Term Paper on Employee Retention

Executive Summary

• Employee retention is very important and critical for any organization due to various reasons.
• This project report emphasizes on the various reasons for employee attrition and suggest tools and strategies available with organizations to retain its employees.  
• Based on interview with industry experts, secondary research as a group we suggest and recommend that employee retention should be on the priority list of any HR manager and should be given equal importance and weight age as compare to other key activities and practices.

Back Ground

• Employee retention refers to the ability of an organization to retain its employees.
• Retaining good talent is of paramount importance for any organization however with the growing competition and globalization, the cost of retaining talent is becoming a challenge for organization’s.
• Well drafted employee retention policies and its judicious use may result in lower employee attrition and greater profitability for an organization in long run.

Importance of Employee retention:

     The high attrition rate causes following which results into losses to an organization:

a.  High cost of employee turnover

b.  Loss of knowledge and goodwill

c.  Loss of efficiency

d.  Loss of trust and faith among existing employees

e.  Poor quality of services to customers

Main Reasons for Employee Attrition

• Relationships with Boss and Co-workers
• Lack of recognition
• Overall corporate culture
• Work-life Imbalance
• Employee Misalignment
• Limited advancement opportunities
• Inadequate salary and benefits
• Organizational Instability .
• Autonomy and Independence to use skills and abilities