All of the following are important to the retention of great employees, except:
Understanding employee retention risks and implementing strategies to reduce talent attrition rates is a fundamental facet of human capital management — and for good reason. The cost of employee turnover is incredibly high, impacting not only operational costs, but also revenue, productivity, company culture, customer experience and more. Show Despite the detrimental impact that high turnover can have on an organization, many companies nonetheless fail to prioritize employee retention. Those that do invest in improving it, however, see significant returns across a number of critical areas. What Is Employee Retention?Employee retention refers to the strategies and processes an organization develops to keep its top talent and mitigate turnover risks. Employee retention and turnover is a leading workforce management challenge for many organizations and human resources (HR) professionals, creating significant operational costs for employers and compromising their growth and profit. Average employee turnover rates vary by industry, from less than 20% in public-sector roles to more than 60% in professional services and construction, according to the U.S. Bureau of Labor Statistics. Certain sectors that tend to employ many first-time, part-time, seasonal and student workers — such as retail, restaurants and hospitality — are particularly prone to extreme attrition. Individuals leave their employers for many reasons, among them: They find a different or better job, they move, they go back to school or they retire. Some are fired or laid off. While all of these are examples of turnover, employee retention focuses on voluntary turnover as opposed to involuntary turnover (e.g., getting fired). Large U.S. businesses lose at least $1 trillion each year due to voluntary employee turnover, much of which exiting workers say their managers or organizations could have prevented. Why Employee Retention Matters to HRA comprehensive human capital management strategy includes a well-thought-out plan for retaining valuable employees your organization took time to recruit, onboard and train. It makes sound business sense: The cost to replace an employee can range from one-half to two times the employee’s annual salary. Company culture, employee satisfaction and other soft costs add up, too. Companies that fail to prioritize employee retention clearly pay a steep price. However, those that invest in improving employee retention and addressing turnover risks reap significant rewards. They report sales growth, improved productivity and work quality, as well as higher employee morale. Employee retention initiatives and related data can most efficiently be managed with a human resources management system (HRMS). The set of HR software applications helps with every step of the employee lifecycle from candidate management to onboarding and employee engagement. The tools will help you understand your turnover rate, and track the progress of any measures you take to address possible issues. 10 Benefits of Employee RetentionEmployee retention is not just about minimizing damage to the organization when employees leave. It also offers opportunities to improve company performance across a number of key metrics. The following are 10 ways effective employee retention strategies and processes benefit organizations.
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