A retention strategy is a mixture of plans and strategies that organizations develop to increase employee retention, reduce employee turnover, prevent attrition, and encourage employee engagement.
Retention strategies are crucial for firms because retaining top talent is positively related to achieving company goals. Continuous change in personnel can negatively impact team productivity and demotivate them. Also, hiring new employees or replacing them can be costly and time-consuming.
Though there will be some turnover in every company, a perfect retention strategy can help minimize voluntary turnover and save an organization time, money, and the hassle of continually hiring new people.