ABSTRACT

Human resources are the means of support of any organization. Today most of the
organisations are technology driven, yet they need people to run the technology. People are
the most important and dynamic resources of any organization. Today, acquiring, managing
and retaining talent is biggest challenge that organisations are facing. Employee retention has
become a major concern for corporate in the current scenario. Individuals once being trained
have a tendency to move to other organizations for better prospects. Lucrative salary,
comfortable timings, better ambience, growth prospects are some of the factors which prompt
an employee to look for a change. Whenever a talented employee expresses his willingness to
move on, it is the responsibility of the management and the human resource team to intervene
immediately and find out the exact reasons leading to the decision. The research findings
proves that there exist a significant relationship between the factors such as work life balance,
work environment, work culture, career opportunities, and company leadership with
employee retention.

CHAPTER I
INTRODUCTION
1.1 PROJECT PROFILE - EMPLOYEE RETENTION
Employee retention can be stated as the processes in which employees are encouraged
or motivated to stay with the organization for the maximum period of time or until the
completion of the project. It is beneficial both for the organization as well as for the
employees and the employers. Employee retention is also important because when an
employee remains in an organization for a longer period then he/she becomes the storehouse
of knowledge and secrets of the organization. But when he/she leaves the current
organization and joins a new organization then it becomes positive for the later and negative
for the previous one as because knowledge and secrets are moving with him/her only. In
addition, organization's status is also at risk where turnover rate is relatively high. The
customers do not feel positive dealing with an organization which is unable to keep their
employees. Again, constant high turnover rate creates disturbances and increased workloads
in remaining present employees. So, when employees notice that their colleagues are going to
another organization, automatically their efficiency levels go down.
Employees retaining is the most imperative target for the organization because hiring
of qualified candidate is essential for organization but their retention is more important than
hiring, because a huge amount is spending on the orientation and training of the new
indicated employees. Research finds that the cost of replacing of old employees with new is
estimated up to twice the employee annual salary. When Employee leaves the job,
organization lost not only employee, but also lost the customers & client who ware loyal with
the employee, knowledge of production, current projects, competitor and past history of the
organization. Organizations make enormous efforts to attract handfuls of employees and
sustain them in the organization. In today's business scenario only high salary and designation
is not significant for employees to retain them in the organization, but others factors also play
important role in their retention. The intent of this research is to how the organizations retain
the talented employees in the organization focusing on the factors i.e. career development,
leave policy, leadership style, work environment, remuneration & rewards, Organization
Justice, and performance appraisal, and this research also helpful to know the determent that
why employees leave the organization.

Managing retention of promising employees is considered as fundamental mean of

achieving competitive advantage among the organizations. In his studies, he identified
compensation, appreciation; working relationship and good communication are among major
critical success factors to retain the talented employees. The main demands on management
in any organization are keeping motivated and dedicated human resources. It is because
keeping the employees in the organization rather than hiring is more important for success of
the organization. The retention of employees is not only important but retention of valued
skills is more important. Human resource department plays the dynamic role for retention of
employees.
Factors Affecting Employee Retention
Fitz-Enz, recognized that employee retention is not influenced by a single factor, but
there are hosts of factors which are responsible for retaining employees in an organization.
Management need to pay attention to factors such as compensation & rewards, job security,
training & developments, supervisor support culture, work environment and organization
justice.
Walker, identified seven factors that can enhance employee retention: (i)
compensation and appreciation of the performed work, (ii) provision of challenging work,
(iii) chances to be promoted and to learn, (iv) invitational atmosphere within the organization,
(v) positive relations with colleagues, (vi) a healthy balance between the professional and
personal life, and (viii) good communications. Together, these suggest a set of workplace
norms and practices that might be taken as inviting employee engagement.
Factors Affecting Retention

Compensation

Reward and Recognition

Work-Life balance

Work environment

Training and development

Leadership

Compensation
Compensation is the most important factor of whole retention process. Compensation
packages may differ from organization to organization. Generally employees always have
high expectations of their compensation package from the organization that they are going to
recruit. So, an attractive compensation always helps to retaining good employees which are
inevitable part of an organization because organization invests a lot of money on their
recruitment, training and orientation. Compensation is considered as the most important
factor for attracting and retaining the talent of an organization.
Reward and Recognition
The term reward is something that the organization offers to the employees in
response of the work as well as performance and something which is desired by the
employees. The reward is important because it has an enduring impression on employees
which, in turn, gives the employees an impression that they are valued in the organization.
Work-Life Balance
Work place flexibility is the major concern in todays business. Without work place
flexibility, money is not alone sufficient for holding employees for a longer time. Many
researchers tested the impact of work and family benefits which comprise of childcare
information, flexible schedules, childcare assistance and parental leave on organization
commitment.
Work Environment
Satisfy and retain employees by providing them an appropriate level of privacy and
sound control on work environment which enhances the motivation levels to commit with the
organization for the long term. Individual needs of an employee in an organization as it will
encourage commitment and provide a suitable work environment.
Training and Development
One of the important factors in employee retention is investment on employee training
and career development. Organization always invests in the form of training and development
on those workers from whom they expect to return and give output on its investment. The
organizations should keep the leading edge in this competitive world by having their
employees well trained in the latest technologies.

Leadership
Leadership is the ability of a company's management to make sound decisions and
inspire others to perform well. Effective leaders are able to set and achieve challenging goals,
to take swift and decisive action even in difficult situations, to out perform their competition,
to take calculated risks and to persevere in the face of failure. Strong communication skills,
self-confidence, the ability to manage others and a willingness to embrace change also
characterize good leaders.
Need for Employee Retention
Employee Retention refers to the techniques employed by the management to help the
employees stay with the organization for a longer period of time. Employee retention
strategies go a long way in motivating the employees so that they stick to the organization for
the maximum time and contribute effectively. Sincere efforts must be taken to ensure growth
and learning for the employees in their current assignments and for them to enjoy their work.
Employee retention has become a major concern for corporate in the current scenario.
Individuals once being trained have a tendency to move to other organizations for better
prospects. Lucrative salary, comfortable timings, better ambience, growth prospects are some
of the factors which prompt an employee to look for a change. Whenever a talented employee
expresses his willingness to move on, it is the responsibility of the management and the
human resource team to intervene immediately and find out the exact reasons leading to the
decision.
Benefits of Employee Retention
An organization enjoys following benefits due to employee retention:

Existing employees skills, talent, and values are known to the organization.

Existing employees cultural fit, performance, attitude, etc. are already judged.

Existing employees aspirations and expectations are clear

Employees adjustment with the companys climate and environment.

Cost of recruitment and training will not be incurring.

Even the employees family members get adjusted with the companys environment.

Challenges in Retaining Employees

In the current scenario, a major challenge for an organization is to retain its valuable and
talented employees. The management can control the problem of employees quitting the
organization within no time to a great extent but cant put a complete full stop to it. There are
several challenges to it.

Monetary dissatisfaction is one of the major reasons for an employee to look for a
change. Every organization has a salary budget for every employee who can be raised to
some extent but not beyond a certain limit. Retention becomes a problem when an
employee quotes an exceptionally high figure beyond the budget of the organization and
is just not willing to compromise. The organization needs to take care of the interests of
the other employees as well and cant afford to make them angry. The salaries of the
individuals working at the same level should be more or less similar to avoid major
disputes amongst employees.
A high potential employee is always the center of attention at every workplace but one
should not take any undue advantage. One should understand the limitation of the
management and quote something which matches the budget of the organization. An
individual should not be adamant on a particular figure, otherwise it becomes difficult for
the organization to retain him. Remember there is a room for negotiation everywhere.

In the current scenario, where there is no dearth of opportunities, stopping people

to look for a change is a big challenge. Every organization tries its level best to hire
employees from the competitors and thus provide lucrative opportunities to attract them.
Employees become greedy for money and position and thus look forward to changing the
present job and join the competitors. No amount of counselling helps in such cases and
retaining employees becomes a nightmare.

Individuals speak all kind of lies during interviews to get a job. They might not be
proficient in branding but would simply say a yes to impress the recruiter and grab the
job. It is only later do people realize that there has been a mismatch and thus look for a
change. Problems arise whenever a right person is into a wrong profile. An individual
loses interest in work whenever he does something out of compulsion. The human
resource department should be very careful while recruiting new employees. It is really
important to get the reference check done for better reliability and avoid confusions later.

Some individuals have a tendency to get bored in a short span of time. They might
find a job really interesting in the beginning but soon find it monotonous and look for a
change. The management finds it difficult to convince the employees in such cases.
Individuals must also understand that every organization has some or the other problem
and adjustment is required everywhere, so why not in the present organization? It
becomes really difficult for the HR Department to find out what exactly is going on in the
minds of the individual. An individual should voice his opinions clearly to make things
easier for the management.

Unrealistic expectations from the job also lead to employees looking for a change.
There is actually no solution to unrealistic expectations. An individual must be mature
enough to understand that one cant get all the comforts at the workplace just like his
home. Individuals from different backgrounds come together in an organization and
minor misunderstandings might arise but one should not make an issue out of it.
An individual must not look for a change due to small issues. One needs time to make his
presence feel at the organization and must try his level best to stick to it for a good
amount of time and ignore petty issues.

1.4 OBJECTIVE OF THE STUDY

To study the significant factors influencing the retention of employees.

To understand the relation between retention and various factors affecting the

employee satisfaction.
To understand the level of employee satisfaction on talent retention measure carried

out at the company with respect to gender.

To understand satisfaction level on working environment with respect to years of
experience.

1.5 SCOPE OF THE STUDY

The scope of the study is to understand the factors that contribute to the retention of
employees. The expectation of employees from the organization can be well understood from
this study. The study provides handful of information to the organization to understand the
needs of employees and to improve the factors that contribute retention of employees.
1.5 LIMITATIONS OF THE STUDY
The limitations of the study are

The study is totally dependent upon respondents view which may be biased in nature.
The study is only applicable to Bodyland Garments Pvt. Ltd., Tiruppur (Main Branch)
Some of the respondents were afraid to give true information in some cases.

CHAPTER II
REVIEW OF LITERATURE

Davis Et Al.,(1985)1 stated that job satisfaction is a combination of positive and

negative feelings that workers have towards their work. When a worker joins a business
organization, he brings with him the needs, desires and experiences which he expects from
his job. Job satisfaction represents the extent to which expectations matches with the real
awards. Job satisfaction is closely linked to that individual's behavior in the work place.
Lawler(1990)2 company adopt the strategy of low wages if the work is simple and
requires little training and companies compete in high labor markets adopt the high wages
strategy. Some researchers argue that on the company side competitive compensation
package is the only strong commitment and also build strong commitment on the workers
side. However, the contribution of compensation towards retention, help in retention of
employee irrespective of their skill and contribution to the company and it likely affect both
turnovers desirable and undesirable.
Greenberg (1990)3 define the organizational justice that it is term refer to the
treatment of employees by the organizations in just and fair manner. The popular Oxford
dictionary defines the meaning of word justice as the quality of being just or fair, fairness.
In daily life the word justice refer to righteousness. However in organizational research,
Justice is social construction which means the process is considered to be just if perceived by
the employees.
Fitz-Enz (1990)4 recognized that employee retention is not influenced by a single
factor, but there are hosts of factors which are responsible for retaining employees in an
organization. Management need to pay attention to factors such as compensation & rewards,
job security, training & developments, supervisor support culture, work environment, career
development and organization justice etc.

10

11

Storey, Sisson (1993)5 recommend that training is sign of organization commitment

to employees. Training also reflects organization strategy that is based on value adding rather
than cost lowering. Leading firms of the industry recognize that comprehensive range of
training, skill and career development is the key factor of attraction and retention the form of
flexible, sophisticated and technological employees that firms strategy to succeed in the
computerized economy.
Gomez Et AL, (1995)6 training provides specialized technique and skills to employee
and also helps to rectify deficiencies in employee performance, while development provide
the skills and abilities to employee which will need the organization in future. Development
of skill consists of improving interpersonal communication, technological knowledge,
problem solving and basic literacy etc.
Reichheld (1996)7 there are three criteria that have impact upon how hard employees
are working. They work hard when: (1) they have job pride, (2) when they find their jobs
interesting and meaningful, and (3) when they are recognized for their work and benefit from
the work they have accomplished.
Bishop (1998)8 surveyed on training found that established, larger, manufacturing and
unionized firms have tend to provide training to employee as did multi established firms with
flexible production approach or high performance. Research study finds that larger
companies high performance establishment and those organizations which spend more
physical resources were usually more probably to retain their talent.
Osteraker (1999)9 the employee satisfaction and retention are the key factors for the
success of an organization. The Retention factor can be divided into three broad dimensions,
i.e., social, mental and physical. The mental dimension of retention consist of work
characteristics, employees always prefer flexible work tasks where they can use their
knowledge and see the results of their efforts which, in turn, helps in retaining the valuable
resources. The social dimension consists of the contacts that the employees have with other
people, both internal and external. The physical dimension consists of working conditions
and pay.
Walker (2001)10 identified seven factors that can enhance employee retention: (i)
compensation and appreciation of the performed work, (ii) provision of challenging work,

12

(iii) chances to be promoted and to learn, (iv) invitational atmosphere within the organization,
(v) positive relations with colleagues, (vi) a healthy balance between the professional and
personal life, and (viii) good communications.
Davies, Taylor, & Savery (2001)11forwarded the view that compensation to top
workers is given by every organization but very few organizations uses it strategically. They
said that Salary and benefits policies are not being used strategically, within the organization
to improve morale, reduce turnover, and achieve targets within an establishment.
Wells & Thelen (2002)12 have stated in their study that organizations which have
generous human resource policies, have a very good chance to satisfy and retain employees
by providing them an appropriate level of privacy and sound control on work environment
which enhances the motivation levels to commit with the organization for the long term.
Prince (2005)13 argued that talented employees are required for maintaining a
competitive advantage and employees want career growth opportunities to develop and rise in
their career ladder. Such plans include advancement plans, internal promotion and accurate
career previews at the time of hiring.
Wirth (2006)14 it is the women in the market place that have to stand behind all the
changes that they want to be made, and this highly has to retain them, because otherwise no
changes will be made. A turnover trend in developing countries is that women are leaving
larger corporation for smaller companies because they want more flexibility and recognition.
Hytter (2007)15 found that factors such as personal premises of loyalty, trust,
commitment, and identification and attachment with the organization have a direct influence
on employee retention. She also explained that workplace factors such as rewards, leadership
style, career opportunities, the training and development of skills, physical working
conditions, and the balance between professional and personal life have an indirect influence.

13

Henry Ongori (2007)16 concluded in his study that employees are the long-term
investments in an organization and as such management should encourage job redesign, task
autonomy, task significance and task identity, open book management, empowerment of
employees, recruitment and selection must be done scientifically with the objective of
retaining employees and decreasing employee turnover.
Freyermuth (2007)17 recommended that organization must groom leader to support
the employees and to well build the work environment where workers want to stay. Providing
opportunities test their abilities and providing level of performance can enhance employees
capabilities and want to stay in the organization.
Pritchard (2007)18 was of the opinion that training and development is one of the
important retention programmers incorporated in an effort to retain their employees. and
education, seniority, self-perceived leadership skills, and learning attitude and organizational
factors such as appreciation and stimulation, and pressure of work are of great relevance in
employee retention.
Noah (2008)19 found in his research that employee involvement in decision-making
helps in creating a sense of belongingness among the employees, which helps in creating a
good congenial working environment and contributes towards building a good employeremployee relationship.
Yanadoria & Katob (2010)20 investigated the family support effects at workplace
and concluded the statistical importance of relationship between work family support and
employee retention, the recent research recognize that existence of family support within the
organization reduce the turnover intention and help the retention of talented employees in the
organization.

14

CHAPTER III
RESEARCH METHODOLOGY
Scope, Sample & Methodology Area of the study is a Garments
Industry whose employee strength is 315. The sample framework of the
study is the employees working organisation. A sample size of one third of
their strength i.e. 115 is chosen using simple random sampling. Data was
collected from the employees through questionnaire for employee
retention.
Drivers of the employee retention: Initially 25 drivers of employee
engagement were identified with help of literature review and in
discussion with senior management and airport operation specialist.
Based on the impact analysis, nine (9) drivers were shortlisted (see table
2) out of 25 drivers. Out of the nine (9) shortlisted drivers of engagement,
communication, rewards & recognition, compensation and benefits,
manager/supervisor relationship, career development, teamwork, role
clarity, work environment and work life balance, action plans are drawn
and implemented only for drivers with non-financial support. Hence only
six (6) drivers were considered (See table 2). Many action plans were
implemented on these drivers - communication, rewards & recognition,
manager and supervisor relationship, teamwork, role clarity and work
environment, few of them to mention are on spot appreciations, green
cards, silver cards, star of the month, town hall meetings, skip level
meetings, one to one meetings, CEOmonthly meetings, open door policy,
department

steering

committee

meetings,

internal

coordination

committees, team activities, team building exercises, reporting channel

streamlining, induction of HR buddy to each department to improve the
HR process and HR helpdesk etc.
Hypotheses Null hypotheses formulated are: H1: There is no significant
impact of implementation of action plans for non-financial drivers to the
level

of

engagement

of

employees.

15

H2:

There

is

no

significant

improvement in the level of employee retention due to increase in the

level of employee engagement. The hypotheses have been tested and the
results have been arrived at. Data sources: Quantitative research
technique is used and this study is descriptive in nature. Both primary and
secondary data have been used in this study. Primary data was collected
through

questionnaire

and

secondary

data

was

collected

from

documentation section of each department.

Instrument Development
Even though a number of instruments are available that measure the
retention level of employees, they are not customized for the international
airport scenario. After long discussions with senior management team and
representatives from all departments 15 influencing factors of retention
were identified. Then in response to exit interview questions the
influencing factors were analyzed. The analysis revealed that seven
factors were responsible for more than 85% of attrition (see table 3).
Based on this evaluation and the discussions the final questionnaire for
evaluating the retention was formed. As the focus of the study is on
improving retention through employee engagement, the level of employee
engagement was also evaluated. Twenty five (25) drivers of employee
engagement were identified initially and finally narrowed down to nine (9)
on the basis of its impact on the level of engagement. Questionnaire
based on these nine (9) factors were formed. The drivers of engagement
were communication, rewards & recognition, compensation and benefits,
manager/supervisor relationship, career development, teamwork, role
clarity, work environment and work life balance.
Reliability Test The data collected thorough questionnaire was subjected
to reliability test, which shown strong internal consistency among the
given items and hence satisfied.
Data collection After preparing both questionnaires the data was
collected for finding out the initial level of engagement and retention of

16

employees.

After

this

many

engagement

boosting

activities

were

implemented on the drivers which dont require financial support. The

hypotheses have been formulated for the purpose of the study. Again level
of engagement and retention was evaluated by administrating the
questionnaire after 6 months. The result was studied in comparison with
original scores and the hypotheses were tested.
Data analysis Initial levels of engagement of employees were evaluated
from the response given by the 185 employees from eight (8)
departments to the questionnaire which contains 20 questions. Similarly
the

initial

levels

of

employee

retention

also

were

evaluated

by

administrating another questionnaire with 20 questions. The result of the

survey carried out after six (6) months with same questionnaire was used
to evaluate the impact on the levels of retention by the change in the
levels of engagement of employees. Change in the level of employee
engagement was evaluated after implementing the action plans decided
in the expert and management meeting. Paired t-test used to test the
hypotheses.

17

Research Type
This project is a descriptive type research. Descriptive research includes survey and
fact finding enquires of different kinds. The major purpose of descriptive research is the
description of the affairs as it exists at present. The main characteristic of this method is that
is that the researcher has no control over the variables he can only report what has happened
or what is happening. Descriptive research method will be applicable to exiting method will
be applicable to exiting problem. A survey research has been conducted where by the
information has been from respondent by administering questionnaires through a direct
interview, in this project descriptive research was followed because the survey is based on
present scenario.
Sample
A sample is a subset of a population. A random sample is a subset where every item in
the population has the same probability of being in the sample. Usually, the size of the sample
is much less than the size of the population.
Size of the Sample
Size of sample refers to the number of items to be selected from the universe to
constitute a sampling. An optimum sample is one which fulfils the requirements of efficiency,
representativeness, reliability and flexibility. The sample size is 115. Simple random
sampling is used to select the sample from the population of 350 employees.

Data Collection Method

Data plays a vital role for the successful completion of any research. Since, every
possible source are needed to tap information required for the study, two sources to collect
data i.e., both primary and secondary sources have been used in this research.
Primary Data
The primary data those which are collected a fresh and for the first time, and thus
happen to be original in character. The primary datas are collected through survey from the
employees of the organisation through structural questionnaire.
Secondary Data
The secondary datas are those which have already been collected by someone else
and which have already been passed through the statistical process. The secondary datas are
collected through the company records, website, books, journals & magazines.
Research Plan
Data source
Research approach

: Primary data & Secondary data

: Survey

18

Research Instrument : Questionnaire

Method of contact
: Personal
Sample size
: 115 respondents

Factor Analysis
Factor analysis is a statistical method used to describe variability among observed,
correlated variables in terms of a potentially lower number of unobserved variables called
factors. Factor analysis is a method of data reduction. It does this by seeking underlying
unobservable (latent) variables that are reflected in the observed variables (manifest
variables). There are many different methods that can be used to conduct a factor analysis
(such as principal axis factor, maximum likelihood, generalized least squares, unweighted
least squares).

19

Majority of the respondents age belongs to 18-25 years. Almost 90% of the
respondents are single. Majority of the respondents education is only school level. Most of
the respondents income belongs to Rs.5000-10000. Majority of the respondents are having a
service less than 2 years. Almost 60% of the respondents have less than 2 years experience
with their current job.

20

TABLE NO. 4.1.38

TABLE SHOWING THE OPINION OF EMPLOYEES ON LEVEL OF
SATISFACTION ON FEATURES OF BODYLAND GARMENTS
INDEPENDENT SAMPLE T TEST
Hypothesis H0: There is no significant difference on level of satisfaction on organizations
encourages celebrations with respect to gender.
Group Statistics
N
Mean
Std.
Std. Error
Marital Status of the Respondent
Deviation
Mean
Encourages Organization
Single
98
4.4796
1.05742
.10682
17
5.0000
.00000
.00000
Married
Celebrations
.
Independent Samples Test
Levene's Test
t-test for Equality of Means
for Equality of
Variances
F
Sig.

Encourages
Organization
Celebrations

Equal variances 18.712

assumed
Equal variances

.000 -2.02

df

Sig. Mea Std.

95%
(2n
Error Confidence
tailed) Diff Diff Interval of the
Diff
Lowe Upper
r
113 .046 -.520 .2574 -1.031 -.010

-4.87 97.0

.000 -.520 .1068

-.733 -.308

not assumed

INTERPRETATION
From the table independent sample t test, its understood that the significance value .
000 is less than level of significance 0.05. Hence we reject null hypothesis and accept
alternate hypothesis. Hence the result shows that there is a significant difference on the means
of satisfaction on organization celebrations with respect to gender.

21

TABLE NO. 4.1.39

TABLE SHOWING THE ASSOCIATION BETWEEN HAVING INCOME OF THE
RESPONDENT AND PAY PACKAGE SATISFACTION
CHI-SQUARE TEST
Hypothesis H0: There is no significant association between income of the respondent and
satisfaction on pay package.
Case Processing Summary
Cases
Valid
Missing
N
Percent
N
Percent
115 100.0%
0
0.0%

Income of the
Respondent * Pay
Package Satisfactory

Total
N
Percent
115 100.0%

Income of the Respondent * Pay Package Satisfactory Crosstabulation

Count

Income of the
Respondent

Less than
5000
5000-10000
10000-15000

Pay Package Satisfactory

Strongly
Agree
Strongly
Disagree
Agree
1
1
10
0
0
1

Total

Chi-Square Tests
Value
Pearson Chi-Square
Likelihood Ratio
Linear-by-Linear Association

10.737a
8.030
5.788

5
0
6

df

Total

12

71
27
108

76
27
115

Asymp. Sig. (2-sided)

4
4
1

.030
.090
.016

N of Valid Cases
115
a. 6 cells (66.7%) have expected count less than 5. The minimum expected count is .10.

INTERPRETATION
As p=.030 which is less than level of significance 0.05, we reject null hypothesis and
accept alternate hypothesis. Hence there exists a significant association between income of
the respondent and satisfaction on pay package.

22

TABLE NO. 4.1.40

TABLE SHOWING THE DIFFERENCE IN SATISFACTION LEVEL ON WORK
ENVIRONMENT WITH RESPECT TO YEARS OF EXPERIENCE
ONE WAY ANOVA
Hypothesis H0: There is no significant difference on satisfaction with work environment
with respect to their years of experience with the company.
Descriptives
Satisfied Organization Work Environment
N Mean
Std.
Deviation

Std.

95% Confidence

Error

Interval for Mean

Lower Upper

Less than 2

65

4.9846

.12403

.01538

Bound
4.9539

years
2-5 years
6-10 years
Total

42
8
115

4.9048
4.6250
4.9304

.43108
.74402
.34340

.06652
.26305
.03202

4.7704
4.0030
4.8670

Bound
5.0153

4.00

5.00

5.0391
5.2470
4.9939

3.00
3.00
3.00

5.00
5.00
5.00

ANOVA
Satisfied Organization Work Environment
Sum of
df
Mean Square
Between Groups
Within Groups
Total

Squares
.965
12.479
13.443

2
112
114

Minimum Maximum

.482
.111

F
4.330

Sig.
.015

INTERPRETATION
From the above table, its understood that the significance value for satisfaction on
organization work environment is .015, which is less than 0.05, level of significance, we
reject null hypothesis and accept alternate hypothesis. Hence it is clear that the satisfaction
level of employees on work environment differs with respect to their years of experience with
the company.

23

TABLE NO.4.1.41
TABLE SHOWING THE RELATION BETWEEN VARIOUS FACTORS AND
RETENTION
CORRELATION
Hypothesis H0: There is no significant relation between employee retention and various
factors such as work life balance, environment, culture etc and employee retention.
Correlations

Work life balance

Environment

Culture

Compensation

Job Security

Career Opportunities

Leadership

Motivation

Employee engagement

Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Sig. (2-tailed)
N

Talent retention
.441**
.000
115
.539**
.000
115
.196*
.036
115
-.072
.448
115
-.072
.448
115
.416**
.000
115
.207*
.027
115
.114
.226
115
-.033
.725
115

INTEPRETATION
From the above table, its clear that the factors such as work life balance, work
environment, work culture, career opportunities and leadership has significant relation over
retention of employees in an organization where as factors such as compensation, job security
and employee motivation have no relation in retaining the employee.

24

TABLE NO.4.1.42
FACTOR ANALYSIS
TABLE SHOWING REDUCTION OF FACTORS INFLUENCING RETENTION
Table: 1 Descriptive Statistics
Mean
Satisfied Organization Work Environment
Opportunity for Variety of Roles and Jobs
Employees Treat with Respect
Employees Have Autonomy to Decision Making
Employees Can Express Their Honest Opinion
Organization Culture is Growth Oriented
Incentives and Bonus Based on Employees performance
Pay Progression is Aligned with Career Progression
Pay Package Satisfactory
Company Retain Good Performers
Financially Strong Enough to Overcome
Organization Provides Feel of Job Security
Organization Provides Necessary training
Opportunities for Professional Growth
Career Development Satisfactory
Employees Well Being
Senior Leaders Live Core Values of the Organization
Company Inspires and motivation
Performance Appraisal Helpful to Get Motivates
Employee Motivation is satisfactory
Motivation helps Talent Retention
Encourages Organization Celebrations
Management Policy Retain its Employees
Management Helps to Increase Productivity
Indentifying Future Opportunities
Employees are highly Engaged
Feel Excited to Work

4.9304
4.4696
4.9565
4.6435
2.6870
4.7304
4.9826
4.9217
4.9130
4.7913
3.2957
4.8609
4.8783
4.9304
4.8348
4.8261
4.5304
4.7043
4.8870
4.6957
4.7652
4.5565
4.7130
4.7739
3.4696
2.0087
4.8696

Table: 2 KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
Approx. Chi-Square
Bartlett's Test of
df
Sphericity
Sig.
Table: 3 Total Variance Explained

25

Std.
Analysis
Deviation
N
.34340
115
1.14188
115
.20482
115
.60974
115
1.60244
115
.59709
115
.18650
115
.30052
115
.43053
115
.48659
115
1.67003
115
.47549
115
.35412
115
.25553
115
.49436
115
.48233
115
.97622
115
.45833
115
.31803
115
.49866
115
.42572
115
.99288
115
.49142
115
.42013
115
1.66661
115
1.53609
115
.42964
115

.506
1063.030
435
.000

Component
Total
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

3.417
2.402
2.250
1.755
1.679
1.489
1.389
1.245
1.178
1.067
1.030
.971
.914
.727
.690
.663
.647
.579
.498
.441
.366
.343
.321
.304
.276
.253
.107

Initial Eigenvalues
% of Variance Cumulative
%
12.656
12.656
8.895
21.551
8.332
29.883
6.500
36.383
6.217
42.600
5.515
48.115
5.144
53.259
4.612
57.870
4.362
62.233
3.953
66.185
3.816
70.001
3.595
73.595
3.384
76.979
2.692
79.671
2.557
82.228
2.457
84.684
2.398
87.082
2.144
89.226
1.843
91.070
1.633
92.703
1.354
94.057
1.271
95.328
1.188
96.516
1.126
97.643
1.024
98.666
.939
99.605
.395
100.000

Rotation Sums of Squared Loadings

Total % of Variance Cumulative %
2.607
1.998
1.944
1.731
1.682
1.638
1.637
1.491
1.404
1.397
1.372

9.655
7.402
7.199
6.410
6.229
6.067
6.064
5.520
5.201
5.173
5.081

Table: 4 Rotated Component Matrix

Component

26

9.655
17.056
24.255
30.665
36.894
42.962
49.026
54.546
59.747
64.920
70.001

1
Satisfied Organization
Work Environment
Opportunity for
Variety of Roles and
Jobs
Employees Treat with
Respect
Employees Have
Autonomy to Decision
Making
Employees Can
Express Their Honest
Opinion
Organization Culture
is Growth Oriented
Incentives and Bonus
Based on performance
Pay Progression
aligned with Career
Progression
Pay Package
Satisfactory
Company Retain
Good Performers
Financially Strong
Enough to Overcome
Organization Provides
Feel of Job Security
Organization Provides
Necessary training
Opportunities for
Professional Growth
Career Development
Satisfactory
Employees Well Being
Senior leaders live
core values of the
Organization
Company Inspires and
motivation
Performance Appraisal
helps in motivation

-.050

.047 -.186

.735

-.208

-.058

.094

.084

-.083

.240
.124

.014 -.040

.145 -.026
.043

.740 -.063 -.002

.512

11

.160 -.003

.052

-.015

.101

.087 -.040

-.116

.153 -.251
.313

.068

.765 -.133

.056

.062 -.038 -.014

-.084

.311

.062

.369

.497

.129 -.208 -.203

.193

.023 -.154

.019

.007

.175

.132

.035

.057

.186

.013

-.060

.016

-.062

-.021 -.026 -.002

.012 -.058

.914 -.022

.507

-.050 -.210 -.064

.150

.021

.710

.025

.086

.749 -.027

.315

.070

-.140

-.012

10

-.149

.151 -.026 -.019

.351 -.016

.018

.068 -.059

.170

.811

.014 -.020
-.075

.063

-.071 -.038

.134

.667 -.012

.090

.179 -.119 -.069

.164

.016

.089

.059

-.183

.689 -.069

.137 -.013 -.201 -.194

.112

.003

.206 -.098

.005

-.112

.206 -.207 -.012

.742 -.045

.037

.138

-.063

.497

-.118

.338

.220

.116

.091

-.115 -.224

.591

.136

.154 -.067 -.060 -.051

.099 -.108

.337

.129

-.325

.314

.319 -.253 -.136 -.031

.533

-.052

.047

.066

.048

.001

.861

.008

-.017

.028

.076 -.015 -.094

.173 -.017 -.070

-.011

.114 -.022 -.100 -.072 -.037

.809

-.100

.119

-.026

-.103

.242

.211 -.124

.071

.034 -.101

.013

.604 -.155 -.020

27

.072

.055

.185 -.023

.069

.005

.002

.427

.097

.137

.153

-.019 -.131
-.020

.028

.868 -.008

Motivation helps
.164 -.001 .720 .087 -.021
Talent Retention
Encourages
Organization
.826 -.111 .050 .016 -.068
Celebrations
Management Policy
.127 -.174 .469 .506 -.046
Retain its Employees
Management Helps to
-.083 .010 -.031 .822 .085
Increase Productivity
Indentifying Future
.165 .268 .397 .329 .100
Opportunities
Employees are highly
-.431 .431 .122 .114 .030
Engaged
Feel Excited to Work
-.034 -.148 -.063 .086 .785
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 12 iterations.

Factor
F1
F2
F3
F4
F5
F6
F7
F8
F9
F10
F11

1.
2.
1.
2.
3.

-.015 -.091

.117

-.051

-.167 -.156

-.071

.072

-.119

-.138

.015

-.139 -.057 -.156

-.060

.071

.383

-.084

.138

.036

-.019 -.017

.111

.068

.003 -.048

.078

.327

.043 -.402

.176 -.288

.158

-.410 -.047

.051

-.050

.214

-.071 -.097

Table: 5 Outcome of Factor Analysis

Variable
Variety of roles and jobs
Organization celebrations
Company retain good performers
Performance appraisal helps in motivation
Financially strong enough to overcome economic crisis

1. Employees have autonomy for decision making

2. Motivation helps talent retention
1. Management policy on work life management helps to
increase productivity
1. Pay package is satisfactory
2. Feel excited to work
1. Satisfied organization work environment
2. Organization provides feel of job security
1. Incentives and bonus based on performance
2. Pay progression aligned with career progression
1. Employees well being
1. Company inspires and motivation
1. Senior leaders live core values of the organization
1. Organization culture is growth oriented

Factor 1: Employee Engagement

Factor 2: Recognition
Factor 3: Autonomy & Motivation
Factor 4: Work life balance
Factor 5: Work Pleasure

28

.028

Factor Loadings
0.735
0.826
0.667
0.604
0.689
0.797
0.655
0.643
0.749
0.785
0.740
0.742
0.914
0.710
0.861
0.809
0.868
0.811

.191

Factor 6: Job Security

Factor 7: Performance Culture
Factor 8: Employee Caring
Factor 9: Inspiration and Motivation
Factor 10: Leadership
Factor 11: Organization Culture
INTERPRETATION
The principal component factor analysis was performed on 27 items to group of few latent
variables which explains the observed variables. The Kaiser-Meyer-Olkin Measure of
Sampling Adequacy test result obtained was 0.506 (Table 2). As the value is more than 0.5, it
indicates that the sample is reasonably adequate and the data supports application of factor
analysis. The factor analysis results are shown in Table 3, which shows 11 factors were
extracted, accounting for 70% of total variance explained. The eleven new variables are
renamed. The first factor is named as employee engagement as the two items are towards
enhancing employee influence on job. Second is named as recognition as the 3 items are
towards recognizing the performer and the ability of organisation to do so. The third factor
consists of 2 items which are towards motivating the employee and providing authority to
perform, it is named as autonomy and motivation. The fourth factor is named as work life
balance and it contain only one item with respect to balancing work life and family. The fifth
factor contains 2 items related to happiness to work in the organisation. Hence it is named as
work pleasure. The sixth factor is named as job security and it contains two items satisfaction
on job environment and security. The seventh factor contains a two items performance related
reward, hence named performance culture. The eighth, ninth, tenth and eleventh factors
contain only one item and they are named as employee caring, inspiration & motivation,
leadership and organisation culture.

CHAPTER V
FINDINGS, SUGGESTIONS AND CONCLUSION
5.1 FINDINGS

29

The majority 86.1% of the respondents age belongs to 18-25yrs. Majority 100% of
the respondents gender belongs to female. Majority 85.2% of the respondents
marital status belongs to single. Almost 58.3% of the respondents had done their
school level education.

Almost 66% of the respondents are getting an income of Rs.5000-10000. Almost 46%
of the respondents had service of to 2-5years. Almost 56.5% of the respondents
current job belongs to less than 2 years. Majority 96% of the respondents feel
satisfied with organization work environment.

Majority 77% of the respondents feel that there are enough opportunities for variety
of roles and jobs. Majority 96% of the respondents employees feel that they are
treated with respect. Almost 70% of the employees said that they have autonomy in
decision making.

Nearly 30% of the employees said that they can express their honest opinion. Majority
78% of the respondents feel that the organization culture is growth oriented. Almost
all the respondents strongly agreed that incentives and bonus are based on employees
performance.

Majority 93% of the respondents said that the pay progression is aligned with career
progression. Almost 94% of the respondents strongly agreed that they are satisfied
with the pay package. Majority 82.6% of the respondents company retain good
performers belongs to strongly agree.

Nearly 35.7% of the respondents strongly agreed that the organisation is financially
strong enough to overcome economic crisis. Majority 89% of the respondents
strongly agreed that the organization provides feel of job security. Majority 89% of
the respondents strongly agreed that the organization provides necessary training to

do their job.
Almost 10% of the respondents strongly agreed that the organisation provides
opportunities for professional growth. Majority 87% of the respondents are satisfied
with the career development opportunities provided by the organisation that helps in

30

developing the talent. Majority 86% of the respondents strongly agreed that the
leaders of the organization care about the well being of the employees.

Majority 74% of the respondents senior leaders live core values of the organization
belong to strongly agree. Majority 70.4% of the respondents company inspires and
motivation belongs to strongly agree. Majority 88.7% of the respondents
performance appraisal helpful to get motivates belongs to strongly agree.

Nearly 71% of the employees strongly agreed that employee motivation paves way
for talent retention. Majority 77% of the employees agreed that the organization
encourages celebrations which involve family members. Majority 73% of the
respondents agreed that the organisation takes efficient work life policies to retain
their employees. The Almost 77% of the respondents agreed that the work life
management helps to increase productivity of the organization.

Almost 47% of the respondents strongly agreed that they are willing to take new tasks
and proactive in indentifying future opportunities. Majority 62% of the respondents
strongly disagree that the employees are highly engaged in their work. Majority 90%
of the respondents strongly agreed that they feel excited to work.

Majority 90% of the respondents strongly agreed that their organization is a reputed
and great place to work. Majority 88% of the respondents strongly agreed that they
would like to continue their service with the current organization in future. Majority
86% of the respondents strongly agreed that talent retention initiatives taken by the
organization are up to their satisfaction.

The chi-square test carried out clearly states that there exists a significant association
between income of the respondent and satisfaction on pay package.

The independent sample t test conducted shows that there is a significant difference
on the means of satisfaction on organization celebrations with respect to gender. The
analysis also proves that the employees level of satisfaction on work environment
differs with respect to their years of experience with the company

31

The correlation analysis carried out clearly explain that the factors such as work life
balance, work environment, work culture, career opportunities and leadership has
significant relation over retention of employees in an organization where as factors
such as compensation, job security and employee motivation have no relation in
retaining the employee.

The factor analysis was carried out for data reduction and principal component
analysis was done. Through the analysis the 27 factors were reduced to 11 factors that
contribute to the retention of employees. They are employee engagement, recognition,
autonomy & motivation, work life balance, work pleasure, job security, performance
culture, employee caring inspiration & motivation, leadership and organisation
culture.

32

5.2 SUGGESTIONS

The organization should take feedback from the employees at regular intervals. The
employees feel that they cannot express their honest opinion. Hence necessary measures
should be taken to collect the feedback or suggestion from the employees and also the
confidentiality has to be ensured.

Employee engagement is less. So the organisation should take utmost care to make the
employee engaged. To do that the top executive should have a leadership demonstrating
the characteristics and behaviors everyone else is being asked to display. The top level
executive should be accessible, visible and approachable. A genuine relationship between
employees and their supervisors and management inspires trust and builds comradery
which help the organization to increase employee engagement.

Greater efforts need to be made by industry to track the number of employees being
turned over and the reasons why it is happening. Exit interviews need to be conducted and
they need to be reviewed by upper management to ensure that supervisors are not the
reason why this is happening.

It is not only important for management to understand their role in retaining employees,
but also they must pass this knowledge on to their supervisors so they too can understand
how to motivate and treat people with respect. Industry turnover may be reduced through
the implementation of realistic job previews.

Implementing retention in industry requires active role of HR department to develop

career progression programs and knowledge retention strategies, commitment from
management in order to instill employees for behavioral shift, and cultural improvements
through motivation and appreciations. This will leads to enhanced service quality,
employee satisfaction, retention of knowledge and organizational productivity in terms of
profits and performance.

33

5.3 CONCLUSION
Given the growing needs for organizations to retain its best employees in the face of
competition, the findings of the study suggest that certain variables are crucial in influencing
employees decision to either leave or remain in industry. Such variables include work life
balance, work environment, work culture, career opportunities and company leadership.
Nonetheless, the importance of other variables should not be under- estimated when
formulating a retention policy. It is only a comprehensive blend of intrinsic and extrinsic
motivational variables that can enhance retention and reduce the high rate of employee
turnover in industry.
In the global competition for talent, successful retention requires organizations to shift
from a mindset of keeping their employees from leaving the company, to one of continuously
attracting them. The approach of creating trust and supporting life long careers causes
talented people to stay. People are more inclined to stay when they perceive that the
opportunities and experiences they have with their current employers expand their career
options. Despite their increased value and employability in the external labor market,
employees will be inclined to keep their beneficial relationships with their current employers.
Ironically, the more a company prepares their staff to leave, the longer they are likely to stay.

34

BIBLIOGRAPHY
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15. Hytter, Retention strategies in France and Sweden, The Irish Journal of Management,
ISSN.2311-3197, Vol.28, Issue-1, pp.59-79, 2007.
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Websites
1.
2.
3.
4.
5.

http://www.bodyland.net/professional/about-us.html
http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1062&context=student
https://www.entrepreneur.com/article/237248
http://www.hrmars.com/admin/pics/1413.pdf
http://www.payscale.com/compensation-today/2015/05/why-retaining-employees-is-now-

even-more-important-than-retaining-customers
6. http://www.managementstudyguide.com/importance-of-employee-retention.htm

36

ANNEXURES
QUESTIONNAIRE ON FACTORS AFFECTING RETENTION
1. Name:
2. Age
18-25

26-35 36-45

46-55 Above 55

3. Gender
Female
Male
4. Marital Status
Single
Married
5. Highest Level of education attained
School level

High school level

6. Monthly Income (in Rs.)

Less than 5000 500010000
7. Total years of service
Less than 2 years

2-5 years

Diploma

1000015000

UG

Others

1500020000 Above 20,000

6-10 years 11-15 years

8. Years of service with current job

Less than 2 years 2-5 years
6-10 years

PG

11-15 years

Above 15 years
Above 15 years

Rate your level of agreement on the following factors that affect employee retention
SA - Strongly Agree, A - Agree, N Neutral, D- Disagree, SD- Strongly Disagree
#

Factors Influencing Talent Retention

Work Environment
9.
10.

Satisfied with the organization work environment.

Organization provides opportunity to work in variety of

roles and jobs

11.
Employees treat each other with respect.
Organization Culture
12.
Employees have autonomy to make decisions in their job.
Employees can express their honest opinion without fear
13.
or negative consequences.
The organization culture is growth oriented and has
14.
positive impact and promotes Employee talents

37

SD

SA

Compensation
Incentives and Bonus are paid based on the employees
15.
performance.
Pay progression is aligned with career progression in the
16.
organization.
17.
Pay package provided by the organization is satisfactory.
Job Security
Company retains people who are considered to be good
18.
performers.
The organization is financially strong enough to overcome
19.
short term/long term economic crisis.
20.
Organization provides employees the feel of job security.
Career Opportunities
Organization provides necessary training required for the
21.
employee to do his job
Organization facilitates adequate opportunities for
22.
professional growth.
Career development opportunities are satisfactory and
23.
helps in talent development
Leadership
The leaders of this organization care about their
24.
employees well being.
25.

Senior leaders live the core values of the organization.

26.

The leadership of the company inspires and motivates

Motivation
27.

Performance appraisal activities are helpful to get

motivated

28.

Organizations initiative on employee motivation is

satisfactory.

29.

Employees motivation paves way for Talent retention

38

Work Life Balance

Organization encourages involvement of employees
30.
family members in organizations celebrations
The efficient work life management policy of the
31.
organization helps to retain its employees
The organization policy on work Life management helps
32.
to increase productivity of the organization
Employee Engagement
Employees are willing to take on new tasks as and
33.
proactive in indentifying future opportunities
34.

Employees are highly engaged in their work.

35.

Feel excited about going to work.

Talent Retention
Organization is a reputed one and it is a great place to
36.
work with.
Would like to continue my service with the current
37.
organization in future.
Talent retention initiatives taken by the organization are
38
satisfactory.

Thank you

39