Sample Business Paper on Retention as a Key to Human Capital Cycle

Retention as a key to human capital cycle

Retention refers to the “effort by employers to retain current employees in their workforce” (Sinha & Somesh, 2013).  Retention is key and very important to human capital cycle as turnover can cause companies millions dollars a year (Burkholder, Edwards, & Sartain, 2003). Trained and experienced workers need to be retained as they are the cornerstone to the business success. Retention only occurs when there are good systems in the business that lead to productivity but also employee satisfaction. This is always done through policies and practices in the work place that cater for their needs and have a company culture in which they want to belong (Burkholder et al., 2003). Also, in-house training is important for retention as the already trained employers are promoted to position if they were to be vacant, this helps with human capital cycle as these employees have already imbibed the culture of the company, and they already know their duties well. As Burkholder et al., (2003) rightly points out “an externally hired manage takes three years to reach the same level of productivity-profit-as an internally promoted manager.”

The future of recruiting will mostly be dependent on the useful and insightful information that employers collect in the ever changing economy. Thus, the future of recruiting will be forward-looking with components such as: (1) Topline data (2) Current conditions (3) Future expectations being very important in recruiting trends (Burkholder et al., 2003).  Furthermore, forward-looking aspect of recruitment would put into considerations factors such as the bottlenecks that may affect recruitment and the perception of both employers and employees because the perception and expectations of people help shape the decisions they make. For instance, when people are optimistic about the future they spend more helping businesses thrive which in turn create more jobs leading to more recruiting (Burkholder et al., 2003).


Burkholder, N. C., P. J. Edwards, Sr., & Sartain, L. (2003). On Staffing: Advice and Perspectives

            from HR Leaders. Hoboken: John Wiley & Sons.

 Sinha, Deepti and Somesh, K. S. (2013). A study of employee retention in the pharmaceutical

sector in Dehradun city. International Journal of Education and Psychological Research,

            2(1), 30-39.