Employee Retention Matrix

The Employee Retention Matrix is a strategic tool used by businesses to assess and categorize employees based on their performance and retention risk. This matrix helps in identifying high-performing employees who are at risk of leaving and those who need development, enabling targeted retention strategies.

At a very high level, the Employee Retention Matrix is used in the context of business, human resources, management.

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What is the Employee Retention Matrix?

A visual explanation is shown in the image above. The Employee Retention Matrix can be described as a matrix with the following quadrants:

  1. High Performance/Low Retention Risk: These are your star employees who are performing well and are likely to stay. Example: Jane, a top sales performer who is highly engaged.
  2. High Performance/High Retention Risk: High performers at risk of leaving. Example: John, a key developer who has received job offers from competitors.
  3. Low Performance/Low Retention Risk: Underperformers who are not at immediate risk of leaving. Example: Mary, an administrative assistant struggling with her tasks but has no plans to leave.
  4. Low Performance/High Retention Risk: Underperformers at risk of leaving. Example: Tom, a customer service rep with poor performance and low job satisfaction.

What is the purpose of the Employee Retention Matrix?

The Employee Retention Matrix is a valuable framework for human resources and management teams to evaluate their workforce. This 2x2 matrix categorizes employees into four quadrants based on two key dimensions: performance and retention risk. The quadrants are:

  • High Performance/Low Retention Risk: These are your star employees who are performing well and are likely to stay with the company. They require recognition and continued engagement to maintain their satisfaction.
  • High Performance/High Retention Risk: These employees are high performers but are at risk of leaving. They need targeted retention strategies such as career development opportunities, competitive compensation, and increased engagement to reduce their turnover risk.
  • Low Performance/Low Retention Risk: These employees are not performing well but are not at immediate risk of leaving. They may need performance improvement plans, training, or reassignment to roles that better fit their skills.
  • Low Performance/High Retention Risk: These employees are underperforming and are also at risk of leaving. They require immediate attention to either improve their performance or manage their exit from the company.

By using the Employee Retention Matrix, companies can develop tailored strategies to improve employee satisfaction, enhance performance, and reduce turnover. This matrix is particularly useful during performance reviews, succession planning, and when designing employee development programs.


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What templates are related to Employee Retention Matrix?

The following templates can also be categorized as business, human resources, management and are therefore related to Employee Retention Matrix: Product-Market Matrix, 4 Ps Marketing Mix Matrix, AI Capability-Value Proposition Alignment Matrix, AI Innovation-Value Alignment Matrix, AI Maturity Matrix, AI-Value Proposition Alignment Matrix, AI-Value Proposition Matrix, AIDA Marketing Matrix. You can browse them using the menu above.

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