Employee retention is the capacity of an organization to retain its staff. With proper procedures, and tactics you can stop top talents from leaving your firm thus reducing the turnover rate. Typically, employee turnover is expressed as a percentage, which varies by industry. New staff hiring and retention are time- and money-consuming processes. Additionally, turnover has a detrimental impact on the output and morale of your other staff. Appointing an onboarding software like the LMS and onboarding paperwork can facilitate productivity.
Importance of employee retention
Retaining employees is one of the factors responsible for enabling your company to reach the peak of success in a short interval. Whereas hiring and training new staff takes a lot of time, effort, and money, and turnover can affect your company’s performance.
Here are a few reasons why employee retention is a must:
- Huge turnover expense: The cost of replacing an employee can range from 16% and 213% of their annual charges. In fact, organizations in the United States spend up to $1 trillion a year on turnover costs. It takes a lot of time to recruit new employees, interview them, onboard them, and train them, resulting in hefty costs for your company.
- Loss of skills and knowledge: Experienced workers take their knowledge and skills with them when they leave. And if they do not pass over their knowledge to the peer employees left behind, then it might lead to a productivity loss for the company.
- Productivity barriers: Vacant positions result in missed production hours that add up over time. When other workers pick up the space for open positions, they pile up with work leading to an overall loss in productivity.
Now, as we have a clear idea of what and how important employee retention is, let’s try to know a bit about employee productivity and its benefits.
What is employee productivity?
The output any employee generates in an hour is what employee productivity defines itself to be. Based on this indicator, employers decide whether to assign more or fewer employees to a project.
Their drive, interest, and level of job satisfaction all affect their productivity.
Employee productivity benefits:
- A staff who completes their work on time or earlier than expected is considered productive. They might then devote their remaining time to the other assignments if given.
- When your staff is productive, both the caliber of their work and the time it takes to complete a single task significantly improve.
- It gets easier for the organization to attain its objectives and goals if a productive workforce is a part of the company and is committed to their work.
Here are some factors that help enhance productivity and retention:
- Employee empowerment: By fostering an environment of trust and openness, team engagement can be enhanced. Providing them access to Company details and information further empowers them. Using a cloud-based and mobile-learning approach might assist in aligning your staff with the objectives of the business.
- Technology usage: A frequent absence from work, for instance, can be a sign of unhappiness. Analytical techniques can be utilized to spot any warning signs in the feedback. These resources are available to HR managers who want to learn more about the general health of their company.
- Provide benefits: Offer incentives other than money, such as flexible schedules, work-from-home options, and paid time off during holidays. Due to the current generation’s exclusive focus on preserving their work-life balance, these advantages may help lower turnover rates.
- Invest in employee growth: Employees value organizations that make an effort to invest in them. Offer them various cross-functional positions and training opportunities to help them develop. This will help them to have clarity regarding their career routes.
- Create and welcome an open culture: Employees value a forum where they can speak out and work together with other employees. You can incorporate a social platform where your staff can contribute to problems other teams are facing and share ideas about your current system. You may take it a step further and enable anonymous communication for them too.
Effective employee retention can prevent productivity losses for a company. Workplaces with high retention rates typically have more engaged employees who produce more work. Maintaining the present staff is just as crucial as finding the right new candidates. When an organization hires and inducts a candidate, a hefty amount of money, time, and effort is expended. As a result, a talented employee’s departure has wide-ranging effects on the company, the continuity of the work is affected, and finding a replacement for your productive worker gets very tough. To make managing employees and tracking their productivity a bit easier, the use of onboarding software is a must. Keeping a track of the onboarding papers will enable you to have information on your employee’s joining dates. Sticking to the strategies used for enhancing employee retention and productivity is also helpful in this case.