While the global economy has begun to show signs of improvement, companies are facing a huge challenge of retaining talent and arresting attrition. Right from the blue-collar workers to senior level executives from banking, IT and other sectors, all are today moving out from their organizations in search of `greener pastures' leaving the companies in a lurch. This article discusses the current challenges faced by the companies and the steps that could be taken to control attrition, if not eliminate it totally.

During the period of the economic downturn, many political, social and corporate leaders appealed to the industry to think about the employees as well as the jobs in the industry. Commenting on this situation, Director of International Monetary Fund (IMF), General Juan Somavia, while addressing the industrial and emerging economies, said "I think social unrest is here already. That's why the emphasis we're giving to this crisis is—please don't forget the people."While inaugurating the 42^nd Indian Labor Conference at New Delhi, the present Indian Finance Minister, then appealed to the industry not to cut down jobs, but suggested cutting down on salaries to ride over the crisis. Commenting on layoffs during the economic downturn, Vineet Nayar, CEO of HCL Technologies, said that an inclusive strategy would work better in the long run. "Firing employees is easy to do, but it does long-term damage to the organization. If employees feel the company will hire and fire at will, loyalty will go, and take away the fabric of our competitive advantage," he said. These are only a few examples.

During the downturn, companies that sowed the seed with harsh measures like pay cuts and layoffs faced major difficulties in hiring and retaining staff as growth returned back on track. During the last few months, employee churn has picked up in several businesses and few HR experts opine that the manner in which a company treated its staff during the downturn would be a key determinant of attrition and employer-employee relationships.There were cases where the employees faced bitter experiences. For example, a senior official who left a top FMCG company to join a retail outlet with 50% more salary was left in the lurch within nine months of his appointment. The retail firm scaled down its expansion plans and transferred him to a remote location without warning. The official was finally compelled to join his former employer. Even a fresh graduate hired from a Mumbai institute campus by a top IT firm was not spared. He received an e-mail some months ago saying his recruitment has been put on hold. He has now found a new job, but his unpleasant experience with the IT firm will last for quite sometime.

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