True, turnover is unavoidable. Employees leave for a variety of personal reasons beyond the control of an employer – retirement and relocation, for example.
In many instances, however, turnover is the direct result of managerial complacency. Dissatisfied with their roles or their opportunities for advancement, qualified employees depart, leaving employers exposed, and often puzzled by the departure. Without an active retention strategy, complacent employers can expect to incur significant costs from high turnover.
Certainly, the cost of replacing a lost employee is tangible and significant. Advertising, recruitment, sign-on incentives, relocation, and training costs can quickly add up.
But the resulting loss of experience and knowledge can ultimately prove disastrous to an organization.
Delays in projects and the disruption of daily activities can cause months of aggravation for managers and impact business goals, while decreased morale and lost productivity can continue to hamper the efforts of remaining employees indefinitely.
This psychological impact can carry lasting effects, which may ultimately lead to the loss of even more employees.
Given these costs, retention strategies must remain at the forefront of every organization's efforts.
Employee Retention: HR's Responsibility only?
Employee retention strategies may appear to be the responsibility of human resource departments, but managers must share the burden.
Salary increases are rarely sufficient, and improving employee satisfaction requires a focus on the individual needs and drives of each employee.
- Promotion from within employee ranks is often a first start. Greater responsibility can often improve morale. In situations where promotion is unfeasible, roles and functions may be targeted to challenge employees and hold their interest via special projects.
- Training opportunities may also be used to cultivate employee commitment and provide for a well-rounded staff.
The key lies in breaking routine. Employees must be engaged by their work and feel they are receiving a return on their talent.
In a nutshell… Engaging employee interests is key to reducing high rates of attrition.
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