Performance management and rewards Essay Example | Topics and Well Written Essays - 2000 words

Performance management and rewards - Essay Example extremely essential to retain the human resources of the organization so as to enhance its productivity and brand value in the market among other rival players. This essay is divided into four phrases mainly highlighting the importance of retention as well as the ways to increase the rate of retention of the employees in the organization. Along with this, the retention strategy is also devised in order to reduce the ratio of attrition of the Hertfordshire-based SME so as to amplify its reputation and efficiency in the market among others. It is the process by which, employees are retained within the organization for longer period of time so as to enhance its image and productivity. Due to which, retention is recognised as the most important tactic of talent management process. So, it is offered higher attention by the organizational entrepreneurs in this competitive age (Cannon & McGee, 2011). Retention of an employee within an organization is essential as it acts as its driving force. This is because it helps in introduction of varied types of inventive products and services thereby satisfying the changing requirements of the customers. As a result of which, it enhances the reliability and trust of the customers towards the brand thereby amplifying its position and dominance in the market among others (Finnegan, 2010, pp. 556-561). Not only this, employee retention also gears the goodwill of the organization to a significant extent thereby amplifying its cost of profit margin and net income. In addition, employee re tention also helps in regaining the efficiency and effectiveness of the organization, long term success and profitability and improvement of turnovers. Thus it might be stated that retention of employees might enhance customer satisfaction, improve total sales cost and amplify returns of the Hertfordshire-based SME. The term retention seems easy, but it’s extremely hard. This is mainly due to various reasons presented. Lack of appreciation is one of