The Importance of Employee Retention

Some employees change jobs frequently. Others rarely change at all. Whichever the case, companies need to do their best to hold onto their employees. Why? It may already be obvious, but one reason is to maintain a consistent environment. When there is constant change in an environment and the employees, new employees require heavy initial investment because of training. During that valuable training time, it will potentially bring down the productivity of all other employees because the rest of the company needs to make up for the amount of work the previous employee had completed. And because the remaining employees have to spend time executing those duties, they are unable to spend their time doing something that can create further sales and growth for the employee.

The second and less obvious reason that employee retention is important is because typically when someone loses or changes a job, they take their value, their network, and their current sales directly to the companies’ competition. Let’s say that I worked at Nike for 10 years. During those 10 years, I would have built an extensive network and a great amount of knowledge in the field that I worked for. However, certain circumstances caused me to part ways with Nike. Where do I apply? Granted that I have built that network and knowledge, I would most likely seek jobs in the same field. The first places that I would apply to is Nike’s competitors: Adidas, New Balance, etc. I would be able to take all of my contacts over to that company.

I have recently met a very well-connected person in Columbia Sportswear. He worked as the director of development in footwear. His design work is exceptional, his work ethic is stellar, and he has a warm-hearted disposition. Through him, I have been learning so much about the industry. He is a case in point. He is filled with so much value. Makes me think, what efforts can I make to retain employees when I am in charge of them…

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