A high employee turnover at your organization affects its reputation massively and not in a positive way. Employees resign from companies when they are unhappy and they see no solution to the problem.
Having a high employee retention rate, on the other hand, is something to be proud of. The organization is fulfilling the requirements of the employees and hence they are motivated to stay and work hard. Having a high retention rate is valuable for the company since they aren’t wasting resources hiring and training people all the time.
Holding on to an older employee is generally more beneficial than hiring and training new ones. Older employees know the business practices and culture well, they have their own network plus goodwill that they have earned for themselves. They are less likely to cause major issues for the company.
These are three main ways an organization can make sure its retention rate is high, like:
One main motivating factor for employees is the compensation they receive in return for their efforts. In these expensive times, everyone wants to earn the highest possible amount. After all, they have bills to pay and aspirations to fulfill.
Always make sure the compensation offered to employees is market competitive. If they are underpaid, they will surely look for jobs elsewhere. Other employers prefer dedicated staff members who put in so much effort for minimal pay. Other than that, if your employees end up working for a competitor, they could divulge insider knowledge that will give them power over you in the industry.
Offer your employees good pay to show them how much they mean to the organization. Benefits offered must be similar, if not more, than those offered by competitors.
The process of recruitment can be stressful. As an employer, you may feel like the perfect candidate for the role will never show up. Finding a right fit for the job may be a bit time consuming, but it’s better than hiring the wrong person to fill in for the time being. In such a case, the person hired may land your business into hot water and laying them off will tarnish the organization’s name.
Once you hire an employee, you cannot expect them to know all the norms of your business. They require training and some time to settle into things. A few years down the line things may begin to feel like its plateaued. This is the time to invest in training for your employees to get familiar with the latest trends of the industry. They will be better able to perform for your business this way.
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