INTRODUCTIONOver the past two years, employee retention at Family Video has declined significantly. Employee retention has increased from sixty-five percent to a staggering fifty-two percent over the past two years. Family Video is currently experiencing an average growth of sixty new stores each year. With this rapid growth, Family Video needs to focus on how to increase employee retention. Employee retention requires much more than just competitive salaries and excellent benefits. Employee recognition and performance-based pay are just two ways to start retaining the best in you. Employees want to feel part of something bigger than themselves. Corporate volunteer programs are a proven way to improve employee morale and retention. This report will briefly show that Home Video is already doing all that is needed when it comes to compensation, benefits, and advancement opportunities. He will explain how a corporate volunteer program would be the best choice for the company to help increase employee retention. Other benefits resulting from a corporate volunteer program and program costs will also be presented. COMPETITIVE SALARIES The first thing a company usually looks at when trying to increase employee retention is employee salary. Family Video does not need to focus on changing employee salaries because we already offer competitive salaries. The area where employee retention is low includes store employees. This includes part-time employees, assistant managers and store managers. The chart below shows that Family Video salaries are actually higher than our two main competitors. Compared to Blockbuster and Hollywood Video, our hourly wages are on average one to two dollars higher than our competitors. Our payroll managers' salaries are two to six thousand dollars higher than Blockbuster and Hollywood Video (About Blockbuster, 2005, Jobs for Friendly People, 2005). $6.00/hourASSISTANT $9.00-$11.00/hour $8.00-$9.00/hour $7.00-$8.00/hourMANAGER $36,000-$38,000 salary $32,000 -$36,000 salary $30,000-$35,000 Figure 1. Salaries of Family Video and top two competitors employee salaries to increase employee retention would be a waste of time and money for Family Video. Since the company's employee salaries are higher than those of our main competitors in this sector, increasing them would not have a significant impact on the recruitment and retention of employees seeking careers in the video retail industry. ATTRACTIVE BENEFITS Many employees when looking for a job or deciding to keep their current job often consider the benefits offered by the company.