A Study on the Employee Retention Strategies Followed by Startup Companies

As far as organizations are concerned human resources are its important livelihood. Though organizations are driven by technology, yet they require human resources to operate these technologies. With the overall development and technological up-gradation, there is an increase in the level of competition in the market. As the competition increases, business organizations are expanded hence there is the availability of lots and lots of opportunities in the hands of the human resources. The biggest challenge that the organization faces today is managing and retaining the employees. In this fast-paced working environment and labor-intensive market retaining the qualified employees is the biggest struggle that companies faces, especially the startups. Usually startup companies try to bring in new products/services/ideas in the market, thus it creates a lot of challenges for the employers such as uncertainty about the future, managing competition, government regulations and policies, irregular earning or less profit at the early stages, high salaries offered to employees by the competitor firm, etc. All these become a hurdle to the employer for retaining the employees in a startup company. Thus it is very important for organizations to follow effective motivational strategies in order to retain their employees. Keeping this into account, this paper studies the various factors affecting employee retention and also suggest a few tactics for startup companies to motivate and retain their employees.