Background to the problem Human resources are of great importance for any organization. The success of every business depends upon the effectiveness of its workforce. Companies use different ways to improve the effectiveness of its employees. For example, training programs, employee empowerment, motivation, rewards and recognitions etc. Despite of investing so much in the employees, many companies face high employee turnover rates. A high rate of employee turnover can cost a company in the long run, more than they might realize. Employee turnover occurs when employees leave their jobs voluntarily and must be replaced. (Price 1977, p.15) also defines turnover as “The ratio of the employees of an organisation who left in a particular period of time with the average number of employees in that organisation during the same period of time”. Michael Armstrong (2006) defines Employee Attrition as a normal flow of people out of an organization through retirement, career or job change,...
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