Employee Retention – Definition, Importance, Benefits and Strategies

February 04, 2022

Employee Retention- Definition  

Employee Retention is defined as the ability of an organization to retain valuable employees in the company while averting employee turnover.

What makes a company ideal? It’s services and the massive army of employees contributing to the company’s growth. Employee attrition or turnover can impact this growth. Therefore, companies try to adopt policies to retain employees.

It is not uncommon to lose good team members, in fact it is considered as a healthy transition for the company and its people. But there are certain downsides that come with it which is answered with retention. Retaining employees helps to bypass revenue losses while keeping the employees engaged and satisfied. Therefore, it is vital for the overall growth of the organization.


Employee retention is important for several reasons. To highlight a few:

  • Retaining invaluable employees only contribute to a large scale to the success of any organization.
  • Every measure taken towards reducing employee turnover is a step towards building an irreplaceable pool of assets.
  • The preservation of retention rate maintains good work culture and the success curve of the business.
  • Losing experienced employees leave a mark on all the peers, which eventually disturbs the company’s productivity.

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As companies compete to get the best talent onboard, retaining the current employees can prove 90% more beneficial. Here are a few benefits that come with retention.

1. Efficient Recruitment and Training

Several factors are involved in recruitment and training practices such as ads for new opening, trainers and training material and more. Retention leads to a reduces cost that the company invests in recruiting and training new talent.

2. Productivity

Employee turnover or attrition directly impacts the productivity of the company. On the contrary, places with higher retention have more engaged employees and, in turn, increased productivity.

3. Better Employee Engagement

Employee engagement is evidently improved with better retention practices. It boosts employee morale and, thus, increase quality of work.

4. Improved Customer Engagement

New recruits with less experience might not be a good fit for the company. Retaining long-term employees who understand the culture and practices of the company helps build a stronger relationship with the customers.

5. Stronger work culture

Work culture is built over a period of time and is the collective efforts of all the employees. Employees who understand this culture prove to be assets to the company, strengthening the values and ethics of the organization.


Ages ago, the companies had the upper hand. More recently, strategies to offer more comfortable, flexible and productive work environments are being initiated to increase employee retention.

These ‘People Strategies’ offer better HR policies and perk to the employees. Here are a few strategies that immediately impact the employee retention rates for any organization:

1. Orientation of the New Recruits

Every new recruit needs a well-devised orientation. Along with warmly welcoming the new employee to the work-family, an orientation is meant to introduce him to the work ethics, value and vision of the company.

2. Peer Relationships

Overall environment impacts the productivity and peer-relationship in the office. As a company, addressing and helping out with any issues the employees might face will help them understand will help the employee retain their position.

3. Appraisals

For every effort and recognizable performance of the employees at the workplace, an appraisal must be done by the company. It is of importance for both, the employee and employer, in order to work on loopholes and discuss further future targets.

4. Employee Wellness

Mental or physical health impacts absence resignations. Employees appreciate when their company focus on and contribute to their holistic well-being. The company should conduct regular checkups and camps.

5. Rewards and Recognitions

Who doesn’t like rewards and recognitions? It is the company’s way to tell the employee that they are being noticed and appreciated for their efforts. Make sure to thank and reward the ones who walked an extra mile for the betterment of the company.


Companies need to review and upgrade their employee retention strategies in order to reduce the rate of employee turnover or attrition. This will help the company gain better opportunities. Write to us at connect@kernculture.com to know how we can help.

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