Employee retention is important to organizations for many reasons. There are well-known costs associated with employee turnover including financial costs attributed to acquiring new talent, the loss of intellectual capital when an experienced, highly-skilled employee leaves and diminished company morale which has an impact on customer service and performance. Although managers tend to know the importance of employee retention, there are 3 myths managers tend to have that must be busted. Those myths are...

Myth 1: Employee Retention Means Holding on to Employees Forever - Employee retention means keeping good employees for the most appropriate amount of time for their particular function or level. It doesn't mean to continue investing in poor performers.

Myth 2: Management Must be Failing if there is Employee Turnover - Employee retention is relative so to view employee turnover in a vaccum without understanding why people are leaving could lead to inaccurate conclusions. For instance, perhaps a particular department is exceptional at grooming leaders who move on to leadership roles or perhaps there are geographical cultural differences that can explain fluctuations in employee retention. What is normal in one geographical area may be abnormal in another. 

Myth 3: Employee Retention Starts with Employees - The first step to employee retention is hiring the right people. Therefor, retention actually starts with prospects who may become employees. This is an important differentiator because many managers may ignore the influence their hiring practices have on employee retention focusing solely on things such as development opportunities, coaching, management effectiveness, etc.

What other myths do you believe exist when it comes to employee retention? What are some ideas you have on the best way to retain good employees?