Factors associated with employee retention

Abstract

Retention is a process to keep the employees working in their organization as one of the most important factors for organizational success and growth. In today’s global scenario, retention and employee engagement also has a crucial role for any organization in facing the challenges of tomorrow when there is high employee turnover. Most of the time, even highly engaged workers sometimes become unsatisfied with the company’s performance, which causes them to search for better opportunities at other companies. Owing to such reasons, this theoretical article investigates the motivational factors that affect employee retention and examines their impacts on both employees and organizations. Motivational aspects that influence employee retention are primarily financial rewards, career development, job characteristics, management support, recognition, work-life balance and leadership style. Hence every company must look at formulating appropriate retention policies to reduce the attrition rate and improve the employee commitment which will be advantages for the organization in the long run.