A Study on Employee Attrition and Retention: Exploring the issues and Challenges

  • Resham Sundrani Asian Business School, Noida, India

Abstract

A key HR concern for businesses today is employee retention. There are signifi cant
fi nancial and intangible costs associated with losing loyal and high-performing employees.
Investments need to be made to fi nd, hire, and train their replacements. There could also
be a negative impact on the stakeholders they worked with regularly such as suppliers,
colleagues, and customers. Some companies are starting to look to predictive analytics
to increase their ability to mitigate the risk of employee attrition and increase retention.
Retention of productive employees is a major concern of HR professionals and business
executives. It is more effi cient to retain a quality employee than to recruit, train and orient
a replacement employee of the same quality. Employee retention is a critical issue as
companies compete for talent in a tight economy. The costs of employee turnover are
increasingly high — as much as 2.5 times an employee's salary depending on the role. And
there are other “soft costs”: lowered productivity, decreased engagement, training costs
and cultural impact. The objective of this paper is to review and analyze the fi ndings of
research papers that are published in the past by various authors to summarize the factors
that result in high attrition levels and the ways adopted by organizations for employee
retention.
Keywords: Intangible costs, stakeholders, employee attrition, retention, productive
employee, investments

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Published
2019-10-01
Section
Articles