CHAPTER - II

EMPLOYEE RETENTION STRATEGY : A REVIEW OF

LITERATURE

2.1 INTRODUCTION
2.2 STUDIES ON RETENTION STRATEGIES OF PRIVATE SECTORS
2.3 STUDIES ON RETENTION STRATEGIES IN IT SECTORS
2.4 STUDIES ON JOB ATTITUDE OF THE EMPLOYEES
2.5 CONCLUSION ON REVIEW OF LITERATURE
2.6 RESEARCH GAP
2.7 NEED FOR THE STUDY
2.8 STATEMENT OF THE PROBLEM
2.9 OBJECTIVES OF THE STUDY
2.10 HYPOTHESES
2.11 SCOPE OF THE STUDY
2.12 RESEARCH METHODOLOGY
2.12.1 RESEARCH DESIGN
2.12.2 SAMPLE OF THE STUDY
2.12.3 MEASURES USED TO COLLECT THE DATA
2.12.4 PILOT STUDY
2.12.5 ETHICAL ISSUES
2.12.6 DATA COLLECTION
2.12.7 ANALYSIS OF RESULTS
2.12.8 CHAPTERIZATION SCHEME
2.12.9 LIMITATIONS OF THE STUDY
 

CHAPTER - II

EMPLOYEE RETENTION STRATEGY: A REVIEW OF

LITERATURE

2.1 INTRODUCTION
Employee retention issues are emerging as the most critical workforce
management challenges of the immediate future. Researchers have shown that in the
future, “successful organizations will be those which adapt their organizational
behavior to the realities of the current work environment where longevity and success
depend upon innovation, creativity and flexibility”. In fact, “the dynamics of the work
environment will have to reflect a diverse population comprised of individuals whose
motivations, beliefs and value structures differ vastly from the past and from one
another. This phenomenon is especially true in light of current economic uncertainty
and following corporate downsizings when the impact of losing critical employees
increases exponentially” (Caplan and Teese, 1997). “Critical analysis of workforce
trends points to an impending shortage of highly-skilled employees who possess the
requisite knowledge and ability to perform at high levels, meaning that organizations
failing to retain high performers will be left with an understaffed, less qualified
workforce that ultimately hinders their ability to remain competitive” (Rappaport,
Bancroft, & Okum, 2003) with managers facing a difficult challenge of motivating
and retaining the employees in an environment of increased uncertainties (Mitchell,
2002). “Retention rates generally falls as employees become distracted, confused and
preoccupied with potential outcomes immediately following an organizational
transition” (Bridges, 1991). In spite of the huge literature on identifying factors on
employee turnover which is reason employees to leave (Griffeth, Hom, & Gaertner,
2000), less is recognized about the aspects that induce employees to stay. Maertz &
Campion (1998) noted “relatively less turnover research has focused specifically on
how an employee decides to remain with an organization and what determines
retention processes should be studied along with quitting processes”.
Steel, Griffeth & Hom (2002) added “the fact was often overlooked, but the
reasons people stay were not always the same as the reasons people leave”. Retention
was a multifaceted concept which was not having single formula for retaining
personnel with a organization. Retention is perceived as “an obligation to continue to

22 
 
 

do business or exchange with a particular company on an ongoing basis” (Zineldin,

2000). A more detailed and recent definition for the concept of retention was
“customer liking, identification, commitment, trust, readiness to recommend, and
repurchase intentions, with the first four being emotional”.
2.2 STUDIES ON RETENTION STRATEGIES OF PRIVATE SECTORS
Cascio W F. (2003) focused on employee retention strategies those initiatives
taken by management to keep employees from leaving the organization, such as
rewarding employees for performing their jobs effectively; ensuring harmonious
working relations between employees and managers; and maintaining a safe, healthy
work environment.
McDonald P et. al., (2005) suggested that the five dimensions underlie this
aspect of organizational life: lack of managerial support for work‐life balance;
perceptions of negative career consequences; organizational time expectations; the
gendered nature of policy utilisation; and perceptions of unfairness by employees with
limited non‐work responsibilities.
Damayanti N (2009) started the study with the objective to find out the
association between factors of retention and career commitment. Compensation,
training and development, job characteristic, supervisor support and promotion were
measured. The results of the study indicated that that compensation, training and
development, job characteristic, supervisor support and promotion were positively
correlated with career commitment and compensation was the most important factors
in influencing career commitment.
Chandiok S. (2012) examined that career path is highly influenced on
retaining the employees. It was observed that employees were not happy with their
salary, culture, recognition, environment, polices and relationship with the company
and with co-workers. The study suggested that the textile industry has to revise their
current policies relating to employees, because various factors effecting higher
turnover.
Sinha C & Sinha R (2012) had taken a study to identify the main factors of
retention management strategies in organizations. The organizations taken into
consideration were two heavy engineering manufacturers based in India. The data was
collected from 100 employees of heavy engineering manufacturers in India. The
factors for EEPL were “competence & relationship oriented”, “scholastic & futuristic
oriented” and “developmental & reward oriented”; while for MBPL, the factor were
23 
 
 

“relationship oriented”, “competence & scholastic oriented” and “reward oriented”.

The findings had shown that these aspects had played considerable roles in employees
to stay in the organization.
Nawaz N et. al., (2012) identified variables which influence the turnover
intentions of the employees in organizations. For this purpose, Pakistan International
Airlines was taken as a case. A survey was conducted to gather the primary data from
the employees of PIA on these six variables. It was found that higher relationship was
existed between the experienced “career propagation chances” and the resulting
“lower turnover intention” of the employees in relation to the career enhancement
opportunities they practiced. Relationship was also found to exist between the
experiences of the employees on “Incentive plans”, “work setting”, “supervisory
support”, work life balance” and “organizational prestige” and the resulting “lower
turnover intentions”.
Gayathri R, et. al., (2012) found in 132 middle level employees in selected
BPO’s in Bengaluru, that competitive compensation, Encouragement and
Recognition, well equipped and safety, environment, infrastructure, potential talent
and the prospective roles are the major factors that were influencing the employee
retention.
Pinder J (2012) revealed the reasons affecting employee retention using a
structured online survey in North America. The study discovered that in most of the
categories employees considered expectation for higher salary, employment position,
opportunities for professional development high performing, environment
opportunities for promotion, high-performing environment were the main reasons to
leave the organization and to retain in the organization.
Akila R (2012) examined the opinion of executives on employee retention
attributes at BGR Energy a sample of 109 respondents from executives’ cadre. The
analysis revealed that the Employees have given highest weighting to comfortableness
in working hours and are not satisfied with annual increments provided. Gender had
significant relationship with work life balance. Correlation between job satisfaction
and working condition led to employee retention. The factors that had a greater
influence on employee retention were career opportunities, work life balance.
Ranjitham D (2013) examined employee retention strategies followed in the
BPO industry and the role of HR practices in the fulfillment of job satisfaction
amongst the employees of the industry. Researcher found that, organization adopted
24 
 
 

Career advancement opportunities, Challenging work, Salary, Employee benefits,

Motivation etc. The company followed effective retention practices, so the turnover
was very less in the organization.
Praveen Kumar S. P & Dhamodharan V (2013) aimed at developing insight
on how employee retention was relevant in present business context. Primary data
was collected by the researcher with the help of structured questionnaire administered
to the middle level employees in two. 212 middle level employees from leading BPO
companies in Chennai organizations constituted the sample size. The study found that
most of the employees in BPO companies were retained due to the following factors
such as Challenging Assignments, Remuneration & Recognition, and Opportunities to
learn new things, infrastructure, potential talent and the prospective roles.
Smit, W A (2014) studied the possible relationships between multi-
generations’ Total Reward components, Perceived Organizational Support (POS), and
Perceived Supervisor Support (PSS). The results showed that performance
management and remuneration were considered to be the most important retention
factors among multi-generation groups. Differences between total reward preferences
and demographical variables which included age, gender, race, industry and job level,
were found. The findings of the study indicated a strong practically significant
positive correlation between Total Reward components and POS. A strong practical
significant positive relationship was found between Total Reward and PSS. The study
confirmed a strong practically significant positive correlation between POS and PSS
in this study.
Shukla S (2014) focused on issue of employee retention in public as well
private sector banks. Public sector banks had been compared with their private sector
counterparts on the basis of their employee retention policies. Functional as well as
HR manager were interviewed and results were analyzed separately. The study found
that public sector banks were unfavorably dealing with the issue of talent retention
and they didn't have any defined employee retention policy where as private sector
banks had given prominent importance to talent retention and their various HR
policies and practices were aimed to retain best talent in their organization.
Deery M & Jago L (2015) examined the themes of talent management, work
life balance (WLB) and retention strategies in the hospitality industry. WLB seemed
as important subjects of employee management and retention. The link between
employee attitudes, such as job satisfaction and organizational commitment, personal
25 
 
 

dimensions, such as stress and alcohol abuse, and WLB had become closer and
intertwined.

2.3 STUDIES ON RETENTION STRATEGIES IN IT SECTORS

Ahuja M K et. al., (2007) examined the antecedents of turnover intention

among information technology. This study provided empirical indication for the
effects of work-family conflict, perceived work overload, fairness of rewards, and job
autonomy on organizational commitment and work exhaustion for road warriors. The
results suggested that work-family conflict was a key source of stress among IT road
warriors because they have to juggle family and job duties as they work at distant
client sites during the week.
Richmana A L et. al., (2008) examined the relationship of perceived
workplace flexibility and supportive work life policies to employee engagement and
expectations to remain with the organization (expected retention). Results revealed
that perceived flexibility and supportive work life policies were related to greater
employee engagement and longer than expected retention. Employee engagement was
fully mediated the relationship between perceived flexibility and expected retention
and partially mediated the relationship between supportive work life policies and
expected retention.
Punia B. K and Sharma P (2008) investigated the influence of organizational
procurement practices on employee retention intentions on the basis of personal and
positional variables of employees. It also examined the variations in the corporate
perception on the procurement practices as a retention tool for IT Personnel.
Govaerts N et. al., (2010) investigated influencing factors of employee
retention. 972 employees from diverse profit and social-profit organizations were
taken as a sample for the study. The results showed that when organizations want to
retain their employees it was important to pay attention to the learning of employees.
A positive relationship between age and retention was found in the study.
Ali Shah I et. al., (2010) taken up the study with main objective to access
personal, push and pull factors and to find out that which factors contribute more to
turnover intention. The collected data indicated that all three factors and personal
factor had significantly contributed in the employees’ turnover intentions.
Koetser R L (2010) collected a total of 36 highly talented employees in the
focus groups which were split in terms of age in order to establish if different age

26 
 
 

groups had different views. The findings of the research enabled the development of a
structured argument in terms of what organizations need to start doing, stop doing and
continue doing with respect to the management practices employed for the retention
of highly talented people.
Chiboiwa M W et. al., (2010) taken up a case study of a major private sector
medical laboratory company in Zimbabwe. The result of the research showed that
labour turnover was higher amongst non-managerial employees. Similarly, majority
of the employees would soon quit the organization and lastly, the high rate of
employee turnover in the organization was largely attributed to poor reward system
administration.
Tseng C Y (2010) aimed to identify what retention factors are important in
retaining software development employees in the IT industry in Taiwan. Six retention
factors were examined. The findings of this study indicated that two unique and four
common retention factors could be related to software engineers and assistant
managers’ decisions to stay. One unique and five common retention factors could be
related to project leaders’ decisions to stay. In addition, these three different types of
software development employees were in different career stages.
Umer M. and Naseem M. A. (2011) investigated the impact of career
development, supervisor support, work environment, work life balance on employee
retention. A total of 50 interviews were taken from managers of different BPO
organizations in Pakistan. The variables had a significant and positive impact on
employee retention.
Kabera (2011) emphasized on Employee motivation, favourable working
conditions and individual security were some of the factors that influence staff
retention in private security firms in Nairobi.
Bairi J et. al., (2011) aimed to find effective employee retention plan for IT
sectors. The employee retention plan was evaluated at three IT MNCs. The data
collected was used for studying attrition and retention and its impact on KM. Findings
of the study provided evidence of various strategic, technological, and local issues
influencing the success of retention and its benefit to KM programs in global IT
service companies.
Plaatjies F C (2011) aimed to propose effective retention strategies for
employers within the financial environment, to retain their skilled IT workforce. The
field data were gathered by using twofold data collection technique: disseminating a
27 
 
 

questionnaire and interviewing participants in this study. The fieldwork followed the
University of the Western Cape guidelines on research ethics. The outcomes of the
study showed that there was a strong correlation between having good HR retention
policies and procedures, and the management of these policies and procedures. The
findings suggested the importance of involving employees at all employment levels
to provide input on the development of these policies and procedures so that the
retention process is well understood across the firm.
Naidu K (2011) aimed to identify the key factors influencing the retention of
B players across generations and ethnic groups, and thereby developed a retention
framework that would contribute towards the improved retention of B players. The
study adopted a dual approach, incorporating a qualitative and quantitative
methodology. Interviews were conducted with key stakeholders to validate the
questionnaire and gain insights regarding the key retention variables that influence B
players. The key findings indicated that B players were most influenced by Financial
Reward &Recognition, Independence & Freedom and Leadership& Management
factors. A Factor Significance and Variable Importance Retention Framework was
developed to assist organizations to develop dynamic multidimensional strategies.
Aslam R (2011) investigated the relationship between work family conflict
(WFC), family work conflict (FWC) and turnover intentions of employees in three
public and three private sector organizations from services sector of Pakistan. This
study found positive but insignificant relationship between work-family conflict
(WFC), family-work conflict (FWC) and turnover intention of employees. Both
public and private sector employees are neutral regarding these variables.
Sleiderink D. E. M (2012) focused on talent management – in particular on
the identification and retention of talent – within Medisch Spectrum Twente (MST).
MST employs about 4000 employees of Netherlands were interviewed with current
talents at in order to investigate what their extrinsic and intrinsic needs were. Based
on the results, the top five most important extrinsic needs of talents at MST were
relationships with colleagues, followed by work conditions, job security, promotional
opportunities, and salary. The top five most important intrinsic needs of talents at
MST were autonomy, followed by opportunities for development and job satisfaction,
challenge, recognition and task significance. These results indicated how important it
was for an organization to have a commonly shared definition, criteria and a method
to identify talents.
28 
 
 

James L and Mathew L (2012) examined that influence of Retention

strategies on Employee Turnover. The 50 companies of IT Sector in Bengaluru were
selected for the study. Out of 300 respondents 225 responses were received from the
middle level employees and middle level managers. The results of the study proved
that Retention Strategies had an influence on Intention to stay and a relationship
between retention strategies, personal satisfaction and welfare benefits was found.
James L et. al., (2012) attempted to find out influence of retention strategies
on employee turnover in IT sectors in Bengaluru. Welfare benefits, personal
satisfaction and organizational culture which were associated with the employee
turnover. Intention to stay was the proxy variable which explained the employee
turnover in the study.
Yang J T et. al., (2012) explored the causes of employee turnover and to
identify existing practices in human resource retention strategies. It was found that
more than 80% of respondents had resigned from a job to pursue career advancement
while 70% had experienced recruitment propositions from other hotels in Tiwan
hotels. Also the research indicated the need of understanding coworkers while giving
career advice, relevant training programs and introducing career opportunities.
Ahmad K & Azumah K K. (2012) proposed the job embeddedness was a
superior model that significantly explains employee retention. The population for
the study was 53 respondents out of 75 taken from a patent firm in Australia, a
representation of the rapidly growing knowledge industry. The 75 participants of
patent firm in Australia, were surveyed. The survey questions were categorized
under six major theories of employee retention with each category having an
average of five questions. The suggested that the age of the Two-Factor theory, it
was still significant for managing employee retention in today’s rapidly expanding
service- and knowledge-based organizations.
Vijaya Kumar J (2012) investigated the factor influencing employee
retention in IT sectors, Bengaluru (100 employees). Company policy and
administration, relationship with superior, personal life, relationship with
subordinates, responsibility and motivation were having higher influencing factors
for employee retention. Dimensions such as salary, security and status had least
influencing factors. Work conditions. It was found that, group cohesiveness,
followed by salary, relationship with subordinates, responsibility and motivation
were the most influencing factors for employee retention.
29 
 
 

Zachariah M & Roopa T. N. (2012) examined the main causes for

employees to leave and to stay in the organization, work attitude, work relationships
and significant difference among IT professionals of Indian IT and Multinational
Companies. Data of 30 IT employees revealed the existence of no significant
difference among these companies and significant difference on personal factors
like, total experience, position and sponsored certification programs between these
companies.
Vijayakumar J et. al., (2012) attempted to study various issues and factors
influencing talent retention to employees working in IT Industries in Bengaluru.
Results of the study revealed that variables like those of Conflicts avoided among
employees, company rules and regulation made to benefit the employees, employee
satisfaction in working conditions; ergonomics to work were identified to be
important retention variables preferred by respondents. Respondents’ age had
significant association with retention dimensions like organizational image and
supervisory support and marital status had significant association with working
conditions and welfare as retention dimensions. Respondents had expressed their
dissatisfaction on the training and development opportunities and working hours in
their organizations.
Mangnale V S and Potluri R M (2012) studied the implications of
retention, various reasons for attrition and also different ways to control attrition
along with the employee retention strategies implementing by the Indian IT sector.
The opinions of 200 employees were collected chosen from 20 IT companies in the
city of Pune (10 large and 10 medium size companies) and also gathered the opinion
of these companies HR managers on strategies they were implementing to retain
their talent pool through personal and telephonic interviews. The study identified
some unique job associated, compensation related and inter-personal relations
related reasons for quitting their positions along with the outlook of Indian IT
companies related to the identification and implementation of retention strategies
like regular amendment in compensation package, improved working conditions,
continuous introduction of employee welfare facilities, and genuine promotional
policy, recognition and rewards, career planning and development, and exemplary
leadership.
Vijayakumar J et. al., (2012) examined the twelve organizations in the IT
to know their HR practices. Results of the study revealed that a significant
30 
 
 

relationship between experience in the job and employee retention and exit
interviews was a highly effective tool for improving the level of employee retention.
Significant relationship was not found between job satisfaction, educational
qualification and employee retention. The percentage of employee attrition varied
considerably across selected IT organizations which could be the result of the
different employee retention strategies followed by these organizations.
Chordiya K D. (2013) investigated to understand the reasons behind why do
ITeS professionals switch their jobs, to know why retention was needed & to
understand the various strategies adopted by BPO sector for retaining their
employees. It was revealed that most of the employees in BPOs were retained because
of the following factors such as competitive compensation, encouragement and
recognition, well equipped and safety environment, infrastructure, potential talent and
job involvement. The employee retention could be possible if an organization
practices these factors.
Atul Mathur A & Agarwal P. K. (2013) explored the influence of retention
strategies on employee turnover in sugar industry in India. Uttar Pradesh. Results of
the study showed that retention strategies had an impact on employee turnover.
Welfare benefits, personal satisfaction and organization culture, which were said to be
related with the employee turnover.
Narang U (2013) attempted to find out the influence of HRM practices (career
development opportunities, supervisor support, working environment, rewards and
work-life policies) on employee retention in the banks. Findings reveled that, career
development, allocation of rewards regarding work and work environment showed the
highest values in relation to their perceived level of retention with the concern. It
means that the respondents were more inclined towards their career growth, rewards
and want to work in an environment where they get support from their colleagues.

Oginni B. O et. al., (2013) identified retention strategies that were in

existence in the private universities in Nigeria and investigated the extent to which
existing employee retention strategies affect organizational survival in the private
universities. The population of 3,634 academic staff of six private universities in the
Southwestern Nigeria were responded. Competitive pay, facilities, dignity and
respect, job security, training support, recognition and reward were identified as the
retention strategies commonly adopted as practice in the private universities in

31 
 
 

Nigeria. It was recommended that the private universities in Nigeria should sustain
and improve on the existing retention strategies for the survival of the organization.
Job security should be improved to encourage employees’ willingness to stay and be
committed to survival of the organization, also private universities should endeavour
to combine the practice of retention strategy variables and useless of single or
selective strategy and to watch its operating cost on retention strategies.

Coetzee M & Pauw D (2013) measured the retention factors in an asset

management company. Analysis showed that staff perceptions of leaders’ emotional
competency significantly influenced their satisfaction with important retention
factors. Organizations need to invest in interventions that enhance their managers’
emotional competency.
Hackney C (2013) taken up the study with the purpose to assist HR
managers to overcome the challenge of attraction and retention within the IT
industry. Data for this study was collected by means of an online survey, namely the
IT graduaterecruitmentsurveywasdoneon172 IT graduates in the South Africa. The
results indicated that the top attraction factors for IT graduates include interest in the
prospective organization’s specific products, the services it provides and the
employer’s brand in the industry; the overall reputation of the employer; career
opportunities; security of employment; and to be able to make use of the IT
qualification for which they studied.
Singh A (2013) examined worker retention strategies followed in the ITeS
industry in the Tri-city of Chandigarh, Mohali and Panchkula. Most of the
organizations were employing the monetary strategies such as performance linked
incentives, rewards, increment in salary, yet good number of innovative non-
monetary practices were also implemented to retain the manpower.
Suhasini N. & Naresh Babu T (2013) investigated the factors which
influence employee retention and reasons for employee leaving the organization.
Based on analytical study researcher suggested some recommendations for
employee retention in IT sector with special reference to study of selected IT
companies in Hyderabad, Andhra Pradesh. 100 IT employees were selected for the
study. The obtained results revealed that dissatisfaction with organizational culture,
compensation, motivation, development and challenging work environment were the
main reasons to leave the organization and career development opportunities,

32 
 
 

autonomy, environment of openness and trust, fair & equitable treatment in work
environment, effective utilization of employee skills and abilities, management
policies regarding reward and recognition of employee achievements and
developmental aspects in organization were the most influencing factors for
employee retention.

Latha K. L (2013) selected employees of manufacturing industries like

automobile spare parts, metallurgical industries, chemicals, pharmaceuticals,
engineering and electrical etc., located industrial parks of Nellore District, Andhra
Pradesh, for the study. This study identified that lack of growth opportunities and
salary are the major factors which force employees to change their jobs.

Yadav B S and Rokade V (2013) conducted study to find out the causes of
attrition and suggests the useful measures for employee retention. The survey was
done on 50 employees of HDFC Standard Life Insurance Company, using
convenience sampling method. A problem of employee turnover mounting
particularly at the lower level, most of the HDFC employees were satisfied with the
company policies, work-culture but still improvement was required in some of the HR
domain like performance appraisal, Job design, perks and benefits. The Work life
balance was the main reason to leave the organization.
Dyk J. V et. al., (2013) found that the employees’ satisfaction with retention
factors significantly predicted their job embeddedness. 206 respondents were from
South African client services companies. Retention factors such as training and
development, career opportunities, supervisor support and the characteristics of the
job were shown to significantly predict the participants’ sense of job embeddedness.
Satisfaction with training and development opportunities were the best predictor of
organizational fit and satisfaction with career opportunities were the best predictor
of organizational sacrifice.
Hlamalane M C (2014) designed to determine if manager support and work-
life balance can regulate the employee’s purpose to stay or leave the organization.
Non-probability purposive sampling was used with n = 172. The findings indicated
that manager support and work-life balance are predictors of intention to quit, with a
42% variance. The lack of manager support and work-life balance had an influence on
the intention to quit. The higher the manager support was perceived, the less the
intention to quit – the same holds true for work-life balance. The research identified

33 
 
 

factors that could be predicted the intention to quit and highlighted insight such as
manager support and work-life balance as key issues to consider in increasing
retention. Manager support and work-life balance played a pivotal role in employee
retention.
Patgar S and Vijayakumar N (2014) explored the influencing factors of
retention strategies. The data was collected from 100 employees in the organizations.
The findings of the study suggested variables such competitive salary package,
convenient and flexible work hours, recognition and rewards for good performance,
career growth and promotion opportunities, job security and training and development
programs played vital role in influencing employees to stay or to leave the
organization.
Self D. R & Self T. B (2014) used multilayered approach, which was
discussed the efforts organizations can use to identify potentially counterproductive
employee behaviour and the steps the organizations should take to provide
appropriate developmental strategies/programs to assist counterproductive employees,
as well as, provide appropriate disciplinary action, as the situation dictates. It was
highlighted that the potential financial drain and performance threats
counterproductive employees create for organizations, offers explanations as to why
counterproductive employees were often allowed to stay on the payroll, and provided
suggestions for preventing the selection of counterproductive employees, for
providing appropriate developmental.
Suresh L and Krishnaraj R (2015) studied the factors influence the
employee retention in Pharmaceutical sector. It also thrown light on what
organizations need to do to retain their employees. 150 employees of 3 different
pharmaceutical companies in Chennai were responded in the study. The findings
suggested that organizations should learn from exit interviews, employee’s
grievances. Complaints should be treated seriously and if required counselling should
be done to retain the best talent. Employee engagement played an important role in
employee retention.
Aslam M (2015) investigated the influence of work life balance on employee
performance and the moderating effect of transactional leadership on relationship
between work life balance and employee performance in education sector of Pakistan.
The study used sample of 150 respondents from eight universities of Islamabad and
Rawalpindi. The findings of study revealed the work life balance had significant
34 
 
 

positive effect on employee performance. The results also presented that transactional
leadership has significant moderating effect. The study recommended that
management of universities should consider the effect of work life balance while
making polices about leave and working load etc.
Oginni P & Saxena S (2015) attempted to explore the interrelationship
among the employee retention strategies and to identify the most prominent
employee retention strategies adopted by corporate sector. For this purpose, Primary
data for the research is collected with the help of questionnaire. The sample of the
study is 100 employees from 3 companies in corporate sector. Descriptive statistics
and correlation analysis had been performed to achieve the desired objective.
Results revealed that maximum focus was given to training and development
strategy and orientation strategy was found to be significantly and positively
correlated with all other strategies, except for training and development strategy and
employee’s idea and suggestion strategy. The rest of all the strategies were found to
be positively and significantly correlated with each other except for training and
development strategy.
Bidyut B. N & Barua M (2015) examined the relationships in between Job
security and employee retention, Job satisfaction and employee retention, Work life
balance and employee retention and Compensation with employee retention in the
Automobile service workshops of Assam. The result revealed that Job Security was
the most important factor for employee’s retention in their present job. The selected
100 respondents’ response was collected by visiting the authorised service
workshops of ten automobile manufacturers. Findings of this study had revealed that
the retention level of employees is above average and it was the high time for the
management attention towards enhancing the employee’s retention level.
Bharathi N. and Paramashivaiah P. (2015) examined whether variables had
an effect on involuntary attrition and personal factors on involuntary attrition,
voluntary attrition and behavioural intentions. The IT company’s employees from
Bengaluru city were selected for the study. Findings of the study revealed the facts
that Flexibility in work and time and communication flow in the company were the
environmental factors that required greatest attention for improvement. Coaching and
mentoring by superiors and career advancement were the training and development
factors that required most attention for improvement.

35 
 
 

2.4 STUDIES ON JOB ATTITUDE OF THE EMPLOYEES

Koch J L and Steers R M (2000) aimed to compare the relative predictive
powers of job attachment and job satisfaction with respect to turnover among a
sample of public employees; and to examine individual and job-related influences on
both attitudes. It was found that attachment was a more effective predictor of turnover
than overall satisfaction even when the alternative attitude was partial led out.
Kossek E E & Cynthia Ozeki  C (2000) examined the relationship between
work-family conflict and six work outcomes, performance, turnover, absenteeism,
organizational commitment, job involvement, and burnout. The results showed that
relationships between work-family policies and organizational effectiveness were
mixed and their connection to work-family conflict often under-examined. Work-
family conflict was a critical link that may shed light on policy impacts.
Elangovan (2001) indicated that there were strong casual links between stress
and satisfaction, stress and commitment. It was found from the study that, higher
stress leads to lower satisfaction, lower satisfaction leads to lower commitment, and it
was noted that lower commitment leads to greater intentions to quit, which in turn
further lowers commitment.
Martin G and Beaumont P (2003) examined on employee commitment
points out that there was need for employees to conduct themselves according to the
standards of the firm’s desired brand. The success of this hinges on the ability of
organizations to win employee faithfulness to the brand and developing organizational
commitment. They also observe that developing an 'employer of choice' strategy
could have been far reaching benefits in terms of employee commitment and support
for the brand.
McGuire M  et. al., (2003) conducted study on graduate students who looked
at reasons staff were leaving their jobs or their occupations. Three different tools were
used and the students found that job satisfaction was there with respect, recognition
and organizational commitment were predictable factors what employees want in their
jobs instead of money and benefits.
Herrbach, O et. al., (2004) studied the influence of employees' perception of
the external image of the company they work for on their intentions to leave. 801
French managers that attempted to incorporate the notion of perceived external
prestige (PEP). The results showed that the impact of PEP on intentions to leave was

36 
 
 

partially mediated by the two determinants of turnover in the model: organizational

commitment and job satisfaction.
Kotze K & Roodt G (2005) aimed to investigate major factors which
contributed for employee retention in the bank itself only. To achieve aforesaid
objective researcher collected the primary data through structured questionnaire. The
hypotheses tested by using statistical tools correction, regression, Anova. From the
study researcher found that organization commitment, job satisfaction, work cultures
were the factors contributed to the employee stay back in the same organization.
Alwis D et. al., (2006) studied the impact of the employees’ job attitudes (job
satisfaction, job involvement and organizational commitment) on employee retention.
researchers carried out field study was carried out and collected data from a sample of
175 operative and technical grade employees in apparel industry of western province
in Sri Lanka. It was found that job satisfaction, job involvement and organizational
commitment were related with the retention. Job satisfaction was more important in
predicting employee retention than other two factors because it scored higher mean
value.
Dockel A et. al., (2006) investigated precise retaining aspects which
encouraged the organizational commitment of high technology employees. A sample
of 94 professional technicians from a South African owned telecommunications
company based in the Gauteng province participated. The most relevant explanatory
factors were compensation, job characteristics, supervisor support, and work life
policies, had significant influence on organizational commitment in high technology
employees.
Jyoti & Venkatesh (2006) investigated that a retention strategy was a form of
positioning for an organization to gain a competitive edge in terms of keeping
valuable employees Strategies should be targeted at valuable, contributing employees.
Lack of satisfaction and commitment to the organization caused an employee to
withdraw and begin looking for other opportunities.
Taylor et. al. (2008) discovered the relationship between employee
commitment and their performance, and also found that organizational culture
characterized by high adaptability and a HRM system emphasizing high performance
work practices had, a direct and profound impact on employee commitment.
Deery M (2008) provided an overview of the key employee turnover literature
within the hospitality and tourism industry. It was found that job attitudes such as job
37 
 
 

satisfaction and organizational commitment, personal attributed such as positive and

negative affectivity, the role of WLB in employee turnover and, finally, the strategies
provided to ease high level of turnover.
Elizabeth Jean L (2008) explored the relationship between job satisfaction
and organizational commitment and influence of personal factors, using a sample of
86 employees at four IT companies in South Africa. The research findings indicated
that career anchors were partly related to employees’ job satisfaction and
organizational commitment and employees’ job satisfaction and organizational
commitment were related and also it was shown that personal factors differ
concerning career anchors, job satisfaction and organizational commitment.
Lange T et. al., (2010) collected data from public and private service sector
employees in Shillong. Findings of the results showed that the impact of both,
extrinsic and intrinsic moderating factors on Indian employees’ job satisfaction.
Nawab S et. al., (2010) taken up the study to find out the impact of teachers’
job satisfaction in public sector universities of Pakistan. The findings of the study
indicated that the satisfaction with work itself, quality of supervision and pay
satisfaction had significant positive influence on organizational commitment of
faculty members. The high level of organizational commitment and job satisfaction,
supervision, salary, coworkers and promotional opportunities were also found.
Hassan M et. al., (2011) carried out a study with the purpose to find out the
reasons and to know how to retain employees in leather sector of Pakistan. First line
and Second line managers of Leather industry of Pakistan. There were around 400
tanneries of leather in Punjab. The data was gathered from male 15 Leather Tanneries
and organizations located in Lahore, Sialkot, Shekupura, Muridkay and Kasur
because these selected tanneries carry 50% export share leather industry of Pakistan.
There was positive correlation between carrier prospects and attitude of employer,
employer loyalty, work life balance and job security. It was also found that the age
was associated with attitude of employer.
Bangcheng L et. al., (2011) surveyed 259 employees in the public sector
university in China. The study suggested that person-organization (P-O) fit was a
predictor of job satisfaction and turnover intention in a Chinese context and also the
findings of the study revealed that job satisfaction would work as a full mediator
between P-O fit and turnover intention.

38 
 
 

Asif Khan M (2011) conducted in Rawalpindi and Islamabad. The employees

of public and privatized banks were responded in the study. It was found that
employee selection, training and development, work design, rewards and
compensation reported high, positive and significant and it was also revealed that
internal service quality in human resource had positive and significant effect on
employee job satisfaction and job satisfaction had positive and significant effect on
retention.
MignonacK and Richebe N (2012) investigated how employees' attribution
of disinterested organizational support was related to employee retention. Results
showed that perceptions of disinterested support decrease employee voluntary
turnover through enhancing perceptions of organizational support and organizational
commitment, and decreasing turnover intention.
Melinde C and Joāo, T.F. (2012) explored job retention factors, perceived
career mobility and organizational commitment among early career employees. The
results suggested that Younger Black employees regarded career development
significant for career flexibility and organizational commitment. Employee retention
strategies for professional staff members in the financial sector should be taken into
account their need for work–life balance, and skills utilization and competitive
compensation.
Tladinyane R (2013) examined the relationship between employees’
psychological career meta-capacities and their retention-related dispositions. The
results indicated a relationship between the psychological career meta-capacities and
the retention- related dispositions. Structural equation modelling indicated a good fit
of the data with the canonical correlation-derived measurement model.
Rajanbabu H et. al., (2013) investigated the relationship among pay
satisfaction, job satisfaction and turnover intent. The collected data from 200
registered nurses (RNs) in a unionized hospital were analyzed. The findings have
shown that while pay satisfaction affects turnover intent, job satisfaction might be a
more crucial variable in terms of nurses’ turnover.
Shubaka L S (2014) studied the relationship between employee retention
strategies and commitment in insurance companies in Kenya. The population of the
study comprised of all the 46 insurance companies in Kenya. The respondents were
the heads of human resource function in the insurance companies. The study found
out that the insurance companies have adopted several strategies to retain its
39 
 
 

employees. These strategies included annual review of salary, training, offering

performance related incentives, open forums, open and fair resource policy, clear
career plan and policies on employee promotion, information sharing between
supervisors, flexible work schedules for employees and coaching and mentoring
program. The study found out that the employees are committed to the insurance
companies as a result of satisfaction they receive from their needs being fulfilled
through different strategies.
Waghmare H.Y (2014) aimed to know about the employee’s retention
strategy adopted by the Axis Banks in Kalyan city. Job satisfaction of the employees
working in Axis Bank in Kalyan city and efforts made by the bank to retained their
employees. Findings of the study explored that, there was a great need to recognize
the importance of the employee retention in order to keep the cost of employee’s
turnover low. There were many factors that are ignored by the banks but are important
for the effective performance of the employees. Therefore, it was necessary for both
the employees and the Manager must work in a team and had an effective
collaboration with each other while performing in the team work. These factors must
also provide the guidance to the achievement of employee retention in banks.
Kiruthiga V and Magesh R (2015) collected data from 500 hotel employees
by questionnaire designed to elicit their attitudes to employee retention strategies and
perception with respect to job satisfaction. An examination of the influence of
employee retention strategies and job satisfaction revealed that employee benefits and
reward management, working environment, management support and employee
development played key role in influencing job satisfaction.
Jugurnath B et. al., (2016) explored the issues that affect employee’s
satisfaction and relationship between employee’s satisfaction and retention. The
results showed that the different determinants reward and recognition, involvement,
physical work conditions, training and individual development, supervisor support,
work life balance, work relations were positively correlated to employee satisfaction
and also there was relationship between employee satisfaction and retention.

40 
 
 

2.5 CONCLUSION ON REVIEW OF LITERATURE

In view of the above literature relating to Employee Retention Strategy and

Job Attitude of the employees in Private Sector and IT companies various factors
influencing employees’ decision to stay back or leave the company and positive and
negative attitude of the employees towards their decisions. Further all the studies
found that Employee Retention Strategy is based on the many dependent factors and
Job Commitment, Job Involvement and Job Satisfaction of the Employees. But
company strategy to retain the employees is varies from company to company and it
is difficult to understand reasons behind employees to remain in the company and
leave the company. None of the studies covered Employee Retention Strategy and Job
Attitude (Job Commitment, Job Involvement and Job Satisfaction) of employees
working in small, medium and large sector private IT companies.

To understand the above problem, the present study is taken up to know the
perception of Employees and Management of among small, medium and large IT
companies, to explore the relationship between Employee Retention Strategy and Job
Commitment, Job Involvement and Job Satisfaction and to investigate the
demographic factors contributing to Employee Retention Strategy and Job
Commitment, Job Involvement and Job Satisfaction. Employee Retention in a
challenging task for the companies and it is depending upon the companies HR
policies, benefits and other facilities. Only few studied relating to the perception of
employees and management relating to retention strategy.
There are research gaps on various concepts on employee retention strategies.
Not many studies are documented in the area of Employee Retention Strategy along
with job commitment, job involvement, Job Satisfaction. Each company follows its
own Employee Retention Strategy and Employees Attitude towards the company
differs from each other. Present study is an attempt to fill up these gaps. The Research
Problem: Therefore, it was thought timely to identify and select the subject of
Employee Retention Strategy as a research problem.

2.6 RESEARCH GAP

The retention of employees in private sector enterprises, more particularly IT

companies’ employees of small, medium and large companies in Bengaluru city has
not been fully addressed. Many questions relating to IT sector employer about

41 
 
 

retention have not been reported yet. Therefore, this study aims to understand the
factors influencing Retention Strategy and Job Attitude (Job Commitment, Job
Involvement and Job Satisfaction) among small, medium and large private IT sectors’
employees in Bengaluru city. The study aims at providing relevant information
required by Management to devise retention strategy specific to IT Sector among all
the three levels of IT sectors.

2.7 NEED FOR THE STUDY

In this knowledge era, service sector plays a vital role, particularly IT sector
role is very important to satisfy the needs and expectations of their employees.
Because of a high standard of living, bunch of expectation, searching for new jobs
based on their requirements, and when it is not full-filled by the organization, it leads
to high attrition in this sector. The problem is very extremely acute in IT sector, with
employees joining and living within short span of time. Employee attrition is always
on the negative side of the organization and also it’s a challenging task and attrition
leads to loss of skilled workforce, loss in productivity, loss in market share and
profitability. Therefore, retaining of skilled workforce is vital task for the organization
in a changing environment. An attempt is therefore made to understand if there is a
significant difference in response among small, medium and large level of Indian IT
companies located in Bengaluru city and to help the management of these IT
companies to design an Employee Retention Strategy specific to their company to
control attrition. This study attempts to determine Employee Retention Strategy in
small, medium and large level of Indian IT companies located in Bengaluru city and
to explore the main retention strategy for IT sectors’ employees and also this study
attempts to understand about personal factors which influence employees to stay back
in the organization and strategy to retain the talented employees in the organization.

2.7 STATEMENT OF THE PROBLEM

Employees are very important assets in any business for the success and
without them there is no business. However, according to the (2008) Bureau of
Labour Statistics, more employers today are finding that very less period
approximately 18 to 24 months’ service rendered by the employees. It has become a
key challenge in organizations to retain the best and most desirable employees. With

42 
 
 

labour being unpredictable today's employers prefer to have a stable, committed and
flexible work schedule.

Employee retention issues are emerging as the most critical workforce

management challenges of the immediate future. Researchers have shown that in the
future, successful organizations will be those which adapt their organizational
behavior to the realities of the current work environment where longevity and success
depend upon innovation, creativity and flexibility. In fact, the dynamics of the work
environment will have to reflect a diverse population comprised of individuals whose
motivations, beliefs and value structures differ vastly from the past and from one
another.

The job poaching and job hopping has become the order of the day, resulting in
high levels of attrition among IT companies. Retaining talented workforce in the
company is challenging task for management of IT companies. The study aims at
providing relevant information required by management to evolve retention strategy
specific to the IT Sector. The study aims to understand the factors influencing
Retention Strategy and Job Attitude (Job Commitment, Job Involvement and Job
Satisfaction), of IT companies located in Bengaluru city. The study also aims to
investigate differences between all the three types, small, medium and large of IT
companies and to suggest suitable employee retention strategy.

Research Questions

The problem under the investigation comprises following major questions:

1. What is the perception of employees and management about factors

influencing the employees to retain in the Private Sector Enterprises in
Karnataka?
2. What is the perception of employees and management about factors
influencing the employees to leave the Private Sector Enterprises in
Karnataka?
3. Is there any relationship between employee retention strategy and Job
Commitment of the employees of Private Sector Enterprises in Karnataka?
4. Is there any relationship between Employee Retention Strategy and Job
Involvement of the employees of Private Sector Enterprises in Karnataka?

43 
 
  

5. Is there any relationship between Employee Retention Strategy and Job

Satisfaction of the employees of Private Sector Enterprises in Karnataka?
6. Do demographic factors influence Employee Retention Strategy and Job
Commitment, Job Involvement and Job Satisfaction of Private Sector
Enterprises in Karnataka?

2.9 OBJECTIVES OF THE STUDY

For this proposed study on Employee Retention Strategy (ERS) the following
objectives were formulated:

1. To study the perception of employees and management about factors

influencing to retain the employees in Private Sector Enterprises in Karnataka.
2. To study the perception of employees and management about factors
influencing the employees to leave the Private Sector Enterprises in
Karnataka.
3. To investigate the relationship between Employee Retention Strategy and Job
Commitment of Private Sector Enterprises’ employees in Karnataka.
4. To explore the relationship between Employee Retention Strategy and Job
Involvement of Private Sector Enterprises’ employees in Karnataka.
5. To study the relationship between Employee Retention Strategy and Job
Satisfaction of Private Sector Enterprises’ employees in Karnataka.
6. To investigate the influence of demographic factors on employee Retention
Strategy and Job Commitment, Job Involvement and Job Satisfaction of
Private Sector Enterprises in Karnataka.
2.10 HYPOTHESES

The following are the hypotheses formulated and tested in this study:

Ha1: There is a difference in perception of employees on various factors which

influence to retain in the Private Sector Enterprises in Karnataka
Ha2: There is a difference in perception of employees on various factors which
influence to leave the Private Sector Enterprises in Karnataka
Ha3: There is a difference in perception of management on various factors which
influence employees to retain in Private Sector Enterprises in Karnataka
Ha4: There is a difference in perception of management on various factors which
influence employees to leave the Private Sector Enterprises in Karnataka

44 
 
 

Ha5: There is a significant difference in Employee Retention Strategy and Job

Commitment, Job Involvement and Job Satisfaction of the Private Sector
Enterprises’ employees in Karnataka.
Ha6: There is a relationship between Employee Retention Strategy and Job
Commitment, Job Involvement and Job Satisfaction of the Private Sector
Enterprises’ employees in Karnataka.

Ha7: Factors such as age, gender, education, length of service in present

organization, financial commitment, residential status and total experience
significantly influence to Retention Strategy and Job Commitment, Job
Involvement and Job Satisfaction of the Private Sector Enterprises in
Karnataka.

2.11 SCOPE OF THE STUDY

The present study is confined to employee retention strategy of private sector

enterprises. The private sector enterprises are sub-divided into manufacturing and
service sector. In Karnataka, 47,389 private sector enterprises were active i.e. 5.33%
of India (Source: Central Statistical Organization, GOI, 2012-13). The attrition rate
was very high double digits in all sectors. According to Business Standard (2012), the
attrition rate was found to be very high in IT sector at 31%, followed by telecom
(26%), banking and financial services (23%), aviation and hospitality (22%), real
estate (15%), FMCG (21%), automobile and manufacturing (19%). The present study
is restricted to private IT sectors only, which has higher attrition rate. In the present
study, IT companies which are located in Bengaluru city have been selected.
According to NASSCOM official’s, the total number of member companies registered
with NASSCOM are 1866 companies. Member companies are in the business of
software development, software services, software products, IT-enabled/BPO services
and e-commerce. The present study is about Employee Retention Strategy and Job
Attitude (Job Commitment, Job Involvement and Job Satisfaction) of the selected
private IT enterprises. Out of 1866 member companies, 247 IT companies are located
in Bengaluru City. Out of these, 30 IT companies are selected for the present study
and from 30 IT companies, 1320 employees and 30 HR managers are selected for
study.

45 
 
 

2.12 RESEARCH METHODOLOGY

2.12.1 RESEARCH DESIGN

In this present investigation, the research design adopted is descriptive

research design. While developing, research design the private IT sectors, IT sector
employees and HR managers are taken as independent variables and Employee
Retention Strategy (Compensation, Job Characteristics, Job Flexibility, Working
Environment, Training and Career Development and Work Life Balance) and Job
Commitment, Job Involvement and Job Satisfaction are taken as dependent variables.

2.12.2 SAMPLE OF THE STUDY

In the present study, quota and purposive sampling techniques are used and
1320 Employees and 30 HR managers are taken. Among them there were male and
female employees, who represents IT sectors from Bengaluru city, are taken as
samples for this study. Membership companies are classified into small, medium and
large companies.

• Small: Companies with gross revenues of less than Rs. 50 Crores

• Medium: Companies with gross revenue between Rs. 50 – 200 Crores
• Large: Companies with gross revenue of over Rs. 200 Crores

Table 2.01: Showing Sample Distribution of the study

Classification No. of Employees Percentage (%)

Small 576 43.64
Medium 438 33.18
Large 306 23.18
Total 1320 100

Table 2.02: Showing the Name of Small Companies

Sl. Name of the Company Employees HR Managers

No.
1. 4C-Learning Solutions Pvt Ltd 54 1
2. Dawn Consulting 60 1
3. Happiest Minds Technologies Pvt Ltd 48 1

46 
 
 

4. Xchanging Technology Services (India) Pvt 60 1

Ltd
5. Caliban Software Solutions Pvt Ltd 42 1
6. Mayflower Language Services Pvt Ltd 66 1
7. CygnusPro Software Solutions Pvt Ltd 72 1
8. PEOL Technologies Pvt Ltd 48 1
9. Meteonic Innovation Pvt Ltd 60 1
10. Chipmonk Technologies Pvt Ltd 66 1
Sources: NASSCOM, Bengaluru Regional Office.

Table 2.03: Showing the Name of Medium level of Companies

Sl. Name of the Company Employees HR Managers

No.
1. Brickwork India Pvt Ltd 36 1
2. Innovalues Technologies 42 1 
3. Ahana Systems and Solutions (P) Ltd 54 1 
4. Neogroup Services India Pvt Ltd 54 1 
5. Blueocean Market Intelligence Services Pvt 36 1 
Ltd
6. Prospance Infotech Pvt Ltd 42 1 
7. Quest Informatics Pvt Ltd 48 1 
8. Silicomp India Pvt Ltd 36 1 
9. we45 Solutions India Pvt Ltd 42 1 
10. Dexler Information Solutions Pvt Ltd 48 1
Sources: NASSCOM, Bengaluru Regional Office.

Table 2.04: Showing the Name of Large Companies

Sl. Name of the Company Employees HR Managers

No.
1. Accenture Service Private Limited 30 1
2. Infosys Limited 36 1 
3. Wipro Technologies (Wipro Limited) 30 1 
4. Mind tree 24 1 
5. IBM 30 1 

47 
 
 

6. Goldman Sachs Pvt Ltd 30 1 

7. Mphasis 36 1 
8. Sonata Software Ltd 24 1 
9. Infinite Computer Solution(India) Ltd. 36 1 
10. ASM Technologies Ltd. 30 1 
Sources: NASSCOM, Bengaluru Regional Office.

2.12.3 MEASURES USED TO COLLECT THE DATA

Employee Retention Strategy Questionnaire

An employee retention strategy questionnaire was used to collect the primary

data. This questionnaire consists of six strategies like, Compensation, Job
Characteristics, Job Flexibility, Working Environment, Training and Career
Development and Work Life Balance. This is a five point Likert Scale (ranging from
1= Strongly Disagree to 5= Strongly Agree).
Table 2.05: Showing the statements constituting various variables of Retention
Strategy
SI. No. Name of strategy No of statements
1 Compensation 9
2 Job Characteristics 10
3 Job Flexibility 13
4 Working Environment 12
5 Training and Career Development 6
6 Work Life Balance 8

Job attitude scale

Job Attitude Scale (JAS), was used to measure the attitude of the employees
towards their job. The scale focuses on three dimensions such as Job Commitment,
Job Involvement and Job Satisfaction. The Job Attitude Scale is a self -administered
one. This is also a five point Likert scale (ranging from 1= Strongly Disagree to 5=
Strongly Agree).

48 
 
 

Table 2.06: Showing the statements constituting various variables of Job

Attitude
SI. No. Job Attitude No of statements
1 Job Commitment 11
2 Job Involvement 9
3 Job Satisfaction 10

2.12.4 PILOT STUDY

Before the final administration of the scales on main samples of the study, a
pilot study was conducted to verify the suitability of all the measures. This included
the composite sample of 540 IT employees and 30 IT HR managers. This sample was
also selected, from which the main sample was selected. Further reliability and
validity of the scales also has been checked for the sample in the study.

Table 2.07: Showing the Cronbach’s the reliability Coefficient for questionnaire

SI. No. Type of Strategy Reliability Coefficient Cronbach

Alpha
1 Compensation 0.802
2 Job Characteristics 0.827
3 Job Flexibility 0.917
4 Working Environment 0.905
5 Training and Career Development 0.809
6 Work Life Balance 0.748
7 Job Commitment 0.812
8 Job Involvement 0.732
9 Job Satisfaction 0.811

As far as validity is concerned, the concurrent validity is established by

correlating all the variables in all possible ways and results are presented in the table
as below:

49 
 
  

Table 2.08: Showing the Correlation Coefficient for the Variables under Study in
all Possible Ways

Characteristics

Job Flexibility
Compensation

Development

Commitment
Environment

Training and

Involvement

Satisfaction
Work Life
Working

Balance
Career
Job

Job

Job

Job
Variables

.673*** .764*** .531*** .489*** .484*** .825*** .889*** .843***

Compensation
Job .604*** .829*** .416*** .528*** .804*** .816*** .814***
Characteristics
.421*** .712*** .468*** -.490*** -.551*** -.469***
Job Flexibility
Working .456*** .592*** .871*** .875*** .880***
Environment
Training and .498*** .784*** .834*** .798***
Career
Development
-.729*** -.798*** -.749***
Work Life
Balance
Job . .658*** .891*** .712***
Commitment
Job .756*** .546***
Involvement
Job
Satisfaction
***p<0.01; Very Highly Significant

The above table clearly indicates (based on significant correlations) that the
scales are highly valued and are applicable for the present sample in the study.

2.12.5 ETHICAL ISSUES

1. In the study no one is forced (both Employees and HR managers) to answer

the questionnaire.
2. The nature and the purpose of the study were explained before administering
the questionnaires.
3. Confidentiality was assured to the participants.
4. Consent form was filled before administering the questionnaires.

2.12.6 DATA COLLECTION

In the present study, primary and secondary data were collected. First,
secondary data were collected with the help of NASSCOM (National Association of
Software and Services Companies), Bengaluru Regional Office, Bengaluru. The
names of registered IT sectors were observed, then these were classified into three

50 
 
 

groups based on the revenue of the sectors as small, medium and large IT sectors.
After classification of the IT sectors into three groups, companies were selected and
primary data was collected. In the collection of primary data, at initial stage
participants were informed about the purpose of the study and their consent was
taken. After taking the consent of the participants, demographic questionnaire was
administered to obtain an individual’s personal information. Then participants were
asked to answer for both the questionnaires. Participants have completed both of the
questionnaires that aim to assess retention strategy and job attitude. The responses
given by each person are carefully scrutinized for wrong marking and omission. The
answer sheets which are complete in all respects were retained and the rest were
rejected. Each response sheet is hand-scored.

2.12.7 ANALYSIS OF RESULTS

Statistical Techniques Applied

Descriptive Statistics, Analysis of Variance, Correlation Analysis and Step
Wise Multiple Regression Analysis are computed with the help of the computer by
using software “SPSS” (21st Version).
Descriptive Analysis
The descriptive procedure displays uni-variate summary statistics for several
variables in a single table and calculates standardized values. Descriptive statistics
provide a general description of the sample in the form of central tendencies and
measures of variability. Descriptive statistics are used to describe the main features of
the collection of data in quantitative terms.
Analysis of variance (ANOVA)
The statistical technique of Analysis of Variance makes a single overall
decision to check whether a significant difference is present among three or more
samples. The ANOVA is applied in the present study to verify the main hypothesis
Ha5 (Ha5.1 and Ha5.2.).

Pearson’s Correlation Coefficients

The statistical technique of Pearson’s Correlation analysis measures how
variables or rank orders are related and two variables can be perfectly related. The
above technique is applied to verify the main hypothesis Ha6 (Ha6.1 to Ha6.15). It means
to check the significance in relation of retention strategy and Job Attitude (Job

51 
 
 

Commitment, Job Involvement and Job Satisfaction) of small, medium and large
levels of IT sectors’ employees, the correlation technique is applied.

Stepwise Multiple Regression Analysis2

In order to determine the relationship of multiple predictors on a single
criterion, Stepwise Multiple Regression is used. The general purpose of multiple
regressions is to learn more about the relationship between several independent or
predictor variables and a dependent or criterion variables. The variable that explains
the greatest amount of variance in the dependent variable will enter first; the variable
that explains the greatest amount of variance in conjunction with the first will enter
second and so on. In other words, the variable that explained the greatest amount of
variance unexplained of the variable already in the equation enter the equation at each
step and one or more of the variables may never be entered into the regression
equation if the statistical criterion is not met (Nie et al., 1975).
In this technique, the regression of dependent variables or criterion variable
(Y1, Y2, Y3, Y4, Y5, Y6, Y7, Y8, and Y9) on all independent variables or predictor
variables (X1 to X7) is calculated. This analysis is performed to study the influence of
as age, gender, education, length of service in present organization, financial
commitment, residential status and total experience on Compensation, Job
Characteristics, Job Flexibility, Working Environment, Training and Career
Development, Work Life Balance, Job Commitment, Job Involvement and Job
Satisfaction. The outcome of this analysis is used to identify the variable that would
significantly contribute to the dependent variables.

2.12.8 CHAPTERIZATION SCHEME

The entire report will be presented in five chapters as presented below:

Chapter - I: Introduction

This chapter gives with an overview Employee Retention Strategy, Global

Perspective of Retention Management, Indian Perspective of Retention Management,
Operational Definitions, Employee Retention Strategy: A Theoretical Perspective,
                                                            
2
The variable that explains the quarter amount of variance will enter first; the variable that explains
the greater amount of variance in conjunction with the first will enter second and so on. In other
words, the variable that explains the greatest amount of variance unexplained by the variables already
in the equation enter the equation at each step. And one or more of the variables may be entered into
the regression equation if the statistical criterion is not met. (Normann H. Nie et al (1975), SPSS, 2nd
edition, New York. Mc Graw Hill Book Co, P-345)

52 
 
 

Introduction to Employee Retention, Growth of Strategies for Employee Retention in

Different Periods, Importance of Employee Retention and Challenges for the
Organization to Retain the Employees.

Chapter - II: Employee Retention Strategy: A Review of Literature

This chapter is devoted to an empirical review of related literature provides a strong

foundation and generates insights in the mind of research. Reviewed theories and
conducted studies are essential for a researcher to set the objectives, research
questions and formulate the hypotheses as well as design the entire research. Hence in
the present study also exhaustive effort is made to review the studies of related
variables involved in the present investigation, the Research Gap, The Need for the
Study, The Statement of the Problem, Objectives of the Study, Hypotheses, Scope of
the Study Research Methodology – Research Design, Limitations of the Study and
Scheme of Chapterization.

Chapter - III: Profile of the Companies

This chapter provides detailed, IT Industry in India, NASSCOM, Employment

Opportunities and Challenges in IT Sector, Reasons of Attrition in IT Sector,
Prevention of Attrition: NASSCOM, Retention Strategy Practices of the IT
Companies, Profile of Small IT Companies, Profile of Medium IT Companies and
Profile of Large IT Companies.

Chapter - IV: Effectiveness of Employee Retention Strategy: Data Analysis

This chapter consists results obtained in the present study. Profile of employees,
factors influencing employees to retain and leave the organization from employees
and HR managers perception, difference among small, medium and large IT sectors
on Employee Retention Strategy, Job Commitment, Job Involvement and Job
Satisfaction, relation between Employee Retention Strategy, Job Commitment, Job
Involvement and Job Satisfaction, personal factors contributing to Employee
Retention Strategy, Job Commitment, Job Involvement and Job Satisfaction.
Chapter - V: Findings and Suggestions
This chapter summarized the findings, suggestions, conclusion and scope for further
research.

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2.12.9 LIMITATIONS OF THE STUDY

The present study is limited to a few aspects. Firstly, the present study
confined to Bengaluru City. Hence historical data on the subject is limited, very few
employee retention strategies and perceived attitude are considered in the present
study and only limited variables are assessed. As employees of IT sectors are very
busy in their work and very difficult to get them to collect the data, sample size is
restricted for 1320 employees and 30 HR managers. Further, the sample is confined to
only small, medium and large Private Sector Enterprises (IT sector) operating in
Bengaluru City. Hence, it is difficult to draw precise generalizations regarding the
implications of the study. The findings in this study, interpretations and conclusions
drawn are best seen within these limitations.

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