INTRODUCTION

Rationale of the Study Employee Retention is defined as a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs. The costs associated with turnover may include lost customers, business and damaged morale. In addition, there are the hard costs of time spent in screening, verifying credentials, references, interviewing, hiring and training the new employee just to get back to where you started. ( et Les McKeon) !owadays, businesses had recogni"ed employee retention and transfer of knowledge was a critical issue to all sectors to meet the anticipated skills needs for the business. The level of losses was a vital management issue that affects productivity, profitability, and product and service #uality. The result of finding and training new employees could associate high cost just to ac#uire the specific skills and knowledge of the people who walk away. Trans$%sia &hipping 'ine Inc. was a uni#uely positioned company based in (ebu. There main strategy was to build an e)tensive long$standing relationship with their customers to produce a sustainable growth. The company was now very much conscious on there turnover rate for this affects the operation of the business. The purpose of this study was to e)amine and to analy"e the employee retention policies of Trans$%sia &hipping Inc. on how this gives effect to employee performance in relation to company*s productivity, profitability and the #uality of service offered to customers and the employees* long term commitment to the company.

Definition of Terms: Management - the person or persons controlling and directing the affairs of a business, institution, etc.+ The store is under new management. Employee - a person working for another person or a business firm for pay. Employer - a person or business that employs one or more people, especially for wages or salary. Employee retention $ to the ability of an organi"ation to retain its employees. Employee turno er $ is the rate at which an employer loses employees. !oyalty- the state or #uality of being loyal, faithfulness to commitments or obligations. In"enti e - something that incites or tends to incite to action or greater effort, as a reward offered for increased productivity. #enefits - something that is advantageous or good, an advantage. Strategy - a careful plan or method for achieving a particular goal usually over a long period of time. + The skill of making or carrying out plans to achieve a goal. Team - a group of people or animals linked in a common purpose.

Theoreti"al $rame%or& $igure '( $a"tors that affe"t Employee Retention

+OR,IN- EN.IRONMENT $/CTORS !earning 0 +or&ing Climate Communi"ation Superior-Su1ordinate Relationship

EM)!O*EE RETENTION

EM)!O*EE MOTI./TION $/CTORS: Organi2ational Commitment S&ill Re"ognition 3o1 $le4i1ility

)/* 0 COST $/CTORS: Cost-effe"ti eness Compensation #enefits

OR-/NI5/TION )RO-R/M $/CTORS: Employee Sur ey Trainings Career De elopment Outsour"ing Employee Retention )rograms

These are the necessary factors in focusing employee retention policy on what factors to be considered in working environment+ learning - working climate, communication, superior$subordinate relationship, on what factors employees* should be motivated+ organi"ational commitment, skill recognition, and job fle)ibility, on how to manage pay and cost factors efficiently. 'astly, on how effectively organi"ation program factors affect the performance of employees work in order to be retained in the company.