09 Mar A Quick Review for Managers: Employee Retention Definition and Strategies
Attracting and hiring employees are difficult feats, but encouraging to them stay with your company is an even more unique challenge. Mastering employee retention is critical, because high turnover rates can drain your company’s time and productivity (source: WSJ). Here, we break down employee retention and provide a quick guide about what you can do to help boost it in your organization.
Employee Retention Definition
The Business Dictionary defines employee retention as “an effort by a business to maintain a working environment which supports current staff in remaining with the company.” It further explains it by saying, “Many employee retention policies are aimed at addressing the various needs of employees to enhance their job satisfaction and reduce the substantial costs involved in hiring and training new staff.”
If employee retention isn’t already a primary focus for your organization, it may be time to make it a priority.
The Harsh Reality Of Turnover Rates
The U.S. Bureau of Labor Statistics recently reported that four and a half years is the median amount of time employees stay with their company today. When you consider the amount of time and effort that you dedicate to attracting, hiring, on-boarding, and providing additional training for each employee, four and a half years doesn’t really seem like a very long time. Worse yet, if that’s the national average, there are surely some employees who are leaving in an even shorter timeframe.
So, what can you do specifically to enhance job satisfaction and encourage high performers to stay with you as long as possible?
For one thing, there’s the stay interview.
Stay Interviews: A Strategic Retention Tool
Stay interviews are informal one-on-one sessions between employees and managers that are conducted to help company leaders identify reasons for staying with the company. Conducting these interviews at an interval that best suits your organization will help you determine what your employees love about your company, what they would change, and other critical factors that can help frame your decisions about what you can do to retain your talent moving forward.
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