employee retention strategies in it sector- with …journalstd.com/gallery/88-dec2019.pdfcompanies...

Employee retention strategies in IT sector- with special reference to

S&V Pvt. Ltd

Dr. Vaishali Rahate, Datta Meghe Institute of Management Studies, Mrunali Hadke

(Student), Vishal Kumar Prakash -Consultant- Data Management, S&V

Abstract:

Employee Retention is one of the major challenges faced by IT companies in India. As

employees are the key assets for any organization , they try to adopt many strategies to hold

down the attrition rate. Thus a holistic approach is necessary to understand the factors

controlling employee turnover in IT Industries by the HR Managers.

The present study intend to examine the reasons for employees leaving the Organization,

factors which makes them stay back, their approach towards work, work relationships and

their expectations from the Organization . The study was conducted in S&V company. Factor

analysis was done to extract the important factors affecting retention of employees. It was

found that Quality of Work Life and Job Flexibility and Security factor plays important role

in retention strategies for employee’s intention to stay at the organization.

1. INTRODUCTION:

Employee Retention in IT Industry:

The IT industry has always been in forefront for revenue and employment generation.

Because of high profits and rewarding market size, lot of small and big companies have

entered into this market, and therefore a major chunk of young people are taking their careers

into IT sector. Along with the major players in IT sector like Infosys, TCS, Wipro, there is a

huge number of medium and small scale IT industries in India. As there are many IT

Industries, employees have an option of switching over their jobs very frequently. Today’s

new generation Employees are not only looking for a decent pay package but need attractive

working environment , challenging tasks, support for higher studies and perks to motivate

them. The moment they feel that their expectations are not met, they start searching for a new

job. Usually the employees leave job prominently because of the Skills mismatch with the job

profile, stress & workload , Work life imbalance and above all, the pay package.. The

drawbacks of employee attrition are Cost of turnover (including hiring costs, training costs

Science, Technology and Development

Volume VIII Issue XII DECEMBER 2019

ISSN : 0950-0707

Page No : 795

and productivity loss), Loss of company’s knowledge (knowledge about the company,

customers, current projects and past history), Interruption of customer service, Turnover leads

to more turnovers, Goodwill of the company.

In such a scenario, organizations face a lot of difficulty, as a high turnover rate may hamper

productivity. To avoid such state, organization have to adapt retention strategies to make

employees continue for satisfactory period in which the employee is able to contribute ,

execute, achieve and perform. The primary concern is which strategies should be adopted,

which works well with all the employees. Every individual is different and is motivated by

different job and personal factors. Keeping abreast the above mentioned facts, this research

paper follows a line of exploration on the key retention strategies which can work well for all

employees of IT Sector.

2. LITERATURE REVIEW

SR.

NO. TITLE AUTHOR DATE FINDINGS

1.

Employee Retention-

A Real Time

Challenges in Indian

IT Sector

Manju

Dhillon

August

2017

This paper concludes that companies

felt the importance of retention

strategies and accepted that without it

they won’t be able to survive in

competitive market. Some benefits like

lucrative salary, flexible timing, better

work environment and better career

growth helps in retention.

2.

Emerging Employee

Retention Strategies

in IT Industry

Rashmi

Badjatya

Rawat

April

2013

The reasons, employees leave the

organization is very different from the

reasons because of which they stay in

the organization. It is very much like the

Herzberg’s two factor hygiene theory.

The hygiene factors are the one without

which the employee will leave the

organization such as salary. But the

motivating factors are one which will

actually pursue them to stay in the



ISSN : 0950-0707

Page No : 796

organization like Recognition and Work

Life balance.

3. Employee Retention

in IT Industry

Alena

Rohava

Novemb

er 2017

The focal point of the research was the

correlation between the employee job

satisfaction factors and the level of

turnover intentions. It was decided to

conduct the questionnaire, utilizing the

Job Satisfaction Survey, developed by

64 Paul Spector, and modified by

adding several items, related directly to

the turnover intentions in order to define

the possible correlations between these

factors.

4. Employee Retention

Strategies: IT Industry

Leena James

&Lissy

Mathew

Septemb

er 2012

Authors mentioned that turnover rates

of 25 percent-35 percent had been

reported in Fortune 500 companies over

the past five years, while a supply-

demand gap in the IT labour market

conceivably exacerbates the IT-

retention problem.

5. Retaining Employees

in Indian It Sector

Dr.Satpal&

Manju

Dhillon

March

2016

This study brings out that work

environment, family problems,

compensation, relation with superiors

are the prominent factors that may be

considered while planning a job change

by an IT professional. Every company

wants to retain its employees but when

they get trained have tendency to move

to other organization for better

prospects.

6.

A Study On Employee

Retention Strategies in

Leading IT

Dr. G.

Balamurugan

& R.Abinaya

March

2016

In this study it is understood that, there

are three retention variables which

influences most for retaining employees



ISSN : 0950-0707

Page No : 797

Companies At Trichy are Career advancement and

opportunities, Superior support, Work

environment and the remaining two

retention variables such as Work

pressure, Rewards and recognition are

least influencing for employee retention

in IT companies.

7.

Employee Retention

Strategies in Indian

Software Industry

G Ajay

Kumar &Dr.

M. Srinivasa

Reddy

March

2016

In the study, six employee retention

strategies were identified as

Management/ Organisational Strategies,

Orientation Strategies, Communication

Effectiveness Strategies, Reward and

Recognition Strategies, Employee

Benefit Strategies and Employees Ideas

and Suggestion Strategies.

8.

A Study On Employee

Retention Factors

Influencing IT

Professionals Of

Indian IT Companies

And Multinational

Companies In India

Minu

Zachariah

Novemb

er 2012

There are no significant differences in

responses between IT professionals of

Indian and Multinational Companies in

India, with respect to most of the

demographic variables like age, gender,

educational qualification, income, total

experience in previous organization and

number of jobs changed. However,

there was significant difference in

responses between the two groups with

respect to experience in the current

Organization, current position in the

Organization and training programs

undergone.

9.

Critical Factors

Affecting Retention:

Case of the Indian IT

Industry

Pooja

Wadhwa

&Saroj Koul

January

2012

There are two strategies that are most

useful. Firstly, to provide salary hikes in

accordance with industrial standards.

Secondly, to recruit those only who has



ISSN : 0950-0707

Page No : 798

long-term orientation towards the

organization or those who will stay in

company for longer time period. This

paper identifies that factors related to

compensation issues have the highest

effect on attrition.

10.

The Effect of Training

on Employee

Retention

Waleed

Hassan, Amir

Razi, Rida

Qamar,

RidaJaffir&

Sidra Suhail

Decembe

r 2013

Most professionals, both men and

women want to have job training. It was

discovered that job training is necessary

for every employee. For the better

encouragement and loyalty of

employees, organizations should induce

reward giving phenomena. In this way,

employees are provided with an

environment where they are able to

embrace career growth and professional

skill’s development.

3. Company Profile:

Founded in 2008, S&V is an IT services company with expertise in data related services.

The company has developed a gamut of services to help our clients take the next step. Our

exemplary track-record of implementing open-source Odoo ERP has earned us the badge of

‘Odoo Ready partners’. While our spectrum of data services, mapped to SAP at its core, has

made us the official partner of SAP for the Middle-East region.

S&V is expert in all data related services and management solutions.

4. Research Methodology

The research design is a basic research and it is a field survey through self-administered

questionnaires.



ISSN : 0950-0707

Page No : 799

4.1 Objective Of the Study

The main Objective of the study is to examine the factors influencing the retention of IT

professionals in S & V.

1. To study the various factors that influences employee retention at S & V.

2. To explore the influence of the following determinants on employee retention:

a. Career opportunities

b. Salary Increment

c. Reward & Recognition

d. Work life balance

4.2 DATA COLLECTION

Data collection was done through both primary and secondary source.

(A) Primary source:

Questionnaire

The questionnaire framed for the research study is a structured questionnaire in which all the

questions are predetermined before conducting the survey. The questionnaire for the research

was framed in a clear manner such that it enables the respondents to understand and answer

the question easily.

(B) Secondary source:

Websites

Books



ISSN : 0950-0707

Page No : 800

4.3 SAMPLE SIZE

Sample size was limited to 80 employees.

4.4 DATA ANALYSIS AND INTERPRETATION

From the above pie-chart, we can observe that 88% of employees at S & V believes’ that

Rewards and recognition are important factor to continue with the organisation.

Interpretation:

Rewards and recognition under retention strategies have significant impact on intention to

stay.

0%2%

0%

10%

88%

Rewards and Recognition

Very Unimportant

Unimportant

Neutral

Very Important

Important



ISSN : 0950-0707

Page No : 801

To find out various factors for Retention

KMO and Bartlett's Test

Kaiser-Meyer-Olkin 0 Sampling Adequacy.

.745

Bartlett's Test of Sphericity

Approx. Chi-

Square

665.871

Df

180

Sig.

.000

The Kaiser-Meyer-Olkin test indicates that the data is suitable for factor analysis (KMO =

0.745 which is close to 1) and Barlett’s test shows there are significant relationships

between the variables (Sig. = 0.000 < 0.05). A factor analysis was conducted to determine if

there were any underlying dimensions in a questionnaire.

Rotated Component Matrix:

Another important aspect that needs mention is the Rotated Component Matrix. While

deciding how many factors one would analyse is whether a variable might relate to more

than one factor. Rotation maximizes high item loadings and minimizes low item loadings,

thereby producing a more interpretable and simplified solution. There are two common

rotation techniques - orthogonal rotation and oblique rotation. While orthogonal varimax

rotation that produces factor structures that are uncorrelated, oblique rotation produces

factors that are correlated. Irrespective of the rotation method used, the primary objectives

are to provide easier interpretation of results, and produce a solution that is more

parsimonious.



ISSN : 0950-0707

Page No : 802

Rotated Component Matrix

Factors Component

1 2 3 4 5 6 7

Social Support .032 -.206 -.097 .111 -.037 .892 .170

Supervisor Support .263 .817 -.026 .087 -.007 -.192 -.158

Stress At Job -.380 .315 .374 .364 -.242 .606 .037

Role Ambiguity .388 .038 .120 -.235 -.045 .879 .174

Role Conflict .205 .110 -.307 -.012 .088 .531 .728

Work Load -.631 -.179 .505 -.279 -.571 -.058 .863

Leave Benefits .581 -.230 .266 -.538 -.361 .221 .085

Health And Related

Benefits .649 .023 -.152 .483 .057 -.343 .200

Retirement Plan -.504 -.099 .055 -.124 .593 .217 .670

Opportunities For

Personal Growth . 830 -.127 -.086 . 148 .788 .006 .317

Job Security -.151 .873 -.307 -.019 -.010 -.083 .052

Fair Pay .207 .096 -.502 .776 -.022 .082 -.373

Promotion

Prospectus -.063 .066 .273 -.016 .826 -.003 .132

Equal Growth

Opportunities .099 .018 .250 .795 .150 .332 .173

Rewards And

Recognition .863 -.127 -.200 -.169 .046 .103 .000

Training And

Development

Opportunities

-.106 .223 .852 -.672 .077 .006 -.043

Mentoring/Coaching

Sessions .110 -.499 .076 .173 .604 -.241 -.381

Flexible Work Time .043 -.065 .185 .278 -.126 .009 .768

Employees

Suggestion Plans -.140 .192 .215 -.182 .765 -.071 -.175



ISSN : 0950-0707

Page No : 803

Annual Performance

Appraisal -.337 .723 .302 -.210 .072 .001 -.091



ISSN : 0950-0707

Page No : 804

From Table, .it is evident that the 7 factors extracted explain 82.144% of the total variance.

Total Variance Explained

Compon

ent

Initial Eigenvalues Extraction Sums of Squared

Loadings

Rotation Sums of Squared

Loadings

Total % of

Variance

Cumulat

ive % Total

% of

Variance

Cumulat

ive % Total

% of

Variance

Cumulati

ve %

1 4.589 21.852 21.852 4.589 21.852 21.852 3.491 16.622 16.622

2 3.130 14.906 36.758 3.130 14.906 36.758 2.795 13.308 29.930

3 2.458 11.704 48.462 2.458 11.704 48.462 2.523 12.015 41.945

4 2.307 10.985 59.446 2.307 10.985 59.446 2.284 10.877 52.822

5 1.886 8.983 68.429 1.886 8.983 68.429 2.266 10.790 63.612

6 1.725 8.215 76.644 1.725 8.215 76.644 1.955 9.308 72.920

7 1.155 5.500 82.144 1.155 5.500 82.144 1.937 9.224 82.144

8 .985 4.689 86.833

9 .570 2.716 89.549

10 .535 2.550 92.098

11 .450 2.141 94.239

12 .311 1.479 95.718

13 .283 1.347 97.064

14 .200 .952 98.016

15 .158 .755 98.771

16 .123 .584 99.354

17 .069 .328 99.683

18 .036 .171 99.854

19 .016 .077 99.931

20 .012 .058 99.988

21 .002 .012 100.000

Extraction Method: Principal Component Analysis.



ISSN : 0950-0707

Page No : 805

The variables with the highest loadings on a factor, define the factor as highlighted in Table.

By referring to the content of these variables it is possible to determine the underlying

factors-

1. Benefits and Rewards

2. Organizational Culture and System

3. Training and Development

4. Compensation

5. Career Growth

6. Quality of Work Life

7. Job Flexibility and Security

Factors Variables addressed New factor

Explained

Variance

(%)

1

Leave Benefits, Health And Related,

Opportunity Awards And

Recognition

Benefits and Rewards

16.622

2

Supervisor Support, Job Security,

Annual Performance Appraisal

Organizational Culture and

System

29.930

3

Training And Development

Opportunities Training and Development

41.945

4 Fair Pay, Equal Growth Compensation 52.822

5

Promotion Prospectus,

Mentoring/Coaching, Employee

Suggestion Plans

Career Growth 63.612

6 Social Support, Stress At Job, Role Of

Ambiguity Quality of Work Life 72.920

7 Role Of Conflict, Work Load,

Retirement Plan, Flexible Work Time Job Flexibility and Security 82.144



ISSN : 0950-0707

Page No : 806

Quality of Work Life , Job Flexibility and Security have significant relationship with

intention to stay.

We can find from the above table that the Quality of Work Life and Job Flexibility and

Security factor plays important role in retention strategies for employee’s intention to stay at

the organization.

5. CONCLUSION:

We have done the analysis and interpretation after completing the research procedure we

found that the mean deviation of the employee retention is higher, so we arrived at following

conclusion-

Salary increment influences the employee retention of the company

Location preferences influences the employee retention

Career opportunities influence the employees to leave the company which results in

employee retention

Regards and recognition influences the employee retention

Work environment of the company also influences the employee retention

6. SUGGESTIONS

Although the results are positive, we can see that mean of factors like career

opportunities and recognition are less than other factors. So, management should give

stress on promotion and recognition strategies so that it will help in retaining

maximum pool of talent.

Effective human resource management must be practices at both strategic and day to

day levels.

HR management practices must reflect company policy as to how it will manage and

relates to its employee.

HR should understand the employee problems and solve them effectively.



ISSN : 0950-0707

Page No : 807

Books:

Carsen A. J., HR How To: Employee Retention, CCH Knowledge Point Publication

(2005)

Kothari C. R., Research Methodology Methods and Techniques, Second Edition, New

Age International Publishers (2008)

Websites:

http://en.wikipedia.org/wiki/Employee_retention

http://guides.wsj.com/small-business/hiring-and-managing-employees/how-to-retain-

employees/

http://www.slideshare.net/dineshpinkey/employeeretention

http://sandv.biz/

dspace.tiss.edu › jspui › handle By S. Pandey, 2002



ISSN : 0950-0707

Page No : 808

http://en.wikipedia.org/wiki/Employee_retention

http://guides.wsj.com/small-business/hiring-and-managing-employees/how-to-retain-employees/

http://guides.wsj.com/small-business/hiring-and-managing-employees/how-to-retain-employees/

http://www.slideshare.net/dineshpinkey/employeeretention

http://sandv.biz/

http://dspace.tiss.edu/jspui/handle/1/4672

http://dspace.tiss.edu/jspui/handle/1/4672

employee retention strategies in it sector- with …journalstd.com/gallery/88-dec2019.pdfcompanies...

Documents