Employee Retention
How to Talented Employees Retention
Introduction
The world economic is in the stage of globalization. Businesses have to compete in many aspects in which quality is the most important factor (Barney, 1991). The quality affect in many departments, especially Human Resources (HR). More than ever, HR which bring the success or failure of business becomes scarcely. In fact, the hiring of skilled employees was difficult, but keeping them even harder. They leave after they have been trained or been experienced make most businesses to be in difficulties. It is believes that the only way to keep employees are clearly demonstrated their authorities and responsibilities in labor contract. However, that is not only way, the employee’s loyalty are not only work efficiency, commitment and determination to complete the work but also depends on the working conditions in which they are entitled (Armstrong, 2009). The argument will focus on: how to keep the talented employees? This essay refers to some methods and the keys factors to attract talented employees.
Why employee retention?
Hiring an employee is only a first step. Building awareness of the importance of the employee retention is essential. The costs associated with employee turnover can include lost customers and businesses as well as damaged morale (The Wall Street Journal). In addition, there are costs incurred in screening verifying credentials and references, interviewing, hiring and training a new employee (Mythri, 2006).
‘Fitz-enz (1997) stated that the average company loses approximately $ 1 million with every 10 managerial and professional employees who leave organization. Combined direct with indirect costs, the total costs exempt employee turnover is a minimum of one year’s pay and benefit or maximum of two year’s pay and benefits. There is significant economic impact with an organization losing any of its critical employees, especial given the knowledge that is lost with employee’s
Introduction
The world economic is in the stage of globalization. Businesses have to compete in many aspects in which quality is the most important factor (Barney, 1991). The quality affect in many departments, especially Human Resources (HR). More than ever, HR which bring the success or failure of business becomes scarcely. In fact, the hiring of skilled employees was difficult, but keeping them even harder. They leave after they have been trained or been experienced make most businesses to be in difficulties. It is believes that the only way to keep employees are clearly demonstrated their authorities and responsibilities in labor contract. However, that is not only way, the employee’s loyalty are not only work efficiency, commitment and determination to complete the work but also depends on the working conditions in which they are entitled (Armstrong, 2009). The argument will focus on: how to keep the talented employees? This essay refers to some methods and the keys factors to attract talented employees.
Why employee retention?
Hiring an employee is only a first step. Building awareness of the importance of the employee retention is essential. The costs associated with employee turnover can include lost customers and businesses as well as damaged morale (The Wall Street Journal). In addition, there are costs incurred in screening verifying credentials and references, interviewing, hiring and training a new employee (Mythri, 2006).
‘Fitz-enz (1997) stated that the average company loses approximately $ 1 million with every 10 managerial and professional employees who leave organization. Combined direct with indirect costs, the total costs exempt employee turnover is a minimum of one year’s pay and benefit or maximum of two year’s pay and benefits. There is significant economic impact with an organization losing any of its critical employees, especial given the knowledge that is lost with employee’s
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