Employee retention is very significant for the performance of the company, since it helps in gaining loyalty from the employees. Moreover, employee retention leads to a good employee-management relationship, which tends to impact the company positively, since the employees can offer the best services to the company (John & Pam, 2002). Moreover, employee retention improves the employee turnover rates, thus allowing the company to be able to effectively provide the best services to its clients. Furthermore, this is very significant as it allows the employees to work very hard in order to gain more bonuses and even rewards (John & John, 2002). This is consequently because, in order to be able to retain employees in the company, the management needs to reward them for their performance, or even increase their salaries.

There are many steps which can be taken in order to improve employee retention, and this may include the following. Developing a business plan, developing a business plan consequently helps in providing the managers with the consequences of employee turnover rates. Secondly, developing a compensation plan, and thirdly rewarding the employees (John & John, 2002). Developing a compensation plan helps in calculating the cost of retaining employees, thus being able to understand how effective it might be. On the other hand, rewarding the employees is one of the best ways of retaining employees, since this makes the employees to feel appreciated thus providing the best services for the company. Employee retention is very significant on the workforce, since it helps in the creation of understanding between the management and the employees, thus leading to an improved work output (Sharon & Nancy, 2012).

Optimizing work schedules and ensuring long-term profits is the main function of workforce planning, since it seeks to provide the best work schedules, hence improving the delivery of work output in the company. This therefore translates to long-term profits in the company, since improved work output leads to increased profits (John & Pam, 2002). On the other hand, developing a business plan falls under recruitment and employee retention. The management of the company is supposed to recruit and even maintain employees, in order to ensure improved performance of the employees (John & John, 2002).

Reference

John. Izzo & Pam Withers. (2002). Winning Employee-Retention Strategies for Today’s Healthcare Organization: Healthcare Financial Management.

John Gering & John Conner. (2002). A Strategic Approach to Employee Retention: Healthcare Financial Management.

Sharon. B, & Nancy Shanks. (2012). Introduction to Healthcare Management: Jones & Bartlett Learning.