Chapter 12 - Retention of Talents

Summary

Retention of key professionals has become a major challenge for organisations. They spend a tremendous amount of time, effort and cost in evolving retention strategies. To manage the attrition rate, organisations are offering attractive benefits such as Employees Stock Option Policies (ESOPs) to the employees. As cost of interviewing, recruiting, relocating, training and compensating employees rise, the Human Resource managers are impelled to do a better planning job. The costs associated with recruiting and orienting new professional and managerial employees are often astounding when the rates of attrition during the first two years are taken into account.

The value of an experienced employee may exceed the total costs incurred. The replacement cost raises the question that if all the employees were to leave tomorrow, what would it cost to replace them at their present level of competence. This may be 3–5 times the annual total payroll of a company. But this is an average estimate and actual replacement costs depends on specific capabilities desired for each position and the availability of talent.

Appreciate employees for good work

Studies show that people are more comfortable to stay in jobs where they feel appreciated rather than where they might be paid more. It must be remembered that good pay and perks can always be matched by your competitors – it is only the great work places that will make significant difference to the quality of the organisation. The seniors genuinely share the joys and sorrows of their subordinates. Employees should be involved in decision-making process and suggestion schemes so that they feel like a part of the organisation.