Employee turnover and the retention of valued employees are major problems facing business in the U.S. The average turnover rate is hovering at 15%. The costs associated with that turnover can be high - generally 25 percent of the individual's annual salary. Unemployment in the United States is at a 24-year low. Employee loyalty is down. Never before has it been so critical to focus on strategies for keeping good employees. However finding a solution to high turnover is not easy.One major incentive for retaining employees is the cost of turnover. Keeping good employees increases profits. Employee turnover is a direct drain on the bottom line. Another incentive for employee retention is the high cost of recruiting and replacing valued employees. In a low-unemployment market, employees are increasingly difficult to find. Many employers are trying to reduce employee turnover with quick fixes, gimmicks, games, and prizes that just don't work. Organizations are finding that the solutions are more about how you treat employees than tangible items that are given to them. Also, the concept of employee loyalty diminished as employees realized that doing a good job and being loyal to an employer no longer mattered. True solutions require a change in management's attitudes and behaviors toward employees. The ultimate strategy to reduce the costs of turnover and high recruitment is to manage for retention. A "wait and see" approach will not work. Developing a proactive strategy to keeping key employees is essential. Whether it means identifying employees that contribute the most to the bottom line and developing programs that will satisfy them, providing, compensation programs that provide the types of rewards that are important to each employee or taking a closer look at the overall organizations culture, some immediate actions must be taken. Why are Top Talent Jumping Ship?The job market is competitive and the labor pool is shrinking. Em...
