Employee retention and productivity
CHAPTER ONE INTRODUCTION Background of the Study
Employees are a valuable asset to any organization. It is essential to protect this vital resource as talented and motivated employees play a crucial role in overall growth and success of the organization. Retention of key employees is critical to the long term health and success of any organization. Focusing on employee retention techniques can positively impact the organization as it increases employee productivity, performance, quality of work, profits, and reduce turnover and absenteeism.
Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Effectively creating an engaging environment, recognizing good performance, giving benefits and rewards, promoting mutual respect are some of the ways for effective employee retention.
Employee retention is beneficial for the organization as well as the employee. Employee retention matters as organizational issues such as training time and investment; lost knowledge; insecure employees and costly candidate search are involved. Hence failing to retain a key employee is a costly proposition for an organization. Various estimates suggest that losing a middle manager in most organizations costs up to five times of his salary. It is a known fact that retain your best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning and deeply imbedded organizational knowledge and learning.
From an employee perspective, consultants feel that people are looking for breadth of role more than monetary benefits and promotions. Promotions and financial perks do have their attraction, but to an extent, these are knee jerk reactions from companies and may
Employees are a valuable asset to any organization. It is essential to protect this vital resource as talented and motivated employees play a crucial role in overall growth and success of the organization. Retention of key employees is critical to the long term health and success of any organization. Focusing on employee retention techniques can positively impact the organization as it increases employee productivity, performance, quality of work, profits, and reduce turnover and absenteeism.
Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Effectively creating an engaging environment, recognizing good performance, giving benefits and rewards, promoting mutual respect are some of the ways for effective employee retention.
Employee retention is beneficial for the organization as well as the employee. Employee retention matters as organizational issues such as training time and investment; lost knowledge; insecure employees and costly candidate search are involved. Hence failing to retain a key employee is a costly proposition for an organization. Various estimates suggest that losing a middle manager in most organizations costs up to five times of his salary. It is a known fact that retain your best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning and deeply imbedded organizational knowledge and learning.
From an employee perspective, consultants feel that people are looking for breadth of role more than monetary benefits and promotions. Promotions and financial perks do have their attraction, but to an extent, these are knee jerk reactions from companies and may
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