Need and Importance of Employee Retention

In the current scenario, employee retention has become a significant concern for businesses. An individual, once being trained, have a tendency to move to another company for better prospects. Lucrative salary, growth prospects, comfortable timings, better ambience, are some of the factors which motivate an employee to look for a change. Thus, it important for businesses to use strategies to retain employees so that their talented employees don’t move out or switch their jobs.

Let’s see why there is a need to understand the importance of employee retention.

Hiring Is Not an Easy Process

The process of hiring involves shortlisting few individuals from a large talent pool, conducting preliminary interviews and eventually forwarding the shortlisted applications to the respective line managers who further test them to judge whether they can be a right fit for their organization or not. Thus, recruiting is a time-consuming process. So, you can’t afford to lose your talented employees.

A lot Of Time & Money Have been Invested in Grooming the Existing Employees

An organization invests a lot of time & money in grooming an employee to make them ready for their position work and understand the corporate culture. When an employee leaves the organization, and a new joinee comes in who is completely raw, then management has to work really hard to train them for overall development. This will be a complete wastage of time & money. Thus, it is important for a business to use corporate social responsibility strategy as strategies to retain employees so that they don’t have to go through the entire procedure again.

They Are Most Likely To Join Competitors

When an employee resigns from a particular position from their present organization, it is likely that they would join your competitors. In such cases, employees may take all the strategies, policies from their current organization to the new one. Individuals sometimes share all the important data, information & statistics with the new organization and in some cases, they may even leak the secrets of their previous organization. To avoid such situations, it is important to retain such employees and also make them sign a document as a part of corporate social responsibility strategy to stop them from passing on any information even if they leave the organization.

They Are Familiar With Company’s Project & Policies

The employees working in an organization for a longer period of time are more familiar with the on-going projects, company’s policies, guidelines and thus they know how to comply with them. They tend to perform better than those who change their jobs frequently. Therefore, employees who have spent considerable time in an organization must be retained with the organization.