Best Practice: Employee Retention

14 September 2013, Singapore: 

Striking the right balance for employee retention and turnover

We all know that employee turnover costs our organizations money. But…

• Too little and too much turnover are both bad for business
• Though turnover rates vary widely by industry, most organizations aim to keep turnover below 15%
• What's the optimal rate for your organization?

Why do employees leave?

Most managers think employees leave to earn more money. But the top 3 reasons employees leave are:

• Poor relationship with their direct manager
• Lack of opportunity for growth and development
• Lack of challenging, meaningful work 

When/why is employee turnover good?

Employee turnover is one way to bring fresh ideas and perspective into the organization. It can help challenge and rejuvenate processes, products, services, etc.

Turnover of employees who aren't performing or aren't the "right fit" is also beneficial for the organization. 

The importance of conducting “Stay Interviews”

Exit interviews help you gain insight into why employees are leaving. But employees are often reluctant to tell you the real reasons why.

"Stay interviews" help you identify employee motivators and dissatisfactions so you can retain employees. They're really an engagement discussion between a manager and their employee. 

Tracking your employee retention and turnover metrics

Tracking your employee retention and turnover metrics over time is important for spotting trends and addressing them before they threaten your business. But general metrics aren't really helpful. Segment your data by location, department, manager, and by employee performance levels. 

How do you keep your top performers

• Ensure employees get the feedback and direction they need to succeed
• Foster employee development and career progression
• Know who your high performers are, and what motivates them
• Train managers in performance and talent management best-practices