Significance of Retention Strategies in Business Services Sector

Abstract

One of the chief concerns of Business Service Sector is retaining efficient employees. The recruiting team in an organization spends time on identifying candidates and training them, to equip them to be made suitable for the job. If the recruited staff quits without repaying for what he has gained, it results in a setback for the organization. Higher rates of employee’s turnover, which occurs due to increasing competition in labor market, forces the organization to start its work right from the scratch of hiring, training and fostering new entrants. In addition to the financial loss the organization faces due to employee turnover, there is fading employee morale, transfer of knowledge to competitors, and negative impact on the reputation of the organization. The organizations’ have therefore to adopt suitable retention strategies to retain efficient employees. Responses were elicited from employers working in various organizations in Business service sector to explore the need to adopt retention strategies, identify the retention strategies implemented by them, and to discover the importance given to retention strategies. Suitable statistical techniques such as SPSS 20.0 and AMOS have been implemented to derive at reliable conclusion.