|
The term `employee retention' first popped up on the business scene during late 1970s. Till then, the fundamental nature of the association between an employer and an employee had been a statement of the status quo: "Work for me, perform better, and as long as financial conditions permit, I will continue to give you work." During 1950s and even 1960s, it was not uncharacteristic for people who entered job market to associate with the same employer for a long time, sometimes, even for their entire life. Any one, who changed jobs, would be seen as an eccentric and out of the ordinary. However, all that changed during the mid-1990s, as it signaled what has now become a common characteristic of the HR arena: job hopping and low or no loyalty to the employer. The trend is now widely prevalent across businesses: job mobility is a reality of the business life and so is the employee churn.
No surprise that today, retaining key employees is a major strategic challenge facing the companies and is also critical to the latter's long-term prosperity. Retaining best employees guarantees smooth functioning of the business, effective execution of business plans, and high employee morale. Given that, talented and motivated employees are the last ones an organization can afford to lose.
Why do some employees stay while some leave? The reasons are interrelated and diverse. The motives depend on each employee's preferences and needs. The very reason for some employees to leave may be the cause for others to stay. As a result, it is important to understand employee's needs and to address them. |
