Abstract:
Presently the competition in business world is escalating every day. The organizations are opting every possible way to climb the next step before its competitors not only to survive but to gain competitive advantage to become business leader. Good Human Resource is a major one and retaining the human resource is even more critical and essential. Organizations try to retain their old employees to maximize its profit as the Core purpose of every organization is to make profit and that can be achieved through retaining productive employees but the competition to retain key employee is intense. Top-level executives and HR department spend large amount resources such as time, effort and money trying to figure out how to keep their talented employees and develop citizenship.
These ideas challenge some conventional wisdom that dissatisfied people leave and fulfillment of psychological contract (types of promises made and communicated by small business organizations to attract and retain their employees), makes them stay and makes them loyal. People often leave for reasons unrelated to their jobs. In many cases, unexpected events or shocks are the cause. Employees also often stay because of attachment and the sense of satisfaction they get from their workplace. The ability to attract and retain reliable and competent employees has become a key component in developing an effective and sustainable competitive advantage. The purpose of this study is to describe some new dimensions and implications for managing high turnover and retaining potential employees. The present study investigates the impact of the Employee retention on the organizational profitability.
