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When a firm specialize in a certain industry with a high demand for perfection, its job market become very tight. Employee retention is when an employer manage to keep their employees satisfied, thus, they won't look for another job.
This happen with industries that only have a couple companies working in it, Telecommunications, Oil & Gas, Energy, Aviation companies ...etc.
With key employees that knows too much to be let go, you need to maximize your efforts to retain them, they might have nothing to add anymore, but you don't want your information going to competitors and losing a large portion of your market share.
Employees retention is a large segment of Risk Management, comes with analysis of Employees Benefits Planning to make sure Risk Management executives manage all possible risks.
As easy as Gym membership discount, most of the time it is an Employee Retention plan.
Employee retention refers to the ability of an organization to retain its employees. Employee retention can be represented by a simple statistic (for example, a retention rate of 80% usually indicates that an organization kept 80% of its employees in a given period). However, many consider employee retention as relating to the efforts by which employers attempt to retain employees in their workforce. In this sense, retention becomes the strategies rather than the outcome.
A distinction should be drawn between low-performing employees and top performers, and efforts to retain employees should be targeted at valuable, contributing employees. Employee turnover is a symptom of deeper issues that have not been resolved, which may include low employee morale, absence of a clear career path, lack of recognition, poor employee-manager relationships or many other issues. A lack of satisfaction and commitment to the organization can also cause an employee to withdraw and begin looking for other opportunities. Pay does not always play as large a role in inducing turnover as is typically believed.
In a business setting, the goal of employers is usually to decrease employee turnover, thereby decreasing training costs, recruitment costs and loss of talent and organizational knowledge. By implementing lessons learned from key organizational behavior concepts, employers can improve retention rates and decrease the associated costs of high turnover. However, this isn't always the case. Employers can seek "positive turnover" whereby they aim to maintain only those employees whom they consider to be high performers.
The ability to retain the employees you hire!
Whereas a lot of us feel that employee retention is solely dependent on monetary incentives, few know that other factors such as motivation, recognition and well being greatly affect the percentage of employee retention in an organization.
It is an intended effort of an organization by making the working environment better so that its employees may not like to switch their jobs. In such an organization, working environment, facilities and benefits offered are such that it becomes difficult for the employees to think about changing the job.
An effort by a business to maintain a working environment which supports current staff in remaining with the company. Many employee retention policies are aimed at addressing the various needs of employees to enhance their job satisfaction and reduce the substantial costs involved in hiring and training new staff.Read more: http://www.businessdictionary.com/definition/employee-retention.html#ixzz41eoHNoft
Employee retention refers to the ability of an organization to retain its employees. Employee retention can be represented by a simple statistic (for example, a retention rate of 80% usually indicates that an organization kept 80% of its employees in a given period).
Thanks
Fully agree with Mrs. Krupa answer
This is an excercise to ensure the employees are retain in the organizaiton with positive drive, create the happy working enviornment. In order to maintain quality in the organization, HR and the management team should work together and measure the departmental turn over percentage time to time and corrective actions need to be developed with SMART objectives.
I have nothing to add to my colleagues answers. Thanks
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