Corporate Culture & Employee Retention

A recent Society for Human Resource Management (SHRM) press release revealed the answer to the question of what people plan to do when the job market rebounds.   The majority of the Human Resource (HR) professionals and managers surveyed agreed that turnover will rise significantly once the job market improves.  

Does Employee Retention Matter?

Yes is the simple answer, employee retention matters.  The fallout from employee churn includes: issues such as lost corporate knowledge, reduced productivity, coworkers bearing the additional workload during the replacement search and finally the separation and replacement costs.  Costs other than the recruitment cost are often overlooked, but can include:

1)   Cost of exit interview

2)   Administration functions relating to termination

3)   Separation / severance pay

4)   Any increase in unemployment compensation

5)   Entrance interviews and testing

6)   Pre-employment administration expenses

7)   Relocation expenses

8)   Medical exams

9)   Training costs

And finally, there is the actual cost of attracting the candidate which can include, recruitment consultant fees and advertising.   

A healthy corporate culture is a key determinant in attracting and retaining talent.   Employee retention is one of the primary measures of the cultural health of your organization.   Do you know how healthy your corporate culture is? 

Click here to use our online staff turnover calculator to calculate the real cost of employee churn for your organization.