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Successful employee retention is essential to an organization's stability, growth and revenue. Organizations can achieve employee retention by developing four strategies. First, effective communication should be encouraged. Second, hire a diverse workforce. Third, hire appropriately skilled people. And finally, offer employees development and training programs. Our paper discusses these components which contribute towards employee retention strategies. Without properly implemented strategies for employee retention, the organization may face high employee turnover rates. The bottom line is that increased longevity of an employee's tenure is better for the organization's overall performance. We offer a series of recommendations to help managers improve retention.
INTRODUCTION
High employee turnover increases cost in resources, recruiting, and time when replacing open positions. Expense to the organization for recruiting a new employee costs half to 200% of the former employee's salary (Hebenstreit, 2008). The increased cost related to recruitment includes advertising and overlapping of salary; making it difficult to maintain positive employee culture and morale. High employee turnover also leads to missed opportunities for meeting production matrices and budgets set within the departments, adding additional cost to the organization.
A report distributed by the Society for Human Resource Management SHRM (2004) states that 75% of employees are actively seeking a different job. This high percentage should alert employers whose bottom line is dependent on employee productivity. The survey shares that 43% are looking for a new job to receive better compensation, 32% for better career opportunities and 22% are dissatisfied with opportunities at their current job (SHRM, 2004). Organizations, which understand this and develop strategies to addresses these concerns become employers of choice (Dibble, 1999, p. 216). This means being an employer who knows that workforce diversity, quality talent and relational growth determine the stability of the workplace.
We explored additional literature that suggest measures to increase employee retention and explicates the employee selection process. First, an organization's should establish a proficient communication process. Leadership must effectively understand and operate within the five levels of communication: intrapersonal, interpersonal, group, organizational and intercultural in order to maintain a healthy work culture for its employees, which is illustrated in table 1 (Bell & Martin, 2014). Second, there must be transparency on the part of the applicant. This allows the organization to examine the applicant...