Employee Retention

Meaning & Definition

Employee retention is the ability of a business to retain employees on an ongoing basis by creating a positive work experience through providing competitive pay, opportunities for career advancement, and implementing strong employee engagement practices. Good employee retention initiatives help to decrease turnover and maintain a stable and productive workforce.

Importance of Employee Retention

• Lowers recruiting and training expenses from the impact of high levels of employee turnover.
• Retains business knowledge and experience.
• Increases the stability of teams and productivity over time.
• Lifts the image of the employer and enhances the reputation of the workplace.
• Increases employee engagement and satisfaction with their jobs.

Legal Compliance 

While there are no specific legal requirements that are directly connected with retention of employees, retention strategies still need to abide by all applicable laws regarding labour, fair employment practices and HR policies of the organisation.