The Impact of Human Resource Practices on the Retention of Employees

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Introduction: Today, It has become the fundamental gainsay for the organizations to retain the most talented employees. Hiring knowledgeable employees on the job is essential for an employer but keeping those employees even more important than that of hiring. There are many companies who are always searching for talented employees so such employees have no shortage of opportunities. In this era, employee retention is becoming a critical issue as the result of shortage of skilled labor, economic growth and employee turnover. Many of the companies are facing problems in retaining employees. Although it is hard to measure the exact cost of turnover because a current employee holds with him the knowledge about company, costumers and the past history so when he leaves the organization everything is gone with him, sometimes to competitors, so the exact loss cannot be realized but the industry experts often quote 25% of the average employee salary as conservative estimates. (Importance Of Employee Retention) So we need to understand that basically itself employee turnover is not a disease but it is a symptom of the disease i.e. Failure to retain employees. The main problem under study in this research is “The impact of human resource practices on the retention of employees”. Effective employee retention is the result of systematic attempt by employers. It needs to develop and establish an environment that attracts employees to stay in the organization by following policies and practices in place that meet their needs. It also concerns with the costs associated with employee turnover. Hiring a new employee costs are usually 2.5 times the salary of an individual. The total estimated costs of turnover may include lost customers, busin... ... middle of paper ... ..._retention.htm • Importance Of Employee Retention. (n.d.). Retrieved May 22, 2010, from retention.naukrihub: http://retention.naukrihub.com/importance-of-employee-retention.html • Nair, S. S. (n.d.). Employee Retention. Retrieved May 23, 2010, from articlesbase: http://www.articlesbase.com/human-resources-articles/employee-retention-995426.html • Retaining employees. (n.d.). Retrieved May 22, 2010, from bdc.ca: http://www.bdc.ca/en/business_tools/ask_professionnal/archives/hr_retain.htm?iNoC=1 • Sarin, A. (n.d.). Role & Importance of Employee Retention - HR Article. Retrieved May 22, 2010, from contentwriter.in: http://www.contentwriter.in/articles/hr/employee-retention.htm • Sinnott, G. C., Madison, G. H., & Pataki, G. E. (2002). EMPLOYEE RETENTION. New York State. • Wisnefski, M. (2008). Employee Retention In The New Millennium. BUSINESS SERVICES , 16 (3).

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