Employee retention is the ability of an organization to retain its employees. No doubt, the desire of every organization is to achieve its goals and objectives.
However, the employees of such organization have a vital role to play. Nevertheless, the commitment of the employees of an organization differ, some can be committed to the course while others might not be, hence it is essential for an organization to draw the distinction between the low-performing employees and the top performers.
Hence concrete efforts should be geared towards the retention of the employees that contribute immense values to the organization. Having a good employee retention rate is a task that every organization must strive to attain because it will assist them in talent retention.
Staff turnover is the method of replacing an employee with another one in an organization. In some instances, some organizations do not attach much importance to it.
However, staff turnover is a sign of profound issues that are left unresolved by the management of the organizations which include low employee morale, the absence of clear career-path, lack of recognition, poor employee-manager relationships, and poor working conditions such as the lack of good working tools.
A tool like Sinnaps, project management tool, will enhance the effectiveness and efficiency of the workers because it is very easy to use. Also, it promotes proper planning and teamwork.
Employee Turnover Rate
Furthermore, employee turnover rate is the percentage of employees in a workforce of an organization that leaves over a certain period of time. When an organization has a high employee turnover rate when compared to its rivals, it means the employees of the organization have a shorter average tenure than the other organizations in the same sector, it means that the organization is losing its best talents to its rival companies.
Moreover, high employee turnover is indeed a bad omen for any firm and it is harmful to the growth of the firm if the skilled employees are leaving for another firm. The cost of employee turnover is enormous to an organization, in essence, any time an employer replaces an employee, it usually takes between 6 to 9 months’ salary average.
The cost of employee turnover includes the cost of hiring a new employee (such as the cost of advertising, interviewing, and screening). Cost of training a new employee. Another cost is lost productivity because it will take a new employee some time to attain the productivity of the replaced employee.
Without mincing words, the major reason for high employee turnover rate in major organizations is the lack of satisfaction and commitment to the organization. It is imperative for organizations to ensure the satisfaction of the employees.
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Employee satisfaction is the measure of how the employees are contented with their jobs. Some of the factors of employee satisfaction are compensation, workload, flexibility, how workers are perceived by the management, resources, teamwork, and working conditions.
Employee satisfaction is a virtue that an organization that aims to achieve its goals must hold in high esteem because it will lead to a low employee turnover rate and it will go a long way in her talent retention. Employee satisfaction is a very crucial factor for staff retention; organizations must imbibe the habit of providing the working conditions that will boost the satisfaction of their employees such as providing the tools that will aid them in discharging their responsibilities. A tool like Sinnaps, project management software will help them in planning and executing their duties effectively.
Employee attrition is the reduction in staff and employee in an organization through normal means such as retirement, resignation, termination of contracts or if the management decides to make a position redundant. Organizations can embrace employee attrition as a way of reducing the labour cost. However, it must be used with caution as it can have a negative impact on the remaining employees because it can bring about an increase in their workload.
Also, it can limit promotions within the organizations if some jobs are eliminated deliberately by the management. Employee attrition can contribute to high employee turnover rate if it is not managed properly by the organizations.
The first step of staff retention is enhanced by recruiting employees that will buy into the visions of the organization. An organization will be successful by recruiting the right people into various positions in the organization. After recruitment, the next line of action is the employee orientation. Employee orientation is the process of inducting new employees to the operations of the organization, the introduction of the new employees to the current workers, the technologies, and work environments.
Employee orientation enables new employees to be accustomed to the new organization. Again, it is important for the management to allow the involvement of the employees in the day-to-day running of the organization. Employee involvement is vital for the employees because it will make them have a feeling of being an important part of the organization.
Employee involvement can enhance the loyalty of employees to the organization. No doubt, the desire of every organization is to have their employees’ loyalty because a loyal employee will be very committed to the company and be willing to work for a long time for the organization.
Also, it is important for employers to pay attention to their employees’ attitude because the behaviour of the employees will determine their productivity and contribution to the growth of the organization. An adage says “your attitude will determine your altitude“. Also, employers should strive to obtain the full participation of their employees. Employee participation is important if an organization hopes to achieve its goals.
Employee Retention Plan
The common issue in the minds of most employers is how to retain their employees because having your employees working for you over a long period of time is highly beneficial to the organization because high turnover rates will cost them time and money. As an employer, you need to appraise your current employee turnover rate and if there are needs to improve it. The following steps will assist employers in retaining their staff:
- Employee compensation methods: imbibe the habit of setting performance goals for your workforce and give them incentive bonuses. By doing this, your workers will align their goals to that of the organization thereby making them committed to it and it can spur them to work for a long time for the organization.
- Personal development and growth: everybody likes the jobs that will allow them to grow and develop, if your employees discover that their jobs will make them grow and develop, they will be disposed to working for you over a long period of time. Personal development and growth can be achieved with the use of efficient tools such as Sinnaps.
- Respect your employee: respect is a factor that can be used by employers as an employee retention plan, when you respect your workers, they will feel important and being valued. Hence, they will reciprocate the gesture with their commitment to the organization and this can make them work for you for a long time.
- Embrace recognition: inculcate the habit of rewarding your workers properly for doing their jobs, this can be in the form of recognizing the outstanding employees in front of other staff members, taking them for lunch with the management, and giving them a letter of commendation.
Some of the employee retention techniques and ideas used by the successful and notable organizations like Netflix, the company offers their employees unlimited vacation time and up to a year of paid parental leave. My Maid Services provides each worker with customized career training and free classes at local community colleges while Whole Foods allows their workers to be themselves at their work by not wearing uniforms thereby allowing them to showcase their sense of unique fashion styles.
In reality, it is highly imperative for an organization to have recruitment and retention plans in place that will address and solve the problems of recruitment and retention of the organization. The plan will take time to study and identify the organization’s needs through thorough research and review. It will identify the appropriate recruitment or retention method that will include recruitment, selection, orientation, career development, supervision, recognition, training, and support.
Choosing an appropriate method among them.
Building the recruitment and retention plan or identify the correction action.
When an organization has efficient recruitment and retention plans in place, the task of talent retention becomes easy. An employer must guard against losing her best talents to her rivals in the industry. Hence it is crucial for the management to have a solid employee retention program in place so as to have a low employee turnover rate.
The role that staff retention plays in the fulfillment of the organizational goals cannot be over-emphasized; it is a key factor that allows them to keep their best hands. Employers must ensure the satisfaction of the workers; one way of improving the satisfaction of the workers is by using the right tools to undertake their assignment.
A tool like Sinnaps is very easy to use; it supports teamwork and proper planning. It can be used to share vital information about work among the employees. Again, it can be used to simulate the processes involved in the work. It is cloud-based, hence it will successfully store the recruitment and retention plans of your organization.
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The organizations that integrate the use of Sinnaps in their operations will find the task of retaining their employees very easy.