ISSN: 2319-4421
ABSTRACT
The hyper competitive business environment is
experiencing a fierce competition for skilled employees.
Increase in productivity and quality rests on implementing
different ways and means to retain key performers in the
organization. The problem is highly persisted in IT
industry. The IT industry facing the critical challenges of
recruitment and retention of best talent. There are many
factors which influence retention and it is required to
understand employee expectations, that can made them to
stay long back and perform well. Global explosion in
business creates more opportunities and people are highly
mobile not restricting to particular job. The objective of
this paper is to find out the factors which influence
employee retention and reasons for employee leaving the
organization. Based on analytical study researcher
suggest some recommendations for employee retention in
IT sector with special reference to study of selected IT
companies in Hyderabad, Andhra Pradesh.
Keywords
Global explosion, Recruitment, Employee Retention, IT
Sector.
INTRODUCTION
The IT sector is playing prime role in generating revenue
as well as in providing direct employment to around 2.3
million people in India. According to the industry body
NASSCOM, Indian IT sector is estimated to provide direct
employment to around 10 million by 2020. In FY 2010 IT
sector has contributed around 5.6% to Indias GDP.
Indias human capital advantage has been one of the prime
reasons for the rapid growth of the IT sector. Post
recession, the IT sector has seen tremendous growth and
today the market has become extremely competitive.
Talent attraction and talent retention has become a major
challenge for the employers.
www.irjcjournals.org
12
5.
6.
7.
LITERATURE REVIEW
Ganesh, (1997) identified two types of factors that
encourage an employee to leave the present job are push
factors and pull factors. Push factors pertain to the
dissatisfaction
causes
are
work
environment,
compensation, low employee benefits, inconsistent HR
policies, incorrect work assignments, lack of challenge,
lack of career development schemes, fear of being found
out and level of competence. Pull factors that lure an
employee are higher compensation package and greater
technical challenge.
Persis Mathias (2001) states that it is hard work engaging
Indian software talent by the Software industry, which is
spawning ground for I.T professionals. Retention of
employees is a major task before HR professional
managers. AMR (attract, motivate, retain) is a big concern
IT industry.
In developed and emerging countries, Attraction and
retention of employees is of the most desired practice and
competence of the high performance organizations. Search
for best talent will be very difficult in coming years.
Retention can be possible by many ways but one of the
most used in organizations is paying more than they are
earning. Lawler III (2005) stated that in these days
organizations are competing for talent rather than counting
employees loyalty. They are focusing on attracting, hiring
and retaining the required talented persons. For this
purpose organizations must utilize those practices which
are in favor of both employees and employers leading
them towards higher performance levels. It is important to
recruit strategy driven and shrewd employees because it
creates sense of alignment between employee and
organizational values and goals.
Gentry et al., (2007) argued that employees feel connected
with the organization if they get support from their
supervisors which lead them to return the favor to the
supervisors and organization through retention.
B.K. Punia and Priyanka sharma (2008) highlighted that in
current economic scenario the variables like induction
programme, scientific job analysis and fair & skill based
distribution of work assignments are the key factors in
influencing the employees retention intentions in industrial
organizations in general and the IT sector in particular
study highlighted the influence of age on employees
position as significant factors in employee retention. The
ISSN: 2319-4421
RESEARCH METHODOLOGY
Objectives of the study:
www.irjcjournals.org
13
Age
21-30
54
30-40
25
40 - Above
70
Female
30
Software Engineers
40
Gender
Job Title
35
Technical Leads
25
RELIABILITY OF SCALES
The reliability for each of the scales was assessed by
computing the coefficient of alpha (a). All coefficient of
alpha (a) were found to be greater than 0.5 and therefore,
were considered reliable and accepted (Nunnally.J, 1978)
.Table 2 gives a summarized view of a value for each of
the scale.
Table 2: Cronbachs Alpha Values for Reliability
Analysis
Parameters
Cronbachs Alpha
Reasons for employee leaving
0.715
Influence of job and
0.783
organizational factors
FACTOR ANALYSIS
Reasons for Employee Leaving
Table 3: KMO and Factor Loading
Parameters
KMO
14
21
Male
ISSN: 2319-4421
Factor
loading
Reasons for
.651
63.025
employee leaving
The total variance shown in table.3 accounted for by all of
the 6 components explains nearly 63 percent of the
variability in the original 15 variables. Varimax rotation
Poor
interperson
al
relationship
s
Inadequate
flexible
work
practices
Lack of
work life
balance
Dysfunctio
nal work
culture
Poor
manageme
nt practices
High job
demands
Lack of
challenging
job
environme
nt
Stress at
work place
Ineffective
leadership
Insufficient
rewards
.332
.363
.346
.177
.007
.408
.017
.068
.675
.349
.198
-.048
.054
.111
.789
.252
.050
.156
.141
.810
.067
.050
.061
-.045
.034
.155
-.030
.853
.108
.120
.719
.021
.088
.026
.212
.022
.289
.289
.232
.333
.338
.264
.694
.180
.409
.010
.195
.002
.669
.238
-.310
.013
.017
.091
.123
.115
.010
.490
.517
-.188
.083
.722
.041
.203
.177
-.025
.267
.088
.095
.402
.125
.607
.012
.246
.161
.543
.292
.038
.109
.036
.800
-.015
.061
.146
.002
.005
.833
.042
.045
.077
www.irjcjournals.org
INFLUENCE
OF
JOB
ORGANISATIONAL
FACTORS
RETENTION MANAGEMENT
AND
ON
ISSN: 2319-4421
FINDINGS
The major findings of the study are as follows:
The most important reasons for employee leaving from
organization are dissatisfaction with organizational
culture, compensation, motivation, development and
challenging work environment.
Employees stated that factors influencing employee
retention are
1. Career development opportunities.
2. Autonomy, environment of openness and trust,
fair & equitable treatment in work environment.
3. Effective utilization of employee skills and
abilities.
4. Management policies regarding reward and
recognition of employee achievements and
developmental aspects in organization.
www.irjcjournals.org
15
ISSN: 2319-4421
CONCLUSION
Hence it is observed that organizations should aim at
developing effective employee retention policies and
practices which increases employee commitment level,
loyalty and engagement. Employee commitment and
involvement have impact on employee productivity and
retention. Organizational culture and compensation have a
significant impact on employee retention. Organization
has aim to design integrated approach to employee
retention which includes best retention strategies like
conducive organizational culture, adequate competitive
pay package, non-monetary motivation and effective
employee development programs for attaining competitive
advantage in business environment.
REFERENCES
[1] Employee Retention: Tips and Tools for Employee
Retention (2010) viewed on16 June 2010
[2] Gentry, A. William., Kuhnert, W. Karl., Mondore, P.
Scott. (2007), The influence of supervisory-support
climate and unemployment rate on part-time employee
retention A multilevel analysis, Journal of Management
Development, Vol.26, No.10, pp. 1005-1022
[3] Lawler III E. Edward. (2005), Creating high
performance organizations, Asia Pacific Journal of
Human Resources, Vol.43, No.10. pp. 10-17.
[4] N Srivastava, vinay k. and shailesh Rastogi(2008)
Employee Retention: By way of management control
systems, ACM. Ubiquily, 9.16 pp.22-28..
[5] Punia, B.K. and priyanka sharma(2008), Employees
perspective on human resource procurement practices
as a retention tool in Indian IT sector, Vision the
journal of business perspective, Vol.12. pp 57-69
[6] Vos, D. Ans., & Meganck, A.(2009), What HR
managers do versus what employees value Exploring
both parties views on retention management from a
psychological contract perspective, Personnel Review,
Vol.38, No.1, pp. 45-60.
[7] http://www.thehindubusinessline.com
[8] http://www.valuenotes.com
[9] http://www.mckinsey.com/mgi/reports/pdfs/india/Soft
ware.pdf
www.irjcjournals.org
16