Importance Of Employee Retention

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Employee Retention issue : Why it has Turned companies shows that "employee retention" has become a vast issue. some research-based perspectives on this critically important topic. Retention Meaning: All companies measure turnover. In industries (retail, customer service, hospitality) turnover rates of 30-40% are common and sometimes even accepted. one HR manager always design organization around high-turnover: HR Manager sure jobs are easy to learn so we can rapidly assimilate new people. While this may be a reality in many companies, research shows that it's not a sound strategy. Many studies show that the total cost of losing an employee can range from tens of thousands of dollars to 1.5-2X annual salary. • Cost of hiring a new person…show more content…
It simply shows that initially most employees are a "cost" to the organization, and that over time, with the right talent practices, they become more and more valuable. Our job in HR is to attract the "right people" and move them up this curve as rapidly and effectively as possible. Fig 1: Economic Value of an Employee to the Organization over Time (C) Bersin by Deloitte Obviously for HR manager as employees, HR manager this same effect. Early in days in a new job HR manager feel somewhat unproductive and often search for ways to add more value. But in the right environment (onboarding, coaching, training, teamwork) we rapidly "find our place" and start to add more and more value. A New Model to Drive Retention: Your Talent "System" Right now retention has become an important topic for many reasons. The economy is picking up; young employees want more career growth; the work environment in companies has not kept up with the outside world; management doesn't always understand how to motivate younger people; and in developing economies the workforce is simply in great demand and the competition for talent is fierce. Added to this, of course, tools like LinkedIn now make it easier than ever for you to look for a new job (or get…show more content…
Younger folks are motivated by growth, career opportunity, and meaning. Our research several years ago showed that while young people want the same types of benefits and work-life balance as older people, they are particularly focused on fun, collaboration, and the ability to be with others they enjoy. So the prospect of a "career" is more than just advancement (which was the way I was raised). • The work environment matters. We've done lots of research over the years on recognition, engagement, leadership, and management. It all shows clearly that people at work respond through Maslow's Hierarchy of Needs. Once they are "safe" - ie. paid well, they look for more meaningful value at work. Is this work taking advantage of my skills? Do people appreciate me? Is the environment inclusive and diverse so that I feel that I fit? Does this company do work I feel proud

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