Importance of Retaining Talent

The most critical issue that organizations face today is how to retain the employees they want to keep. Retaining talent is a symbol of success for any organization. Companies whose employees remain with them for the long term save both time and money. Understanding the significance of retaining talent and techniques to use can help your business improve its productivity with more talented employees.

Employee retention is an organization’s capability to keep its employees under contract, pushing them to be more stable, and making them a productive workforce. Organizations that are serious about retaining their talent, establish policies and programs that are aimed at reducing employee turnover. And those that have succeeded in achieving high employee retention rates operate at an advantage both in completing business goals and in recruiting new hires.

A well-establish and well-executed employee retention approach is a key differentiator, as an organization’s ability to hold on to its talent, particularly in tight hiring markets has deep ramifications for its capability to operate at a high level, without the disruptions that employee turnover brings. In this article, we will explore techniques to retain talent in the workplace.

What Does Retaining Talent Mean?

Retaining talent, or employee retention is the ability of any organization to keep its employees for the long term. This happens when employees decide to stay with their current organizations, rather than look for opportunities elsewhere. When noticing if they're retaining talent, a company looks at the percentage of employees who stayed with them during a fixed period. Or they look at the remainder of employees after calculating its turnover rate. For example, a company that kept 8 out of 10 employees in one year would have an employee turnover rate of 10% and a retention rate of 90%.

Each company has a different turnover rate due to the type of work they do and other factors, such as compensation or wages. For example, according to the?U.S. Bureau of Labor Statistics, government agencies have a 24% turnover rate, whereas retail companies have a 69% turnover rate.

Why Retaining Talent is Important?

Retaining talent in an organization is essential as it creates a safe and secure environment that helps to reduce turnover rates. When organizations experience turnover, they have to reassign job responsibilities to new employees and spend time searching for a new candidate. Replacement of an employee can be expensive due to exit interviews and lost productivity during training. Another important factor in retaining talent is a team atmosphere. People can find it difficult to build relationships if employees constantly leave. Those who leave may join their competitor, giving them an advantage over you.

What are the Benefits of Retaining Talent?

To avoid problems induced by high turnover rates, organizations that retain talent experience a few advantages. They improve company performance by developing experienced employees and company experts. Some of the advantages of retaining talent include:

• Enhances the company culture
• Better customer experience
• Increasing the income
• Improves employee engagement and satisfaction
• Build a favorable company reputation

This article brings you some tips on the Importance of Retaining Talent. Next week where I will be going over some more pointers on strategies to retain top talent.

About Author:

Priyanka Madhala?is the Head of Talent Acquisition at Chimera Technologies.?