Southwest Airlines accomplished more than thirty years of consecutive profitability, thanks to its 4%
turnover rate, which is half of its competitors. Employees of SWA like their jobs and stay with the
company, this provides the company low recruiting & training costs and customer satisfaction & loyalty.
SWA’s strong relationship with employees that is created in employee-focused workplace is based on
informality, teamwork and dedication to customer satisfaction. SWA compounded its business strategy (low
price, no frills, on time) with its differentiated value proposition to its employees and provided a
high retention rate with pride in the organization, compatible supervisors, fair compensation,
affiliation and meaningful work.
A software development company SAS Institute with 4% of turnover rate is another retention champion.
Considering the average turnover rate is 20-25% in software development business where many employees
leave their jobs for higher pay rates, SAS Institute has shown a remarkable success.
SAS work environment including individual offices for all, flexible work schedules that help employees to
adjust their work and family responsibilities and on-site health facility makes the company a calm and
humane place in a stressful business world and therefore much more valuable for the employees.
SAS has a long-term growth and profitability thanks to its employee-friendly programs. These programs are
recompensed by the potential cost of the employee turnover, which is calculated as between 50-70
millions of dollars per year. Apart from the financial gain, SAS provides itself a greater productivity
of teams that stay together, the knowledge that stays in the company and the bonds that link the
customers to individual employees.