that by undertaking these research initiatives they would be able to
develop employee retention initiatives. Unfortunately by 1991 the
recession hit and Digital was forced to abandon its ‘no layoffs’
policy and the employee retention initiatives were abandoned.
Learning points
This case shows how a company which has been failing to manage
its internal and recruitment markets embarks on a course of action
designed to ultimately improve employee retention.
Broad marketing and strategic issues:
●managing environmental changes in a dynamic industry
●developing and implementing HR policy.
Relationship marketing issues:
●measuring the financial and strategic costs of employee turnover
●managing internal markets
●linkages between employee satisfaction and turnover and customer sat-
isfaction and turnover
●understanding the requirements of different employee segments in the
company.
This case provides an opportunity to discuss possible strategies
available to the company in terms of employee retention. It also
provokes discussion on the advantages that new employees bring
with them when they join the company. These advantages are not
quantified in this case but should nevertheless be considered.
334 Relationship Marketing