CHAPTER IV

REVIEW OF RELATED LITERATURE

Worldwide, a number of factors have been recognized which lead to the increase in the
employee turnover rate. Remuneration, recognition, and salary advancement are essential
factors in attraction, motivation, and retention of employees. Number of research work
has been carried out to analyze the organization strategies from different angle in
managing employee turnover and increasing employee retention. Abbasi and Hollman
(2000) wanted to determine the impact of employee turnover on organizations and found
that high employee turnover often engenders extensive consequences and, may endanger
efforts to accomplish organizational goals and objectives. They also indicated that when a
valuable employee leaves an organization, then innovation, creativity, service delivery to
the guests, service delivery to the customers, and organizational performance get
adversely affected.

There are various factors of employee retention which can be used by the organizations to
retain their employees and reduce the attrition rate. For the present study, the several
research papers have been reviewed to recognize various factors of employee retention
and to show the importance of these factors in employee retention. All the reviewed
research papers are discussed below:

Job Satisfaction and Employee Retention

Samuel Emeka Mbah and C. O. Ikemefuna, in their research paper “Job satisfaction
and employees turnover intentions in total Nigeria plc. in Lagos state” showed that
satisfaction with pay, nature of work, and supervision are the three components of job
satisfaction that affect employee intention to leave an organization. The greater the job
satisfaction the less likely is the employee turnover rate, thus confirms that employees
with a high level of job satisfaction hold positive attitude toward the job and on the other
hand, the employees who are discontented with their jobs hold a negative attitude towards
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the job. It means employees who have job satisfaction will stay in the organization.
Therefore, increase in employee job satisfaction will result in decrease in employee
turnover rate. They found that employee initiative, autonomy, individual competences,
role clarity, salary package, and some other intrinsic elements are essential to motivate
employees to remain in the organization. It can be concluded that, positive nature of
work, attractive compensation package, and proper supervision are requisite for providing
job satisfaction. All these comprise the strategies which have the tendency to enhance job
satisfaction and reduce employee turnover of the organization, and a veritable policy for
employee retention.

Sharon Ruvimbo Terera and Hlanganipai Ngirande in their research on “The impact
of rewards on job satisfaction and employee retention” found that employee rewards
result to employee retention but however, they do not provide job satisfaction to
employees. It is also very clear that job satisfaction also improves employee retention.
This study concludes that employee rewards and job satisfaction are the most important
aspects of employee retention. This means that compensation is one of the major factors
that employees consider when deciding leave or stay in an organization. Employees feel
happy when they take the decision to remain in an organization. The results also show
that rewards do not provide the job satisfaction to employees because there is
insignificant relationship between job satisfaction and rewards. This shows that employee
rewards alone do not lead to job satisfaction however job satisfaction is a key factor for
employee retention. The study shows that rewards and job satisfaction both are key
factors in employee retention. Therefore, management must make strategy for employee
retention that will address both employee compensation and job satisfaction as major
factors. This means that management ought to create a total reward system that includes
more than just compensation. Compensation and benefits package of employees should
be so attractive that it motivates the valuable employees to stay in an organization.
Whenever employees resign, reasons for resignation must be known by the management.
For this exit interview is a way of shaping employee retention strategies for the

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organization. The study shows that other than rewards, there are some other factors of job
satisfaction of employees. Therefore, organizations ought to investigate the other factors
that result to the job satisfaction among employees so that they can be integrated in the
employee retention strategy.

Bidisha Lahkar Das and Dr. Mukulesh Baruah in their research paper “Employee
retention: a review of literature” first reviewed several research papers on employees
retention and then found various factors for employee retention. They made a model
named “The Employee Retention & Job Satisfaction Model” in which they showed that
various factors like compensation, rewards and recognition, promotion and opportunity
for growth, participation in decision making, work-life balance, good work environment,
training and development, proper leadership, and job security provide job satisfaction to
the employees and if employees are satisfied then they will stay in the organization.
Further this will helps organization to reduce employee turnover. According to their
research all these factors ought to be considered to make effective retention strategies.

Billie Coomber and K. Louise Barriballin their research paper “Impact of job
satisfaction components on intent to leave and turnover for hospital-based nurses: A
review of the research literature” they reviewed various research papers and after
reviewing job satisfaction was found as a contributing factor to intent to leave and
turnover, however this is a complex area with many factors affecting its dimension. This
study also showed the relationship of leadership, educational attainment, stress, and pay
with job satisfaction. Out of these four factors leadership, stress, and pay are the
organizational factors and only educational attainment is an individual/demographic
factor. Stress was found to have strongest relationship with employee intent to leave, and
factors like low autonomy, low recognition and poor interaction with colleagues were
described as the reasons of stress. The variables of leadership or supervisory relationship
have a significant relationship with job satisfaction and intent to leave. Pay was found to
contribute little to job satisfaction. The issues regarding pay and its contribution to job

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satisfaction increases when nurses observe difference between their compensation and
that of other occupations. Inconsistencies were found in the relationship between levels
of education and job satisfaction and these inconsistencies suggests that educational
attainment is a varying factor for which conclusions cannot be drawn and requires further
investigations. The major finding of this study was leadership/supervisory relationship
and stress are the important factors that contribute to employee intent to leave. These
factors are the part of the work environment, which was found to have a strong
relationship with job satisfaction and intent to leave. Inconsistencies over time have
occurred regarding the effects of educational attainment and pay on employee intent to
leave. This suggests that there is need to recognize various sources of job satisfaction
again in the light of changes over time. The empirical data shows that stress and
leadership issues are constantly exert effects on job satisfaction and intent to leave both
directly and indirectly.

Hong Lu, Alison E. While, and K. Louise Barriball in their research paper “Job
satisfaction among nurses: a literature review”, argued that the absence of a robust causal
model including organizational, professional and personal variables is discouraging the
development of interventions to enhance nurse retention. Various sources to provide job
satisfaction to nurses are working conditions, interaction, relationships with patients,
relationships with co-workers, relationships with managers, work itself, workload,
scheduling, challenging work, routinization, task abilities and skill, remuneration, self-
growth and promotion, professional training, opportunities for advancement, job
promotion, personal achievement, rewards and recognition, authority and responsibility,
autonomy, decision-making, job security, leadership styles and organizational policies.
After reviewing several research papers they found a very strong relationship between
factors like job stress, organizational commitment, depression, cohesion of the ward
nursing team with job satisfaction; moderate relationship between factors like affectivity,
role ambiguity, professional commitment, routinization, supervisor/co-worker support,
cooperation with medical staff, job performance, job involvement, hostility employees

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organization, autonomy, recognition, fairness, locus of control, communication with
supervisor/peers with job satisfaction; slight relationship between factors like role
conflict, job involvement, age, year of experience, educational level, professionalism,
anxiety, supervisor satisfaction with job satisfaction. In summary, research has revealed
that job satisfaction of hospital nurses is strongly associated to job stress, role conflict
and ambiguity, organizational commitment, and professional commitment.

Jain Ruchi and Kaur Surinder in their research on “Effect of job satisfaction on
employee retention in banking sector- a case study of ICICI bank in Jaipur city”
concluded that mergers and acquisition is an ongoing activity in the business world. It is
clear that contemptible banks required to get merged with large banks to protect the rights
of customers. Here, transferor and transferee banks create collaboration and the merger
provides many benefits to customers, but in some instances, employees get discontented
in the transferee company. In this study, they found that mergers and acquisition is the
activity, which causes job dissatisfaction among the employees. When the Bank of
Rajasthan was about to be merged in the ICICI bank all the employees were against this
merger. They found that after merger, the job satisfaction level of employees is very low.
The study reveals the impact of merger on job satisfaction, which is responsible for
dissatisfaction among employees. The major factors such as salary, job stress, recognition
and appreciation, team culture/peer culture, working environment, and remuneration are
the reasons for employee dissatisfaction. It has been assessed that the job satisfaction
influences employee retention and attrition is the key factor which affects job satisfaction
and retention strategy has been ranked first. The next factor is retention strategy which is
followed by the HRM strategy. The factors like team culture/ peer relation and employee
welfare amenities have been ranked as third and fourth respectively. The fifth and sixth
ranked factors are training and development, and rewards and recognition respectively.
The factors that have been ranked as seventh and eighth are remuneration and work
environment respectively; employees were not feeling comfortable and not satisfied with
their current salary. The next other factors are stress, working hours and dissatisfied with

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merger and acquisition respectively. After testing hypothesis they found that variables of
job satisfaction are work environment, employee welfare amenities, training and
development, team culture/ peer relation, rewards and recognition, growth and
development, remuneration, retention strategy, and working hours; job satisfaction
influence employee retention and attrition; there is a significant difference in opinions of
employees regarding effects of job satisfaction on employee retention; but there is no
significant difference in opinions of employees in case of stress regarding effects of job
satisfaction on employee retention of Bank of Rajasthan; and there is a significant
association in the opinion of employees regarding job satisfaction and employee
retention. It has been found that cultural fit and HR policy framework are two major
factors for high level of stress and dissatisfaction among bank employees.

Tanvir Alam and Shahi Md. in their study on “Factors affecting job satisfaction,
motivation and turnover rate of medical promotion officer (MPO) in pharmaceutical
industry: a study based in Khulna city”, found the job satisfaction, motivation and
turnover factors of MPOs of different pharmaceutical companies in the Khulna City.
They showed that various factors like status, working condition, job security, salary,
technical supervision, personal life, job switching, interpersonal relations with supervisor,
co-workers and subordinates, company policy, fringe benefits influence job satisfaction,
motivation, and employee turnover rate. According to this research, the most important
factors of job satisfaction for the MPOs are company reputation of the respective MPO
i.e. the MPOs are satisfied with their respective company name and fame; safe working
condition; comfortability for visiting doctors’ clinic i.e. the employees get good
behaviour or response from the doctors; transportation support for official work i.e. the
employees get vehicles from the company for their field visits; flexible working hour i.e.
the employees have no fixed working hour; get the constructive and positive feedback
from the respective supervisor; recognition for job related achievements i.e. company
recognizes the employees achievements; health insurance benefit i.e. the employees get
health insurance for their own from the respective company. There are many factors of

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job dissatisfaction which demotivate the MPOs and then the MPOs tend to leave their
company and the employee turnover of the pharmaceutical industries gets increased. The
factors of job dissatisfaction are the MPOs do feel job insecurity many time; they are not
getting the retirement benefits i.e. the company policies do not have provision of the
provident fund or any other benefits at the time retirement from job; the MPOs profession
is not been communally honored; workload is high for the MPOs i.e. the MPOs have
excessive work pressure; the MPOs do not get the good behavior from the retail shop
keepers; the MPOs have extremely high sales targets which are unachievable and this
gives feeling of job insecurity to the MPOs; there is no room for MPOs to sit even they
have high stress of sales target and long working hour; the MPOs deal with the medicine,
but their family members do not get any health insurance from their respective company.
There are some factors which neither motivated nor demotivated MPOs and for these
factors the MPOs have given their neutral opinion such as monthly salary; incentive
policy i.e. the incentive policy in not very much rewarding; monthly bike incentive policy
is not as such very much sufficient; availing of annual leave i.e. MPOs have annual
leaves but the they are unable to avail their leave due to high workload; peers cooperation
neither motivate nor demotivate the MPOs; some pharmaceuticals companies have career
opportunities for future, but some do not have; and participation of the MPOs in the
company decision making policy. This study found that the most of the MPOs are
dissatisfied with their jobs and because of this they are not motivated and thus their
turnover tendency is high. The MPOs are dissatisfied with job security, social status, high
work load, visits to retailers shop, high sales target, no room for rest, no retirement
benefit and no family insurance assistance.

Alamdar Hussain Khan and Muhammad Aleem in their research on “Impact of job
satisfaction on employee turnover: An empirical study of Autonomous Medical
Institutions of Pakistan”, found that the variables like pay, promotion, working conditions
and nature of work are the essential for the job satisfaction of the employees and there
was a significant or positive correlation between all four variables i.e. pay, promotion,

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working conditions, and nature of work and job satisfaction. That means, when there was
increase in all these four variables, the job satisfaction level of the employees also
increases. There was a negative relationship between all four variables i.e. pay,
promotion, working conditions, and nature of work and employee turnover. That means,
when there was increase in all these four variables, the employee turnover rate decreases.
Research also found that job satisfaction had negative correlation with employee
turnover. That means the low level of job satisfaction resulted into the increased
employee turnover rate and high level of job satisfaction resulted into the decreased
employee turnover rate.

Chen, Ying-Chang, Ching Kuo, Wang, Wen Cheng, Hwa Hsia, Chu, and Ying
Chien in their research on “Structural investigation of the relationship between working
satisfaction and employee turnover” endeavoured to study the perception of current
employees’ regarding to their employment experiences. According to the research, there
were several main findings: the employees of XinHua hotel were discontented with their
monetary rewards according to the gap between their level of importance and actual
experiences; payments and benefits were found as the most critical factors of job
satisfaction; providing career advancement opportunities is essential for employee
retention; mentoring programmes can assist to decrease the employee turnover rate of
the small and medium sized hotels; and high-quality communication processes are
valuable for hotel policy.

Employees Motivation and Retention

Motivation and its sources have been long researched and many researches have been
carried out to explore the factors of motivation and its relationship with employee
retention and loyalty. Umamaheswari S and Krishnan Jayashree in their research on
“Impact of work environment and organization commitment with employee retention in
ceramic industries in India” concluded that non-monetary variables like work
environment and organization commitment have significant impact on employee
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retention. Ceramic industries need skilled and competent employees to execute their
modern and updated technology and complicated machines for their endurance, but the
availability is limited of skilled and competent employees. Therefore, it becomes
essential for Ceramic industries to provide satisfaction to the available employee in order
to retain them. They found that non-monetary variables like work environment and
organization commitment significantly influence employees retention. Apart from these
two non-monetary variables i.e. work environment and organization commitment, higher
remuneration and other factors also provide satisfaction to the employees.

Benjamin Balbuena Aguenza1 and Ahmad Puad Mat Som in their research paper
“Motivational factors of employee retention and engagement in organizations” argued
that the motivational factors like financial rewards, job characteristics, career
development, recognition, management and work-life balance are decisive in influencing
employee retention. The study found that financial reward is one of the basic types of
extrinsic monetary rewards which cover the basic needs of income to survive i.e. to pay
bills, a feeling of stability and consistency i.e. job security, and recognition. Financial
reward such as money is still the primary incentive that motivates employee to perform
better work and stay in the organization. Research has shown that the work content
design of highly skilled and competent employees influences the permanence of the
technical workforce and monotonous based performance of tasks, the probability of
demotivation and employee turnover are quite high. When employees find their job as
challenging with opportunities for learning and information exchange, then they are
become less tending to leave an organization. Employee insights on growth opportunities
offered by employers reduced employee intent to turnover. If an organization does not
identify the employee’s need and desire to grow, then development becomes a major
reason for the employee to resign from the organization. Every employee has a need to be
praised and recognized for performing a good job at work, and it has been found that
employees who are contented with their recognition have no intentions to leave an
organization, while those who are discontented with the recognition of the organizations

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have intentions to leave an organization. Management policies and practices have a direct
effect on employee turnover. The most influential factors are scheduling off-duty
employees to work, limited training time, non-competitive pay rate and poor employee
communication. The managers who respected and valued employees’ competency, paid
attention to their aspirations, assured challenging work for them, gave value to the quality
of work life, and provided them chances for learning, had loyal, committed and engaged
employees. Work-life balance has become a prime issue at the workplace especially in
the society which is filled with conflicting responsibilities and commitments. Facilitating
a work-life balance to the employees is also a one of the factors of employee retention.
The research also showed that psychological contracts are based on some definite
promises made by both the parties, generally on accepted promises that are based on the
general obligations of employers and employees. They emerge when employees consider
that their organization has promised to provide them certain enticements in return for
their contributions to the organization, and give the employees a positive feeling for the
work related outcomes. If an employer has not made any specific promises to the
employees in that regard, then every employee will appreciate the clarity, fairness and
good communication of the organization. Employees are quite pessimistic about the
extent to which their organization stays to its promises.

K. Sandhya and D. Pradeep Kumar in their research paper “Employee retention by

motivation” concluded that employee retention can be better achieved by motivating the
employees in the some aspects such as open communication, employee reward
programme, career development programme, performance based bonus, recreation
facilities, and gifts at some occasions. This paper found that employee retention can be
made by motivating the employees through open communication which enforces loyalty
among the employees. Open communication provides essential and required information
to the employees. Employee reward programme works as positive recognition technique
for work and boosts the motivation levels of employees. Employees can be recognized by
providing awards like best employee of the month or punctuality award to them. Project

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based recognition also has great significance to motivate employees. The award can be
given in terms of gifts or money. Career development programme works even better
when the employees are worried about their careers. Employees are always curious to
know their career path in the company. Organizations can organize various technical
certification courses which will assist employees in improving their skills and knowledge.
Performance based bonus guarantees that employees will get bonus for their good
performance, so that employees can relate their performances with the company profit
level and hence will get motivated to work even harder. Recreation facilities help
organization to keep its employees away from stress factors and provide them better
working life. Various recreational programmes can include arranging trips for employees,
celebrating employees birthdays and anniversaries, arranging sports activities, etc. Gifts
at some occasions like at the time of festivals can be given to the employees because
these gifts make them feel happy and know that the organization is really concerned
about them.

Rhoda Cynthia Bakuwa andFrancis Chasimpha in their research on “Staff retention in

developing countries: A case study of an NGO in the health sector”, found that non-
financial/intangible rewards contribute most to provide satisfaction to the employees and
also towards their intention to remain and continue the work in the NGO. The following
are the results of this study: the maximum employees were found to be discontented with
their total pay and benefits package and they also believed that were receiving less salary
in comparison to other NGOs; the maximum employees were found to be still contented
and articulated their intention to continue the work in NGO, that means there was no
correlation between pay package and employee satisfaction level as well as the employee
intention to continue the work in NGO; employees were satisfied and articulated their
willingness to continue the work for the case NGO mainly because they believed that this
NGO was the best NGO to work for among all the NGOS in Malawi and they felt happy
and proud to work for such a NGO, that means employees had a sense of psychological
satisfaction by being associated with this NGO and this is a form of intangible/non-

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financial rewards which mainly provide intrinsic motivation to the employees; employees
were found to be contented with the personal growth and development opportunities;
employees were also contented and willing to stay in the NGO because they believed that
top management was devoted to superior people management and also had an open and
comfortable work environment in the NGO. Job security was identified as another
important variable of job satisfaction in this study. Employees articulated that they were
satisfied with the NGO and thus they have intention to continue the work for the case
NGO because they felt that they were having safe and good careers in the case NGO. The
evaluation of the main factors that provided satisfaction to the employee and willingness
to continue the work for the case NGO showed that these factors were not required to do
anything with the financial aspects of the reward package. Actually these factors were
linked to aspects of learning, development, management and other aspects of the
organization itself. All these main factors of employee satisfaction were variables of non
-financial /intangible rewards.

Michael O. Samuel and Crispen Chipunza in their study on “Employee retention and
turnover: Using motivational variables as a panacea”, recognized intrinsic and extrinsic
motivational variables influenced the employee retention and reduced the employee
turnover rate in both public and private sector organizations. This study showed that
employees in both public and private sector organizations were motivated to continue
their jobs in their respective organizations to a very large extent by a combination of
intrinsic and extrinsic motivational factors. This study found the various motivational
variables which have extensively influenced employee retention in both the public and
private sector organizations such as training and development, job security,
challenging/interesting work, and freedom for innovative thinking. Training and
development, sense of belonging to the organization, challenging/ interesting work, job
security, and freedom for innovative thinking were found as intrinsic motivational
variables which have extensively influenced employee retention in both public and
private sector organizations. The findings of this study can however be elucidated in

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terms of the importance appended to employee training and development by the South
African government. South African government has developed one of the most
comprehensive national skills development systems with the proper legislative and policy
structures in the world. This study showed a strong evidence of the association between
job security and employee retention. This finding is not eccentric given the socio-
economic stability and psychological safety of the employees which is connected with the
employment stability. Another aspect of this research study also presented some
motivational variables that have significant influence on employee retention in one sector
without a corresponding significance in the other sector. These variables comprise goal
setting techniques, employee mentoring, promotion system based on performance, and
rewards and recognition for good performance. Goal setting techniques was found to be
more popular among private sector organizations as an employee retention strategy. This
practice enables employees to evaluate their contribution towards the accomplishment of
organizational goals. Employees who are giving excellent performance can use this
particular technique as a basis for negotiation for higher salaries or promotions whereas
employers also can use this technique to increase overall productivity of the organization.
This, perhaps elucidate why this particular variable did not influence employee retention
in the public sector organizations where salary increments and promotions are
synchronized by collective bargaining processes and rules and regulations of services. In
public sector organizations, services are driven and do not depend on profit maximization
to survive in the market that’s why productivity is not measured in terms of individual
contribution. Similarly, recognition and reward for excellent performance was found to
have significant influence on employee retention again in the private sector organizations
but not so in the public sector organizations. Employees, especially those who have self-
esteem and self-actualization drives always want to get appreciated and rewarded for
their good work, not essentially in the monetary terms, but by candidly acknowledging
their good performances, achievements and contributions towards the achievement of
organizational goals. Perhaps, this variable was not significantly influenced the employee
retention in the public sector organizations because of definite aspects of the public
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service regulations which permit employees to get rewarded financially for their good
performances and for their valuable suggestions.

Adanma Cecilia Eberendu and Rita Kenneth-Okere in their research paper “An
empirical review of motivation as a constituent to employees retention”, they focused on
non-clinical staff i.e. managers and non- managers of Federal Medical Centre (FMC) and
indicated the case study in which organization enjoys quite low level of employee
turnover rate. Motivation was found to be a critical factor that determines the level of
employee retention among managers and non-managers within the case study of
organization. This study found that employees get more motivated if employees get
performance-based compensation, recognition for hard work, personal development,
satisfaction, encouragement to pursue individually fulfilling tasks, engagement, and team
work. The team roles have the highest positive association with employee retention while
personal development has the lowest positive association with employee retention.
Employee retention is highly correlated to employee satisfaction and team roles.

Tizazu Kassa in his study on “Employee motivation and its effect on employee retention
in Ambo Mineral Water Factory” examined the effect of eight selected factors of
motivation such as rewards, recognition, promotion, interesting nature of work, job
security, salary, working environment, and training and development on employee
retention. The result of the study signified that there was a positive and significant
correlation between reward and employee retention, recognition and employee retention,
job security and employee retention, promotion and employee retention, training and
development and employee retention, salary and employee retention, and working
environment and employee retention, but negative and insignificant correlation between
interesting nature of work and employee retention. The factor which found to motivate
most to the employees was reward and this was followed by recognition, salary,
promotion, training and development, job security and working environment. However,
factors like training and development, interesting nature of work, and working

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environment were found to be less motivational factors. The seven motivational factors
like reward, recognition, training and development, promotion, salary, job security, and
working environment have positive and momentous effect on employee retention. The
present research also showed that reward is the most critical factor to positively and
extensively influence the employee retention of the organization. On the other hand,
interesting nature of work has a negative and immaterial influence on employee retention.

Employee Engagement Strategies and Retention

Employee engagement has been the long interested area of the management as well as
researchers because without increasing the monetary incentives of the employees,
employee retention can be improved in an organization. Employee engagement results to
loyalty and commitment, and emotional attachment of employees with the organization,
and which further help organization in the form of high level of employee retention or
low level of attrition rate. The employee engagement level can be increased by
recognizing its drivers i.e. influential factors of employee engagement and by effectively
working on these drivers. For the purpose of this study, the drivers of the employee
engagement were recognized and hypotheses have been formulated. The association
between employee engagement and employee retention was studied from the responses to
separate questionnaires from 185 employees who were chosen on the basis of random
sampling. T. C. Balakrishnan, Dr. D. Masthan and Dr. V. Chandra in their research
on “Employee retention through employee engagement - A Study at an Indian
International Airport” found the association between employee engagement and
employee retention. The study showed that there was a significant association between
employee engagement and employee retention and the impact of the executed action
plans on employee engagement level were also significant. The executed action plans
were only addressed the non-monetary drivers of employee engagement, but still it has
made a significant enhancement in the employee engagement level. There was a
significant correlation between employee engagement and employee retention and the

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impact of the enhancement in employee engagement level on the employee retention
level was also significant. The overall raise in the employee engagement level has
enhanced the employee retention level of the organization significantly. This study
confirmed that the employee retention can be increased by addressing the non-monetary
drivers of employee engagement like communication, recognition, work engagement,
manager/supervisor relationship and support, role clarity, and team work.

DR. R. Akila in his research on “A study on employee retention among executives at

BGR Energy Systems Ltd, Chennai” examined the influence of factors like career
opportunities, work environment, work-life balance, recognition, and superior support on
employee retention. He found that all the five factors i.e. career opportunities, work
environment, work life balance, recognition and superior support have significant
influence on employee retention. Career opportunities had been given a first rank out of
five factors which influences the employees most to stay in the organization. The other
proposed factors like work environment, work life balance, recognition and superior
support had been ranked as second, third, fourth and fifth subsequently. He also found
that there was a sound association between employee intention to stay in the organization
and the five proposed factors i.e. career opportunities, superior support, work
environment, work life balance and recognition. It is concluded that there was an
association between the factors like career opportunities, superior support, work
environment, work life balance, and recognition and the overall employee retention rate
of the organization. Following are the some more finding of this study: employees have
given highest preference to flexible or comfortable working hours; employees were
discontent with their annual salary increments as it has been given lowest ratings;
employee gender and work life balance have significant association with each other; there
was a negative correlation between the view point on job satisfaction and comfortable
working condition in resulting to the retention of employees; there was no significant
difference between years of work experience with respect to executives intention to
remain in the organization; there was no significant difference between genders and

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overall level of employee engagement; there was a significant difference between
functional departments and overall level of employee engagement.

HRM Practices and Employee Retention

Sorasak Tangthong, Jirasek Trimetsoontorn, and Nutthawut Rojniruntikul in their

study on “HRM practices and employee retention in Thailand—A literature review”
concluded that compensation and benefits management and reward system, and training
and development directly and indirectly effects the employee retention, but training and
development does not have a inclusive direct effect in influencing employee retention.
This study has shown that the two HRM practices i.e. compensation and benefits
management and reward system, and training and development have a positive
association with organization performance. Researchers expected this study to be an
empirical study, especially for Thailand’s manufacturing industry, particularly for FDI
firms, where there is a positive association between organization performance and HR
practices and this will give the useful approaches to all relevant academics. The two key
HR practices i.e. compensation and benefits management and reward system, and training
and development for the HR practitioners, will be of enduring concern for their
organizational performance.

Majid Ali in his research paper “The impact of safety and health on employee retention”
identified the association between safety and health of employee and employee retention.
The study found that there was a relationship between the health and safety and job
satisfaction, but the relationship was moderate; and there was relationship between the
health and safety and employee retention, but the relationship between them was also
moderate. This study also found that there was a relationship between the job satisfaction
and employee retention and they have a strong relationship. Therefore, they concluded
that there was an association between safety and health, job satisfaction and employee
retention.

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Eric Ng Chee Hong , Lam Zheng, Ramesh Kumar, Charles Ramendran and Vimala
Kadiresan in their study on “An effectiveness of human resource management practices
on employee retention in institute of higher learning: - A regression analysis” showed the
interrelationship between the four independent variables of human resource practices
such as compensation, appraisal system, training, and empowerment and employee
retention. This study showed that performance appraisal of employees supports their
compensation and training provided to employees helps them to achieve more
empowerment. They projected a framework that suggested how training, empowerment,
appraisal system and compensation can be associated together, so that they can become
the significant factors of the employee retention. Organization competitiveness to attract
and retain the competent and talented employees can be made possible by having a fair
and attractive compensation system. If employees get good salary for their performance
and contributions by the organization, then they may feel happy as they are appreciated
or valued for their performance. Therefore, employees are more likely to remain in the
organization as they are valued or appreciated by the organization. Training helps
employees to enhance ability to perform their jobs and to solve job related problems by
themselves. Once employees become confident and motivated to perform their jobs, they
are more tend to be committed to their jobs and organization and this reduces the
employee turnover rate. A fair performance appraisal system is important for every
organization to retain its competent and valuable employees. Performance appraisal
system assists employees to understand their job duties and responsibilities and shows
them the right path towards their growth. Factors like employee involvement in the
appraisal process, equity, fairness and justice will provide benefits to the organizational
commitment. Organizations that have empowering culture generally foster empowering
leaders, speed up the execution of empowering practices, and motivate employees to be
self-managing. Employees are usually concerned with all these variables as this study
found that there was a close association between these four independent variables and
employee retention. This research showed that among all the four independent variable
compensation was ranked as first in contributing the most and having stronger impact on
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employee retention as compared to other independent variables i.e. training, appraisal
system and empowerment. Appraisal system, training and empowerment were ranked as
second, third and fourth in contributing towards employee retention respectively.
Empowerment was found to be not so significantly associated to employee retention.
This study believed that if organization provides satisfaction to the employees regarding
all these four variables, then there is higher possibility that the employee retention rate
will definitely increase in the organization.

Tajammal Hussain and Sheikh Sana ur Rehman in their study on “Do human resource
management practices inspire employees’ retention?” showed the relationship between
human resource management practices like training and development, development of
teams, performance appraisal, internal communication system, employment security,
person-organization fit, employee empowerment, and reward and compensation and
employee retention. They carried out a multiple linear regression analysis to examine the
relationship of eight independent variables i.e. training and development, teamwork
system, performance appraisal system, improvement of internal communication,
employment security, person-organization fit, employee empowerment, reward and
compensation with dependent variable i.e. employee retention. Then they projected a
model for human resource management practices and employee retention. They found a
significant correlation between the employee retention and four human resource practices
i.e. person-organization fit, employment security, communication, and training and
development. In the linear regression model for employee retention, these four HRM
practices have positive coefficients. It showed that with the increase in level of any one of
these four HRM practices there will be increase in the level of employee retention. Other
four HRM practices i.e. empowerment, performance appraisal, reward and compensation,
and teamwork were excluded from the projected model because they were having low
and negative coefficients. This model also showed that with the one unit increase in the
execution level of person-organization fit practice will increase the level of retention of
employees by 0.571 which was found to be the highest coefficient with respect to other

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coefficients. In this model, training and development was found to have the lowest effect
i.e. 0.084 on the employee retention in textile mills. So it is concluded that four human
resource management practices like person-organization fit, employment security,
communication and training and development were strongly contributing in motivating
the employees to stay in an organization. Further, inter-relationship between human
resource management practices and employee retention was found to be strong and
positive and the implementation of human resource management practices increase the
employee retention rate of the organizations.

Malvern W. Chiboiwa, Michael O. Samuel and Crispen Chipunza in their research

on “An examination of employee retention strategy in a private organization in
Zimbabwe”, found that employee turnover is higher among non-managerial employees,
maximum employees leave the organization in short period of time, and the high
employee turnover rate is mainly because of poor reward system administration of the
organization. This research was a case study of a major private sector medical laboratory
company in Zimbabwe and under investigation the current employee retention practices
used by the medical laboratory company includes largely non-financial or non monetary
rewards like housing and educational loans, 70% medical aid contribution, subsidized
lunch, uniforms, and transport allowance to non-managerial employees. The various
benefits offered by the organization to the managerial employees are 100% medical aid
contribution, company cell phones, transport and housing allowances, subsidized lunch,
company car, fuel, education and housing loans, and holiday bonuses. The organization
has also put in place a strategic recruitment plan in employee retention strategies by
sponsoring the students in tertiary institutions with the undertaking that receivers of such
sponsorship would be bonded to remain associated with the organization for the number
of years even after finishing their studies. For all students who receive five years
sponsorship would be mandatory to work for the organization at least for five years
before these employees could search for another job elsewhere. Organization also has the
practice of promotion within the organization which encourages good succession plan

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and motivates employees to develop a life-long career in the organization as part of the
employee retention practices. The study showed that employee turnover rate is very high
among non-managerial employees. Results of the interviews conducted at the
organization showed that the high employee turnover rate among this category of
employees was because of poor remuneration, poor working conditions, and job
insecurity.

Dr. Muneer Ahmed Shah, Marvi Mallah, and Shabana, in their research on “Impact
of human resources practices on employee retention: Study of community colleges.”
showed the influence of human resources practices on employee retention. They give
emphasis on four main factors of human resource practices such as recruitment and
hiring, training and development, compensation and benefits, and evaluation and
supervision and influence of these four factors on employee retention. This research
explained the recent trends and decisively assessed the practices conducted by human
resource management in context of these main areas for employee retention. Once
employees are recruited, employed, trained and become productive, it is started to engage
employees in certain proceedings and type of conduct to motivate them to continue their
commitment to the organization. Many organizations make their strong efforts to make
new employees feel welcomed or happy and also assist employees from their first day
with enhanced retention. Training and development programmes are the most desired
employee benefits to retain the employees. Well-trained employees are more competent
and passionate for their jobs, so they require less direction and guidance by their
supervisors and this allows the management to concentrate on other matters of the
organization. If employees are content, then they resolve the quires of customers
effectively and this helps organization to have more loyalty and reliable customers. All
this happens if organization has sound management-worker relationship. This enhances
employee retention in an organization. The higher compensation helps organizations to
attract, retain and inspire competent and talented employees. Organizations can achieve
such goals by using a combination of triad of compensation plan i.e. basic salary,

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incentives, pay in cash, fringe benefits, and non-monetary rewards and benefits.
Incentives can help organizations to motivate, satisfy, feeling valued, and to retain their
employees. Companies offer the competitive benefits to the employees to fulfill their
needs or meet their expectations such as health insurance, life insurance, provident fund
and other retirement-savings plans in order to enhance the employee retention.
Supervision provides proper direction and guidance to the employees to help them to
perform their jobs and which further enhances the productivity and progress of the
employees. Managers conduct employee performance appraisals and surveys to let the
employees know about their job requirements, weigh up how potential employee fits the
job, and recognize the needs of modifications that will continue employees to be engaged
and retained in related work, and this will help organizations to prevent or resolve their
most difficult and expensive problems. Researchers proposed a model that showed four
independent variables i.e. recruitment and hiring, training and development,
compensation and benefits, and evaluation and supervision and dependent variable i.e.
employee retention has a significant relationship and employee retention rests on these
independent variables.

Muhammad Irshad and Fahad Afridi in their research paper “Factors affecting
employees retention: Evidence from literature” found the HR practices as the most
essential and valuable means that influences retention of employee in an organization.
The various variables which influence employee retention are categorized into two
factors i.e. organizational factors and human resource factors. Organizational factors
include organization image, supervisor support, organizational justice, and work
environment and human resource factors include employee value match, job security,
training and development, remuneration and reward, and employee promotion aspect.
This study found that organization fit i.e. employee value match and organization culture
play important role in retention of employees. Family support and flexible time culture
are significant factors in employee retention. Compensation, reward and recognition are
considered as important factors in motivation of employees, which results in improved

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employee retention in the organization. Similarly, training and career development are
found to be motivating factors which results to employee retention and career
development is also associated with employee retention and is found to be important in
influencing employee retention in an organization. Promotion opportunities or employee
career advancement aspects have a significant correlation with employee retention and
also considered as important factor in employee retention. The work environment is
found as a key factor in employee retention and it is also found that employee may leave
the job because of poor work environment. Organizational justice i.e. distributive justice
and procedural justice also plays essential role in employee retention. This study also
showed that if organizations want to retain their employees, then they ought to follow
fairness formula in the organization.

Collins Marfo Agyeman and Prof. V.M. Ponniah in their study on “Employee
demographic characteristics and their effects on turnover and retention in MSMEs”, they
selected six human resource management practices as the main factors that influence
employee retention and turnover such as employee communication, supervisor support,
compensation, recognition and rewards, work environment, and career development
opportunities. All these six practices are important in dealing with employee retention in
MSMEs. In this study, recognition and rewards are found to be the most important factors
which results to employee retention, and followed by work environment, career
development opportunities, compensation, employee communication and supervisor
support. The results of this study showed that availability and implementation of such HR
practices will definitely retain employees in the organizations. Researchers also studied
the association between various demographic factors such as age, gender, tenure,
education, and income levels and employee retention. They found that all demographic
factors i.e. age of the employees, gender of the employees, year of services of the
employees, qualification of the employees and income levels of the employees have
strong and positive association with employee retention. They also studied the major
challenges and problems faced by MSMEs because of high employee turnover. The

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major challenges faced by MSMEs were high cost of recruitment and training, low
morale of organizational employees, lower production, higher production cost,
cooperation and coordination problem between existing and new employees, and reduced
profitability. High cost of recruitment and training was found to be the most challenging
issue faced by MSMEs, and followed by low morale of organizational employees, higher
production cost, lower production, reduced profitability, and cooperation and
coordination problem between existing and new employees.

Dr. Vimala Sanjeev kumar in his research “A study on employee’s intention to stay in
public companies, Kedah, Malaysia”, found the relationship between employee retention
factors and employees’ intention to remain in the public companies. He showed the
association between five selected HRM practices such as career opportunities,
compensation, work life balance, organizational commitment, and supervisor support and
employees’ intention to remain in the public companies, Kedah, Malaysia. The results of
this study showed that there was a significant association between all these five variables
i.e. compensation, work-life balance, organizational commitment, career opportunities,
and supervisor support and employee retention. Among all these five variables
compensation was found to be the most significant variable in retention of employees and
which is followed by career opportunities, supervisor support, work-life balance, and
organizational commitment. An association between organizational commitment and
employee retention was found to be less in public companies. The compensation was
found to have a most significant and positive correlation with employee retention and
which influences employees’ intention to remain in the public company most. As the
public organizations offer competitive compensation packages and the many bonuses to
their employees, compensation holds a critical role in the employees satisfaction. Work-
life balance is found to be positively correlated with employees intention to remain in the
public company. In government sector, jobs are more stable, less competition in the
company, and employees are free from work-life conflicts as they are having reasonable
work assignments and pleasant working schedule which helps them to balance their

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professional and personal life. Organizational commitment is also found to have a
positive correlation with employees retention intention. Study showed that public
company employees are more likely to remain in the company as they have developed the
loyalty and commitment to the organization. The longer the year of services higher will
be the organizational commitment. Career opportunities are positively linked to the
employees intention to remain in public company. The company provides more career
opportunities to the internal employees than the outsiders. Most of the employees said
that they have good career opportunities in the public company and the organization
gives value to the employee career development, which provides them the clear career
path. Supervisor support has a positive association with employees intention to stay in the
public company. In public companies, employees give value to the suggestions or
recommendations given by their supervisor, especially by their immediate supervisors. If
employees are getting positive and regular feedback then they get more motivated to
perform their jobs. This research also showed the differences between age, length of
services, educational backgrounds and positions in terms of employees retention
intention. The findings of this study are as follows: there was difference in terms of
retention intention in the company between male and female employees. Male employees
are more tend to stay in public companies as compared to the female employees; there
was a significant difference in terms of retention intention between the employees
educational backgrounds. Employees who work in the public companies more than 7
years or work between 3 – 5 years were having high retention intention, while the fresher
or employees who work less than 1 year were having less retention intention; there was a
significant difference in terms of retention intention between employees belongs to
different age groups. Employees who belong to age group 45 – 55 were having high
retention intention, while the juniors or employees who belong to lower age groups were
having less retention intention.

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Employees Training and Retention

Ying Cheng and Franz Walden berger, in their research paper on "Does training affect
individuals' turnover intention? Evidence from China", explored that Chinese employees
show unstable expectations regarding to the content, the organization, and training
outcomes. The association between fulfilling such expectations of employees and
employee turnover intentions is intervened by job satisfaction, continuance commitment,
affective commitment, and perceived movement capital. Meeting employees expectations
regarding to specific skills and operational factors help to lessen employee turnover
intentions. Meeting employee’s expectations regarding to general skills tend to increase
employee turnover intentions. Meeting employee’s expectations regarding to
intra‐organizational outcomes has a double‐edged effects. This study examined how
Chinese employees job satisfaction level, affective commitment, continuance
commitment, and perceived movement capital changed as a outcome of dissimilarities in
training expectations fulfilment and how changes in job satisfaction, continuance
commitment, affective commitment, and movement capital in turn influenced the
employee turnover intentions. Researchers differentiated the various expectations of the
employees regarding to five different dimensions of training. According to them, this is a
first study explicitly explaining comprehensive expectations of the employees regarding
training. The results showed that employees were having expectations not only regarding
to training contents, but also with regards to the way training was designed, organized,
executed, and the outcome of the training programme. Employees also considered the
significance of the various dimensions of training differently. They studied a mediated
model to evaluate the effect of fulfilment of training expectations of employees on
employee turnover intention, which is based on the concept of training expectations
fulfilment. Specific skill training was found to have a significant impact on how
employees felt about their jobs and employers, but no evidence was found that shows
specific skill training indirectly reduced employee turnover intention. There was a
positive effect of fulfilment of expectations regarding general skills‐related training on

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perceived movement capital. This supports the argument that such type of training can
promote employee turnover because it strengthens employees confidence and improves
their value in the market. Again no evidence was found that shows general skill training
was linked with job satisfaction or affective commitment. Result of paths analysis
indicated that operational factors are important. Fulfillment of corresponding training
expectations was strongly and positively associated to job satisfaction and affective
commitment, thus indirectly reducing employee turnover intention. This added a new
result to the literature. It is possible that the findings are related with the Chinese context,
supportive work as well as colleagues and learning environment is important to the
Chinese employees. Chinese employees are more likely to remain in an organization
which has more intimate environment and also tend to avoid the uncertainties in a new
organization. Research did not find any evidence that indicates getting any academic
degree or having professional contacts improves trainees' confidence in their movement
capabilities. A probable reason may be that the assumed effects may depend on what was
really obtained, but not on how training is assessed or the assumed effect may depend on
what was actually obtained through training, but not on the perception or the
inconsistency, independent of whether this was expected and how much it was important.
The results showed that fulfillment of training expectations related to intra‐organizational
outcomes were positively associated to both affective commitment and movement
capital. This implies that performance enhancement, and increase in wages or promotions
are two‐edged swords. It is observed that western literatures have only recognized that
these HRM functions are useful in retention of the trainees, but few of them believed that
there is possibility that the same HRM practices may also facilitate job mobility. So
findings of this study show that organizations have to take into account the employees
expectations regarding to training and such employees expectations are related to training
content, how training is designed, organized, executed and the outcomes of the training
programme.

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Waleed Hassan, Amir Razi, Rida Qamar, Rida Jaffir and Sidra Suhail in their
research on “The effect of training on employee retention” studied the dependence of
retention of employees on job training. The major focus of this study was on the key
variables such as training, types of training, and duration of training, and intervening
variables like rewards and supervisory support to the employees regarding training. This
was a gender wise study which further distributed and compared the key variables and
intervening variables. The findings of research showed that job training is one of the most
significant factors in employee retention in the organizations. Both female and male
employees have showed their interest to participate in training and they preferred “on job
training”. Both male and female employees believed that duration of training programme
describes its effectiveness. Female employees gave highly positive feedback to the
rewards especially to financial rewards. Supervisory support to the employees also plays
a critical role in employee retention. According to both female and male employee,
supervisory support and financial rewards are more important for them.

Atif Anis, Ijaz-Ur-Rehman, Abdul Nasir and Nadeem Safwan in their study on
“Employee retention relationship to training and development: A compensation
perspective” found that there was a positive correlation between training and
development, compensation, work environment and employee retention. Variables like
training and development, compensation, work environment were positively associated to
each other, and it means that when training is provided to the employees, then it enhances
employee performance, which further increases employee salary, so training has positive
effect on employee compensation packages. This leads to employee satisfaction with
their current job or organization and this will help in retaining employees in an
organization for a longer span of time. On the other hand, it will also save the cost and
wastage of time of the organization which is required to recruit and training new
employees. Findings of this study showed that organizations cannot retain their
employees for a longer period of time, if they do not increase employees compensation

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after their training and development because employees have increased their abilities and
perfection in field and now they want more compensation.

Organizational Culture and Employee Retention

Eric Delle and Anthony Sumnaya Kumasey in their research on “To Stay or Not to
Stay: Can organizational Culture Provide the Staying Power? Evidence from the
Ghanaian Banking Sector” established the relationship between organization culture and
employee retention and also envisaged the relationship and amount of variance in the
four aspects of organizational culture accounted for employee retention i.e. innovative,
bureaucratic, competitive, and community. The study showed that organizational culture
was one of the organizational factors which found to be responsible for employee
retention and organizational culture had significant influence on employee retention in
the organizations. Research found that favorable organizational culture was linked with
employee high intention to remain in an organization while unfavorable organizational
culture was linked with employee low intention to remain in an organization.
Organizational culture served as the essential factor which bridges the gaps between the
employee and the organization and it makes employees to develop strong and emotional
bond and connection with the organization, so that they have a feeling that their
organization is like their second home. When organizational culture makes employees to
look the organization as their second home, then employees are more tend to remain in
the organization and be the part of their organization for longer period of time. Aspects of
organizational culture like community culture, innovative culture, and bureaucratic
culture were significantly and positively forecasted the employee retention. This implies
that, organizational cultures that encourage, support, and facilitate employee
participation, risk-taking, team spirit, creativity (innovative culture), policies that
facilitate decision making, sense of oneness (i.e. community culture), allow autonomy,
speedy discharge of duties, and flexible procedures motivate the employees to stay in an
organization. However, competitive culture was not significantly predicted the employee

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retention. Significant differences were observed in different aspects of organizational
culture in terms of their contributions to the employee retention. Innovative culture
accounted for more variance in employee retention than other aspects i.e. community,
bureaucratic and competitive. The findings obtained in the Ghanaian Banking sector
showed that organizational culture especially one that involves strong innovative,
community, and bureaucratic cultures were able to encourage employees to remain with
their current organization than one with competitive culture.

Chandranshu Sinha, and Ruchi Sinha in their study on “Factors affecting employee
retention: a comparative analysis of two organizations from heavy engineering industry”
done factor analysis of the components of ‘retention management strategies’ resulted to
the extraction of three factors each from both the organizations. The factors found for
EEPL were competence and relationship oriented, scholastic and futuristic oriented, and
developmental and reward oriented; while factors found for MBPL were relationship
oriented, competence and scholastic oriented, and reward oriented. The results indicated
that these factors have played significant roles in motivating employees to remain in an
organization and how different aspects at middle management level are valued while
taking decision upon the employee retention strategies in similar contexts (i.e. sector).
For this study, twelve variables were selected such as job recognition, flexibility, cost-
effectiveness, benefits, compensation, organizational commitment, employee motivation,
career development, communication, learning work climate, superior-subordinate
relationship, and training. Study showed that these factors have major importance in
shaping the retention management strategies of the two respective organizations and were
measured as the key components for employee retention in similar contexts, while if they
appeal to employees at all performance levels then blanket retention policies can be
unfavorable, and organizations would require to implement specific strategies to the
retain their most valuable employees, while avoiding control techniques that would
appeal mainly to others in similar or different organizations.

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Bidyut Bijoya Neog and Dr. Mukulesh Barua in their research on “ Factors affecting
employee’s retention in automobile service workshops of Assam: An empirical study”
found sixteen factors which influenced the employees retention working in the
automobile service workshops of Assam and following are the recognized factors:
autonomy, job security, job satisfaction, work life balance, working environment,
compensation, training and development opportunity, performance appraisal, career
opportunities and promotion, on the job interview, reward and recognition, leadership,
distributive justice supervisor support, leave policy, and role clarity. This research found
that there was a positive and significant correlation between these various identified
factors like compensation, work life balance, working environment, autonomy,
performance appraisal, supervisor support, job security, job satisfaction and role clarity,
training and development opportunity, on the job interview, and leave policy and
employee retention.

Dr. Safdar Rehman in his research on “Employee turnover and retention strategies: An
empirical study on public sector organization of Pakistan”, showed that employee
turnover rate in the public sector organizations is high, particularly in the regulatory
authorities. Therefore, these organizations have limited employees and compete with
insufficient number of qualified employees in the market. Maximum public sector
organizations do not have specialized departments, managers, and employees in the
human resources management. Research showed the relationship between employee
turnover and various demographic characteristics like age, education, gender, attitude,
position, length of services, and sectors of activity. The following are the results of this
study: there is a significant difference on the overall employee turnover rate on the basis
different age groups of the employees, that means employees belongs to different age
groups have different inclination and reasons to switch their jobs; there is no significant
difference on the overall employee turnover rate on the basis of employee educational
levels, that means employees having different educational qualifications do not influence
the overall employee turnover rate; there is no significant difference on the employee

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attitudes towards the specified factors on the basis of the types of public sectors
employees belong such as telecom, power, electronic media, banking, and stock market,
that means there is no significant differences on overall employee turnover rate on the
basis of the types of activities in various public sectors; there is no significant difference
on the basis of gender of employees on the overall employee turnover rate, that means
overall employee turnover rate does not get influenced on the basis of gender of
employees; there is no significant difference on the basis of the position of the employees
in the organization on the overall employee turnover rate, that means overall employee
turnover rate does not get influenced on the basis of positions of the employees in the
organization; and there is significant differences on the basis of the periods of association
of employees with the organization on the overall employee turnover rate, that means
overall employee turnover rate gets influenced on the basis of experiences of the
employees.

Nausheen Shakeel and Sahar but in their study on “Factors influencing employee
retention: an integrated perspective”, identified twenty factors of employee retention such
as job satisfaction, training, pay, job embededdness, flexible work arrangements, career
development, organizational values and beliefs, organizational support, relationship with
immediate boss, job content, work life balance, status, organizational commitment, job
involvement, location, working conditions, social environment, respect and recognition,
promotion, organizational justice and prestige. Researchers found that there was a
positive correlation between all financial and non- financial factors and employee
retention. Career development was found to have most significant and positive
correlation with employee retention among all variables of extrinsic factors; job
satisfaction was found to have most significant and positive correlation with employee
retention among all variables of intrinsic factors; relationship with immediate boss was
found to have most significant and positive correlation with employee retention among
all variables of non-work related factors; and pay was found to have most significant and
positive correlation with employee retention among pay and promotion variables of

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financial or monetary factors. Finally in this study, work-life balance was found to have a
secondary significance to the non-financial factors and all the variables have significant
correlation with employee retention.

Muhammad Imran Qureshi, Mehwish Iftikhar, Syed Gohar Abbas, Umar Hassan,
Khalid Khan and Khalid Zaman in their research on “Relationship between job stress,
workload, environment and employees turnover intentions: What we know, what should
we know”, found the relationship between job stressor, workload, and work place
environment and employee turnover intentions. The results of this study showed that
there was a positive association between job stressors and employee turnover intentions
that means employee turnover intentions increases with the increase in job stress.
Another major factor workload was also found to have positive association with the
employee turnover intentions that means employees intention increases to leave the job
when their workload increases. Similarly workplace environment was found to be a key
factor in employee retention. This study proved that there was a negative association
between work environment and employee turnover intentions that mean a good and
healthy work environment in an organization will result to the less employee turnover
intentions.

Pavitra Yadav and Shabnam Saxena in their study on “Interrelationship among

employee retention strategies adopted by corporate sector: An empirical study”,
examined the interrelationship among the various employee retention strategies adopted
by the corporate sector and found the most important employee retention strategies
adopted by the selected organization. For this study, researchers selected the following
employee retention strategies: orientation strategy, management strategy, employee ideas
and suggestion strategy, employee and benefit strategy, communication effectiveness
strategy, training and development strategy, and reward and recognition strategy. The
main focus for employee retention strategies of organizations was given to training and
development strategy which was followed by orientation strategy, employee ideas and

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suggestion strategy, communication effectiveness strategy, management strategy,
employee and benefit strategy. Reward and recognition strategy was found to be least
adopted strategy by the organizations on the basis of employee and manager perceptions.
The results showed that there was a significant correlation between management strategy
and all other strategies, but except training and development strategy. The results also
showed that management strategy was highly correlated with reward and recognition
strategy. Secondly, orientation strategy was found to have correlation with all other
strategies, but except with communication strategy and training and development strategy
and orientation strategy was positively and highly correlated with management strategy.
Thirdly, there was a correlation between communication effectiveness strategy and all
other strategies, but except training and development strategy and employee benefit
strategy and communication effectiveness were highly and positively correlated to each
other. Fourthly, there was not a significant correlation between training and development
and all other strategies. Fifthly, reward and recognition strategy was found to have
significant correlation with all other strategies, but except training and development and
have high correlation with management strategy. Sixthly, there was a significant
correlation between employee and benefit strategy and all other strategies, but except
training and development strategy and employee benefit strategy was found to have high
correlation with management strategy. Lastly, employee idea and suggestion strategy was
also found to have a significant correlation with all other strategies, but except with
training and development and there was a high correlation between employee idea and
suggestion strategy and orientation strategy and communication effectiveness strategy.
The overall results of this study showed that there was an interrelationship among the all
employee retention strategies selected for this study except training and development
strategy which was found to have significant correlation with overall employee retention
strategy.

Minu Zachariah and Dr. Roopa T.N in their research on “A study on employee
retention factors influencing it professionals of Indian IT companies and multinational

111
companies in India” focused to know whether there is any difference in employee
retention factors influencing employees of IT Indian companies and multinational
companies in India. For this, researchers measured both organizational factors as well as
individual factors which influencing employees to leave an organization. The various
organizational factors such as company policies, salary, benefits, recognition, work
environment, communication, relationship with supervisor, peers and subordinates,
nature of work, clarity in work, career growth, company culture, transparency, exposure
in advanced technologies, onsite opportunities, working hours, work from home,
extended working hours, work life balance, job security, image of the organization,
stability, promotion, no work (on bench), politics, work pressure, incompatibility in
salary based on eligibility, empowerment, job satisfaction, canteen facilities, medical
facilities, recreational facilities, township facilities, transport facilities, insufficient
leaves, poaching, more than one reporting managers, and frequent travel were considered
to recognize those factors for which the IT employees leave their organizations and to
what extent. Similarly, the various individual factors such as proximity to place of stay,
interest in new learning, health reasons, decision to take time off from work to recoup,
self-employment, family pressure, decision not to work after marriage, to pursue hobby,
no proper connectivity to place of work, to give more attention to the family, to take care
of children and old parents, and to move to another industry of interest were considered
to recognize those factors for which IT employees decide to leave their organizations.
The result of this study showed that both organizational factors as well as individual
factors influence employees’ decision to leave the organizations and also showed that
there is no significant difference between the IT employees of Indian companies and
multinational companies in India. Further, researchers have also taken into consideration
both organizational factors as well as individual factors which motivate employees to
remain in an organization. The researchers considered the following organizational
factors: policies of the company, transparency, keeping up promises made at the time of
hiring, support from the project team, orientation of new employees, technology,
flexibility and freedom in work, job expectation vs. reality, role assigned, working
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conditions, support from the reporting manager, sufficient training opportunities to
improve competencies on job performance, performance evaluation system, job
satisfaction, salary, benefits, opportunities for personal growth, opportunity to express
feedback and concerns, job security, timely recognition of performance, flexibility to
manage work life balance, image of the organization, stability, empowerment, no
work(on bench), crèche facility, canteen facilities, medical facilities, recreational
facilities, family involvement, transportation facilities, option to work from home,
comfort level in the organization, and onsite opportunity. Similarly following are the
individual factors in the organizations that motivated the employees to remain in an
organization: overall performance, initiative, quality of work, quantity of work, meeting
deadlines, reliability, adaptability, decision making skills, effective communication,
leadership skills, team spirit, creativity, competency enhancement, commitment, value
addition, exposure, and high learning curve. The overall analysis of this facilitated the
comparison of difference in responses between Indian IT companies and MNC in India
and showed the following results: there was no significant difference in the responses
given by the employees of Indian IT companies and MNC’s in India regarding to
individual factors which motivate employees to remain in an organization; regarding to
employees attitude towards work relationship, the combined mean value of IT employees
specified that the general attitude towards the superior was very low, which is followed
by career development, communication and performance and recognition in the
ascending order; and when the employees of Indian IT companies and MNC’s in India
were considered separately, then the mean value of Indian IT companies towards work
relationships in case of general attitude was found to be low towards superior, which is
followed by career development, communication and performance and recognition in the
ascending order and the mean value of MNC employees regarding the same in case of
general attitude was found to be low towards the superior, which is followed by
communication, career development and performance and recognition in the ascending
order. However, there was no significant difference regarding employee general attitude
towards superior, career development, performance, recognition, and communication
113
relating to the parameters considered for Indian IT companies and MNCs in India
separately. There was no significant difference in responses regarding stability between
Indian IT companies and MNCs in India. Accordingly, the overall ranking given by the
IT employees in accordance of their preferences are as follows in ascending order - good
work environment, job security, growth prospect, attractive compensation, new learning,
exposure to latest technology, open to address to concerns of employees. In case of
employees of Indian IT companies, the given rankings are as follows: job security, good
work environment, attractive compensation, growth prospects, new learning, exposure to
latest technology, and open to address to concerns of employees. Whereas in case of
employees of IT MNCs in India, the given rankings are as follows: good work
environment, job security, growth prospects, attractive compensation, exposure to latest
technology, and open to address to the concerns of employees. When each parameter
considered separately, the mean response regarding to good work environment was found
to be high in case of employees of Indian IT companies as compared to employees of
MNCs in India. In case of exposure to latest technology, the mean response of employees
of Indian IT companies was found to be high as compared to employees of MNCs in
India; in case of job security, the mean response of employees of MNCs in India was
found to be high as compared to employees of Indian IT companies; in case of attractive
compensation, the mean response of employees of MNCs in India was found to be high
as compared to the employees of Indian IT companies; in case of new learning, the mean
response of employees of MNCs in India was found to be high as compared to the
employees of Indian IT companies; in case of growth prospectus, the mean response of
employees of Indian IT companies was found to be more as compared to employees of
MNCs in India; in case of open to address to concern of employees, the mean response of
employees of Indian IT companies was found to be high as compared to employees of
MNCs in India. However there was no significant difference in responses between
employees of Indian IT companies and employees of IT MNCs in India with respect to
various aspects considered above such as good work environment, exposure to latest
technology, job security, attractive compensation, new learning, growth prospects, open
114
to address to concern of employees. This study also found that there was no significant
differences in responses between IT employees of Indian companies and Multinational
Companies in India regarding most of the demographic characteristics like age, gender,
educational qualification, certifications, income from various sources, working hours,
financial commitments, family status, conveyance facility, distance from the place of
work, and total experience in the organization and the number of jobs changed. However,
significant difference was found in responses between the IT employees of Indian
companies and Multinational Companies in India regarding to experience in the current
organization, current position in the organization and training programmes undergone.

Compensation and Employee Retention

Omotayo Adewale Osibanjo, Adenike Anthonia Adeniji, Hezekiah Olubusayo

Falola and Princess Thelma Heirsmac in their study on “Compensation packages: a
strategic tool for employee’s performance and retention”, found that there was a strong
correlation between compensation packages and employees’ performance and employee
retention. The finding of this study showed that there was a significant relationship
among all the variables of compensation such as wage and salary, bonus, various
allowances, incentives, and fringe benefits that means there was a positive and significant
relationship between these variables of compensation which constantly predict the
employee performance. This research also showed that there was an association between
compensation packages, level of employee satisfaction, and employee retention.
Researchers on the basis of this study made a conclusion that all organizations that have a
superior compensation system usually have a positive impact on their employees and
consequently their employees become more loyal and committed to the organization and
they are more likely to remain in their present organization. There is a strong and positive
correlation between all the variables of compensation package, which positively and
significantly affects the employee performance and which is also a good predictor of the
employee retention in an organization.

115
David Mwakidimi Msengeti and Dr. Joseph Obwogi in their research paper on
“Effects of pay and work environment on employee retention: A study of hotel industry
in Mombasa county” concluded that the non-financial element of work environment has a
strong influence on employee retention as compared to pay as a financial or monetary
component of reward in hotels in tourism area of Mombasa county. It is also observed
that there is significant pay inconsistencies between the hotels in the industry which is
one of the reasons for which employees constantly seek for better opportunities and thus
hotels are experiencing the low employee retention scenarios. This study also shows the
strong evidence that non-financial or non-monetary rewards tend to influence more to the
employees to stay in an organization than the traditional financial or monetary rewards
points to the need for the employers in this industry to execute holistic approaches in
reward management system, so employers should develop total reward packages which
will be offered to their employees must not be focused only on financial component of
rewards.

Santript Shukla and Dr. Ambalika Sinha in their research on “Employee turnover in
banking sector: Empirical evidence”, found that the major factors responsible for
employee turnover are job satisfaction and work environment. The high level of
significance for both the variables shows that, whether there is salary compensation or
not, but employees have an enormous desire to look for a new organization for better
work environment and job satisfaction. Relative to these two variables the career
development is found to have a lesser but a considerable significance. The employees
who preferred career growth as their main factor for turnover have put a burden on the
availability of growth opportunities and management relations as sub-prime forces. But
they search for a new job for the better compensation. Therefore, the organizations can
retain their employees for a longer span of time by providing them satisfaction regarding
to the supervision and delegating them more autonomy so that they may stop looking for
new jobs. In the present study, the possible way to retain career oriented employees can
be delegation of more autonomy to the employees and providing support or ease from the

116
management side. Exceptionally unkind attitude of the management towards the
employees and extreme workload force career oriented employees to search for the
alternative opportunities. Generally employees look for the alternative opportunities
because they have desire to grow in their career. This research also found that there is no
real mean difference exists between the old employees and new employees’ responses
with respect to turnover factors.

Ambreen Kanwal and Muhammad Majid in their study on “Retention management in

banking system an evidence from Multan, Punjab Pakistan” selected some factors like
pay, work hour, satisfaction of employees with the job, training as a career exposure
management team work, bonus and rewards, and effective communication to know
whether these factors contribute towards the employee retention in an organization or not.
The results of this study showed that low pay was a main factor that provided the
dissatisfaction to the employees and long working hours was another main factor that
provided dissatisfaction to the employees. Effective communication of the employees
with the employer, bonuses and rewards schemes, and presence of the management team
were some factors that found to be essential in order to maintain and retain the employees
in the banks. Some employees were found to be contented regarding to the support and
facilities provided by the bank. Study also found that trust of the employees on the
organization increased the loyalty and commitment of the employees which further
enhanced the employee satisfaction which resulted to improved employee retention in the
organizations.

Dr.Priyanka Verma and Ms. Poonam Likhitkar in their study on “An analysis of retail
sector with reference to employee retention management”, they reviewed several research
papers and found that money is not only the single factor for which employees remain in
an organization or leave an organization. The several future opportunities associated with
more pay, work overload, additional work responsibilities, superior work environment,
different incentives plans, and job ambiguity are the factors which activate the chain of

117
psychological states of the employees that result to their intentions to leave an
organization. Monitoring workloads and supervisor-subordinate relationships by
management not only reduce stress but also provide job satisfaction to the employees and
increase employee commitment to the organization. Career path and development plan
play a key role for the employees and a most important factor that is preferred by the
employees to work in the organization. It motivates employees to stay in the organization
and also increases employee loyalty to the organization. The main reasons for which
employees may leave the job are policies of the organization, culture, recognition,
environment, and the relationship with company and co-workers. There is an association
between organization policy / climate and employee retention. The organized retailers
provide better working conditions or quality of work life to their employees, therefore
there is no association between employee retention and working conditions or quality of
work life.

Daisy Ofosuhene Kwenin, Stephen Muathe, and Robert Nzulwa in their study “The
influence of employee rewards, human resource policies and job satisfaction on the
retention of employees in Vodafone Ghana Limited” analyzed the influence of employee
rewards, job satisfaction, and human resource policies on employee retention in
Vodafone Ghana Limited. The study found that there is a significant association between
employee rewards, job satisfaction, and human resource policies and employee retention
in Vodafone Ghana Limited. These associations show a direct relationship between all
these variables. This means with an enhancement in the reward systems, improvement in
the various job aspects to make the job more satisfying and execution of supportive and
strategic human resource policies, an organization can improve the employee retention
significantly.

Atul Mathur and Dr. P. K. Agarwal in their research on “A study on impact of

employee retention in private sector sugar mill” focused on dysfunctional turnover. There
are two types of employee turnover i.e. functional and dysfunctional. Turnover is said to

118
be dysfunctional turnover when productive or valuable employees leave the organization,
and turnover is said to be functional turnover when the unproductive employees or poor
performers leave the organization. HR managers are always concerned about
dysfunctional turnover. Whenever an employee leaves, it takes around eight weeks to
replace him or to fill that position again and the period in-between productivity of the
organization suffers. The main reasons for which employees leave the organization were
money and their working environment. It means the employees were not contented with
respect to their salary and other monetary or financial benefits which are provided by the
organization to them. This study was carried out to understand the impact of employee
retention strategies on employee turnover rate in sugar industry in India. Researchers
have found that employee retention strategies have an impact on employee turnover rate.
Other variables like welfare benefits, personal satisfaction, and organization culture were
found to have relationship with the employee turnover.

Career Growth Opportunities and Employees Retention

Ngirande Hlanganipai and Musara Mazanai in their study on " Career management
practices: impact of work design on employee retention”, found the favourable impacts of
various variables of work design such as use of own imagination, job design, variety of
tasks in job, realistic standards of performance, job enrichment, control of work schedule,
freedom of judgment, developmental group assignments, job descriptions, and
challenging work on employee retention. The following are the findings of this study:
employees were permitted to apply their own imagination to perform their jobs;
employees were found to be contented with respect to the variety of tasks in their work;
employees were contented with the performance standards set by the organizations; some
employee were found to be satisfied and some employees were found to be dissatisfied
with respect to job enrichment practices of the organization and a small margin was
found between them; employees were contented with respect to their work structures;
majority of employees were found to be contented with respect to the control they had

119
over their work activities; employees had adequate autonomy to do their jobs in the
organizations; employees believed that their jobs were clearly described in the
organization; some employees were found to be contented with respect to the group
assignments, but few employees were found to be confused may be because of lack of
explanation about the intention behind the group assignments to employees or because of
poor selection of employees for assignments by the managers or supervisors; and
majority of employees were found to be satisfied with the challenges they get from their
work. This study also found that there was positive and significant correlation between
some of the variables of work design i.e. use of own imagination, variety of tasks in job,
realistic standards of performance, job enrichment, and freedom of judgment and
employee retentions.

Daisy Ofosuhene Kwenin in his research paper “Relationship between work

environment, career development opportunities and employee retention in Vodafone
Ghana Limited” examined the correlation between work environment, career
development opportunities and employee retention in Vodafone Ghana Limited. This
study found that work environment and career development opportunities significantly
influence the employees’ intention to remain in Vodafone Ghana Limited. Work
environment was found to have a significant correlation with employee retention and
career development opportunities were found to be significantly linked to the employee
retention in Vodafone Ghana Limited. Moreover, career development opportunities were
recognized as a strong indicator for employee retention.

Dr. Mita Mehta, Aarti Kurbetti and Ravneeta Dhankhar in their research paper
“Review paper – Study on employee retention and commitment”, examined the following
factors: recruitment, on boarding and orientation, investment in training and
development, compensation and benefits, career development opportunities, effective
talent management strategies, work life balance, culture of the organization, Gallup
audits, autonomy and empowerment, leadership, communication, image of the company,

120
personal causes, performance appraisals, work related policies, flexi time, and career
growth and development opportunities. But they found that there was not a single fixed
practice which showed the importance and significance of the influence of all the above
factors because different organizations put down different emphasis on the factors
depending upon their suitability impacting the employee retention. On the basis of
various papers reviewed by the researchers, they have given following suggestions that
organizations ought to adopt to keep the high level of employee commitment and to
improve the employee retention: organizations should conduct “stay” and “exit”
interviews to recognize the various reasons for which employees decide to leave the
organization. This information will help the organization to understand why employees
leave the organization; managers must spend significant time in employees training,
motivating good performers to be prepared for promotions or to move in upward
direction in the hierarchical ladder of the organization, and motivating poor performers to
improve their performances and perform better; organizations can arrange contests to
motivate the employees. If this is done in appropriate manner then such contests can
make employees more determined and passionate about their jobs; employers ought to
focus on recruitment and selection of the candidates and try to do smart hiring. They
should be careful from the beginning by keeping few things in their mind like diligence,
integrity, attitude, academic qualification, skills, and experience of the candidate;
organizations should motivate their employees to take part in the company’s corporate
social responsibility initiatives, so that they have a feeling that they are not only doing
work for the organization but they are also doing something good for the society;
employers ought to try to understand the employee’s personal need of time off. Providing
time to the employees for their personal life is also very essential to improve employee
retention; and employers must give fair and equal treatment to each and every employee
because this is very important for all the employees that their organization treats
everyone in the same way without any biasness.

121
Supervisor-Employee Relationship and Employee Retention

Ng’eno Williter Chepkemoi Rop, Dr. Mike Iravo Amuhaya, Prof. Christopher
Kanali and Prof. Ronald Chepkilot in their research on “The influence of supervisor-
employee relationship on retention of millennial employees in private hospitals in Bomet
and Kericho Counties, Kenya”, found that there exists a significant association between
supervisor-employee relationship and retention of millennial employees. This study also
found that there was the relationship between various variables like the supervisor
appreciation of employees work, cordial supervisor-employee, supervisor granting
employee freedom to make job-related decisions, supervisor’s contribution to employee’s
career development, supervisor as employee’s mentor, and supervisor influencing
employee’s decision to continue working and employee retention. The results showed
that there was a positive correlation between all these variables and employee retention.
Supervisor appreciation of employee’s work was found to have a strong and maximum
positive correlation with employee retention among all these variables, which was
followed by supervisor granting employee freedom to make job-related decisions,
supervisor as employee’s mentor, cordial supervisor-employee, supervisor’s contribution
to employee’s career development, and supervisor influencing employee’s decision to
continue working. Employee’s work appreciation, mentorship, freedom to make job-
related decisions, and career development granted by the supervisor were also found to
have a high and positive impact on the employee retention while supervisor’s influence
on employee’s decision to continue working was found to have an average and positive
impact on employee retention. This showed that in the private hospitals there exists a
strong and positive correlation between supervisor-employee relationship and retention of
millennial employees.

122
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