The economy is growing and that means talent turnover is increasing. As a result, strategies to retain employees are more important than ever.
“In today’s heating economy and rapid shift in demographics, you’ll be competing for talent regardless of your industry,” HR Researcher and founder of Deloitte Consulting Josh Bersin explains in his article Employee Retention Now a Big Issue: Why the Tide has Turned.
As the economy picks up and job searching technology advances, employees have more options to switch jobs than ever. The downside is that from the employer perspective, losing an employee is massively expensive.
The total real cost of losing an employee can be as much as 1.5 to 2x the annual salary in question, Bersin estimates. This range takes into account:
- The cost of interviewing and hiring a new person
- Training a new employee
- More factors including the cultural impact on remaining employees’ productivity when a colleague quits
The best way to manage talent overturn is to stop it in its tracks. Keeping employees is far better than having to devote time, energy, and money to finding new ones.
Plus, employees are what Bersin defines as “appreciating assets.” That means that the longer someone is employed, the more valuable they become to their organization. Experienced employees are far more productive, know how to avoid errors, and know how to work with their colleagues.
So what can be done to retain employees?
A proven recipe for success involves these Three Retention Strategies:
- Reinforce a common sense of company mission
- Ensure that employees know they are valued and respected
- Invest in building a highly engaging work environment
For more details, you can find Bersin’s original article HERE.
