MANAGING EMPLOYEE RETENTION

Managing Employee Retention

[Name of the Institute]

Managing Employee Retention

Employee Retention

Employee retention is a major concern for businesses. In general, the departure of qualified staff represents significant costs to the company. More specifically, the cost of replacing an employee ranges from 93% to 200% of annual salary of the employee, depending on the nature of its powers and responsibilities (Taylor, 2002). Businesses operating in a highly competitive economic environment cannot ignore the impact of this spending on organizational effectiveness. Employee turnover is likely to hinder the company in its economic growth, and cause it to lose its competitive advantage.

In recent years, several very interesting books have been published on the retention employees, each with its concepts, theories and programs that attempt to explain the gap between theory and practice (Carsen, 2005). Despite this abundant literature, all polls are unanimous in showing that the Employee retention is one of the biggest challenges for British companies. The challenge is significant especially in the context of a global economy such as British economy; it becomes imperative to find a solution to maintain a true competitive advantage. The same Surveys show that if companies attribute their success to their employees, they also remain the tendon in their organization. The challenge of employee retention will become even more crucial as companies face not only a low unemployment rate, but also to retire the generation of baby boomers. And there are more than figures: the changing of the guard, and the transfer of power to a generation to another, experience, expertise and leadership of the baby boomers, will be replaced by a generation of employees more mobile and less patient.

In fact statistics shows that a new employee today stays with an organization, a little short of four years versus 10 years for the employee 1980. We are in the era of free trade even in the labour market so that, the best talent commands a big salary with bonus without ensuring its retention in the organization. The threat of a possible recession in the near future allows employers to a break, yet experts agree that this break will be short duration and that the situation will not improve very much for (Phillips, 2003). The pressure on Departments of Human Resources to address the lack of employees is large; the trouble is that these departments are also suffering a shortage of labour related changes mentioned above. And there's the flip side. A survey of 11,000 employees by a Research Institute concludes that, the retention rate of employees is directly related to qualities of running a business; poor management or supervision of employees and a lack of communication within a company are the main reasons which explains the rate of change of personnel high. All companies fully understand the nature of the costs associated with retention employees (Cassel, 2001). Double the amount if one can deal with agency head-hunters, add to that the actual costs to train new employees and integrate in the company and the bill ...