Why employee retention is important?
Attrition is an issue that every organization, big or small must deal with. Attrition, to an extent, is good. You want your below-average performers to leave and make a place for new employees that can be a better fit for the organization, increasing your productivity.
However, there are times when even the best performers choose to leave the organization for a multitude of reasons. Some of those reasons are beyond anyone’s control like a family issue or getting married or moving to another city. But often, employees leave organizations for reasons that are well within the control of the company.
Low job satisfaction, no growth opportunities, work-life balance, less pay, etc. are common reasons for employees to decide to switch companies. There is one reason that always tops the chart in all surveys conducted to find out the reason for employees leaving organizations – bad managers.
Reasons for employees leaving
It is said that employees do not leave a job, but a manager. A bad manager can be a frustrating experience for anyone. The traits of a bad manager often include an overly demanding nature, disrespectful behaviour, or an authoritative leadership style. This affects then employee morale and productivity in an immensely bad way.
It is not possible to change managers, or the culture of a team overnight. But we can have proper systems and processes in place that discourage such negative behaviour by managers. Such cultural changes include having transparent communication between managers and subordinates, team building activities, having a channel of communication where employees can openly communicate their grievances without having to worry about consequences, etc.
Impact of workplace culture on attrition
Positive workplace culture has a positive impact on the retention of employees. If the employees feel that they are well understood and their issues are properly heard and adequately addressed, their loyalty to the job increases manifold.
Moreover, ensuring employees are well compensated for their efforts is another way to retain them. Employees’ salaries should be enough to meet their needs and still have some money left for a rainy day.
If an organization treats their employees well and pays them enough so that they don’t have to worry about money, then the attrition rate of the company will go down. Of course, there will still be people who leave the job for other reasons. But those reasons would be genuine and way beyond anyone’s control.
We at Authentic Staffing Agency have over 1500 employees on payroll working on contract with numerous companies. We believe in paying fair compensation to ensure minimal attrition. We design compensation packages to ensure employee retention within the company budget.
Further, we also work with companies and design their company policies. We always promote open, honest communication between employees and their supervisors. We have special provisions for employees who want to discuss their grievances ensuring that their concerns are properly heard.
We have found that retaining an employee works out to be a lot better than replacing one. This is why we have some of the highest retention rates in the industry.