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What is Employee Retention?

Lead consultant at Test Partnership, Ben Schwencke, explains employee retention.

0:42 Quickly understand employee retention.

Employee retention refers to an organisations ability to keep its employees over time. It is the measure of how well a company can keep its workforce stable and prevent unnecessary turnover. Employee retention is essential as it helps companies to save money, time, and resources that would otherwise be spent on recruiting, training, and onboarding new employees.

Additionally, retaining experienced employees can lead to better performance, increased productivity, and a more positive organisational culture.

Employee retention is closely aligned to the psychological constructs of employee engagement, organisational commitment, and job satisfaction.Organisations can maximise employee retention in a number of ways throughout the talent management cycle. Firstly, employers must utilise a rigorous and targeted employee selection process, ensuring that only candidates who fit the role, team, and organisation are hired. Secondly, managers must help support incumbent employees throughout their tenure, providing encouragement, development, and constructive feedback. Lastly, when employees do eventually leave the organisation, exit interviews should be held, helping the organisation to identify employee pain-points and avoid future attrition.