Employee retention

Employee retention refers to an organization's ability to keep talented employees with the company, rather than having them leave. It can be measured using the following formula:
(total number of employees - employees who have left) / total number of employees X 100.

Why do employees leave the organization?

Several factors can influence employee retention rates, including a lack of fulfillment and motivation within the company. Attractive communication from competitors, general dissatisfaction or a poor corporate culture can prompt employees to seek better opportunities elsewhere.

That's why it's essential for managers to understand their teams' needs and offer them development opportunities to build loyalty.

Why is employee retention strategic?

Employee retention is a key asset for organizations for several reasons:

• Cost reduction: Training an employee represents a lost investment if he or she leaves the company. What's more, recruitment is costly and time-consuming.
• Organizational stability : When departures are limited, teams are not disrupted by change.
• Sustainable performance Employees who stay with an organization for a long time better understand its vision, develop valuable skills and add value.
• Maintaining competitive advantage : An employee who leaves the company may join a direct competitor, taking his or her expertise with them.

Strategies for improving employee retention

To encourage employee retention, companies implement various strategies, often as early as the onboarding process, to integrate new employees into the corporate culture and direct them towards appropriate training.

Here are some common practices for maintaining a motivating work environment:

• Offer challenging assignments: Offering opportunities to acquire new skills enables employees to grow and strengthens their commitment.
• Offer competitive benefits: Health insurance, bonuses, raises and other benefits help to build loyalty.
• Encouraging professional development: Training employees in cross-disciplinary skills keeps them motivated and enables them to grow in their careers.
• Establish a succession plan: Showing employees where they stand in the organization and what growth opportunities are available creates a sense of security and enables them to set themselves a goal.

To find out more, read our white paper "How to build employee loyalty and prevent quiet quitting?"