Retention a term when an organization has the capability to retain valuable employees from leaving or go work for a competitor. From a business perspective, it is not meant to keep all employees from leaving, but just the valuable ones.
For example, entry level employees such as a secretary can be easily replaced unless the individual has the intention and aptitude to move to a higher level within the organization. The average stay for an entry level position is usually less than two years. When such position becomes vacant then it can be easily filled without much difficulty.
It is important to keep in mind that businesses should avoid investing in staff members who contribute very little to productivity and profits.
However, a company needs to make greater efforts to retain members in important positions such as top executives, who have ample experiences as well the middle managers who have knowledge to connect with others to get things accomplished.
In addition human resources personnel that oversee recruitment, employee relations and compensation.
Also important to bear in mind that with ethnic – multicultural staff on the rise, some new immigrants might be inclined to stay at one company for long periods even though they may or may not contribute to the company’s bottom line.
Retention of valuable employees is vital to any company’s profitability and productivity in today’s ever changing business environment.