Recession Effects on Employee Retention

An economic recession affects the ability of organizations to retain employees. The downturn in the economy causes employers to evaluate how they conduct business causing lay-offs and unemployment rates to rise during periods of recession. A retention strategy is as important as sales and customer service during an economic recession. The impact of decisions made during the recession and the imminent labor shortage will impact the ability of organizations to retain their high performing employees. The author details the areas organizations must consider in a retention strategy and develops a retention model for her employer that can be used to assist with reducing turnover as the economy and the labor force begins to change.