DECA Human Resources Management Complete Practice Test 2026

Employee retention primarily refers to an organization's ability to keep its employees over time. This concept emphasizes the importance of maintaining a stable workforce and minimizing turnover, which can be costly and disruptive to an organization. Retention strategies often involve creating a positive work environment, offering competitive compensation and benefits, fostering employee engagement, and implementing career development opportunities. By focusing on retention, organizations can build a more experienced and cohesive team, ultimately leading to improved productivity and morale.

The other options touch on relevant aspects of human resources but do not capture the specific focus of retention. Hiring new employees is a critical activity but is more about recruitment than retention. Performance management strategies help ensure employees meet their goals but do not directly address the longevity of employment. Training and development programs contribute to employee satisfaction and growth, which can influence retention, but they are just one component of a broader retention strategy.