Employers Rank Retention As Top Operational Priority Right Now
HRDIVE, Monday, August 7,2023
With high turnover rates, companies are more focused on retention than revenue and sales growth, according to a Gallagher report.
Employee retention has become the top priority this year for both operations (51% of respondents) and HR (66% in turn), according to Gallagher's 2023 U.S. Organizational Wellbeing Report.
More than half of employers (51%) experienced a turnover rate of at least 15% in 2022, inching up three points from 48% in 2021. In response, companies are adjusting compensation and benefits to improve retention rates.
'An organization's ability to retain employees ultimately impacts its bottom line because hiring and training a new employee usually costs much more than retaining someone who is already on the payroll,' William Ziebell, CEO of Gallagher's benefits and HR consulting division, said in a statement.