EXECUTIVE SUMMARY

This project is done on human resource management topic in the area of

““A study on employee retention practices and its effectiveness in

IT sector”. The most challenging job for any present manager is to retain

their employees. Employee retention involves taking measures to

encourage employees to remain in the organization for the maximum

period of time. Corporate is facing a lot of problem in employee retention

these days.

Hiring knowledgeable people for the job is essential for an employer.

Employee recruitment and retention are one of the major issues facing the

IT Sector. But retention is even more important than hiring. There is no

end of opportunities for talented person. There is ample number of choice

around employees. In olden days salary was all that matters, but today it’s

just one among the components. Some of the other elements are like

work environment, relationship, freedom to work etc.

Due to high level of attrition it is important to know whether the

employees are satisfied with their job and organization, if not the reason

for leaving. This project will specify the effectiveness of various retention

practices used retain the employees. The study also include various

trends of practice followed by the organizations and it’s effect on the

problem of attrition.

Retention is a top business priority for more than one third of the

organizations. More than one third of HR professionals in IT Sector views

retention as one of their pressing issues. It is not very often that the

management would be aware of the true reason as to why an employee

would be leaving their organization. To be successful in knowing the

reason, an effective exit interview procedure is very essential. This would

help the organization to an extent to get a clear picture of what is going

wrong.

1

Thus, this study is conducted to find out directly from the employees the

factor that does not motivate them to continue employment with their

organization. With help of a self developed questionnaire few factors are

taken into consideration for the study. With the help of the study, An

attempt is made to find out the effectiveness of the practices and how

practical is it to retain the employees.

CHAPTER 1

INTRODUCTION

2

CHAPTER: 1

INTRODUCTION

EMPLOYEE RETENTION

Employee retention refers to policies and practices companies use to

prevent valuable employees from leaving their jobs. How to retain

valuable employees is one of the biggest problem that plague companies

in the competitive marketplace. Not too long ago, companies accepted the

“revolving door policy” as part of doing business and were quick to fill a

vacant job with another eager candidate. Nowadays, businesses often find

that they spend considerable time, effort, and money to train an

employee only to have them develop into a valuable commodity and leave

the company for greener pastures. In order to create a successful

company, employers should consider as many options as possible when it

comes to retaining employees, while at the same time securing their trust

and loyalty so they have less of a desire to leave in the future.

3

Employee retention involves taking measures to encourage employees to

remain in the organization for the maximum period of time. Corporate is

facing alot of problem in employee retention these days. Hiring

knowledgeable people for the job is essential for an employer. But

retention is even more important than hiring. There is no dearth of

opportunities for talented person. There are many organizations which are

looking for such employees. If a person is not satisfied by the job he’s

doing, he may switch over to some other more suitable job. In today’s

environment it becomes very important for organizations to retain their

employees.

According to Get Les Mckeown’s employee retention is define as “

effective employee retention is a systematic effort by employers to create

and foster an environment that encourages current employees to remain

employed by having policies and practices in place that address their

divers needs. Also of concern are the costs of employee turnover

(including hiring costs. productivity loss). Replacement costs usually are

2.5 times the salary of the individual.

The costs associated with turnover may include lost customers, business

and damaged morale. In addition there are the hard costs of time spent in

screening, verifying credentials, references, interviewing, hiring, and

training the new employee just to get back to where you started.”Every

company should understand that people are their best commodity.

Without qualified people who are good at what they do, any company

would be in serious trouble. In the long run, the retention of existing

employees saves companies money. As Beverly Kaye and Sharon Jordan-

Evan stated in Training and Development: “Studies have found that the

cost of replacing lost talent is 70 to 200 percent of that employee’s annual

salary.

There are advertising and recruiting expenses, orientation and training of

the new employee, decreased productivity until the new employee is up to

speed, and loss of customers who were loyal to the departing employee.

4

Finding, recruiting, and training the best employees represents a major

investment. Once a company has captured talented people, the return-on-

investment requires closing the back door to prevent them from walking

out.” When an employee leaves a company for a direct competitor, there

is always a chance that they will take important business strategies and

secrets with them to be explained by the competition. This is yet another

reason why the retention of employees is so crucial to some businesses.

While this practice seems a bit unscrupulous, it skills happens quite

frequently. As Bill Leonard stated in HR Magazine: Because employers

know that the best qualified applicants will come directly from

competitors, recruiting and hiring employees away from mother of

inventive and sometimes controversial business practices. Recruiting and

hiring from your competitors is probably as old as business itself. But what

is new and a hot topic among employers is how to attract and retain

qualified candidates in a highly competitive labor market while also

preventing their own intellectual capital from winding up in the hands of

competitors.

One way for a company to prevent employees from giving valuable

information to competitors is to make it a policy to enforce strict and

confidentiality agreements amongst its employees. The existence of such

agreements could in fact deter a competitor from hiring a valuable employ

because they might not want to risk possible legal entanglements with the

other company. Of course, all this could possibly lead to animosity with

the employee who could feel that his or her options are being limited.

Many employees don’t always remember signing such a document, so a

copy of it should always be kept on file for the employee to refer to. This

area could prove to be a highly sensitive one between employer and

employee, so extreme caution is suggested in all instances.

Retention of Key employees is critical to the long term health and success

of any organization. It is a known fact that retaining your best employees

ensures customer satisfaction, increased product sales, satisfied

colleagues and reporting staff, effective succession planning and deeply

5

imbedded organizational knowledge and learning. Employee retention

matters as organizational issues such as training time and investment;

lost knowledge; insecure employees and a costly candidate search are

involved. Hence failing to retain a key employee is a costly proposition for

an organization. Various estimates suggest that losing a middle manager

in most organizations costs up to five times of his salary.

INTRODUCTION TO IT SECTOR

Information Technology (IT) industry in India is one of the fastest growing

industries. Indian IT industry has built up valuable brand equity for itself in

the global markets. IT industry in India comprises of software industry and

information technology enabled services (ITES), which also includes

business process outsourcing (BPO) industry. India is considered as a

pioneer in software development and a favourite destination for IT

enabled services.

The origin of IT industry in India can be traced to 1974, when the

mainframe manufacturer,

Burroughs, asked its India sales agent, Tata Consultancy Services (TCS), to

export programmers for installing system software for a U.S. client.The IT

industry was originated under unfavourable conditions. Local markets

were absent and government policy toward private enterprise was hostile.

The industry was begun by Bombay based conglomerates which entered

the business by supplying programmers to global IT firms located

overseas.

The Indian Information Technology industry accounts for a 5.19% of the

country's GDP and export earnings as of 2009, while providing

employment to a significant number of its tertiary workforce. More than

2.3 million people are employed in the sector either directly or indirectly,

making it one of the biggest job creators in India and a mainstay of the

national economy. In March 2009, annual revenues from outsourcing

operations in India amounted to US$50 billion and this is expected to

increase to US$225 billion by 2020. The most prominent IT hub is IT

6

capital Bangalore. The other emerging destinations

are Chennai, Hyderabad, Mumbai, Pune, NCR, Jaipur and Kolkata.

Technically proficient immigrants from India sought jobs in the western

world from the 1950s onwards as India's education system produced more

engineers than its industry could absorb. India's growing stature in the

information age enabled it to form close ties with both the United States

of America and the European Union. However, the recent global financial

crises have deeply impacted the Indian IT companies as well as global

companies. As a result hiring has dropped sharply and employees are

looking at different sectors like financial service, telecom or

manufacturing industries, which are growing phenomenally over the last

few years. Due to meltdown the IT industry's pace of growth has dropped

significantly many experts believe that it has lost it flair.

India's IT Services industry was born in Mumbai in 1967 with the

establishment of Tata Group in partnership with Burroughs. The first

software export zone SEEPZ was set up here way back in 1973, the old

avatar of the modern day IT Park. More than 80 percent of the country's

software exports happened out of SEEPZ, Mumbai in 80s. Each year India

produces roughly 500,000 engineers in the country, out of them only 25%

to 30% possessed both technical competency and English language skills,

although 12% of India's population can speak in English. India developed a

number of outsourcing companies specializing in customer support

via Internet or telephone connections. By 2009, India also has a total of

37,160,000 telephone lines in use, a total of 506,040,000 mobile

phone connections, a total of 81,000,000 Internet users comprising 7.0%

of the country's population, and 7,570,000 people in the country have

access to broadband Internet making it the 12th largest country in the

world in terms of broadband Internet users. Total fixed-

line and wireless subscribers reached 543.20 million as of November,

2009.

7

The Indian Government acquired the EVS EM computers from the Soviet

Union, which were used in large companies and research laboratories. In

1968 Tata Consultancy Services established in SEEPZ, Mumbai by the Tata

Group were the country's largest software producers during the 1960s. As

an outcome of the various policies of Jawaharlal Nehru (office: 15 August

1947 – 27 May 1964) the economically beleaguered country was able to

build a large scientific workforce, second in numbers only to that of the

United States of America and the Soviet Union. On 18 August 1951 the

minister of education Maulana Abul Kalam Azad, inaugurated the Indian

Institute of Technology at Kharagpur in West Bengal. Possibly modeled

after the Massachusetts Institute of Technology these institutions were

conceived by a 22 member committee of scholars and entrepreneurs

under the chairmanship of N. R. Sarkar.

Relaxed immigration laws in the United States of America (1965) attracted

a number of skilled Indian professionals aiming for research. By 1960 as

many as 10,000 Indians were estimated to have settled in the US. Kapur

(2006) By the 1980s a number of engineers from India was seeking

employment in other countries. In response, the Indian companies

realigned wages to retain their experienced staff. In the Encyclopedia of

India, Kamdar (2006) reports on the role of Indian immigrants (1980 -

early 1990s) in promoting technology-driven growth: The National

Informatics Centre was established in March 1975. The inception of The

Computer Maintenance Company (CMC) followed in October 1976.

Between 1977-1980 the country's Information Technology companies Tata

InfoTech, Patni Computer Systems and Wipro had become visible.

The 'microchip revolution' of the 1980s had convinced both Indira

Gandhi and her successor Rajiv Gandhi that electronics and

telecommunications were vital to India's growth and

development. MTNL underwent technological improvements. Between

(1987-1986), the Indian government embarked upon the creation of three

wide-area computer networking schemes: INDONET (intended to serve the

8

IBM mainframes in India), NICNET (the network for India's National

Informatics Centre), and the academic research oriented Education and

Research Network (ERNET).

In 1991 the Department of Electronics broke this impasse, creating a

corporation called Software Technology Parks of India (STPI) that, being

owned by the government, could provide VSAT communications without

breaching its monopoly. STPI set up software technology parks in different

cities, each of which provided satellite links to be used by firms; the local

link was a wireless radio link. In 1993 the government began to allow

individual companies their own dedicated links, which allowed work done

in India to be transmitted abroad directly. Indian firms soon convinced

their American customers that a satellite link was as reliable as a team of

programmers working in the clients’ office.

The Indian economy underwent economic reforms in 1991, leading to a

new era of globalization and international economic integration. Economic

growth of over 6% annually was seen between1993-2002. The economic

reforms were driven in part by significant the internet usage in the

country. The new administration under Atal Bihari Vajpayee which placed

the development of Information Technology among its top five priorities

formed the Indian National Task Force on Information Technology and

Software Development. India is now one of the biggest IT capitals in the

modern world. The economic effect of the technologically inclined services

sector in India accounting for 40% of the country's GDP and 30% of export

earnings as of 2006, while employing only 25% of its workforce is

summarized by Sharma (2006).

The share of IT (mainly software) in total exports increased from 1 percent

in 1990 to 18 percent in 2001. IT-enabled services such as back office

operations, remote maintenance, accounting, public call centers, medical

transcription, insurance claims, and other bulk processing are rapidly

9

expanding. Indian companies such as TCS, Wipro, and Infosys may yet

become household names around the world.

Today, Bangalore is known as the Silicon Valley of India and contributes

33% of Indian IT Exports. India's second and third largest software

companies are head-quartered in Bangalore, as are many of the global

SEI-CMM Level 5 Companies. And Mumbai too has its share of IT

companies that are India's first and largest, like TCS and well established

like Reliance, Patni, LnT InfoTech, i-Flex, WNS, Shine, Naukri, Jobspert etc

are head-quartered in Mumbai. And these IT and dot com companies are

ruling the roost of Mumbai's relatively high octane industry of Information

Technology.Such is the growth in investment and outsourcing; it was

revealed that Cap Gemini will soon have more staff in India than it does in

its home market of France with 21,000 personnel in India. On 25 June

2002 India and the European Union agreed to bilateral cooperation in the

field of science and technology. A joint EU-India group of scholars was

formed on 23 November 2001 to further promote joint research and

development. India holds observer status at CERN while a joint India EU

Software Education and Development Center is due at Bangalore.

Top seven IT Hubs in India

*Table 1.1

Ranking City / Region Description

1 Bangalore

Popularly known as the capital of the Silicon

Valley of India is currently leading

in Information Technology Industries in India.

2 Chennai

Famously known as "Gateway of South India",

it is the second largest exporter of Software

3 Hyderabad

Hyderabad which has good infrastructure and

good government support is also a

good technology base in India

4 Pune

Pune, a major industrial town, hosts numerous

multinational and national software giants

10

along with BPO and KPO firms. World class

SEZs like Hinjawadi IT park and Magarpatta

city give Pune a distinct advantage. The city is

a major educational hub and churns out

thousands of technocrats every year.

Kolkata

Kolkata which is slowly becoming a major IT

hub in near future. Some of the well known

technological corporations are si

6 NCR

The National Capital Region of India

comprising Delhi, Gurgaon, Faridabad, Noida,

Greater Noida and Ghaziabadare having

ambitious projects and are trying to do every

possible thing for this purpose.

7 Mumbai

Popularly known as the commercial,

entertainment, financial capital of India, This

is one city that has seen tremendous growth

in IT and BPO industry, it recorded 63% growth

in 2008.TCS, Patni, LnT Infotech, I-

Flex WNS and other companies are

headquartered here.[Source: NASSCOM, 29 Jan 2008]

India's IT industry (USD bn)

*Table 1.2

Particulars FY 2004 FY 2005 FY 2006 FY 2007

IT Services 10.4 13.5 17.8 23.7

- Exports 7.3 10.0 13.13 18.1- Domestic 3.1 3.5 4.5 5.6ITES-BPO 3.4 5.2 7.2 9.5- Exports 3.1 4.6 6.3 8.3- Domestic 0.3 0.6 0.9 1.2

Engineering services, R&D and

Software products2.9 3.9 5.3 6.5

- Exports 2.5 3.1 4.0 4.9- Domestic 0.4 0.7 1.3 1.6

11

Hardware 5.0 5.9 7.0 8.2Total IT industry 21.6 28.4 37.4 47.8- Exports 13.4 18.2 24.1 31.9- Domestic 8.3 10.2 13.2 15.9[Source:NASSCOM,15 Jan 2008]

The IT industry has great scope for people as it provides employment to

technical and non-technical graduates and has the capability to generate

huge foreign exchange inflow for India. India exports softwares and

services to approximately 95 countries in the world. By outsourcing to

India, many countries get benefits in terms of labour costs and business

processes. Also, the Indian companies are broadening the range of

services being provided to the customers, which is resulting in more off

shoring. Talent acquisition, development and retention initiatives taken by

the companies have brought down the employee attrition rates, thereby

providing more stability to the employees and increasing their job

commitment.

Many financial institutions are providing funds for the expansion of IT and

ITeS businesses. In order to support IT and ITES, the Indian Government is

also taking many steps. For example: The Govt. has provided incentives

including tax holiday up to 2010 and competitive duty structures. The

Govt. is trying to reduce the international communication cost. It is

providing infrastructure support through organizations such as software

technology parks. All these factors collectively create a number of

opportunities in the IT sector. IT will continue to gain momentum telecom

and wireless will follow the trend. The immense expansion in networking

technologies is expected to continue into the next decade also.

IT will bring about a drastic improvement in the quality of life as it impacts

application domains and global competitiveness. Technologies that are

emerging are Data Warehousing and Data Mining. They involve collecting

data to find patterns and testing hypothesis in normal research. Software

services that are being used in outsourcing will go a long way. Change is

in the air in 2009. More so, in the case of IT companies. Enterprises are

12

embarking on various forward-thinking approaches and new technologies.

As the global economy slows down, and the macro economic situation

continues to be challenging, IT companies are looking for ways to trim

spending and improve their output. Technology trends in the networking

market point towards growth. According to Naresh Wadhwa, president and

country manager, India and Saarc, Cisco, The network and

communications market will propel the growth of the router and switching

market in India.

While banking, financial services and insurance (BFSI) and telecom service

providers will remain key adopters in the market, the government is likely

to emerge as a big spender due to various e-governance and state wide

area network (SWAN) initiatives. His wish list for 2009, says Naresh

Wadhwa, include, new, interesting and cost-effective applications of

collaborative technologies that enable enterprises to reach out to

consumers in rural India.

The three major business challenges in 2008, according to Arup Roy,

senior research analyst at Gartner, are: low-cost offshore business

delivery model, currency fluctuation and high talent crunch.According to

Pallab Talukdar, director, Enterprise Business, Dell, Given the recession,

the customer is more conscious while buying any product and the decision

cycle become longer. According to Faisal M Paul, head ESS, marketing and

growth Initiatives, HP India Sales Pvt. Ltd,

The biggest business challenge of 2008 which IT companies faced was the

sudden drop in customer projects and buying pattern and hence IT

companies are stretching to meet the orders and revenue commitments

made at the beginning of 2008. The era of incremental benefits and long

drawn out time-to-benefits seems to be over. Now customer would

demand more quantum increases in value based on the new value

frameworks emerging. Both customers, organizations and IT firms would

stick to no-brainer strategies instead of spiny strategies since the

opportunity costs of failure would be magnified in the present context,

Jalan said.

13

Data Centre consolidation seems to be high on every leader s agenda to

ensure optimal utilisation of existing resources and assets. According to

Pallab Talukdar, director, Enterprise Business, Dell, The three major

technologies in of 2009 will be a move towards Standardisation,

Virtualisation and a unified communication fabric in the data centre.

Wadhwa agrees, Virtualisation will play a big role in the near future as IT

organisations morph into more and more of a services management

framework.Analysts at Gartner predict that technology trends like SaaS,

virtualization and cloud computing, among others, are likely to shape IT

and business to a large extent in the coming year. Also, adoption of green

practices as a business imperative will intensify.

Retention Challenges in India

The pool of experienced professionals in India is smaller than its large

population would suggest. Out of its 1.1 billion people, about 350 million

use some English, but there may be as few as 20 million who are fully

fluent. And although over 2.5 million new college graduates are produced

every year, their education is often not up to the hiring standards of

Western firms. Due to the high demand for qualified people, Indians from

top colleges or with experience in reputable firms often have two or three

job offers at any given time. Therefore, although salaries in India are still

much lower than those in the West, they are steadily increasing. For

example, a recently-graduated accountant might be offered a starting

salary of $16,000 today, up from $12,000 two years ago. For graduates of

top business schools, starting salaries have been rising by as much as

50% annually in some cases.

In addition, attrition rates are extremely high in India. Estimates of

attrition rates in the industry’s most affected (business process

outsourcing, IT, retail, pharmaceuticals, etc.) range from 20% to 60%.

Some individual companies have seen attrition as high as 80%. This

revolving-door hiring costs a company severely in terms of lost training as

14

well as reduced efficiency. According to some estimates, a resigning

employee might cost the employer twice his or her yearly salary. In short,

HR professionals must deal with two main types of problems for India:

first, attracting good employees despite fierce competition; and second,

keeping these employees satisfied so that they do not leave.

Obviously, it is important to carefully follow standard best practices in HR,

Designing competitive compensation packages, with performance

incentives like bonuses and stock options as appropriate, Implementing

transparent performance review systems, Making sure employees are well

supervised and respected, providing good working conditions with flexible

hours if necessary. Since the heaviest competition is for candidates who

are already qualified for positions, an increasingly common strategy is to

broaden the pool of candidates past the ideal of “someone already doing a

similar job.” This may include hiring from outside a company’s own

industry; hiring from second-tier colleges and universities; and hiring less

skilled people with the intention of training them up.

One company doing this is Genpact, a major business process

outsourcing (BPO) provider in India originally started up by GE Capital.

Genpact has set up a “pre-hire training” institution to train Indians from

second-tier and third-tier cities. These people are often highly motivated

and capable, but may not know English well or lack degrees from good

schools. Other major companies with similar programs include EXL (also

a BPO provider) and Amway. Training employees not only expands the

candidate pool, but it also helps reduce future turnover, since it helps

candidates clearly understand beforehand what their job will entail.

Formerly, if Indian employees quit their jobs, they were not likely to be

taken back later. However, this is changing with the increased

sophistication of Indian HR practices. Now, in the tight job market, more

companies are welcoming former employees back. This is occurring at

mid-level as well as upper-level ranks. Not only do former employees

often have the skills companies are looking for, but they can also be re-

integrated into the workplace quickly. Examples of Western firms

15

actively reaching out to former employees in India include ADP, a global

financial services company, and Cairn Energy, a British oil exploration

company. Many companies, including Cairn, are creating online “alumni

portals” to keep in touch with their former employees. Some companies

are also expanding their referral commission systems (where employees

get payments for referring new hires) so that former employees as well

as current employees can receive referral commissions.

Many workplaces in India offer various leisure activities on-site. These

can help retain employees by letting them relax and reduce stress. The

methods are not unfamiliar to Western HR professionals. Infosys, an

IT/BPO firm with about 90,000 employees worldwide, hosts music and

sports competitions, clubs, and an art gallery at its India campus. It also

has other more conventional perks like gyms and food courts. These

types of benefits are especially suited to the IT industry, where

employees may have significant down-time between intensive periods

of work.

In India, it is relatively common to hold activities which both employees

and their families can attend. This helps integrate employee more fully

into the workplace “community.”However, leisure activities and perks

can only go so far. If you oversell a workplace as “fun,” candidates may

view their actual work unfavorably. Candidates should have an

understanding of their work as valuable to the company and to

themselves personally. Surveys show that salary is one of the top

considerations of Indians in choosing jobs, but it is only a minor factor in

employee satisfaction. If you want employees to stay at their jobs, one

of the best motivators is career development.

Therefore, the best employers in India carefully track career

development. They hold regular one-on-one meetings on the subject,

set and track goals, and provide training. Large companies tend to have

in-house training facilities, and smaller companies are also increasingly

providing funding for external training. Training might be for specific

technical skills, or for more general skills like learning a new language.

16

This makes employees more productive in the long run and also gives

them the signal that the company sees them as a worthy investment.

One career-development incentive used by larger companies in India is

internal company transfers. The Tata Group, a major conglomerate with

business including cars, finance, steel, and BPO, tracks its talent and

facilitates employee transfers across all companies in the group. This

motivates employees by showing that they will not be trapped in one

industry if they want to expand their marketability as an employee. With

foreign companies, the possibility of transferring to an overseas job is

also alluring. Companies with these internal transfer programs often

specify that employees cannot transfer until they have been employed

for a set period of time, such as 18 months.HR departments of major

companies in India are being forced to expand. According to some

estimates, HR staff is increasing from 1 in 500 total employees to 1 in

100. This is partly because the ratio of applications to new hires is very

high, giving recruiters a heavy workload. In addition, keeping employees

satisfied with their jobs is increasingly time-consuming. Insufficient HR

capability may be a strong liability for Western companies operating in

India.

In India, many HR functions can be outsourced as an alternative to

increasing staff. Nokia India, for example, uses vendors for most HR

functions except for functions integral to the company, like mentoring

and culture building. India’s strength in business process outsourcing

means most of these services can be found locally. Background

screening, for example, was almost nonexistent in India in 1995; today,

there are dozens of Indian companies specializing in it. One of the most

significant challenges to the growth and survival of any business is

finding and retaining qualified employees. It's not enough to offer an

appealing or unique product or service to your customers. A company's

people are the new competitive advantage. Those responsible for

staffing organizations are not only challenged with finding adequate

potential employees, but finding the right people for the positions they

need to fill.

17

This course explores two aspects of recruitment as one component of a

sustainable talent management strategy: attracting the talent needed to

meet the company's needs, and using innovative recruiting techniques to

find the right people. Learners will explore how to consider the needs of

the organization balanced against the expectations and needs of the

potential employees who comprise the talent market. The talent market

consists of a cross-section of potential employees that spans generations,

cultures, languages, and even continents, each of which brings something

different to the table and may expect or want something different in

return. The course specifically focuses on how to appeal to these recruits

by tapping in to what is important to them in a job. It also prepares

learners to establish and implement a recruitment strategy. Reflecting the

most up-to-date recruitment information, this course provides

foundational principles that learners can effectively put to work in their

own organizations.

Employee retention remains a critical issue that no corporation is immune

to. For a company to remain successful and competitive, it must keep its

biggest assets its people engaged and committed for the long term. It's a

known fact that even the most lucrative compensation plan alone is not

enough to keep your much-needed employees from moving on, so your

organization must utilize successful strategies for retaining employees.

This course provides you with an overview of employee retention

strategies. Specifically, you'll explore the elements of a high-retention

organization and the procedure for implementing a successful retention

strategy. This course also covers employee engagement, including

identifying and enhancing engagement drivers, measuring engagement,

and executing an engagement strategy.

One of the most significant challenges to the growth and survival of any

business is finding and retaining qualified employees. To be successful,

businesses should consider recruitment and retention not as two separate

efforts, but instead as a combined strategy for creating a high-retention

organization. This simulation provides the opportunity to practice the skills

required to integrate employee engagement and retention strategies with

18

recruitment efforts. Recruiting and retention in India today leaves little

margin for error. It is a challenge to make sure that new employees are

right for the job, and to make the best employees stay. However, by being

proactive and thorough in addressing these challenges, it is possible for

foreign companies to keep good people and achieve their business goals.

CHAPTER 2

REVIEW OF LITERATURE

19

CHAPTER 2

REVIEW OF LITERATURE

Employee turnover is a much studied phenomenon. There is a vast

literature on the causes of voluntary employee turnover dating back to the

1950s. By developing multivariate models that combine a number of

factors contributing to turnover and empirically testing the models

researchers have sought to predict why individuals leave organisations.

Many studies are based on only a small number of variables which often

only explain a small amount of variability in turnover. Another criticism of

turnover studies is that they do not adequately capture the complex

psychological processes involved in individual turnover decisions. A recent

study of turnover by Boxall et al (2003) in New Zealand confirmed the

view that motivation for job change is multidimensional and that no one

factor will explain it.

However, over time there have been a number of factors that appear to

be consistently linked to turnover. An early review article of studies on

20

turnover by Mobley et al (1979) revealed that age, tenure, overall

satisfaction, job content, intentions to remain on the job, and commitment

were all negatively related to turnover (i.e. the higher the variable, the

lower the turnover). In 1995, a meta-analysis of some 800 turnover

studies was conducted by Hom and Griffeth, which was recently updated

(Griffeth et al, 2000). Their analysis confirmed some well-established

findings on the causes of turnover. These include: job satisfaction,

organisational commitment, comparison of alternatives and intention to

quit. These variables are examined in more detail below, as are a number

of other factors where the evidence on the link to turnover is less

conclusive.

Now more than ever in the history of business, it is imperative for the

organization to manage people well. The shift from industrial age to the

knowledge worker’s age is sweeping the country. In fact the whole world is

in today’s information economy, people’s knowledge, skills and

relationships are an organization’s biggest asset and main source of

competive advantage. People related cost to have risen to more than two

third of organizational spending. Increasingly, talent attraction and

retention is viewed as significant drivers. According to a survey done by

the all India Management Association (AIMA), 90% of Indian companies

have talent retention problem and it mostly include the IT sector.The last

decade has seen problems in sourcing the right talent, rising attrition

rates, decreasing retention rates and poaching of employees by

competitors. To deal with the problem companies resorted to extensive

organizational change programmes and intervention from outside

consultants. These large scale programmes without proper diagnose of

the prevailing problems lead to more troubles rather than any further

changes for the organizations. It is rightly said that “mangers at every

level are accountable for attracting and retaining manpower to keep the

wheels of business running”.

21

“Talent retention is identified as the second most H.R challenge to

critically meet the business demands beyond tomorrow. Organization can

use a combination of four strategies pay, benefit, learning and

development, work environment to create and retain a pool of talented

employees for the organization. Success companies assign the same

importance to employer branding as they give to product branding which

help them in becoming am employer of choice. They are continuously

innovating and inventing new ways to keep talented employees stick to

the organization, which is changing the face of talent management in

India” (Madok.Anneta, 2006).In a recent survey of 57 CEO’s and H.R

professional “Talent Retention” is identified as the second most HR

challenge to critically meet the business demands beyond tomorrow, then

comes the issues of “Creating high performance culture’.

*Table 2.1

Sl.No HR Challenge Rank in order

of

Importance

Percentage

of top ten

reason

Percentage

of bottom

ten reason

1 Creating a

high

performance

culture

1 47% 3%

2 Talent

retention

2 28% 0%

3 Recruiting in

today’s

context

3 22% 0%

22

4 Managing

mindsets

4 6% 8%

5

Training for

growth 5 6% 0%

6 Compensatio

n knowledge

workers

6 3% 8%

7 Building

inter-

personal

relationship

7 6% 14%

8 Going global 8 6% 22%

9 HR system

implementati

on

9 6% 28%

10 Human

capital

practice

10 0% 17%

Source: (Madok.Anneta, 2006)

Attrition in IT sector: A growing cause for concern (Chakraborty. Samik,

2008). In this article it reveals the present scenario situation of employee

attrition rate, and what are few factors which are responsible for this

threat. In olden days the employees were well satisfied with the salary

package they used to get, but now it’s only one factor to retain the

employee with the organization. This article also reveals that the

organization should be very careful in handling with various issues

regarding the employee because it is very sensitive. The article also talks

about the various elements like rewards and recognition, grievance

redressal mechanism, career progress, ego troubles which should be taken

care.

23

"In today's workplace, employers are not only having a hard time

attracting employees, but are also having a difficult time keeping them

(Harkins, 1998). Employees leave for a variety of reasons, including poor

supervision, unchallenging positions, limited advancement opportunities,

lack of recognition, limited control over work, perceived pay inequity, and

the perception of more favorable opportunities in other companies

(Jardine, 2001). High employee turnover is one of the great Samik, yet

causes of declining productivity and decreased morale in corporate

America (Abassi, 2000). While morale decreases, recruiting and training

costs increase and an organization can find itself in a vicious cycle

(Secretan, 2001)." "One of the most foundational issues facing businesses

of any size in the modern economic world is employee retention. Gone are

the days where one individual keeps the same job for their entire working

career retiring with 30 years of service and a gold watch. The current

business climate in small, medium and large companies includes one of

transitional employees, both intentional and unintentional. On the whole

much more funds are spent on the job and external training than has been

spent in the past as a result of the fact that most people now work one job

or career for no more than about ten years and then either move forward

in the company to a completely different position or more commonly

move on to another company or even to a completely different career."

"The CIPD data published by Talent Drain shows that in order to retain

good employees by meeting their psychological growth needs, 58% of

companies institute "training and development" strategies, 20% of

companies redesign job duties, and 29% implement mentoring systems. In

order to enhance "the everyday experience" of employees, 52% of

companies utilize "improved induction processes"; 48% of companies

surveyed work towards "improved communication"; 32% approach the

"work-life balance" of the worker; 35% implement "flexible working"

hours; 32% have established "family-friendly provisions" that go beyond

the UK legal minimum provisions."

24

"The findings of Trank and colleagues (2002) were that individual pay-for-

performance schemes were potentially most effective amongst high

achievers. As these high achievers are likely to also be the most desirable

employees which a company would wish to retain this then would suggest

financial incentives to be an effective tool for retention. Rynes and

colleagues (2003) suggest that this is related to the concept that financial

incentives may function as a motivator due to an individual being driven

by the desire to have a salary which is larger than that of their peers.

Rynes suggests that it is the differentiation of pay which is actually the

largest motivator for this reason. This then would suggest that high salary

alone is not sufficient for retention of desirable staff, but that

differentiation according to achievement is crucial. Rynes argues that high

achievers would not wish to work in a company in which achievement is

not recognized through reward. This would then imply that any company

which does not engage in pay-for-performance schemes is likely to lose

desirable employees to a company which does operate with financial

incentives."

There is little evidence of a person’s sex being linked to turnover. Griffeth

et al’s (2000) Meta analysis re-examined various personal characteristics

that may be linked to turnover. They concluded that there were no

differences between the quit rates of men and women. They also cited

evidence that gender moderates the age-turnover relationship (i.e.

women are more likely to remain in their job the older they get, than do

men). They also found no link between intelligence and turnover, and

none between race and turnover.

The research conducted on the link between dissatisfaction with pay and

voluntary turnover appears to be inconclusive. Mobley et al (1979)

concluded that results from studies on the role of pay in turnover were

mixed but that often there was no relationship between pay and turnover.

Other studies found no significant relationship. On the other hand

Campion (1991) cited in Tang suggests that the most important reason for

25

voluntary turnover is higher wages/career opportunity. Martin (2003)

investigates the determinants of labour turnover using establishment-

level survey data for the UK. Martin indicated that there is an inverse

relationship between relative wages and turnover (ie establishments with

higher relative pay had lower turnover). Martin (2003) detected a complex

relationship between turnover and training. He suggested that

establishments that enhance the skills of existing workers have lower

turnover rates. However, turnover is higher when workers are trained to

be multi-skilled, which may imply that this type of training enhances the

prospects of workers to find work elsewhere. The literature on the link

between lower turnover and training has found that off-the-job training is

associated with higher turnover presumably because this type of training

imparts more general skills (Martin, 2003).

26

Tenure is also negatively related to turnover (the longer a person is with

an organisation, the more likely they are to stay). Mangione in Mobley et

al concluded that length of service is one of the best single predictors of

turnover. Griffeth et al also found that age and tenure have a negative

relationship to turnover. There is little evidence of a person’s sex being

linked to turnover. Griffeth et al’s (2000) Meta analysis re-examined

various personal characteristics that may be linked to turnover. They

concluded that there were no differences between the quit rates of men

and women. They also cited evidence that gender moderates the age-

turnover relationship (i.e. women are more likely to remain in their job the

older they get, than do men). They also found no link between intelligence

and turnover, and none between race and turnover.

The research conducted on the link between dissatisfaction with pay and

voluntary turnover appears to be inconclusive. Mobley et al (1979)

concluded that results from studies on the role of pay in turnover were

mixed but that often there was no relationship between pay and turnover.

Other studies found no significant relationship. On the other hand

Campion (1991) cited in Tang suggests that the most important reason for

voluntary turnover is higher wages/career opportunity.

Martin (2003) investigates the determinants of labour turnover using

establishment-level survey data for the UK. Martin indicated that there is

an inverse relationship between relative wages and turnover (ie

establishments with higher relative pay had lower turnover). Martin (2003)

detected a complex relationship between turnover and training. He

suggested that establishments that enhance the skills of existing workers

have lower turnover rates. However, turnover is higher when workers are

trained to be multi-skilled, which may imply that this type of training

enhances the prospects of workers to find work elsewhere. The literature

on the link between lower turnover and training has found that off-the-job

27

training is associated with higher turnover presumably because this type

of training imparts more general skills (Martin, 2003).

28

According to a study by Daniel G. Spencer in 1986 on Employee voice and

employee retention: Even though the study was conducted upon the

hospital concern, it throws light on the factor how important is for any

employee to raise his/ her voice or suggestion within the organization. The

study also states that if the organization listens to the employee and takes

their value suggestion. To a great extent it will be easy for the

organization to retain the employee. The study also highlights the

importance of working atmosphere in retaining the employee strength. It

states that overall satisfaction plays a very crucial role in employee

retention. Tenure is also negatively related to turnover (the longer a

person is with an organisation, the more likely they are to stay). Mangione

in Mobley et al concluded that length of service is one of the best single

predictors of turnover. Griffeth et al also found that age and tenure have a

negative relationship to turnover.

According to a study conducted by Martin G. Evans in 1970 on Leadership

and Motivation: A core concept. The study emphasize on the importance

of the supervisor relationship in order to retain the employee with the

organization. The study briefly states how a supervisor can motivate a

subordinate to achieve the organizational goals through the achievement

of the individual morale satisfaction. The study also throws a light on how

important is the non-monetary benefits for an employee. The best way to

improve employee retention is to understand what the employee want

and need from the work place and provide it. Companies must meet

employees demand within limits. Management cannot just dish out

indiscriminate amount of money to employee or give them whatever they

demand. Individuals with high career commitment and low organisational

commitment also tend to leave because they do not believe that the

organisation can satisfy their career needs or goals. This is consistent with

previous research that high career committers consider leaving the

company if development opportunities are not provided by the

organisation. However, this group is not apt to leave and is likely to

contribute to the company if their organisational commitment is

29

increased. Chang found that individuals become affectively committed to

the organisation when they perceive that the organisation is pursuing

internal promotion opportunities, providing proper training and that

supervisors do a good job in providing information and advice about

careers.

Kirschenbaum & Mano-Negrin (1999) indicated that turnover is affected

by organisational size, with size being the key mediator of an

organisation’s internal labour market. They suggest that organisational

size impacts on turnover primarily through wage rates but also through

career progression paths. Developed internal organisational labour

markets produce lower departure rates since promotion opportunities

have a strong negative influence on departures for career-related reasons.

Mobley et al (1979) concluded that a number of studies offered moderate

support for a negative relationship between satisfaction with supervision

and turnover (ie the higher the satisfaction with supervision, the lower the

turnover).

Another way of measuring turnover is to base turnover rates on voluntary

leavers or resignation rates only, thus excluding employees who have left

for other reasons such as retirement, redundancy, dismissal or

redeployment to another part of the organisation. However, basing

turnover rates on voluntary leavers can also have its drawbacks because

it does not indicate how many staff needs recruiting to cover those

employees who have left because of retirement or voluntary internal

transfers. One solution is to record separate turnover rates for voluntary

and involuntary leavers (IDS, 2004). Wastage rates can also be used for

specific groups of employees or different business units, which allow an

organisation to detect differences in turnover within different parts of the

organisation. Overall figures tend to mask potentially significant

differences in turnover within an organisation (IDS, 2004). For example,

high turnover in one area of the business could produce the same overall

rate as a small number of leavers distributed evenly across the

30

organisation, but the actions required to deal with these situations would

be quite different. Examining turnover by department can identify any

local issues or possible problems concerning particular line managers or to

monitor turnover among groups of employees with scarce skills. Wastage

rates can also be applied to employees with a certain length of service (eg

less than one year) which can help pinpoint ineffective recruitment,

selection or induction processes (IDS, 2004).

Organisations typically obtain qualitative information on turnover through

exit interviews and surveys. However, it is important to appreciate that

the reasons people give for their resignations are frequently untrue or only

partially true (CIPD, 2004). The use of exit interviews is widespread yet

they can be unreliable, particularly when conducted by someone who may

later be asked to write a reference for the departing employee. Where exit

interviews are used it is best to conduct them a short time after the

employee hands in their notice. The interviewer should be someone who

has not had direct responsibility for the individual (i.e. as their line

manager) and who will not be involved in future reference writing.

Confidentiality should be assured and the purpose of the interview

explained (CIPD, 2004). Alternative approaches involve the use of

confidential attitude surveys which include questions about intention to

leave and questionnaires sent to former employees on a confidential basis

about six months after their departure. In high turnover industries in

particular, a great deal of employee turnover consists of people resigning

or being dismissed in the first few months of employment (CIPD, 2004).

The costs of recruitment and turnover per individual become much

greater when new staff leave after only a short period of time. Where new

employees leave after a short period in the job, poor recruitment and

selection decisions both on the part of the employer and employee are

usually the cause, along with poorly designed or non-existent induction

programs (CIPD, 2004). If expectations are raised too high during the

recruitment process this can result in people accepting jobs for which they

31

may be unsuited. Organisations often do this to ensure that they fill their

vacancies with sufficient numbers of well-qualified people as quickly as

possible. However, this can be counterproductive over the longer-term, as

it can lead to costly avoidable turnover and to the development of a poor

reputation in local labour markets. The CIPD (2004) suggests that

employers give employees a realistic job preview at the recruitment stage

and take care not to raise expectations. It may also be useful to invite

applicants to work a shift before committing themselves.

This review of turnover literature identifies a range of factors that have been shown to be

consistently linked to turnover. These include organisational commitment, job satisfaction,

alternative opportunities and intentions to quit. Evidence on the role of pay is still somewhat

inconclusive, although keeping pay in line with market rates is certainly critical to retaining

staff. Apart from age and tenure, personal characteristics of employees appear to have little

relationship to turnover. While these factors can help employers understand the general nature

of turnover and its likely causes, the retention strategies adopted within industries and

organisations tend to cover a unique mix of measures and approaches specifically targeted at

the particular problem they face. Understanding the problem is the key to devising an

effective retention strategy.

32

CHAPTER 3

RESEARCH METHODOLOGY

CHAPTER 3

RESEARCH METHODOLOGY

33

STATEMENT OF PROBLEM

Managing attrition does not mean reducing attrition only. It could also

mean bringing down the negative effects of attrition. To do this the

organizations should put up appropriate retention and capacity utilization

or talent utilization tactics. There are various retention strategies used by

the organizations today. The objective is to know how effective it is from

the employee’s perspective and how it is administrated. A high rate of

attrition effect the organization in many ways like it leads to more

expense, loss of company knowledge, Interruption of customer service, as

well as the company’s goodwill get effected. Handling the employee

retention issues has got a serious attention at all level of management.

The problem of employee retention has hit all category of employee

equally. Employee retention one of the major issues faced by any industry.

Although several studies are done on the topic, the issue is still disturbing.

Even though companies make efforts to control this issue, still it fails to a

great extent. This study makes an attempt to figure out what the real

problem is and effectiveness of the polices followed by the IT companies

to retain their human resource. This study is done from the employee’s

prospective.

34

OBJECTIVE OF THE STUDY

Broad objective:

“A study on employee retention practices and its effectiveness in IT sector”.

Specific objective:

• To measure the effectiveness of the current employee retention

practice.

• From the employee perspective, to understand and analyse the

reason for high employee turn over rate.

• To find out the recent employee retention practices and techniques

in IT industry.

• To study the impact of non-monetary motivational factors designed

by the organizations in retaining its employees.

• To study the role of organization culture in retaining the employee.

OPERATIONAL DEFINTION

Employee: A person who is hired to provide services to a company on a

regular basis in exchange for compensation and who does not provide

these services as part of an independent business.

35

Retention: In simple words retention means keeping or possessing

something.

Employee Retention: It is a business management term referring to efforts

by employers to retain current employees in their workforce.

NEED FOR THE STUDY

Employers have a need to keep employees from leaving and going to work

for other companies. This is true because of the great costs associated

with hiring and retraining new employees. The best way to retain

employees is by providing them with job satisfaction and opportunities for

advancement in their careers. This study is conducted within Bangalore,

city known as the IT hub of India. There is a good scope for the study as

Bangalore has all the IT firms from all over the world located at different IT

parks. As attrition is a serious problem concerning the companies, the

study will help to have overlook.

METHODOLOGY

Data collection:

Primary data is collected with the help of structured questionnaire

measuring the retention practices and its effectiveness on a five point

Likert scale.

Secondary data is collected on the base of articles and other publication

on the topic from journals, news papers, magazines, and websites.

36

RESEARCH DESIGN

Sample population : The population of the survey consists of employees

(Human Resource Management and Administrative department) from IT

service industry.

Sample Unit: Collection of the data is from the employees of various

groups from IT industry in Bangalore. As for the study convenient

sampling method was used, top ten companies rated by NASSCOM was

selected as sample unit.

Sample size: 200 Management employees from IT companies in

Bangalore.

SAMPLE CHARACTERISTIC:

1. Gender

*Table 3.1

Gender Frequency Percent

Male 94 47.0

Female 106 53.0

Total 200 100.0

*Chart3.1

Source: Table 3.1

Out of 200 respondents 106(53%) were female and 94(47%) were male.

37

2. Age

*Table 3.2

Age Frequency Percent< 30 years 148 74.0

31-40 years 42 21.0

41-50 years 10 5.0

Total 200 100.0

*Chart 3.2

*Source: Table 3.2

Above table and Chart depicting the result of Age distribution among the

samples, among the total sample of 200, maximum respondents were

given by those in the age group of <30 years, constituting to 74%. It was

followed by the sample in the age span of 31-40 years, 21%. Then the

least chunk of respondents was aged above forty, 5%. This implies that

38

maximum numbers of respondents are in the age group of < 30 and the

least are the people aged above forty.

3. Marital Status

*Table 3.3

Marital Status Frequency Percent

Married 83 41.5

Unmarried 117 58.5

Total 200 100.0

*Chart 3.3

*Source: Table 3.3

Out of 200 samples, In marital status, maximum respondents were by

those who were Unmarried, constituting to 85.5%. It was followed by the

sample who was married that sums up to 41.5%

4. Qualification

39

*Table 3.4

Qualification Frequency Percent

Graduate 63 31.5

Post Graduate 95 47.5

Professional 42 21.0

Total 200 100.0

*Chart 3.4

*Source: Table 3.4

When it came to educational qualification, maximum number of

respondents was Post graduates, which constituted to 47.5%. Then 31.5%

of the sample was graduates and 21% percent of them were Professionals.

5. Designation

*Table 3.5

40

Designation Frequency Percent

Associate/Executives 49 24.5

Hr Executive 57 28.5

Mgr / TL 29 14.5

Sr.Exe/Assoc 41 20.5

Others 24 12.0

Total 200 100.0

*Chart 3.5

*Source: Table 3.5

Now considering the designation, we can see that Associates and HR.

Executes are more ore less equally distributed around 25% and followed

by Sr.Executives around 20%. Managers and Team Leads around 14.5%

and others constitutes R&D, Payroll and Support close to 12%

6. Experience

*Table 3.6

Experience in Current Position

Frequency Percent

Less than 1 year 81 40.5

1 to 3 years 72 36.0

41

More than 3 years 47 23.5

Total 200 100.0

*Chart 3.6

*Source: Table 3.6

Considering the work experience of respondents in current organization,

maximum responses were given by those who had work experience

between less than years, constituting to 40.5%. 36% of the respondents

had an experience of 1- 3 years. Then the other chunk of respondents had

an experience more than three years close to 24%.

7. Organization worked for last 5 yrs.

*Table 3.7

No. of Org. worked in last 5 years

Frequency Percent

First Job 14 7.0

1 org. 71 35.5

2 org. 86 43.0

3 org. 23 11.5

42

4 org. 6 3.0

Total 200 100.0

*Chart 3.7

*Source: Table 3.7

Out of 200 samples, 43% of respondents has changes 2 organization in

the past 5 years of their career, followed by 35.5% of 1 organization,

11.5% of respondents worked for 3 organization and 7% of respondents

the current employment is first job in their career

LIMITATION OF THE STUDY

43

The study was restricted only to Bangalore City due to the time

constraint.

The study was limited to the extent of information provided by the

IT Employees.

The study was limited with the data collected from employee of H.R

and administrative department.

The outcome of the study can not be generalized.

The results of the survey was based on the respondents, chance of

bias is present.

STATISTICAL TOOLS USED IN THE STUDY

For the analysis of demographic data percentage analysis is used.

To aggregate factor score, mean score is been used.

Correlation analysis is used to find the relationship between

different elements.

To find the impact on all variable we have used multiple regression

analysis is used.

To check the goodness of the data reliability analysis is used.

To reduce the dimension of retention strategy factor analysis is

used.

44

CHAPTER 4

DATA COLLECTION & ANALYSIS

45

CHAPTER 4

DATA COLLECTION AND ANALYSIS

Section A of the questionnaire

*Table 4.1Retention strategy (N=200) Available Not

AvailableTraining & development opportunities 86.5% 13.5%Rewards & Recognition 83.5% 16.5%Job rotation Relocation 83.0% 17.0%Benchmarking 82.0% 18.0%Mentoring & Coaching 81.5% 18.5%Contract agreements 69.5% 30.5%Help with career plan 66.0% 34.0%Flexible work time 62.5% 37.5%Onsite opportunities 52.5% 47.5%Assistance in higher education 47.5% 52.5%360 degree appraisal system 47.0% 53.0%Work from home 39.0% 61.0%Stock investment opportunities 35.0% 65.0%Antipoaching agreements 35.0% 65.0%Financial support for education 34.5% 65.5%Nominal rental facility 34.5% 65.5%Day care facility 32.0% 68.0%

*Chart 4.1

*Source: Table 4.1

46

Section B of the questionnaire

*Table 4.2

Benefits (N=200) Available Not Available

Salary Compensation 100.0% 0.0%

Leave benefits 76.5% 23.5%

Health Insurance benefits 80.0% 20.0%

Retirement plan PF 84.5% 15.5%

Seasonal Festival benefits 26.5% 73.5%

Nonmonetary benefits such as team tours 61.0% 39.0%

Recreational benefits gym health club 73.0% 27.0%

*Chart 4.2

*Source: Table 4.2

Factor Analysis

*Table 4.3

Rotated Component Matrix Factor Name Career

Development

Education Back

up

Peripherals’ Benefi

Flexi working

s

Locking

strat

Mentoring

47

ts egy

Training & development opportunities

0.81

Rewards & Recognition

0.79

Benchmarking 0.69

Onsite opportunities

0.64

Financial support for education

0.87

Assistance in higher education

0.75

Stock investment opportunities

0.53

Job rotation Relocation

0.46

Day care facility 0.78

Nominal rental facility

0.68

Flexible work time

0.84

Work from home

0.68

Antipoaching agreements

0.89

Contract agreements

0.66

360 degree appraisal system

0.46

Mentoring & Coaching

0.68

Help with career plan

0.64

TVE (%) 69.69%

15.12 14.43 10.38 10.28 10.19

9.28

Eigen Value 4.38 2.03 1.71 1.54 1.17 1.02Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

48

49

*Chart 4.3

*Source: Table 4.3

Five Factors derived by using Eigen value is greater than 1 total variance explained = 69.69%

Factor 1 – Career Development

*Chart 4.4

*Source: Table 4.3

According to the above table Training and development opportunities have a higher value

than the other factors of career development programmes.

Factor 2 – Education Break up

*Chart 4.5

*Source: Table 4.3

According to the above table financial support for education have a higher

value.

Factor 3 – Pripherlas Benefits

*Chart 4.6

*Source: Table 4.3

50

According to above table compared to a nominal rental facility, day care

facility have a higher value.

Factor 4 – Flexi Workings

*Chart 4.7

*Source: Table 4.3

According to above table an effective plan with flexible work time can help

in employee retention.

Factor 5 – Locking Strategy

*Chart 4.8

*Source: Table 4.3

According to above table antipoaching agreements are effective and have

value.

The general purpose of factor analysis is to find a method of summarizing

the information contained in a number of original variables in to a smaller

set of new composite dimensions (Factors) with minimum loss of

information. That is, the Factor Analysis tries to identify and define the

underlying dimensions in the original variables.

Factor analysis usually proceeds in following steps:

Principal Component Method Factor extraction is used, the number of factors necessary to

represent the data and the method of calculating them must be determined. At this step, how

well the chosen model fits the data is also ascertained. Kept Eigen value is greater than 1 to

extract factors from the given variables. This step is to determine the method of factor

51

extraction, number of initial factors and the estimates of factors. Here Principal Components

Analysis (PCA) is used to extract factors. PCA is a method used to transform a set of

correlated variables into a set of uncorrelated variables (here factors) so that the factors are

unrelated and the variables selected for each factor are related. Next, PCA is used to extract

the no. of factors required to represent the data.

For our study, we have 17 variables (statements rating varying from 1 to 5) 1 is Least

Important and 5 is Highly Important determine practice of Retention Strategy indicators

and kept Eigen value is greater than 1 to extract variables for the factors.

In the row (Eigen values) & below the row named TVE ‘Total variance explained’, we find

the variance on the new factors that were successively extracted. In that these values are

expressed as a percentage of the total variance. As we can see, factor 1 for about 15

Percentage of the total variance, factor 2 about 14 Percentage, and so on. This contains the

cumulative variance extracted is 69.69%. The sums of square of all the variables in given

factors are called the Eigen values. If Eigen value is greater than 1 it become factors. Sum of

square of a variable across factors are called communalities, as a threshold level

communalities should be greater than .5

Varimax Method Rotation is used, focuses on transforming the factors to make them more

interpretable. Since the idea of factor analysis is to identify the factors that meaningfully

summarize the sets of closely related variables, the Rotation phase of the factor analysis

attempts to transfer initial matrix into one that is easier to interpret. It is called the rotation of

the factor matrix.

There are several methods available for rotating factor matrix. The one used in this analysis is

Varimax Rotation, the most commonly used method, which attempts to minimize the number

of variables that have high loadings on a factor. This should enhance the interpretability of

the factors. The Rotated Factor Matrix showed Rotated Component Matrix using Varimax

rotation is given in Table 4.3, where each factor identifies itself with a few set of variables.

52

Scores for each factor can be computed for each case. These scores are then used for further

analysis. Normally factor analysis can generate but in this study we used mean score based

on data summarization is happened as the outcome of the factor analysis.

Summary

Thus the 17 variables in the data were reduced to 6 factor models and

each factor may identify and named with the corresponding variables

which is shown in Table 4.3. They are factor 1 is Career Development,

factor 2 is Education Back up, , factor 3 is Pheriperals Benefits, factor 4

is Flexi workings, factor 5 is Locking strategy and factor 6 is Mentoring

Correlation

*Table 4.4Pearson Correlation

53

Would recommend the organization for anyone to work for your Organization

Correlation Sig. (1-tailed) N

Career Development

0.17 0.01* 200.00

Education Back up

0.13 0.03* 200.00

Peripherals’ Benefits

0.04 0.30 200.00

Flexi workings

0.06 0.18 200.00

Locking strategy

0.04 0.30 200.00

Mentoring 0.14 0.02* 200.00

Benefits 0.13 0.04* 200.00

Personal Satisfaction

0.43 0.00** 200.00

Overall Retention Strategy

0.15 0.02* 200.00

Org. Culture

0.67 0.00** 200.00

** Correlation is significant at the 0.01 level (1-tailed).* Correlation is significant at the 0.05 level (1-tailed)

H1: There is statistically relationship between Employees Retention

Strategies and Employees Recommendation

H2: There is statistically relationship between Benefits and Employees

Recommendation

H3: There is statistically relationship between Personal Satisfaction and

Employees Recommendation

54

H4: There is statistically relationship between Organization Culture and

Employees Recommendation

*Chart 4.9

The above Table reported by Correlation analysis for Employees Retention

Strategies six factors versus Recommendaion variables “Would

recommend the organization for anyone to work for your Organization”.

The First factor is Career Development which is correlated with

Recommendation is 0.17 (17%) since sig value is less than 0.05; the

relationship is statistically significant at 5% level , factor 2 is Education

Back up which is correlated with Recommendation is 0.13 (13%) since sig

value is less than 0.05; the relationship is statistically significant at 5%

level , factor 3 is Pheriperals Benefits which is correlated with

Recommendation is 0.04 (4%) since sig value is not less than 0.05; there

is no statistically significant relationship, factor 4 is Flexi workings

Benefits which is correlated with Recommendation is 0.06 (6%) since sig

value is not less than 0.05; there is no statistically significant relationship,

factor 5 is Locking strategy which is correlated with Recommendation is

0.04 (4%) since sig value is not less than 0.05; there is no statistically

significant relationship and factor 6 is Mentoring which is correlated with

Recommendation is 0.14 (14%) since sig value is less than 0.05; the

relationship is statistically significant at 5% level.

Apart from these, Benefits, Personal Satisfaction and Organizational

Culture are correlated with Recommendation since all sig value is less

than 0.05; the relationship is statistically significant at 5% level. Among

these Organizational Culture is highly correlated with Recommendation

i.e. .67 or 67% and significant at 1% level.

Multiple Regression Analysis

55

*Table 4.5Table Model Summary & ANOVA F Value

R R Square F Sig.

0.68 0.47 56.92 0.00**** Model Sig at 1% level * Sig at 5% level

H5: There is statistically Impact between Employees Retention Strategies

and Employees Recommendation

H6: There is statistically Impact between Benefits and Employees

Recommendation

H7: There is statistically Impact between Personal Satisfaction and

Employees Recommendation

H8: There is statistically Impact between Organization Culture and

Employees Recommendation

Regression analysis was used to find the effect of Employees Retention

Strategies on Recommendation of the employees. The results of the

analysis are shown in the Table. It is seen from the table that the

correlation coefficient value is (R) 0.68 for linear model, which exhibits a

fair amount of correlation between the Independent variable (Employees

Retention practices) and dependent variable (Recommendation), with the

F-ratio being 56.92 and its associated significance level being small

(P<0.01). The R square value gives us the goodness of fit of the

regression model. That is, the amount of variability explained by the

whole of the selected predictor variables in the model for 47 % (R2%=.47 *

x100=47%) of variation in the dependent variable (Recommendation).

56

*Table 4.6

Table Coefficients

( Y=a+b1x1+b2x2+b3x3)

Unstandardized

Coefficients

Standardized

Coefficients

T Sig.

B Std. Error

Beta

(Constant) (a) -

1.930.52 -3.72 0.00**

Personal Satisfaction (x1) 0.02 0.10 0.01 0.20 0.85

Retention Strategy (x2)

0.25 0.11 0.13 2.39 0.02*

Org. Culture (x3) 1.21 0.12 0.66 10.06 0.00**

(Y) Dependent Variable: Level of Recommending to others

** variablesn Sig at 1% level * Sig at 5% level

Coefficient Table shows the relationship between Employees Retention

Strategies, Personal Satisfaction and Organization Culture on

Recommendation of the employees Retention Strategy and Organization

Culture Sig value are less than .05; hence it is statistically significant at

5% level. The signs between variables are also expected all are positive.

Hence there is statistically linear relationship between Employees

Retention Strategies, Organization Culture on Recommendation of the

employees. The most important variables which influences on

Recommendation of the employees is Organization Culture it is based on

Standardized beta coefficient i.e. .66, which shown in the table.

57

Reliability Test *Table 4.7Reliability Statistics Scale Statistics

Cronbach's Alpha

N of Items

MeanVarianc

e

Std. Deviati

on

0.81 17.00 64.21 69.63 8.34

Cronbach alpha inter item test is conducted to know the reliability of the data. In other words

to know the goodness of data which shown .81 , the threshold value is >.7, Nunnally (1990).

In the Table corrected Item-Total correlation is >.3 for all variables which is again meeting

the threshold value of .3.

*Table 4.8

Items

Corrected

Item-Total

Correlation

Cronbach's Alpha if Item

Deleted

Mentoring & Coaching

0.36 0.80

Help with career plan 0.35 0.80

Assistance in higher education

0.54 0.79

Financial support for education

0.44 0.80

Job rotation Relocation

0.34 0.80

Flexible work time 0.40 0.80

Work from home 0.45 0.80

Rewards & Recognition

0.50 0.80

Training & development opportunities

0.31 0.80

58

Stock investment opportunities

0.41 0.80

Benchmarking 0.44 0.80

Onsite opportunities 0.44 0.80

Antipoaching agreements

0.33 0.80

Contract agreements 0.30 0.81

Day care facility 0.40 0.80

Nominal Rental facilities

0.40 0.80

360 degree appraisal system

0.57 0.79

CHAPTER 5

FINDINGS, SUGGESTIONS,

CONCLUSION AND SCOPE.

59

CHAPTER 5

FINDINGS, SUGGESTIONS, CONCLUSION AND SCOPE.

FINDINGS FROM THE STUDY:

• There is a positive relation between employee retention

strategies and employee recommendation. This is drawn from

the basis of correlation analysis done [Table4.4].

• The impact or effectiveness of current employee retention

strategies is very low; we can justify this finding with the results

of correlation analysis done. This finding fulfills the first objective

of the study.

• From the regression model analyzed we can say that organization

culture has a positive impact and at the same time a high value

in the process of employee retention practice compared to other

elements. [Chart 4.8]

• Antipoaching agreements, which is one of the current practices of

most IT Firms, has a positive impact in employee retention

practice. Based on the factor analysis done.

60

• From the analysis done we can say non-monetary factors also

play a positive impact on employee retention. On the basis that

the non-monetary benefits have a positive value based on the

factor analysis. [Table 4.3]

• There is a positive relationship between personal satisfaction and

employee recommendation. We can say this on the basis of

correlation analysis. [Table 4.4]

• There is a positive relationship between benefits and employee

recommendation. This finding we support with the multiple

regression analysis. [Table 4.6]

• From the overall analysis of primary data we can state that the

demographic variable also plays an important role in employee.

Like it is tougher to retain an employee with a higher qualification

and experience than an employee at a graduation and entry

level. Another important element which effect the employee

retention is marital status.

SUGGESTIONS FROM THE STUDY

• Based on the primary data collected upon the retention strategy

the following suggestion can be raised. Like out of 200

respondents 61% is not offered with the option of work from

home, just 31% enjoy this option. If the organization put this into

more practice it will have a positive effect on employee retention,

at the same time it will be very beneficial for the organization as

well.

• Taking into consideration of stock investment opportunities only

35% has it and a majority of 65% dose not enjoys this option. The

61

organization can promote this practice which will help them to

build a personnel rapo with the employees.

• Taking into consideration the elements like nominal rental facility

and day care facility. It would help the organization in a good

manner. If the organization could support the employee in the

above mention element, like if there is a day care assistance

attrition rate among the female employees can be reduced to a

good level. From the study it was showing that only 32%

employees have this option rest 68% does not have this

opportunity.

• Considering the second part of the primary data tool ie benefits,

we can see seasonal benefit [Table 4.2] 73.5% is not offered this

benefit. If the organization take a step forward in this practice it

will help to create a sound bounding with the employees.

• From the secondary data ie reviews and articles we could see

that an employee – employer relationship is very important. It

plays very crucial role in employee retention. So the organization

should develop and put into practice programmes which help to

improve this area. At the same time the organization should have

clear communication process which will help to solve 90% of the

problems faced.

• Secondary data also reveals the importance recruitment process.

As it is said if the right person is hired for the position it will be

easy for their retention. So the organization should have strong

and apt recruitment process and at the same time it should be

well executed.

CONCLUSION

62

From the study done we can say that, the best way to improve employee

retention is to understand what the employees want and need from the

work place and provide it. Companies must meet employees demand

within limits of course. Management cannot approve all the demand is a

fact, but at the same time they can take efforts to convince the

employees.

Organization should also take efforts to bring most of the retention

policies into practice which will give a positive effect on the issue. Even

the employees should understand the limits of the organization and act

accordingly. If there is a better understanding between the two parties the

problem of employee retention is solved to a great extent. Both the

parties should be aware of the surroundings and current matters. Every

company should understand that people are their best commodity.

Without qualified people who are good at what they do, any company

would be in serious trouble. In the long run, the retention of existing

employees saves companies money. One way for a company to prevent

employees from giving valuable information to competitors is to make it a

policy to enforce strict noncompete and confidentiality agreements

amongst its employees. The existence of such agreements could in

fact deter a competitor from hiring a valuable employ because they might

not want to risk possible legal entanglements with the other company. Of

course, all this could possibly lead to animosity with the employee who

could feel that his or her options are being limited. Many employees don't

always remember signing such a document, so a copy of it should always

be kept on file for the employee to refer to. This area could prove to be a

highly sensitive one between employer and employee, so extreme caution

is suggested in all instances.

This work enables me to gain a practical explore along with my theoretical

knowledge. I am sure that it will help me to pursuer my future studies. As

further scope of study we can conduct similar study from the organization

point of view, so it will be able to give clearer picture on the issue of

employee retention.

63

BIBLIOGRAPHY

64

Books Referred:

• K. Aswathappa, Human Resource and Personnel Management,

Tata McGraw – Hill Publisher, Fourth Edition.

• C.R.Kothari, Research Methodology, Wishwa Prakasan Publishers,

2nd Edition

• Decento.D.David and Robins.P.Stephen, Personnel and Human

Resource Management, Fourth Edition.

Journals Referred:

• Chakraborty. S (2008) HRD News letter, Vol 24, issue 6, Sep 2008,

page no 34.

• Employee Voice and Employee Retention, Daniel G. Spencer Source:

The Academy of Management Journal, Vol. 29, No. 3 (Sep., 1986),

pp. 488-502 Published by: Academy of Management,

http://www.jstor.org/stable/256220

• Robert P. Steel, Rodger W. Griffeth, Peter W. Hom, Daniel M. Lyons

Practical Retention Policy for the Practical Manager, Source: The

Academy of Management Executive (1993), Vol. 16, No. 2, Theme:

Achieving Competitive Advantage (May, 2002), pp. 149-164

65

Published by: Academy of Management Stable ,

http://www.jstor.org/stable/4165849

• John E. Sheridan Organizational Culture and Employee Retention

Source: The Academy of Management Journal, Vol. 35, No. 5 (Dec.,

1992), pp. 1036-1056 Published by: Academy of Management ,

http://www.jstor.org/stable/256539

• Terence R. Mitchell, Brooks C. Holtom, Thomas W. Lee, Ted Graske

How to Keep Your Best Employees: Developing an Effective

Retention Policy Source: The Academy of Management Executive

(1993), Vol. 15, No. 4, Themes: Business Strategies and Employee

Development (Nov., 2001), pp. 96-109 Published by: Academy of

Management, http://www.jstor.org/stable/4165789

Websites Referred:

• http://www.advertisingglossary.net/definition/1121-

Employee_Retention

• http://definitions.uslegal.com/e/employee-retention/

• http://www.mnp.ca/04library/EmployeeRetention.php

• http://www.accel-team.com/human_resources/hrm_03.html

• http://www.managementhelp.org/hr_mgmnt/hr_mgmnt.htm

• http://www.iloveindia.com/economy-of-india/it-industry.html

• http://www.pacificbridge.com/publication.asp?id=111

• http://www.researchandmarkets.com/research/5ff034/recruiting

_

• http://retention.naukrihub.com/retention-myths.html

• http://retention.naukrihub.com/attrition-rates-in-different-

sectors.html

66

• http://humanresources.about.com/od/retention/Retention_of_Em

ployees_Tips_and_Tools_for_Employee_Retention.htm

• http://www.articlesbase.com/human-resources-

articles/employee-retention-995426.html

• http://www.citehr.com/115162-top-10-companies-india.html

67

ANNEXURE

Christ University Institute of ManagementBangalore – 560029

Dear Sir/Madam,

68

I Neenu Antony, pursuing M.Phil (Management) at Christ University is conducting a research on the topic “A study on employee retention practices and its effectiveness in IT sector”

I kindly request you to fill this questionnaire and help me to complete my study. All the information collected will be used only for the study.

Thank you for your cooperation.

Regards,Neenu AntonyResearch ScholarChrist University

Gender: Male Female Age: Below 30 years 31-40 years 41-50 years Above 51 years

Marital Status: Married Single Others

Qualification: Graduate Post Graduate Professional

Qualification

Others specify

Designation: …………………………………..

Years of experience with current organization: …………………

How many organizations you have worked for in the last 5 years: ………………………..

69

SECTION – A

STRATEGIES

Read the following listed strategies and tick if it is available or not. If it is available rate it on the scale 1 – 5. If it is not available also please rate it on the scale 1 – 5. Please do not omit any item.

Not at all important

Not very important

Neutral

Somewhat important

Very important

Sl.No

Available

1 2 3 4 5

Yes

No

1 Mentoring / Coaching

2 Help with career plan

3 Assistance in higher education

4 Financial support for education

5 Job rotation / Relocation

6 Flexible work time

7 Work from home

8 Rewards & recognition

9 Training & development opportunities

10

Stock investment opportunities

11

Annual performance appraisal /

70

Benchmarking

12

Onsite opportunities based on agreements

13

Anti poaching agreements

14

Contract agreement

15

Day care facility

16

Assistance / low budget / nominal rent accommodation facility

17

360 degree appraisal system

SECTION – B

BENEFITS

Read the following listed benefits and tick if it is available or not. If it is available rate it on the scale 1 – 5. If it is not available also please rate it on the scale 1 – 5. Please do not omit any item.

Not at all important

Not very important

Neutral

Somewhat important

Very important

Sl.No

Available

1 2 3 4 5

Yes

No

71

1 Salary / compensation

2 Leave benefits

3 Health / Insurance benefits

4 Retirement plan / PF

5 Seasonal / Festival benefits

6 Non monetary benefits such as team tours

7 Recreational benefits (gym / health club)

SECTION – C

PERSONAL SATISFACTION

Please rank on scale of 1-5. Please do not omit any item

Strongly disagree

Disagree

Neither agree nor disagree

Agree

Strongly agree

Sl.no

1 2 3 4 5

1 I have lot of freedom on the job to decide how to pursue my goal

2 I believe the prospects for continuing this employment with this company is excellent

3 I have high level of job security

4 I receive respect & fair treatment from my boss

72

Strongly disagree

Disagree

Neither agree nor disagree

Agree

Strongly agree

Sl.no

1 2 3 4 5

5 The amount of support, guidance & overall quality of supervisor relationship is sound

6 I get opportunity to learn new things from my organization

7 My promotion prospects are excellent

SECTION - D

ORGANIZATIONAL CULTURERank on scale 1-5. Please do not omit any item

Strongly disagree

Disagree

Neither agree nor disagree

Agree

Strongly agree

Sl 1 2 3 4 5

73

.no

1 Organization recognize talent & promote it

2 Organization follow social culture & values

3 Employee opinions are valued

4 Employees have great trust in the organization

5 There is delegation of work & authority

6 There is a good communication channel (formal / informal)

7 Regular performance appraisal takes place

8 Good work is always appreciated & rewarded

9 Employees are free to come up with new ideas & projects are encouraged

10

All employees are given equal growth opportunities

11

Would recommend the organization for anyone to work for

12

I believe in the vision & mission of the organization

13

I believe in the value base system of the organization

Thank You

POILT STUDY RESULTS

Section A

****** Method 2 (covariance matrix) will be used for this analysis ******

R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)

1. V1 2. V2 3. V3 4. V4

74

5. V5 6. V6 7. V7 8. V8 9. V9 10. V10 11. V11 12. V12 13. V13 14. V14 15. V15 16. V16 17. V17 18. V18 19. V19 20. V20 21. V21 22. V22 23. V23 24. V24 25. V25 26. V26 27. V27 28. V28 29. V29 30. V30 31. V31 32. V32 33. V33 34. V34

75

R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)

N of Cases = 49.0

Item Means Mean Minimum Maximum Range Max/Min Variance 2.6020 1.1429 4.5918 3.4490 4.0179 1.5742

Item Variances Mean Minimum Maximum Range Max/Min Variance .5843 .1250 1.4787 1.3537 11.8299 .1730

Inter-itemCovariances Mean Minimum Maximum Range Max/Min Variance .0633 -.2628 .5723 .8350 -2.1780 .0134

Inter-itemCorrelations Mean Minimum Maximum Range Max/Min Variance .1234 -.4953 .8062 1.3015 -1.6279 .0352

Reliability Coefficients 34 items

Alpha = .8051 Standardized item alpha = .8272

76

Section: B

****** Method 2 (covariance matrix) will be used for this analysis ******

R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)

1. V2 2. V3 3. V4 4. V5 5. V6 6. V7 7. V8 8. V9 9. V10 10. V11 11. V12 12. V13 13. V14 14. V1

* * * V1 has zero variance

N of Cases = 49.0

Item Means Mean Minimum Maximum Range Max/Min Variance 2.8917 1.1020 4.6735 3.5714 4.2407 2.2278

Item Variances Mean Minimum Maximum Range Max/Min Variance .5313 .0935 1.0638 .9702 11.3727 .1337

Inter-itemCovariances Mean Minimum Maximum Range Max/Min Variance .0759 -.2164 .7241 .9405 -3.3458 .0377

Inter-itemCorrelations Mean Minimum Maximum Range Max/Min Variance .0996 -.4175 .7359 1.1534 -1.7626 .0876

77

Reliability Coefficients 13 items

Alpha = .7842 Standardized item alpha = .8198

78

Section: C

****** Method 2 (covariance matrix) will be used for this analysis ******

R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)

Covariance Matrix

V1 V2 V3 V4 V5

V1 .7466V2 .4588 1.0442V3 .3741 .4741 1.1769V4 .2997 .5485 .4447 1.0459V5 .2696 .5132 .1820 .7713 .9813V6 .2224 .3759 .3525 .4537 .2058V7 .3023 .4804 .2683 .3992 .3295

V6 V7

V6 .9864V7 .4796 1.0944

Correlation Matrix

V1 V2 V3 V4 V5

V1 1.0000V2 .5196 1.0000V3 .3992 .4276 1.0000V4 .3392 .5248 .4008 1.0000V5 .3149 .5070 .1693 .7613 1.0000V6 .2591 .3703 .3271 .4466 .2092V7 .3344 .4494 .2364 .3732 .3180

V6 V7

V6 1.0000V7 .4616 1.0000

79

80

R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)

N of Cases = 49.0

Item Means Mean Minimum Maximum Range Max/Min Variance 3.4548 3.1020 3.8163 .7143 1.2303 .0592

Item Variances Mean Minimum Maximum Range Max/Min Variance 1.0108 .7466 1.1769 .4303 1.5763 .0180

Inter-itemCovariances Mean Minimum Maximum Range Max/Min Variance .3907 .1820 .7713 .5893 4.2383 .0184

Inter-itemCorrelations Mean Minimum Maximum Range Max/Min Variance .3881 .1693 .7613 .5920 4.4958 .0167

Reliability Coefficients 7 items

Alpha = .8152 Standardized item alpha = .8161

81

82

Section: D

****** Method 2 (covariance matrix) will be used for this analysis ******

R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)

N of Cases = 49.0

Item Means Mean Minimum Maximum Range Max/Min Variance 3.5055 3.0204 3.9184 .8980 1.2973 .0585

Item Variances Mean Minimum Maximum Range Max/Min Variance .7353 .3682 1.1412 .7730 3.0993 .0428

Inter-itemCovariances Mean Minimum Maximum Range Max/Min Variance .2622 -.0893 .6918 .7810 -7.7476 .0254

Inter-itemCorrelations Mean Minimum Maximum Range Max/Min Variance .3553 -.1161 .9174 1.0336 -7.9006 .0341

Reliability Coefficients 13 items

Alpha = .8781 Standardized item alpha = .8775

83

WORKING NOTES ON STATISTICAL TOOLS USED

q1.Gender

Frequency Percent PercentCumulative

Percent

Male 94 47.0 47.0 47.0

Female 106 53.0 53.0 100.0

Total 200 100.0 100.0

q2.Age

Frequency Percent PercentCumulative

Percent

< 30 years 148 74.0 74.0 74.0

31-40 years 42 21.0 21.0 95.0

41-50 years 10 5.0 5.0 100.0

Total 200 100.0 100.0

q3.MaritalStatus

Frequency Percent PercentCumulative

Percent

Married 83 41.5 41.5 41.5

Unmarried 117 58.5 58.5 100.0

Total 200 100.0 100.0

q4.Qualification

Frequency Percent PercentCumulative

Percent

Graduate 63 31.5 31.5 31.5

Post Graduate 95 47.5 47.5 79.0

Professional 42 21.0 21.0 100.0

Total 200 100.0 100.0

q5.Designation

Frequency Percent PercentCumulative

Percent

Associate/Executives 49 24.5 24.5 24.5

84

Hr Executive 57 28.5 28.5 53.0

Asst. Mgr / TL 29 14.5 14.5 67.5

Sr. Exe/Assoc 41 20.5 20.5 88.0

Others 24 12.0 12.0 100.0

Total 200 100.0 100.0

q6.Experience in Current Position

Frequency Percent PercentCumulative

Percent

Less than 1 year 81 40.5 40.5 40.5

1 to 3 years 72 36.0 36.0 76.5

More than 3 years 47 23.5 23.5 100.0

Total 200 100.0 100.0

q7.Howmanyorganizationsyouhaveworkedforinthelast5years

Frequency Percent PercentCumulative

Percent

0 14 7.0 7.0 7.0

1 71 35.5 35.5 42.5

2 86 43.0 43.0 85.5

3 23 11.5 11.5 97.0

4 6 3.0 3.0 100.0

Total 200 100.0 100.0

85

Count Column N %

A1.MentoringampCoaching Available 163 81.5%

Not Available 37 18.5%

Total 200 100.0%

A2.Helpwitcareerplan Available 132 66.0%

Not Available 68 34.0%

Total 200 100.0%

A3.Assistanceinhighereducation

Available 95 47.5%

Not Available 105 52.5%

Total 200 100.0%

A4.Financialsupportforeducation

Available 69 34.5%

Not Available 131 65.5%

Total 200 100.0%

A5.JobrotationRelocation Available 166 83.0%

Not Available 34 17.0%

Total 200 100.0%

A6.Flexibleworktime Available 125 62.5%

Not Available 75 37.5%

Total 200 100.0%

A7.Workfromhome Available 78 39.0%

Not Available 122 61.0%

Total 200 100.0%

A8.RewardsampRecognition

Available 167 83.5%

Not Available 33 16.5%

Total 200 100.0%

A9.Trainingampdevelopmentopportunities

Available 173 86.5%

Not Available 27 13.5%

Total 200 100.0%

A10.Stockinvestmentopportunities

Available 70 35.0%

Not Available 130 65.0%

Total 200 100.0%

A11.AnnualperformanceappraisalBenchmarking

Available 164 82.0%

Not Available 36 18.0%

Total 200 100.0%

A12.Onsiteopportunitiesbasedonagreements

Available 105 52.5%

Not Available 95 47.5%

Total 200 100.0%

86

A13.Antipoachingagreements

Available 70 35.0%

Not Available 130 65.0%

Total 200 100.0%

A14.Contractagreements Available 139 69.5%

Not Available 61 30.5%

Total 200 100.0%

A15.Daycarefacility Available 64 32.0%

Not Available 136 68.0%

Total 200 100.0%

A16.AssistanceLowbudgetNomonalrentaccommodationfacility

Available 69 34.5%

Not Available 131 65.5%

Total 200 100.0%

A17.360degreeappraisalsystem

Available 94 47.0%

Not Available 106 53.0%

Total 200 100.0%

B1.SalaryCompensation Available 200 100.0%

Not Available 0 .0%

Total 200 100.0%

B2.Leavebenefits Available 153 76.5%

Not Available 47 23.5%

Total 200 100.0%

B3.HealthInsurancebenefits Available 160 80.0%

Not Available 40 20.0%

Total 200 100.0%

B4.RetirementplanPF Available 169 84.5%

Not Available 31 15.5%

Total 200 100.0%

B5.SeasonalFestivalbenefits

Available 53 26.5%

Not Available 147 73.5%

Total 200 100.0%

B6.Nonmonetarybenefitssuchasteamtours

Available 122 61.0%

Not Available 78 39.0%

Total 200 100.0%

B7.Recreationalbenefitsgymhealthclub

Available 146 73.0%

Not Available 54 27.0%

Total 200 100.0%

87

Correlations

q73.Wouldrecommendtheorganizationforanyonetoworkfor

Pearson Correlation Sig. (1-tailed) N

fac1Avg .167(**) .009 200

fac2Avg .132(*) .031 200

fac3Avg .038 .298 200

fac4Avg .064 .183 200

fac5Avg .038 .297 200

fac6Avg .141(*) .023 200

Benefits .126(*) .038 200

Personal Satisfaction .427(**) .000 200

Retention Strategy .146(*) .019 200

Org. Culture .670(**) .000 200

** Correlation is significant at the 0.01 level (1-tailed).* Correlation is significant at the 0.05 level (1-tailed).

Variables Entered/Removed(b)

ModelVariables Entered

Variables Removed Method

1 Personal Satisfaction(a)

. Enter

a All requested variables entered.b Dependent Variable: q73.Wouldrecommendtheorganizationforanyonetoworkfor

Model Summary

Model R R SquareAdjusted R

SquareStd. Error of the Estimate

1 .427(a) .182 .178 .908

88

a Predictors: (Constant), Personal Satisfaction

ANOVA(b)

Model Sum of

Squares df Mean Square F Sig.

1 Regression 36.290 1 36.290 44.064 .000(a)

Residual 163.065 198 .824

Total 199.355 199

a Predictors: (Constant), Personal Satisfactionb Dependent Variable: q73.Wouldrecommendtheorganizationforanyonetoworkfor

Coefficients(a)

Model

Unstandardized Coefficients

Standardized Coefficients t Sig.

B Std. Error Beta B Std. Error

1 (Constant) 1.199 .336 3.574 .000

Personal Satisfaction .614 .092 .427 6.638 .000

a Dependent Variable: q73.Wouldrecommendtheorganizationforanyonetoworkfor

Variables Entered/Removed(b)

ModelVariables Entered

Variables Removed Method

1 Org. Culture(a)

. Enter

a All requested variables entered.b Dependent Variable: Personal Satisfaction

Model Summary

Model R R SquareAdjusted R

SquareStd. Error of the Estimate

1 .601(a) .362 .358 .55716

a Predictors: (Constant), Org. Culture

ANOVA(b)

Model Sum of

Squares df Mean Square F Sig.

1 Regression 34.819 1 34.819 112.167 .000(a)

Residual 61.464 198 .310

89

Total 96.283 199

a Predictors: (Constant), Org. Cultureb Dependent Variable: Personal Satisfaction

Coefficients(a)

Model

Unstandardized Coefficients

Standardized Coefficients t Sig.

B Std. Error Beta B Std. Error

1 (Constant) .839 .260 3.229 .001

Org. Culture .768 .073 .601 10.591 .000

a Dependent Variable: Personal Satisfaction

Variables Entered/Removed(b)

ModelVariables Entered

Variables Removed Method

1 Org. Culture(a)

. Enter

a All requested variables entered.b Dependent Variable: q73.Wouldrecommendtheorganizationforanyonetoworkfor

Model Summary

Model R R SquareAdjusted R

SquareStd. Error of the Estimate

1 .670(a) .449 .446 .745

a Predictors: (Constant), Org. Culture

ANOVA(b)

Model Sum of

Squares df Mean Square F Sig.

1 Regression 89.549 1 89.549 161.474 .000(a)

Residual 109.806 198 .555

Total 199.355 199

a Predictors: (Constant), Org. Cultureb Dependent Variable: q73.Wouldrecommendtheorganizationforanyonetoworkfor

Coefficients(a)

90

Model

Unstandardized Coefficients

Standardized Coefficients t Sig.

B Std. Error Beta B Std. Error

1 (Constant) -.979 .347 -2.818 .005

Org. Culture 1.232 .097 .670 12.707 .000

a Dependent Variable: q73.Wouldrecommendtheorganizationforanyonetoworkfor

Variables Entered/Removed(b)

ModelVariables Entered

Variables Removed Method

1 Retention Strategy(a)

. Enter

a All requested variables entered.b Dependent Variable: Personal Satisfaction

Model Summary

Model R R SquareAdjusted R

SquareStd. Error of the Estimate

1 .139(a) .019 .014 .69061

a Predictors: (Constant), Retention Strategy

ANOVA(b)

Model Sum of

Squares df Mean Square F Sig.

1 Regression 1.848 1 1.848 3.874 .050(a)

Residual 94.435 198 .477

Total 96.283 199

a Predictors: (Constant), Retention Strategyb Dependent Variable: Personal Satisfaction

Coefficients(a)

Model

Unstandardized Coefficients

Standardized Coefficients t Sig.

B Std. Error Beta B Std. Error

1 (Constant) 2.831 .374 7.572 .000

Retention Strategy .194 .099 .139 1.968 .050

91

a Dependent Variable: Personal Satisfaction

Variables Entered/Removed(b)

ModelVariables Entered

Variables Removed Method

1 q73.Wouldrecommendtheorganizationforanyonetoworkfor(a)

. Enter

a All requested variables entered.b Dependent Variable: Retention Strategy

Model Summary

Model R R SquareAdjusted R

SquareStd. Error of the Estimate

1 .146(a) .021 .016 .49230

a Predictors: (Constant), q73.Wouldrecommendtheorganizationforanyonetoworkfor

ANOVA(b)

Model Sum of

Squares df Mean Square F Sig.

1 Regression 1.047 1 1.047 4.320 .039(a)

Residual 47.987 198 .242

Total 49.034 199

a Predictors: (Constant), q73.Wouldrecommendtheorganizationforanyonetoworkforb Dependent Variable: Retention Strategy

Coefficients(a)

Model

Unstandardized Coefficients

Standardized Coefficients t Sig.

B Std. Error Beta B Std. Error

1 (Constant) 3.513 .123 28.551 .000

q73.Wouldrecommendtheorganizationforanyonetoworkfor .072 .035 .146 2.079 .039

a Dependent Variable: Retention Strategy

92

Variables Entered/Removed(b)

ModelVariables Entered

Variables Removed Method

1 q73.Wouldrecommendtheorganizationforanyonetoworkfor(a)

. Enter

a All requested variables entered.b Dependent Variable: Personal Satisfaction

Model Summary

Model R R SquareAdjusted R

SquareStd. Error of the Estimate

1 .427(a) .182 .178 .63068

a Predictors: (Constant), q73.Wouldrecommendtheorganizationforanyonetoworkfor

ANOVA(b)

Model Sum of

Squares df Mean Square F Sig.

1 Regression 17.527 1 17.527 44.064 .000(a)

Residual 78.756 198 .398

Total 96.283 199

a Predictors: (Constant), q73.Wouldrecommendtheorganizationforanyonetoworkforb Dependent Variable: Personal Satisfaction

Coefficients(a)

Model

Unstandardized Coefficients

Standardized Coefficients T Sig.

B Std. Error Beta B Std. Error

1 (Constant) 2.557 .158 16.221 .000

93

q73.Wouldrecommendtheorganizationforanyonetoworkfor .297 .045 .427 6.638 .000

a Dependent Variable: Personal Satisfaction

ANOVA

Sum of

Squares df Mean Square F Sig.

Benefits Between Groups .155 2 .078 .256 .775

Within Groups 59.747 197 .303

Total 59.902 199

Personal Satisfaction Between Groups .505 2 .252 .519 .596

Within Groups 95.779 197 .486

Total 96.283 199

Retention Strategy Between Groups .147 2 .074 .297 .743

Within Groups 48.887 197 .248

Total 49.034 199

Org. Culture Between Groups .261 2 .131 .438 .646

Within Groups 58.752 197 .298

Total 59.014 199

q73.Wouldrecommendtheorganizationforanyonetoworkfor

Between Groups 1.209 2 .604 .601 .549

Within Groups 198.146 197 1.006

Total 199.355 199

Case Processing Summary

N %

Cases 200 100.0

Excluded(a)

0 .0

Total 200 100.0

a Listwise deletion based on all variables in the procedure.

Reliability Statistics

Cronbach's Alpha N of Items

.809 17

Item-Total Statistics

Scale Mean if Item Deleted

Scale Variance if

Item Deleted

Corrected Item-Total Correlation

Cronbach's Alpha if Item

Deleted

94

A1.1_MentoringampCoaching

60.02 64.788 .261 .808

A2.1_Helpwitcareerplan 60.15 64.239 .347 .803

A3.1_Assistanceinhighereducation 60.59 60.343 .536 .791

A4.1_Financialsupportforeducation 60.45 61.405 .440 .797

A5.1_JobrotationRelocation60.20 63.963 .338 .803

A6.1_Flexibleworktime 60.15 62.282 .401 .799

A7.1_Workfromhome 60.43 60.408 .449 .796

A8.1_RewardsampRecognition 59.65 63.455 .499 .796

A9.1_Trainingampdevelopmentopportunities 59.79 64.646 .311 .805

A10.1_Stockinvestmentopportunities 61.09 61.530 .406 .799

A11.1_AnnualperformanceappraisalBenchmarking 59.79 62.676 .443 .797

A12.1_Onsiteopportunitiesbasedonagreements 60.47 61.597 .441 .797

A13.1_Antipoachingagreements 61.35 62.522 .332 .805

A14.1_Contractagreements61.24 62.980 .298 .807

A15.1_Daycarefacility 60.96 61.471 .403 .799

A16.1_AssistanceLowbudgetNomonalrentaccommodationfacility 60.82 62.376 .398 .800

A17.1_360degreeappraisalsystem 60.15 60.443 .571 .789

Scale Statistics

Mean Variance Std. Deviation N of Items

64.21 69.634 8.345 17

Communalities

Initial Extraction

A1.1_MentoringampCoaching

1.000 .555

A2.1_Helpwitcareerplan 1.000 .794

95

A3.1_Assistanceinhighereducation 1.000 .713

A4.1_Financialsupportforeducation 1.000 .797

A5.1_JobrotationRelocation1.000 .645

A6.1_Flexibleworktime 1.000 .756

A7.1_Workfromhome 1.000 .580

A8.1_RewardsampRecognition 1.000 .749

A9.1_Trainingampdevelopmentopportunities 1.000 .719

A10.1_Stockinvestmentopportunities 1.000 .556

A11.1_AnnualperformanceappraisalBenchmarking 1.000 .671

A12.1_Onsiteopportunitiesbasedonagreements 1.000 .680

A13.1_Antipoachingagreements 1.000 .803

A14.1_Contractagreements1.000 .678

A15.1_Daycarefacility 1.000 .727

A16.1_AssistanceLowbudgetNomonalrentaccommodationfacility 1.000 .768

A17.1_360degreeappraisalsystem 1.000 .655

Extraction Method: Principal Component Analysis.

Rotated Component Matrix(a)

Component

1 2 3 4 5 6

A9.1_Trainingampdevelopmentopportunities .810

A8.1_RewardsampRecognition .794

96

A11.1_AnnualperformanceappraisalBenchmarking .689

A12.1_Onsiteopportunitiesbasedonagreements .637

A4.1_Financialsupportforeducation .871

A3.1_Assistanceinhighereducation .751

A10.1_Stockinvestmentopportunities .526

A5.1_JobrotationRelocation .462

A15.1_Daycarefacility .779

A16.1_AssistanceLowbudgetNomonalrentaccommodationfacility .679

A6.1_Flexibleworktime .843

A7.1_Workfromhome .685

A13.1_Antipoachingagreements .886

A14.1_Contractagreements .657

A17.1_360degreeappraisalsystem .458 .463

A1.1_MentoringampCoaching .682

A2.1_Helpwitcareerplan .604 .640

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.a Rotation converged in 7 iterations.

97