The Importance Of Employee Retention

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Introduction
Employee retention is a critical issue confronting today 's businesses vying for talent as the job market begins to improve. Waiting for a valued employee 's exit interview to discover why he or she chose to leave the company can cause you to miss out on keeping a productive member of your team. It is important to utilize the exit interview to gain helpful information. This information should be used to identify the obstacles related to retention that exist in your organization. Once identified, these obstacles should be addressed before other employees follow suit and leave the organization.
The expenses incurred due to employee turnover are staggering. Depending on the position, estimates can be upwards of 150% of the employee’s
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more than 40 percent of the respondents said they would consider leaving their present employer for another job with the same benefits if that job provided better career development and greater challenges (Smith, 2007). One of the biggest factors for improving employee retention is presenting a clear and present career path. People within your organization need to not only understand there is room to grow, but that efforts will be made from the top down to facilitate that career growth (Palmer, 2012). In order to create loyalty, organizations must think beyond salary and learn out how to get employees to truly care about the business. Having a career development plan in place shows employees that you value them for the work they are able to do now as well as what they might be able to offer your organization long-term. Retention management includes offering valued employees a well-defined career path that empowers them and provides logical steps to pursue advancement (Palmer 2012). A career development plan strengthens the connection between the employees and the company. An organization must be committed and prepared to offer a variety of developmental experiences to top talent. Managers should be trained in talent development and retention and be provided with the resources necessary to identify and develop high-potential individuals (Scott, 2003). They will need to be able to offer creative career development opportunities that are a part of …show more content…
Employers should encourage their employees to identify career opportunities internally. If an employee perceives no future within the organization, he or she will be vulnerable to enticing external opportunities (Neault and Pickerell, 2010). Instead of risking the loss of valuable intellectual capital by having good employees leave because they see no future, a company should use career management strategies to build employee engagement. Fully engaged employees contribute to building morale, increasing productivity and most importantly to employee

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