How to Retain Employees | Employee Retention | Turnover (Employment)

How to Retain Employees

Now that so much is being done by organisations to retain its employees, why is retention so important? Is it just to reduce the turnover costs? Well, the answer is a definite no. Average attrition rate in hospitals is about 15 to 25 per cent. Apart from turnover costs, there are several other reasons why the process of employee retention will benefit an organisation: • The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of rupees to a company's expenses. Turnover costs include hiring costs, training costs and productivity loss. While it is difficult to get the exact estimate of turnover costs, industry experts often quote 25 per cent to 30 per cent of the average employee salary as a conservative estimate. Interruption of Patient Care: Patients most often come to a hospital in part because of the people. Relationships are developed that encourage comfort and care for a patient. When an employee leaves, the relationships that he/she built for the hospital are severed, which could lead to potential customer loss. Also, continuity of care is severed, which causes a lot of discomfort for the patient leading to dissatisfaction. Lost Productivity: If an employee resigns, then good amount of time is lost in hiring a new employee and then training him/her, and this goes to the loss of the hospital directly, which many a times goes unnoticed. And even after this you cannot ensure the same efficiency from the new employee. Attrition leads to more attrition: The effect of attrition is felt throughout the organisation. Coworkers are often discouraged and the negativity affects the remaining staff and some more people may eventually leave. Loss of Internal Information: When an employee leaves, he takes with him valuable internal information, customers, current projects and past history (sometimes to competitors). Often much time

Encourage learning through training programmes. There should be a specific framework that clearly gives him his job description. Respect them and appreciate them.) Give your employees greater control on the processes and authority to take decisions in their present job. picnics. This will induce a sense of pride in the employee and will improve the relationship between the management and the employee. Every human appreciates being appreciated. Infact employees feel more responsible. Make work fun! Give people the best equipment and supplies possible. Train your frontline. part time possibilities. The quality of the supervision an employee receives is critical to employee retention. Show your employees that you value them. Foster an environment of teamwork that in turn increases productivity. Make room for fun—all work and no play makes Jack a dull boy—e. Give convenience-convenient hours. When the employee leaves. if they are given extra responsibilities apart from their regular job. • Provide adequate advancement opportunities with a clear career path and develop an effective orientation and induction programme. services on job location etc. Communicate openly.and money have been spent on the employee in expectation of a future return. The ability of the employee to speak his or her mind freely within the organisation is another key factor in employee retention. supervisors and administrators. there is nothing at more important than communication. the investment is not realised.g. Management can assign extra responsibilities to their employees and appreciate them on the completion of these tasks. celebrations etc. tuition reimbursements and initiate on job . • • • • • • • • • A satisfied employee clearly knows what is expected from him every day at work. (Yes. his mother’s health and his son’s cricket match are important.

At most times. by making someone accountable for retention within your HR department and conducting employee satisfaction surveys. for instance. Pay your best employees above average salaries. Sometimes you will be surprised at how small issues like availability of coffee in the pantry can improve employee satisfaction and retention. Recognise an employee’s achievement and reward him accordingly because bonuses and perks go a long way in employee satisfaction. Inculcate long term retention schemes like gratuity etc. Give out bonuses on the success of both the employee and the organisation and make it limitless within company parameters (for example. Offer fair and competitive salaries. boost employee morale and hence achieve retention. This goes a long way in retaining your clinical employees. though this is not the most important factor in employee retention and ranks lower. . The aforementioned can be achieved by addressing small issues. these strategies are not used properly or even worse. Let an employee use his varied skill set in multiple areas exposing to different facets of work. Retention Strategies The practice of retention is not as easy as it seems. you cannot ignore the importance of fair compensation. There are so many tactics and strategies used to enhance retention. Incorporate an objective performace management system that evaluates KRAs twice a year. This inculcates a sense of responsibility. wrong strategies are used due to which the desired results are not achieved. Hire non clinical aides to assist the clinicians. pay ten percent of organisation’s profits to employees).training programmes. but the basic purpose is lost which should be to increase employee satisfaction. Write a mission statement for each department and lay out goals for each employee.

authority. Your people are your biggest asset. retain the better ones.they are free of cost. An employer or management that reacts well to the employee’s ideas and suggestions is enough for the employees to be retained. flexibility. fun and convenience. What really glues employees to their work and organisation is quality work. The things actually required to improve employee satisfaction like respect.There are many myths related to the employee retention process. reliable. and unswerving personnel harbouring bright new ideas for its growth. growth opportunities and friendly supervisors. meaningful responsibilities. the company is benefited with stronger. etc cannot be bought. learning. These myths prevent the employer from successfully implementing the retention strategies. career growth and development. respect. appreciation. Few common myths include increasing salary and incentives. Job satisfaction is more important in key positions where people do not have to fight for survival. It is also a myth that taking measures to increase employee satisfaction will be expensive for the organisations. invest in them! Attract good people. Enough emphasis cannot be laid on importance of these factors over compensation. Money is not the only driving factor. and advance the best! . In a milieu where employees get a sense of achievement and belongingness from a healthy work environment. We belong to the millennium workforce that needs independence. recognition.

Sign up to vote on this title
UsefulNot useful