Employee retention is crucial for one reason - the cost of employee turnover. Whether one measures that cost in terms of recruitment costs, loss of productivity, opportunity cost, or the knowledge and expertise lost when talented individuals leave, these are all losses that could be saved by providing employees the right reasons to stay.
Not surprisingly, the best way to increase employee retention is by increasing employee engagement. Any well-developed employee retention strategy includes a solid employee engagement program designed to keep employees committed to the success of their work and enthusiastic about working for their organization. The logic follows that employees who feel committed to their work and to their company are more likely to remain with that company, rather than seek employment elsewhere.
While employee engagement and retention go hand in hand, the methods for keeping employees engaged tend to apply consistently as general principles, while retention strategies must always be considered in the context of the current job market and state of the economy.
During times of economic downturn, jobs become scarce, the job market becomes an employer's market, and employees typically become more engaged as they do their best to keep their jobs. During times of economic growth, jobs become available, the job market becomes a candidate's market, and employees are more likely to seek opportunities for enhanced careers and compensation. In an employer's market, employees work to retain jobs. In a candidate's market, employers work to retain employees.
An effective employee retention program compliments employee engagement strategies with incentives. While monetary compensation is an important factor in incentivizing employees to stay, employees frequently cite challenging work and professional growth opportunities as higher priorities when making career choices. Equally important, employees need to feel valued and secure in their standing with the company - put simply, they need to know they have a future with the organization.
A sound employee retention plan should include programs that provide employees with opportunities to develop their careers, engage with their organizations, and envision their futures as valued and contributing members of the company.
The task of facilitating a targeted employee retention program - one that provides employees with the opportunities, incentives, and resources needed to engage with the organization and commit to a lasting career - poses a significant challenge to employers and administrators. Utilizing technology like online HR portals can streamline the process for administrators and employees alike by making every aspect of an engagement and retention program readily accessible to users at every level of the organization.
Insala provides online solutions that help employers engage and retain employees - with employee career development and mentoring software. A career development program helps employees engage their organizations by creating comprehensive career plans and plotting their paths for the future with their companies, while a mentoring program ensures that those with more experience can provide employees with the guidance they need along the way. Having the structure of a career plan and the support and guidance of a mentor helps employees plug into the company culture - it gets them engaged. When employees get engaged with the company, they feel committed. And when they feel committed, they're much more likely to stay.