CHAPTER 2

REVIEW OF LITERATURE

2.1 INTERNATIONAL REVIEW

Qing Kathy Ma (2018): Increasing employee retention benefits organizations in many ways.
Better retention has a bottom-line value given that turnover costs between one and one-and-a-
half times an employees’ annual salary. A single dollar estimate, however, can mask the
problems low retention can create. When someone leaves an organization, so does their tacit
knowledge. A person exiting can require co-workers to cover for the missing person, and the
extra work can create more stress, higher absenteeism and lower productivity. Departures can
be contagious and make others consider leaving, possibly creating another turnover cycle in
the turnover. Keeping your best talent from leaving is critical to firm success. Companies can
increase retention by embedding their employees through fit, links, and sacrifice. Our paper
developed an embeddedness-based model of employee retention. We also provided specific
organizational practices to improve organizational embeddedness.

Ezekiel Chinyio (2018): Literature indicates that monetary reward or compensation impacts
on the level of attraction, motivation, job satisfaction and retention of employees. The elements
of compensation include salary, bonuses (allowances), gratuity and pension. The purpose of
this study is to investigate how these four elements of compensation specifically influence the
attraction, motivation, job satisfaction and retention of public sector construction employees of
Jigawa State of Nigeria to inform how their employer can raise the current levels of satisfaction
and retention of employees. The results established that construction employees in Jigawa
State’s public sector were motivated by allowances and gratuity, attracted to the job by salary,
pension and gratuity and remained in their jobs through the influences of gratuity and pension.
Gratuity played a major role, as it impacted on all the four variables studied.

Angie R. Skelton (2018): Employee turnover expenses can cost businesses more than 100 per
cent of a single employee’s annual wages and negatively affection an organization’s production
and profits. High employee turnover also could affect community tax collections, social
programs and physical and mental health issues. Therefore, understanding contributors to
higher employee turnover remains essential for organizational managers from both a corporate
and societal standpoint. This paper aims to provide an analysis of how job satisfaction and job
embeddedness could predict employee turnover intent. The results of the multiple regression
analysis showed a significant relationship between job satisfaction, job embeddedness and
turnover intent; and that satisfied and committed employees are less likely to plan to leave their
employment.

Marwa Gaber Ahmed Fahim (2018): The purpose of this research is to explore the dynamics
of using strategic human resource management (SHRM) practices in the public sector. More
specifically, this paper tries to point out some main aspects of SHRM, which strongly influence
the decision of employees to stay. The empirical study here tends to reveal greater insights into
the SHRM-retention relationship and its validation at the National Bank of Egypt (NBE). This
paper concludes that the employment of best HRM practices is deemed a remarkable strategic
tool in the retention of core public employees. Also, the results of analysis provide evidence
that SHRM contributes to employee retention at NBE.

Bodjrenou Kossivi (2016): Employees are the most valuable assets of an organization. Their
significance to organizations calls for not only the need to attract the best talents but also the
necessity to retain them for a long term. This paper focuses on reviewing the findings of
previous studies conducted by various researchers with the aim to identify determinants factors
of employee retention. This research closely looked at the following broad factors:
development opportunities, compensation, work-life balance, management/leadership, work
environment, social support, autonomy, training and development. The study reached the
conclusion that further investigations need to be conducted regarding employee retention to
better comprehend this complex field of human resource management. Some factors such as
organization culture, training and development, autonomy are less explored than supervision
and leadership for instance.

Diwakar Singh (2019): Employees are the most important, valuable and productive asset of
an organization and retaining them is one of the toughest challenges for the managers. As the
replacement cost of key employees involves huge turnover, there is a need to develop a fully
integrative retention policy to tackle such type of problems. The objective of this study is to
critically analyse the various works done in the field of employee retention and highlight
factors responsible for employee departure and retention initiatives followed to retain them. As
the study is descriptive in nature, a number of secondary sources are explored to synthesize the
fragmented knowledge and present the literature review in a concise format. As the ever-
changing technology, stiff competition, and globalization has brought human resources at the
forefront in organizational roles, no organization wants to lose their talented employees. The
literature review will present traditional retention techniques followed as well as contemporary
techniques used to retain the employees. Also, more emphasis will be put on the factors such
as leadership style of superiors, ability to exercise control with respect to decision-making and
problem-solving, desire for career advancement and skills development, flexible working and
ever increasing aspiration on retention of key employees.

Dario Vasquez (2014): Focusing on employee retention is vital to increase organizational

performance and strengthen a nation’s economy. Employee turnover leads to high
unemployment and slow economic growth around the globe. The purpose of this study was to
explore the reasons and motivating factors that cause employees to remain in hospitality despite
the high turnover rate in the industry. The data for this study were collected using semi
structured interviews, conducted with hospitality employees in South Florida. The study
employed a qualitative phenomenological method to acquire the lived experiences of
participants. The findings were in accord with the employee retention approach. The findings
revealed that creating a good working environment including management support, reward,
and incentive programs would lead to employee retention in the hospitality sector.

Eurmini Senevirathna (2017): In today’s dynamic business environment, increased

globalization, with social, economic and technological developments has resulted with a fierce
competition among companies. Talent shortage being identified as a salient issue globally; had
caused competition even in the labour market. Thus, this had made it crucially important and
mandatory for companies to retain their existing employees, although it is a challenging issue
encountered by firms across the globe. In the competitive, dynamic business environment,
retaining employees has become a mandatory requirement. Thus, the course of this study being
mainly to identify and analyse the factors affecting employee retention, four commonly
identified factors; compensation, work-life-balance, working-environment and superior-
subordinate relationship in past researches were considered in this context.

Hlanganipai Ngirande (2014): This study explored the impact of rewards on job satisfaction
and employee retention among nurses. The objectives of this study were to determine the
impact of rewards on employee retention, to establish whether there is a relationship between
rewards and job satisfaction, to establish the relationship between job satisfaction and
employee retention and to make recommendations to the policy makers in the organization on
possible ways/strategies to improve employee retention based on the research findings. The
study utilized a quantitative research design and 180 nurses were randomly selected as research
participants. between the independent variable and the dependent variable. The study revealed
that employee rewards lead to employee retention but however, they do not result in job
satisfaction.

Margaret Deery (2015): This paper aims to examine the themes of talent management, work-
life balance (WLB) and retention strategies in the hospitality industry. The study was
undertaken through an analysis of the key themes in the most recent literature. The paper uses
a framework incorporating organisational and industry attributes, personal employee
dimensions, work-life conflict and organisational strategies and examines these in relation to
whether job satisfaction, organisational commitment and employee retention improve. The key
findings emerging from this examination of the literature show that WLB appears to have
become one of the key variables when addressing issues of employee management and
retention. In the recent literature, the link between employee attitudes, such as job satisfaction
and organisational commitment, personal dimensions, such as stress and alcohol abuse, and
WLB have become closer and intertwined. These links assist in gaining more focussed
strategies to assist in retaining talented staff.

N.R.A.S.S Wijesiri (2019): In today’s business world, employee retention is one of the much
debated topics and identifying the reasons for employee turnover and implementing the
necessary policies to retain employees can be crucial. Thus, all organizations expect to
minimize the employee turnover to best possible level. Therefore, the intention of this research
is to study the impact of Human Resource practices on employee retention, conducted on the
Business Process Outsourcing (BPO) sector in Sri Lanka. BPO sector is recognized as an
emerging sector in Sri Lanka, and this sector is well known as an under-researched area. This
study is significant as such research projects have been sparse in the Sri Lankan context and in
order to fill that gap this research have been conducted for three companies namely Company
A, B and C. The analysis was mainly based on 237 executive level employees from Company
A, B and C respectively 108, 32 and 97 selected through simple random sampling. Primary
data were collected using a self-administrated questionnaire and analysed through deductive
approach. According to the results obtain through regression analysis all three companies
indicated that there is less impact of HR practices on employee retention. As a conclusion when
management of BPO sector formulate the policies in their organizations with regard to
employee retention, they should consider not only the HR practices but also, they have to
concern about other factors that can effect on employees.

Sorasak Tangthong (2014): An empirical study is conducted to investigate the effects of HRM
practices on employee retention in Thailand’s FDI manufacturing industry. HRM practices that
will be covered in this research consist of compensation & benefits management ad reward
system, and training & development. HR intervening, which act as the mediating variable, will
be the employee engagement. As the depended variable and observed variable, is employee
retention. Thus the conceptual model created for this study will comprise of two independent
variables, one mediating variable & one dependent variable. A total of 5 theoretically –based
hypotheses are developed, indicating possible positive and negative relationships among the
variables of the model. Input consists of 400 top management, human resources
manager’s/leaders and line managers of Thailand FDI’s key industrial zone in rayofg province.
The proposed model is empirically tested by using AMOS of a path analysis modelling
approach. It is hoped that this study will help both academics and those managing human
resource to realise, understand and see the influence of HRM practices and employee retention.

Shaheeb Abdul Azeez (2017): Human Resources (HR) are the most valuable asset in any
organisation. Even though organisations advanced with technology, they need HR to run the
technology. With this advancement in the industries completion among the organisations are
very high. This opens many pathways and opportunities in the hands of the HR. The major
challenge by most of the organisation today is not only managing their workforce but also
retaining them. Therefore, securing and retention of skilled workforce plays a vital role for any
organisation due to knowledge and skills of the employees are central to the institution’s ability
to be economically competitive for growth and sustainability. Additionally, employee
satisfaction is another HR issue faced by the employers today. When taken to account the
importance and sensitivity of the issue retention to any organisation, this study is aimed to
identify the relationship between HRM practices and employee retention. An employee base
of an organisation is complex and difficult to know it. Employees are the main asset for whom
the organisation depends. Retaining them will help the organisational growth in the long run
and will also add their goodwill. But the most challenging task for most of the organisations
today is employee retention and their satisfaction. Although this paper tried to explore the area
of HRM practices and employee retention by the various researchers, still much scope
remaining for more exploration in the field of HRM practices and employee retention.
Maqsood Haider (2015): This study examines the human resource (HR) practices that
promote employee retention. Effective HR practices can reduce employee turnover and
increase retention within an organization. Key employees are the instrument for overall growth
and development of an organization. This study focuses on telecom sector of Pakistan. The
most important HR practices have been identified with the help of literature. These practices
are training and development, compensation and culture. A questionnaire was developed in
this study with the help of literature to measure the identified HR practices and employee
retention. The sample size of this study was 250. Regression analysis was performed to analyse
the data. The results of multiple regressions revealed a significant impact of HR practices on
employee retention. Compensation and culture has a positive relationship with employee
retention whereas training and development has a negative one. This study guides the
management to devise the effective strategies to improve the employee retention. Attracting
and retaining key employees is always a challenge, but it has become more difficult due to the
competition for skilled employees. The employees feel that effective HR practices have a direct
and positive relationship with employee retention. The companies that successfully attract and
retain key employees offer high compensation packages and dynamic environment. The
compensation and benefits given by Telecom sector to its employees is a vital policy that helps
organizational nourishment. The employees hold the opinion that compensation/rewards
contribute to improving an employee’s loyalty and retention toward organisation.

Viviana Meirinhos (2018): This paper systematizes scientific knowledge on human resources
retention, presenting a systematic review of the literature of the last decade. The study
permitted (a) the characterization of scientific production of the last decade on the subject, (b)
the identification of the main issues associated to employees’ retention problematic, (c) the
retention factors of employees on organizations, and (d) the more prevalent human resources
management practices related to employees’ retention. Results associated retention (1) to
employees in general; (2) by business sector; (3) within human diversity; (4) by organizational
context; (5) within international missions; (6) by roles; (7) by company size; and (8) by
generation. Organizational factors represent the factors that most affect retention, specially the
good relationship with hierarchical superior and colleagues. HRM practices with most impact
on retention revealed to be selection and recruitment, induction, professional development
(performance management, training, career management), rewards system, organizational
culture, and change management. Implementing retention practices specifically addressed to
each person, organization and context is indicated to be, nonetheless, the most effective
retention practice. Results of this initial stage of the project allowed us to characterise the
scientific literature on employees’ retention, as well as identifying multiple explanatory factors
for the retention, and the Human Resources practices converging to this goal.

Roziah Mohd Razdi (2018): Changes in the career and organizational landscape have brought
tremendous effect to employees’ career, and result to blurring of organizational boundaries.
Such unpredictable events influence employees’ retention in the organizations. The paper aims
to examine the factors contributing to employees’ retention in the organizations. This
conceptual paper theorizing employees’ retention using job embeddedness theory and
Herzberg’s two factor theory. Voluminous number of studies concluded that the determinants
of employees’ retention can be categorized as the job factors and motivational factors. These
two factors are highly associated with the HR practices in the organizations which include
attracting, motivating, rewarding and retaining employees through a bundle of job policies,
practices and systems. The paper emphasizes on the importance of HRD practices in managing
employees’ retention, and highlights the dominance of HRD interventions in retaining
employees in the organizations. This paper concludes the importance of people management
or HRD practices in managing employees’ retention. The dimensions of people management
include training and development, compensation and benefits, career development,
performance appraisal and achievement.

Shuana Zafar Nasir (2018): This study has been conducted to identify the impact of HRM
practices on employee retention in higher education sector in Pakistan – Karachi. The
questionnaire was distributed to collect primary data, and it is directly conducted from the
employees to identify the factors that make them committed to serve their present organization.
The findings of the study revealed positive correlation between dependent variable (employee
retention) and independent variables (supervisor support, reward & recognition and work-life
policies). The success and prosperity of an organization is hidden in its committed and
dedicated employees. The analysis of the selected variable and their impact on employee
retention will help organizations to implement and practice such factors to hold back its talent
for a longer period of time. It was indicated in this research that all the chosen variables have
a positive influence on employee retention. Hence it’s a blend of factors that helps in employee
retention. Organizations must strive to implement practices related to retention of employees.

Agung Tegar Agum Pragalata (2019): The purpose of this research is to analyse the effect
of compensation to employee’s satisfaction and affective commitment, to analyse the effect of
job satisfaction to affective commitment, to analyse the effect of affective commitment to
employee’s retention, to analyse the effect of employee’s satisfaction to employee’s retention,
to analyse the effect of compensation through job satisfaction to employee’s retention, to
analyse the effect of compensation through job satisfaction to affective commitment and
employee’s retention, to analyse the effect of compensation through job satisfaction to, the
effect of job satisfaction through affective commitment to employee's retention. This research
is classified as causal research which uses descriptive analysis and inferential analysis, with
Partial Least Square (PLS) Method. This research uses a proportional random sampling
method, a technique which takes its sample from the population of the member which is done
randomly by omitting any level in the population with the total respondent are 170 employees.
The research's result shows compensation has an effect positive and significant on job
satisfaction and affective commitment, job satisfaction has an effect positive and significant on
affective commitment and on employee’s retention, affective commitment has an effect
positive and significant on employee’s retention, compensation through job satisfaction has an
effect positive and significant on employee’s retention, compensation through job satisfaction
has an effect positive and significant on affective commitment and on employee’s retention,
job satisfaction through affective commitment has an effect positive and significant on
employee’s retention. At last, the practical implications based on research findings are made.

Alvaro Lopes Dias (2019): One of the biggest challenges faced by companies is the retention
of employees. Studies undertaken in the area indicate that the high turnover rate, especially
characterized by voluntary dismissal, is motivated by non-alignment of employees’ interests
with company objectives. The author focused on identifying which factors related to the
employees and which factors related to the companies are determinant to retain employees and
reduce the rate of turnover. To answer this question, a survey was conducted with a sample of
264 people, between employees and employers, treated by factor analysis. The results showed
that age, gender, and marital status are not important for the employees’ permanence and that
the promotion of training, opportunities for advancement, salaries, and fair benefits are more
valued, as well as the employee’s interest in ascending professionally.

Ibrahim Abdulai Sawaneh (2019): Due to the increasing demand in the job market as a result
of several job opportunities, good employee retention strategies are vital for achieving
organizational success and performance. Considering skilled and innovative employees leaving
an organization, will subsequently have negative effects on the organization’s survival.
Employees normally abandoned their jobs when they feel dissatisfied and de-motivated by
either their supervisor and /or other de-motivating factors such as low salary, annual leave
allowance, maternity leave, rewards and incentives, remuneration, politics, poor
communication among employees, lack of respect to employees by supervisor and
management, undermining organizational culture by supervisor, training, and others. This will
lead to an employer to loose valuable and determined employees to rivals in job market, loss
of corporate memory, fracture employee customer relationship and most importantly, the moral
standing of the organization goes down to the drain. Therefore, it is essential for an organization
to retain the most valuable and experienced employees. Employee retention is referred to a
method where employees are motivated to stay longer working in an organization, or for a
specified timeframe of a project execution. The study examines the role of HR policies in
retaining valuable employees in an organization. It further tries to bridge the communication
gap between employers and employees on salient issues in the organization by maintaining
skilled and innovative employees of the organization for infinite time. The research also
indicated that, green pasture, lack of opportunities, work-life balance, lack of recognition, low
salary scale, poor reward and remuneration system, and study leave were among some of the
reasons employees leave their jobs for better opportunities elsewhere. Retaining skilful and
innovative employees should be of the utmost priority for all organizations and good retention
strategies should be intended to retain highly innovative and talented employees. Motivation
and free flow of communications produces best cultural commitment that will ultimately
achieve organizational blueprint.
2.2 NATIONAL REVIEW

Subhash C Kundu (2014): The current study purports to establish the linkage between
various retention practices and perceived firm performance and innovation performance. Using
multiple regression analysis on a sample of 563 respondents from 204 organisations operating
in India, the study has highlighted that employee retention practices in the form of development
and empowerment and supportive organisational culture are positively related to perceived firm
performance. Findings have also highlighted the positive relationship between development
and empowerment and innovation performance. However, no such relationship has been found
between supportive organisational culture and innovation performance. Implications for HR
practitioners and further researches are discussed.

Balamurugan (2016): “Employee Retention is one of the key challenges faced by IT

Organization. Employees are the assets of any organization and organization cannot afford
losing its key performers. Effective retention strategies can reduce employee turnover and
increase retention within an organization. Key employees are the instrument for overall growth
and development of an organization. Thus, for retaining best employees, an organization has
to design appropriate strategies. The present paper is to identify the major causes for employee
turnover and analyse the factors involved in retaining employees and also study the most
prominent employee retention strategies adopted by the organization. The outcome of the
study is expected to help the HR Managers of the IT Organizations in minimizing the attrition
rate by developing effective retention strategies”.

Prof. Rajbir Singh (2018): “The biggest challenge faced by Indian IT industry is not attracting
the prospective employee but retaining the talented employee as high turnover is serious
concern for organizations now days. Employees are the most vital and dynamic resources of
an organization. The critical challenge IT industry facing today is recruitment and retention of
the best talent. Employees retaining is the most imperative target for the organization because
hiring of qualified candidates 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
employees. When employees leave the job, organization lost not only employees, but also lost
the customers and clients who were loyal with the employees, knowledge of production, current
projects, competitors and past history of the organization. Organizations make enormous
efforts to attract talented employees and retain them in the organization. There are many factors
which influence retention and it is required to understand employee’s expectations, that can
make them to stay long back and perform well.

Ajaya Kumar.C.H (2016): The present study aims to show the results of review of literature
related to Employee retention practices in India in the last five years (2012-2016). The method
used to obtain literature was mainly based on electronic search using Google Scholar and J-
Gate plus, with key words such as: Employee Retention, Employee Turnover, Employee
Attrition and Retention, Employees intention to leave organisations, which yielded 350 results
out of this with the inclusion criteria like Only Empirical studies done on Indian Manufacturing
organisations, Published between 2012 and 2016. 38 studies from different authors and journals
were evaluated. The findings of the study suggest the existence of 43 different variables
practiced by different organisations to Retain employees in the organisation. The results of the
study will allow researchers to better understand the major Employees retention practices,
which can be studied how each variable effective or ineffective in Retaining Employees.

Vandana Sharma (2016): The hyper-competitive Indian business environment is

experiencing an intensifying fight for knowledge workers. In order to control employee
turnover as a strategic concern, the right retention strategy would need to dually ensure meeting
the aspirations of employees and, at the same time, enhancing their productivity and reduce
turnover cost. With the aims to provide base to device effective employee retention strategies
in IT companies in India the present study explores the organisations’ efforts to retain
employees; factors prompt an employee to seek alternative employment and employees’
reasons to quit an organisation with special reference to IT companies in India. The study has
found the difference between organisation efforts toward employee retention and employee’s
perception to most prompting factors to seek an alternative employment as well as employees’
reasons to quit an organization. The study found the difference between organisation efforts
toward employee retention and employee’s perception to most prompting factors to seek an
alternative employment as well as employees’ reasons to quit an organisation. Career
advancement opportunities, training and development, supportive manager, competitive salary,
open two-way communication, flexi timing, can help to retain IT professionals in IT companies
in India.

Maikanth kanapur (2017): “Indian Construction Industry is famous for its rigid work
structure. Since the industry involves multiple tasks to be performed on daily basis, it is difficult
to manage people from distinct backgrounds. Human resource is focused less in Indian
construction industry but it is the most influential parameter to decide success of any type of
project. Hence, the main objective of the research is to analyse retention parameters of
employees working within construction industry to regulate migration probability. Totally four
major construction companies with their works at Telangana (Hyderabad) and Sikkim
(Chungthang) are referred for research purpose. From the research analysis it is noticed that
employees gave more priority to good salary package. It indicates that the salary offered by the
construction organizations is not satisfactory. Least priority was given to provision of childcare
and adult care facilities for an employee family. This indicates employee convergence towards
salary and divergence towards other benefits provided by their respective organization”.

Dr Saravanan (2017): Human resource is the most important asset in the present era, so every
company tries to retain its employees. Numerous policies and strategies are developed in the
company, to build and foster an environment that encourages the current employees to stick on
to their current positions the factors of production can be arranged easily. But the most
important task is to equip and retain talented human resources. Therefore, organizations mainly
pay attention towards employee retention, this research tends to find out the efforts made by
the employers to retain and develop a good work force. This study concludes that the employees
retain in a company where attractive salary packages and job security are offered.

Sankar.M (2015): “In present scenario retaining employees in organization is a very tough
one, at the same time employees finding new location to work when they not satisfied with
motivation and job satisfaction. In the motivation, hygiene factor plays key role. The absence
of hygiene factors doesn’t bring job dissatisfaction to the employees but it brought no-job
satisfaction. The hygiene factors are company policy and administration, technical supervision,
interpersonal relation, salary, job security, working conditions, status (job
position/Designation). The primary aim of this study was to discover the impact of hygiene
factor on employee retention and job satisfaction. This research narrowed in paper industry.
Finally, the study indicated that satisfaction driven by several key factors which ought to be
managed congruently: company policy and administration, technical supervision, interpersonal
relation, salary, job security, working conditions, status”.

Antony Joe Raja (2016): The research project entitled ‘Employee retention’ is an attempt to
understand the opinion and attitudes of the various categories of employees of the SriSairam
Hr. Sec. School, Prof Dhanapalan College for Arts and Science, Sri Krishna Engineering
College towards the employee retention in the institution. It is important to explore factors
which contribute with the retention of employees in this period of employee shortages and
increased service demands in the field of education sector. This inquiry however was delimited
to one of the branches of a fast growing private college which offer health science programs
wherein all the teaching personnel are the respondents. This study revealed weak retention
practices by the College in all of the established retention factors which include compensation
and benefits, employee engagement, performance management, retention measures, and career
development, hence; requiring an extensive review and modification of many administrative
procedures which supposedly geared towards people management.

Karnica Tanwar (2016): According to her study “The employment environment, nowadays,
is becoming increasingly competitive. In such competitive environment, employer branding is
fast emerging as a long-term human resource (HR) strategy to attract and retain talented
workforce. The purpose of this article is to determine the antecedents of employer branding
from the perspective of current employees. Most studies are dedicated to the examination of
employer branding as a talent attraction technique among potential employees. However, the
present research examines the impact of employer branding on retention of existing workforce.
The research develops a conceptual framework of antecedents and outcomes of employer
branding. Using qualitative data from a pilot study of an IT giant, it provides insights as to how
the predicted outcomes of employer branding can lead to increased retention among employees.
The research also analyses the role of employer branding in building brand advocates who
spread positive word of mouth about the organization. Results of the qualitative interviews
show positive relationship between outcomes of employer branding (job satisfaction and
psychological contract) and employee retention. In addition, a positive relationship is found
between employer branding and organizational commitment which in turn contributes towards
development of brand advocacy. Academic and managerial implications are also discussed.
The study accentuates the importance of employer branding construct and its potential to
alleviate the imminent problem of employee attrition”.

Raminder Kaur (2017): Employee Retention is a process in which the employees are
encouraged to remain with the organization for the maximum period of time or until the
completion of the project. Retention Strategies helps organizations provide effective employee
communication to improve commitment and enhance workforce support for key corporate
initiatives. These policies, when organized and disseminated in an easily used form, can serve
to pre-empt many misunderstandings between employees and employers about their rights and
obligations in the business place. It is tempting, as a new small business owner, to focus on the
concerns of the business at hand, and put off the task of writing up a human resource policy.
This study will attempt to study the various issues related to employee retention in IT
companies operating in India. This study concludes that to reduce attrition industries should
create some opportunities for the growth of their employees within the organization by
adopting new Innovative Technologies and Effective training programs.

Nafisa Shahin (2014): Employee retention is most critical issue facing corporate leaders as a
result of the shortage of skilled labour, economic growth and employee turnover. Retaining
employees involves understanding the intrinsic motivators of them which many organizations
unable to identify. The reason is "Individuals differ greatly in this regard’. Employee Retention
has gained importance in recent years, particularly as part of talent management programs, and
its relevance can be seen so much that the HR practitioner who integrates it into a talent
program may grow bewildered by the huge volume of research about it. Employee retention is
more than just keeping employees on the job. It is also about sustaining employees, primarily
by enhancing their job satisfaction. This paper has thrown light on how MNCs in (Jamshedpur)
India are making strategic moves in retaining their talent. This study attempted to fill the gaps
by analysing the impact of 3R ‘s i.e. Respect, Recognition and Rewards on satisfaction level
of the employees and by examining the various practices adopted by Indian MNCs in retaining
their employees. The study concludes that steps must be taken by the organisations to relive
the employees from the workload through job rotation, change in work location and other
recreational activities.

Munish (2017): The other objective is to analyse the critical factor which can affect the level
of retention & engagement of employees with the help of literature review. For the current
article the researchers reviewed 30 relevant research papers/ literature comprising employee
retention& engagement concepts and practices amply. The findings of the study like good
training & development, compensation structures, autonomy, quality of work life, work polices
and arrangements will lead the managers and management to a new dimension with holistic
approach in the field of employee retention & engagement. With the integration of key
employee engagement & retention along with the psychological state wellbeing may facilitate
a very useful tool for achieving and improving organizations success. The existing studies
shows the different aspects of employee engagement and retention. This study will be restoring
and pilot further future research and establish the significance HRM of practices and align them
strategically for employee engagement & retention.

Arfat Ahmad (2018): The purpose of this paper is to investigate the underlying reciprocity
mechanism which governs the relationship between employer and employee at their
workplaces in a perspective whereby intrinsic and extrinsic factors of job satisfaction are
considered as proxy to organizational offerings, while multi overall job satisfaction and
dimensional organizational commitment as employee’ attitudinal reaction to the organizational
offerings. Under the aforementioned notion, the present study intends to examine the influence
of job characteristics on employees’ attitudes, such as, job satisfaction, organizational
commitment and employee’ turnover intentions as psychological response to job
characteristics. In a way, the study attempts to insight into how employee’ reciprocate to the
perceived obligation toward its organization. The study also aims to supplement the empirical
evidence about the competing power of intrinsic and extrinsic factors of job in determining the
job satisfaction. Although various studies exhibit positive relationship between job satisfaction
and organizational commitment has been consistently reported. However, for the managerial
implication, the identification of employee physiological and psychological needs to gauge the
understanding of mechanism by which of employee’ reacts to its environment and develop
attitude toward their job and organization is imperative. In this context, this study makes a
humble attempt to clear the relationships in the perspective of reciprocation between
organization and its employees. Thus, this study attempts to illustrate how feeling a need to
reciprocate, those who experienced strong satisfaction with job characteristics appear to have
had a sense of moral duty, to the organization can be helpful in understanding the processes by
which organizational inducements exert their influence on other employee attitudes and
behaviours. Evidently, while the link between employees’ satisfaction with their job and high
organizational commitment, on the one hand, and low intentions to leave on the other is fairly
straightforward, yet there in need to study these variables as exogenous and endogenous to
inquire about their causation. Also, the available present literature on the understudy concern
genuinely lacks adequate empirical material about the competing power of intrinsic and
extrinsic factors of job in determining the job satisfaction as such some author hold that
intrinsic characteristic of job better predict job satisfaction while as another set of behavioural
scientists found extrinsic job characteristics as prime determinant of job satisfaction compare
to the intrinsic worth of their jobs. The present study was conducted in the state of depressed
economy where unemployment rate is as high as 194 percent it was found interesting to
investigate the about the competing power of intrinsic and extrinsic factors of job in
determining the job satisfaction. The present study also attempts to supplement the empirical
evidence in this direction.

Nancy Kumari (2018): The fastest growing industry is the Information Technology Industry.
The Indian IT industry is growing, although faster and has gained a lot of importance in the
global market. The Information Technology industry in India is made up of software industry
and the ITES industry. Both of them have added a lot revenue and advantage to the Indian
economy. Technology has proven to be quite beneficial for the citizens of the country. With
the development of technology in the world, it has become easy and efficient to be connected
every time with others. Works or jobs that used to take days to time to be done by the employees
of any organization are being done in just a few hours today all because of technology
development. With the growth of Indian economy and the development of the technology,
ample number of opportunities are available in the marketplace. Competition with the
organizations has increased so much that each company needs to have the competitive edge to
survive for a longer period of time. An employee is the most important asset for any
organization. So, whether it is Private or Public organization, every organization needs
employees to survive in the marketplace. No organization can survive at any cost without its
committed and loyal employees. Involving employees in taking critical and important decisions
is one way to inculcate the feeling that they are not just a worker for the organization but an
important part of the organization. Every employee of an organization is considered as an
invincible resource that not only helps the organization to attain their goals but also to prosper
in this, competitive marketplace. Having Right People at the Right Place is a mantra to be
followed by every organization. Retaining the best employees should be a matter of great
concern for the companies these days. From a manger’s perspective, nothing feels better than
having a productive and happy workforce as the manager is responsible and focused on an
organization’s success. Organizations are finding employee retention as a big challenge.
Attrition is faced by almost every industry. And with information technology attrition is
observed to be the maximum. The talented and experienced employees leave the organization
not only because of the remuneration or pay, but there are different reasons which force the
skilled employees to leave the organization.

Biju Roy (2015): Human Resource is one of the most valuable assets for any organization
and it is the source of achieving competitive advantage. Managing human resources is very
challenging as compared to managing technology or capital and for its effective management,
organization requires effective HRM system. The retention of human resources has been shown
to be momentous to the development and the accomplishment of the organization’s goals and
objectives. The main determinants for employee retention such as Career Development
Opportunities, Superior Support, Work Environment, Rewards, and Work-Life Policies and
recognition have a great paradigm to retain the employees for longer period of time. In this
paper, an attempt has been made to assess the impact of HRM practices and its effectiveness
on employee retention in public and private sectors bank. The study reveals that more than 80%
from public and 60% private sectors bank employees are satisfied with HRM and Practices
followed in the company. Only 20 and 40 percent employees of public and private sectors bank
are not satisfied and they want to join new assignment as and when they get better
opportunities. The concept of employee retention has been receiving considerable attention
from academicians, researchers and practicing HR managers.

Muppuri Nagabhaskar (2014): Retention is the process of physically keeping employee

members in an organization as it is one of the key fundamentals that are necessary for
organizational success. In a globalized environment, retention and engagement of high
prospective employees are a huge challenge to organizations especially in times of high
turnover rates. In many cases, even engaged employees are sometimes dissatisfied with the
outcomes of organizational performance which may lead them to look elsewhere. Due to these
reasons, this theoretical paper investigates motivational factors that influence employee
retention and examines their impacts on both organizations and employees. This paper argues
the motivational factors that are crucial in influencing employee retention are financial rewards,
job characteristics, career development, recognition, management and work-life balance. Thus,
organizations should formulate appropriate retention strategies in a holistic manner to reduce
turnover rates, and these require a commitment from employers, but it will be well worth the
investment in the long term. A main concern of any organization is its capacity to attract,
engage, and retain the right employee. Certain factors are crucial in influencing the employees’
decision to either leave or remain in an organization.

Dr Swaty Wadhwa (2017): Retention of productive employees is one of the major areas of
concern for the HR professionals throughout the world. Employee retention is significantly
important because of the high costs and time lapse involved in hiring new employees.
Moreover, it is in the interest of the employers to retain the valuable employees who contribute
their best to the organization. In a global work environment, there are more chances wherein
employees may leave a job for various reasons like better career prospects, lucrative salary
packages, flexible working hours, better workplace environment etc. Therefore, it is the
responsibility of employers to conduct surveys and get a regular feedback from the employees
regarding their level of satisfaction with respect to the various aspects of the workplace. Thus
this paper discusses about various factors that can have impact on employee retention. Further,
it suggests various strategies which can adopted for retaining the employees as retaining an
honest and trustworthy employee is much better than recruiting someone else from outside. In
today’s severe competition, it is very difficult for any organization to survive and retain its best
employees especially when employee poaching is on the rise. The employees who are loyal
and committed towards the organization make all the difference, so employee retention is an
urgent requirement. Human resources are the most valuable asset that can make as well as
break an organization. Retaining them and satisfying them is the most complex task, so it is
imperative to consider factors like financial benefits, compensation practices, career planning
and development, leadership and supervision, good working conditions, flexible working hours
etc.

Dr Mita Mehta (2014): Today employee commitment and retention has become an important
strategic aspect for the organisation. It is not only important to have the best and the most
talented employees but it is equally necessary to be able to retain them for long term benefits
to both the organisation and its people. The purpose of this paper is to review the findings of
research papers of various authors to derive the factors that impact employee commitment and
retention in a work environment. This study examines the following factors: career
development opportunities, effective talent management strategies, recruitment, on boarding
and orientation, investment in training and development, compensation and benefits, work life
balance, culture of the organisation, leadership, communication, image of the company,
autonomy and empowerment, Gallup audits, personal causes, role of HR head and supervisors,
work related policies and flexi time, performance appraisals and career growth and
development opportunities. There are no one fixed practices which show the importance and
significance of the influence of all these above broad points because different organisations lay
different emphasis on these pointers depending upon their suitability impacting retention.
Based on our understanding of the papers reviewed by us, suggestions are drawn which give a
holistic view on the various practices that organizations should adopt to keep the level of
employee retention and commitment high. Through this research we saw 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.

Yogita V. Patil (2018): Human resources are the livelihood of all types of an organization.
Despite the fact that a wide range of the associations are presently a day, observed to be
innovation driven, yet HR are required to run the innovation. With all round advancement in
every single region of the economy, there is firm rivalry in the market. With this advancement
and rivalry, there are parts and heaps of roads and openings accessible in the hands of the HR.
The greatest test that associations are confronting today isn't just dealing with these assets yet
additionally holding them. Securing and holding gifted workers assumes an imperative part in
any association, since representatives' learning and aptitudes are key to organizations' capacity
to be financially focused. Furthermore, persistently fulfilling the representatives is another test
that the businesses are confronting today. Keeping into account the significance and
affectability of the issue of maintenance to any association, the present investigation tries to
survey the different accessible writing and research take a shot at worker maintenance and the
elements influencing representative maintenance and occupation fulfilment among the
representatives. Given the developing requirements for associations to hold its best
representatives notwithstanding rivalry, the discoveries of the examination propose that
specific factors are essential in impacting the workers' choice to either leave or stay in an
association. Such factors incorporate preparing and Development,
acknowledgment/remunerate for good execution, a focused compensation bundle and
employer stability. In any case, the significance of different factors ought not to be Under-
assessed while figuring a maintenance strategy. It is just a far reaching mix of characteristic
and outward motivational factors that can upgrade maintenance and diminish the high rate of
worker turnover in our different organisation.
2.3 RESEARCH GAP

The need for organizations to retain their talents is crucial for their ability to remain in
business depends on it. Although this study attempted to bring forth all the factors related to
employee retention, this complex area of human resource needs further investigations. Some
factors such as organization culture, training and development, autonomy are less explored
than supervision and leadership for instance. The workforce of an organization can be classified
into three categories: directors, managers and employees. Existing researches did not lay
enough emphasis on the category of employees, the sector of the economy and the type of
businesses that are particularly affected by one factor or the other, though some studies did.
For further investigations to better equip organizations with knowledge necessary to improve
their retention capability are needed.