Educational Administration: Theory and Practice

2024, 30(5), 8943-8956

ISSN: 2148-2403
https://kuey.net/ Research Article

Employee Retention Strategies In It Industry – A Study

With Reference To Chennai City
Navami Anilkumar1*, Pravitha N. R2
1*Department of Commerce and Management, Amrita Vishwa Vidyapeetham, Amritapuri, India
2Department of Commerce and Management, Amrita Vishwa Vidyapeetham, Amritapuri, India

*Corresponding Author: Navami Anilkumar

*Email: navamianil8888@gmail.com

Citation: Navami Anilkumar1*, Pravitha N. R, (2024), Employee Retention Strategies In It Industry – A Study With Reference To Chennai
City, Educational Administration: Theory and Practice, 30(5), 8943-8956
Doi: 10.53555/kuey.v30i5.4484

ARTICLE INFO ABSTRACT

The capacity or ability of an enterprise to retain its human capital for a long term is
much important in the current scenario. The different strategies used for this by
enterprises are termed as employee retention strategies. The present study attempts
to identify the various factors that affects employee retention in the IT Sector in the
Chennai city. The primary objective of this study is to evaluate the influence of
employee retention methods on the personal aspects of the workforce within the
organization. Additionally, it intends to quantify the correlation between
organizational elements and employees' impression of the effectiveness of these
retention strategies.. The primary data were collected from employees in Chennai IT
park and 120 completed questionnaires were analysed using appropriate statistical
test. The research highlights the crucial function that workplace flexibility,
recognition, and management support play in developing employee contentment and
dedication.

Keywords: Employee retention, Compensation, Personal Factors, Organisational

Factors

INTRODUCTION

The Indian IT industry employs thousands of people and provides 5.8% of the GDP of the nation. The growth
of the Indian IT industry and its contribution to the global information technology sector are highly recognized.
The major cities like Mumbai, Delhi, Chennai, Hyderabad, and Bangalore have become popular choice for
Indian MNCs like Infosys, TCS, Wipro, Tech Mahendra, and others. Since skilled employees are in high
demand in the dynamic field of information technology (IT), employee retention is now emerged as a major
concern for firms operating in this sector Krishnamoorthy & Aisha (2022). Concerns regarding employee or
talent retention techniques were present in the majority of developed and emerging nations worldwide Bennett
& McWhorter (2017). The IT sector is dealing with numerous difficulties because of a lack of experience,
knowledge, and long-term viability, besides many other factors. The need for highly skilled workers in the IT
industry is growing rapidly due to the lack of available human resources, and employers across all global
industries are finding it extremely difficult to retain their workforce Anbu & Gokulakrishnan (2023). In the
instance that a worker leaves from the company, the management will have to deal with the added costs of
finding, employing, and training a replacement. Therefore, in order to retain their best talent for a higher
period of time, organizations must implement an employee retention strategy Raj (2017).

Employee retention is beneficial to both the company and the individual Shyam Nivedhan & Priyadarshini
(2018). Identifying the factors that help or impede employee retention in IT companies is imperative, with a
focus on the Chennai City. The study's aims are in line with the overarching objective of gaining a thorough
understanding of the dynamics surrounding employee retention in the IT sector Raman et al., (2022). This
study aims to provide important insights that can guide strategic decision-making within IT organizations by
analyzing the factors influencing retention strategies, evaluating their effect on specific employees, and
exploring the relationship between organizational factors and employee perceptions.
Copyright © 2024 by Author/s and Licensed by Kuey. This is an open access article distributed under the Creative Commons Attribution
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8944 Navami Anilkumar, Pravitha N. R / Kuey, 30(5), 4484

Chennai's IT sector is very important and has a big impact on the social, technological, and economic aspects
of the city. The IT sector in Chennai is a significant employer, drawing in highly qualified workers from across
the nation. It brings in a good deal of money, creates high-paying jobs, and makes a major GDP contribution
to the city. The industry has a positive economic impact on a number of ancillary industries, which promotes
general economic growth. Leading the way in technological innovation is the IT sector, which is responsible for
developments in data analytics, software development, and artificial intelligence Nedungadi et al., (2023). The
IT scene in Chennai is a fertile ground for innovation, encouraging teamwork, study, and advancement.
Numerous IT firms in Chennai are global in scope, offering services and solutions to clients all over the world.

EMPLOYEE RETENTION
A strategy used to encourage workers to be within the firm for a longer period is called employee retention. The
capability of a business to hold onto its human capital is referred to as retention of employees. It is also referred
to as a procedure that guarantees the sustainability of a business by incentivizing and motivating its resources
to stay with it for a considerable amount of time Gorde & Ulhas Gorde (2019). Any company's retention rate is
greatly impacted by factors such as job satisfaction, flexibility, pay, and organizational culture. For an
organization to succeed, employee retention is essential because high turnover rates can cause major
disruptions to workflow, result in the loss of important institutional knowledge, and increase the expenses for
recruiting and training new staffs O. & C. (2018). Positive work environments, competitive pay, chances for
professional growth, recognition, and efficient management-employee communication are all common
components of successful retention initiatives. Employers seek to establish a work environment that promotes
employee engagement, happiness, and loyalty since these factors eventually support the stability and
productivity of the company as a whole Babatunde et al. (2023). There are six key factors that contribute to
keeping highly skilled tech personnel in the company. These include pay, training, work-life policies,
opportunities for professional growth, assisstance from supervisors, and job features Dockel et al. (2006). The
major factors affecting retention of employees can be explained as:

COMPENSATION
Compensation, in the words of Milkovich and Newman, "it is regarded as among all reward kinds, one of the
most crucial and critical elements in retention."

TRAINING AND DEVELOPMENT

Most of the time, a business will make investments in the education and training of its employees with the
expectation that they will pay those costs back and produce outcomes. It is one of the most important methods
for keeping employees on staff.

REWARDS AND RECOGNITION

The rewards conveys the idea that workers are appreciated in the company. Additionally, it is critical that every
worker or employee feels valued, acknowledged, and appreciated at work. This is achieved through recognition.
Loyalty is increased when coworkers, supervisors, team members, and customers recognize the employees
Kaur & Dilawari (2015).

WORK – LIFE BALANCE

Karatepe found that offering work-life harmony to employees lessens their desire to quit the company, and it
is established that work-life balance and employees' decisions to stay are positively correlated Mehta et al.
(2014).

WORK ENVIRONMENT
Ramlall had emphasized that understanding each employee's unique needs inside the company is a
prerequisite. This promotes dedication and gives the company a respectable work atmosphere. In order to keep
and satisfy workers, they also need to put in place strong HR practices that guarantee a sufficient degree of
privacy at work Ramlall (2003).

JOB SATISFACTION
The extent to which job satisfaction affects performance, dedication, productivity, and absenteeism is
significant. Moreover, job satisfaction lowers the expense of recruiting new staff members in addition to
improving employee retention Murray & Murray (1999).

WELFARE
Welfare facilities may be viewed as a strategy to increase employee retention in the company. Insurance and
pensions are examples of welfare benefits that generally reduce turnover. The fringe benefit indicators takes a
value of one if an employee receives paid maternity leave, employer-sponsored childcare, employer-funded
education and training programs, or employer-funded insurance (life, health, and dental) Perera (2015).
 Navami Anilkumar, Pravitha N. R / Kuey, 30(5), 4484 8945

COMMUNICATION
In order to retain current employees and motivate them to give their all in their performance, communication
strategies about career development and management are essential Singh et al., (2024). Most employees rank
addressed open communication as their top priority and believe it to be of utmost importance. Additionally,
providing employees with information through engaging, relevant, and personal communication gives the
company a competitive edge Harris (2004).

CAREER DEVELOPMENT
Growth on both a personal and professional level influences employee commitment to stay, as evidenced by
opportunities for advancement within the company. Prospects for growth and recognition perform an
inevitable role in impacting an employee's decision to remain with a company. It is also noted as a crucial
component for chances for professional advancement. These consist of accurate career previews, internal
promotions, and advancement plans Prince (2005).
From the existing literature, it is evident that these factors influence employee retention in companies.
Retaining skilled employees inside the business can be facilitated by providing them with suitable
compensation, relevant training and professional advancement opportunities, incentives and
acknowledgment, a healthy work-life equilibrium, a positive work atmosphere, welfare benefits, job
contentment, an efficient communication system, and opportunities for career progression Ashford et al.
(1989).

Need for the Study

Employees are the foundation of any organization, and this must be understood by the organizations. Today,
finding and keeping the best talent for the organization is the biggest problem facing the IT sector. Keeping
current personnel is the most crucial goal for every organization, as hiring outstanding people is more
important to management (Steel et al. 1993). This is because a significant amount of cash paid for the initial
training of new hires, making employee retention more important than recruitment Aggarwal (2018).
Organizational leaders and Human Resources (HR) professionals need to understand what factors affect
employee retention. The knowledge gathered from this research can help develop and improve strategic HR
practices that will draw and keep elite talent in the competitive IT sector. The competition to acquire and retain
human capital is extremely thought-provoking in the Indian corporate climate Panoch (2001). Excessive staff
turnover can negatively affect an organization's performance as a whole, impede project continuity, and hinder
knowledge transfer.

Statement of the Problem

Businesses are under a lot of pressure from the competition in the IT sector to retain top talented personnel in
the market Swaroopa & Sudhir (2019). Organizations must reconsider their approaches to identifying and
retaining talent in light of the fierce competition for hiring fresh talent. Companies could grow impatient due
to the high demand for Indian IT professionals worldwide, which offers a lot of job opportunities for employees
and an expectation of job change Bama (2021). Organisations can address these challenges and cultivate a
stable and dedicated workforce that supports long-term growth and success by devising retention strategies
that work. The major objective of the paper is to offer practical insights that can guide the development of
successful retention plans adapted to the particular circumstances of Chennai City's IT sector.

Literature Review
In the words of Mehta (2014), employee loyalty and commitment have grown in importance as organizational
strategies nowadays. For the long-term benefit of the company and its members, it is not only critical to have
the greatest and most gifted workforce; it is also critical to be able to hold them. In the opinion of Babatunde
(2023), any firm's most valuable asset is its workforce. Therefore, it makes sense for a company to value its
assets and take all reasonable steps to preserve and protect them. Even though employee turnover is ultimately
unavoidable, it should still be kept to a minimum. Krishnamoorthy (2022) in his study stated that Employee
satisfaction is a significant issue, which contributes to the high rate of job switching in the service sector.
Employees should be taken into account, despite the fact that organizations are investing a substantial amount
of money in HR processes to reduce attrition. According to Dockel (2006), work/life policies, supervisor
support, job features, and salary were the most relevant explanatory variables that showed a statistically
significant influence on the increase in organizational commitment in technologically adept individuals.
According to Prince (2005), the ability of internal candidates to perform well in the short term when filling
open positions has typically been the main consideration in the hiring process. The possible impact of
emphasizing career development in the employee transfer decision-making process is examined in his study.
The unique professional development requirements and growth opportunities of each applicant serve as a
crucial foundation for internal selection decisions in a career-focused transfer process. In the study, Khuong
(2013) discovered that amongst the bank employees in Ho Chi Minh City (HCMC), Vietnam, job satisfaction,
organizational environment, and incentives were related to organizational loyalty. These characteristics have
an indirect and direct impact on employee loyalty through job satisfaction. The 201 workers of 11 banks
participated in the study, and the researchers suggested that those elements be offered at work to encourage
8946 Navami Anilkumar, Pravitha N. R / Kuey, 30(5), 4484

employee loyalty. Waghmare (2008) suggested that employers must implement the procedures and policies
necessary to guarantee employee dedication and retention. Retaining top talent helps organizations retain
customers and clients as well. Having valuable employees on staff gives you a competitive edge (Verma &
Biswas, (2023).

Mitchell (1982) investigated the connection between retention and employee benefits observed a gender
disparity in the resignation pattern and came to the conclusion that men were more likely to be retained by a
pension system than women were, and that women were less likely to be retained by the loss of fringe benefits.
Spencer (1986) in his article "Employee voice and employee retention" examined the connection between
voluntary turnover and employee opportunities to express dissatisfaction in 111 short-term general care
hospitals. According to the study, there are many mechanisms for employee voice whether there is a union or
not, and these mechanisms are linked to high retention rates. Empirical research on the impact of work and
family benefits on the institutional commitment was conducted by Grover & Crooker (1995). The authors
emphasized that benefits include childcare assistance, flexible scheduling, parental leave, and childcare details.
Access to work/life policies was available to employees, and it significantly impact on the dedication of the
organization. Additionally, the outcomes showed a notable reduced desire to leave their positions.

Thomas & Ganster (1995) demonstrated how supportive supervisors and the presence of work-life policies that
promote families, especially schedule flexibility, had a direct positive impact on employees' perceptions of
having control over their work and personal lives. Moreover, it denotes an immediate effect on behavioral,
physiological, and psychological markers of stress. In turn, reduced levels of work-family conflict were linked
to decreased levels of blood cholesterol, depression, somatic complaints, and job dissatisfaction. Mobley (1977)
examined the mediating relationship in the correlation between employee turnover and job satisfaction. The
model of turnover proposed that employment and surroundings have an impact on job satisfaction, which in
turn influences thoughts of quitting, an assessment of the usefulness of searching for a job, a job search, an
assessment of the alternatives, a contrast of the alternatives and the current position, an intention to leave or
remain, and ultimately turnover or retention behavior Siddiqui (2012) in the study ascertained the correlation
between the variables that influence faculty members' intentions to leave various Karachi colleges. The study's
findings indicate that among the employees of various colleges in Karachi, six out of ten factors are significant
predictors of intention to leave. To keep faculty members satisfied, special attention should be paid to the
following six factors: principal, working conditions, salary, job security, recognition, and promotion.

Adamska-Chudzińska (2020) the study shows that an organization's ability to function is largely determined
by its human capital rather than its financial or capital resources. Motivating support for employees—especially
the gifted ones—must come in a timely way if an organization is to survive and thrive. Managers who use
situational leadership methodologies to regularly adopt strategies that incorporate pertinent retention factors
and incorporate them into their main business plan are the answer to the problem of employee retention.

Acquah (2018) The study discovered that elements that GRA employees believed affected their retention
included skill recognition, a supportive and encouraging work environment, family support programs, positive
working relationships with coworkers, and strong teamwork. According to the study, GRA uses a variety of
retention strategies, including difficult work, high performance incentives and bonuses, chances for
professional growth, pay increases on a regular basis, clear career ladders and opportunities for advancement,
and a sense of community within the company. The findings of the study led to the adhering to suggestions
being made: other enabling public sectors should establish a working environment that guarantees the
realization of employee retention factors; all staff members should have access to employee retention tools;
and a tripartite partnership between the ministry, governmental organizations, and educational institutions
should ensure that staff retention resources and elements are implemented across all organizations, but
especially in the public sector.

Subramanian et al. (2015) Academics, researchers, and HR managers in the field have been paying close
attention to the crucial idea of retention. Crucial elements including information or need, search and method
choice, behavior guided by goals, reinforcement in social settings, and achievement satisfaction are
fundamentally what make up retention. Retention merits greater consideration for a number of reasons.
Motivated workers come up with innovative methods for completing tasks. Irabor & Okolie (2019) An
organization can achieve greater success by maintaining a highly trained, skilled, and competitive workforce;
conversely, a lack of such talent can seriously impede growth. Furthermore, it has been observed that
staff turnover is turning into a problem that costs a lot of money, time, and effort. Hence, every resignation that
is avoided saves fund. Moreover, in order to increase employee retention, all firms must develop strategies that
strengthen the workplace, raise morale among staff members, and improve job satisfaction. This, in turn, leads
to elevated profits, customer contentment, and customer retention.

Okpara (2004) The impact of information technology (IT) on society is significant. Information systems'
function in managing multinational corporations has been impacted by trade globalization, the rise of
 Navami Anilkumar, Pravitha N. R / Kuey, 30(5), 4484 8947

information economies, and the expansion of the web and other worldwide networks of communication. The
goal of this study was to find out how much personal factors, including gender, age, education, experience, and
income, predict the job satisfaction of IT managers in Nigeria. According to the study, staff churn has a
significant financial and customer satisfaction cost for a company. Sudhakaran & Senthilkumar (2019) The
study emphasizes how important it is to look into the causes of technology workers' voluntary departures from
their existing employers in order to have a successful retention plan. In addition to outlining a thorough
retention strategy, this research offers some less talked-about retention ideas, such as making sure every
employee is a good fit for their position, acting quickly to veto An employment offer that comes with a
competitive compensation raise for the employee, and allowing other employees to request changes if they
believe the employee is valuable to the company. Cappelli (1999) The collection of HRM techniques that a
company uses to address high employee churn rates was called employee retention management in this study.
Additionally, the majority of the researchers looked into how HRM practices affect organizational commitment,
employee retention rates, and financial performance.

Yang (2012) This study put forth a conceptual model based on earlier research and postulated that affective
commitment among frontline employees is facilitated by five HR practice constructs: information sharing,
competence development, empowerment, recognition, and fair rewards. The outcome showed that affective
commitment of contact employees is significantly influenced by high-involvement HR practices. Furthermore,
it was discovered that affective commitment was a useful mediator between highly involved HR procedures
and contact employees' civic engagement. Curtis & Wright (2001) It is imperative that managers and other key
personnel comprehend the significance of employee commitment and retention, as well as the strategies
involved in achieving it. It is important to incorporate policies and initiatives that promote employee stability
and loyalty into the organization's daily operations and culture so that devoted workers are the rule rather than
the exception. People who are fully dedicated to an organization want to stay members, they believe in and
support the institution's values and objectives, and they are prepared to work hard on the organization's behalf.
For the good of every employee in the company, they ought to be handled like a priceless resource that needs
to be protected and preserved.

Conway & Briner (2002) In his study, the psychological contract—that is, whether an individual is employed
full-time or part-time—is tested as an explanatory framework for differences in attitudes across work status.
The analysis's findings demonstrate that full-time and part-time workers have different perspectives on a
variety of dimensions, and that variations in some attitudes (like satisfaction) but not others (like affective
commitment) could be explained by psychological contract fulfillment. Furthermore, analyses show that job
status seldom modifies the associations between outcomes and psychological contract fulfillment, suggesting
that part-time workers will respond to psychological contract modifications in a manner akin to that of full-
time workers. Causes of turnover were identified by Dockel et al. (2006) from the point of view of the employee.
Five categories of technical worker rewards were found to have an impact on turnover in the study. They are
affiliation, careers, benefits, direct financial (cash), and job content. The study also recommended that internal
factors that lead to employee dissatisfaction be addressed as a means of addressing turnover in research and
development. It also offsets the external attraction of competing businesses.

According to Naggiar (2001), career development, non-financial compensation, orientation, and feedback give
firms a competitive edge when it comes to employee retention. The company employs a number of tactics to
keep workers happy, including financial compensation, financial incentives, and training, but it doesn't aid the
company in keeping its staff motivated. Preyra & Pink (2001) looked into general attitudes of satisfaction as
well as aspects like satisfaction with pay, coworkers, and supervisors. They discovered a negative correlation
between turnover intentions and overall satisfaction. Pay or compensation satisfaction is particularly
important since it could be interpreted as the reverse of relying on the purpose to motivate and keep employees.
In the study by Saravanan & Tt (2017) shows that managing and keeping employees in this cutthroat
environment is a challenging task. Applying appropriate retention strategies can significantly lower employee
turnover rates, which is where HR managers come in. In order to create new plans and take appropriate action,
management must have a thorough understanding of the changing needs of each and every employee. It is
imperative for any organization to have a clear understanding of the reasons behind an employee's resignation
and to take swift action to prevent such employee turnover. According to the study's findings, workers stay with
a company that offers them a competitive salary and job security.

In her research, Agarwala (2003) found that tactics including autonomy, career goals, involvement, delegation,
and a collaborative and encouraging work environment may be crucial for keeping employees on staff. The
study also made clear that rather than forbidding or locking out employees from looking for more alluring and
profitable opportunities outside the company, employers should cultivate employee loyalty in order to keep
them on board for the long term. Brown & Yoshioka (2003) looked at how staff members felt about the young
people's and leisure service organization's purpose. Employees expressed generally favorable opinions about
the organization's mission. Additionally, it has to do with how happy employees are and how likely they are to
stick with the company. However, employees frequently cite a lack of mission attachment as the primary reason
8948 Navami Anilkumar, Pravitha N. R / Kuey, 30(5), 4484

for their dissatisfaction with compensation. According to the study, the mission may be important in luring
new hires but less successful in keeping existing ones. Ahuja et al. (2007) investigated the history of intention
to switch among road warriors who work in information technology. In the computer and software services
industry, those who work long workweeks at client sites away from home are known as road warriors. The study
focused on how road warriors' work weariness and organizational commitment were impacted by perceived
work overload, work-family conflict, reward equity, and job autonomy. The study went on to say that the work-
family conflict is a major cause of stress for IT road warriors, who must juggle work and family obligations
when working at a remote location for a week, and that the context of IT workers influences turnover intention.

Research Gap
In addition to managing morale and organizational effectiveness issues that are linked with employee turnover,
it is critical for any organization to comprehend and address employee retention issues. Employers must
therefore anticipate how their staff members will react to changes in the competitive talent market. Following
a literature review on employee retention strategies and organizational effectiveness from a variety of sources,
the researcher concluded that there was a lack of attention to this relationship by earlier researchers. Hence
the study is conducted to fulfil the identified research gap.

Objectives
The study aims to achieve the following objectives:
⮚ To identify the perception of employees on employee retention strategies in the IT Industry.
⮚ To assess the influence of employee retention strategies of organisation on the personal factors of
employees.
⮚ To measure the relationship between organizational factors on the perception of employee’s retention
strategies.

Hypothesis
H1: There is no significant difference in the perception of employee retention strategies between male and
female employees
H2: There is no significant influence of employee retention strategies implemented by the organization on the
personal factors of employees.
H3: There is no significant relationship between organizational factors and the perception of employee
retention strategies.

Methodology

Both an analytical and a descriptive methodology have been used in the study. For the study, data from both
primary and secondary sources were employed. While the analytical methodology is used to measure the
organizational effectiveness of the determinants and determine various factors influencing employee retention
strategies in the IT industry, the descriptive methodology focuses on defining conceptual issues. The secondary
information was gathered from the sources like journals, magazines, publications, reports, books, articles,
research papers, thesis, etc. Chennai, as an urban city, significantly represents employees from various
socioeconomic strata. The primary data were collected from employees in the IT industry, specifically software
engineers from different Chennai-based IT firms by distributing structured questionnaires. The respondents
were chosen at random. In this study, a closed-ended questionnaire with statements and multiple choice
questions were employed. There were 150 questionnaires distributed in total and 120 responses were analysed
and 30 responses were rejected as it was not filled properly.
 Navami Anilkumar, Pravitha N. R / Kuey, 30(5), 4484 8949

Results and Discussion

Demographic Variables

Table 1: Demographic Profile of Respondents

Source: Primary Data

Table 1 presents the demographic characteristics of those who took part, offering insights into the distribution
of key factors such as gender, age, educational background, marital status, organizational hierarchy, total
experience in the organization, and income levels. Of the study participants, 60% are women and 40% are men.
This distribution points to a fairly balanced gender representation in the sample. With 45.8% of the population
under 25, 31.7% between 26 and 35, 12.5% between 36 and 45, and 10% above 46, the age distribution is varied.
Because a wide range of age groups are represented in this distribution, a thorough understanding of employee
retention across various career stages is made possible. The educational backgrounds of the participants are
diverse; of them, 30.8% possess an undergraduate degree, 42.5% a postgraduate degree, and 26.7% a
professional qualification. Diverse viewpoints on employee retention can only be captured with this diversity
in educational attainment.
There are 58.3% unmarried people and 41.7% married participants in the study. An individual's priorities as
well as considerations regarding job satisfaction and retention may change depending on their marital status.
8950 Navami Anilkumar, Pravitha N. R / Kuey, 30(5), 4484

There is a good representation of the organizational hierarchy, with 18.3% of executives at the top, 64.2% in
middle, and 17.5% in lower positions. This guarantees a fair assessment of retention tactics from various
organizational perspectives. The total experience within the organization is distributed across different
categories: 61.7% have 0–5 years, 15.8% have 6–10 years, 12.5% have 11–15 years, and 10% have more than 15
years of experience. This makes it possible to understand how tenure affects retention.
The distribution of income is as follows: 30.8% make less than $25,000, 24.2% make between $25,000 and
$50,000, 19.2% make between $50,000 and $75,000, and 25.8% make more than $75,000. To understand
how compensation affects employee retention, retention strategies across income brackets must be examined.
To sum up, the study participants' demographic characteristics are varied and encompass a range of
dimensions that facilitate a thorough examination of the organization's employee retention strategies.

1. Examining the differences in Employee Retention Strategies Among Male and Female
Employees
H1: There is no significant difference in the perception of employee retention strategies between male and
female employees.

The mean perception scores for employee retention (Total_ER) are provided for two groups: Male and Female.
The Male group has a mean of 102.2083 with a standard deviation of 18.84196, while the Female group has a
mean of 96.8750 with a standard deviation of 23.78480.

Table 3: Independent Sample t-test

 Navami Anilkumar, Pravitha N. R / Kuey, 30(5), 4484 8951

The Levene's test statistic is 2.404 with a p-value of 0.124. Assuming equal.variances, the t-test compares the
means.of.the.Male and Female groups. The t-statistic is 1.304 with 118 degrees.of.freedom, and the p-value is
0.195 (two-tailed). The mean.difference is 5.33333, and the 95% confidence interval for the difference spans
from -2.76620 to 13.43286. If equal variances are not assumed (according to the Levene's test), the t-statistic
is 1.366 with 114.421 degrees of freedom, and the p-value is 0.175 (two-tailed). The mean difference and
confidence interval are provided as well. The t-tests suggest that there is no statistically significant difference
in the perception of employee retention between male and female employees, as both p-values are greater than
the typical significance level of 0.05.

2. Influence of Employee Retention on the Personal Factors of Employees.

H2: There is no significant influence of employee retention strategies implemented by the organization on the
personal factors of employees.

Table 4: Model summary of Employee Retention Strategies on the personal factors of

employees.

From the above table, it is found that R value is 0.651, R 2 value is 0.424, Adjusted R2 value is 0.382, Standard
Error of the Estimate is 3.00655. This implies the independent variable explains 42.4% variance over the
dependent factor personal factors of the employee. This leads to the verification of the regression fit as shown
in the following ANOVA table.

Table 5: ANOVA of Employee.Retention.Strategies on the.personal factors.of employees.

From the above table, it is clear that F value is 10.205, P value is 0.000 is statistically significant at 5%. This
implies there is a deep relationship between retention strategies implemented by the organization on the
personal factors of employees. The individual influence is identified in the following coefficient table.
8952 Navami Anilkumar, Pravitha N. R / Kuey, 30(5), 4484

Table 6: Coefficients of Employee Retention Strategies on the personal factors of employees

Source: Primary Data

Based on the co-efficient table provided, it is evident that development and training have a significant positive
impact on the dependent variable. An increase of one unit in Training and Development is linked to a 0.439
increase in the dependent variable. The coefficient for the impact of rewards/recognition is positive, although
it does not reach statistical significance (p > 0.05). The variable of Career Development has a beneficial and
statistically meaningful influence on the dependent variable. Welfare has a positive impact on the dependent
variable, but the coefficient is marginally significant (p < 0.1). Compensation, rewards/recognition, work-life
balance, work environment and communication have no significant statistical influence on the personal factors
of the staff as the significance value is higher than 0.05.
Based on the overall model's statistical significance (Table 2), there is evidence to reject the null hypothesis.
However, when looking at individual variables (Table 3), many of them are not statistically significant,
suggesting that specific factors may not significantly influence personal factors of employees.
The hypothesis "There is no significant influence of employee retention strategies implemented by the
organization on the personal factors of employees" is rejected. The overall regression model is statistically
significant (p < 0.05), indicating that at least one of the independent variables (employee retention strategies)
has a significant influence on the personal factors of employees.
H3: There is no significant relationship between organizational factors and the perception of employee
retention strategies.
 Navami Anilkumar, Pravitha N. R / Kuey, 30(5), 4484 8953

Table 7: Correlation

The correlation coefficient (r) provides valuable insights into the magnitude and trend of the linear relationship
between the two factors. Based on the data, it appears that there is a slight positive association (correlation of
0.338) among the general impression of employee retention ("Total_ER") and organizational factors
("Org_Var"). The p-value of 0.000 is less than the commonly used significance level of 0.05, indicating that
the correlation is statistically significant. The results show that there is a statistically significant, positive
correlation between organizational factors and the perception of employee retention strategies. This implies
that as organizational factors change, there is a tendency for the perception of employee retention strategies to
change in a positive direction.
Hence null hypothesis “There is no significant relationship between organizational factors and the perception
of employee retention strategies” is rejected.

Findings
The major findings of the study are outlined as follows:
⮚ The vast majority of those surveyed are female and majority has the age below 25.
⮚ Majority of the respondents have the educational qualification post-graduation and are working as middle-
level employee.
⮚ Major percentage of respondents have less than five years of experience in the organisation.
⮚ The findings of the poll revealed that there is no noticeable disparity in the perception of employee retention
between male and female employees.
⮚ Training and Development, Welfare, and Career development have been shown to have a beneficial effect
on the personal factors of employees.
⮚ Compensation, rewards/recognition, work-life balance, work environment and communication have no
significant statistical influence on the personal factors of the employees.
⮚ The study found that employee retention strategies influence the personal factors of employees.
⮚ The paper also found that the organizational factors and the perception of employee retention strategies
have a significant relation.

Suggestion
The suggestions or recommendations of the study are:
⮚ Support from management is crucial for retention. In order to retain top talent, employers should assist
their staff by praising their hard work in order to advance their career ladder.
⮚ IT companies should support their employees with good coordination and spiritual teamwork; they should
also encourage work from home or flexible scheduling without penalizing them.
⮚ IT companies should make an effort to provide potential employees with adequate rewards and recognition,
as this fosters emotional bonds among staff members who intend to stay with the company.
⮚ In order to draw and keep both fresh recruits and current team members, organizations must improve
integration and employee engagement.
8954 Navami Anilkumar, Pravitha N. R / Kuey, 30(5), 4484

Conclusion

To conclude, this study offers insightful information about employee retention strategies used in the IT sector.
There were no discernible variations in retention perceptions based on gender. The research highlights the
crucial function that workplace flexibility, recognition, and management support play in developing employee
contentment and dedication. These results offer useful guidance to firms looking to improve employee
retention and develop a strong, motivated workforce in the ever-changing IT environment.

Future Research Directions

In order to evaluate the sustainability of tactics over time, longitudinal analyses should be taken into account
in future research on personnel retention methods in Chennai's IT sector. A better insight could be obtained by
comparative studies conducted in other cities or areas, qualitative methods such as interviews, and
investigation of industry-specific and demographic aspects. Keeping up with changing trends requires
researching the effects of developing technology, employee well-being programs, and the connection between
innovation culture and retention. Investigations into global viewpoints, the impact of outside variables, and
the function of employee feedback channels are also necessary. Furthermore, researching cross-functional
cooperation inside companies can provide insight into the efficacy of a comprehensive retention strategy. The
goal of these upcoming research avenues is to improve our understanding of the dynamics of employee
retention in the dynamically shifting IT sector.

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