Retention - is the ability to keep talented employees in the organization.
Successful human capital management requires an efficient selection process. It also requires effective retention strategies and practices. Organizations spend time and effort identifying and recruiting high-caliber applicants. But without the ability to develop and inspire employees, an organization runs the risk of losing talented individuals; potentially negatively impacting employee engagement.
Organizations aspire to keep high performers and to exit the low performers. Developing strategies to retain high performers and reduce voluntary turnover is important because such turnover is costly. Beyond the time, effort, and monetary investment it takes to fill an open position, there are other costs involved in the recruitment process including lost productivity of other employees and other considerations. Turnover may also compromise an organization's ability to sustain a diverse workforce. Without effective employee retention, the long-term health and success of an organization can suffer.