Employee Retention

 Why Important Employee Retention.......

What is the meaning of employee retention?

Employee retention is defined as an organization’s ability to hold on to its employees. It refers to the strategies an organization develops to mitigate employee turnover risks and the processes it puts in place to increase retention of top talent.                       

Benefits of Employee Retention

# Cost reduction.

# Recruitment and training efficiency.

# Increased productivity

# Improved employee morale

# Experienced employees

# Better customer experience.

# Improved employee satisfaction and experience.

 

What Causes High Employee Turnover?                                                 What makes workers want to leave a company? The exact causes of employee turnover vary, but often fall into the following categories:

• Personal reasons. 
• Work-life balance. 
• Incompatibility. 
• Work relationships. 
• Lack of opportunity. 
• Financial reasons. 

What Happens When Businesses Have High Employee Turnover?

A certain amount of turnover will always exist in an organization, and some may be beneficial as it makes way for new talent. Industries that tend to employ many first-time, part-time, seasonal and student workers are naturally prone to extreme or fluctuating attrition.

However, high turnover takes a toll. Companies with higher turnover lose what they’ve invested in recruiting, onboarding, and training employees who leave. For those remaining, morale and quality of work can take a hit. In addition, organizations that experience higher attrition must focus more attention on replacing talent and addressing issues related to lost productivity, burnout among employees who pick up the slack and decreased employee engagement. Those negative effects can lead to even greater turnover and hinder the company’s overall success.

Employee Retention Models

Over the years, researchers have developed a number of models seeking to explain job satisfaction. Rooted in psychology, these models have influenced HR’s approach to employee retention over the years. They include:

The Hierarchy of Needs. 

Motivation-Hygiene Theory.

Human Motivation Theory. 

Job Characteristics Model

How to Improve Employee Retention

Improving employee retention begins with hiring the right person. This requires defining the job itself responsibilities, required skills, work environment and developing a fine-tuned job description that attracts appropriate candidates.

Once an organization has chosen a new hire, orientation and onboarding are key to making them feel welcome. A well-planned and organized onboarding program has been shown to increase employee retention, engagement and commitment. In addition, competitive compensation and employee benefits are important not only for recruiting the best and brightest, but also for keeping them. So are competitive bonuses, paid time off, health benefits and retirement plans

Measuring & Monitoring Employee Retention

Measuring employee retention starts with tracking turnover and annual retention rates. But the most successful employee retention programs collect and analyze a wide range of data, including employee satisfaction and engagement, more nuanced retention and turnover information, and other issues like absenteeism. These measures offer a more detailed understanding of employee retention, which can be used to inform recruiting and hiring strategies, address cultural and management issues, and improve employee satisfaction and engagement. Examining these retention metrics from a variety of angles also enables the business to focus its retention efforts on top talent.

Reference

Marc Holliday | Sr. Product Marketing Manager March 9, 2021

https://www.netsuite.com/portal/resource/articles/human-resources/employee-retention.shtml