Abstract:
Retention is the process of physically keeping employee members in an organization as it is one
of the key fundamentals that are necessary for organizational success. In a globalized
environment, retention and engagement of high prospective employees are a huge challenge to
organizations especially in times of high turnover rates. In many cases, even engaged employees
are sometimes dissatisfied with the outcomes of organizational performance which may lead them
to look elsewhere. Due to these reasons, this theoretical paper investigates motivational factors
that influence employee retention and examines their impacts on both organizations and
employees. This paper argues the motivational factors that are crucial in influencing employee
retention are financial rewards, job characteristics, career development, recognition, management
and work-life balance. Thus, organizations should formulate appropriate retention strategies in a
holistic manner to reduce turnover rates, and these require a commitment from employers, but it
will be well worth the investment in the long term
