Employee retention refers to the ability of an organization to retain its employees. Employee retention can be represented by a simple statistic (for example, a retention rate of 80% usually indicates that an organization kept 80% of its employees in a given period). However, many consider employee retention as relating to the efforts by which employers attempt to retain the employees in their workforce. In this sense, retention becomes the strategies rather than the outcome (Wikipedia).
Successful organizations realize employee retention is crucial to sustaining their leadership and growth in the marketplace. A lot of businesses focus on employee retention when employee turnover starts to increase. But, responsible organizations make employee retention an important component of their talent management and organizational development strategy. The ones that do not make employee retention a priority risk losing their top talented people to the competition.
Employee turnover is a symptom of deeper issues that have not been resolved, which may include low employee morale, absence of a clear career path, lack of recognition, poor employee-manager relationships or many other issues. A lack of job satisfaction and commitment to the organization can also cause an employee to withdraw and begin looking for other opportunities. Pay does not always play as large a role in inducing turnover as is typically believed.
According to a survey carried by the Society of Human Resource Management (SHRM) and the Wall Street Journal website in 2003 on job recovery, 64 percent of respondents said they were extremely likely to begin or increase the intensity of their job search. An additional 19 percent said they were somewhat likely to increase their search.
Employee retention is paramount to the success of any organization. An employer’s goal should be to decrease employee turnover, as a result decrease training costs, recruitment costs and loss of talent and organizational knowledge. A forward thinking employer will always improve retention rates and decrease the associated costs of high turnover. This pays off and allows the organization to achieve steady growth and achieve its target within time limit.
Below are steps that could be taken to checkmate employee turnover in an organization.
5 KEY STEPS TO INCREASING EMPLOYEE RETENTION
- Assess the organization.
- Measure what is important.
- Increase employee ownership and involvement.
- Build relationships and create a positive first impression.
- Devise intervention strategies.