What is retention?
Retention is an organization's ability to retain its employees. Retention is usually represented as a percentage. When you have a retention rate of 80%, it means that an organization retained 80% of its employees that year and lost 20%.
Why is retention important?
When an employee leaves your organization, it can cost a lot of money. In addition, high turnover can reduce productivity and prevent goals from being achieved. The retention rate gives you insight into the number of employees leaving your organization. This percentage shows whether there is any room for improvement.
How can you increase retention rates?
When the retention rate is very low, that is, when many people leave the organization, it is important to improve it quickly. Improving retention rates certainly does not always have to be difficult and expensive. First, it is important to offer employees a development perspective. What steps can they make in their current position and how can they get here? If employees cannot grow and develop, they will quickly look for another job. Does this happen often? Then your retention rate will be lower. A development perspective does not always have to mean a vertical step. An employee can also develop broadly, becoming an expert in a particular area, for example. In addition, it is important to put the right employee in the right place. This will allow an employee to reach his or her full potential and be less likely to leave the organization. Finally, it is important to give employees regular feedback. Show interest in your employees and be sure to give recognition when they do something well.