International Journal of Business Management & Research (IJBMR) ISSN(P): 2249-6920; ISSN(E): 2249-8036 Vol. 4, Issue 1, Feb 2014, 83-88 © TJPRC Pvt. Ltd. STUDY OF EMPLOYEE RETENTION AMIT BIJON DUTTA 1 & SNEHA BANERJEE 2 1 Senior Manager, Mecgale Pneumatics Pvt. Ltd., Nagpur, Maharashtra, India 2 Management Trainee, Mecgale Pneumatics Pvt. Ltd., Nagpur, Maharashtra, India ABSTRACT Employee Retention refers to the ability of the organisation to retain its employees and it's emerging as a big challenge to organisations. Organisation culture, pay and remuneration, flexibility and job satisfaction highly influence the retention rate for any company. The paper provides the prevalent and potential reasons for an employee to leave his job and also talks extensively about the problems faced by an organisation associated with the high employee turnover. The paper elaborates on the retention factors such as training, skill recognition, career development, etc and helps in understanding the importance of effective communication and employee motivation for the cause of employee retention. KEYWORDS: Employee Retention, Factors, Strategies, Employee Turnover INTRODUCTION Phoning or revisiting a client can be frustratingly awkward when you discover that the concerned person you were dealing with is he longer working with your client and client’s company. All the time, and sometimes money spent developing a relationship and sharing business strategies with a very important person you trusted went out of the window. It are often recalled how you felt about the organization, represented by your client. Their reputation becomes undependable, you lose faith in their business practices and you probably lose interest in operating with them. If you feel so about other corporations, then your clients will feel the same about yours and hence comes the concept of employee retention. Employee retention problems are emerging as the most critical workforce management challenges of the immediate future. Reaches have shown that in future, triumphant organizations will be those which adapt their organizational behaviour to the realities of the current work environment where longevity and success depend upon innovation, creativity and flexibility. Retention is a complex concept and there's no single formula for keeping employees with an organization. Retention has been viewed as “an obligation to continue to do business or exchange with a particular company on an ongoing basis” (Zineldin, 2000). A a lot of ample and current description for the concept of retention is “customer liking, identification, commitment, trust, readiness to recommend, and repurchase intentions, with the first four being emotional-cognitive retention constructs, and the last two being behavioural intentions” (Stauss et al., 2001). Studies have also indicated that retention is driven by quite a few key factors, which need to be managed congruently: communiqué, organizational culture, pay and remuneration, strategy, flexible work schedule and career development systems (Logan, 2000). Increasing numbers of organization mergers and acquisitions have left employees feeling displeased with the companies that they work and haunted by concerns of overall job security. As a result, strategic career moves are taken by employees to guarantee and satisfy their need for security. On the other hand, the employers need to work to keep their