By Josh Bersin, Principal and Founder, Bersin by Deloitte
I can tell the economy is recovering: we’re suddenly seeing companies tell us that “employee retention” has become a critical issue. Let me give you some research-based perspectives on this critically important topic.
What does Retention Mean?
Nearly all companies measure turnover. In some industries (retail, customer service, hospitality) turnover rates of 30-40% are common and sometimes even accepted. I had a conversation with one HR manager who told me “we design our organization around high-turnover: we make sure jobs are easy to learn so we can rapidly assimilate new people.”
While this may be a reality in many companies, our research shows that it’s not a sound strategy. Regardless of the role they play, tenured employees drive far greater value than those who are “cycling through” the business…….