The Great Resignation is in full swing, and companies are now faced with two challenges. Navigating the new world of work and attracting and retaining the best talent. With “Help Needed” signs popping up everywhere. In every industry employees have more options about where to go.
To some employees, the pandemic was the catalyst to change careers finally. For others, lockdowns affected their industry, making their livelihoods unreliable.
But for others, the current economic climate has provided. An opportunity to redefine what matters to them at work. A chance to pursue it.
In some industries and some positions demand currently outstrips supply. Workers in food and hospitality and retail and transportation and logistics are taking advantage of this mismatch. They’re seeking employment that has better compensation and working
conditions.
That leaves companies desperate to understand the driving factor behind employee retention.
A recent study of CFOs found that talent retention outstrips nearly every other internal risk in 2022. And spoiler alert retention isn’t just about paying people more money.
Learn what your company should be paying attention. To if you want to boost employee retention and strategies that work.
What Is Employee Retention?
Employee retention is the number of employees that stay with their company in a given period. Typically, these employees only count as “retained” if they are happy, engaged, productive, and not looking for other work. Employee retention strategies help organizations prevent high turnover. Usually through boosting employee engagement and providing competitive benefits.
In short, the longer that people work for you, the higher your retention rate. The more often you hire and fire for the same role, the lower your retention rate.
Why Does Employee Retention Matter?
Employee retention is key to your organization’s competitiveness, productivity, and culture.
Without the right talent in place, your company can’t grow or execute its strategy. Without the right people in the area and place. Your company can’t attract the other people it will need. And company can lose the cultural magic that makes it unique and gives you an advantage over competitors. High employee retention adds significant value to both the company’s bottom line and its culture.
Here are three reasons why understanding your employee retention rate is essential:
1. Your Team Is Better And More Productive
So companies that can retain their employees benefit. From people that not only know their role but can work well as a team. These people often grow to be influential leaders within the organization. They can fulfill their rules well, but they’re able to train others making hiring and onboarding easier.
2. Improves Company Culture
It’s very uncomfortable to work in an environment where you feel like you could be fired at any moment. Hiring new faces can be exciting, but it can also make you feel like you don’t know anybody. High retention boosts camaraderie, and it’s good for employee morale and improves productivity. Fewer hours are spent processing incoming and outgoing employees.
3. Reduces Expenses
Acquiring new employees can be costly. Also even once they’re in the door, each employee represents a significant investment of time and training. When those employees are happy with their jobs companies are rewarded with higher engagement, skill, and morale. A high turnover means that employers lose the benefit. Of both employee skills and on-the-job experience.
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