Employee retention (or HR retention) is the ability of a company to retain its employees.
It may appear trivial. It does not seem so if we think that, according to the latest “Securing the Future of Work” report by Kaspersky, 32% of Italian employees are thinking of changing jobs.
PERSONNEL SEARCH AND SELECTION: ONLY THE FIRST STEP
Over the last few months I have done a lot of work, for various companies, on personnel selection. For companies, the moment of searching for and selecting a new figure for the workplace is a fundamental and delicate moment.
It requires great concentration to get the right person for that role, for that team, for that company and for its needs.
Easy to say, complex to do. But this is not the place to talk about recruitment, I have already explored the subject in another article(Recruitment and its two points of view).
Now, let us assume that the selection was successful, that the right resource was found at the right time, and that the company is satisfied with the new placement.
Excellent! And now? What’s next? One may think the most complex part is over, but that would be completely wrong!
In addition to the issues ofonboarding andcorporate engagement, key dynamics that come into play following a new hire, there is a concept that I, as an insider, wish to address.
EMPLOYEE RETENTION: THE COMPANY’S ABILITY TO “RETAIN” ITS EMPLOYEES.
The term ‘employee retention’ refers to an organisation’s ability to retain its employees within the company, once they have been selected.
Although it is often represented by a simple statistic (employee retention rate), it is actually the result of a series of company policies that allow the company to increase the level of satisfaction of its employees and gain an important competitive advantage over its competitors”.
THE EXPENSES OF A COMPANY THAT DOES NOT WORK ON EMPLOYEE RETENTION
The lack of employee welfare can affect the economic and structural stability of the company. And this is usually a symptom of deeper issues that one must eradicate at all costs if one wants to prosper.
Employee turnover has a huge and very serious impact on the company. The employee may have left the company for various reasons (psychological malaise, relational difficulties in the team, mobbing, for economic reasons, etc.). However, it is not taken into account that this continuous replacement costs much more than the salary of the new worker.
The following must also be added:
- the costs of supporting the selection and evaluation process of profiles;
- the cost – in terms of time – to train the new resource;
- the cost – in terms of energy – to make the new resource feel as integrated as possible, especially in the early days;
and so on.
These expenses, which are not immediately tangible, have a significant impact on the budget and the people working in the company. Employee Retention is a mechanism that each company can (or rather, must!) constantly improve upon.
HOW TO PREVENT COMPANY TURN OVER?
A good starting point is to leave a good first impression with candidates who come into contact with the company.
If we think about it, we know that the first impression on the candidate is of great importance for the company. However the opposite is also true. The candidate’s first impression of the company can influence him/her positively or negatively and thus influence his/her choice of job.
The focus on the use of the hyped Soft Skills is also extremely important. Soft skills are defined as all those transversal skills that enable us to enter into a deep relationship with the person in front of us, be it our family member, friend or colleague.
A good awareness of soft skills, the perception that we are all part of one team, the desire to collaborate and cooperate, are all aspects that positively influence Employee Retention.
EMPLOYEE RETENTION: THE IMPORTANCE OF WORKING OVER THE LONG TERM
In relation to the above, strengthening long-term relationships with employees “is a necessity for any organisation that places talent at its core”. Building a strong community and increasing employee engagement by building strong relationships “is the key to success”.
It must also be remembered that relationships are always two-way.
Companies and their business owners must pay attention to the needs, concerns and ambitions of employees. This aims to facilitate a good work-life balance by avoiding thinking only about what workers can do for them and their business.
In other words and to summarise: organisations are made up of people, each of whom is different, working under the same roof and for the same goal. Knowing how to manage one’s human resources will ensure the company’s success in terms of corporate welfare and turnover.
Dr Alice Vignudini
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