Modern business organizations have identified the importance of employee retention policy to get the maximum success in the global platform. Meanwhile, the situation was not the same in the past. Earlier, organizations operating in the global business sector put great emphasis on attracting crucial talent for organizational benefits (Donovan, Dwight and Schneider, 2013, p. 483). Identifying the value of efficient workforce, organizations had put more interest in developing a well-designed recruitment and selection process to get the best talent resources suitable for organizational performance efficiency. On the other hand, there is evidence to show that in the past organizations did not work out any specific plan for retaining the valuable human resources. Therefore, recognizing the challenges associated with human resources management, a clear discussion has been developed to show how in the past organizations only preferred to design effective hiring policy without concerning about employee retention (Nankervis et al., 2014, p. 288).
Considering the approaches of the human resources management a few decades ago, organizations had used to believe that hiring the best talent could do the job (Burks et al., 2015, p. 823). Hence, the HRM of the organizations did not bother to invest much time on specific employee retention plan. Currently, after recognizing the importance of employee retention to retain the quality and efficient workforce, modern organizations and its HRM teams have developed effective performance management system and compensation plans. In the past, lack of effective employee retention policy had led to the loss of human resources. In order to manage the workplace diversity and employee performance, most of the organizations concentrated on effective hiring policy in the previous time. But, after the significant modification of HRM efficiency, the modern corporate firms have recognized the importance of both the recruitment and employee retention plan to achieve organizational goals and objectives.
References
Burks, S., Cowgill, B., Hoffman, M. and Housman, M. (2015). The Value of Hiring through Employee Referrals. The Quarterly Journal of Economics, 130(2), pp.805-839.
Donovan, J., Dwight, S. and Schneider, D. (2013). The Impact of Applicant Faking on Selection Measures, Hiring Decisions, and Employee Performance. J Bus Psychol, 29(3), pp.479-493.
Nankervis, A., Miyamoto, Y., Taylor, R. and Milton-Smith, J. (2014). Managing Services. Cambridge: Cambridge University Press, pp.288.
