Employee Retention

What is Employee Retention?

Employee retention refers to a company’s effort to retain its current talent while reducing overall turnover. Fostering a positive work environment, showing recognition, and providing a healthy work-life balance are essential to employee retention.

What are the four pillars of successful employee retention?

Employee retention is a crucial aspect of the talent management process, and four pillars make a successful employee retention. Here are the four pillars:

1. Competitive Salary: Keeping up with industry standards is complex but imperative. Offering competitive salaries to employees can make a significant difference.
2. All-Inclusive Benefits: Employees seek benefits that could differentiate one organization from the others. Providing all-inclusive benefits like retirement plans or transportation discounts can be beneficial.
3. Recognition and Feedback: Appreciating specific milestones and giving positive feedback are great ways to show employees’ strengths and areas for improvement.
4. Career Growth: Offering programs and workshops can enhance employees’ skills while allowing them to move upwards within the organization.

How to monitor employee retention?

Monitoring employee retention is as important as following the four pillars because metrics highlight essential employee information. Here are some employee retention metrics that every organization needs to find out more about their employees:

1. Employee Satisfaction: This metric shows employees' satisfaction with their jobs and the organization. Organizations can use surveys, individual interviews, or exit interviews to learn more about employee satisfaction.
2. Turnover Rate: The turnover rate measures the percentage of employees depart the organization. A high turnover rate might indicate problems within the organization. 
3. Retention Rate: This metric refers to an organization's ability to retain its talent. Companies with high retention rates are more likely to attract new talent and advance their business.
4. Voluntary Turnover Rate: The voluntary turnover rate includes employees who leave their positions due to retirement, pregnancy leave, or job switch. Since these employees are highly skilled, losing them can harm the company.‍
5. Involuntary Turnover Rate: This metric includes employees laid off or fired. A high involuntary turnover rate indicates that recruiting needs to be adjusted.