Effective Leadership Retaining Qualified Employees

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Around $200 billion are spent by the US businesses on the process of recruiting and replacing their staff. According to the Harvard Business Review, not paying attention to the retention of employees puts the company in a position to lose people with talents they need, often inadvertently retaining people with outdated or ordinary skills. It is a strategic issue for every business organization to retain a valuable and talented employee. Just throwing money cannot be the solution and the employees cannot be retained just by giving them money. ? Rather Finnegan found that people cared more about their job situation than the money itself.[1]The people who enter into the business firm as the employees, of course, aims at getting a financial settlement but this is the gateway. When they actually start working there they expect some other things from the organization which is the source of their satisfaction. For example, they wish to feel that they are an important part of the company and they are treated there like that. The managers should bring the team spirit among the people and motivate them for their work. If they are not on the right track then it is again the role of a manager to guide them to go on proper track. Marks Ernsberger in his article Leadership development leads to employee retention, opines that very few leadership gives the top priority to the effective implementation of employee retention. Actually, this should be the top priority of any leaders. And this is the source of the problem. Retention can be a salary and career advancement issue. it also can be closely linked to an organization’s leadership development efforts.[2]Knowledge Management is a very important concept and it is the need of the company. Managing and cherishing the talents of the company is very important for the fast growth of the organization.