Talent Retaining Process Getting Tougher & Tougher
Employee turnover is a ratio comparison of the number of employees a company must replace in a given time 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. Many factors play a role in the employee turnover rate of any company, and these can stem from both the employer and the employees. Wages, company benefits, employee attendance, and job performance are all factors that play a significant role in employee turnover. It might happen that the relationship with the management and the peers becomes the reason for an employee to leave the organization. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. A supportive work culture helps grow employee professionally and boosts employee satisfaction. To enhance good professional relationships at work, the management should keep the following points in mind.
Employee Retention involves five major things:[/b][/b]
1. Compensation
2. Environment
3. Growth
4. Relationships
5. Support.
Select the right people in the first place through behavior-based testing and competency screening. The right person, in the right seat, on the right bus is the starting point.
Employees cited the following three top reasons they would begin searching for a new job:[/i][/b][/i][/b]
53 percent seek better compensation and benefits.
35 percent cited dissatisfaction with potential career development.
32 percent said they were ready for a new experience.
HR professionals were asked which programs or policies they use currently to help retain employees.
The following three are the most common programs employers are using to retain employees:[/i][/b][/i][/b]
62 percent provide tuition reimbursement.[/i][/b][/i][/b]
60 percent offer competitive vacation and holiday benefits.[/i][/b][/i][/b]
59 percent offer competitive salaries[/i][/b].
HR professionals (71 percent), in large organizations (those with more than 500 employees), thought it would be extremely likely or somewhat likely to experience an increase in voluntary turnover once the job market improves. Forty-one percent from small organizations (1-99 employees) said it was extremely likely or somewhat likely that turnover would increase. Fifty-three percent of respondents from medium organizations (between 100 and 499) thought the same.[/i][/b][/i][/b]
Offer an attractive, competitive, benefits package with components such as life insurance, disability insurance and flexible hours.
Involve employees in decision making that affect their jobs and the overall direction of the company.
Recognize and celebrate success.
Staff adequately so overtime is minimized for those who don't want it and people don't wear themselves out.
Provide opportunities within the company for cross-training and career progression.
Provide the opportunity for career and personal growth through training and education, challenging assignments and more.
Communicate employee goals, roles and responsibilities so that they know what is expected and feel like part of the in-crowd.
Encourage employees to have good, even best, friends, at work.
Few of schemes for employee retention are as under:
1. Retention Bonus
2. Employee Reward program
3. Career Development program
4. Performance based bonus
5. Employee referral plans
Employee Reward Program
Career Development Program
Performance based Bonus
Employee Referral Plan
Loyalty Bonus
Giving a voice to the Knowledge Banks
Employee Recreation
Gifts at some Occasions
When an employee works for an organization he gathers detail knowledge about the organization, its competitors, working style, different projects etc. he leaving means loss of knowledge. When framing policies see to it that they are implemented too. They don’t act like the files and folders kept in any govt office. Also make sure that you don’t be stubborn with the policies to the extent that employees start resigning. Communication is the key to be a successful manager. Seeking help from individuals with expertise in specific areas is a sign of strength, not weakness. Managers, who continually focus on the negatives, end up with employees who are not motivated and often have one foot out the door looking for a more positive work environment. A common mistake made by managers is to delegate blame or simply not accept responsibility. Being in charge means taking responsibility for whatever happens. Once a manager has obvious favorites, he or she loses credibility and the respect of the rest of the team. Hence avoid favoritism. Well its common that new breed of managers is more tech-savvy. Embracing technology is a key to success, but not at the risk of embracing people skills.
The basic employee retention rate calculation, or the stability index, can be determined using the following easy formula:
Number of staff with one year or more of service/ Total number of staff on board one year ago X 100 = Employee Retention Rate
In a human resources context, turnover or staff turnover or labor turnover is the rate at which an employer gains and loses employees. Simple ways to describe it are "how long employees tend to stay" or "the rate of traffic through the revolving door." Turnover is measured for individual companies and for their industry as a whole. If an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. High turnover can be harmful to a company's productivity if skilled workers are often leaving and the worker population contains a high percentage of novice workers.
In the U.S., for the period of December 2000 to November 2008, the average total non-farm seasonally adjusted monthly turnover rate was 3.3%. However rates vary widely when compared over different periods of time or different job sectors. For example, during the period 2001-2006, the annual turnover rate for all industry sectors averaged 39.6% before seasonal adjustments, during the same period the Leisure and Hospitality sector experienced an average annual rate of 74.6%.
Employee turnover is a ratio comparison of the number of employees a company must replace in a given time 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. Many factors play a role in the employee turnover rate of any company, and these can stem from both the employer and the employees. Wages, company benefits, employee attendance, and job performance are all factors that play a significant role in employee turnover. It might happen that the relationship with the management and the peers becomes the reason for an employee to leave the organization. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. A supportive work culture helps grow employee professionally and boosts employee satisfaction. To enhance good professional relationships at work, the management should keep the following points in mind.
Employee Retention involves five major things:[/b][/b]
1. Compensation
2. Environment
3. Growth
4. Relationships
5. Support.
Select the right people in the first place through behavior-based testing and competency screening. The right person, in the right seat, on the right bus is the starting point.
Employees cited the following three top reasons they would begin searching for a new job:[/i][/b][/i][/b]
53 percent seek better compensation and benefits.
35 percent cited dissatisfaction with potential career development.
32 percent said they were ready for a new experience.
HR professionals were asked which programs or policies they use currently to help retain employees.
The following three are the most common programs employers are using to retain employees:[/i][/b][/i][/b]
62 percent provide tuition reimbursement.[/i][/b][/i][/b]
60 percent offer competitive vacation and holiday benefits.[/i][/b][/i][/b]
59 percent offer competitive salaries[/i][/b].
HR professionals (71 percent), in large organizations (those with more than 500 employees), thought it would be extremely likely or somewhat likely to experience an increase in voluntary turnover once the job market improves. Forty-one percent from small organizations (1-99 employees) said it was extremely likely or somewhat likely that turnover would increase. Fifty-three percent of respondents from medium organizations (between 100 and 499) thought the same.[/i][/b][/i][/b]
Offer an attractive, competitive, benefits package with components such as life insurance, disability insurance and flexible hours.
Involve employees in decision making that affect their jobs and the overall direction of the company.
Recognize and celebrate success.
Staff adequately so overtime is minimized for those who don't want it and people don't wear themselves out.
Provide opportunities within the company for cross-training and career progression.
Provide the opportunity for career and personal growth through training and education, challenging assignments and more.
Communicate employee goals, roles and responsibilities so that they know what is expected and feel like part of the in-crowd.
Encourage employees to have good, even best, friends, at work.
Few of schemes for employee retention are as under:
1. Retention Bonus
2. Employee Reward program
3. Career Development program
4. Performance based bonus
5. Employee referral plans
Employee Reward Program
Career Development Program
Performance based Bonus
Employee Referral Plan
Loyalty Bonus
Giving a voice to the Knowledge Banks
Employee Recreation
Gifts at some Occasions
When an employee works for an organization he gathers detail knowledge about the organization, its competitors, working style, different projects etc. he leaving means loss of knowledge. When framing policies see to it that they are implemented too. They don’t act like the files and folders kept in any govt office. Also make sure that you don’t be stubborn with the policies to the extent that employees start resigning. Communication is the key to be a successful manager. Seeking help from individuals with expertise in specific areas is a sign of strength, not weakness. Managers, who continually focus on the negatives, end up with employees who are not motivated and often have one foot out the door looking for a more positive work environment. A common mistake made by managers is to delegate blame or simply not accept responsibility. Being in charge means taking responsibility for whatever happens. Once a manager has obvious favorites, he or she loses credibility and the respect of the rest of the team. Hence avoid favoritism. Well its common that new breed of managers is more tech-savvy. Embracing technology is a key to success, but not at the risk of embracing people skills.
The basic employee retention rate calculation, or the stability index, can be determined using the following easy formula:
Number of staff with one year or more of service/ Total number of staff on board one year ago X 100 = Employee Retention Rate
In a human resources context, turnover or staff turnover or labor turnover is the rate at which an employer gains and loses employees. Simple ways to describe it are "how long employees tend to stay" or "the rate of traffic through the revolving door." Turnover is measured for individual companies and for their industry as a whole. If an employer is said to have a high turnover relative to its competitors, it means that employees of that company have a shorter average tenure than those of other companies in the same industry. High turnover can be harmful to a company's productivity if skilled workers are often leaving and the worker population contains a high percentage of novice workers.
In the U.S., for the period of December 2000 to November 2008, the average total non-farm seasonally adjusted monthly turnover rate was 3.3%. However rates vary widely when compared over different periods of time or different job sectors. For example, during the period 2001-2006, the annual turnover rate for all industry sectors averaged 39.6% before seasonal adjustments, during the same period the Leisure and Hospitality sector experienced an average annual rate of 74.6%.