Companies spend a lot of money and time hiring the right employees for their business. Sometimes, getting the right person for the position takes up to three months. This means that it’s essential for companies to retain their employees for as long as possible. However, this may not be possible if the right leaders do not head the company. 

In fact, a common phrase says, “people leave managers, not companies.” This only shows the number of impacts leaders have on employee retention. In this article, we tell you about the importance of employee retention and some of the roles leaders play to make it successful.

Importance of Employee Retention
Employee retention is a significant labor management problem for many businesses and administrative personnel. It ends up causing considerable operational costs and jeopardizing employers’ development and profit.
Employee retention is more than only limiting the company’s loss when people depart. It also provides an opportunity to improve the company’s success in various vital aspects.

These are some of the benefits of employee retention in a company. 

  • Reduce the cost of hiring and onboarding new employees
  • Improves morale for available worker
  • Boosts employees experience 
  • Increases workforce productivity 
  • Improves customer experience
  • Boosts company culture
  • Increases revenue for the company
  • Improve employee satisfaction

Role and Responsibilities of Leaders in Employee Retention
Leaders of a company have many roles to play for better employee retention. It is the responsibility of the team leader to ensure that the team members are contented with their work and share a good rapport amongst themselves. 
An employee quits his job whenever he is not satisfied with his work. The job must be challenging enough, and the employees should learn something new daily to stick to it for a long time.

Below are some roles and responsibilities of leaders in employee retention. 

  • Appreciating top performers:
    A good leader must be observant and take note of the top performers in their team of employees. These best performers should be appreciated for their excellent job and for bringing good results. 
  • Equal treatment:
    For a company to have little employee turnover, leaders must treat all employees equally. There should be no special rules for some employees and favors for others. 
  • Maintain scope of work:
    Every employee comes with their specialization. As a leader, ensure that each worker gets tasks within their scope of work. Otherwise, some may find it challenging to handle tasks out of their department and quit. 
  • Be a listener to your employees:
    Leaders have the role of listening to the problems of their employees and possibly giving solutions. Workers whose work-related challenges are not listened become demotivated and may quit. 
  • Equal work distribution:
    It is the responsibility of the leaders to distribute work equally among employees. They must ensure that no employee is overburdened – else most may prefer to look for work in better organizations.  
  • Be friendly to employees:
    As much as leaders are in charge of their teams, they should not be unfriendly to colleagues. Leaders must be role models in the company and boost confidence among employees. This will make workers enjoy their work more and improve employee retention. 

In summary, employee retention and human resources is vital for any company that wants to scale its revenue. Leaders play a significant role in ensuring employees feel good about their job and don’t have reasons to leave the company. 

You may read also:

1. A Community of Resigning Employees – Why Not?

2. How HR can Manage Total Wellness on Their Talents