What is Employee Retention?

Employee retention is the process through which employees are encouraged to continue with the same organization for the maximum period of time possible. The present day employees are aware of the opportunities available to them and as soon as they feel dissatisfied with their present job or employer, they change their job immediately. On the other hand employers do not want to lose their good employees thus it becomes important for them to know how to attract and retain their employees. There are four basic factors that play an important role in retaining the employees. These are salary and remuneration, recognition, benefits and opportunities for personal growth.

Adopting the following practices could also lead to employee retention:

(i) Open communication inculcates a feeling of loyalty among the employees. The employees are also aware of the fact that their opinion matters and the organization is interesting in knowing their views.

(ii) Career development program: It is human nature to worry about the progress of the career of an individual. The organizations that provide opportunities for enhancing the knowledge and skills are preferred by employees.

(iii) Recreation facilities: These facilities help in keeping away the stress from the employees. Different recreational programs include trips by employees, sports activities and celebrating anniversaries at the organization.

Other practices that could be adopted for employee retention are Employee Reward Programme, performance base bonus and gifts to the employees.