Final answer:
The best way for a firm to manage a knowledge-intensive workforce is to balance attraction, selection, and retention strategies, while also investing in employee development and fostering a meritocracy.
Step-by-step explanation:
The best way for a firm to manage its knowledge intensive workforce is to balance efforts in the attraction, selection, and retention of top talent. While retaining knowledge workers is important, it is equally necessary to attract the brightest employees by showcasing a culture of growth and learning.
However, simply paying higher salaries than rivals isn't a sustainable strategy. To retain top talent, firms must invest in continuous training and development, and offer a work environment that appeals to high-skilled labor. Fostering a meritocracy and supporting career progression through education and apprenticeships are also ways to improve human capital and keep employees engaged.