“attracting good employees are as important as to retain

them” justify your statement.

“An organization’s strength is determined in large part by the quality of its talent.”

A successful organization needs consistency in all aspects, employees included. Having a high retention
rate means keeping staff members long-term, resulting in less time and resources required for training
new staff and having the loyalty needed to run a business.

According to Gallup:

 "The cost of replacing an individual employee can range from one-half to two times the employee's
annual salary -- and that's a conservative estimate.

 "So, a 100-person organization that provides an average salary of $50,000 could have turnover and
replacement costs of approximately $660,000 to $2.6 million per year."

“Talented and skilled people are always in demand. The more skill and talent they possess, the
more likely they can leave you for another employer.”

The organization and management should understand the difference between a valuable employee and
an employee who does not contribute much to the organization. Sincere efforts must be made to
encourage the employees so that they stay happy in the current organization and do not look for a change.

There are some reasons for retaining good employee:

 An organization invests time and money in grooming an individual and make him ready to work
and understand the corporate culture.

 An employee, who resigns from the present organization, may join the competitor.

 It is essential for the organization to retain the valuable employees showing potential.

 The employees working for a longer period are more familiar with the company’s policies,
guidelines and thus they adjust better.

 Hiring is not an easy process.

 It has been observed that individuals staying in an organization for a longer time are more loyal
towards the management and the organization.

 Loss of Company Knowledge − When an employee leaves, he takes with him valuable knowledge
about the company, customers, current projects, and history.
 Interruption of Customer Service − Customers and clients do business with a company in part
because of the people. Relationships are developed that encourage continued sponsorship of
the business.
 Regaining efficiency − If an employee resigns, then a good amount of me is lost in hiring a new
employee and then training him. It is expensive and leads to a temporary loss in efficiency.