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Employee Retention And Turnover Rate

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Employee Retention and Turnover
Employee retention could be described as the efforts by any business or organization to develop strategies and initiatives that support current staff into remaining with the organization. Retention is “the ability to hold onto those employees you would want to keep for longer than your competition” (Johnson, 2000). Success or otherwise of an organization in retaining its employee’s is measured in terms of Employee Retention Rate (ERR) or through assessment of the Employee Turnover Rate (ETR). High employee retention rate means that employee turnover rate has been low and vice versa. Companies today are interested in retaining valuable employees and good employees are increasingly becoming more difficult …show more content…

Similarly, Silverthorne (2004) notes that, “turnover causes significant expense to an organization,” including direct costs of replacing an employee and indirect cost related to loss of experience and lowered productivity. These costs have important implications for an organization, notes Silverthorne, and anything that can be done to reduce turnover will lead to significant benefits to an organization.
Recruiting is arguably one of the most critical roles of an HR manager (Pandey et al., 2012). Organizational performance can be credited with the identification and selection of the most talented individuals. An employee with high potential suggests that there is a future viability that is not present in the existing workforce (Yarnall, 2011). An appropriately structured recruitment strategy is essential for the future success of an organization and at times can determine whether that organization will grow or recede during a particular economic period. A successful recruiting strategy can improve recruiting effectiveness by 30% and reduce the time to fill that position by 28% (CEB, 2012). It is clear that whatever recruitment strategy is being used, the desired outcome has not been reached. This study examines recruitments strategies and their correlation on retention with the desire of finding the method

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