Employee Retention

Employee retention should be a key goal for your company. It can take months of employment and training for employees to develop the necessary skills and experience. This investment is a critical part of building a competent workforce. When effective employees quit, your company loses their key knowledge, experience, and skills. Retaining employees takes deliberate action and attention. An effective employee retention plan helps keep workers engaged. It can minimize turnover and avoid the loss of key workers, as well as help you understand why employees stay with or leave your company.

In addition to the loss of skills and experience, employee turnover costs your company time and money, as new workers will need to be recruited and trained. These costs can include:

• Administrative processing (e.g., payroll)
• Separation or severance pay
• Diminished productivity
• Overtime compensation to other employees to cover a departed employee's work
• Replacement costs, which include:
  • Recruitment costs (postings, selection process)
  • Onboarding (including administration costs)
  • Training