Employee Retention Is A Critical Issue Confronting Today 's Business
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 annual salary (Vicoli, 2015). Turnover can cost organizations more than just money. There are other less quantifiable costs, such as lowered productivity, lost knowledge and a decrease in employee morale. Understanding management retention is imperative for organizations who wish to sustain a competitive edge.
While some turnover is unavoidable and outside the organization’s control, a solid retention strategy is necessary to maintain key talent within the organization. Everything from recruiting efforts to the benefits package has a direct effect on turnover. Hiring the right employees up front can save a company from expensive turnover in the long run. Employees want to know that they are valued and the company is truly…