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What is Employee Retention?

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Employee Retention is the act of proactively working to keep your employees just that�your employees. It�s estimated that 55 percent of employees plan to quit or often think of quitting at any given time, according to a survey conducted by Sibson & Company. And employees who quit end up costing you big bucks, in terms of:

lost productivity

flagging employee morale

frustrated customers who have to keep switching contacts at your company

the costs incurred for exit interviews

administrative functions related to termination

separation/severance pay

any increase in unemployment compensation.

Then there�s the costs incurred in finding a replacement. The cost of replacing an employee is about 30 percent of that employee�s salary. And if more than half of your employees quit each year, as the Sibson & Company suggests, that�s a staggering cost! Here�s what you may have to pay for to find a new employee:

attracting applicants

entrance interviews

testing

travel/moving expenses

pre-employment administrative expenses

medical exams

acquisition and dissemination of information.

All told, you see that employee retention is big business. And whatever you spend to keep your employees�assuming they are ones you want to keep�will be well worth it if you don�t have to pay the above-mentioned costs.

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