The Society for Human Resource Management defines employee retention as the rate at which organizations maintain employees in positions. Employee retention is the opposite of turnover, which can have extreme costs, both financial and non-monetary, for the organization. Businesses that conduct effective employee retention strategies are better able to protect organizational resources than those that experience high turnover rates.
Increasing employee engagement is another common objective of employee retention. Without proper management, employee retention issues can have an extremely negative effect on organizational finances. Howard Adamsky, author of "Employee Retention: Notes from the Underground," says, "Poor retention creates a "revolving door" culture within the organization, lowering morale and confidence." Low morale, as well as low levels of confidence in the organization, can affect employee job satisfaction and productivity, which in turn affects the organization's bottom line.
Reducing Turnover Cost
The reduction of the costs associated with high turnover is also a typical objective of employee retention. Turnover costs the organization time, money and a variety of other resources that are not always easily accounted for. For example, according to the Employee Retention Strategies website, high turnover also increases "job stress when remaining employees are burdened with the distribution of the departed employee's workload."
The retention of knowledge and skills is a common objective of employee retention and is essential to the long-term success of the organization. High turnover rates result in what is referred to in human resources as "brain drain." This occurs when an organization is unable to maintain employees who are knowledgeable about the organization. Without access to such knowledgeable employees, organizations lose knowledge that is typically passed on from employee to employee rather than imparted in formal training programs.
Maintaining a diverse work force is another common objective of employee retention strategies. Diversity includes workers of varying sexes, ages and races as well as educational and workplace experiences. This is difficult to maintain within an organization that experiences high turnover. According to the Society for Human Resource Management website, organizations that maintain high retention levels, "typically have strong, sustainable corporate cultures that can act as key differentiators in the marketplace."
How to Write Employee Performance Objectives
Employee performance objectives must be clearly written to describe what an employee is expected to do to meet specific job requirements. To...
Purpose of Employee Benefits
Employee benefits are those services such as health care and retirement funding that companies offer to their employees in addition to the...
Employee Retention & Turnover
Human resources professionals continually work to control their companies' employee retention and turnover rates. Retention is the term given to keeping loyal...
Objectives for Employee Relations
Employee relations are the ways in which the company interacts with the staff, delivers policy information and works to create a more...
HR Management Objectives
Successful human resources management enables a firm to thrive, but for HR management to succeed, the team must have clear objectives. Three...
The Definition of Employee Retention
Employee retention is the act of keeping employees. Webster's Dictionary defines retaining as keeping in one's pay or service. Unless it needs...
Objectives of Motivation in the Workplace
Having motivated workers has shown to be linked with higher job satisfaction, increased performance and retention. Motivated workers are willing participants in...
Sales Performance Objectives
A sales objective is a goal established for quantifying the success of a company's sales or its sales staff. Companies set objectives...