Some businesses overlook staff retention until increased turnover compels them to take the issue more seriously. Visionary establishments, on the other hand, genuinely recognise the value of retaining their employees, since it achieves far greater goals than simply solving attrition issues.
This article lets us understand how employee retention can strengthen your organisation from its core.
Understanding employee retention
Employee retention essentially refers to an organisation’s ability to retain its workforce over a sustained period. Its effectiveness is usually conveyed through percentages. For instance, an enterprise with a 100 percent annual employee retention rate means that it successfully kept all of its employees during a financial year.
Accordingly, the company’s annual employee turnover rate would be 0 percent. To get to this zero-employee turnover rate, is a humongous task.
Employee retention is not just a key HR strategy, but something that creates an impact on the business side. Employee retention is a key aspect of overlap for HR and Business as a function.
Why is employee retention important for businesses?
The retention of a motivated and well-trained employee is essential for any organisation’s success. A high annual employee turnover rate significantly increases expenses while negatively impacting the workforce’s morale. As they say, happy employees are the most engaged ones and vice versa.
If an organisation can retain their longest serving employees for even longer and convert the job-hoppers into being streamlined, long-standing resources it is a win-win for them.
The introduction and implementation of an employee retention programme effectively ensures the continued employment of crucial workforce members, allowing companies to sustainably maintain productivity and performance levels.
However, there are several other reasons why companies should turn their attention towards upping their employee retention efforts. Let us explore them in detail –
Increased employee loyalty and productivity
When employees are adequately valued and supported by their employers, they are likely to align themselves to their company’s goals. Finding unique solutions that ensure employees stick around longer can also improve loyalty, since long-serving personnel invest more effort and time into their work.
A loyal workforce also translates to greater productivity within the organisation. For instance, employees who genuinely care about the company’s well-being may naturally be inclined to complete their work quickly and transparently.
This endeavor can be achieved not only by employee engagement programs but also by introducing newer technology interventions in facilitating a seamless and hassle-free employee experience.
Diminished hiring expenses
Acquiring fresh talent is often an expensive affair. Companies have to undertake numerous investments such as hiring credible recruiters, training, and handing out sign-on bonuses, among several others.
By keeping their workforce largely intact, organisations can easily limit their expenditures. These significant savings can be re-invested into their current staff, rewarding them with pay raises, incentives, or perhaps a well-deserved vacation.
Enrichment of company culture and morale
A company’s work culture is deemed positive if its employees decide to stay instead of leaving. Achieving a high retention rate improves the morale of the workforce, while preserving core values, ethics, and vital processes within the organisation.
The projection of a positive company culture benefits employees and employers who experience improved customer relations and better brand reputation.
A highly competent workforce
Employees who have been at an organisation for a significant period understand the company’s organisational procedures and nuances in a manner that fresh hires cannot replicate. Additionally, the longer an employee stays, their dedication to their employer continually grows, driving growth and revenue generation.
By according your employees adequate time and opportunities to develop, enterprises can unlock an individual’s true potential. Organisations can also steal a march on their competitors by attracting the best talent in the market, owing to their high retention rates, well-appreciated work culture, and overall goodwill.
Regardless of industries, employee retention should be a significant priority for any business. However, there is much more to employee retention than just increasing wages. Employees also wish to obtain ample opportunities to expand their career while enjoying a fulfilling work-life balance.
It is always beneficial for organisations if they provide upskilling and reskilling opportunities to their employees. As an employer, you would need to formulate a comprehensive and well-balanced employee retention plan to make your people feel respected, trusted, and fairly compensated for their unparalleled service and valuable time.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YS.)