Talent retention seems simple: hire qualified people, treat them well, pay them fairly, and they’ll stay for life, right? Not in today’s employment market. Today we are facing record low unemployment rates and workers with multiple options for employment.
Turnover costs time, money, and other resources. According to the Society for Human Resource Management (SHRM), research suggests that replacement costs can reach as high as 50-60% of an employee’s annual salary. Once you add in other transition costs such as lost productivity, impact on morale, etc., the total costs associated with turnover can range from 90-200% of annual salary.
Actively working to retain top talent is the answer, yet according to a recent study, only 53% of organizations have a talent management initiative in place. An employee retention plan does not need to be extensive or expensive.