Resons for Employee Retention & Turnover

                                                              

As state of Vincent S.Flowers and Charles L.hughes (1973),Many companies spend a significant amount of time and money in investigating the causes of employee turnover, such as through exit interview programs. Typically, the goal of such research is to determine why individuals leave—the idea being that if a firm can identify the causes of terminations, it may strive to reduce terminations and turnover. 

According to Pam Backer  & Shaun Sutner (2023),Exit interviews and employee surveys identify some of the most prevalent reasons why people leave their jobs, including the following:

• poor compensation;
• insufficient employee benefits;
• lack of remote work and work-from-home opportunities;
• lack of career development opportunities;
• lack of work-life balance;
• poor or undefined company culture;
• no sense of belonging with team members or the company at large;
• lack of recognition or rewards;
• concerns about the company's financial health; and
• better job opportunities elsewhere.
  

 Also according to Allyson Edward (2015),Employees are undoubtedly the foundation of every firm. They keep the organization running by completing day-to-day tasks and managing relationships with clients. Without industrious and devoted personnel, a firm will struggle to succeed. It's no wonder that firms devote a significant amount of effort to attracting the top staff. Organizations devote significant resources to developing these personnel in the expectation of receiving a high return on investment. But what happens to a company when an individual leaves? To shed light on the significance of employee retention, we've developed a list of five reasons why organizations should retain employees:

• Cost:

Organizations having a high staff turnover rate tend to pay greater expenditures. Between advertising, training, and other organizational procedures, the cost of replacing an employee may have a significant influence on the operating budget. According to a recent research, replacing lost talent costs between 70 and 200 percent of the employee's yearly compensation. Retaining personnel will allow the firm to keep overall expenditures low.

• Productivity:

Once hiring a new employee, HR and management must devote substantial time and energy to assisting the new recruit in learning and adapting to the firm. Time spent on training and orientation diverts attention away from clients and the organization's overall objectives.

• Competitors:

Once an employee quits an organization, they are placed into the numerous job market. In numerous instances, individuals may start working for a rival and utilize their past experience to their new job.

• Positive work culture : 

Employees who have worked together for a long period tend to absorb qualities from one another. Continuous collaboration, regardless of their strengths or faults, will eventually lead to the adoption of one another's attributes. Employees who have worked together for a long period may build a shared approach for completing jobs efficiently.

• Client satisfaction:

Client happiness, loyalty, and perception all contribute significantly to an organization's success. An organization with a high personnel turnover rate risks developing a negative reputation. On the other side, if a devoted client builds a close relationship with an employee who quits, the client may accompany that individual to their new workplace. As a result, the organization lost revenue.

As a result, we may deduce that,Employees place a high importance on job stability and security, particularly in times of widespread layoffs. Organizations that offer safe working conditions, stable finances, and long-term career opportunities are more likely to keep their personnel.

 

References

Flowers V.S. & Hughes C.L. (July 1973), Why Employees Stay [Online], Available at :https://hbr.org/1973/07/why-employees-stay [Accessed on 31st March 24]

Backer P. & Sutner S. (2003), Employee Retention [Online], Available at :https://www.techtarget.com/searchhrsoftware/definition/employee-retention [Accessed on 31st March 24]

Edwards A. (May 18,2015), 5 Reasons to Retain Employees [Online], Available at :https://www.linkedin.com/pulse/5-reasons-retain-employees-allyson-edwards [Accessed on 31st March 24]