How Does Organizational Structure Impact Retention?

An organizational structure is a framework outlining how a company divides its responsibility among managers and employees. Organizational structures can help companies retain employees because the framework takes the subjectivity out of the chain of command, among other benefits.

Background

Employee retention is how a company focuses on keeping employee turnover low and ensuring the most experienced workers stay employed by the company. Organizational structures can set a minimum level of expected employee behavior.

Features

Organizational structures often include the company's mission or vision statement. Along with this information, companies may include information on benefits for employees who achieve certain goals or objectives in the company. This promotes good behavior and employee retention.

Considerations

Companies may find employees are not entirely interested in compensation as rewards. Organizational structures that offer job growth and employee development may retain employees for longer periods of time as they desire to learn more about the company and improve their job skills.

References

• Chicago Job Resource: Employee Retention Part 2 of 5
• The Rainmaker Group: 10 Things That Can Impact Employee Retention