Employee Retention definition
A function of the HR department tasked with reducing the number of employees leaving the company by improving key processes and conditions. The ultimate aim is happier, loyal employees that actively want to remain with the company.
The first task, and one of the hardest, is measurement of key factors influencing retention rates, such as employee engagement, salary expectations, perception of working environment and perception of managerial ability.
Once these measurements have been taken and the biggest influencers of employees leaving have been identified, initiatives can then be planned and implemented to improve the retention rate.
Employees leaving the company but not subsequently replaced, leaving to a chronic reduction in workforce numbers, form part of the attrition rate.