EMPLOYEE ENGAGEMENT AND RETENTION IN THE NEW ECONOMY

Abstract

Employee engagement and employee retention have emerged as critical determinants of organizational success in the new economy characterized by globalization, technological advancement, and dynamic workforce expectations. Employee engagement refers to the level of commitment, involvement, and enthusiasm employees demonstrate toward their work and organizational goals, while employee retention focuses on an organization’s ability to retain talented employees over time. This paper examines the evolution of employee engagement practices in India from the pre-independence period to the contemporary era and highlights the changing nature of workforce management. The study identifies key factors influencing employee engagement, including appreciation and recognition, freedom to work, scope for advancement, job security, participative decision-making, health and welfare practices, safety measures, monetary benefits, interpersonal relationships, and flexible working conditions. It further explores the factors influencing employee retention, namely care, connect, coach, contribute, communication, and relationship management. The paper emphasizes the strong interrelationship between employee engagement and retention, suggesting that highly engaged employees are more likely to remain committed to their organizations. The study concludes that organizations must adopt comprehensive engagement and retention strategies to enhance employee satisfaction, productivity, loyalty, and long-term organizational performance in an increasingly competitive business environment.