Employee retention is one of the key challenges faced by organizations in the modern business world. Retaining and retaining the best employees has become not only a strategic goal, but also a necessity to remain competitive on the market.

Employee retention is the process of keeping current employees in the organization for a longer period of time. It includes all efforts and strategies to prevent employee departures and create conditions that encourage them to stay with the company.

In today’s competitive job market, employee retention has become a priority for many companies. The loss of talented employees can lead to lower productivity, costly recruitment and training of new employees, and negatively impact morale and organizational culture.

Employee retention has many important aspects and affects various areas of the organization:

• Stability and business continuity – The long-term presence of employees in a company contributes to the stability of the organization. The lack of constant changes in teams and the lack of employee turnover allows the continuation of operations without major downtime.
• Efficiency and efficiency – Experienced employees are more productive because they have knowledge and skills specific to their role. No need to train new employees allows for continuity of work.
• Knowledge of organizational culture – the long-term presence of an employee in the company enables him to better understand and identify with the organizational culture, which translates into better integration and commitment.
• Cost reduction – The process of recruiting and training new employees is expensive. Retaining current employees helps organizations save on these expenses.

Measuring employee retention is a key step in managing this aspect of your workforce. This allows organizations to understand how effectively they retain their employees and how they can improve their performance in this area. Here are some steps to help you measure your retention rate:

• Determining the measurement period – the first step is to select the period in which we want to measure employee retention. It could be a quarter, a half-year or a year.
• Identifying Initial Number of Employees – At the beginning of the period for which we are measuring retention, it is necessary to determine how many employees were in the organization.
• Identify the number of employees at the end of the period – At the end of the measurement period, it is necessary to determine how many employees remain in the organization.
• Analyzing the results – Once you have calculated your retention rate, it is worth carefully analyzing the results. If the ratio is high, it means that the organization is effective in retaining employees. If it is low, it may indicate the need for action to improve retention.
• Conclusions and corrective actions – based on the results of the analysis, the organization should draw conclusions and take corrective actions. This may include, but is not limited to: improving working conditions, offering professional development, or better communication with employees.

The HR (Human Resources) department plays a key role in managing employee retention. HR is responsible for creating retention strategies, monitoring indicators, and implementing actions aimed at retaining employees in the organization.

Members of this department are responsible for creating an organizational culture that encourages current employees to decide on long-term employment in a given company. This is not an easy task and often requires analysis of solutions supporting this process. The most frequently offered incentives in companies are, of course, employee benefits. Salary is no longer the main aspect that determines the attractiveness of a workplace.

Employee retention is not only a matter of retaining the best employees in the company, but also of business strategy and human resources management. Organizations that effectively manage retention benefit from greater stability, efficiency and cost reduction. Measuring retention rate is crucial to understanding how effectively an organization is retaining its employees and how this performance can be improved. The HR department plays a key role in this process, creating retention strategies and monitoring performance to ensure the long-term presence of employees in the organization.

Source:https://wellbeingpolska.pl/retencja-pracownikow-czem-jest-i-jak-ja-mierzyc/

Supported by Norway through Norway Grants 2014-2021, in the frame of the Programme “Social Dialogue – Decent Work”.