Every industry nowadays experiences a competitive and quick changing labor market. Companies and firms often struggle with many employees who come and go.
It is crucial to understand why the staff leaves not only for the business to continue running but to keep top talents in your team. The efforts to retain employees in the company is beneficial not just in the long run but for the future of the business.
What does “employee retention” really mean?
Employee Retention is defined as an effort made by the company to have their employees stay with them for the longest time. This effort also helps to lessen employee turnover – which brings risks and toll to business performance.
Retention of staff includes strategies that company management develop to understand the following:
- What do employees and staff value in a company and what makes them stay
- The financial impact when an employee stay vs. turnover
- Other areas of improvement in which employees could be happier in the company
Employee retention plays a key role in a Business
Retention of staff plays a key role in any company or firm not only by means of financial assets. Aside from avoiding hiring expenses, employee retention promotes the health and strengthens the success of an organization.
Hiring and training new employees could be stressful – it also brings negative impact to your business financially and lowers the morale of your team.
Retention of staff allows a company to evade the following:
- high costs of recruitment – paying for job ads, making phone calls and email outreach that could often times be ignored
- knowledge loss – this could often happen when a long time employee leaves without having a proper turnover
- low productivity – newly hired staff could take time learning and coping up with the company’s work ethics and share knowledge
Employee Retention plays key role for employees as well
Many employees find it hard to build camaraderie when the workforce keeps on changing.
One of the most important things for employees on why they stay on their job is peers. As years go by in a company, people develop a strong bond that helps to boost business growth. It is almost impossible to achieve this if team members constantly leave the organisation.
The higher and stronger the comradeship is, the better chance of people working together to hit their goals.
Employee retention plays a key role for other employees by:
- Improving the companionability of each team member making them feel that they are part of group
- Allowing a sense of teamwork
- Providing optism for each staff member that aside being colleagues, they could be friends too
- Giving them the impression that a company takes care and manages their team well
Having difficulties on staff retention can be crucial if left ignored. It is important to know how this issue can be solved and ultimately why it is happening. Now that you understand what employee retention truly means, it’s time to see where your company’s current employee retention rate stands, click here to see how to calculate your employee retention rate: Calculating your company’s employee retention rate.
