Jobs, Careers, Employment, Aarknet

Effective employee retention is the key to attain both competitiveness and profitability of the business. Long term health and success of the business is hampered when employers do not follow a systematic effort to create and foster an environment that encourages current employees to remain employed.

The replacement costs are about 1.5 times the salary of the individual. These include lost business, damaged morale and the hard costs of new recruitment. Various estimates suggest that losing a middle manager costs an organization up to 100 percent of his salary. The loss of a senior executive is even more costly.

Some of the common reasons identified for leaving current jobs, besides increased pay, include better employment opportunities, career advancement, and improved work environment.

Effective Employee Retention Measures:

For top performers, money is not the only motivational factor. In fact, it is fourth in rank on a list of ten most important measures, preceded by having a challenging job, honesty and open work environment, and recognition of work.

The following measures will prove more useful for businesses in retaining their current pool of talent:

• Providing effective training and career development opportunities that lead to the professional growth
• Defining a clear career path for the individual
• Improved supervision as people tend to leave supervisors more often than the companies
• Involving the employee in the decision-making process
• Utilizing the innate talents and skills
• Effective work appraisals and recognition for performance
• Making work more fun and rewarding