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1.

WHY RETENTION MATTERS

Hiring an employee is only a first step. Building awareness of the importance


of employee retention is essential. Employee retention is defined as a
systematic effort by employers to create and foster an environment that
encourages current employees to remain with the organisation.
The costs associated with employee turnover can include lost customers and
business as well as damaged morale. In addition, there are costs incurred in
screening, verifying credentials and references, interviewing, hiring and
training a new employee. The direct and indirect costs associated with
employee turnover can range between 70 and 200 per cent of salary.
Workplaces that demonstrate the value they place in their employees and
that put into place policies and practices that reflect effective retention
practices will benefit, in turn, from worker commitment and productivity.
A strategic approach to employee retention may include adopting effective
methods of engagement, safe and healthy workplaces and creating flexible
work arrangements. Retention practices help create an inclusive and diverse
workforce where barriers are reduced and individuals can participate in the
workplace.
Retention strategies strengthen the ability of businesses to attract and retain
their workforce. Once the right staff persons have been recruited, retention
practices provide the tools necessary to support staff.
Creative strategies that go beyond pay and benefits can be employed to
attract and retain employees. Recognition, flexible work arrangements, worklife balance, employee engagement, health and safety, communication,
workplace diversity, formal wellness programs, inclusion and employee
development are some examples of approaches that can become a part of
the mix when developing retention strategies.
2. CHALLENGES IN RETAINING EMPLOYEE

When asked about why employees leave, low salary comes out to be a
common excuse. However, research has shown that people join companies,
but leave because of what their managers do or dont do. It is seen that
managers who respect and value employees competency, pay attention to
their aspirations, assure challenging work, value the quality of work life and
provided chances for learning have loyal and engaged employees. Therefore,
managers and team leaders play an active and vital role in employee
retention.
Managers and team leaders can reduce the attrition levels considerably by
creating a motivating team culture and improving the relationships with team
members. This can be done in a following way:

Creating a Motivating Environment: Team leaders who create


motivating environments are likely to keep their team members
together for a longer period of time. Motivation does not necessarily

have to come through fun events such as parties, celebrations, team


outings etc. They can also come through serious events e.g. arranging
a talk by the VP of Quality on career opportunities in the field of quality.
Employees who look forward to these events and are likely to remain
more engaged.

Standing up for the Team: Team leaders are closest to their team
members. While they need to ensure smooth functioning of their teams
by implementing management decisions, they also need to educate
their managers about the realities on the ground. When agents see the
team leader standing up for them, they will have one more reason to
stay in the team.