Determinants of Employee Retention

The cost of employee turnover
Employee turnover can be costly for organizations. The cost of replacing an employee can range from 16% of the employee’s annual salary for low-skill jobs to 213% of the employee’s annual salary for executive-level jobs (Berlin, 2016). In addition to the cost of replacement, there are other costs associated with employee turnover, such as the cost of recruiting and training new employees.

The impact of employee turnover on organizational performance
Employee turnover can have a significant impact on organizational performance. Research has shown that there is a significant negative relationship between employee turnover and organizational performance (Huang  Ferris, 2003; Lee, Green,  Payne, 2004). High levels of employee turnover can lead to lower productivity, lower quality products or services, and less customer satisfaction.

The impact of employee turnover on customer satisfaction
Employee turnover can also have a negative impact on customer satisfaction. When employees leave an organization, it can leave customers with a negative impression of the company. research has shown that there is a significant negative relationship between employee turnover and customer satisfaction (Lee, Green,  Payne, 2004). Low levels of employee retention can lead to lower customer satisfaction and increased customer defections.

The impact of employee turnover on employee productivity
Employee turnover can also have a negative impact on employee productivity. When employees leave an organization, it can leave coworkers with additional workloads. This can lead to lower productivity and lower quality work.

The impact of employee turnover on employee satisfaction
Employee turnover can also have a negative impact on employee satisfaction. When employees leave an organization, it can leave coworkers with a feeling of instability and uncertainty. This can lead to lower job satisfaction and increased job dissatisfaction.

The impact of employee tenure on organizational performance
Employee tenure can also have a significant impact on organizational performance. Research has shown that there is a significant positive relationship between employee tenure and organizational performance (Huang  Ferris, 2003; Lee, Green,  Payne, 2004). Long-tenured employees are more likely to be productive and engaged in their work and are less likely to leave the organization.

The impact of employee tenure on customer satisfaction
Employee tenure can also have a positive impact on customer satisfaction. Long-tenured employees are more likely to be familiar with the company’s products and services and are more likely to provide good customer service. research has shown that there is a significant positive relationship between employee tenure and customer satisfaction (Lee, Green,  Payne, 2004). Long-tenured employees are more likely to be satisfied with their jobs and are less likely to leave the organization.

The impact of employee tenure on employee productivity
Employee tenure can also have a positive impact on employee productivity. Long-tenured employees are more likely to be familiar with the company’s policies and procedures and are more likely to be productive and engaged in their work. research has shown that there is a significant positive relationship between employee tenure and employee productivity (Huang  Ferris, 2003; Lee, Green,  Payne, 2004). Long-tenured employees are more likely to be productive and less likely to leave the organization.

Strategies to reduce employee turnover
There are several strategies that organizations can use to reduce employee turnover. One strategy is to offer competitive wages and benefits. Organizations can also offer training and development opportunities to help employees grow their skills and improve their job satisfaction. Organizations can also create a positive work environment that encourages teamwork and collaboration.