Importance of Employee Retention

 



Introduction

It is important for a successful business to be consistent in all aspects, including its employees. Having a high rate of employee retention involves keeping employees in the organisation in the long-term which ultimately results in less resources and time needed to train new employees, while also possessing the loyalty required for successfully running the business (Cooper, 2016).  High staff turnover (implying low employee retention) is a significant HRM issue because a significant amount of company resources, time and money are spent for training new employees to replace those who leave.  

Problems of high staff turnover 

Employee retention is important because high staff turnover brings about a range of issues to business operations.  For instance, there will be slowing down of productivity due to current employees helping out the new staff member added to the team (Birdie, 2021). In addition, there are possibilities of the company losing money and resources as a result of errors which typically arise from new staff.  Above all these concerns the company is faced with, new recruits sometimes quit after a month or so of working, which further aggravates the problem of high staff turnover, thereby signifying the importance of employee retention (Hom, 2019). 

Employee retention strategies  

Having a systematic recruitment and selection process

While hiring the wrong employees would result in them leaving quickly, the company would again have to spend time and resources on hiring them.  Therefore it is important for organisations to have a systematic process for recruitment and selection of all employees (Birdie, 2021).  For instance when screening resumés, individuals who have had multiple jobs within a short period of time depict that they have not found their fit.  Further, it is of essence to place consideration if the potential employees are a match for the company culture.

Encouraging positive work relationships 

When an organisation fosters an office atmosphere which is encouraging positive workplace relations, this largely supports employee retention (Cooper, 2016).  If staff members are not capable of working together as a team and are not connected together, it is more likely that they would have confrontations and not stick together, causing retention rates to increase.  

Keeping communication open

Lacking communication in the organisation is a major reason behind staff turnover (Hom, 2019); having open lines of communication with management, HR, other employees, etc. empowers employees to properly contribute to the business and retain themselves in it.










References

Birdie, A. (2021). Employees and Employers in Service Organisations. Boca Raton: CRC Press.

Cooper, C. (2016). Research Handbook on Employee Turnover. Cheltenham: Edward Elgar. 

Hom, P. (2019). Employee Retention and Turnover: Why Employees Stay or Leave. New York: Springer.


Comments

  1. Janashi Lamahewa18 April 2021 at 09:19

    Author has well explained about the importance of employee retention. No organization can be survived if the top performers quit. To achieve the organization’s vision loyal and dedicated customers are needed. It is essential for the management to retain its valuable employees. To add more value to the article author would have mention about the HR role in employee retention in the organization. According to Juneja, 2020 it is the responsibility of HR to intervene immediately to find out the reasons which prompted the employee to resign and also they should sit with the employee and discuss the issues face to face. The HR along with the respective team leaders must monitor their team member’s performance to ensure whether they are enjoying the work or not. Knowledgeable article to read.

    ReplyDelete
  2. Ruwan Herath19 April 2021 at 03:04

    Competitive salary and benefits, hire the right person at the start, having leaders, not bosses, keep an eye on your managers, Having open door policy, will be few strategies of employee retention with the organization for a longer period.

    ReplyDelete
  3. Asela Fernando14 May 2021 at 00:23

    good rewarding, recognition system

    ReplyDelete

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