Employee Retention Strategy – a plan created by a company to reduce high turnover rates of employees and increase employee satisfaction, usually revolving around fostering a positive company culture, offering attractive benefits and higher salaries. Increasing employee retention is important for businesses as it has a direct impact on business performance and success.
The strategies an organisation develops to mitigate employee turnover risks and the processes it puts in place to retain its critical talent. These strategies can include creating policies to make work-life balance easier for employees, introducing flexible working hours, training and development programmes to help employee’s feel satisfied with their professional or personal growth, recognition and rewards systems, and wellness offerings, such as gym memberships.
Employee retention is a leading challenge for businesses and HR departments today. Employee retention has become a critical aspect of modern human capital management programs. The numbers speak for themselves: The most immediate and obvious cost of employee turnover is that of the hiring process to bring on new employees. According to Glassdoor, the average cost-per-hire runs the average employer about £3,000 per employee—for the hiring processes alone. High turnover, some of which could be avoided with prior management intervention, also comes at the expense of revenue, productivity, employee experience and knowledge retention.