A lot of people love what they do. There are a lot of reasons why they love their job: perhaps it’s the co-workers, atmosphere… maybe their boss. How can employers make them stay? To ensure the success of an organization, a business must keep its staff loyal and motivated. Growth opportunities, exciting job description, learning and progress are all desirable reasons – they all contribute in making the lives of their employees better.
How is employee retention important?
Helps Employee-Employer Connection
Having a high employee turnover will increase the company expenses and will have a negative impact on the company’s morale. When employee retention strategies are implemented, it will make sure that key staff will stay employed, and at the same time maintain their job performance and productivity.
Companies implement strategies to retain employees so they can manage the employees’ turnover rate. This will also help attract quality employees into their line of work. Retention strategies also focus on the connection between the employees and the management. Benefits, competitive pay, employee assistance programs and employee recognition are all included with a company’s effort to ensure satisfaction of their employees. Human resource staff uses the feedback they gathered from focus group discussions and exit interviews to improve relations with employees and reduce attrition and turnovers.
Helps Boost the Company
Companies can notably gain from employee retention strategies because it affects an employer’s bottom line directly. It’s very expensive for businesses to experience high turnover rates.
When an employee and a company go on separate ways, the employee takes with him valuable knowledge about our organization, your clients, the previous and present projects and the history. Companies spend money and time and treat an employee as an investment, hence when the said employee leaves, the company doesn’t get back its investment.
Studies show that costs for replacing employees can be as much as spending half of an employee’s yearly pay – this cost could have been spent for other more important projects that everybody could benefit from. Retaining employees could also lessen indirect costs such as lost clients and reduced productivity.
Helps Improve Productivity
Retaining employees also help boost an organization’s productivity. Hiring and honing new employees is tedious. A vacant position means there’s work that’s left undone. After the position is filled, there’s still a learning curve that the new employee must overcome before s/he becomes used to it and becomes profitable. On the other hand, if you take steps to ensure your employees happy and satisfied, then no productivity is sacrificed.
Makes a Company Better
When do strategies for employee retention start? This usually happens during the recruitment process. Employees tend to join a company who fulfills its promises when their tenure is extended. Companies that give a realistic view of the promotion opportunities, job expectations and corporate environment can positively influence the chances of employees to stay.
Employees who are happy with what they’re doing tend to stay with their company. More so if they are comfortable with the environment that they work in. These factors play a major part not only in creating a positive work atmosphere but also in making an employee’s commitment to his job stronger.
Clients and customers, on the other hand, conduct business with a certain company partly because of the people. There are developed relationships that encourage these clients to continue their support of the business. When an employee leaves, these relationships get severed which might trigger a customer loss.
Employee retention strategies that focus on employee engagement such as community involvement and team building all increase company morale, and give employees feelings of satisfaction in what they do. A happy employee is a productive and effective employee, hence an employee that is worth keeping.