The current situation has made employee retention a top priority for organisations. It is common for employees to move to other companies once they have been trained. Lucrative salaries, comfortable timings, a better working environment, and growth prospects are some of the factors that prompt employees to seek a change. The management and human resource team are responsible for intervening immediately when a talented employee expresses a desire to move on and determining the exact reasons for his decision.
What is the Need and Importance of Employee Retention:
Let’s explore why it is crucial for a company to keep a valuable employee.
- Recruiting requires a lot of work. The
HR professionalshortlists a few candidates from a large pool of talent, conducts a preliminary interview, and eventually forwards it to their respective line managers. They then grill them further to assess if they fit in with the business. Selecting the right and suitable candidate is a time-consuming process
- Organisations invest time and money in grooming their employees and making them ready to work and understand the company culture. When an individual leaves an organisation suddenly, it’s a complete waste of time and money for the management to train him for his overall development. New recruits are completely raw, so the management has to put in a lot of work to train them. HR has to begin the recruitment process for the same position; it is a mere duplication of effort. Finding the ideal employee for a company is a difficult task, and all efforts are wasted when the employee leaves
- If an individual leaves his current company, he is more likely to join a competitor. Employees tend to take all of the strategies and policies of their current company to their new company. All the important data, information, and statistics are taken by individuals to their new organisation, and they sometimes even leak some of the organisation’s secrets. In order to avoid such situations, it is important to require a new employee to sign a contract which prevents him from revealing any information, even if he leaves the organisation. Employees should be restricted from joining competitors. This can be an effective way to retain them
- In addition to becoming more familiar with the company’s policies and guidelines, long-term employees perform better than those who change jobs frequently. Due to this, employees who have worked with an organisation for a significant amount of time are more knowledgeable about the organisation and are able to contribute more effectively to it
- Individuals who have been with an organisation longer tend to be more loyal to the management and organisation. Consequently, they are more attached to the organisation since they enjoy all its benefits. They rarely criticise their organisation and always support the management
It is important for management to understand the differences between valuable employees and employees who don’t contribute much to the organisation. Sincere efforts must be made to encourage employees so that they stay loyal to the current organisation and don’t seek a move elsewhere.