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The Importance of Employee Retention

19 Agustus 2021   07:13 Diperbarui: 19 Agustus 2021   07:21 49
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Employee retention is how the company keeps or retains their employee. There is a way to win for the talent. A company should do an effort to maintain the working employment which supports the remaining staff in the company. 

Top reasons why employee leaves the company are compensation and benefit, environment, team relationship, lack of career growth, and lack of support. 

Compensation and Benefit Compensation contributes the largest part of the retention process. The employee always has high expectation regarding their compensation packages. Compensation and benefit includes: Salary and wages, service charge, meals, bonus, health and life insurance, transportation, leave/vacation, accommodation. 

The second is career growth. If an employee can't foresee his/her path of career development organization, there are chances that he/she will leave the company opportunity. 

The way to overcome this are by identify high potential and personal development plan and succession planning: who's going to replace him/her? 

The third is relationship. Relationship with direct manager, your line staff, colleagues in other department, and owner. The way to overcome this are by making supportive work culture with team building activities and avoid personal conflict or office politics. The fourth is environment.

A motivated employee wants to contribute to work areas outside his/her specific job description. The employee usually wants safe working environment, staff facilities (lockers, canteen), and drugs in workplace. If the employee like the working environment, they will enjoy their work and gives best performance. 

The last is support. Employees today are asking for a workplace that helps them balance the demands of their work and family life.

Employee retention is very important because the longer employees stay the more skills they will have so the company doesn't need to spend money to replace employee. The new employees need job training and it is a waste of resources. The manager just only keeps training new employees. This things will inhibits company growth and development.

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