subject: Talent Retention [print this page] Talent Retention Talent Retention
Talent Retention
Retaining talented people is the one of the most important priority of employers today. The cost of employee turnover is from 50% to 100% of an employee's annual salary, when we consider productivity, recruiting costs, reduced efficiency in transition & time. Workers shortage continues to escalate. Each & every day, good employees quit their employers for better jobs. With the additional responsibility of managing & motivating Gen Y employees the employer has to handle them in terms of pay, position, creating exciting goals that work, help them with training & development, reward / appreciate them failing which they quit.
Rising opportunities for career enhancement, lifestyle decisions, job changing, unbalanced work life, poor mentoring are some other factors which influence an individual's decision to continue or quit.
The word talent' has completely been redefined and is now used almost in respect of all common regular employee of the organization.
Talent is a natural ability or skill, such skills and abilities that are useful for the organization.
Retention: Hold back.
Maintaining an organization reputation is an effective way to attract the talented. With talented employees, an organization has a chance to improve its goodwill and reputation. A talented employee is extremely self motivated and self driven towards his / her work. He acts as a motivator to other employees. That increases total productivity of the organization. In other words, a talented employee can be made to learn certain skills but a skilled employee cannot be made to learn talent.
Usually an employee quit due to very many reasons but the most important reasons are:
Ineffective Mentoring.
Lack of Challenging Atmosphere.
Lack of Autonomy.
Lack of work place relationships.
Unattractive compensation.
Thus, every organization has some retention strategies in place. If not, the company has to build / draw one which would not only project a better image but attract & retain skilled & talented employees. The talent you hire, the pay packages you pay and the environment all contribute to your corporate image, as perceived by the employee.
Conduct exit interviews: Conduct exit interviews and identify reasons for turnover. Use this information to plan out a good / transparent retention strategy.
Concentrate on Development: Adoptpolicies and technologies that result in employee development. Empower employees and build a strong long-term working relationship with them.
Prerequisites for Retention:
- Properly designed induction programmes
- A good conducive working environment
- Training programmes
- Suitable compensation packages
- Counseling
- Reward strategies
Loss of people, lower productivity and lower performance are the negative signs of high turnover. The management must ensure to draw a good workable retention strategy to utilize their human assets to the maximum. Creative Human Asset Retention Strategies have to be emphasized: Opportunity to grow and learn at work is emerging as a primary determinant of attracting and retaining employees. Compensation is not the main factor that keeps employees in their current jobs or attracts them to a new one.
The only "Intangible Asset" found to predict the future financial performance of a firm is the firm's retention rate for key employees.
