HR Affairs: Cost of Employee Retention
Employee retention is a conflict of engagement. A company couldn’t engage an employee who doesn’t stay, as an employee wouldn’t stay if they are not engaged.
In a survey of 5,000 professionals by the Recruitment Buzz in the UK, workers who are quitting their jobs appear to double from 2014 to 2017 (17% to 32%). 37% of employees revealed that they had previously had jobs that lasted for only three months.
46% of job changers cite organizational issues as a reason for deciding to leave their former employers. 53% reasoned out that unsatisfactory career progression motivated them to resign, while 73% withdraw from their job for “personal reasons”.
Employee retention is costly. Their turn over will just cost the company an apparent 200% of their salary. This amount accounts for the recruitment costs and the length of the onboarding process. Vacancy from leaving employees accounts for 90% of businesses having trouble to refill such vacancies.
Retention begins after a successful recruitment. Employee retention is every company’s responsibility. Even if employers can easily assess whether a candidate is a good fit or just a plain troublemaker, recruiters have no ability to ensure retention of their deployed candidates to their workplaces, no matter how keen they monitor them.
Thousands of workers are suffering from work-related stress. This affects not just their happiness in the workplace, but also their productivity. Poor performance from employees is usually a sign of a possible resignation or turn over. In a recent study by Freedom Finance, stress in the workplace is most likely to be suffered by millennials.
Today where workplaces are being dominated by millennials, flexibility should be afforded to ease their workplace stress and to maintain a more constant workforce. Excessive workloads and overtime are some of the biggest causes of workplace stress.
A fast-paced environment with inconsiderate tight deadlines is never an appropriate business environment for any worker. Any task given should always be achievable. In cases of stress in the workplace, communication and support should be given to relieve the issue.
Some workers look for a new job to increase their pay, by reviewing their salaries and keeping pay competitive and just for their workloads, it may discourage them from changing jobs.
A focus on their wellbeing may also impact their engagement and their retention. Flexible vacation leaves and a frequent “Are you OK’s” are enough initiatives to promote each employees’ wellbeing.
Employee retention may have been the cause of greatest headaches among HR managers. The struggle of retaining top employees is a challenge that has never been new and has never always been. Inability to retain top talents is a disability that could impair the company leading to a major loss of its competitive advantage in their respective industries.
High employee retention rate is a demonstration of happiness and satisfaction among workers. Appropriate measures in recruitment and retention can manage to reduce turnover and to keep retention sustainably. The secret to having an excellent retention rate is by establishing a positive company culture where employees are happy, satisfied, and challenged at the same time.
Seasoned recruiters will always have an eye for star performers. Learn more of our best practices in talent acquisition and let us collaborate to achieve your business goals.
Rensol Recruitment & Consulting
Email: [email protected]
Phone: +63 2 931-0968
ABOUT THE COMPANY: Rensol Recruitment and Consulting, Inc. is the fastest growing recruitment agency in The Philippines. A career consultant that aims to go above and beyond the level of expectations of both the aspirations of the candidates and the dream team standards of employers through providing exceptional opportunities and unparalleled quality-driven recruitment services.
A product of the University of Santo Tomas College of Law, Bryan joins Rensol team to aid in its human resource management and legal processes. His strong background in civil law, his intensive experience working for a private law firm, and his being well-versed with the technicalities on existing policies and regulations surrounding overseas employment and ethical recruitment preserves the company on the legal track with all its many endeavors.
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