The Main Advantages of Employee Retention - Benefits
Jaap de Jonge, Management Consultant, Netherlands
As Beverly Kaye and Sharon Jordan-Evans stated in Training and Development (Retention: Tag, You're It!" Training and Development. April 2000): "Studies have found that the cost of replacing lost talent is 70 to 200 percent of that employee's annual salary. There are advertising and recruiting expenses, orientation and training of the new employee, decreased productivity until the new employee is up to speed, and loss of customers who were loyal to the departing employee. Finding, recruiting, and training the best employees represents a major investment. Once a company has captured talented people, the return-on-investment requires closing the back door to prevent them from walking out."
Also there is always a chance that employees will take important business strategies and secrets with them that could be exploited by a competitor.
Make sure you also refer to "organizational commitment
" for more background about employee retention.