Is employee retention important for a company? I feel that it is the most important human resource factor for any company. Even if you are running a startup with five employees, you need to ensure that these five employees stick with you for a long time. Why do employees think of changing their employment option? They may not be satisfied with their bosses. In most cases, bosses adopt a rude attitude towards their employees which becomes the strongest reason for them to quit. It is a duty of the human resource department to retain their employees. A good practice is to hire a team responsible for retention.
The best way to retain employees is to counsel them. What is their reason for leaving the company? Are they getting a better package? If they are then it is an alarming sign for you. How important is the employee for the organization? Does he occupy a senior position? Has he been performing well? If the employee has been performing well and he occupies a good position in the organization, you should not lose him. If a senior employee leaves the organization, it is hard to find a replacement who can adjust without time delays.
On the other hand, if the employee has not been performing well, you do not have to make efforts to retain him. Instead, you can highlight his performance level and point it out to him. Employee retention is an important part of the human resource process.