Hi, I believe the main thing (other than of course a "reasonable" pay packet) - is the employees pride at what he/she is doing. If every employee truly believes that he is creating something really valuable and more importantly feels a great sense of ownership - he is very likely to continue in his position. For example, in the software industry - any software engineer or sales executive is very likely to be happy actually working on a software product - rather than say - on providing a service. Providing a product has a very tangible & more importantly a long standing effect. This is bound to create a sense of pride for the employee - especially if his suggestions to improve the product are listened to & more importantly if they were to be implemented! That gives a real kick to the employee. The main issue that most IT companies are facing is because they dont have any major differentiators. Because of this %u2013 they face a problem at both ends %u2013 attracting new customers and retaining performing employees. I believe having very strong differentiators is the key to both attracting new customers as well as retaining employees. To take an example %u2013 some leading IT companies talk about %u201Ccorporate governance%u201D . Often the employees at the lowest rungs do not understand how this benefits them. They are more interested in how the company helps them grow professionally and how they can help the company grow. Unless someone explains to them clearly WHY they are doing WHAT they are doing %u2013 they are very likely to leave at the earliest opportunity. To sum up, a company can fight attrition by first having very clear differentiators, communicating clearly to each employee these differentiators, evoking pride in its employees (from these differentiators), aggressively listening to employees%u2019 suggestions and concerns.
