It is important for companies to retain the talent they have. If your employees are happy, skilled workers are more likely to stay long term. All employees will also be more motivated and dedicated. It makes sense from a business standpoint to keep the people valuable to the company. High turnover can be costly enough to ruin a company. Building strategies to retain employees allows them to see that your company cares about them. They will be far more likely to stay.
Turnover rates are important
Regularly checking out the employee turnover rates throughout the company is a good way to spot patterns and fix issues within the company. Check the rates for different teams and departments and try to spot upward trends. Remember that turnover incurs huge costs in terms of time and money. Use the payroll system and termination data to build a database for calculating turnover.
Who has the responsibility?
There are actually a number of people who need to retain the employees in the organization. Senior leadership needs to promote a more supportive workplace culture for people with talent. Leading by example and implementing all policy-compliant strategies and actions are essential to the success of the employee retention plan.
Every manager and supervisor is responsible for encouraging their staff to engage and collaborate with each other and with their work. Employees need to contribute to this as well by being friendly towards each other and creating a supportive atmosphere. The HR department is a driving force behind the employee retention plan, because it manages the delivery and implementation of different strategies.
What is the best turnover rate to have?
In general, the turnover rates range from between 2% and 30% per year for typical companies. The ideal rate to have for your company to have “healthy retention” is about 6% to 15% turnover. If it goes higher than this, it might be time to implement some new retention tactics. The ideal turnover rate depends on things like the company size, field and culture.
Factors affecting employee retention
One of the main factors that affect employee retention is the quality of leadership and management. Others include a lack of proper training and development courses for new employees and management officers, the lack of a comprehensive rewards and benefits system from HR, and the lack of career development opportunities for employees. A lack of work flexibility and leave options is also a contributor.
What people look for in an employer
Good recognition of talent and subsequent rewards
Dedicated to the training and development of hires