Employee retention rate impacts a company’s profitability. When productivity becomes a concern for an organization, the staff is always an essential part of the solution. While financial and physical assets are important resources of the organization, human talent plays a far more crucial role in it.
The staff is responsible for producing and designing goods and services, distributing products, controlling the quality of service and products, allocating financial resources, and establishing objectives and strategies for the organization.
Without the commitment to retain and develop human talent, all these tasks are not fulfilled to their full potential. The determining factor of business success is no longer the capital or the assets of companies – they all agree that it is human talent. Human talent is what generates ideas that are unique to the company, making the difference between one company and another.
Therefore, talent is currently the most competitive variable of organizations. In the world’s advanced organizations, the struggle is to attract, select, and retain the best employees. Only the most skilled people can create the best products and generate the best ideas for companies to successfully improve employee morale and increase employee retention.
Employee Retention And How You Can Excel At It
Human talent in companies promotes development. An example of this is that India’s foreign investment has been 30.8 billion dollars and has become the largest exporter of highly skilled workers in computer and financial services.
Some of the strategies to increase employee retention rate are as follows:
Teach and show that belonging to the company implies a growth not only professional but also personal. It is essential that the organization encourages its workers, trains them, and gives them new challenges to improve every day. We must not fall into the error of having a business that, structurally, frustrates them, and only generates in them the desire not to return.
- Accept the ideas and proposals of the collaborators
- Avoid imposing plans and, on the contrary, encourage the participation of all staff.
- Make a Work and Family Life Plan
It allows the company to know the work and family life needs of each of its employees and at the same time that its employee detects them. The idea is to have tools to develop programs that best meet the diverse needs and interests of employees.
Preparing this small, but very valuable document with its employees, generates bonds of trust between the company and the employees, since the need for security and belonging to their workplace is met.
An employee who knows that his company is interested in his needs for growth, work, and even better, family, is better in his professional activity because he feels supported by his company.
Find out the obstacles or warning points that can border an employee to lower their performance, motivation, and, therefore, their objective in the company and in their working life. The consequence is almost always the impending resignation.
These obstacles to employee retention are usually exhaustion, lack of balance between work and personal life, or frustration with growth and professional development. This detection is carried out through continuous observation and analysis of changes in employee behavior.
The idea of increasing employee retention rate is to generate intellectual capital, which can be said to be the sum of the skills and abilities that employees possess.
So that good employees stay in companies there are many recommendations in this regard. It’s about win-win, and that is precisely why competitive salaries that generate competitive collaborators, as well as career development opportunities, must be offered.
Importance Of Intellectual Capital
During the Industrial Age, solid physical assets – such as machinery, plants, and even land – determined the strength with which one could compete. In the present “Age of Knowledge,” intellectual capital is what defines the competitive limit of a company.
Intellectual capital is the only knowledge and the only skills that a company’s workforce possesses. Successful companies that exist win today by innovative ideas, by the first quality products and services that arise from the knowledge and skills of employees.
Conclusion: Employee Retention Rate Guarantees Success
When employees say goodbye, the company loses its knowledge and (sometimes expensive) experience. When these employees leave with the competition, the loss is even greater since not only their company is deprived of an important part of knowledge, but also their competitors, who also have not spent a single dollar in their training.