Human resource in today’s business world is the most important discipline as the driving force behind the success of any company or organization. Any company or organization however big it is or however be the technological progress it goes through must be run and administered by skilled human beings capable of performing different tasks. Without proper employee support no organization could come to the position they are now. Employees and their performance make all the difference in making a company achieve any success or reputation. Our inquiry in regard to why employee retention is important in HR practice must be viewed corresponding to this huge importance of employees who serve as the crucial human capital in the business organizations. Here we would categorically explain why employee retention is important in HR practice.
Major change in crucial positions can make the moral of an organization down
In many companies across the business organizations or in many public organizations a particular person in many cases becomes synonymous with the brand image and reputation of the company and in public view the absence of that person is perceived with a vacant feeling of absence that can translate into a dip in brand reputation or sales figure. Similar scenario can be experienced within the company also. A great personality in a particular position is viewed with respect and irreplaceable image of perfection and suddenly with the news of his switching job to some other company can make the moral of the employees and close colleagues down and that can translate into an operational or overall failure within the company. The outcome that follows after the quitting of an employee from a crucial position alone explains why employee retention is important in HR practice.
Sudden departure of competent employees can translate into financial downturn
If in the sudden gush of a particular crisis several competent employees leave the company for various reasons it can fast translate into operational failure and that in turn can make the company suffer huge financial loss that would be really hard to recover in the near future. Such situation can propel doom for the company in the short or long run.
Quitting of crucial employees can stall all undergoing projects
Some of the crucial employees actually plan for the research and development projects in a company and become ultimately responsible for executing them through the cooperation of others, but if they quit the job suddenly their sudden absence can result into a standstill into those research and development projects or in some cases alter the performance of the project and its outcome. Certainly this huge loss that the company is liable to suffer for the departure of the responsible employees for certain research and development projects well explains why employee retention is important in HR practice.
Quitting employees can create example for others to follow them
In many cases the sudden quitting of job for a better offer by a crucial employee can create an example for others to be inspired to follow their road and find better offer and this can in the long or short run can take away many employees from the company and can create a big human capital crunch.
Why employee retention is important in HR practice is only exemplified here in relation to the most prominent areas that a company is liable to suffer with the departure of the employees from the company.