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Abstract
Employee Turnover is a major challenge faced by the companies globally. This study has focused on IT sector. Employees are the assets of any organization and organization can not afford losing its key performers. Organizations are striving to retain their talents by implementing effective retention strategies. High Employee Turnover would subsequently have an impact on productivity and sustainability of the organization. This study is an attempt to understand the impact of Retention Strategies on Employee Turnover in IT sector in India. Bangalore, being the IT hub of India, was chosen as the location of the study. Other variables such as Welfare Benefits, Personal Satisfaction and Organizational Culture, which are said to be associated with the Employee Turnover, were also investigated as a part of this study. Intention to stay is the proxy variable which explains the employee turnover in this study. Previous research conducted by various scholars has shown that employee's intention to stay/leave determines the actual turnover.
Key words:
Employee Turnover, Employee Retention Strategies, Personal Satisfaction, Organizational Culture, Welfare Benefits, Intention to stay.
Employee turnover is a common phenomenon which many organizations are facing today. Organizations invest immensely in recruiting and developing their employees. Hence employee turnover is a potential loss for any firm. HR managers try to prevent the employee turnover by implementing effective retention strategies. Employee turnover is a common issue in Indian IT sector, though the trend has been reduced for the interim due to the recession. Still the issue becomes perpetual once the economy becomes stable.
People leave the organization due to various reasons. The experience of job related stress (job stress), the range factors that lead to job related stress (stressors), lack of commitment in the organization; and job dissatisfaction make employees to quit (Firth, Mellor, Moore, Loquet (2007). Employee can be dissatisfied with the organization due to many reasons. Personal dissatisfaction itself is a major reason for an employee to leave the firm. This dissatisfaction can arise from various factors such as compensation, job security, job autonomy, relationship with the supervisor and other colleagues etc.
Turnover intentions can arise from organizational factors as well. Organizational culture itself can be motivating or de-motivating to many employees. Some organizational cultures can be inspiring to their employees and...