Most forward-thinking organizations today realize that having valued employees is what differentiates them from their competitors. In this increasingly commoditized and competitive world, good people make an organization survive and thrive. And with the cost of replacing an employee estimated to amount to between 1.75 and 2.5 times his or her yearly salary, organizations are wise to pay attention to this critical issue.
Today’s organizations and their managers understand the need to be retention savvy. In most organizations, retention has been elevated to the level of strategic initiative and is managed as carefully as profitability. This means collecting and paying attention to retention measures, setting realistic goals for retention, and getting smart about why people leave and why they stay in organizations (usually not the same reasons). It also may mean looking closely at jobs where attrition is the highest, and most costly, or most disruptive in your organization. By making even minor adjustments in targeted jobs, you can make them more appealing over the long term.
A recent poll of more than 300 leaders by The Ken Blanchard Companies revealed that organizations are taking the issue of employee retention seriously. Almost a third of respondents reported that their current turnover rate was less than 10 percent, and another third reported that turnover levels were below 20 percent.
The survey asked: What’s your estimate of your organization’s current annual employee turnover rate?
Less than 10 percent: 27%
More than 50%: 1%
No Answer: 28%
For additional information, visit www.kenblanchard.com.