Retaining staff is always challenging as different personalities need different rewards (tangible and or intangible). Lot of times companies choose short term strategies by having pay raises which may contribute in retaining, but others may just need a gesture of appreciation, recognition or career development path to be motivated and passionate about their work. Such rewards always leave a long lasting impact on the employees and does not cost much except for having appropriate HR policies in place.
Some specific examples of companies and their attempts to retention in India are mentioned in the article "Golden rules to retain staff".
Please check the link for complete information.
http://www.rediff.com/money/2007/apr/11spec.htm
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