Why Employee retention is important?

Ashok Reddy
3 min readMar 1, 2020


Why Employee retention is important?

In today’s dynamic world of business, every company tries to get the best resources possible to build a competitive edge over the others. Human resources play a vital part in the success and failure of a company. Finding a human resource with the level of skills and knowledge is a herculean task in itself, with more and more companies focusing on the same. Even if the company manages to attract talent into the company the next best challenge comes in the form of retention of the employee.

When one of the employees resigns, it creates a new challenge for the managers which adds to their regular job. The departure of the skilled and experienced professional creates pressure on the managers to find a similar or better replacement so that the operations of the business are not affected. Not only this but it also poses a challenge in terms of its effect on the other employees of the team.

A departure or just a notification of the same creates ripples in the other employees, impacting their perception about the current job and if they have to look for the change as well. Here is where the employee retention role comes into play, to save the company from the impact of employee turnover. Employee retention can be defined as the different policies and practices that help the management to make employees stay for a longer period of time in the company.

Moving forward, let’s discuss the importance of employee retention in business:

There can be many reasons for an employee to leave the organization, the company has to develop policies to ensure most of these reasons do not play a role in the departure of the employee. The following will provide more information on why retention is important:

Hiring is tough: Once a person leaves an organization, the void created needs lots of effort and resources from the organization to get filled again. This is a tough process as more and more companies compete to get the best professionals out there.

Investment at risk: A company spends a lot in grooming employees to make them at par with others. This requires lots of hours and other resources. A good retention policy can ensure that this investment of the organization provides profitable returns for a longer period of time.

One’s loss is other’s advantage: If a skilled and professional leaves the organization, there is a chance that he might join the competitor and reveal the operational data to them. Strick measures to ensure the safety of information can ensure that employees are retained with the organization.

To retain loyalty: It is an understood fact that people can be hired though may take time, the thing is getting loyalty from those employees towards the organization. The person who has stayed longer with the company have more loyalty towards it and the retention policy ensures that this loyalty remains with the organization.

It is to be understood by the organizations that human resources are the key to the success of a company. In a bid to stay ahead in comparison to the competition the organizations must emphasize developing and implementing effective retention policies and keep on updating the same as per the requirement of the market.

Originally published at https://axpertjobs.in on March 1, 2020.