In the highly competitive world, retention has a great role to play in the company’s success. Retaining the employees who are capable of making significant contributions to the company’s wealth and the retention of the customers who can add to the profitability by seeking the company products and services are equally important. The need to acquire expertise in a domain to fight against the competition induces the companies to draw the employees from the rival companies by providing them a better deal than what they are enjoying now. Survival on one side for procuring and retaining the employees and a strong fight to gain an impressive size of the market depends on the retention policies adopted bye the company.

Employee retention

Employee attrition is a huge cause of worry for the business. The cost of attrition includes the cost incurred in the delay in the production of the output, the recruitment of the new employee, training and developmental costs, the time taken by the employee to break-even, etc. To reduce the impact on the company revenue, the company has to take measures to reduce job hopping of the employees from the company.

Employee engagement is a prerequisite to hold the employee within the entity. It is the bond the employees have with the company which provides them with the drive to attain the overall objectives. The creation of a linkage with the entity requires the management to identify the needs of the employees and bring about the modifications in the policies and the company culture to incorporate them.

Pay package is a major cause for employee attrition. The remuneration must keep pace with the rates in the market to prevent job hopping. Increase in the salary figures is more profitable than trying to get new recruits and make them to break even. Recognition and incentive tools can aid in detaining the employee. Applauding the tasks performed induces the employee to display better outcome, thus having a positive impact on the company output. Providing a platform to the employee for attaining his dreams through career growth and personal development makes him positive in his outlook. A positive outlook form the employee exudes a positive air in the environment, resulting in ace performance.

The retention modes for employees must be properly analysed and the company has to adopt a system based on the employee requirements.

Customer retention

With a huge number of business entities springing up and the fight to gain business being on the rise, retention of the existing customer is crucial. The company has to develop great listening skills while dealing with the customer. The customer requirements must be carefully analysed and understood before initiating the task. The company has to possess a thorough knowledge on the working of the business and must have knowledge on the finger tips whenever the customer enquires about the company. The marketing and the sales personnel must be aware of the customer requirements in advance and take advantage of this knowledge for acquiring further revenue. The success of the company lies in its ability to deliver the product on time without compromising on the quality.

Opening up of the economy expects the company to be always on the alert to the trends in the business world to take advantage of the customer and the employee for its survival and success.