Employee Turnover Or Retention - A Scenario In Recession

By Author: Clara Ross
Total Articles: 47
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Recession, the echo of Big R of Recession can be heard from every kind of organizations, big or small, national or multinational. Experts advised a number of times ways to reduce the business costs and enhance the viability for business survival. As compared to other negative impacts, it has directly affected the employee's morale in a very negative way. Turnover Rate has increased much more times than in a normal state of economy. Employee turnover is a ratio in comparison to the number of employees a company must replace in a given time period to the average number of total employees. Many factors play role in employee turnover rate for an organization which sounds harsher in recessionary days. Wages, benefits, employee attendance, and job performance are all aspects of one issue that are significant in employee turnover.

Companies mostly take more interest in employee turnover because it directly relates to cost-cutting. These cost-reduction methods can be approached negatively, as employee turnover often times negatively impacts employee's morale and sense of job security. It's interesting to note the effect that ...
... employee turnover can have on a company's success. One study found that a decrease of as little as 1% in annual turnover can save thousands of dollars for small companies, and millions for big ones. Retention is a better option for employers as it is like replacing a worker who is earning much can cost more than his salary to the company for advertising, hiring and training expenses. Due to these costs, companies usually focus on employee retention more than turnover.

Employee Retention is the key to survive longer in challenging times. Efficient employees keep the quality up and keep business operations run smoothly and save money in a longer run. Most companies find that employee turnover reduces when it addresses the issues that affect overall company morale. Employers carefully observe the smooth functioning & performance of all the employees and let the best performers stay within organization. A decisive manager who is quite persistent keeps the rhythm up for his subordinates and boosts up their morale through formal and informal discussions and several kinds of conversations.

Conduct exit interviews to determine the reason for employee turnover. Try to go beyond typical question answer sessions that give you valuable information on how you can improve your retention rate. Offer reasonable benefits to your employees, give them flexible work schedules, performance based incentives and paid holidays. Employers should consider all these points because retention is more important and company's performance depends upon its employees.

Clara Ross is the writer for Dubai Hotels & Short Stay , Mobile Reviews & Best Mobile Offers and Free Dropshippers Blog & Drop Shipping . The author has got more than a decade of experience in the real estate, marketing, and wholesale industries and has been writing articles in industry related magazines, websites and blogs.