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 its 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 its 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.

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

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.

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 hes doing, he may switch over to some other more suitable job. In todays environment it becomes very important for organizations to retain their employees. According to Get Les Mckeowns 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 JordanEvan stated in Training and Development: Studies have found that the cost of replacing lost talent is 70 to 200 percent of that employees 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-oninvestment 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 dont 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

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

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 2009. in terms of broadband Internet users. Total fixedline and wireless subscribers reached 543.20 million as of November,

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 were vital Gandhi that to India's electronics growth and and telecommunications

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

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 1 City / Region Bangalore Description Popularly known as the capital of the Silicon Valley of India is currently leading in Information Technology Industries in India. Famously known as "Gateway of South India", 2 3 Chennai Hyderabad it is the second largest exporter of Software Hyderabad which has good infrastructure and good government support is also a good technology base in India Pune, a major industrial town, hosts numerous 4 10 Pune multinational and national software giants

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 which is slowly becoming a major IT Kolkata hub in near future. Some of the well known technological corporations are si The National Capital Region 6 NCR Greater Noida and Ghaziabadare of India having

comprising Delhi, Gurgaon, Faridabad, Noida, ambitious projects and are trying to do every possible thing for this purpose. Popularly known as the commercial,

Mumbai

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 other Infotech, Iare FlexWNS and companies

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

India's IT industry (USD bn) *Table 1.2 Particulars IT Services - Exports - Domestic ITES-BPO - Exports - Domestic Engineering services, R&D and Software products - Exports - Domestic 11 FY 2004 10.4 7.3 3.1 3.4 3.1 0.3 2.9 2.5 0.4 FY 2005 13.5 10.0 3.5 5.2 4.6 0.6 3.9 3.1 0.7 FY 2006 17.8 13.13 4.5 7.2 6.3 0.9 5.3 4.0 1.3 FY 2007 23.7 18.1 5.6 9.5 8.3 1.2 6.5 4.9 1.6

Hardware Total IT industry - Exports - Domestic [Source:NASSCOM,15 Jan 2008]

5.0 21.6 13.4 8.3

5.9 28.4 18.2 10.2

7.0 37.4 24.1 13.2

8.2 47.8 31.9 15.9

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 industrys 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 companys 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 reintegrated 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. Indias 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.

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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

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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 workers age is sweeping the country. In fact the whole world is in todays information economy, peoples knowledge, skills and relationships are an organizations 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 organizational retention rates and poaching and of employees from by competitors. To deal with the problem companies resorted to extensive change programmes intervention 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.

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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 CEOs 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 Percentage of Importance of top reason Percentage bottom ten reason

ten of

Creating high

a 1

47%

3%

performance culture 2 Talent retention 3 Recruiting in 3 todays context 22% 0% 2 28% 0%

22

Managing mindsets Training for

6%

8%

5 6

growth Compensatio n knowledge workers

5 6

6% 3%

0% 8%

Building interpersonal relationship

6%

14%

8 9

Going global HR on

6% 6%

22% 28%

system 9

implementati

10

Human capital

10

0%

17%

practice 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 its 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-forperformance 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 persons sex being linked to turnover. Griffeth et als (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 establishmentlevel 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 persons sex being linked to turnover. Griffeth et als (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 ageturnover 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 organisations 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 employees 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 companys 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 employees 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 Male Female Total Frequency 94 106 200 Percent 47.0 53.0 100.0

*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 < 30 years 31-40 years 41-50 years Total Frequency 148 42 10 200 Percent 74.0 21.0 5.0 100.0

*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 Married Unmarried Total Frequency 83 117 200 Percent 41.5 58.5 100.0

*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 Graduate Post Graduate Professional Total Frequency 63 95 42 200 Percent 31.5 47.5 21.0 100.0

*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 Associate/Executives Hr Executive Mgr / TL Sr.Exe/Assoc Others Total

Frequency 49 57 29 41 24 200

Percent 24.5 28.5 14.5 20.5 12.0 100.0

*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 Less than 1 year 1 to 3 years 41 Frequency Percent

81 72

40.5 36.0

More than 3 years Total

47 200

23.5 100.0

*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 First Job 1 org. 2 org. 3 org. Frequency 14 71 86 23 Percent 7.0 35.5 43.0 11.5

42

4 org. Total

6 200

3.0 100.0

*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 4.1 Retention strategy (N=200) Training & development opportunities Rewards & Recognition Job rotation Relocation Benchmarking Mentoring & Coaching Contract agreements Help with career plan Flexible work time Onsite opportunities Assistance in higher education 360 degree appraisal system Work from home Stock investment opportunities Antipoaching agreements Financial support for education Nominal rental facility Day care facility

Available 86.5% 83.5% 83.0% 82.0% 81.5% 69.5% 66.0% 62.5% 52.5% 47.5% 47.0% 39.0% 35.0% 35.0% 34.5% 34.5% 32.0%

Not Available 13.5% 16.5% 17.0% 18.0% 18.5% 30.5% 34.0% 37.5% 47.5% 52.5% 53.0% 61.0% 65.0% 65.0% 65.5% 65.5% 68.0%

*Chart 4.1 *Source: Table 4.1

46

Section B of the questionnaire

*Table 4.2 Benefits (N=200) Salary Compensation Leave benefits Health Insurance benefits Retirement plan PF Seasonal Festival benefits Nonmonetary benefits such as team tours Recreational benefits gym health club Available 100.0% 76.5% 80.0% 84.5% 26.5% 61.0% 73.0% Not Available 0.0% 23.5% 20.0% 15.5% 73.5% 39.0% 27.0%

*Chart 4.2 *Source: Table 4.2

Factor Analysis
*Table 4.3 Rotated Component Career Educatio Develop n Back ment up Matrix Periph Flexi erals working Benefi s

Factor Name

Lock ing strat

Mentor ing

47

ts Training & development opportunities Rewards & Recognition Benchmarking Onsite opportunities Financial support for education Assistance in higher education Stock investment opportunities Job rotation Relocation Day care facility Nominal rental facility Flexible work time Work from home Antipoaching agreements Contract agreements 360 degree appraisal system Mentoring & Coaching Help with career plan TVE (%) 69.69% Eigen Value 0.81 0.79 0.69 0.64 0.87

egy

0.75

0.53 0.46 0.78 0.68 0.84 0.68 0.89 0.66 0.46 0.68 0.64 15.12 4.38 14.43 2.03 10.38 1.71 10.28 10.1 9 1.54 1.17 9.28 1.02

Extraction 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 4.4 Pearson Correlation 53

Would recommend the organization for anyone to work for your Organization Correlation Sig. (1-tailed) N Career Developme 0.17 0.01* 200.00 nt Education 0.13 0.03* 200.00 Back up Peripherals 0.04 0.30 200.00 Benefits Flexi 0.06 0.18 200.00 workings Locking 0.04 0.30 200.00 strategy Mentoring 0.14 0.02* 200.00 Benefits 0.13 0.04* 200.00 200.00 200.00 200.00 Personal 0.43 0.00** Satisfaction Overall Retention 0.15 0.02* Strategy Org. 0.67 0.00** Culture ** 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 Recommendation is Career Development which is correlated with 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 factor 4 is Flexi workings Recommendation is 0.04 (4%) since sig value is not less than 0.05; there is no statistically significant relationship, 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 4.5 Table Value R 0.68 R Square 0.47

Model Summary & ANOVA F F 56.92 Sig. 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. analysis are shown in the Table. The results of the 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 % (R 2%=.47 * x100=47%) of variation in the dependent variable (Recommendation).

56

*Table 4.6 Table Coefficients Standardi Unstandardiz zed ed Coefficien Coefficients ts B Std. Beta Error 1.93 0.52

( Y=a+b1x1+b2x2+ b3x3)

Sig.

(Constant) (a)

-3.72

0.00**

Personal Satisfaction (x1) 0.02 0.10 0.01 0.20 0.85 Retention Strategy 0.25 0.11 0.13 2.39 0.02* (x2) 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 4.7 Reliability Statistics Cronbach's Alpha 0.81 N of Items 17.00 Scale Statistics Mean 64.21 Varianc e 69.63 Std. Deviati on 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 Correct ed ItemTotal Correla tion 0.36 0.35 0.54 0.44 0.34 0.40 0.45 0.50 0.31 Cronbach's Alpha if Item Deleted

Items

Mentoring & Coaching Help with career plan Assistance in higher education Financial support for education Job rotation Relocation Flexible work time Work from home Rewards & Recognition Training & development opportunities

0.80 0.80 0.79 0.80 0.80 0.80 0.80 0.80 0.80

58

Stock investment opportunities Benchmarking Onsite opportunities Antipoaching agreements Contract agreements Day care facility Nominal Rental facilities 360 degree appraisal system

0.41 0.44 0.44 0.33 0.30 0.40 0.40 0.57

0.80 0.80 0.80 0.80 0.81 0.80 0.80 0.79

CHAPTER 5 FINDINGS, SUGGESTIONS, CONCLUSION AND SCOPE.

59

CHAPTER 5 FINDINGS, SUGGESTIONS, CONCLUSION AND SCOPE.

FINDINGS FROM THE STUDY:

There

is

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/1121Employee_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-resourcesarticles/employee-retention-995426.html http://www.citehr.com/115162-top-10-companies-india.html

67

ANNEXURE

Christ University Institute of Management Bangalore 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 Antony Research Scholar Christ University

Gender:

Male

Female 31-40 years 41-50 years

Age: Above 51 years Marital Status: Qualification: Qualification

Below 30 years

Married Graduate

Single

Others Professional

Post Graduate

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.

N o t a t a ll i m p o r t a n t

N o t v e r y i m p o r t a n t

N e u t r a l

S o m e w h a

V e r y i m p o r t a n t

i m p o r t a n t

Sl . N o 1 2 3 4 5 6 7 8 9 1 0 1 1 Mentoring / Coaching Help with career plan Assistance in higher education Financial support for education Job rotation / Relocation Flexible work time Work from home Rewards & recognition Training & development opportunities Stock investment opportunities Annual performance appraisal /

Av ailable Ye No s

70

1 2 1 3 1 4 1 5 1 6 1 7

Benchmarking Onsite opportunities based on agreements Anti poaching agreements Contract agreement Day care facility Assistance / low budget / nominal rent accommodation facility 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.

N o t a t a ll i m p o r t a n t

N o t v e r y i m p o r t a n t

N e u t r a l

S o m e w h at i m p or ta nt

V e r y i m p o r t a n t

Sl . N o

Av ailable Ye No s

3 4

71

1 2 3 4 5 6 7

Salary / compensation Leave benefits Health / Insurance benefits Retirement plan / PF Seasonal / Festival benefits Non monetary benefits such as team tours Recreational benefits (gym / health club)

SECTION C PERSONAL SATISFACTION Please rank on scale of 1-5. Please do not omit any item

S t r o n g l y d i s a g r e e

D i s a g r e e

Neit her agr ee nor dis agr ee

A g r e e

St ro n gl y a gr ee

Sl . n o 1

I have lot of freedom on the job to decide how to pursue my goal I believe the prospects for continuing this employment with this company is excellent I have high level of job security I receive respect & fair treatment from my boss

72

S t r o n g l y d i s a g r e e

D i s a g r e e

Neit her agr ee nor dis agr ee

A g r e e

St ro n gl y a gr ee

Sl . n o 5

6 7

The amount of support, guidance & overall quality of supervisor relationship is sound I get opportunity to learn new things from my organization My promotion prospects are excellent

SECTION - D ORGANIZATIONAL CULTURE Rank on scale 1-5. Please do not omit any item
S t r o n g l y d i s a g r e e D i s a g r e e Nei the r agr ee nor dis agr ee A g r e e St ro ng ly ag re e

Sl

73

. n o 1 2 3 4 5 6

Organization recognize talent & promote it Organization follow social culture & values Employee opinions are valued Employees have great trust in the organization There is delegation of work & authority There is a good communication channel (formal / informal) Regular performance appraisal takes place Good work is always appreciated & rewarded Employees are free to come up with new ideas & projects are encouraged All employees are given equal growth opportunities Would recommend the organization for anyone to work for I believe in the vision & mission of the organization I believe in the value base system of the organization

7 8 9

1 0 1 1 1 2 1 3

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

A N A L Y S I S

S C A L E

(A L P H A)

74

5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34.

V5 V6 V7 V8 V9 V10 V11 V12 V13 V14 V15 V16 V17 V18 V19 V20 V21 V22 V23 V24 V25 V26 V27 V28 V29 V30 V31 V32 V33 V34

75

R E L I A B I L I T Y N of Cases = Item Means Variance 1.5742 Item Variances Variance 11.8299 Inter-item Covariances Variance -2.1780 Inter-item Correlations Variance -1.6279 .0352 .0134 .1730 Mean .5843 Mean 2.6020

A N A L Y S I S 49.0 Minimum 1.1429

S C A L E

(A L P H A)

Maximum 4.5918

Range 3.4490

Max/Min 4.0179

Minimum .1250

Maximum 1.4787

Range 1.3537

Max/Min

Mean .0633

Minimum -.2628

Maximum .5723

Range .8350

Max/Min

Mean .1234

Minimum -.4953

Maximum .8062

Range 1.3015

Max/Min

Reliability Coefficients Alpha = 8272 .8051

34 items Standardized item alpha = .

76

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

R E L I A B I L I T Y 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. * * * V1 N of Cases = Item Means Variance 2.2278 Item Variances Variance 11.3727 Inter-item Covariances Variance -3.3458 Inter-item Correlations Variance -1.7626 .0876 .0377 .1337 Mean 2.8917 V2 V3 V4 V5 V6 V7 V8 V9 V10 V11 V12 V13 V14 V1

A N A L Y S I S

S C A L E

(A L P H A)

has zero

variance 49.0 Minimum 1.1020 Maximum 4.6735 Range 3.5714 Max/Min 4.2407

Mean .5313

Minimum .0935

Maximum 1.0638

Range .9702

Max/Min

Mean .0759

Minimum -.2164

Maximum .7241

Range .9405

Max/Min

Mean .0996

Minimum -.4175

Maximum .7359

Range 1.1534

Max/Min

77

Reliability Coefficients Alpha = 8198 .7842

13 items Standardized item alpha = .

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 V1 V2 V3 V4 V5 V6 V7 .7466 .4588 .3741 .2997 .2696 .2224 .3023 V2 V3 V4 V5

1.0442 .4741 .5485 .5132 .3759 .4804

1.1769 .4447 .1820 .3525 .2683

1.0459 .7713 .4537 .3992

.9813 .2058 .3295

V6 V6 V7 .9864 .4796

V7

1.0944

Correlation Matrix V1 V1 V2 V3 V4 V5 V6 V7 1.0000 .5196 .3992 .3392 .3149 .2591 .3344 V2 V3 V4 V5

1.0000 .4276 .5248 .5070 .3703 .4494

1.0000 .4008 .1693 .3271 .2364

1.0000 .7613 .4466 .3732

1.0000 .2092 .3180

V6 V6 V7 1.0000 .4616

V7

1.0000

79

80

R E L I A B I L I T Y N of Cases = Item Means Variance 1.2303 .0592 Mean 3.4548

A N A L Y S I S 49.0 Minimum 3.1020

S C A L E

(A L P H A)

Maximum 3.8163

Range .7143

Max/Min

Item Variances Variance 1.5763 Inter-item Covariances Variance 4.2383 Inter-item Correlations Variance 4.4958 .0167 .0184 .0180

Mean 1.0108

Minimum .7466

Maximum 1.1769

Range .4303

Max/Min

Mean .3907

Minimum .1820

Maximum .7713

Range .5893

Max/Min

Mean .3881

Minimum .1693

Maximum .7613

Range .5920

Max/Min

Reliability Coefficients Alpha = 8161 .8152

7 items Standardized item alpha = .

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 = Item Means Variance 1.2973 .0585 Mean .7353 Mean 3.5055

49.0 Minimum 3.0204 Maximum 3.9184 Range .8980 Max/Min

Item Variances Variance 3.0993 Inter-item Covariances Variance -7.7476 Inter-item Correlations Variance -7.9006 .0341 .0254 .0428

Minimum .3682

Maximum 1.1412

Range .7730

Max/Min

Mean .2622

Minimum -.0893

Maximum .6918

Range .7810

Max/Min

Mean .3553

Minimum -.1161

Maximum .9174

Range 1.0336

Max/Min

Reliability Coefficients Alpha = 8775 .8781

13 items Standardized item alpha = .

83

WORKING NOTES ON STATISTICAL TOOLS USED

q1.Gender Cumulative Percent 47.0 100.0

Frequency Male Female Total 94 106 200

Percent 47.0 53.0 100.0

Percent 47.0 53.0 100.0

q2.Age Cumulative Percent 74.0 95.0 100.0

Frequency < 30 years 31-40 years 41-50 years Total 148 42 10 200

Percent 74.0 21.0 5.0 100.0

Percent 74.0 21.0 5.0 100.0

q3.MaritalStatus Cumulative Percent 41.5 100.0

Frequency Married Unmarried Total 83 117 200

Percent 41.5 58.5 100.0

Percent 41.5 58.5 100.0

q4.Qualification Cumulative Percent 31.5 79.0 100.0

Frequency Graduate Post Graduate Professional Total 63 95 42 200

Percent 31.5 47.5 21.0 100.0

Percent 31.5 47.5 21.0 100.0

q5.Designation Cumulative Percent 24.5

Frequency Associate/Executives 49

Percent 24.5

Percent 24.5

84

Hr Executive Asst. Mgr / TL Sr. Exe/Assoc Others Total

57 29 41 24 200

28.5 14.5 20.5 12.0 100.0

28.5 14.5 20.5 12.0 100.0

53.0 67.5 88.0 100.0

q6.Experience in Current Position Cumulative Percent 40.5 76.5 100.0

Frequency Less than 1 year 1 to 3 years More than 3 years Total 81 72 47 200

Percent 40.5 36.0 23.5 100.0

Percent 40.5 36.0 23.5 100.0

q7.Howmanyorganizationsyouhaveworkedforinthelast5years Cumulative Percent 7.0 42.5 85.5 97.0 100.0

Frequency 0 1 2 3 4 Total 14 71 86 23 6 200

Percent 7.0 35.5 43.0 11.5 3.0 100.0

Percent 7.0 35.5 43.0 11.5 3.0 100.0

85

Count A1.MentoringampCoaching Available Not Available Total A2.Helpwitcareerplan Available Not Available Total A3.Assistanceinhighereduc ation A4.Financialsupportforeduc ation A5.JobrotationRelocation Available Not Available Total Available Not Available Total Available Not Available Total A6.Flexibleworktime Available Not Available Total A7.Workfromhome Available Not Available Total A8.RewardsampRecognitio n A9.Trainingampdevelopme ntopportunities A10.Stockinvestmentopport unities A11.Annualperformanceap praisalBenchmarking A12.Onsiteopportunitiesbas edonagreements Available Not Available Total Available Not Available Total Available Not Available Total Available Not Available Total Available Not Available Total 163 37 200 132 68 200 95 105 200 69 131 200 166 34 200 125 75 200 78 122 200 167 33 200 173 27 200 70 130 200 164 36 200 105 95 200

Column N % 81.5% 18.5% 100.0% 66.0% 34.0% 100.0% 47.5% 52.5% 100.0% 34.5% 65.5% 100.0% 83.0% 17.0% 100.0% 62.5% 37.5% 100.0% 39.0% 61.0% 100.0% 83.5% 16.5% 100.0% 86.5% 13.5% 100.0% 35.0% 65.0% 100.0% 82.0% 18.0% 100.0% 52.5% 47.5% 100.0%

86

A13.Antipoachingagreeme nts A14.Contractagreements

Available Not Available Total Available Not Available Total

70 130 200 139 61 200 64 136 200 69 131 200 94 106 200 200 0 200 153 47 200 160 40 200 169 31 200 53 147 200 122 78 200 146 54 200

35.0% 65.0% 100.0% 69.5% 30.5% 100.0% 32.0% 68.0% 100.0% 34.5% 65.5% 100.0% 47.0% 53.0% 100.0% 100.0% .0% 100.0% 76.5% 23.5% 100.0% 80.0% 20.0% 100.0% 84.5% 15.5% 100.0% 26.5% 73.5% 100.0% 61.0% 39.0% 100.0% 73.0% 27.0% 100.0%

A15.Daycarefacility

Available Not Available Total

A16.AssistanceLowbudget Nomonalrentaccommodatio nfacility A17.360degreeappraisalsy stem B1.SalaryCompensation

Available Not Available Total Available Not Available Total Available Not Available Total

B2.Leavebenefits

Available Not Available Total

B3.HealthInsurancebenefits

Available Not Available Total

B4.RetirementplanPF

Available Not Available Total

B5.SeasonalFestivalbenefit s B6.Nonmonetarybenefitssu chasteamtours B7.Recreationalbenefitsgy mhealthclub

Available Not Available Total Available Not Available Total Available Not Available Total

87

Correlations q73.Wouldrecommendtheorganizationforanyonetow orkfor Pearson Correlation fac1Avg fac2Avg fac3Avg fac4Avg fac5Avg fac6Avg Benefits Personal Satisfaction Retention Strategy Org. Culture .167(**) .132(*) .038 .064 .038 .141(*) .126(*) .427(**) .146(*) .670(**) Sig. (1-tailed) .009 .031 .298 .183 .297 .023 .038 .000 .019 .000 N 200 200 200 200 200 200 200 200 200 200

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

Variables Entered/Removed(b) Variables Entered Personal Satisfaction( a) Variables Removed .

Model 1

Method Enter

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

Model Summary Adjusted R Square .178 Std. Error of the Estimate .908

Model 1

R .427(a)

R Square .182

88

a Predictors: (Constant), Personal Satisfaction

ANOVA(b) Sum of Squares Regression Residual Total 36.290 163.065 199.355

Model 1

df 1 198 199

Mean Square 36.290 .824

F 44.064

Sig. .000(a)

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

Coefficients(a) Unstandardized Coefficients Model 1 (Constant) Personal Satisfaction B 1.199 .614 Std. Error .336 .092 Standardized Coefficients Beta .427

t B 3.574 6.638

Sig. Std. Error .000 .000

a Dependent Variable: q73.Wouldrecommendtheorganizationforanyonetoworkfor

Variables Entered/Removed(b) Variables Entered Org. Culture(a) Variables Removed .

Model 1

Method Enter

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

Model Summary Adjusted R Square .358 Std. Error of the Estimate .55716

Model 1

R .601(a)

R Square .362

a Predictors: (Constant), Org. Culture

ANOVA(b) Sum of Squares Regression Residual 34.819 61.464

Model 1

df 1 198

Mean Square 34.819 .310

F 112.167

Sig. .000(a)

89

Total

96.283

199

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

Coefficients(a) Unstandardized Coefficients Model 1 (Constant) Org. Culture B .839 .768 Std. Error .260 .073 Standardized Coefficients Beta .601

t B 3.229 10.591

Sig. Std. Error .001 .000

a Dependent Variable: Personal Satisfaction

Variables Entered/Removed(b) Variables Entered Org. Culture(a) Variables Removed .

Model 1

Method Enter

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

Model Summary Adjusted R Square .446 Std. Error of the Estimate .745

Model 1

R .670(a)

R Square .449

a Predictors: (Constant), Org. Culture

ANOVA(b) Sum of Squares Regression Residual Total 89.549 109.806 199.355

Model 1

df 1 198 199

Mean Square 89.549 .555

F 161.474

Sig. .000(a)

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

Coefficients(a)

90

Unstandardized Coefficients Model 1 (Constant) Org. Culture B -.979 1.232 Std. Error .347 .097

Standardized Coefficients Beta .670

t B -2.818 12.707

Sig. Std. Error .005 .000

a Dependent Variable: q73.Wouldrecommendtheorganizationforanyonetoworkfor

Variables Entered/Removed(b) Variables Entered Retention Strategy(a) Variables Removed .

Model 1

Method Enter

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

Model Summary Adjusted R Square .014 Std. Error of the Estimate .69061

Model 1

R .139(a)

R Square .019

a Predictors: (Constant), Retention Strategy

ANOVA(b) Sum of Squares Regression Residual Total 1.848 94.435 96.283

Model 1

df 1 198 199

Mean Square 1.848 .477

F 3.874

Sig. .050(a)

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

Coefficients(a) Unstandardized Coefficients Model 1 (Constant) Retention Strategy B 2.831 .194 Std. Error .374 .099 Standardized Coefficients Beta .139

t B 7.572 1.968

Sig. Std. Error .000 .050

91

a Dependent Variable: Personal Satisfaction

Variables Entered/Removed(b) Variables Entered q73.Wouldr ecommendt heorganizati onforanyon etoworkfor( a) Variables Removed

Model 1

Method

Enter

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

Model Summary Adjusted R Square .016 Std. Error of the Estimate .49230

Model 1

R .146(a)

R Square .021

a Predictors: (Constant), q73.Wouldrecommendtheorganizationforanyonetoworkfor

ANOVA(b) Sum of Squares Regression Residual Total 1.047 47.987 49.034

Model 1

df 1 198 199

Mean Square 1.047 .242

F 4.320

Sig. .039(a)

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

Coefficients(a) Unstandardized Coefficients Model 1 (Constant) q73.Wouldrecomme ndtheorganizationfo ranyonetoworkfor B 3.513 .072 Std. Error .123 .035 .146 Standardized Coefficients Beta

t B 28.551 2.079

Sig. Std. Error .000 .039

a Dependent Variable: Retention Strategy

92

Variables Entered/Removed(b) Variables Entered q73.Wouldr ecommendt heorganizati onforanyon etoworkfor( a) Variables Removed

Model 1

Method

Enter

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

Model Summary Adjusted R Square .178 Std. Error of the Estimate .63068

Model 1

R .427(a)

R Square .182

a Predictors: (Constant), q73.Wouldrecommendtheorganizationforanyonetoworkfor

ANOVA(b) Sum of Squares Regression Residual Total 17.527 78.756 96.283

Model 1

df 1 198 199

Mean Square 17.527 .398

F 44.064

Sig. .000(a)

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

Coefficients(a) Unstandardized Coefficients Model 1 (Constant) B 2.557 Std. Error .158 Standardized Coefficients Beta

T B 16.221

Sig. Std. Error .000

93

q73.Wouldrecomme ndtheorganizationfo ranyonetoworkfor

.297

.045

.427

6.638

.000

a Dependent Variable: Personal Satisfaction

ANOVA Sum of Squares Benefits Between Groups Within Groups Total Personal Satisfaction Between Groups Within Groups Total Retention Strategy Between Groups Within Groups Total Org. Culture Between Groups Within Groups Total q73.Wouldrecommend theorganizationforanyo netoworkfor Between Groups Within Groups Total .155 59.747 59.902 .505 95.779 96.283 .147 48.887 49.034 .261 58.752 59.014 1.209 198.146 199.355

df 2 197 199 2 197 199 2 197 199 2 197 199 2 197 199

Mean Square .078 .303 .252 .486 .074 .248 .131 .298 .604 1.006

F .256

Sig. .775

.519

.596

.297

.743

.438

.646

.601

.549

Case Processing Summary N Cases Excluded( a) Total 200 0 200 % 100.0 .0 100.0

a Listwise deletion based on all variables in the procedure.

Reliability Statistics Cronbach's Alpha .809

N of Items 17

Item-Total Statistics Scale Variance if Item Deleted Corrected Item-Total Correlation Cronbach's Alpha if Item Deleted

Scale Mean if Item Deleted

94

A1.1_MentoringampCoachi ng A2.1_Helpwitcareerplan A3.1_Assistanceinhighered ucation A4.1_Financialsupportfored ucation A5.1_JobrotationRelocation A6.1_Flexibleworktime A7.1_Workfromhome A8.1_RewardsampRecogni tion A9.1_Trainingampdevelop mentopportunities A10.1_Stockinvestmentopp ortunities A11.1_Annualperformance appraisalBenchmarking A12.1_Onsiteopportunities basedonagreements A13.1_Antipoachingagree ments A14.1_Contractagreements A15.1_Daycarefacility A16.1_AssistanceLowbudg etNomonalrentaccommodat ionfacility A17.1_360degreeappraisal system

60.02 60.15 60.59

64.788 64.239 60.343

.261 .347 .536

.808 .803 .791

60.45 60.20 60.15 60.43 59.65 59.79

61.405 63.963 62.282 60.408 63.455 64.646

.440 .338 .401 .449 .499 .311

.797 .803 .799 .796 .796 .805

61.09

61.530

.406

.799

59.79

62.676

.443

.797

60.47 61.35 61.24 60.96 60.82

61.597 62.522 62.980 61.471 62.376

.441 .332 .298 .403 .398

.797 .805 .807 .799 .800

60.15

60.443

.571

.789

Scale Statistics Mean 64.21 Variance 69.634 Std. Deviation 8.345 N of Items 17

Communalities Initial A1.1_MentoringampCoachi ng A2.1_Helpwitcareerplan 1.000 1.000 Extraction .555 .794

95

A3.1_Assistanceinhighered ucation A4.1_Financialsupportfored ucation A5.1_JobrotationRelocation A6.1_Flexibleworktime A7.1_Workfromhome A8.1_RewardsampRecogni tion A9.1_Trainingampdevelop mentopportunities A10.1_Stockinvestmentopp ortunities A11.1_Annualperformance appraisalBenchmarking A12.1_Onsiteopportunities basedonagreements A13.1_Antipoachingagree ments A14.1_Contractagreements A15.1_Daycarefacility A16.1_AssistanceLowbudg etNomonalrentaccommodat ionfacility A17.1_360degreeappraisal system

1.000

.713

1.000 1.000 1.000 1.000 1.000 1.000

.797 .645 .756 .580 .749 .719

1.000

.556

1.000

.671

1.000 1.000 1.000 1.000 1.000

.680 .803 .678 .727 .768

1.000

.655

Extraction Method: Principal Component Analysis.

Rotated Component Matrix(a) Component 1 A9.1_Trainingampdevelop mentopportunities A8.1_RewardsampRecogni tion .810 .794 2 3 4 5 6

96

A11.1_Annualperformance appraisalBenchmarking A12.1_Onsiteopportunities basedonagreements A4.1_Financialsupportfored ucation A3.1_Assistanceinhighered ucation A10.1_Stockinvestmentopp ortunities A5.1_JobrotationRelocation A15.1_Daycarefacility A16.1_AssistanceLowbudg etNomonalrentaccommodat ionfacility A6.1_Flexibleworktime A7.1_Workfromhome A13.1_Antipoachingagree ments A14.1_Contractagreements A17.1_360degreeappraisal system A1.1_MentoringampCoachi ng A2.1_Helpwitcareerplan

.689

.637

.871

.751

.526 .462 .779 .679 .843 .685 .886 .657 .458 .463 .682 .604 .640

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

97