DBA 7553 Human Resource Management
Unit III Case Study – From Turnover to Retention: Managing to Keep Your Workers
Submitted to: Dr. Steven V. Cates
Submitted by: Phillip J. Davenporte II, MBA
Submitted on: April 29, 2014
1. The employee equity model provides value, brand, and retention equity perceptions as important determinants of whether an employee stays with an organization. Do you think that the three components are independent, or do they influence each other? Is this a problem for managing retention with the employee equity model? Why or why not? The employee equity model expresses employee retention as a function of value equity, brand equity, and retention equity. Value equity center’s around the perception of the employment exchange by the employee. Brand equity focuses on the employee’s emotional assessment of the organization’s desirability. Retention equity focuses of employee’s perception of the benefits of staying employed with the organization. As previously stated, all three of these equity perceptions are functions of employee retention, and I am of the opinion that these individual factors influence each other. Employees are motivated to stay with organizations for a variety of reasons. Someone may choose to stay with an organization because they view their organization as being ethical, consumer conscious, and charitable. However, they may not feel that the compensation paid by the organization is aligned with industry standards. Because they are influenced not simply by value equity, but also influenced by brand equity, that employee may choose to stay with an employer. I personally do not feel that these factors influencing each other is a problem for managing retention with the employee equity model, because managers, should be able to leverage the strengths associated with these factors and match them appropriately with their personnel in order to help reduce employee separation. When HR manager match the appropriate employee with the right job placement, this can also help to bolster employee job satisfaction and enforce many of the components of value, brand and retention equity. According to Gomez-Mejia et al., Voluntary separation can be either avoidable or unavoidable. Recent studies show that approximately 80 percent of voluntary separations are avoidable, and many of those are due to staffing mistakes; by investing in quality HRM recruiting, selection, training, and development programs, companies can avoid a poor match between the employee and the job. It is important to remember that employee recruitment and placement may have a significant impact of how the placed employee perceives brand, value, and retention equity.
2. How would you measure value, brand, and retention equity in an organization? How often do you think the three characteristics should be measured? In order to measure the value, brand, and retention equity in an organization, I would use employee surveys to gather information regarding the perception of each individual equity factor by the employees. I would structure a survey to
