Employee Retention Strategies In IT Sector- With Special Reference To S .

Science, Technology and Development ISSN : 0950-0707 Employee retention strategies in IT sector- with special reference to S&V Pvt. Ltd Dr. Vaishali Rahate, Datta Meghe Institute of Management Studies, Mrunali Hadke (Student), Vishal Kumar Prakash -Consultant- Data Management, S&V Abstract: Employee Retention is one of the major challenges faced by IT companies in India. As employees are the key assets for any organization , they try to adopt many strategies to hold down the attrition rate. Thus a holistic approach is necessary to understand the factors controlling employee turnover in IT Industries by the HR Managers. The present study intend to examine the reasons for employees leaving the Organization, factors which makes them stay back, their approach towards work, work relationships and their expectations from the Organization . The study was conducted in S&V company. Factor analysis was done to extract the important factors affecting retention of employees. It was found that Quality of Work Life and Job Flexibility and Security factor plays important role in retention strategies for employee’s intention to stay at the organization. 1. INTRODUCTION: Employee Retention in IT Industry: The IT industry has always been in forefront for revenue and employment generation. Because of high profits and rewarding market size, lot of small and big companies have entered into this market, and therefore a major chunk of young people are taking their careers into IT sector. Along with the major players in IT sector like Infosys, TCS, Wipro, there is a huge number of medium and small scale IT industries in India. As there are many IT Industries, employees have an option of switching over their jobs very frequently. Today’s new generation Employees are not only looking for a decent pay package but need attractive working environment , challenging tasks, support for higher studies and perks to motivate them. The moment they feel that their expectations are not met, they start searching for a new job. Usually the employees leave job prominently because of the Skills mismatch with the job profile, stress & workload , Work life imbalance and above all, the pay package. The drawbacks of employee attrition are Cost of turnover (including hiring costs, training costs Volume VIII Issue XII DECEMBER 2019 Page No : 795

Science, Technology and Development ISSN : 0950-0707 and productivity loss), Loss of company’s knowledge (knowledge about the company, customers, current projects and past history), Interruption of customer service, Turnover leads to more turnovers, Goodwill of the company. In such a scenario, organizations face a lot of difficulty, as a high turnover rate may hamper productivity. To avoid such state, organization have to adapt retention strategies to make employees continue for satisfactory period in which the employee is able to contribute , execute, achieve and perform. The primary concern is which strategies should be adopted, which works well with all the employees. Every individual is different and is motivated by different job and personal factors. Keeping abreast the above mentioned facts, this research paper follows a line of exploration on the key retention strategies which can work well for all employees of IT Sector. 2. LITERATURE REVIEW SR. TITLE NO. AUTHOR DATE FINDINGS This paper concludes that companies felt Employee Retention1. A Real the importance of retention strategies and accepted that without it Time Manju Challenges in Indian Dhillon August they won’t be able to survive in 2017 competitive market. Some benefits like IT Sector lucrative salary, flexible timing, better work environment and better career growth helps in retention. The reasons, employees leave the organization is very different from the reasons because of which they stay in Emerging 2. Employee Rashmi Retention Strategies Badjatya in IT Industry Rawat the organization. It is very much like the April Herzberg’s two factor hygiene theory. 2013 The hygiene factors are the one without which the employee will leave the organization such as salary. But the motivating factors are one which will actually pursue them to stay in the Volume VIII Issue XII DECEMBER 2019 Page No : 796

Science, Technology and Development ISSN : 0950-0707 organization like Recognition and Work Life balance. The focal point of the research was the correlation between the employee job satisfaction factors and the level of turnover intentions. It was decided to 3. Employee Retention Alena in IT Industry Novemb Rohava er 2017 conduct the questionnaire, utilizing the Job Satisfaction Survey, developed by 64 Paul Spector, and modified by adding several items, related directly to the turnover intentions in order to define the possible correlations between these factors. Authors mentioned that turnover rates of 25 percent-35 percent had been 4. Employee Retention Strategies: IT Industry Leena James &Lissy Septemb er 2012 Mathew reported in Fortune 500 companies over the past five years, while a supplydemand gap in the IT labour market conceivably exacerbates the IT- retention problem. This study brings out that environment, family work problems, compensation, relation with superiors 5. Retaining Employees in Indian It Sector are the prominent factors that may be Dr.Satpal& Manju Dhillon March considered while planning a job change 2016 by an IT professional. Every company wants to retain its employees but when they get trained have tendency to move to other organization for better prospects. A Study On Employee Dr. 6. G. Retention Strategies in Balamurugan Leading IT & R.Abinaya Volume VIII Issue XII DECEMBER 2019 March 2016 In this study it is understood that, there are three retention variables which influences most for retaining employees Page No : 797

Science, Technology and Development ISSN : 0950-0707 Companies At Trichy are Career advancement and opportunities, Superior support, Work environment and the remaining two retention variables such as Work pressure, Rewards and recognition are least influencing for employee retention in IT companies. In the study, six employee retention strategies Employee 7. Retention Strategies in Indian Software Industry G were identified as Ajay Management/ Organisational Strategies, Kumar &Dr. March Orientation Strategies, Communication M. Srinivasa 2016 Effectiveness Strategies, Reward and Reddy Recognition Strategies, Employee Benefit Strategies and Employees Ideas and Suggestion Strategies. There are no significant differences in responses between IT professionals of Indian and Multinational Companies in India, with respect to most of the A Study On Employee Retention 8. Influencing IT Professionals Of Indian IT Companies And demographic variables like age, gender, Factors educational qualification, income, total Minu Novemb experience in previous organization and Zachariah er 2012 number of jobs changed. However, there was significant difference in Multinational responses between the two groups with Companies In India respect to experience in the current Organization, current position in the Organization and training programs undergone. Critical 9. Affecting Factors Retention: Case of the Indian IT Industry Pooja Wadhwa &Saroj Koul Volume VIII Issue XII DECEMBER 2019 There are two strategies that are most January useful. Firstly, to provide salary hikes in 2012 accordance with industrial standards. Secondly, to recruit those only who has Page No : 798

Science, Technology and Development ISSN : 0950-0707 long-term orientation towards the organization or those who will stay in company for longer time period. This paper identifies that factors related to compensation issues have the highest effect on attrition. Most professionals, both men and women want to have job training. It was discovered that job training is necessary Waleed The Effect of Training 10. on Employee Retention for every employee. For the better Hassan, Amir Razi, Rida Decembe Qamar, RidaJaffir& Sidra Suhail r 2013 encouragement and loyalty of employees, organizations should induce reward giving phenomena. In this way, employees are provided with an environment where they are able to embrace career growth and professional skill’s development. 3. Company Profile: Founded in 2008, S&V is an IT services company with expertise in data related services. The company has developed a gamut of services to help our clients take the next step. Our exemplary track-record of implementing open-source Odoo ERP has earned us the badge of ‘Odoo Ready partners’. While our spectrum of data services, mapped to SAP at its core, has made us the official partner of SAP for the Middle-East region. S&V is expert in all data related services and management solutions. 4. Research Methodology The research design is a basic research and it is a field survey through self-administered questionnaires. Volume VIII Issue XII DECEMBER 2019 Page No : 799

Science, Technology and Development ISSN : 0950-0707 4.1 Objective Of the Study The main Objective of the study is to examine the factors influencing the retention of IT professionals in S & V. 1. To study the various factors that influences employee retention at S & V. 2. To explore the influence of the following determinants on employee retention: a. Career opportunities b. Salary Increment c. Reward & Recognition d. Work life balance 4.2 DATA COLLECTION Data collection was done through both primary and secondary source. (A) Primary source: Questionnaire The questionnaire framed for the research study is a structured questionnaire in which all the questions are predetermined before conducting the survey. The questionnaire for the research was framed in a clear manner such that it enables the respondents to understand and answer the question easily. (B) Secondary source: Websites Books Volume VIII Issue XII DECEMBER 2019 Page No : 800

Science, Technology and Development ISSN : 0950-0707 4.3 SAMPLE SIZE Sample size was limited to 80 employees. 4.4 DATA ANALYSIS AND INTERPRETATION Rewards and Recognition 0% 0% 2% 10% Very Unimportant Unimportant Neutral Very Important 88% Important From the above pie-chart, we can observe that 88% of employees at S & V believes’ that Rewards and recognition are important factor to continue with the organisation. Interpretation: Rewards and recognition under retention strategies have significant impact on intention to stay. Volume VIII Issue XII DECEMBER 2019 Page No : 801

Science, Technology and Development ISSN : 0950-0707 To find out various factors for Retention KMO and Bartlett's Test Kaiser-Meyer-Olkin 0 Sampling Adequacy. Approx. .745 Chi- 665.871 Square Bartlett's Test of Sphericity Df 180 Sig. .000 The Kaiser-Meyer-Olkin test indicates that the data is suitable for factor analysis (KMO 0.745 which is close to 1) and Barlett’s test shows there are significant relationships between the variables (Sig. 0.000 0.05). A factor analysis was conducted to determine if there were any underlying dimensions in a questionnaire. Rotated Component Matrix: Another important aspect that needs mention is the Rotated Component Matrix. While deciding how many factors one would analyse is whether a variable might relate to more than one factor. Rotation maximizes high item loadings and minimizes low item loadings, thereby producing a more interpretable and simplified solution. There are two common rotation techniques - orthogonal rotation and oblique rotation. While orthogonal varimax rotation that produces factor structures that are uncorrelated, oblique rotation produces factors that are correlated. Irrespective of the rotation method used, the primary objectives are to provide easier interpretation of results, and produce a solution that is more parsimonious. Volume VIII Issue XII DECEMBER 2019 Page No : 802