Tackling a poor retention rate helps your business to avoid these costs. The high cost of recruitment, onboarding, training and development is one reason why it is important to track employee retention rates. Is it important to track employee retention rates? We’ll also touch on a range of other methods for improving retention rates and building a better people strategy, as well as some examples of how to calculate employee retention rates for your company. In this article, we’ll look at how you can use performance management tools to collect this and other relevant data. With voluntary turnover costing up to $1 trillion annually for American businesses, it’s vital that companies conduct an employee retention rate calculation. Other, not so obvious factors, such as supervisor performance, were also included.” The factors included obvious things like present and past work performance, span of control, level, benefits, and salary. “They conducted initial meetings with the client to develop a variety of diagnostic factors that would aid in predicting those employees who were likely to leave. This means drawing on a range of tools and analytics to better understand the driving forces and how to minimise their influence.Ī report from Deloitte discusses how predictive analytics can play a role in reducing voluntary turnover. If there is a high level of voluntary turnover, the company must take steps to address the root causes of why employees are choosing to leave. In addition, failure to retain great employees adds extra costs for further recruitment, training, and development. High turnover rates can often mean the company has failed to create a culture and workplace that keeps employees productive and engaged. The employee retention rate is a simple way for business leaders to measure how successful they are at keeping the best employees. As companies move from the Great Resignation to the Great Retention, maintaining a healthy retention rate is essential. What is the employee retention rate and why is it important?Īttracting and retaining the best talent is essential for organisational growth. Read on to find out how to conduct an employee retention rate calculation and the measures you should take to ensure the right employees stay with your company. When top talent leaves a company, overall engagement and performance can take a hit, along with the bottom line. As an increasing number of employees are choosing to move jobs, understanding your company’s employee retention rate is essential.
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