Employee retention is a practice in which the employees are convinced to stay in the organization for the most period of time or until the accomplishment of the plan. There is no scarcity of opportunities for a capable person. There are countless organizations, which are looking for such employees. If individuals are not satisfied by the job they are doing, they might switch over to some other more appropriate job. In today’s upbringing it turns out to be very imperative for organizations to retain their employees (Dibble, 2000). Employee retention is supportive for the organization with that of the employee. Employees today are diverse. They are not the ones who don’t have first-rate opportunities in hand. As soon as they dissatisfy with the current organization or the job, they switch over to the next job. It is the duty of the organization to keep their paramount employees (Phillips and Connell, 2003). Employee retention concerns taking measures to convince employees to remain with the organization for the most period of time. Today employees’ retention has become the major issue for organizations. Hiring knowledgeable workers for the job is essential for an organization. However retention is even more crucial than hiring (Inkson, 2007).
(Huselid, 1995) found that investments in HR activities such as incentive compensation, selective staffing techniques and employee participation resulted in lower turnover, greater output, and improved organizational performance through their impact on skills advancement and motivation.
The prioritization of employees is important to competitive advantage and therefore business success has understood that specific notice has been given to the retention of highly skilled or exceptionally skilled employees that organisation find difficult to effectively substitute (Phillips and Connell, 2003).
The prerequisite to make sure that the most valuable members of employees are retained is, however nothing new with, for example, rational choice economics laying down efficiency pay, where market excess pay is given to attract, retain and initiate the loyalty of high individual employee as a cure to the dear problem of high rates of employee retention. Companies should exercise new retention approach that combines and integrates pay, total rewards, companies’ distinctive culture and value key talent by making them feel important. (Patricia K.Zingheim and Jay R.Schuster, 2009)
The increasing identification of the need to secure commitment from the entire levels of employees has noticeably extended the base on which those that are important within an organization are assessed. This resulted that attention is more and more being paid to the retention of the entire levels of employees rather than just focused on the few (Beach, 2000). Nevertheless, the academic literature remains apparently gravitated towards a thought of the retention of managerial rather than operative grades and this might, partly,...