Have you ever heard the term but often wondered, “what is employee retention?” Employee retention is a concept of great concern to many different businesses who are looking to have an experienced, productive work force. If you are looking to define employee retention, you can say that it is the percentage of employees who stay with a company over a given period of time. For example, if a business has a high turn over rate, which is to say they hire and fire people often, then they have low employee retention. Conversely, having a low turn over rate and keeping the same employees for a long time equals high employee retention.
The benefits of employee retention are many. The fact is that every time a company has to hire somebody new, they have to spend resources to train that new employee. These resources, time and money, are not infinite and can present a challenge to businesses to continuously expend. Further, by employing effective employee retention techniques businesses are able to develop a family like atmosphere in the work place. People are for more likely to get along with people they have worked for a long time. This reduces work environment stress and, by doing so, cyclically creates higher retention rates.
Companies implement many varied retention strategies for employees. By making wages competitive and acceptable to both parties, a business stands to create a sense of fairness in the workplace. After all, every employee needs to feel like they are being paid what they are worth at their job. Other methods like team building exercises, company picnics, bonuses, and the use of employee retention software also go a long way in maintaining a high retention rate.
So, there you have it. Hopefully the next time it comes up, you can answer for others asking, “what is employee retention”, and explain to them just why it is so important.