Literature Review On Employee Attrition

3951 Words16 Pages
Chapter – I Introduction and Research Design Introduction “Retention of right employee in the right job at the right time with a right pay and good working environment leads to organisation’s growth and success” Employee retention refers to policies and practices the companies adapt to prevent main employees from leaving their jobs. How to preserve valuable employees is one of the toughest tasks that are making the companies to strive hard to survive in the competitive marketplace. Usually replacement costs of an employee are 2.5 times the salary of an individual employee. The costs connected with the employee turnover may include loss of customers, business and ruptured morale. In addition, there are the immeasurable costs in terms of…show more content…
Only a few studies have been done in India but virtually speaking none of the study was conducted in the manufacturing companies in Tamil Nadu. Hence, this study is an attempt to know the employees’ retention strategies followed by the manufacturing companies with special reference to selected manufacturing companies in…show more content…
It’s not only the cost incurred by a company that highlighted the need of retaining employees but also the need to retain talented employees from getting poached. The process of employee retention will benefit an organization in the following ways: 1. The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of rupees to a company's expenses. While it is difficult to fully calculate the cost of turnover (including hiring costs, training costs and productivity loss), industry experts often quote 25% of the average employee salary as a conservative estimate. 2. Loss of Company Knowledge: When an employee leaves, he takes with him valuable knowledge about the company, customers, current projects and past history (sometimes to competitors). Often much time and money has been spent on the employee in expectation of a future return. When the employee leaves, the investment on him is not realized. 3. Break of Customer Service: Customers and clients do business with accompany in part because of the people. Relationships are developed that encourage continued sponsorship of the business. When an employee leaves, the relationships that he built for the company are severed leading to potential customer

More about Literature Review On Employee Attrition

Open Document