The Influence of HR Practices on Retention of Employees: Evidence from Literature Review

Employee retention is a critical aspect for every company regarding competitive advantage because human resource is the most critical asset of today's modern world. Other resources can be arranged effortlessly but to get efficient and retain talented human capital is the most difficult task. Therefore, organizations are now more focused towards employee retention. Organizations use different HR techniques for retention. It is the most imperative target for the organization, because a huge amount is spent on the orientation and training of the new employees. In fact, literature on employee retention shows that wooing existing employees through employee development or talent management programmes costs less than acquiring new talents, while the initial cost of attracting the new employees has already been expended. So the need is to focus on the factors that affect retention which in turn leads to growth and success of organizations. Studies suggests that retention strategies, which effectively satisfy the needs of all employees consequently enhances the ability for companies to adapt more effectively to ongoing organizational change. Keeping this in mind, the literature has been reviewed. This paper describes the relationship between human resource practices and employees retention in organizations. The main purpose is to identify elements of HR practices that influence employee retention.