12 Jan The Importance of Employee Retention
Most companies check their turnover numbers. They compare it against industry benchmarks and if they come off even a little better, they rejoice and settle into their old routine of grueling performance reviews, ‘Employee Appreciation’ endeavors, knee jerk cash reward distributions and exit interviews (which are conducted after an employee has already decided to leave.)
Studies have found that one-quarter of your workforce is at high risk of turnover and 70% of them feel that they need to leave to advance their careers. A lack of opportunities to grow can’t be solved through raises or through distracted talks with the line manager once in a while. The very foundation of employee satisfaction and engagement should ensure that the work environment is very conducive to learning and the perks should make employees feel cherished and valued.
First and foremost, HR departments and line managers need to recognize the importance of employee retention. Not to mention the fact that replacing a single employee can cost anywhere between 20% and 200% of his or her annual salary.
There may not be anything glaringly wrong with your retention strategies but the time has come to re-evaluate why your employees choose to stay or leave. Creating a culture of open and candid, proactive conversations through a stay interview program can cut turnover by 20% or more. Stay Interviews not only start building a trusted relationship between the employee and line manager, but workers will understand that constant action is being taken to develop their skills and nurture their abilities. Stay Interviews make a world of a difference when it comes to reducing employee turnover numbers.
HRsoft is a leading provider of strategic talent management software that improves manager effectiveness and business results. Our full suite of cloud-based HR software solutions includes applicant tracking software, compensation planning software, total rewards software, stay interview software, performance management software, and content management software. To learn more about our Stay Interview Software, STAYview, click the button below!