Glossary   > Retention Strategy

Retention Strategy

What is a Retention Strategy?

Retention strategy is a practice deployed by the companies to reduce their employee turnover ratio and increase their retention rate. The primary objective of this is to make sure that the employees’ expectations are met to keep them engaged and productive for the longer term. However, aligning the strategy with the company’s goals for an ensured maximum return on investment is challenging.

What Are The Benefits Of A Retention Strategy?

Employee retention plays a vital role for any organization. If the turnover of the employees is high, it means you are losing both good and talented employees and the unproductive ones. A strong retention strategy battles the employee turnover well. Here are some of the benefits of having an effective employee strategy;

Employee loyalty and morale

When employees are treated well by the employer, they feel that their work is valued and appreciated. As a result, employees feel more loyal towards their organizational goals, and productivity increases.

Improved work culture

When the employees are aligned in a productive environment, they intend to work longer for the organization. They feel motivated and do not feel the burnout caused due to work pressure.

Cost-effective to the company

Retained skills of the employees can be the most beneficial for an organization. The employees who are trained and already adapted to the workflow reduce the need for hiring the new employees and the cost required for the hiring, training, and onboarding.

Better customer retention

Any organization's employees are the ones who interact with the customers. Your company's customer point of view entirely depends on your employees and how they treat the customers. The employees who are treated well reflect well on the customers. It results in better customer retention.

Factors That Affect Retention Strategy

It is essential to keep in mind about the factors that influence employee turnover while forming a strategy. The various factors that influence retention of the employees are;

  • The environment of the workplace
  • Work culture
  • Various benefits that are offered to the employees
  • Recognition
  • Opportunities that enhance personal development

To implement an effective strategy, the employers should;

  • Clearly mention the goals and targets of the employees
  • Policies that are beneficial for the employees and the employers
  • Invest in the growth of the employees
  • Offer the various benefits
  • Promote a communicative work culture
  • Insist on the quality of the work instead of the quantity

Frequently Asked Questions

What are the consequences of a low retention strategy?

The lower retention strategy leads to employee burnout. Due to this the employee turnover ratio increases and the company loses its employees. The turnover might be of good employees too. If the strategy is not feasible the employees might feel demotivated to work and the environment in your workplace becomes unproductive.

Why is it essential to have a strategy that decreases employee turnover?

It helps your firm to retain the employee turnover. This keeps the employees acknowledged about the company’s transparency and the goals in a well specified manner.

What are the factors to keep in mind while building a retention strategy?

While building a retention strategy the employers should keep in mind about the organization's goals and their employee standards. This policy should promote employee engagement, improve the employees willingness to work for your firm, and increase productivity.

How to improve employee motivation?

To improve the employees motivation, a flexible strategy and policies should be implemented that encourage employees to work in a productive way.

Glossary   > Retention Strategy

Retention Strategy

What is a Retention Strategy?

Retention strategy is a practice deployed by the companies to reduce their employee turnover ratio and increase their retention rate. The primary objective of this is to make sure that the employees’ expectations are met to keep them engaged and productive for the longer term. However, aligning the strategy with the company’s goals for an ensured maximum return on investment is challenging.

What Are The Benefits Of A Retention Strategy?

Employee retention plays a vital role for any organization. If the turnover of the employees is high, it means you are losing both good and talented employees and the unproductive ones. A strong retention strategy battles the employee turnover well. Here are some of the benefits of having an effective employee strategy;

Employee loyalty and morale

When employees are treated well by the employer, they feel that their work is valued and appreciated. As a result, employees feel more loyal towards their organizational goals, and productivity increases.

Improved work culture

When the employees are aligned in a productive environment, they intend to work longer for the organization. They feel motivated and do not feel the burnout caused due to work pressure.

Cost-effective to the company

Retained skills of the employees can be the most beneficial for an organization. The employees who are trained and already adapted to the workflow reduce the need for hiring the new employees and the cost required for the hiring, training, and onboarding.

Better customer retention

Any organization's employees are the ones who interact with the customers. Your company's customer point of view entirely depends on your employees and how they treat the customers. The employees who are treated well reflect well on the customers. It results in better customer retention.

Factors That Affect Retention Strategy

It is essential to keep in mind about the factors that influence employee turnover while forming a strategy. The various factors that influence retention of the employees are;

To implement an effective strategy, the employers should;

Frequently Asked Questions

What are the consequences of a low retention strategy?

The lower retention strategy leads to employee burnout. Due to this the employee turnover ratio increases and the company loses its employees. The turnover might be of good employees too. If the strategy is not feasible the employees might feel demotivated to work and the environment in your workplace becomes unproductive.

Why is it essential to have a strategy that decreases employee turnover?

It helps your firm to retain the employee turnover. This keeps the employees acknowledged about the company’s transparency and the goals in a well specified manner.

What are the factors to keep in mind while building a retention strategy?

While building a retention strategy the employers should keep in mind about the organization's goals and their employee standards. This policy should promote employee engagement, improve the employees willingness to work for your firm, and increase productivity.

How to improve employee motivation?

To improve the employees motivation, a flexible strategy and policies should be implemented that encourage employees to work in a productive way.

6 Reasons Why Organizations Need HR Tools

A Guide on Human Resource Strategic Planning

Checklist for an Ideal Performance Evaluation Process

7 Advantages of Effective Employee Management

12 Key HR Metrics That Every Organization Should...

5 Advantages of Integrating HR tool with Payroll

An Ultimate Guide for HR Letters and Templates

Chatbots for HR Department | Advantages to Hire...

Importance of Employee Time Tracking and Attendance

6 Employee Onboarding Challenges and Ways to Overcome...

4 Effective Ways to Attract Human Capital

4 Tips to Convert to a Paperless HR...

8 Key Advantages of Automating Approvals Workflow

Major Activities Included in Human Capital Management

5 Advantages of an Employee Management Solution

5 Best HR Dashboards for Automated and Data-Driven...

Organizational Charts: Importance, Types, and Benefits

Employee Performance Tracking: 5 Ways To Do it...

All You Need to Know About HR Reporting

6 HR Documents that Every Organization must have

7 Golden Rules for Building an HR Team...

How to Monitor Employee Time and Attendance

Payroll Reconciliation

Employee Retention Best Practises

Who is an HR Professional? All you Need...

Employee’s Compensation and Benefits in India

Virtual Onboarding Checklist: Essentials to Onboard Remote Employees

6 Employee Retention Strategies for your Organization

What is HR Technology and how Does it...

10 Essential HR Policies Every Organization Must Implement

Work From Home, Should you Implement it or...

Understanding Salary Structure in India

Calculate Income Tax for FY 2023-24 – Complete...

Employee Onboarding Process : Complete Onboarding Guide

Payroll Cycle – What Does It Mean? Its...

Payroll Calculation – How is payroll calculated?

7 Tips to Optimize Your Payroll Process

Performance Management System – A Complete Guide To...

Objectives of HRM – 10 Main Objectives of...

Top 10 Job Portals in India 2023

Overtime Pay Calculation: Definition, Basics and Laws

Virtual Corporate Event Ideas To Build Strong Relation...

factoHR partners with SAP to fill white spaces...

12 Best Time Management Tools And Applications Needs...

HSA Vs FSA: Know Its Difference And Benefits...

Hazard Pay: Know About Its Meaning, Considerations, And...

Labor Reports: Statistical Way Of Maintaining Employees Data...

The Eternal Debate: Internal Equity Vs External Equity

Employee Engagement Ideas – You Don’t Need A...

Understanding Company’s Net Sales And How To Calculate...

factoHR’s Solutions For IT Declaration Challenges To Enable...

FactoHR Bags A Spot In The Top 5...

CTC Calculator – What is CTC and How...

Pre-employment Questionnaire – How to be Successful in...

Understanding Employment: Benefits of Non-Exempt Employees

Comparing Payroll Tax vs Income Tax as an...

Top 20 Common Interview Questions And Answers For...

How to Layoff Employees Smoothly

Difference Between Exempt and Non-Exempt Employee – Know...

What Different Employment Forms do New Hires Need...

Payroll Calendar : Know How To Create and...

Know the Advantages and Disadvantages of Hiring Family...

Employee Turnover Ratio: Reasons Good Employees Quit Their...

How to Pay Employees: Types of Payment Option...

Questions That Employers Cannot Ask During an Interview...

6 Essential Background Check Steps for Due Diligence...

Full-time vs. Part-time Employment – Understand Employees’ Job...

Job Sharing for Employees: How it Works and...

Hiring Seasonal Employees – Understanding The Benefits and...

Gross Pay Vs Net Pay: Know What is...

Employee Loyalty In Organization – Know The Ways...

Empowering Small Business: 10 Wage Violations that can...

Understanding Work Bonus and Its Nitty-Gritty – FactoHR

Understanding Notice Period Recovery and its Calculations –...

Employee Wellness Programs for Remote Employees During COVID-19...

The Importance Of Organizational Behavior For Individuals or...

29 Creative Employee Appreciation Ideas Your Staff Will...

Talent Management Process : Step By Step Guide...

Core Values of a Company : The Steps...

How to Improve Productivity Of Your Remote Employee?

Employees Deposit Linked Insurance Scheme (EDLI Scheme)

Strategic Management – Know The Purpose, Importance, Definition...

Business Ethics – Know its Importance in Achieving...

What is Payroll? Complete Guide With Basics, Process...

Performance Appraisals and Ways to Better The Process...

HRMS – Complete Guide on Managing Your Human...

Statutory Compliance Guide – Details Of All Acts...

Leave Management Guide – Know The Basics, Process,...

HRM Function : Core Functions of Human Resource...

Modernize your HR tasks factoHR today

Experience the digitalization of everyday business activities with factoHR's modern and compatible solutions for every need.