I recently read a very interesting article about the importance of human capital to businesses in the “knowledge era.” The premise was that companies who are able to maintain high employee retention rates are generally more successful. Employee retention effects customer satisfaction which in turn impacts customer retention and ultimately the business’s bottom line.
The best employees are seeking learning and growth opportunities from their employers. Employers can demonstrate their commitment to employee development by offering skills training for people in new positions as well as training to help employees make it to the next step. Similarly, a company who offers tuition reimbursement or generally encourages their employees to pursue professional development gives an employee less reason to move elsewhere.
When an organization fails to understand the importance of their human resources, it will not thrive. If your best employees leave, they take with them a wealth of institutional knowledge, experience, successful relationships with customers, etc. The cost of replacing an employee includes not only advertising, screening, interviewing, reference checks, training, but also the variable costs of damaged employee morale and lost business.
According to a Gallup survey, employees who have an above-average attitude toward their work will generate 38 percent higher customer satisfaction scores, 22 percent higher productivity, and 27 percent higher profits for their companies. The benefits of employee job satisfaction are clear. If an organization is serious about attracting and retaining the best employees, as well as building a successful business, it must invest in employee development.
Six Tips for Increasing Employee Retention
Evaluating Your Employee Retention Program


