Successfull retention tools of American Businesses Term Paper

Successfull retention tools of American Businesses - Term Paper Example It is also costly to the company. Labor turnover and attrition is costly not only in terms of resources but also in precious time of training new employees. It will take time until a new employee will be able to yield the same output like the one that has left and it is also is an opportunity lost to the company. It may be tempting to disregard a company’s retention program because rewards incur cost. But it has to be kept whatever the economic circumstances because in the final analysis, the cost of rewards is more than justified considering the opportunity cost of losing an organization’s best talent (Frasch, 201). It is worth noting that at the aftermath of the recent financial crisis, the survey conducted by Nashville, Tennessee based OI Partners found that an alarming 64 percent of companies â€Å"are concerned that they may lose managers when the job market improves† and that includes a 48 % likelihood of losing their executives (Frash, 2011). Such, a revisit on the successful tools of retaining best talents in an organization would be necessary to prevent the likelihood of an impending labor turnover. Given with the changing economic landscape brought by the recent crisis, it is becoming difficult for companies to financially reward their employees because of financial constraints. Many are even cutting wages as a cost cutting measure to weather the recent economic turmoil (O’Hara, 2011). On the other hand, about 65 percent of employees are beginning to be sensitive to pay increase as a motivation for them to stay with their current employer as reflected in the survey from Marlborough, Mass.-based benefits and compensation consultant Workscape (O’Hara, 2011). This economic difficulty however should not prevent companies to strive to keep their best employees. Nor should they disregard because of the costs associated