A STUDY ON EMPLOYEE RETENTION STRATEGIES OF MULTI NATIONAL COMPANIES IN CHENNAI CITY

Employee retention involves taking measures to encourage employees to remain in the
organization for the maximum period of time. It is the process of encouragement of employees to
remain with the organization for the maximum period of time or until the completion of the project.
Employee retention is beneficial for the organization as well as the employee. Effective employee
retention is a systematic effort by employers to create and foster an environment that encourages
current employees to remain employed, by having policies and practices in place that address their
diverse needs. However, many consider employee retention as relating to the efforts by which
employers attempt to retain employees in their workforce. In this sense, retention becomes the
strategies rather than the outcome. A distinction should be drawn between the low performing
employees and the top performers, the efforts to retain employees should be targeted at valuable,
contributing employees.
Retention is a voluntary move by an organization to create an environment which engages
employees for a long term. The most important purpose of retention is to look for ways to prevent
the capable workers from quitting the organization as this could have negative effect on
productivity and profitability. Retention as the effort by an employer to keep desirable workers in
order to meet business objectives. It was perceived retention as initiatives which the management
takes to prevent employees from leaving the organization. The best practices of retention are
employees being rewarded for doing their jobs effectively, ensuring that the relationship between
employees and managers are harmonious and maintaining a working atmosphere which is safe
and healthy. The main purpose of retention is primarily for organizational gains. The Workforce
Planning for Wisconsin State Government emphasis on managers systematic effort to create
organizational systems and an environment which is conducive for addressing the diverse needs
of their current employees in order to sustain their continued employment through harmonious
work practices.