An employee retention program involves steps starting from identifying the major contributors in the organisation, and designing schemes to involve them with the organisation to ensure that they do not leave. The success of these programs is measured by simple metrics like retention ratio, and turnover.
The advantages of high employee retention are as follows:
A lot of investment is needed to train an employee and to make him productive. If such an employee leaves the organisation, they lose the money invested and also an employee who could have contributed significantly to the organisation.
If a person employed in a critical role leaves, then it disturbs the functioning of the organisation. Also, to replace such an employee, involves huge costs.