The problem of employee turnover exists everywhere in the world. According to LinkedIn, Companies lose 18% of their workforce to turnover each year, on average 12% of this is voluntary, and 6% is involuntary (layoffs, terminations, etc.)
Organizations suffer high costs due to employee turnover, direct and indirect costs such as hiring costs, opportunity costs, training costs, real recruitment costs – advertising, travel, and time for interviews, as well as costs for background checks and so on. And leaving jobs on the employees' part is backed up by many reasons. Not everyone who exists has the same objective.
To understand the scenario better, FroxJob initiated how HR has been carried out and its challenges to experts in the industry.
Mr. Arun Dhungana
Assistant Manager - Human Resources
Infrastructure Leasing and Construction Services Pvt. Ltd
On Employee Retention
1. What do you think about Employee Retention?
Employee retention is the overarching concept of retaining skilled individuals and reducing turnover by building a favourable work environment to boost engagement, expressing appreciation to employees, providing competitive compensation and benefits, and promoting a healthy work-life balance.
When it comes to employee retention, there are several aspects to consider. First, the whole cost of turnover to the organization must be considered. This might include the costs of hiring and training new staff, as well as the productivity loss that can occur when key team members leave. Furthermore, employee retention can boost corporate morale because happy and engaged employees are more likely to stay. Finally, organizations with strong employee retention rates may be perceived as more appealing to prospective new workers, which can aid in attracting top talent.
2. Why Does Employee Retention Matter?
Employee retention is essential considering that it is expensive to hire personnel. The expense of recruiting, hiring, and training new personnel might be prohibitively expensive. Furthermore, high turnover might have a detrimental impact on morale and production.
Employee retention is critical because it guarantees that the proper people are working for your company and that it can continue to operate efficiently. Employee turnover can have a detrimental impact on a company's productivity, morale, and financial stability.
Furthermore, individuals that are kept are more likely to be productive and dedicated to their jobs. This can lead to better worker morale and productivity, which can lead to increased revenue and profitability for the organization.
3. Do you think it is challenging?
Yes, I believe that employee retention is difficult because there is always competition for top talent. With the current state of the economy, many businesses must compete for top personnel, which can be difficult. Employee retention can be difficult because it is crucial that you keep your employees happy and motivated. It's also critical to keep them motivated and productive so they can continue to contribute to your organization. This is due to the fact that a variety of factors, including as economic situations, changes in the company's operations, and the individual employee's work preferences and personality, can all have an impact on employee retention.
4. How are you managing it?
There is no one-size-fits-all answer to this subject because the ideal strategy to manage employee retention varies from organization to organization. Creating a happy work atmosphere, delivering competitive benefits and salary packages, and investing in employee development are some recommendations on how to manage staff retention effectively. We presently use a mix of onboarding programs, employee surveys, and retention bonuses.
5. How can one sharpen up employee retention plans?
There is no one answer to this question as every company will have different needs and strategies when it comes to employee retention. However, some tips that may help include creating a positive work environment, providing training and development opportunities, offering competitive salaries and benefits, and ensuring that there is clear and open communication between managers and employees.
Examine what is important to the organization and consider improvements that may be done to help retain personnel as one method to strengthen employee retention goals. Another strategy to keep employees is to develop a plan that satisfies their needs while also providing adequate benefits to keep them safe and healthy.
There is no one right way to do things with employee retention plans, but suffice it to say that creating a system that is easily achievable, manageable, and desirable walks you in the right direction.