Why Employee Retention Is So Important For Any Organization? - SplashBI
Why EmployeeRetention is soimportant for anyOrganization? 2020 All Rights Reserved Splash Business Intelligence Inc. www.splashbi.com
ContentsWhy Retain Good Employees?4 Reasons Why Employee Retention isImportant1. Turnover is Expensive2. Veteran Employees Add Value3. Bad Hires Hurt Morale4. Your Competitors Benefit DirectlyPeople Analytics to the RescueConclusion 2020 All Rights Reserved Splash Business Intelligence Inc. www.splashbi.com
Why Retain Good Employees?Employee retention has been a focus of HR for a long time, probably for as longas there has been HR. It’s evident that retaining employees is good, but the fullimpact of retention is often not recognized. So, why is employee retention soimportant, especially nows?Top 4 reasons why employee retention is important1. Turnover is Expensive2. Veteran employees add value3. Bad Hires hurt morale4. Your Competitors Benefit Directly1. Turnover is ExpensiveIt costs more to replace an employee than meets the eye. It’s common to thinkthat it costs 5,000 - 10,000 to replace an employee earning 50,000. Thisworks out to 10% - 20% of the annual compensation for the position?This perception fails to account for many very real costs, such as off-boarding,onboarding, relocation, training, and the loss of work while acclimating newemployees. The reality is that in the US, replacing an employee costs between40% and 60% of their annual compensation. For a position with critical skills, itcan cost over 100% of annual compensation.Here is what it costs most organizations to replace an employee:“Average” EmployeeEmployee with Critical SkillsTask% of salaryTask% of salaryMarketing2%Marketing5%Recruiter fee3%Recruiter fee10%Interview effort7%Interview ning10%Impact on team10%Impact on team15%Offboarding3%Offboarding3%Productivity loss10%Productivity loss15%Relocation0%Relocation5%Total Cost55%Total Cost85% 2020 All Rights Reserved Splash Business Intelligence Inc. www.splashbi.com
So, we’ve established that turnover is costly in terms of hard cash. Other veryreal costs are harder to measure. Turnover is tough on morale. Teams take ahit when losing a contributor. Work must be redistributed, and the teamfaces the uncertainty of a new resource. When a top performer leaves, theloss of knowledge and work output hits a team especially hard. It’s especiallytough on managers, who are responsible for replacing employees whilekeeping the team running.The worst case is when a team experiences multiple exits in a short time.The remaining members wonder if the grass is greener in a different pasture.A little turnover easily leads to a critical situation.The current climate makes retention particularly challenging. Several presentfactors are contributing to a significant rise in turnover. Some of these factorswill be around for a long time: Millennials (about 50% of the workforce) need new challenges to stayengaged. If they’re not developed at their current job, they’ll find careergrowth somewhere else. We’re facing a wave of retirements of the skilled workforces in manyestablished industries.Unemployment in the US is very low. It’s hard to find new employees andexisting ones are lured by opportunity.So, what do we do? We established that retention is essential on many levels.Now we’d like to do something about it.2. Veteran Employees Add ValueCompetent and experienced employees have a market of their own inthe employee market. Organizations need to make them feel that they arerespected. Workplaces benefit from long-term employees. Every company,be it small or big, should take the time to check-in with experiencedemployees. They should feel that they are valued. It can reduce highemployee turnover.Experienced employees are valuable employees, and their departure can setback project timelines and in some cases, trigger the exit of other workers too.Companies need to understand the importance of employees who spendconsiderable time with them. Understand their career goals and work withthem to achieve their goals. Making them feel at home is what employeeengagement is all about! Exploring new roles and responsibilities along withappropriate increases in compensation goes a long way in reducing theturnover rate. 2020 All Rights Reserved Splash Business Intelligence Inc. www.splashbi.com
3. Bad Hires Hurt MoraleWhen companies fire bad hires, they harm the morale of other dedicatedemployees in the organization. The workers may start to wonder if their jobsare secure. They may also doubt the competency of the company’smanagement.Understanding job candidates in and out, verifying their background, providingthem appropriate training, and having a transparent, onboarding process canreduce bad hires. Hiring the right employee is crucial to improve employeeretention rates.4. Your Competitors Benefit Directly!Companies put employee retention strategies in place to keep them awayfrom their competitors. When a talented employee quits, he is either goingback to school, moving to another location or looking for a better careeropportunity.When you lose a quality employee, you run the risk of him ending up workingfor your competitor - a clear case of wasted money, time, and employeeimprovement programs. The best way to keep them away from competitorsis to improve retention.People Analytics to The RescueHere is where People Analytics comes to the rescue. We have a lot of people’sdata in our HCM systems. We can use new technology to analyze this data andanswer the tough questions? Start with basic people analytics to understand the underlying health of theorganization. Headcounts, turnover & retention rates should be known forevery department and leader. We must understand the problems before wecan address them. Use HR predictive analytics to address the future. Forecast the risk of employee exits. This uses historical data and tells uswhich people are likely to exit soon. Focus on top performers, critical skills,and other regrettable exits. Identify exit drivers to learn why employees are likely to exit. Address exit drivers in a targeted fashion. If a team’s exit drivers are aroundtraining, consider investing more in learning. If top performers’ exit driversare related to compensation, we look there. 2020 All Rights Reserved Splash Business Intelligence Inc. www.splashbi.com
Using recruitment analytics, review your candidate experience to improveyour employer brand. An employee makes their first impression of anorganization during the hiring process. A less than - elegant candidateexperience reduces the long-term outlook for employees.So, there’s a lot we can do to improve employee retention. Many of theseoptions weren’t available a decade ago. Technology provides many newopportunities to improve?SplashHR to the RescueHR Analytics is a giant leap in the field of HR; it requires astute professionalswho understand the inner workings between employee lifecycle events,who are proficient in statistical tools, analytical tools, and data science. It isno surprise that people analytics help in identifying trends in human-capitaldata and generate actionable insights that lead to better decision-making.Furthermore, SplashBI is making insights accessible through continuousupdates so that organizations can make critical decisions in real-time withoutHR intervention.SplashHR by SplashBI offers dynamic KPIs using table drill-downs and charts togive a comprehensive insight into your HR data. We help you get a glimpse ofthe most important KPIs of your organization’s HR data and allow you to plan astrategy accordingly.https://splashbi.com/ 2020 All Rights Reserved Splash Business Intelligence Inc. www.splashbi.com
Top 4 reasons why employee retention is important 1. Turnover is Expensive 2. Veteran employees add value 3. Bad Hires hurt morale 4. Your Competitors Benefit Directly 1. Turnover is Expensive It costs more to replace an employee than meets the eye. It's common to think that it costs 5,000 - 10,000 to replace an employee earning 50,000. This
Concept of Employee Retention: Employee Retention means many things to many people in each organisation. There is no single definition of Employee Retention(Bhatia, 2011, p. 299). Some views mentioned by J. Leslie Mekeown are "Employee Retention means stopping people from leaving the Organization." "Employee Retention is all about keeping .
Insight Employee Retention and Engagement in the Civilian Labor Force 2 Chapter 1. Employee Retention Employee retention is defined as the process by which employees are encouraged to remain with an organization for as long as possible.1 The long-term success of any organization is heavily influenced by its ability to retain its employees.
1. what is meant by the term ' customer retention ' 2. the economics of customer retention 3. how to select which customers to target for retention 4. the distinction between positive and negative customer retention 5. several strategies for improving customer retention performance 6. several strategies for growing customer value 7.
The answers gleaned from this type of investigation can offer great insight into how the company's employee retention program should be structured going forward. Implement a Hiring Process with Retention in Mind Retention efforts should begin at the time the decision is made to hire a new employee. After that, keep in mind that the strategy
of people were furloughed or laid off as a result of the pandemic. However, as we begin to emerge into a post-COVID world, people are planning to quit the jobs they HIGHLIGHT RETENTION HIGHLIGHT FOR THE ‘NEW’ WORK WORLD EMPLOYEE Employee retention is an organisation’s ability to mitigate employee turnover risks by motivating its
What can I expect from this guide? The Ultimate Employee Retention Guide covers the information you need to know to successfully retain top talent. In turn, you'll also learn about the factors that attract new employees and how to provide an excellent employee experience. After all, you shouldn't be leaving employee retention up to chance!
Create a Retention Plan that Really Works Why Retention is a Challenge More competition than ever before for members Members don't perceive value or ROI for investments Staff is too busy to focus on retention (it's everyone's job and no one's job) Focus is on recruitment than on retention High turnover with first-year members
Andreas Werner The Mermin-Wagner Theorem. How symmetry breaking occurs in principle Actors Proof of the Mermin-Wagner Theorem Discussion The Bogoliubov inequality The Mermin-Wagner Theorem 2 The linearity follows directly from the linearity of the matrix element 3 It is also obvious that (A;A) 0 4 From A 0 it naturally follows that (A;A) 0. The converse is not necessarily true In .
