HR Retention Policies

Every organization wants to create an environment where valuable employees are motivated to stay and contribute. A retention policy states management's commitment to implement strategies that keep employees satisfied, loyal and working to their full potential.

Significance

In a survey conducted by Spherion in 2009, 11 percent of workers said they voluntarily changed jobs in the past year. Workers ranked benefits and financial compensation as the top two factors why they would stay in an organization. Yet in the same survey, only 27 percent were very satisfied with their compensation levels. A satisfied workforce means less turnover, and less money, time and effort spent on hiring and training new employees.

Strategies

Although benefits and financial compensation are important for retention, organizations should look at other factors, such as management climate, supervisor relationship, company culture, development opportunities, work/life balance, training and employee recognition. The best retention strategies align employee motivations with company goals.

Sources of Information

Creating an effective retention policy requires reliable information. Organizations can look at employee surveys, HR metrics like turnover rates, case studies, best practices and published research studies for reference.

References

• University of Minnesota Board of Regents Policy: Employee Recruitment and Retention
• Society for Human Resource Management: Study: Economy Doesn't Change Workers' Retention Expectations

Resources

• Society for Human Resource Management: Employee Retention Strategies for Small Organizations