Employee retention refers to the capacity of an organization to retain its employees and therefore reduce turnover.
What Are Examples of Employee Retention Strategies?
Organizations retain employees by fostering a positive work environment, promoting engagement, showing appreciation, and providing competitive conditions. Common employee retention strategies include:
- Having a strong onboarding process;
- Creating mentorship programs;
- Giving competitive compensation;
- Offering perks such as flexible schedules and additional days off;
- Promoting constructive and positive communication;
- Giving feedback on performance;
- Having a recognition and reward program;
- Fostering strong relationships.
Why Is Employee Retention Important?
Employees are the main driving force of many organizations. Employee retention is therefore crucial to both productivity and efficiency. High employee turnover also has a negative impact on employee motivation and leads to additional expenses.
Common benefits of maintaining high employee retention include:
- Lowering recruitment expenses;
- Improving productivity;
- Maintaining better customer service;
- Improving employee engagement and satisfaction.
What Are the Causes of Low Employee Retention Rates?
Common reasons for low employee retention rates include:
- Lack of career opportunity and growth;
- Highly competitive job market for specialized positions;
- Poor work conditions;
- Inadequate salaries;
- Lack of management leadership.
What Are the 5 Aspects of Employee Retention?
Employee retention primarily revolves around 5 aspects:
- The environment: a positive work environment is beneficial to ensure employee retention;
- The culture: a strong company culture attracts and motivates employees;
- The employee benefits: employees are looking for benefits that go beyond their salary when working for a company;
- The professional development: employers need to support the professional goals of their employees in order to retain them;
- The recognition: proper recognition helps to boost the engagement and happiness of employees.
