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Research Proposal For PhD

Title: “A Study of the Impact of Organizational Retention Strategies on

Employee Turnover”

Successful companies have for many years confirmed that having a superior workforce is
the key to sustainable market domination and business success (Pitiris, 2009). They also
emphasize the value and the importance of retaining skilled human capital in ensuring that it
achieves its objectives. Employee retention entails a combination of activities that, when
working well together, results in employee staying with the organization for a long time.
According to Hendricks, employee retention should focus on:
 Attracting employees to join the organization through focused recruitment and ensuring
that employee with crucial skills who are already in the organization stay.
 Keeping employees motivated;
 The fact that skills retention depends upon all the other human resource management
practices within the organization and is not just the recruitment issue (Hendricks,2006).
Another study in retention of employees suggests that employee retention starts at the job
description, recruitment, selection and orientation stages. The author argues that the elements
mentioned above form the foundation for any retention strategy that a company may adopt
(Dibble, 1999). Organizations are accelerating their talent retention strategies which would
increase the stickiness of the employees to their jobs for longer terms. The fact that retention
is most cost effective than hiring, is now being brought out strongly in research as well.
According to LBW Consulting (Leadership in Business, Worldwide) the cost of replacing an
employee ranges from 29% (non-management) to 46% (management) of the person’s annual
salary. Then there are the sunk costs such as, induction and training expenses, other
administrative people costs incurred on the person, expenses are also incurred when someone
else does the person’s job in the interim, leading to the domino effect on employee cost.
Subsequently there is a new hiring cost that on average would be 25% of the annual salary.
There is also the probability that the new employee’s salary would be higher.

. Companies are increasingly mapping employee retention and hiring costs and
eventually retention is emerging as a cost effective tool. At companies like Asian Paints, the
talent strategy is strongly tilted towards the old paradigm of ‘grow’ from ‘within’ (Times of
India, 2012). Therefore, managers must recognize the employee as a major contributor to the
efficient achievement of the organizational success (Abbasi et al, 2000). Specifically in our
study we set out to find causes of employee turnover and effective retention strategies that
can help in curbing the rate of employee turnover.

Effective employee retention is the systematic effort by the employers to create and foster an
environment that encourages current employees to remain employed by having policies and
practices in place that address their diverse needs. A strong retention strategy eventually
becomes a powerful recruitment tool. Employee retention matters as training, time, investment,
lost knowledge and candidate search are involved in recruitment of a new employee. Hence,
these employees are extremely crucial to the organization since their value to the organization is
essentially intangible and not easily replicated (Meaghan et al, 2002).

. Employee retention involves taking measures to encourage employees to remain in the

organization for the maximum time period. Employee turnover often results in a drain on
management time, and creates pressures in workforce planning. Intangible costs include:
negative impact on employee morale; adverse effect on social capital; erosion of organizational
memory (Dess and Shaw, 2001). Best way to enhance employee retention is to understand what
the employees require from organization and provide it to them. Each employee’s need would be
different, but organizations should be able to reach the limits and act accordingly. They should
make the employees feel that they are most valuable for the organization (Leena and Lissy,
2012). Companies need to focus on the long-term sustainable human issues in the beginning of
the life of the organizations or operations. If this is well managed and aligned with the
expectations of the employees and well communicated across the organizations, they are most
likely to stay with the organization and management. They feel they can trust even though the
end approaches. A successful strategy will focus on the people and ensure they are treated fairly
(Londolani Rampfumedzi, 2009).

The main Research Problem is that “to identify the best practices and methods adopted by
various organizations to help enhance commitment and employee retention”


1. To study the employee’s perception towards the Organisation Turnover

2. To analyze the shortcomings/limitations of Employee Rention Programmers

followed by the organization

3. To study the impact of methods adopted by organization for employee’s retention


Research Design is heart of the research study. A design is used to structure the research, to
show how all of the major parts of the research project the samples or groups, measures,
treatments or programs, and methods of assignment work together to try to address the central
research questions. In other words .It is the "glue" that holds all of the elements in a research
project together. Considering the nature of the research, Exploratory as well as an
Experimental approaches have been employed ,Our study emphasizes on the various retention
strategies that can helpsignificantly in controlling the employee turnover


Inferential statistics viz: testing of hypothesis, ANOVA and regression will be extensively used.
Parametric tests like z- test, t –test and non parametric tests like Chi – square tests will be used or
testing the hypothesis framed.

Statistical tools: MS Excel, SPSS .


Through this research we will try to find various trends over the years and practices used across
industries for improving employee retention and commitment. For any organizations to survive
in today’s ever increasing competition where employee poaching is on the rise, it is very
important to retain their best employees and keep them committed towards the organization