Tuesday, January 16, 2018

Talent crunch, the shortage of skilled employees and their retention - major issue faced by the organizations today!

This modern era has witnessed a significant and rapid growth in the service sector. The cross-border business and technological advancement created plenty of employment opportunities in developing nations such as India. India has become the first choice of foreign investment in different sectors including service sector but the fact may not be denied that India is facing the talent crunch, the shortage of skilled employees and their retention is the major issue faced by the organizations today. The failure in retaining competent employees may result in heavy losses as business organizations spend considerable time, effort and money to train employees to develop them as the talented and valuable asset to an organization.
The employee retention is a process in which the employees are motivated and encouraged to stay with an organization for a long period of time. Employee retention is beneficial for the organization as well as the employee. Human resource is such an asset, which cannot be imitated by the competitors and considered as the competitive advantage particularly in the service industry. 
Employee retention involves set of policies and practices companies use to prevent valuable employees from leaving their jobs. Effective ER is a systematic effort by employers to and fosters an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs. India is one of the leading developing nations; as economies develop, there is more choice of employment, organizations will find it increasingly challenging to attract and retain talent and potential. Factors such as gender, qualification, experience, and tenure also impact employee retention (ER) and Team Effectiveness.
Evey company needs to realize that securing and retaining skilled employees play an important role for any organization because employees’ knowledge and skills are central to companies’ ability to be economically competitive”. 
An article from the journal 'Metamorphosis' explicates the need of retaining valuable employees to increase the organizational and individual effectiveness. It brings forth the practical implication that employee retention strategies can help to improve and develop team effectiveness, which has paramount importance for service sector.

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