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Employee Retention is Mandatory to Ensure Organizational Productivity

A BullseyeEngagement Infographic Employee Retention is Mandatory to Ensure Organizational Productivity According to research, turnover appears to vary according to employee wage and their roles. As an example, a study found that the average costs of replacing an employee entail: High Cost for Replacing an Employee To replace a retail employee that costs $10/hour a company pays around $3,328. The cost of replacing a $40,000 manager amounts to $8,000. The cost of replacing a $100,000 CEO amounts to $213,000. It's obviously difficult to produce an exact figure for the cost of employee turnover, as many variables are intangible. Also, some things remain difficult to track. What is the Real Cost of Losing an Employee? Researchers in employee turnover and retention have recently highlighted factors that businesses must consider when determining the "real" cost of losing employee. These include: The cost of recruiting a new employee encompasses: advertising, interviewing, screening, and recruitment. Cost of on-boarding a new employee, which includes time spent on training and management. Slow and halted productivity a new person may take 1-2 years to operate like a current employee New employees tend to take longer in conforming to a new work environment. Training cost - a business loses 10-20% of what they invest when a trained Cultural impact - Don't forget that fellow employees always ask why an employee is leaving employee leaves. Employee Retention Prevents: ORBANIZING Employee replacement costs, which can be as high as 50%-60% of an employee's annual salary. Shortfalls in organizational performance. LEADING Dissatisfied performance of employees, which means that you can increase productivity and profitability CONTROLLING Best practices on Employee Retention So, what can you do about employee retention? We recently outlined seven tips for employee retention. Some of these employee retention tips include: Benchmark employee retention rate Implement tested and proven retention strategies Never assume that employees are happy - You must get their feedback Make sure you have a health benefits program. Something like a traditional health plan or defined contribution health benefits will work Offer various benefits for different employees Always conduct exit interviews Adhering to the above tips for maintaining employee retention can benefit your business tremen- dously. It involves some effort and watchfulness, but will certainly prevent you from facing severe financial loss. Sources: http://www.catalyst.org/knowledge/turnover-and-retention http://www.zanebenefits.com/blog/bid/312123/Employee-Retention-The-Real-Cost-of-Losing-an-Employee http://www.zanebenefits.com/customer-case-studies Toll Free: Bullseye Engagement www.bulls eyeengagement.com 1-877-988-9808 STAFFING PLANNING

Employee Retention is Mandatory to Ensure Organizational Productivity

shared by bullseyeevaluation on Sep 07
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The focus here is on the importance of employee retention as a driving factor for organizational productivity.

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grace

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Business
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