Employee retention has become the fundamental challenge for the organizations. Hiring knowledgeable employees on the job is essential for an employer but keeping those employees is even more important than hiring. Companies are always searching for talented employees who have a large number of opportunities available to them. In this era, employee retention is becoming a critical issue as the result of lack of skilled labor, economic growth and employee turnover. It is hard to measure the exact cost for company associated with turnover. When an employee leaves, he takes with him valuable knowledge about the company, customers, current projects and past history (sometimes to competitors). Often much time and money has been spent on the employee in expectation of a future return. When the employee leaves, the investment is not realized (Importance Of Employee Retention). So we need to understand that basically itself employee turnover is not a disease but it is a symptom of the disease i.e. Failure to retain employees.
The main problem under study in this research is “The impact of human resource practices on the retention of employees”. Employee retention as effective employee retention is the result of systematic attempt by employers. It needs to develop and establish an environment that attracts employees to stay in the organization by following policies and practices in place that meet their needs. It also concerns with the costs associated with employee turnover. Hiring a new employee costs are usually 2.5 times the salary of an individual. The total estimated costs of turnover may consist of customer’s loss, productivity loss and business. Additionally to settle things include the expenses incurred on the time spent in the procedure of hiring new employee i.e. advertising, screening, verifying credentials, interviewing and training him/her (Nair, year?).
Employee Retention is a process in which the employees are encouraged to be the part of an organization for the longer period of time until the employee gets retired or until the project gets completed. For achieving individual as well as organizational goals, it is very much essential to retain talented employees. As the competition in the market heats up, it is very difficult for the organization to hold back skills, talent and knowledge. As soon as workers feel dissatisfied with the current employer or with the current job, they move to the next appropriate job. It is becoming hard for the employers to keep employees attached, and if they are failed to do so, they would be left without enough good and talented employees. Being HR personnel, one must know how to attract and keep good employees (Sarin, year?) because these are the employees who can make or break the organization’s goodwill. (Wisnefski, 2008)
Successful employee retention does not rely on a one single strategy. The decision of employee to stay in the organization is effected by a number of factors...