Modern organizations are operating in an unprecedented, highly competitive and turbulent business environment which is characterized by the globalization of business. Further, todays global workforce is more mobile than ever before. As a result we are witnessing a "war for talent" in the marketplace. It is becoming increasingly clear that employee attrition is a reality and organizations need to adopt a market driven approach in dealing with growing attrition. The article analyzes the importance of employee retention and talent management.

Captains of modern organizations are becoming increasingly aware that a critical source of competitive advantage often comes not from having the most ingenious product design or service, the best marketing strategy, state-of-the-art technology, or the most savvy financial management but from having appropriate systems for attracting and retaining human resources.

With the coming of the Information Age in the early 1980s, the degree to which organizations rely on their talent has increased dramatically and this trend is likely to continue. When the initial shift to a knowledge-based economy began, the economic expansion that resulted absorbed all the available talent. At this point, companies experienced a new phenomenon; they were no longer flooded with a slew of resumes. It was also at this time that organizations began drawing the line between simply needing more people, and needing more talented people.

According to the global management consulting firm McKinsey & Company, a 33% rise in the demand for talented employees is expected over the next 15 years with a corresponding 15% drop in supply. But what is this elusive creature called "talent"? McKinsey & Company consultants Michaels, Handfield Jones and Axelrod define "talent" as the "the sum of a person's abilitieshis or her intrinsic gifts, skills, knowledge, experience, intelligence, judgment, attitude, character and drive. It also includes his or her ability to learn and grow." The nature of talent, then, is such that, in order to realize its full potential, individuals must be continually inspired to do their best and groups must be properly aligned and motivated to deliver their top collective performance. Thus it is an organization's ability not only to recruit, but also to cultivate and retain, talent that will ultimately determine its longevity.

HRM Review Magazine, Modern Organizations, Business Environment, Globalization, Talent Management, Employee Retention, Marketing Strategy, Financial Management, Human Resources, Global Management, Corporate Leadership Council, Organization Culture.