Employee experience & Retention rate

 

 Employee experience & Retention rate 

Employee experience:

                                            Employee experience is a worker's perceptions about his or her journey through all the touchpoints at a particular company, starting with job candidacy through to the exit from the company. The company's physical workspace, culture and technology are all important components of the employee experience, which is often abbreviated as EX.

                                     It can be defined as "The cumulative assessment of an employee’s interaction with your company and its people,” says Julian Lute, senior strategic advisor at Great Place To Work.

                                      A great employee experience is the result of people who are able to come together and help each other out, offer support, and collaborate in meaningful, productive ways.

                                                

Figure 01: Employee experience By Josh Bersin

Every company wants happy employees, but employee experience goes far beyond making people happy. It’s about attaining the benefits that come along with happy, engaged, productive employees. There are lot of benefits of employee experience. They can be simply present as follow;

* Create camaraderie

* Improve engagement

* Attract and retain talent

* Enable work support

* Foster collaboration

* Prioritize wellbeing

* Inspire creativity

* Feed the bottom line 

* Grow professionally

A successful employee experience strategy will impact every aspect of your business. Therefore it should be improved employee experience strategy to develop a successful organization as well as business. We can do follow things to improve employee experience.

Invest employee well-being

Design a great onboarding experience

Offer workplace flexibility

Build diversity, equity and inclusion at all levels of the employee journey

Use employee experience surveys

Retention rate:

Figure 02: Employee Retention By Oracle netsuits

Employee retention rate is a metric that measures the percentage of employees who remain employed over a specific period. A high employee retention rate reveals a noteworthy level of employee engagement. The formula to calculate employee retention rate is:

(nu of individual employees who remained employed for entire measurement period /

nu of employees at start of measurement period) x 100

Retention rate helps to understand whether the organization provides a positive employee experience and engages the staff. It ultimately shows the company's ability to retain a stable workforce.

Why should HR leaders care about employee retention rates?

* Reducing company cost  

                      Replacing an employee costs 6 to 9 months’ salary on average. So understanding retention rates to reduce costs is vital. 

* Increase employee productivity 

                      The longer someone stays with the organization, the more productive they become. This is because employees understand how to do things much faster, are able to make connections faster, and get things done better.

* Improve employee engagement

                          

                       Understanding the retention rate allows  to work on aspects crucial to employee engagement – such as building your organizational culture, improving employee morale, developing talent pipelines, and creating effective teams.

* Address recruiting issues

                       The  retention rate will indicate the areas of focus as an organization. It will understand if you are at risk in certain roles and in certain departments. As a result, you’re able to work proactively to address any problems that might occur. 

. When we focusing about the employee experience and retention rate  employee's experience from before they start through the time they leave – and beyond – should be the key driver in how you shape your retention efforts.

Conclusion:

Work is not just transactional for many employees. Employee experience enhance the retention rate and Help to employees understand their impact on the business and the world around them can give them a sense of participation and help improve their sense of fulfillment. Hence there is a huge connection between employee experience and retention rate. 

References:

Tran, H. and Smith, D.A., 2020. Designing an employee experience approach to teacher retention in hard-to-staff schools. NASSP bulletin, 104(2), pp.85-109.

Dutta, A.B. and Banerjee, S., 2014. Study of employee retention. International Journal of Business Management & Research, 4(1), pp.83-88.

What Is Employee Experience? Definition & Proven Strategies [online]  Available at: https://www.greatplacetowork.com/resources/blog/what-is-employee-experience#:[Accessed on 19th  Apr. 2023]

What makes a great employee experience?
Why is Employee Experience Important?

[online]  Available at: https://spaceiq.com/blog/why-is-employee-experience-important/.[Accessed on 19th  Apr. 2023]

How to calculate your employee retention rate [online]  Available at: https://www.peoplekeep.com/blog/how-to-calculate-hr-employee-retention-rates.[Accessed on 19th  Apr. 2023]

How do I calculate retention? Is retention related to turnover? [online]  Available at: https://www.shrm.org/resourcesandtools/tools-and-samples/hr-qa/pages/calculatingretentionandturnover.aspx [Accessed on 19th  Apr. 2023]

10 Employee Retention Metrics and KPIs HR Departments Should Track  [online]  Available at: https://www.netsuite.com/portal/resource/articles/human-resources/employee-retention-metrics.shtml[Accessed on 19th  Apr. 2023]

Improve Retention by Elevating the Employee Experience  [online]  Available at :https://peoplepath.com/blog/improve-retention-by-elevating-the-employee-experience/[Accessed on 19th  Apr. 2023]