Part - I

Retention of key employees is critical to the long-term health and success of any organization. It is a known fact that retaining your best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff, effective succession planning and deeply imbedded organizational knowledge and learning.

Employee retention matters as organizational issues such as training time and investment; lost knowledge; insecure employees and a costly candidate search are involved. Hence failing to retain a key employee is a costly proposition for an organization. Various estimates suggest that losing a middle manager in most organizations costs up to five times of his salary.

The BPOs in India face an enormous challenge in reducing attrition rate, and this being a nascent industry, needs to draw parallels, examples from other industry practices as well as develop innovative Employee Relation Initiatives as highlighted below. These has been classified into three groups: -

1. The Corporate level

2. Managerial/supervisory level

3. Employee Recognition Initiatives

Here this article attempts to highlight the strategies for the corporate level.

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* Contributed by -
Rajat Joshi,
MBA (Mktg & Fin), SCMHRD Pune,
Currently, heading HR Division of A. M. Todd Company.