefore taking measures to keep workforce longer time with the company always benefitted for both company and the employee.

1) Invest on employee personal and career development.- Employees have the ambitions of growing and developing themselves. With the current economical situation, employees are financially weak to afford extra money for their career development. So the employees are happy to continue with  any company willing to invest money or recourses for the career development.

2) Recognize and award for employee achievements - Employee appreciations for achievement stimulates entire workforce to stay with the long term. It is natural expectation of the employees to recognize them as part of the company and appreciate to accept their ideas. Organize mind sharing and creativity competitions to gain their knowledge as well as award the winners to encourage all employees to participate.

3) Re consider the employee benefit - Employees are more keen on their take home salary. Employees tend to continue to work longer with the companies with attractive salary package. Except basic salary, attendance bonus /  incentive / health scheme / skill allowances / free transport / meal allowances are few of the additional benefit that prologue employee retention

4) Flexible working culture - Creating an autonomous working culture is highly important for worker retention. Create the path for employees to freely communicate with management as well as empower employees to make their own decision aligning with company rules / regulations and policies. 

Conclusion        

Prevention of worker turnover is an important factors for the growth of the organization. It is highly challenging to keep employees longer time since apparel workers have more demand. There is high competitions among companies to recruit and retain employees for the growth of the business. Therefore creating fair and pleasant working environment with considerable benefits is important for worker retention.   


Nishanthi et al(2018) A study on retention factors in garment industry. jetir.org[online]. Available at https://www.jetir.org/papers/JETIR1810207.pdf. Accessed on 6th Aug 2023

Emeritus (2023) 14 employee retention strategies for your company 2023. emeritus.org[online]. Available at https://emeritus.org/blog/strategies-for-employee-retention/. Accessed on 7th Aug 2023.

Academy to innovate HR (2021) Employee retention rate. aihr.com[online]. Available at https://www.aihr.com/blog/employee-retention-rate/. Accessed on 7th Aug 2023.

Holliday (2021) 10 benefits of employee retention for business. netsuite.com[online]. Available at https://www.netsuite.com/portal/resource/articles/human-resources/employee-retention-benefits.shtml. Accessed on 7th Aug 2023. 














Comments

  1. E211227_MohamedAugust 7, 2023 at 11:22 AM

    It emphasizes the importance of staff retention to the overall health and prosperity of the business.

    ReplyDelete
  2. Dimuthu Edirisinghe - MBA28August 9, 2023 at 6:48 AM

    Important area in HRM and Theory of Organizational Equilibrium, Maslow's Hierarchy of Needs, Social Exchange Theory and Human Capital Theory are some of important theories which can be applied in HRM to retain employees in the organization.

    ReplyDelete
  3. I U K YaddehigeAugust 12, 2023 at 8:17 PM

    One of the biggest challenges facing the apparel industry today is lack of orders. Therefore, it is imperative to give ready orders at the right time and under good quality. Otherwise, there is a high chance that incoming orders will not be received, A high level of productivity and the availability of highly skilled and trained workers will help to meet those goals. It is a mandatory part of employees who are in this situation to keep themselves retention, and the article does explain well about keeping employees retention.

    ReplyDelete
  4. Lakshani N UlladupitiyeAugust 12, 2023 at 8:38 PM

    Employee retention is a challenging issue for an organization. Moreover, the retention of trained and skilled employees greatly affects the productivity of the organization.This is an important post.

    ReplyDelete
  5. Madara Gamage ( MBA-2023)August 13, 2023 at 7:04 AM

    High turnover rates can be costly for organizations in the apparel industry. The recruitment and training processes for new employees require time, effort, and financial resources. By focusing on employee retention, organizations can reduce turnover costs and allocate those resources towards other important aspects of their business.

    ReplyDelete
  6. Dinesh Chamira WijesinghaAugust 17, 2023 at 1:14 PM

    To improve employee retention, it’s important your company’s policies include measures that focus on both engagement and retention.

    ReplyDelete
  7. Nimantha Wickremasinghe (22087331_MN7234ES)August 18, 2023 at 2:05 AM

    The strategies you have listed here are useful to increase employee retention in organisations to increase profits and customer satisfaction.

    ReplyDelete
  8. kosala RanasingheAugust 18, 2023 at 7:11 AM

    The findings suggest that there is a clear positive and significant association between employment content, career growth, work life balance and job security and useful to managed employee retention.

    ReplyDelete

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