The retention of employees is the issue of the HRM Function and the line management. The company wants to keep most of its employees and specifically, it needs to protect its key employees in the organization.
The retention is usually provided through base salaries, special benefits for key employees and some companies have special retention programs for key employees. The organization spends a lot of money and it can be in huge troubles.
The company has to be very careful in the design phase of the retention program for the key employees. The retention program can be an excellent tool today, but it can bring a huge headache tomorrow or a day after.
The companies tend to include the most important employees from each unit in the organization to the retention program, but the selection procedure has to be more detailed.
The top management has to decide about the eligibility for the retention program, which is fully compliant with the business strategy for several following years.
When the line management is eligible to make proposals and confirmation of the employees in the retention program, the managers will be focused more on the smooth daily operation of the units and not on the employees allocated to the strategic tasks of the organization.
The managers believe the employees working on the strategic initiatives are motivated by the task itself and they tend to protect their key employees, who make the operation smooth.
The company can be in a danger of over-retention of employees, which are needed now, but they can be useless in the future.
