Employee retention strategies in a Multi-National Cooperation

Just like in any business model, employee turnover is a major issue for Multinational Corporations (MNCs) as well. Even though MNCs are well established organizations, employees tend to leave due to low salaries, No career growth, work life balance, organizations culture etc. (Johnson, 2022)

This article aims to explore how some MNCs apply certain employee retention strategies, to ensure that their turnover rates remain minimal.

What is a Multinatiownal Corporations?

In simpler terms a company that operates in its based country and has operations in other countries around the world. These operations around other countries are being carried out in the form of offices, factories facilities etc.  Multinational Cooperation (MNC's) are also being referred to as Global Enterprises, Activities for these companies are controlled by the parent company. High turnover, many assets, aggressive marketing are some of the main features of Multinational Companies.

Retention strategies used by some well-known MNCs.

1. Netflix – Treating employees as adults

  • Unlimited holiday policies, where employees can decide how many days of vacation they want to take, and when. This policy has enabled Netflix to build a culture of trust and balance, where the employees also have a healthy work-life integration, freedom, and higher job satisfaction. (Coker, 2023)

2. Big Spaceship – Never look down on fun.

  • Big Spaceship strongly encourages employees to interact directly with each other and perform team rituals.

  • Allows employees to bring pet dogs to the office premises, which are proven to decrease stress and improve happiness. 

  • Encouraging employees to leave the workstation and out of the office because sitting all day is proven unhealthy and reduces productivity. These practices create a culture of healthy work-life balance, which in turn facilitates higher job satisfaction and retention.

3. Hyatt – Listen


  • Utilizing the “Change the Conversation'' approach based on principles developed by the Stanford School of Design. Hyatt trusts its employees to find creative solutions to solve their problems and tasks, and even make employees a reference source for recruiting new employees / leaders through the Employee Referral Program.

4. Ericsson – Flexible working time

  • Flexible working hours.
  • Work from home options.
  • Ability to work part-time.

5. DreamWorks Animation – Rewards for employees

  • Provides award-winning opportunities to decorate workspaces and corporate festivals every time after a big project is completed. Through this award, the company supports its employees to eliminate fatigue, tighten the atmosphere while showing off their work performance to other employees.
Some of the examples above show that each company has the freedom and the opportunity to adopt retention strategies that suit their work, mission, and the talent they hire. It’s all about being creative and keeping the productivity of your employees at heart.

List of References:

Johnson, J. (2022) Top reasons why employees quit, US chamber. Available at: https://www.uschamber.com/co/run/human-resources/top-reasons-why-employees-quit (Accessed: 01 April 2024).

Multinational companies or Corporations (MNC): List, features (2019) Toppr. Available at: https://www.toppr.com/guides/business-environment/scales-of-business/multinational-corporations-mnc/ (Accessed: 01 April 2024).

Pertiwi, P. (2018) 5 global companies with successful employee retention strategies, Integrity Asia. Available at: https://integrity-asia.com/blog/2018/03/27/5-global-companies-successful-employee-retention-strategies/ (Accessed: 02 April 2024).

Coker, D. (2023) Redefining success through radical HR innovation, The HR Digest. Available at: https://www.thehrdigest.com/redefining-success-through-radical-hr-innovation/#:~:text=Boasting%20a%20remarkable%20employee%20retention,propelled%20them%20to%20new%20heights (Accessed: 03 April 2024).


Comments

  1. Amesha J ColinsApril 3, 2024 at 10:27 AM

    It's a nice Blog! Yes, I agree that Work-from-home options during unpredictable situations are mandatory. It enables the individual to engage in more work-motivated sessions.

    ReplyDelete
    Replies
    1. Yasasvi SalgadoApril 9, 2024 at 10:52 PM

      This comment has been removed by the author.

      Delete
    2. Yasasvi SalgadoApril 9, 2024 at 10:59 PM

      Thanks, Amesha, The Pandemic showed the importance of remote/ Hybrid working and how well it impacted work-life balance, Most MNCs are following these methods, and we can see positive results. I suppose it's high time that it becomes a normal practice for any organization.

      Delete
  2. Arundathi EgodawatteApril 3, 2024 at 10:28 PM

    Employee retention in MNC - nice blog. Also by prioritizing competitive compensation, career development opportunities, inclusive work environments, effective communication, and work-life balance, MNCs can create a supportive and engaging workplace where employees are motivated to stay and grow.

    ReplyDelete
    Replies
    1. Yasasvi SalgadoApril 10, 2024 at 12:48 AM

      Thanks, Arundathi. There are a lot of Soft HRM principles that Sri Lankan organizations can adopt from these MNCs.

      Delete
  3. Minoshi De SilvaApril 6, 2024 at 7:34 AM

    Thanks for sharing these great strategies! It's impressive to see how these multinational companies are prioritizing their employees' happiness and satisfaction. These simple yet effective approaches show that investing in employees pays off in the long run.

    ReplyDelete

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