Retention seems to be the biggest problem faced by large companies. Turnover has becoming a serious problem in the corporate environment. The employment culture is changing, as more employees are demanding more and more balance between work and personal/family life; it is not uncommon to see people changing jobs every few years. Turnover costs for many businesses are very high, resulting in financial losses. Turnover costs include; recruitment, job position advertising, training, increase in workloads and overtime expenses, before the replacement is ready to take on the responsibility of the job. As the company is short of staff productivity is reduced resulting in an overall reduction in profits and growth.
This gives a clear idea of how serious this can be! This is why hiring the right people initially is extremely important. It is best that a candidate shares the same vision as the company and displays a will to follow and grow with the company. Another way to reduce employee turnover is to make the company employee-oriented, focusing on interactions between all levels in the organization, from workers, to supervisors, managers, and directors. If one can feel part of the company as a whole, trust and loyalty can be built up between employees.
Attractive compensation packages also help to retain employees. The top companies that have low employee turnover have attractive compensation packages such as health and healthy work environment. Many companies offer vacations packages, and other freebies such as free lunch, etc. All these are worth considering reducing the impact on employee turnover.
Lahore, November 27.