Journal of International Business and Management Studies

Employee Attrition — the rate at which employees leave an organization — is a major challenge faced by organizations globally. It projects an organization's inability to retain employees. Employees are the assets of any organization. In today's world, the customer is the central focus of all firms. Consequently, catering to customer needs has become the top priority for many organizations. However, firms fail to realize that employees, who are indispensable to the survival and success of the business, are internal customers of the firms. Can an organization satisfy the needs of its customers properly when they fail to take care of the needs of the internal customers? The answer is no. Organizations cannot afford to lose their key performers. High attrition of employees would certainly have an impact on the productivity and sustainability of an organization. The incidence of high employee attrition rates in organizations across different industries in India has been the subject of a substantial number of studies. However, not much research seems to have been focused on identifying the causes of employee attrition in Non-Banking Finance Companies (NBFCs), more so NBFCs engaged in the gold financing business. NBFCs play a major role in the enhancement of the country’s economy by providing financial aid to customers normally not catered to by banks. This paper attempts to throw light on employee attrition and Non-Banking Finance Companies in general. The deficiency of research in this area of employee attrition in gold financing NBFCs needs to be addressed by a study on the real causes of employee attrition in these organizations and also by reviewing how effective are the employee retention strategies followed by them.