Learning objectives
To identify the importance of employee retention for the organisation.
To define and identify ways to manage employee retention.
To explain how job satisfaction can affect organisational commitment and employee retention.
To identify strategies for employee retention, including remuneration and benefits, work environment, training and career development opportunities as well as inpatriation and repatriation.
Learning outcomes
After reading this chapter, students will be able to:
identify the benefits of retention for the employees and for the organisation
understand the role of job satisfaction and organisational commitment on employee retention
identify the key strategies that enhance employee retention.
Introduction
Organisations are increasingly adopting HR practices, with two main benefits: increased organisational effectiveness and the fulfilment of employees’ needs. Organisations are operating in an increasingly competitive environment due to global competition, cost leadership strategies, employee turnover and global skills shortages. These pressures have made the recruitment and retention of talented employees a top priority for all organisations, particularly those who are operating internationally. To survive in the long term and achieve competitive advantage in the global economy, the retention of valuable employees is a critical strategy for HR managers and organisational leaders (Reiche, 2007). Senior executive selection and retention are becoming even more important because these executives are responsible for the overall direction and scope of business activities, set organisational goals and shape its strategy and culture. Some executives have a clear vision and articulate it throughout the organisation, including at board of directors, top management and senior executive levels.