Updated: Oct 3
Happy employees equate to better productivity, results, and efficiency for your business. Retention is equally beneficial to employees as it is for employers. With a great retention plan employees can find growth within an organization. They can also learn a variety of roles within and across their field and area of interest.
The best way to establish a unified organization is to find the benefits for both the employer and employee in terms of long-term success and professional happiness. So what is employee retention and why it is important? Companies that invest in strong candidate experiences improve the overall quality of new hires by 70%. Employee retention is the ability of an organization to retain employees. It saves businesses money and time. According to the Society of Human Resources Management (SHRM), it is more efficient to retain productive employees than to recruit, train and replace quality employees.
To further understand employee retention, it is also important to know another HR term, employee turnover, which is the loss of talent in the workforce over time. There are many reasons and factors that contribute to employee turnover. As well, an important distinction for turnover is that it can be voluntary or involuntary. Voluntary turnover takes place when the initiation comes from the employee. An example of this is an employee quitting their current position to take on another one. Involuntary turnover is instigated by the employer. An example of this type of turnover is when a company lets an employee go due to restructuring or poor performance. Pay and benefits are the most known factors, however, company culture, lack of growth, and treatment of employees play a major role as well.
Next, we will go on to discuss best ways to ensure employee retention. Let's dive in, shall we?
Make Sure Your Employees Feel Valued
Employees will stay much longer at a company if they feel that their efforts are being valued.
Studies show that 69% of employees would work harder if they were recognized and appreciated more. The strategies can range from offering bonuses to simply sending an email telling the employees how grateful you are for them and their determination for getting an important project done.
Positive words can go a long way. If your employees are happy, your customers will be happy too.
Pay Attention to Company Culture
This is an important facto