Many companies face the challenge of employee turnover, and incur heavy losses. The employers provide several attractive packages in order to retain the employee. Reasons for employee turnover constitutes several controllable and non-controllable factors. This article narrates the various issues concerning employee turnover and suggests alternative measures to retain employees.
Good economic times means lowered unemployment, increased productivity, and better prospects for growth in all sectors. However, economic prosperity also means increased job-hopping among the job seekers. Opportunities abound everywhere with increasing competition for talent among companies. Frequent job changes are no longer a stigma, but they are becoming the norm. The issue of employee turnover is so pronounced in today's world, that even in Japan, where life-time employment and high employee loyalty are the norms, workers are becoming increasingly mobile. Even survival will become questionable, if the company witnesses higher turnover among the top performers. With the increasing mobility among the workers, "employee retention" poses a distinct challenge to any company. Moreover, employee turnover rate provides valuable means of assessing the effectiveness of HR policies and practices in an organization. This article analyzes the issues and challenges of employee retention and presents a case on HR practices followed at Satyam Computer Services Ltd., to enhance employee retention.
Employee retention is now a very crucial issue, because in the 21st century, the only sustainable source of competitive advantage for any company is "Human Resource". To maintain a stable workforce, employers must deliberately engage in retention activities. These efforts range from offering attractive compensation packages to involving employees in every sphere of the functioning of the organization. Today's employers prefer to have a stable, committed, flexible workforce who are willing to learn and develop. Since sophisticated skills are scarce, there is always heavy competition among the employers to attract the best talents to enhance their competitive positions in the market. Becoming an Employer of choice and using Employer branding are some of the efforts made by the employers to create a tangible work atmosphere in order to attract and retain the best talents available in the market. |
