Employee Retention

In this chapter, we explore how organizations can successfully retain their employees and mitigate the negative effects of turnover. A high rate of vo­luntary resignations presents a significant challenge, as losing an employee can cost a company up to 33% of their annual salary, while also impacting productivity, organizational climate, and the satisfaction of remaining employees. The reasons for employee departures vary, with the most com­mon being low salaries, lack of advancement opportunities, poor relation­ships with management, and an imbalance between work and personal life. On the other hand, key factors in employee retention include competitive compensation, strong career development opportunities, flexible work ar­rangements, and a supportive organizational environment. Strategies for employee retention have evolved over time and now incorporate scientifi­cally backed approaches such as exit interviews, engagement studies, lea­dership training, and flexible work policies. Research shows that effective retention strategies can lead to higher productivity, lower absenteeism, and increased satisfaction among employees and customers. In the following sections, we examine the development of retention methods, their bene­fits, scientific findings on their effectiveness, and practical approaches that organizations can implement to reduce turnover.