Employee retention strategies: effectiveness and scope

Abstract

Employee retention is a current organizational challenge. In most skilled positions, labor demand exceeds supply, generating a phenomenon called ‘the headhunting war’. Applicant’s skills, capabilities and ‘know-how’ had become important assets. This refers not only to specific technical positions but also to whole organizations looking for competitive advantages. The main objective of the qualitative research presented here was finding out the effectiveness and scope of employee retention strategies in productive organizations of the greater Valle del Aburrá in Antioquia, Colombia. Between 2008 and 2009, 89 organizations were examined. The results of the study suggest that there are not formal employee retention strategies. This casts a doubt on the effectiveness and scope of the implementation of those strategies. Additionally, it shows a new reality in the job market: constant and unpredictable mobility.