Training and development are crucial factors for the success of any organization. Educated and skilled workforce will definitely be a major factor in attaining organizational goals and objectives. The advent of technology has revolutionized the training and education areas. The technology has brought innovation, and through sophisticated tools and methods, training can be easily and effectively imparted to the required personnel. Training can be customized and tailor-made depending on the requirements.
Another very important issue in employee retention is the cost involved in losing people.
One of the surveys highlighted that approximately the total cost of losing a single position
to turnover ranges from 30% of the yearly salary of the position for hourly employees
(Cornell University) to 150%, as estimated by the Saratoga Institute, and independently
by Hewitt Associates. Employee retention is not only important from the cost-efficiency
point of view, but also an important factor in revenue growth as well, because of its probable
link to customer acquisition, satisfaction and retention. This is why employee retention
has become one of the biggest headaches for HR professionals and is also one that
many employers would be interested in curing.
In one of the recent surveys conducted by the Society for Human Resource
Management (SHRM), the world’s largest human resource management association
highlighted the experiences of 473 HR professionals in US based companies concerning
their employee turnover statistics and retention efforts. The results highlighted that some
of the important reasons for employee resignations are better career opportunities and
more competitive salary and benefit packages. This survey also highlighted that the
voluntary resignations are also on the rise.
This article analyzes criticality of retention plans for some business firms and suggests
some proactive actions that today’s organizations can undertake to address the issue
of retention of the best talents. |
