Employee Retention and Retention Strategies

Figure 01: Employee Retention (hrmpractice.com, 2017)


What Is Employee Retention?

Employee retention is described as an organization's capacity to prevent employee turnover, or the number of employees who quit their work, either voluntarily or involuntarily, within a given period of time. (Holliday, 2021)

Why Is Employee Retention Important In HR?

Employee retention can save a company's productivity. Workplaces with high retention rates tend to employ more engaged employees, who get more done as a result. Engaged employees are more likely to improve customer relationships, and teams that have had time to gel are also more productive. (Holliday, 2021)

Benefits of Employee Retention

Figure 02: 10 Benefits of Employee Retention (Holliday, 2022)

Strategies to Improve Employee Retention

Hire StrategicallyInvesting in the right hires from the start is critical to ensuring that your recruiting and training investments aren't squandered. Indeed, bad hiring decisions account for 80% of all turnover. You don't want to invest in a new employee only to have them leave after a few months. To avoid misalignment of skills and roles, explain your expectations for the position clearly. During the interview, be on the lookout for potential mismatches in experience and culture. (Paulsen, 2021)

Improve the onboarding experienceEffective onboarding is a critical component of employee retention. Indeed, 40% of employees who do not receive adequate training leave their jobs within a year. Onboarding entails more than just giving employees a tour of the office or training them for a few days. Onboarding should be a year-long process that accomplishes several objectives. Effective onboarding builds on a positive first impression, establishes clear expectations, clarifies policies and benefits, and integrates new employees into the company culture. It also connects new hires with existing team members and allows for long-term planning. (Paulsen, 2021)

Leverage feedback from top to bottom - At all levels of your organization, employee input fosters progress. Employees learn what they are doing well and where they may improve when they receive feedback on a regular basis. Employees are less likely to feel left in the dark when their leaders are transparent, and this reduces the chance of turnover. Additionally, as students progress, the quality of their work will improve. Employees should also be able to provide feedback through a channel set up by their bosses. This aids businesses in their efforts to assist and care for their personnel. To reduce staff turnover, practice active listening, schedule regular 1-on-1 meetings, and use employee surveys. (Paulsen, 2021)

Prioritize recognition Utilize recognition techniques that make your staff feel valued to retain top talent. This is critical since nearly two-thirds of employees would quit if they didn't feel valued by their manager. Employees who are constantly recognized feel competent and appreciated, making them less likely to look for work elsewhere. (Paulsen, 2021)

Drive employee growthGiving employees opportunities for growth and development is an excellent way to reduce turnover. According to our research, only 38% of departing employees saw professional growth and career development opportunities for themselves at their organizations. Reduce retention risks by encouraging long-term goal setting, providing coaching and mentoring, and leveraging internal hires whenever possible. Prioritize consistent growth conversations with your employees and be open about available opportunities. (Paulsen, 2021)

Uncover insights from exit surveysEmployee turnover is sometimes unavoidable. Fortunately, you can learn a lot from employees who have decided to leave. Exit surveys can help you get direct feedback from departing employees. Inquire about their reasons for leaving and any suggestions for improvement. This allows you to improve the employee experience for those who stay with your company. (Paulsen, 2021)

The Bottom Line

Employee retention is a big problem for many businesses; successful organizations must understand the necessity of retaining their most productive employees. High turnover results in the loss of valuable employees, who must be replaced at a high cost.

(https://www.youtube.com/watch?v=jbT-KrrXkYQ)

References

Holliday (2021) What Is Employee Retention? Benefits, Tips & Metrics [Online] 
Available at: https://www.netsuite.com/portal/resource/articles/human-resources/employee-retention.shtml?mc24943=v2
[Accessed 29 April 2022]

Paulsen (2021) Why Employee Retention is Important [Online]
Available at: https://www.quantumworkplace.com/future-of-work/why-employee-retention-is-important
[Accessed 29 April 2022]

YouTube (2018) Employee Retention [Online]
Available at: https://www.youtube.com/watch?v=jbT-KrrXkYQ
[Accessed 29 April 2022]




Comments

  1. As discussed, employee retention is most important in maintaining organisational performance. Workplaces with a high retention rate tend to have more engaged employees who, in turn will have higher productivity. High turnover have many costs such as financial costs, employee demotivation and loss of productivity. Good article Jaliya!

    ReplyDelete
  2. Human resources are critical to an organization's success, and high labor turnover is a major challenge that businesses face today. This is a contemporary article that explains the concept of staff retention quite effectively.

    ReplyDelete
  3. As you mentioned in this article Employee retention that is effective might save a company from losing productivity. Nice piece of writing Jaliya. Good Luck!

    ReplyDelete
  4. Employees that are more engaged are more productive, and workplaces with a high retention rate are more likely to have them. Financial costs, staff demotivation, and productivity loss are all associated with high turnover. You have explained well regarding (Jaliya Rajaguru)
    Employee Retention and Retention Strategies. Good one!!!

    ReplyDelete
  5. The best retention process is to treat well and to take care well when the employees are still remaining and not after saying that they are leaving. Because when the employees are well looked after they will treat the clients well for the betterment of the company. Perfectly described good job

    ReplyDelete
  6. you have described a very essential topic here & Effective employee retention can save an organization from productivity losses. employees are the human asset in the company, and the HR department should serve them & as well as it will directly increase the cost of the organization.
    you clearly describe how to control & reduce employee retention. Good luck!!

    ReplyDelete
  7. Retaining top talent is a big challenge today. To retain them understanding of their expectation is needed. Article clearly showcase the importance of the HRM in achieving this. Good luck.

    ReplyDelete
  8. It's nice to see the valuable feedback given by you all. Thank you.

    ReplyDelete

Post a Comment

Popular posts from this blog

Know Your Employee

Future of Human Resource Management

Key Performance Indicators (KPIs)