In this blog post, we will discuss the benefits of employee retention and how Mantra Care EAP can help you retain your employees.
Understanding Employee Retention In Brief
Employee retention is the percentage of employees who stay with a company for a certain period. The turnover rate is the opposite of employee retention and is the percentage of employees who leave a company within a certain period.
Employee retention is important because it costs businesses money to replace employees who leave. According to the Society for Human Resource Management, the cost of replacing an employee can be as high as 150% of that employee’s salary.
Types of Employee Retention Models
There are two types of employee retention models: the voluntary model and the involuntary model.
- The voluntary model is when an employee leaves a company on their own accord, such as quitting or retiring.
- The involuntary model is when an employee is let go by the company, such as being fired or laid off.
Employee Retention Strategies
There are many different employee retention strategies that businesses can use to keep their employees happy and engaged. Some of these strategies include:
- Creating a positive work environment
- Showing appreciation for employees’ work
- Offering competitive salaries and benefits
- Investing in employee development and training
- Providing opportunities for career advancement
History And Development
Employee retention has been a challenge for businesses since the beginning of time. In the early days of business, employees were often loyal to one company for their entire careers. This began to change in the late 1800s as the Industrial Revolution led to more job opportunities and employees began to change jobs more frequently.
In the early 1900s, companies began to offer benefits and perks to employees to keep them satisfied and loyal. However, this practice continues today, with businesses offering a variety of benefits. Such as health insurance, retirement plans, and paid time off, to their employees.
Listing Benefits of Employee Retention
Employee retention has always been a challenge for businesses. With the advent of social media, it has become even more difficult to keep employees satisfied and engaged in their work.
According to a study by the Society for Human Resource Management, employee turnover costs U.S. businesses an estimated $11 billion each year.
This is why businesses need to invest in employee retention strategies and programs that will keep their employees happy and productive. Furthermore, there are many benefits of employee retention for businesses, including:
- Reduced costs: When businesses have high employee retention rates, they can spend less time and money on recruiting and training new employees.
- Improved productivity: When employees are happy and engaged in their work, they are more productive. As a result, this leads to improved business performance and profitability.
- Experienced Employees: When businesses retain their employees, they can benefit from the experience and knowledge that these employees have.
Improved Corporate Culture: A positive corporate culture is essential for attracting and retaining employees. Since, employee retention can lead to a more positive corporate culture, which can, in turn, lead to even more employee retention.
- Greater loyalty: Employees who are satisfied with their jobs are more likely to be loyal to their companies. Incidentally, this loyalty can lead to increased productivity and decreased turnover.
- Improved customer service: When employees are happy, they are more likely to provide excellent customer service. Consequently, this leads to happier customers and increased business.
- Increased morale: Employee retention can lead to increased morale among employees. Arguably, when employees see that their company is invested in their happiness and well-being, they are more likely to be motivated and engaged in their work.
Some Success Stories
Many companies have used employee retention strategies to great success. Here are a few examples:
Google: One example is Google, which has been consistently ranked as one of the best companies to work for. Google offers a variety of perks and benefits to its employees, such as free food, on-site childcare, and free transportation. Incidentally, these perks have helped Google to keep its turnover rate low.
- Google’s turnover rate is just over two percent.
Zappos: Another company that has successfully used employee retention strategies is Zappos, an online retailer that focuses on customer service. The company has a very high retention rate, due in part to its focus on employee happiness. In addition, Zappos offers generous benefits, such as free food and transportation, and it has a company culture that is focused on fun and positivity.
Costco: Costco is another company that has used employee retention strategies to great success. Costco is a membership-based warehouse club that offers its employees competitive salaries and benefits. Furthermore, the company also invests in employee development, which has helped to create a loyal and engaged workforce.
- As a result of these perks, Costco has a turnover rate of just six percent.
Boeing: Boeing is another company that has used employee retention strategies to great success. The aerospace manufacturer offers a variety of benefits to its employees, including health insurance, retirement plans, and tuition assistance. Moreover, Boeing also invests in employee development, offering training and career advancement opportunities. These efforts have helped the company to keep its turnover rate low.
A Word From MantraCare Wellness
Employee wellness programs are the key to improving employee motivation, productivity, and retention. At MantraCare Wellness, we have a team of health experts, counselors, and coaches who serve corporate employees with 10+ wellbeing programs including EAP, Employee Diabetes Reversal, Corporate MSK, PCOS, Employee Fitness, Corporate Yoga, Employee meditation, and Employee Smoking Cessation.