Retaining Top Performing Employees Research Paper

Retaining Top Performing Employees - Research Paper Example According to Sandhiya and Kumar (1778), â€Å"There are many factors which show the importance of the employee retention. They may be the turnover cost which includes hundreds of thousands to the company's expenses. In fact, it is difficult to calculate the turnover cost which includes hiring costs, training costs and productivity loss†. Other than material investment, loss of company’s intellect and information is also another major drawback that an organization has to sustain to when an employee leaves. Sandhiya and Kumar further assert that â€Å"the relationships between the customers and clients are developed in such a way that encourages continued sponsorship and services of the business. When an employee leaves the organization suddenly, the relationships that employee built for the company are suffered and also could lead to loss of contact with potential customer†. Hence, overall business performance is affected due to lack of connecting link between cli ent and organization and also potential risks of losing business may emerge as client may have their loyalty attached to a particular employee instead of an organization. In addition to that, employee turnover has a ripple effect; it has a tendency of affecting current workforce. Withdrawal of one employee can affect motivation level of other team members and in some cases may signal anxiety in employees. Employee retention rates have their contributions to employer’s goodwill which helps in attracting new talent and becoming a preferred employer.