India Inc sees benefits of Employee Retention

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Organizations are accelerating their talent retention strategies, which experts believe would increase the stickiness of employees to their jobs for longer terms. The fact that retention is more cost effective than hiring is now being brought out strongly in research as well.
Some statistics:

  • The cost of replacing an employee ranges from 29% (non-management) to 46% (management) of the person’s annual salary.
  • The new hiring cost that, on average, would be 25% of the annual salary.
  • Correlation between retention rate and an organization’s performance in customer satisfaction, productivity and profitability is more than 35% in value terms between a low attrition company and above average retention company.
Employees are also looking at a place which provides them with an opportunity to do unique things. The challenge is about creating a workplace of the future to envision the same and start putting the building blocks early, else we will be caught napping!”.
Nurturing ‘home-grown’ talent will in the longer run create a more affiliated and willing workforce.
Courtesy : Times of India , 19th November 2012