Employee Retention is a process of encouraging existing employees to remain with their organization for the maximum period of time or until successful completion of certain activities or projects. It is a component of the employee management process to create working conditions that stimulate employees to stay in their jobs as long as required by their employer. Employee retention is opposite to employee turnover, so when turnover is low, then retention is high.
The ability of an organization to retain its workforce is called the employee retention rate. There are four ways to improve this rate. The ways are:
- Motivation. A motivated worker has more reasons to do a job rather than an unmotivated worker. Employees can be motivated financially (salary increase, bonuses) and non-financially (extra day-offs, recognition, promotion etc.).
- Satisfaction. Satisfied employees work better and have boosted morale because they’re happy and contented with fulfilling their desires and needs at workplace.
- Right Allocation. If human resources with appropriate skills and knowledge are allocated in the right way, then they can easier do every kind of work.
- Communication. The employee retention rate gets increased if employees can efficiently communicate with co-workers and senior management.