Does your organization accept employee voluntary turnover as an inevitable part of doing business? Sadly, government agencies, nonprofit organizations, large and small businesses alike complain about their turnover rates. They completely miss the point by failing to develop employee retention strategies, which minimize that dreaded turnover rate and affects productivity, morale, and operating costs. Is your company making the effort to retain its employees?
According to the Society for Human Resource Management, “it is more efficient to retain a quality employee than to recruit, train, and orient a replacement of the same quality.” What happens when an employee leaves a job? Employee turnover is expensive, and while the position is vacant, productivity is lost along with the knowledge and experience of that individual that cannot be readily replaced. Productivity diminishes among the remaining employees because they must compensate for the loss. The company will have to train a new employee to fill the vacated position requiring time, resources, and attention to acquaint him/her with the new job. When this happens consistently, it affects the morale and productivity of the entire organization and negatively impacts customer perception and satisfaction. How can this challenge be resolved in a time of tight budgets and competition for talented employees? By making employee retention strategy a priority, providing meaningful work, and rewarding employees with benefits that they value, you can attract the right people to the organization.
If you are a hiring manager, ask yourself the following questions:
- What attracts people to your organization?
- Does your organization have a strong reputation and brand image?
- Do you offer adequate compensation and benefits? If not, what can you do to change this?
- Do you have a strong mission, vision, and values statement that inspires employees?
- What do you do to increase the job satisfaction of your employees?
By paying close attention to employees and finding ways to keep, develop, and reward them fully, you show an understanding of the value they bring to the organization. We can help you attract the best talent for your business, so contact us today to discover the benefit of Talent and Management Consulting.
Source: Society of Human Resource Management (2012). Managing for employee retention. Alexandria, VA: SHRM