Today, It has become the fundamental gainsay for the organizations to retain the most talented employees. Hiring knowledgeable employees on the job is essential for an employer but keeping those employees even more important than that of hiring. There are many companies who are always searching for talented employees so such employees have no shortage of opportunities. In this era, employee retention is becoming a critical issue as the result of shortage of skilled labor, economic growth and employee turnover. Many of the companies are facing problems in retaining employees. Although it is hard to measure the exact cost of turnover because a current employee holds with him the knowledge about company, costumers and the past history so when he leaves the organization everything is gone with him, sometimes to competitors, so the exact loss cannot be realized but the industry experts often quote 25% of the average employee salary as conservative estimates. (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”. 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 include lost customers, business and damaged morale. Additionally to settle things include the costs incurred on the time spent in screening, verifying credentials, references, interviewing, hiring, and training the new employee. (Nair) Employee Retention is a process in which the employees are encouraged to be with the organization for the greatest time until the employee retirement or until the project gets completed. Employee retention is beneficial for both the organization and employee in terms of attaining both personal as well as organizational goals. In this era of globalization employees are blessed with good opportunities. As the competition in the market heats up, it is very difficult for the organization to acquire skills, talent and knowledge. As soon as workers feel dissatisfied with the current employer or with the job, they switch over to the next job. It is becoming hard for the employers to keep employees, and if they are failed to do so then they would be left without enough good employees. Being HR personnel one must know how to attract and retain good workers (Sarin) 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...