Retention Management

• It is an organization's ability to keep talented

employees who will help their company remain
competitive in a world of rapid change
Retention • Why Retention Matters
• The importance of intellectual capital
• Retention and customer satisfaction
• The cost of employee turnover
• All quits are not bad
Types of Turnover: Involuntary –
Organizational Initiated
Termination Downsizing

• Retrenchment
Poor performance
• Closure
• Redundancy due to
Disciplinary action restructuring, merger
or acquisition
What is Retention?
Why it Matters?
 Types of Turnover: Voluntary
Try to Prevent: High Do Not Prevent: No Attempt to
Value Low Value Prevent: Regardless
• High • Low of Value
performance performance • Retirement
• High potential • Low potential • Back to school
• Strong KSAs • Weak KSAs • Dual career
• High training • Low training • New career
investment investment • Health
• Difficult to find • Easy to find • Take a break
replacement replacement
Causes & Process of Voluntary Turnover
Desirability of leaving
• Low job satisfaction
• Shocks to employees
• Personal reasons

Ease of Leaving Intention to

• General KSAs Quit
quit
• Low cost of leaving

Alternatives
Favourable Labour market
(Availability of new job offers)