Talent Retention Provides Better Results for Companies reports RolePoint
(EMAILWIRE.COM, November 23, 2012 ) San Francisco, CA -- Companies are looking to organize their strategies of retaining talent, as employees look to find longer-term work. Cost on retention is simply more effective than hiring is, according to strong levels of research by Leadership in Business, Worldwide.
According to the LBW, the cost of replacing employees ranges from 29% to 46% depending on management or non-management in annual salary.
There are the costs such as induction, training, administrative costs that are involved with a persons interim phase. This is a domino effect, which takes into account the amount of working hours that are allocated by the rest of the company to accommodate the nurturing of the training process. The totality of the hiring cost expresses a 25% of the annual salary.
New employees can also carry with them a higher salary based upon the newly entered skills they possess. Companies are increasingly mapping their employee retention and hiring costs, in order to calculate their best courses of action regarding the possible hiring scenarios.
Companies like Asian Paints, talent strategies are strongly tilted toward the grow from within paradigm.
"Asian Paints has grown its own talent steadily over the years by acquiring them from campuses. People are picked up early, trained, grouped and rotated through different functions. Therefore, we're able to develop a pipeline of leadership at mid- to senior-levels. I don't think compensation is the only element that matters to people. When you bet on a company, you bet on it for some time to come. We are not necessarily a top payer in absolute terms, though we certainly are competitive in our segment," said Ernest Louis, vice-president (HR), Asian Paints.
The strategy has paid off; Asian Paints is attempting to strengthen the strategy in order to stay in line with its future needs.
"Being relatively new to the company, I'm occupied with the thought as to how things can change to keep pace with the future. For instance, issues such as how to handle the cross-generational workforce-workplace flexibility are the type of HR issues that need tackling, said Louis.
He added, Employees are also looking at a place which provides them with an opportunity to do unique things. The challenge is about creating a workplace of the future to envision the same and start putting the building blocks early, else we will be caught napping!"
New research has indicated that correlations between retention and organizational performance in regards to customer satisfaction are positive.
"As jobs become more niche and complex, I believe we will see a shift in the attitudes of both employers and employees in terms of changing jobs. Employers will find that on niche skills sets, the return on investment will be after a longer lag time, says Dr. Tulika Tripathi of India.
As a result, employers are likely to pay a premium for or prefer to hire people who have spent longer periods of time with their previous employers, he added. As jobseekers see a market premium being offered to people who have shifted less and as their current employers focus more on retaining them, we will see a gradual shift to people changing jobs less often.
RolePoint (http://www.rolepoint.com/) provides businesses with talent searches and retention strategy. Get a free quote today and follow RolePoint through twitter, or contact by email to find out how the company can help potential clients at http://www.rolepoint.com. Visit rolepoint.com today to learn more.
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