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| Retention Success Mantras |
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Managing Employee Retention
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Retention Home » Managing Employee Retention
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The task of managing employees can be understood as a three stage process:
1. Identify the cost of employee turnover
2. Understand why employee leave
3. Implement retention strategies
Identify the cost of employee turnover:
The organizations should start with identifying the employee turnover rates within a particular time period and benchmark it with the competitor organizations. This will help in assessing the whether the employee retention rates
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are healthy in the company. Secondly, the cost of employee turnover can be calculated. According to a survey, on an average, attrition costs companies 18 months’ salary for each manager or professional who leaves, and 6 months’ pay for each hourly employee who leaves. This amounts to major organizational and financial stress, considering that one out of every three employees plans to leave his or her job in the next two years.
Understand why employees leave:
Why employees leave often puzzles top management. Exit interviews are an ideal way of recording and analyzing the factors that have led employees to leave the organization. They allow an organization to understand the reasons for leaving and underlying issues. However employees never provide appropriate response to the asked questions. So an impartial person should be appointed with whom the employees feel comfortable in expressing their opinions.
Implement retention strategy:
Once the causes of attrition are found, a strategy is to be implemented so as to reduce employee turnover. The most effective strategy is to adopt a holistic approach to dealing with attrition. An effective retention strategy will seek to ensure:
- Attraction and recruitment strategies enable selection of the ‘right’ candidate for each role/organization
- New employees’ initial experiences of the organization are positive
- Appropriate development opportunities are available to employees, and that they are kept aware of their likely career path with the organization
- The organization’s reward strategy reflects the employee drivers
- The leaving process is managed effectively
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