The most important asset of any business is its employees. Given this fact, normally, every business should have a solid plan to make sure that its employees are satisfied professionally and are loyal to the company. Unfortunately, this is usually not the case. Many companies believe that if they have an excellent product or service that generates high incomes and employees should be content. Generally, employers try to guarantee that its employees will not leave by offering them different benefits, trainings and great compensation. But is that enough to ensure loyalty among staff members? According to different statistics: each year the average company loses 20-50% of its employee base, replacing a lost employee costs 150% of that person’s annual salary. These numbers highlight how important the retention and engagement of the employees are for the profitability of a company.
JEL Classification M31, M21
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