The Library
EMPLOYEE ENGAGEMENT BROAD

What Is Employee Retention? Importance, Benefits, and Calculation - Oracle

unknownMarch 22, 2024 6 min read
employee retention employee engagement turnover employee experience hcm technology workforce management gallup organizational performance

Editorial summary. This is our text summary of an article published by gnews-employee-engagement-broad. Charts, figures, and the author’s full voice are at the original — read it there .

Editorial verdict

Vendor-influenced. The foundational retention data from Gallup is credible, but the article functions primarily as Oracle product marketing — treat the framework as useful orientation, discount the case study as promotional content.

Executive summary

This article, authored by Oracle content strategist Grant Kieckhaefer and published in March 2024, addresses the concept of employee retention — its definition, strategic importance, measurement, and improvement methods. The author argues that retaining skilled employees is essential to organizational efficiency, innovation, and competitive advantage, and that high turnover imposes significant financial and reputational costs. Key evidence is drawn from a 2022 Gallup global survey, which found that over half of employees expressed interest in leaving their jobs, 59% were quietly disengaged, 18% were actively disengaged, and low engagement collectively costs the global economy an estimated US$8.8 trillion. The article presents a formula for calculating employee retention rates, outlines ten cited best practices for improving retention, and features a case study of Silver Fern Farms — a New Zealand food manufacturer with 7,000 employees — which implemented Oracle Fusion Cloud HCM and reported a 10-day reduction in compensation review cycles and improved employee goal-setting participation. The article concludes by positioning Oracle's HCM platform as the enabling infrastructure for effective retention strategies.

guideRelevance: 6/10Global

Key insights

  • 1A 2022 Gallup global survey found that more than half of employees expressed some level of interest in leaving their jobs, with 59% quietly disengaged and 18% actively disengaged, costing the global economy an estimated US$8.8 trillion.
  • 2Employee retention is directly linked to the employee experience — encompassing the full lifecycle from onboarding through exit — with engagement, culture, pay, and well-being identified as the top factors employees cite as areas for improvement.
  • 3High employee turnover generates compounding costs beyond direct recruitment and onboarding expenses, including loss of institutional knowledge, reduced morale, productivity decline, and reputational damage with customers.

Practical takeaways

  • Organizations can calculate their annual employee retention rate using the formula: [(employees at end of period – new employees during period) / employees at start of period] × 100, enabling year-over-year benchmarking.
  • Exit interviews and current employee feedback represent concrete mechanisms for diagnosing retention weaknesses and measuring the effectiveness of implemented retention strategies over time.

References

  1. Gallup (2022).2022 Global Employee Engagement Survey.

Source & Provenance

Verified
Publisher / Source

gnews-employee-engagement-broad

Author

Not specified

Publication Date

March 22, 2024

Article Type

Practitioner Guide

Geography

Global

Content Type
Unknown Source Type
Original Source

Original source metadata is preserved. AI analysis is generated separately.

Like this? Get the Monday Decision Brief — free, every week.

No spam, unsubscribe anytime.

Rate this article

Want the full article? Read it at the original source — free, no paywall.

Read original article
All content belongs to original publishers. AI analysis is for research purposes only. View original source.