Employee Retention is: Definition, Reasons, and Causes

YOGYAKARTA - Losing an exemplary employee can cause a lot of revenue loss for a company. That's why this should be one of the special concerns of every company, so that quality talents can be maintained. One way is employee retention.

However, sometimes companies find it difficult to manage company employee retention well. In fact, by prioritizing employee retention, companies can cut employee turnover costs and increase the overall performance of the organization.

What is employee retention?

As reported by the Harvard Business Review website, employee retention is an ability or effort of a company in retaining employees at work or in a company. The purpose of this retention is to retain the best and loyal employees at work for a long time.

The opposite of corporate retention is employee turnover. Turnover can occur if the employee cycle often leaves the company with various special reasons that make it uncomfortable for a long time.

Therefore, each company has a different retention rate. It can also be an indicator of how well the company manages its employees and the level of employee job satisfaction.

The Reason for Employee Retention is Important

There are several factors that make the existence of employee retention important for companies. Among them:

Stable productivity

Employees who work for a long time will add significant value to the company.

Why? Because they tend to be able to understand the company's vision more deeply, understand well how to meet the expectations of their roles, and have gained all the necessary skills to complete tasks more effectively.

Lowering the company's costs

Retaining skilled employees can be financially beneficial for companies. Basically, finding and recruiting new employees is very time-consuming and costly.

With the cost of employee turnover that can be suppressed, the company's finances will be invested more effectively.

Reduce training time

Employees who have had quite a long experience in a company have a higher sense of confidence and ability to carry out daily work.

Basically, new employees need time and training to adapt and build communication that can burden productivity for a while.

What Causes Low Employee Retention?

The urgency of managing employee retention arises based on the results of identifying several problems that companies often face. According to several field studies related to the level of employee retention of the Company, these problems include:

Toxic workplace

Based on the Real Estate Witch Great Resignation Survey, more than 30% of employees explained that a toxic workplace was the main reason they resigned from their workplace.

Management

Data from the 2021 People Management Report concludes that 60% of the 2000 employees resigned due to poor and inappropriate management of the company's management.

Underappreciated.

As many as 66% of company employees will resign unilaterally if they think their hard work is not appreciated or recognized by the company.

Burnout

From a survey of Deloitte to Gen Z and Millennials in the workplace, the opportunity to resign is quite large and is influenced by the imbalance of work-life balance and fatigue caused by too much work load.

Salary is not in accordance with

More than 60% of employees resign or quit their jobs because they think the salary they get is not in line with their responsibilities and are looking for the best salary and benefits in their positions at other companies.

Career growth

More than 60% of company employees say that their small chances for career growth have an impact on resignation. Next, look for companies with high opportunities for upward career mobility.

Flexible work options

The 2020 pandemic changed the trend of work patterns to be more flexible. Companies that do not follow this flexible work trend tend to have a high chance of their employees resigning.

That's a review of employee retention and some of the causes of low employee retention. Visit VOI.id for other interesting information.

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