Employee retention is an organization's ability to keep its employees and reduce the rate at which they leave the company, either voluntarily or involuntarily. It involves strategies and processes designed to maintain a stable workforce by encouraging employees, especially top performers, to stay with the organization for a long period
. Key aspects of employee retention include:
- Definition : The ability to prevent employee turnover and keep valuable talent within the company
- Importance : High retention improves business efficiency, reduces recruitment and training costs, boosts employee morale, and enhances customer experience
- Strategies : These often involve fostering a positive work environment, offering competitive pay and benefits, providing career growth opportunities, recognizing employee contributions, and supporting work-life balance
- Measurement : Retention is often expressed as a retention rate, such as 85% retention meaning 85% of employees stayed over a certain period. A good retention rate is generally considered 90% or higher
- Focus : Efforts typically target voluntary turnover of valuable employees, as involuntary turnover or loss of poor performers may be less detrimental
In summary, employee retention is crucial for organizational sustainability and success by minimizing costly turnover and maintaining a committed, skilled workforce
