Learning Objectives
    1. Describe a comprehensive approach to 
       retaining employees.
    2.  Explain why employee engagement is 
                          4-
       important, and how to foster such 
       engagement.
  MANAGING EMPLOYEE TURNOVER AND 
             RETENTION
  •Turnover: the rate at which employees leave the firm, varies 
  markedly among industries.
  •(rates includes only voluntary leaving)
  •Turnover is an expensive cost for organizations. 
  Understanding more about the costs and causes of turnover 
  is important. 
  •There are tangible and intangible costs associated with 
  turnover. Reducing turnover requires identifying and 
  managing the reasons for both voluntary and involuntary 
  turnover.
  •Voluntary turnover occurs for many reasons. Top reasons 
  include job dissatisfaction, 
  •The dissatisfaction sources are many:
  •poor pay or health-care benefits, few promotional 
  opportunities, and inadequate work-life balance., org 
  culture …stress …work nature …
          TURNOVER
 • High unemployment reduces voluntary 
  turnover …How?
 - When the employee knows its not easy to 
  find a job and unemployment rate is high he 
  will not quit the job easily.
 Retention strategies for reducing Voluntary Turnover
 Any retention strategy begins with identifying the 
 specific causes of turnover within a particular 
 company.
    Describe a comprehensive approach to retaining 
                     employees.
   Experts from a top consulting company suggest 
   building comprehensive retention programs around the 
   steps below. 
                          4-
   • Using effective selection techniques
   • Offering professional growth opportunities
   • Providing career direction
   • Offering meaningful work and Encouraging ownership 
    of goals
       A COMPREHENSIVE APPROACH TO RETAINING 
                                EMPLOYEES
    Using effective selection techniques
  •   Remember, “retention starts up front, in the selection and hiring 
      of the right employees.” The process begins with a thorough 
      understanding of the jobs to be filled. It includes a solid job 
      analysis and an effective and efficient hiring process.
    Offering professional growth opportunities
  •    
      Professional growth is a well-thought-out training and career 
      development program that can provide a strong incentive for 
      staying with the company.