Employee Retention Strategies in IT Industry in India

Project Report on Employee Retention Strategies in Information Technology IT Industry in India

Case Studies on Human Resource Management Topic-Employee Retention Strategies in IT Industry in India

MBA Synopsis on HR Topic -- Employee Retention Strategies in IT Industry in India

Dissertation Abstract

 Employee Turnover is a major challenge faced by the companies globally. This study has focused on IT sector. Employees are the assets of any organization and organization can not afford losing its key performers. Organizations are striving to retain their talents by implementing effective retention strategies. High Employee Turnover would subsequently have an impact on productivity and sustainability of the organization. This study is an attempt to understand the impact of Retention Strategies on Employee Turnover in IT sector in India. Bangalore, being the IT hub of India, was chosen as the location of the study. Other variables such as Welfare Benefits, Personal Satisfaction and Organizational Culture, which are said to be associated with the Employee Turnover, were also investigated as a part of this study. Intention to stay is the proxy variable which explains the employee turnover in this study. Previous research conducted by various scholars has shown that employee's intention to stay/leave determines the actual turnover.

Employee turnover is a common phenomenon which many organizations are facing today. Organizations invest immensely in recruiting and developing their employees. Hence employee turnover is a potential loss for any firm. HR managers try to prevent the employee turnover by implementing effective retention strategies. Employee turnover is a common issue in Indian IT sector, though the trend has been reduced for the interim due to the recession. Still the issue becomes perpetual once the economy becomes stable. People leave the organization due to various reasons. The experience of job related stress (job stress), the range factors that lead to job related stress (stressors), lack of commitment in the organization; and job dissatisfaction make employees to quit (Firth, Mellor, Moore, Loquet (2007). Employee can be dissatisfied with the organization due to many reasons. Personal dissatisfaction itself is a major reason for an employee to leave the firm. This dissatisfaction can arise from various factors such as compensation, job security, job autonomy, relationship with the supervisor and other colleagues etc.

Turnover intentions can arise from organizational factors as well. Organizational culture itself can be  motivating or de-motivating to many employees. Some organizational cultures can be inspiring to their employees and provides an inductive environment to their employees. Organization with strong  communication systems enjoy lower turnover of staff (Labov, 1997). Voluntary quits represents an exodus of human capital investment for organizations. The subsequent replacement process entails manifold costs to the organizations. Replaced employee has to be inducted, trained and developed, which incur costs. Till one employee is substituted, production is also going to suffer which adds more costs to the firm. In order to minimize the costs associated with the turnover, firms are implementing various strategies. Given that there is increase in direct and indirect costs of labour turnover, therefore, management is frequently exhorted to identify the reasons why people leave organizations so that appropriate action is to be taken by the management.

Providing competitive salaries and other benefits, empowerment, providing stock options, flexible work hours are few of such strategies adopted by the firms to retain their staff. But how significant are these strategies to the employees? The purpose of this study was to study the impact of the retention strategies on employee turnover.

Source:SCMS Journal of Indian Management; Jul-Sep2012, Vol. 9 Issue 3, p79-87

 

 

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