Retaining employees is an essential part of both workforce
optimization and business productivity. Employee turnover generally causes disruption, expense, and recruitment costs, so it is an imperative for most companies to increase retention rates and grow their employment brand and reputation.
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Retention is the rate at which a company prevents turnover of workers and also how well it handles talent management. The goal of the HR department in retention should be to decrease turnover to the minimum level possible and develop the workforce into a greater asset through training and rewards for performance and tenure. This will decrease recruitment costs, training costs, and the loss of organizational talent and knowledge.
Retention is maximized in a company by creating a "win-win" situation between management and employees, where the needs of the employee are met to the best extent possible without sacrificing or losing sight of the needs and goals of the company. There are many and various strategies and incentives that a company may offer to its employees to increase retention and decrease turnover. Competitive benefits packages that fit the needs of the employees, small perks that are inexpensive but have psychological impact such providing as coffee and bagels in the mornings, contests or incentives, and clear communication of goals and expectations all can go a long way toward employee satisfaction. Promoting from within also provides a positive culture experience. Conducting "stay interviews", similar to exit interviews, can offer insight from tenured employees as to why they have remained with the company and help to build an effective employment brand.
A retention rate of 100% is not a desirable thing, because while staff development and value creation through human capital investment are vital, there will always be employees who need to be separated from the company for some reason. A 90 day evaluation period with new hires combined with stringent hiring practices can help to ensure that the post-evaluation period retention rate stays at a high level.