The question of how to maintain the people a company value most is a pressing one. A lack of both general talent and people with the particular abilities necessary to remain ahead of the competition is looming, and businesses must prepare for it. Companies will have a better chance of surviving labor shortages if they have a plan in place to methodically manage staff retention through good and bad economic times.
In a poll conducted by SHRM and Global force titled “Using Recognition and Other Workplace Efforts to Engage Employees,” 47% of HR professionals said that retention/turnover was the leading workforce management concern.
Important reasons for stressing retention:
- Employee turnover is quite expensive.
- The productivity of a company suffers when employees leave for no good reason.
- It may become more challenging to keep desirable personnel if the number of available competent workers continues to decline.
A company’s bottom line may take a serious hit when employees leave, but not all turnover is always bad. A newly hired replacement, for instance, can end up being more efficient or knowledgeable than the person they replaced.
