Sunday, May 19, 2019
Employee Turnover and Retention
Employee turnover is a ratio comparison of the keep down of employees a company must replace in a given m period to the average number of total employees. A huge concern to most companies, employee turnover is a costly expense especially in lower paying job roles, for which the employee turnover rate is highest (Beam, 2010). Most associates average employment time with them is 7 years. Some of the common reasons why employees precede their company includes employee decided to do contract survey instead of fulltime, moving out of province or employee feel that their company or position is scarcely not a good fit (Devernichuk, 2010).Employee Turnover greets Employee turnover is a very dearly-won and time consuming. There atomic number 18 several direct cost associated with employee turnover in the company. This includes * Separation cost. Cost incurred for exit interview, separation/severance pay, administrative expenses, or any increase in unemployment compensation. * Replace ment Costs. Cost in advertising the position vacant, entrance interviews, testing, travel/moving expenses, pre-employment administrative expenses, medical exams and acquisition and dispersion of information. * Vacancy Costs.Cost due to increased overtime or temporary employee who fill-in the vacant position. * teach Cost. Time and resources spent in training the new employee and loss of productiveness while new employee is on training. Studies have estimated direct turnover costs per employee to be 25-30% of an mortal employees salary/benefits package, with hidden costs inflating that figure substantially (Insight Communications, n. d. ). Reducing employee turnover rates have umteen advantages to the company like profitability, productivity and competitive advantages.Employee computer storage Employee retention is a process in which the employees are encouraged to remain with the face for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as considerably as the employee. Many employees today leave the company or organization once they feel dissatisfied with their job or their employer. Once they feel the dissatisfaction or unhappiness with what theyre doing they leave behind easily leave the company and switch to a different company which is not good to the employer.Employers should know how to retain its employees (Compare Infobase Limited, 2007). Employee Retention Strategies * Trust in Management. The primary factor for employee to stay in the company is the level of trust for the management. This substance that the leaders should do the right thing and be truthful, treat state with respect and acknowledge their accomplishments. * get Wisely. Hiring is a very critical stage to avoid high employee turnover.A person who is doing the hiring process should cover song the applicant wisely and if in doubt with the person, dont hire. Career Path Opportunities. Most pile are seeking for improvements they dont want to be stuck in one position for many years. Giving them an opportunity for advancement lead likely film them stay in the company. * Treating Employees with Respect. Every individual needs to be treated fairly and with respect.* Employee Recognition. Recognizing employees is a good strategy in retention. Employees that are acknowledge with the hard work they did will more likely to stay with the ompany because of their job satisfaction and recognition. * Compensation. Offering higher up average compensation is the greatest way to retain employees. Satisfied employees with how much they make will make them stay longer in the company. Recommendations Company must be honest at the hiring process of what the benefits are and also thoroughly describe what the salary and the position is. They must explain what they expect from an employee and what the employee expects from them to avoid employee leaving.This will eliminate the feeling that their company or the position is not a good fit. Conclusion base on the information we gathered, we have concluded that company have avoided issues on employee turnover and retained their employees as long as possible by developing effective strategies that satisfy the needs of their employees. Hiring the right people will increase retention and conducting a regular employee satisfaction survey in an organization will help reduce employee turnover rates.