A Study on Turnover and Employee Retention: A Closer Review

From a managerial perspective, the attraction and retention of high-quality employees is more important today than ever before. A number of trends (e.g., globalization, increase in knowledge work, accelerating rate of technological advancement) make it vital that firms acquire and retain human capital. While there are important differences across countries, analysis of the costs of turnover (Hinkin and Tracey, 2000) as well as labor shortages in critical industries across the globe have emphasized the importance of retaining key employees for organizational success. Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. With the increasing attrition in organization, it has become a question of study. This paper deals with factors that are affecting the retention of employees and its impact on the organization.