Employee Retention and Its Effects on the Organization

Executive Summary

Since the humanity has stepped into the twenty first century, the technological advancement and human behavior theories have been revolving around varied and distinct human behaviors. In the business arena, an organization has traditionally relied upon its capital and financial asset. However, the new millennium has brought changes in the organizational perspective of human resource. Now, organizations either small or large scale, all rely upon the talent and skills of their employees and view them as a valuable asset to the organization. With the passage of time, organizations are engaging into practices to make the most of their intellectual capital and to earn a competitive advantage in the market.

To remain competitive in the industry, every organization aims to recruit fresh talent and provide them with professional training and learning opportunities that can enrich the worth of the organizational assets. The research will identify that how organizations are now more focused on enhancing skills of their employees to achieve the desired customer satisfaction level and increased brand loyalties. As the market trends are changing so, are the organizational strategies to retain the valuable assets of the organization i.e. employees.

However, research statistics indicate that the past few years have been crucial for organizations to retain the best talent. The increasing trend of employee turnover has been affecting every type of business. When an employee voluntarily wishes to leave an organization there are many factors associated with it and a package of cost that has to be born by the organization. Employee turnover is being blown higher due to the inappropriate management system, poor and insecure workplace environment that causes employees to leave the organization. An organizational culture that is difficult to be associated with less privileged living style and low morale to work may come on the list when identifying reasons of increased employee turnover.

The research will observe that when employees leave an organization they are not the only one to suffer the circumstances, but the organization will also have to share it by accepting the challenge of filling the vacant positions as soon as possible and to sustain the morale in the workplace. The research will discuss the various underlying reasons that can cause an organization to engage in employee retention activities to retain and sustain the best talent in the long run that can help it achieve not only its business objectives, but also to earn a distinct position in the marketplace. The research will study the impact of employee retention strategies on the organizational performance and identify the unevenly cost burden that an organization will have to face if it fails to retain its employees.

The research will review the prior literature on the subject matter to outline a specific and concise sense of direction to address the research question. The literature has recognized employee turnover as a serious threat to the organization and its leadership that may turn in serious social and financial crisis. The research will determine various measures that can ...