Employee Retention - A Strategic Tool for Organisational Growth and Sustaining Competitiveness

Abstract

Earlier research studies indicate that employee retention is a challenging task for the organizations in todays scenario of competitive business environment. Manpower became a powerful tool for the growth of the organization and sustainability. Proper human resource management initiatives should be adopted by the organizations in order to decrease the employee turnover. The importance and trouble faced by the organizations in attracting the skilled employees and efforts to retain the skilled are the same. This paper explains the importance of employee retention in the growth of the organization and achieving the competitive advantage over the competing firms. The retention strategies should be formulated in such a way that the organizations grow with greater efficiency and innovation and achieve long lasting strategic business objectives. When an organization loses a talented employee there is a huge negative impact on innovation and services provided. The standard of the services provided by the organization declines which in turn affects the organizations growth and profitability. The impact of employee turnover affects the other HR functions like manpower planning, recruitment, selection training etc. It is observed from the past studies that when employees are satisfied with the organizations retention strategies they are more dedicated in doing their jobs and work for the organizations growth and sustain the advantage of competitiveness over the rivals.

Keywords: Employee Retention, Competitiveness, Employee Turnover, Organisational Growth

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