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The Importance of Employee Retention

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The Importance of Employee Retention The sustainability and success of any organization depends upon the retention of key employees and according to Panoch, (2001) valuable employees are increasingly becoming more difficult to find. In today's highly competitive environment employee retention should be top priority for organizations especially since many consider human talent to be the ‘greatest assets' to a company. Cutler (2001) stated that one of the most important demands on management today in any organization is keeping the most vital and dynamic human resources motivated and dedicated. Managing and retaining valuable talent requires a balance between the employee aspirations and the strategic and financial needs of the business. Implementing strategies that encourage employees to remain in an organization can be termed as employee retention. Zineldin, (2000) has defined retention as “an obligation to continue to do business or exchange with a particular company on an ongoing basis”. * Hiring is not an easy process.
According to the University of California, Riverside, in order to strategically increase efficiency and effectiveness in hiring and retention and to maintain consistency and compliance in the recruitment and selection process there are a number of tedious steps that must be followed. These processes can be very time consuming and costly for an organization. Step 1: Identify Vacancy and Evaluate Need Step 2: Develop Position Description Step 3: Develop Recruitment Plan Step 4: Select Search Committee Step 5: Post Position and Implement Recruitment Plan Step 6: Review Applicants and Develop Short List Step 7: Conduct Interviews Step 8: Select Hire Step 9: Finalize Recruitment * An organization invests time and money in grooming an individual and make him ready to work and understand the corporate culture. Surveys have

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