The cost of employee turnover adds hundreds of thousands of rupees to a company’s expenses, says Dr Rashi Agarwal
Now that so much is being done by organisations to retain its employees, why is retention so important? Is it just to reduce the turnover costs? Well, the answer is a definite no. Average attrition rate in hospitals is about 15 to 25 per cent. Apart from turnover costs, there are several other reasons why the process of employee retention will benefit an organization.HR costs are about 30 per cent of the total hospital cost. Salaries increase anything from 12-14 per cent every year. With increasing demand for talent both within the country and internationally, the challenge for any human resource department is attraction and retention of staff. A major challenge for the healthcare industry would be not only to retain the workforce but also to develop an environment which would attract those abroad to return.
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