What is employee retention?
Employee retention is, “the organizational goal of keeping talented employees and reducing turnover by fostering a positive work atmosphere”. Employee turnover is, “the measurement of the number of employees who leave an organization during a specified time period.” Are you having a hard time retaining your employees? Let’s dive deep into how you can raise your retention rate and lower your turnover rate! A company will need to be strategic in retaining their employees by creating a positive working experience. Employers will want to avoid high turnover because it will have many negative effects on a company.
How to calculate employee retention rate:
The formula for calculating retention rate is to divide the number of employees that your company retained through the entire time period by the number of employees you started with on the first day. Then, you multiply that number by 100 to find your employee retention rate for that period.
What are some ways employers can improve their employee retention strategies?
One of the best ways employers can increase their employee retention is by creating a positive culture that employees are proud to be a part of. The more respect and positivity spread within the business, the more satisfied employees will be coming to work to do their job. Another strategy employers can use to retain their employees is by showing growth in one’s career. If an employee sees the growth potential they are expected to stay with a company long term.
How can employees help improve employee retention within a team?
Employers should create a team environment where employees gain strong relationships and respect for one another. Employers can do this by setting up team events or having employees work together on projects. Having a team that works well together can help gain employees’ trust and loyalty towards the company.
Why employee retention is important and how it can save employers time in the future:
Employee retention is important for a business for the following reasons:
- Benefit financially- According to Glassdoor, the average company in the United States spends about $4,000 to hire a new employee, taking up to 52 days to fill a position.
- You keep your top talent- The longer an employee stays with a company, the more skills they gain for the job. Along with greater skills When a working environment is toxic, top talent will end up leaving a company to find a more productive workplace.
- You keep employee bonds- How can employees build strong relationships with one another if employees are constantly leaving? A high retention rate will increase positivity and close relationships between a team.
How does diversity impact employee retention?
When employers create a diverse and inclusive work environment, employees feel more heard and engaged with their team. When employees feel heard and engaged they are more likely to stay with their company because they have created strong relationships.