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A STUDY ON EMPLOYEE RETENTION STRATEGIES

Abstract:

Employee Retention is one of the key challenges faced by IT Organizations in India. It has been observedthat there is a great demand for skilled IT professionals within India and abroad, which has resulted in

technocrats leaving the Organization in search of greener pastures. The IT Organizations in todayscontext cannot afford to lose their critical workforce due to uncertainty of changing economy,increasing competition and scarcity of s killed workforce as this would in turn affect their bottomlines drastically. This created the need for designing effective retention strategies. A holistic approach isessential to understand the factors controlling employee turnover in Indian IT and Multinational

Companies by the HR Managers. The present study therefore not only aims at examining the reasons foremployees leaving the Organization, staying back factors, their attitude towards work, work relationshipsand their prioritised basic expectations from the Organization but also aims at finding out if thereis any significant difference in the response among IT professionals of Indian IT and MultinationalCompanies with respect to the above factors. Based on the analysis of responses of 30 IT professionals

carried out, it was found that there was no significant difference among these companies. However withrespect to certain demographic factors considered like total experience, position and sponsored

certification programs, it was found that there was significant difference between these companies. Theoutcome of the study is expected to help the HR Managers of these Organizations in minimizing theattrition rate by developing effective retention strategies specific to their Organization.

SCOPE OF STUDY:

The study on A Study on Employee Retention factors influencing IT professionals of Indian ITCompanies and Multinational Companies in India is limited to Bangalore City. The study can be

further carried out in other cities of India as well, where IT Companies are located. The retention studiescan be conducted in other sectors as well. Specific studies like Compensation as a retention tool, CareerPlanning and Development as retention tool, Work life Balance as retention tool etc. can be taken up forresearch to gain in -depth knowledge on the subject matter.

PRIMARY DATA:

The main Objective of the study is to examine the factors influencing the retention of IT professionals inIndian IT and Multinational Companies, as it forms the basis for designing employee retention strategiesmeant for controlling attrition rate in Indian IT Sector. For realizing the above objective, personal

and professional details of IT professionals of Indian IT and Multinational Companies were studied tounderstand whether significant differences existed in background of employees among these two

groups. A multilevel analysis of factors that led the employees of Indian IT and MultinationalCompanies to leave their previous Organization; the factors that were responsible for them to stay

back in the current Organization; their attitude towards work and work relationship and also their basic

expectations from the Organization they were associated with on priority basis were carried out to

identify the difference in response if any between these two groups, as it helps us to view retentionfactors from an holistic perspective. This is very important as it helps the HR Managers of these ITcompanies to design specific retention strategies to control employee attrition effectively.

SECONDARY DATA:

Earlier studies on employee turnover focused mainly on understanding causal mechanisms. Despite

several studies carried out on employee retention, the strategic human resource researchers are still

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investigating the causal mechanisms between HR practices and firms performance (Collins and Clark,2003; Hatch and Dyer, 2004) mostly related to voluntary turnover as a critical component (Shaw, Gupta

and Delery, 2005) as employee retention p lays a vital role in bridging the gap between the macrostrategies and micro behavior in Organizations. This is because it ensures stability and connects theexperiences of individuals in Organizations on a continuous basis to the critical measures of successfactors in the Organization. The decision of leaving the Organization is not easy for an individual

employee as well as significant energy is spent on finding new jobs, adjusting to new situations, giving upknown routines and interpersonal connection and is so stressful (Boswell, Boudreau and Tichy, 2005).Therefore if timely and proper measures are taken by the Organizations, some of the voluntary turnover inthe Organization can be prevented.

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