Advantages of Employee Retention? Benefits

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Advantages of Employee Retention? Benefits
I would like to know what is the significance of employee retention in HRM practice? Who has a good list of benefits / advantages of keeping employees onboard? Thanks in advance.

Importance of Retention
Suman Pathak, Member
Why retention is important for a company?

Employee Retention is Important
Srinivasan, Member
Effective face-to-face dialogue with employees by leaders and also explaining to the employees as to what is in it for me from employees perspective, before we can expect deliverables.

The Main Advantages of Employee Retention - Benefits
Jaap de Jonge, Editor
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.

Employee Retention Strategy
Employers should focus on retaining the best employees rather than new recruits. Employers should keep in mind that employees' loyalty results from the policies of the organisation.
But even an organisation that is like a 'home' and has employees that are all 'family members' should consider that all members of the family are not the same. They are different by their personality, behavior, etc. Hence it is necessary to make an employee retention strategy taking these aspects into consideration.


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