Retaining Employees a Crucial Job for HR Professionals: A Case Study of XYZ Airlines
13 Pages Posted: 7 Jan 2010
Date Written: January 6, 2010
Manager HR XYZ Airlines, Deepak Kumar’s room one more resignation lying on the table. He was quite worried this resignation will add to already increased attrition rate. He was more worried about the after effects of this resignation as the news will spread like fire in a forest, which may lead to further increase in the number of resignations. Concern of Mr. Deepak is acceptable as he knows that in today’s new age economy, with its attendant paradigm shifts in relation to the human capital, in terms of its acquisition, utilization, development and retention, has placed a heavy demand on today's HR professional. With a dynamically changing and volatile demand-supply equation, especially against erratic attrition trends and cutthroat competition no longer restricted to local or regional boundaries, a need for strategizing and putting in place a robust mechanism for attracting and retaining top talent becomes vital for the organization's very survival and growth. Employee retention is critical to the long-term health and success of the business. Retaining best employees ensures customer satisfaction, product sales, satisfied coworkers and reporting staff, effective succession planning and deeply imbedded organizational knowledge and learning.
For the Last three consecutive years, this XYZ Airlines was experiencing above industry average employee turnover, so a formal internal committee had been established to address the problem. The President assigned the goal of reducing their turnover rate to a level that was ten percentage points below the industry average. Committee members had conducted an employee survey and were seeking expert advice for interpreting the survey results prior to taking corrective action.
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