How to Become an Employer of Choice

Published by MBA Skool Team, Published on July 22, 2013

There are various parameters on which a company or its HR professionals need to focus to become an employees’ choice company. Though employees are offered lucrative salaries, employee-friendly human resources policies, very best technologies, and trips to abroad for training, and spanking new offices yet they leave. And when people leave, they take with them- knowledge, experience and contacts, straight to the competitor, thus it’s quite essential for organisations to attract and retain their talent. Apart from these materialistic things there are other various aspects an employer should focus upon.

Some Do’s for an HR/Company

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Trust: Company and senior management must deliver the promises it makes to the employees. Honesty and open in house communication with employees will increase the trust between both the parties. Companies must ensure fair treatment and compensation else it creates lack of trust and confidence towards senior leaders.

Belief and Hope: Management must have belief in their employees and give them certain rights and freedom to work. This helps employees to grow and develop their skills. It also enhances their opportunities for advancement and career progress.

Rewards & Recognition: Organisation must help employees so that they can feel a sense of worth. Appropriate rewards and recognition mechanism imbibes a sense of confidence in employees that their hard work, commitment and meaningful contributions, will be acknowledged and rewarded accordingly. Feeling de-valued and unrecognised will just reduce their performance. System of rewards and incentives needs to be equitable across employees.

Make employees feel competent: Understanding the qualifications of the employees and assigning them jobs that match or align to their talent makes them feel competent. Employees challenges and force themselves to perform better as now they are working in their specialisation area.

Growth and Advancement Opportunities: Mutual relationship is required between both the parties. Companies should have strong, clear and defined career paths for their employees so that employees can align their career/long term goals and objectives with company’s goals. This also keeps employees away from striving for opportunities in other organisations. Companies can offer distance learning opportunity to their employees. It's critical to effectively structure incentives to foster collaboration across individuals and division in the company as to align the metrics of individual with the company goals. Performance appraisal is the part of career development. Two popular methods of performance appraisal i.e. MBO and 360 degree appraisal method can be used for fair promotion of employees.

Stress from overwork: Making fun work Increases enthusiasm, communication b/w employees, friendship and reduces stress, boredom, and anxiety. Celebrating birthdays, bringing child to work days, short brakes for football, Ping-Pong, pool table, corridor cricket, celebrating events, and homecoming- business leaders visit homes of employee reduces stress of the employees.

Work-life imbalance and setting goals: For proper work life balance managers and employees must agree to certain objectives. There must be specific, achievable, realistic and time specific targets for employees which not overburden them. Setting goals is the first step in turning invisibles into visible but it should not be hairy audacious goals otherwise it will overshoot the performance and it imbalances work-life ratio.

Benefits: Benefits like flexible work policy - ability to set their own work hours, work away from office. It has been found that employees perform better when they are allowed to work from home., Apart from that proper leave mechanism-Paid sick leave, maternity leave, Parental leave, Sabbatical-13 week at regular pay and 26 week off at half pay, 50/52 plan, where 2 weeks off in 52 weeks for every employee helps a company to maintain its first choice for employees.

Skills Management and Cross Training: Skills management helps to understand and develop people and their skills. It helps in analysing gap between skill set and skill set required to perform the job efficiently. Cross training increases productivity, as employees can work for each other, and in different fields.

Poor Organization Culture: Many times employees leave the organisation due to poor organisation culture. Culture is much diversified term. There can be three major examples of poor culture. First when there is no group activity or interaction between employees or no unison between employees. Second women are not respected or given their rights. Third is lack of proper working condition which often overlooked can be a very important factor. Better working conditions lead to lower recruitment costs, higher retention rates and greater firm reputation.

Role Clarity: If the role of an employee is not clear and surrounded with lot of ambiguity, he gets frustrated and leaves the company. It’s very essential that an employee must know what company is expecting from him. Instead of keeping employee in confusion, companies must clearly define their roles and targets they need to achieve.

Lack of proper level of hierarchy: There are two reasons why this parameter should be considered. First reason is an employee doesn’t know whom to report. Every single time he gets different views and feedback of his work which creates confusion in his mind. Another reason is his motivation level. If there is lack of proper level of hierarchy or no proper promotion criterions it will force him to not perform better or de-motivate him to give his best.

Immediate Boss/Superior: A manager has to be mentor, trainer, and motivator. Today more of a manager has to be leader than manager who solves problems on his own. The camaraderie and bond has to be strong between employees and manager. To motivate employees every manager has to take out HR manager in himself. As a manager works more closely with the employees it is easier for him/her to understand them. Manager/Superior is the reason people stay and thrive in an organization. And he’s the reason why people leave. Different managers can stress out employees in different ways - by being too controlling, pushy and critical. When this goes on too long, an employee may quit - often over a trivial issue.

Dealing with Employees: A research says that there are seven levels in which an employee can exist. It talks about autistic behaviour, animistic existence, awakening and freight, aggression and power, Socio-centric attitude, aggressive individual and Pacifist Individual. Managers should deal with and behave in the same psychology in the level which employees are present. They should behave in same psychology in which level they are present otherwise it leads to deteriorating work standards. A research says that of all the abuses, humiliation is the most intolerable and many a times it is the reason for their leaving of organisation.

These are measurable things corporate executives/HR can do to attract best people and become an employer choice company.

This article has been authored by Jayesh Hariyani from NMIMS Mumbai


1. Premji, Azim.” Why Employees Leave Organizations?”. -1976445.S.75678926. October 16, 2011 (May22, 2013)

2. Roig, Tony.”THE OPPORTUNITTY COST OF TURNOVER”. (June 1, 2013)

3. Hariyani, jayesh.” People Organization-employee success is the key to company success”. Jan 2, 2013(June 2, 2013)


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