Employee retention refers to a company's ability to keep its workers for a long time. This is important since a high employee turnover can increase expenses and even slow down productivity in the workplace. Thus, employers must actively plan and execute strategies that will make their best workers stay. Here are a few tips to keep in mind when your company is trying to measure and manage employee retention.
How to Measure Employee Retention Rate
To start, knowing your company's employee retention rate will help you strategize accordingly. Start by subtracting the number of employees that have left the company within a specific period from the total number of employees, then divide the result with the total number of employees. For example, if you have 100 employees and 4 of them leave within one month, your retention rate for that period is 96%.
Employee Retention Metrics to Consider
Employee Happiness
A happy employee is likely to work in the organization for a long time. But how can a manager or team leader measure and track employee happiness?
Communication is key to finding out what drives employees to leave or encourages them to stay. Often, the reason for leaving can be about things you can control, like pay or roles within the business. They might also feel like they are not getting enough support or want better equipment to match their talent. It might also be about things you cannot control, like moving to be with a spouse or to study. In any case, keeping communication open and building proper communication channels between the employees and their supervisors will help you anticipate such challenges.
Voluntary Turnover
Voluntary turnover is when an employee leaves a job. A high voluntary turnover rate can be an indication that workers are not happy with the company. Communication is key here as well, so make sure you are constantly checking up on your workers. If a problem arises, make sure to take care of it as soon as possible.
Retention Rate Per Manager or Department
Is a specific department or manager recording a high turnover rate? If so, it may be because of an underlying problem affecting the whole department or team. In this case, your HR manager should conduct thorough investigations to identify the problem. On the other hand, if certain managers are recording low turnover rates, you can also find out what they are doing differently and use their strategies.
Let Export Portal Help You
New to the world of trade? Then work with Export Portal to trade with verified companies and experts from all over the world!