Three Challenging Factors Of Employee Retention
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Why Retention Is So Challenging?

The challenge of retaining valuable employees is determined by three factors:


Demographic change is one of the reasons why retention is challenging.

Some examples for the important of demographics in retention: The work force is aging constantly and especially for the prime management, it is becoming a major issue. In addition, economic growth outdistances the work force if growth in labor force is behind the growth in economy. And the supply of highly skilled technicians and professionals is being overwhelmed by the demand, especially in computer related fields.

Shortage of skilled workers and rising competition to recruit and retain valuable people are the main reasons concerning this issue.

Cultural Expectations

Cultural expectations differ in each country. While employees in some countries are more prone to dedicate themselves to one company for their entire life, some employees in other countries are more like to change jobs. Those who stay for longer years consider their colleagues and company as family and are more committed to each other. Employees in other countries where a fast-moving and continual change exist are in search of best combination of work, compensation, future opportunities. Companies’ retention goals may be more or less challenging depending on the cultural factors.

Upheavals in the World of Work

Economic and cultural changes can cause upheavals in the world work. Some examples to this matter are:

  • A rise in demand for free agency, self-employed people with short-term contracts.
  • Decreasing in number of employer/employee contract. Because of business downturns over the years, some companies de-emphasize the importance of work force and this concluded in downfall of employer paternalism and employee loyalty.
  • Rising of intense need of technical skilled people. Economic development through advanced technological improvements and the emergence of Internet economy increased the demand for advanced technical skilled people.
  • Increase in usage of Internet recruiting. Internet has made it possible for everybody to look and apply for a job they desired. Especially new generations are more aware of the job opportunities thanks to the internet.
  • Demands for better work-life balance. Many employees quit their jobs, as they are fed up with obligations such as weekend meetings, vacations interrupted by job e-mails or long daily commutes, to find jobs nearer to home or to make work-life balance more reasonable.

All these factors made it obvious that companies cannot expect from their employees to stay with them forever. Nevertheless, firms need to show their importance of valuable employees, especially in high-tech markets, actively and creatively so that they decide to stay longer years.

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