Overview: Undesirable employee turnover, such as when a top performer leaves an organization, can lead to decreased productivity and succession or continuity challenges. Employee turnover is costly to organizations, decreasing the employer's return on investment (ROI) in employee training and development, as well as in benefits packages.
Employers should adopt a planned employee retention strategy tailored to their particular circumstances. Resorting to ad hoc methods or a dependence on market conditions as retention strategies will not allow an organization to achieve its business goals. "Employers of choice" will develop a retention strategy that targets specific practices, proactively evaluates policies and procedures and tracks turnover rates in order to strengthen organizational viability.
Trends: In a weak economy, many organizations will engage in some level of restructuring, whether it is accomplished through downsizing the organization, merging with another entity or acquiring related businesses. Employers need to institute communications plans that adequately deal with times of change, and must remain vigilant that top performers are not needlessly lost to competitors.
Author: Marta Moakley, JD, Legal Editor
This Worked Example illustrates how HR may make a business case for an initiative of increasing the organization's profitability by reducing the cost of voluntary employee turnover.
An employer may use this survey when considering initiating a structured succession planning process. Having input from key stakeholders and parties involved in the process has several potential benefits for the employer.
The Model Succession Plan is designed to help a user (often HR) document a proposed succession planning process for senior management (CEO) and, where relevant, Board of Director approval.
This How To should assist an employer in fostering employee motivation in its organization.
This How To details the steps an employer should take when conducting a training needs analysis.
This briefing for supervisors provides ideas and best practices on responding to the challenges faced during a corporate restructuring.
This How To details the steps an employer concerned about employee turnover may take in seeking ways to reduce attrition.
An employer may use this policy to indicate that the employer is committed to the long-term investment and career of employees. A Career Planning Policy assists in retaining employees and encouraging employee career growth and development.