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Why Employee Retention is Important in Organizations?

HR Tech Outlook | Wednesday, April 14, 2021

Why Employee Retention is Important in Organizations? When an employee leaves, there is an inevitable interruption in efficiency, and while this change does not affect the quality of service you do provide your customers, it is possible that service levels will drop.

FREMONT, CA: Many companies say that their most valuable resource is their employees. This holds true for any business, big or small. Companies that are often mentioned as the best places to work concentrate not only on delivering excellent working conditions but also on ensuring that their workers are highly involved. These businesses have realized that employee retention is an integral part of running a successful company. Employee retention should be a priority in your HR strategy because professional talent is not only difficult to attract but also challenging to keep.

When an important employee leaves, there is an inevitable interruption in efficiency. While this change does not affect the quality of service you do provide your customers, it is possible that service levels will drop. And employee turnover can be harmful to any company, large or small.

Having the opportunity to increase employee satisfaction will save the business a lot of money. Several studies have shown that losing an employee will cost an organization tens of thousands of dollars, or 1.5 to two times the employee's annual salary in some cases. Turnover rates differ by industry. Retail, customer care, and the hospitality sectors have higher turnover rates, reaching 40-50 percent in some cases.

As a consequence, some businesses try to gauge or even consider high turnover. They strive to make it simple to replace people who quit by providing what they consider to be polished training programs that make it simple for others to take over. Although it's not always the right plan, it's a viable option for some businesses. Regardless, there is a cost involved, and if service levels deteriorate, you risk alienating your customer base.

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