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Employee retention is maintaining those members of staff that one wants to keep and not to lose them to other organizations, for any reason but especially to competitors according to Sue (2001). In other words, a company needs to have the right people in the right amount with the right skills and abilities in the right place and at the right time. This occurs when an organization plans and utilizes effective recruitment; selection, training, development and retaining of skilled and high performing employees.
A motivated employee becomes satisfied, productive and in most cases stay on with the organization for long according to Sue (2001).
Hence, a major issue to consider in the retention of employees is motivation(Ldama and Bazza 2015). Thus, the ability of a company to success relies on the retention of employees of the company. Organizations that could not able to retain their employees also find that it is so hard to retain their customers and also they are unable to make high profits.
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Although it is very expensive to retain experienced and skilled employees, it is more expensive to let them go. If the organization failed to retain its employees, the organization might face a serious financial issue. Therefore, a source of competitive advantage is retaining valuable employees.
Malaysia's budget airline, Air Asia Berhad, without a "frill" and without a ticket the first in Asia. Many incentives were introduced to encourage more people to use the services of its flights. On 20th December 1993, Air Asia was initially established and started operations on 18th November 1996, which was founded by a Malaysian government conglomerate, DRB-Hicom.
Thus, Air Asia Sdn Bhd is a company limited by shares and limited which was incorporated under the Companies Act 1965. On 12th December 2001, Air Asia has been re-established when the company has to bear the burden of debt that is too high of RM40 million. Hence, it was sold to Tony Fernandes, the founder of Tune Air is priced at a dollar a piece. Tony Fernandes is a business person and founder of "Tune Air Sdn Bhd", which has introduced minimal effort transportation. The company has changed from a limited company to a public company named AirAsia Berhad on 8th June 2004. The slogan that is appropriate to the market segments that focusses on the target group of low-income consumers is Now Everyone Can Fly.
Generally, the aviation industry is divided into two types which are full-service carriers and also low-cost carriers. In 1949, the low-cost concept is introduced by Pacific Southwest Airlines in the United State when the airline launched its first flight in the Pacific Southwest Airline. Now it is one of the low-cost airlines successful at international level. Additionally, the user is free to choose a position in each flight. The intention is to encourage passengers to arrive early in the airplane. The Best New Stock Exchange Listed In (third place) by Euromoney was awarded to Air Asia. Air Asia is also awarded as Leadership in Low Cost or Regional Airline Business Strategy Award 2005 by Airline Business, which was awarded to Dato 'Tony Fernandes.
Reward and recognition are one of the major tools used by an organization to retain the talent of employees. Normally, a reward might be intrinsic or extrinsic, it means either it is in the terms of non-monetary benefits like recognition through an appreciation letter or it might be in form of monetary benefits such as cash or allowances(Nasir and Mahmood 2018). The rewards are used to exert a long-lasting effect on employees. A large number of studies discovered that reward and recognition are essential in order to ret3ain the employees . Besides, the rewards are the tools that can help in making employees committed with the organization and motivate them to perform well with a positive attitude. Any form of appreciation from the supervisor, colleagues, and customer will foster employees' loyalty towards their workplaces (Walker, 2001).
Different types of rewards are offered by different types of organization to its employees. For example awards, bonuses, allowances, free trips, resorts memberships, certificates of recognition etc (Davies, 2001, Silbert,2005). The suggestion that is given by Heathfield [2008] is organizations should prioritize employee recognition to create a positive, productive and innovative organizational climate. Moreover, he also added that people who feel appreciated are more productive about themselves and they are able to contribute to the achievement of organizational goals. Accenture in Ireland conducted a survey about the level of recognition that employees receive for doing a good job at work in 2011, and found that 63% who have no idea of leaving are satisfied with their recognition, while 24% are not satisfied with the recognition of the organizations [Globoforce 2011] Organizations should seek changes to improve their strategies like to eliminate favoritism, recognize more than just the elite, and value employees for more than their work according to the results given.
Current knowledge is basically inadequate to meet up with the dynamic and technical business world in the present ever-changing world. Therefore, it is a major priority of organizations to adopt the skills according to the changing technologies. Most companies take proactive measures for maintaining a reservoir of high technology staff, by continuous training and retraining of their staff for that reason (Ldama and Bazza 2015). The important factor of employees retention in an organization is providing training and job security. Training is positively correlated to retention because the practice can make the employee retain in their jobs. In order to achieve the purpose in an organization, they need to exploit the resources into the training of their staffs so as to be competitive in the near future. The untrained staff has no chance of being promoted and so has a future that is bleak, this makes some employees look for an alternative job where their training is guaranteed. Employees consider training, education, and development as an important part to their overall career growth and goal attainment and will be motivated to remain and build a career path in an organization that offers such opportunity according to Samuel and Chipunza (2008). Moreover, if the training for the staff is fully funded by the organization, the employee may develop a moral responsibility to give its money worth to the organization by the commitment to stay on the job.
Air Asia Company Business. (2019, Aug 20). Retrieved from https://studymoose.com/air-asia-company-business-essay
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