INTRODUCTION of retention

Intense competition and globalization of businesses has put mounting pressure on organizations
to deliver more and better than before. Organizations need to develop and deploy human
resources that can articulate the vision of the organization and make teams with the synergy to
perform at much higher levels.
Human resource management (HRM) is a strategic and coherent approach to the management of
an organization's most valued assets i.e. the people working there, who individually and
collectively, contribute to the achievement of the objectives of the business. Human Resource
management is evolving rapidly. The terms "human resource management" and "human
resources" (HR) have largely replaced the term "personnel management" as a description of the
processes involved in managing people in the organizations. Human resource management is a
business practice as well as an academic theory that addresses the practical and theoretical
techniques of managing the workforce of an organization.
The Human Resources Management (HRM) function includes a variety of activities, and the
most important among them is to decide what are the staffing needs of the organization and the
ways to fill these needs i.e. whether to hire employees or use independent contractors to hire
employees to fill these needs, to recruit and train the best employees, to ensure that they are high
performers, to deal with performance issues, and to ensure the organizations personnel and
management practices conform to various regulations. Managing the organizations approach to
employee records, employee compensation and benefits, and personnel policies are also the
included activities. The small businesses whether for-profit or nonprofit ones usually have to
carry out these activities themselves because they cannot yet afford part- or full-time help.
However, it must be ensured by them that the employees are aware of the personnel policies,
which confirm to current regulations.
The HRM function and HRD profession have undergone tremendous changes over the past 2030 years. Many years ago, large organizations looked to the "Personnel Department," mostly to
manage the paperwork around hiring and paying people. More recently, organizations consider
the "HR Department" as playing a major role in staffing, training, and helping to manage people
so that people and the organization are performing at maximum capability in a highly fulfilling
manner
Human resource builds and drives the knowledge assets of an organization, the value of which
has been established to be many times more than the tangibles. In the present scenario, it is
becoming important for organizations to focus on nding, developing, and retaining talented
employees. This paper aims to enhance understanding of the phenomenon of high employee
turnover in the insurance industry and factors that lead to job satisfaction of employees.
Researchers have also made an attempt to integrate Maslows Needs Hierarchy to the underlying

inuencers for the sales force of insurance companies to join or leave the organization. The
ndings may be helpful for the companies to improve retention levels.

Definition of retention
The condition of retaining (keeping) something. "You may be able to memorize facts in the
short-term, but how well is your retention of those facts over the long-term?" "Successful
companies need to foster a good working environment so that employee retention remains at a
high level." See also retention clause, retention period, and retention ratio.
Meaning of retention
Employee retention refers to the ability of an organization to retain its employees. Employee
retention refers to the various policies and practices which let the employees stick to an
organization for a longer period of time. Employees retention can be represented by a simple
statistic (For example, a retention rate of 80% usually indicates that an organization kept 80% of
its employees in a given period). However, many employee consider retention as relating to the
efforts by which employers attempt to retain employees in their workforce. In this sense,
retention becomes the strategies setting, the goal of employers is usually decrease employee
turnover, thereby decreasing training costs, recruitment cost and loss of talent and organization
knowledge. By implementing lessons learned from key organizational behavior concept
employees can improve retention rates and decrease the associated costs of high turnover.
Employee retention is process in which the employees are encourage to remain with the
organization for the maximum period of time or until the completion of the project. Employee
retention is beneficial for the organization as well as for the employee.

Introduction of Employee Retention

Employee retention refers to the ability of an organization to retain its employees. Employee
retention can be represented by a simple statistic (for example, a retention rate of 80% usually
indicates that an organization kept 80% of its employees in a given period). However, many consider
employee retention as relating to the efforts by which employers attempt to retain employees in their
workforce. In this sense, retention becomes the strategies rather than the outcome.
A distinction should be drawn between low performing employees and top performers, and efforts to
retain employees should be targeted at valuable, contributing employees. Employee turnover is a
symptom of a deeper issue that has not been resolved. These deeper issues may include low
employee morale, absence of a clear career path, lack of recognition, poor employee-manager
relationships or many other issues . A lack of satisfaction and commitment to the organization can
also cause an employee to withdraw and begin looking for other opportunities. Pay does not always
play as large a role in inducing turnover as is typically believed.[1]

In a business setting, the goal of employers is usually to decrease employee turnover, thereby
decreasing training costs, recruitment costs and loss of talent and organisational knowledge. By
implementing lessons learned from key organizational behavior concepts employers can improve
retention rates and decrease the associated costs of high turnover. However, this isn't always the
case. Employers can seek "positive turnover" whereby they aim to maintain only those employees
who they consider to be high performers.

Manaing of employee retention

employee retention has several benefits, including preserving the company culture and keeping personnel
costs low. In a 2008 study, the Society for Human Resource Management estimated that the minimum
cost to a company in recruiting, training and lost production for employee turnover is 50 percent of the
salary for a given position. To avoid having to incur these extra costs, your company needs to use the top
techniques to manage employee retention. Do you experience a high turnover within your business?

Are you looking for ways to help retain your current staff in order to save the time and money it takes
to train new people? It is no secret that one of the most important facets of the hospitality and
foodservice industry is hiring and keeping the best staff.
Hospitality jobs, which include hotel jobs, resort jobs, restaurant jobs and other foodservice jobs,
require constant positive interaction between individual employees and guests in order to establish a
connection that will keep the business thriving.
Hcareers interviewed people at all levels of the hospitality industry to see what kept employees from
leaving their jobs.
Each of those interviewed said that maintaining a busy workplace, a certain comfort level,
advancement potential, innovative feedback and addressing of employee's needs, and a close-knit
group were essential in the decision to not look elsewhere for work.

Advantage of employee retention

Employees are an organizations intellectual asset that is responsiblefor the day-to-day

business operation

Employee retention is as financial gain fororgnizations.

Acquiring Talent

Training and development

Skilled Labor Force.

Impact on customer service.