Employee Retention
Applied H.R.M. Research, 2003, Volume 8, Number 2, pages 63-72
Organizational Application Managing Employee Retention as a Strategy for Increasing Organizational Competitiveness
Sunil Ramlall, Ph.D. University of St. Thomas
Research indicates that the total cost of employee turnover is about 150% of an employee’s salary. Because of this high cost of turnover, the organization that is the focus of this article sought to understand their employee’s turnover intentions and the reasons for the potential turnover. Through a series of surveys, observations, and interviews, it was determined that the location of the company and its compensation package were the most common factors in remaining with the company and that compensation and lack of challenge and opportunity were the most common factors in contemplating leaving the organization.
Purpose of the Study The purpose of this study was to determine the factors that most significantly influence employees’ decisions to remain employed at a particular organization and possible reasons for choosing to leave. In addition, the study sought to describe the importance of retaining critical employees and developing strategies to enhance employee retention practices. The importance of this issue is demonstrated by the finding that 86% of employers experience difficulty attracting new employees and 58% experience difficulty retaining their employees (Hale, 1998). The results of the current study can be used by organizations to develop policies, practices, and strategies that would enable higher levels of employee retention and create greater efficiencies in meeting strategic business objectives. The Cost of Employee Turnover Abbasi and Hollman (2000) sought to determine the impact of employee turnover on organizations and found that excessive employee turnover often engenders far-reaching consequences and, at the extreme, may jeopardize efforts to attain organizational objectives. In addition, Abbasi and Hollman (2000)
Organizational Application Managing Employee Retention as a Strategy for Increasing Organizational Competitiveness
Sunil Ramlall, Ph.D. University of St. Thomas
Research indicates that the total cost of employee turnover is about 150% of an employee’s salary. Because of this high cost of turnover, the organization that is the focus of this article sought to understand their employee’s turnover intentions and the reasons for the potential turnover. Through a series of surveys, observations, and interviews, it was determined that the location of the company and its compensation package were the most common factors in remaining with the company and that compensation and lack of challenge and opportunity were the most common factors in contemplating leaving the organization.
Purpose of the Study The purpose of this study was to determine the factors that most significantly influence employees’ decisions to remain employed at a particular organization and possible reasons for choosing to leave. In addition, the study sought to describe the importance of retaining critical employees and developing strategies to enhance employee retention practices. The importance of this issue is demonstrated by the finding that 86% of employers experience difficulty attracting new employees and 58% experience difficulty retaining their employees (Hale, 1998). The results of the current study can be used by organizations to develop policies, practices, and strategies that would enable higher levels of employee retention and create greater efficiencies in meeting strategic business objectives. The Cost of Employee Turnover Abbasi and Hollman (2000) sought to determine the impact of employee turnover on organizations and found that excessive employee turnover often engenders far-reaching consequences and, at the extreme, may jeopardize efforts to attain organizational objectives. In addition, Abbasi and Hollman (2000)
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