Why Does Employee Retention Matter?
Employee retention is the organizational metric that shows how well a company is doing keeping talented employees in place. It is influenced by the practices that an organization follows to keep employees through a positive experience, practices an organization follows to retain its staff (e.g. through compensation, policies, benefits, office perks, etc.)
Employee experience, from interviews to onboarding to anniversary celebrations, has a much deeper impact to your organization than just positive Glassdoor reviews. By creating an employee experience that incorporates regular engagement, feedback, and appreciation, you can create significant performance and expense improvements for your organization:
- It costs an average of 6-months of salary to recruit and onboard a new employee. (Gallup 2018)
- It can take 1-2 years for a new hire to equal the productivity of the employee who left. (Josh Bersin, LinkedIn)
- Companies with highly engaged employees outperform their peers in terms of customer loyalty (10% increase), productivity (20%), and profitability (21%). (Gallup 2018)