High employee turnover/ Low Retention

Low employee retention is caused by several factors and not many businesses are immune. High turnover rates not only reflect badly on a business but are very costly. A 2012 study showed that it cost 1/5th an employees’ salary to replace them("What Are The Causes Of High Labor Turn Over Rate?", 2014). Costs such as advertising, recruiting, screening and hiring effect the bottom-line of every company. Low retention rates attribute to employee satisfaction, pay and geographical issues. Communication problems within an organization remains one of the top reasons for employee dissatisfaction ("What Are The Causes Of High Labor Turn Over Rate?", 2014). . Poor leadership and communication skills effect an employees’ ability to perform and or feel appreciated for the work that they do. Pay commensurate with experience and cost of living is equally important to job seekers in addition to a work life balance. An employee should be seen as an investment within a company. Adequate pay, training, benefits and advancement opportunities result in a more productive employee who is more likely to remain loyal to their company.

Finding a solution a high employee turnover and low retention rate holds great significance. A high employee turnover and low retention rate negatively impacts an organization in a few ways. Low morale can be a result of high employee turnover which can lead to a decrease of productivity. Financially, it costs more for an organization to have a high employee turnover rate than it is to be able to keep employees. According to Laser (1980) “Employee turnover is expensive, costing American industry billions of dollars every year” (p. 17). These resulting problems emphasizes the importance and magnitude of finding a solution to the original problem. Having a low employee turnover rate