Employee Retention - A Strategic Tool for Organisational Growth and Sustaining Competitiveness

Earlier research studies indicate that employee retention is a challenging task for the organisations in today's scenario of competitive business environment. Manpower became a powerful tool for the growth of the organisation and sustainability. Proper human resource management initiatives should be adopted by the organisations in order to decrease the employee turnover. The importance and trouble faced by the organisations in attracting the skilled employees and efforts to retain the skilled are the same. This paper explains the importance of employee retention in the growth of the organisation and achieving the competitive advantage over the competing firms.

The retention strategies should be formulated in such a way that the organisations grow with greater efficiency and innovation and achieve long lasting strategic business objectives. When an organisation loses a talented employee there is a huge negative impact on innovation and services provided. The standard of the services provided by the organisation declines which in turn affects the organisation's growth and profitability. The impact of employee turnover affects the other HR functions like manpower planning, recruitment, selection training etc. It is observed from the past studies that when employees are satisfied with the organisation's retention strategies they are more dedicated in doing their jobs and work for the organisation's growth and sustain the advantage of competitiveness over the rivals.