Employee retention definition: In terms of workforce evaluation, retention refers to employees’ abilities to not only absorb and retain training or specialized skills but to apply the learned skills to their job.
Tech mistake | Retention may also refer to 1.) earning retention – what income a company retains after necessary payouts, or 2.) employee retention – the rate at which a company can keep consistent, long-term employees.
The benefits of employee retention
- It promotes productivity. Happy employees are loyal employees who are willing to go the extra mile to improve operations. High turnover has the opposite effect on morale.
- It encourages efficient operation. Long-term employees develop company or industry-specific experience. They hold the institutional memory of the organization.
- It’s cost-effective. Retaining employees can reduce the numerous costs associated with turnover.
What is an employee retention strategy?
- Employee retention is about promoting job satisfaction. It’s largely a combination of respectful treatment, fair compensation, a sense of mutual trust, job security, and how often an individual can use their unique skills.
- Support open lines of communication so that ideas, questions, and reports can be communicated with honesty. Find opportunities to encourage employees to speak their minds, and make it a habit to connect with staff regularly.
- Look for chances to promote teamwork, collaboration, and employee engagement. You can encourage active participation by clarifying company objectives, goals, and employee roles. And celebrate victories as a team, whether business goals or personal successes.
- Use mentorship programs to help new employees learn the ropes.
- Encourage a healthy work-life balance. Unhappy employees are less productive, and more likely to result in a turnover. Be proactive about asking employees what they need, and remain vigilant about looking for the signs of employee burnout.
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