Employee retention: a good investment for future

Organizations today constantly wrestle with revolutionary trends like accelerating product and technological changes, global competition, deregulation, demographic changes, and at the same time they must strive to implement trends towards a service and information age society.

Due to this business environment, one of the challenges facing many business organizations is the retention of core employees. Society has now become knowledge based where clearly human capital is considered as key resource and indispensable to the survival of the business. Increasingly, organizations are competing for best talent employees. New paradigm companies recognize that an important element in business management practice is the need to successfully motivate and retain high talent employees who survive organizational restructuring, downsizing, consolidation, reorganizing and re- engineering initiatives.

For many organizations, strategic staffing has become an important issue because the ability to hold on to highly talented core employees can be crucial to future survival. The loss of needed talent is costly because of the resultant bidding up of market salaries for experienced hire to replace them, the cost of recruiting and assimilating new talent, the lost investment in talent development and hidden cost of lost productivity, lost sales opportunity and strained customer relationship.