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Influence of Retention Policies on Employee Efficiency and Organization Productivity
Abstract
In the continuously developing economy, organizations should be able to anticipate the technological innovations and compete with other organizations worldwide. This need makes an organization's ability to evolve through its employees' learning and continuous development. In this context employee retention has become a most critical issue for all the organizations as a result of the shortage of skilled labor, economic growth and employee turnover. Employee retention refers to the various policies and practices which let the employees stick to an organization for a longer period of time. The employees are the real assets of any organization, so the management should exert some effort to determine the non-monetary interests and preferences of its key employees, and then attempt to meet these preferences in action. This study is an attempt to identify the various retention policies practiced in different public and private organisations, and evaluate the effectiveness of these policies on employees' efficiency and its influence on the overall productivity of an organisation.
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