How to do employee retention

irrespective of high demand in market.

Project- I

NAME PRN
Nandhini B CG2144
Sramona Bose CG2178
Suraj Kumar Yadav CG2180
Thoom Manideep CG2183
Wahaj Ajaz Rasool Sayyed CG2188

[CAPGEMINI]
1. Common Problem identification (What/ Why/ How):
What ?? Employee retention strategies have always been a major problem for every
industry including IT industry. This gives rise to the problem of retaining talented employees
to counter the attrition challenges. Retention is the process of keeping an employee
associated with the organization by seeding towards his/her needs by understanding the
challenge he/she is facing. Effective retention policy comes into effect when it is capable of
addressing attrition challenges. Attrition can be voluntary where employee decides to leave
the organization or involuntary where employer fires/terminates the employee. It is the
voluntary attrition that creates problems for the organizations as it may cause the decreasing
cycle of attritions to happen. The attrition can be categorized in two major types, one is empty
chair attrition in which employee just leaves the organization following standard process,
second is warm chair attrition where employees stay on in the organization but quit from
contributing or producing outputs and both types are problematic for any organization. So
an effective retention policy should be based on principle of “Act before its late”.
Why ?? As we covered what the problem is with respect to employee attrition, there
are many reasons and factors which explains ‘why’ it happens. Some of the factors are market
driven as the demand is high in the market for specific skills and organization tends to lure
employee with best offers to leave the existing organization and joined them. It can happen
due to burn out culture of an organization or project work pressure pushing employees to
quit. If the hiring for a particular job role was not done correctly in a first place, it’ll give rise
to dissatisfaction with job role causing employee attrition. Bad work culture including bosses,
management and peer employee can also give rise to this. Work and family conflict may push
employee to look for better opportunities. Lack of appreciation of hard work and lack of
motivation can also be a contributing factor. Last couple of years employees looking for work
from home opportunities and if other organization is offering the same then it would also
lead to attrition. One of the major factors can be considered as the dissatisfaction of hikes
and rewards and delayed promotions etc. These are few of the employee attrition reasons.
HOW ?? IT industry has been a major sector in the market since a long time now. This
has been largely due to push for digitization where businesses and all related activities moving
digital. There is hardly any sector that find itself not associated with information technology.
Being a huge market sector, there is a major challenge for the industry to have a right pool of
talents to keep pace with the changing business requirement and adapt itself to such changes
in accordance with the customer needs. So, with the changing demands and technology, the
industry find itself difficult to maintain a descent talent pool. Due to the shortage of skilled
workforce, we have also witnessed the cases of talent poaching by competitors within the
industry where lucrative offers and benefits are given to attract talents.

pg. 1
2. Project Introduction (Basic details):

The employee shortage is growing quickly across industries, and organizations are
struggling to meet the demand. It’s time to take decisive action to attract and retain
employees. With employees taking on non-traditional forms of employment, retiring early,
choosing another company, starting their own businesses, or simply choosing to take a
break, organizations across sectors are struggling to meet the demand.
Having previously explored which employee groups are leaving, where they are going, and
the implications for the employee market, we will turn our attention to what organizations
can do about it.
Today, many people are quitting for different reasons than they did historically, and
organizations are on high alert. For many employees who are disillusioned, grieving, or burnt
out, the prospect of muscling through doesn’t feel sustainable—no matter the increase in
compensation. People are taking stock of their lives and are more likely than ever to change
their career trajectory in notable ways.
Another distinctive characteristic of today’s attrition is the number of people leaving
the workforce altogether, fueling a growing employee shortage across industries. Demand is
increasing as the whole world is being digitalized, while supply is decreasing. Organizations
are worried there aren’t enough people to accomplish the work—particularly in industries
like healthcare and technology that are seeing attrition rates 3.6 percent and 4.5 percent
higher, respectively, than in the previous year.
What are the implications of this exodus? Historically, increases in voluntary
employee attrition often signaled employee inflation, a war for talent, or other forms of
“reshuffling” between employers. Even if many employees changed jobs for a promotion or
better pay, the net effect on the employee supply was minimal because they were simply
moving between employers. Hence, the retention policy should be based on meeting the
demands of employees so that highest productivity can be harnessed from an employee
based on his talent without incurring extra cost.

Image source ( https://www.mckinsey.com/~/media/mckinsey/business functions/people and organizational performance/our

insights/leadership and organization blog/the great attrition facing the labor shortage conundrum/labor-supply-shortage-
model.jpg?mw=900)
If this shortage continues, there will be rising wages, inflation, and supply chain issues
in the short term. In the long term, it could halt GDP growth, induce a recession, and cripple
the future expansion of sectors dominated by blue-collar and manual workers. The
unprecedented number of people quitting without taking another similar job is having an
enormous impact on labour supply. Organizations must act to retain their current employees
and to attract people—both those at other companies and those who have temporarily left
the traditional workforce.

In this project, we are going to discuss about the main issue faced in the IT sector
which is employee leaving the current organization for various reasons and the factors that
contribute to retain the resources within the same organization providing benefits to both
employee and employer. Retaining valuable employees of an organization and providing
them best alternatives as per there needs to prevent their resignation is a strategy that can
make an organization save a considerable amount of time, efforts, and money. Employees are
the most vital part of the organization. The employees who are not able to use their full
potential and not heard or valued tend to leave the company. They feel their worth with the
wages paid to them in form of salary, hikes or compensation that matches the market. The
people who are paid well are showing clear and reliable impact on the profits where it is
visible in the product-based companies due to their transparency in handling the overall
employee benefits. Whereas in service-based company, HR management is different and less
transparency. Sometimes they fail due to following the traditional approach.
Retention of key employees and handling attrition troubles has always been major
issue for organizations, and it became more challenging for the companies due to current era
uncertainty. In current situation, Strong retention strategy should be the focus for the
recruitment team. Effective employee retention should be followed by employers to
encourage the critical resources to continue with the organization by providing policies and
practice that addresses their diverse needs. In a highly competitive environment where HR
managers are poaching from each other, organizations can either hold on to their employees
tight or lose them to the competition. For gone are the days when employee would stick to
an employer for years for want of a better choice. Now opportunities are over bound. In fact,
the attrition levels of IT companies are as high as 40% and to maintain normalcy, it is expected
below 8-10%.
In this study we want to come up with possible resolution, ways and deals to make
the retention rate of the valuable employee high. To do this we need to first study the reasons
why employee want to resign from the current company and join the other company which
as per employee giving him/her the better compensation for work. As we have established
the above section that there could be multiple reasons for an employee attrition to happen
and only after understanding those reason organizations can provide the better
compensation. Every employee willing to leave the company will have different
problems/reason for that and if company tries to understand the underlying reason and
willing to provide the resolution to those reason then employee attrition rate can be very well
controlled. We understand that organization cannot provide the resolution and fulfil the
demand of a leaving employee, but there are numerous cases where retention can be done
if attempted in a right way. The goal of our project and study to find the best strategies
depending upon the different reasons of employee attrition to increase the retention rate of
the valuable and talented employee for an organization. There are three broad sets of
actions organizations should take: Create a more attractive work environment that is
engaging, fulfilling, and sustainable; make the employer-employee relationship “stickier”;
and go on offense to turn the Great Attrition intothe Great Attraction.

pg. 3
SCOPE:
To most organizations, monitoring employee attrition rate is a key achievement
metric. Organizations hold back nothing. High weakening level is a causing worry for
associations as it might cost critical measure of cash to supplant representatives ceaselessly.
As a matter of fact, in many verticals it is more productive to keep current representatives
than to obtain new. Two famous Business spokes (2004) pointed that they joined immediate
and roundabout expenses related with one worker leaving the association goes from a base
one year's compensation and advantages including the deficiency of corporate memory,
influencing efficiency, productivity, item, and administration quality, adversely influencing
business, spirit, and work environment security. Moreover, clients might see a drop in the
worth of organization's item or administration because of a lessened work power or absence
of spirit or inspiration in leftover representatives. This harms to the brand might additionally
affect organization's base line. Anything the reasons are, obviously the organizations are
awkward with the high produce pace of its workers, and it ought to be checked and made do.
We live in such time when Technology is reshaping our lives. The requirement for going
computerized is fundamental to stay applicable to the need of Gen Y - the future labour force.
'Advanced India' drive driving action in the homegrown market adds to the defense. Indian IT
area's development and expanding development is reflected across different aspects. The
Indian IT-BPM area keeps on being perhaps the biggest boss in the nation straightforwardly
utilizing almost 3.7 million. Total IT industry incomes for FY2016 are assessed at USD 143
billion, contributing 9.3% straightforwardly to India's GDP and offer over 45% in help trades.
Indian IT-BPM is on target to accomplish USD 225 billion objective by 2020 (Nasscom
information 2016). IT organizations are confronting trouble in winning arrangements at the
customary high-edge organizations along these lines, there is tension on IT organizations to
reduce costs on the administrations they are advertising. Possibly they go for esteem
expansion administrations or cut the expense of HR or both, to keep up with the working
margin. Administration’s area saw a steady loss pace of 19.3%, contrasted with 12.2% in
manufacturing. Steady loss in the IT administrations portion goes from 15-18 percent. From
area pioneer Tata Consultancy Services (TCS) downwards, high worker weakening is an issue
at data innovation administration companies which assuming let alone will have sweeping
ramifications on the development of Indian economy.

Thus, there is a desperate need of the current review to resolve this disturbing issue
of steady loss in IT organizations truly and guaranteeing long haul maintenance. Many
examinations have been attempted on weakening, notwithstanding, no orderly and
exhaustive work has been observed that concentrate on the predominant whittling down
pattern and particular HR procedures and drives to address the underlined causes referenced
by the previous exploration. Subsequently, the current review is an endeavor to concentrate
on the whittling down pattern and underline the hole between distinguished determinants
and HR techniques.

• Study to be based on Employees of Indian IT sector.

• To look for various retention strategies adopted by HRs in Indian IT sector.
• To study best practices adopted by HRs to retain the talents
Project Details and Objectives:

IT being a huge market disruptor, there is a major challenge for the industry to have a
right pool of talents to keep pace with the changing business requirement and adapt itself to
such changes in accordance with the customer needs. So, with the changing demands and
technology, the industry find itself difficult to maintain a descent talent pool. Due to the
shortage of skilled workforce, we have also witnessed the cases of talent poaching by
competitors within the industry where lucrative offers and benefits are given to attract
talents. For an HR, Talent management is more than a skill now and requires right strategy
and analytical approach to build the best roadmap for the organization to manage its talent,
constantly engaging them, upskilling them as per the industry demand, keeping them
motivated through rewards and recognition and retaining the best of the brains to add value
to the organization. Retention of a talent is a major challenge and IT being prominently a
service-based industry, there is no standard formula to find a value in the talent, given the
intangible nature of service sector. In contrast to this, for product-based companies, it is
easier to find value in an employee by analyzing the no of sales he/she has made, or quantity
of products that were processed etc. So, this makes the process of retaining a talent in service-
based industry way more complex and hence it poses a real challenge for talent management
team to decide on whether to acquire a new talent or retain the existing talent. It is not
necessary that retaining a talent would be a best approach and it depends completely on the
present or future circumstances to decide on the retention. And it is also not necessary that
acquisition of new talent would solve the problem as this is again subject to conditions. So,
the best approach would be to determine the value that the talent brings to the organization
and then to decide on whether to retain or acquire a new talent. Having done this, we need
to study what approach/strategy the HR should adopt to retain the right sets of talent by
offering best deals for them and keeping them associated with the organization for a longer
time. In this study we are going to understand the reasons for change in organization that the
employee considers and what factors goes in to retain the key talent. What strategies the HR
adopts to retain the valuable resources in accordance with the market demand and its
effectiveness is what we are going to study.

Problem Statement:

Effective retention policy is a major challenge in IT industry. There has to be some

tested and tried model for retention strategies. Currently, attrition level in IT sector is
significantly high compared to other sectors and there is high uncertainty on long time
association of key talents with the organization, given the changing business ecosystem and
competitiveness. Talent poaching by offering lucrative deals is a major concern and makes it
more critical for HRs to adopt correct strategies to retain the right talents and ensure smooth
delivery of business. So IT industry must adopt right approach and strategy to retain its best
talent to make sure they remain a step ahead in this competitive market where there is
immense shortage of right talents.
Objectives:
• To understand the factors and reasons that drives the employees to change the
organization
• To understand what employees, look for in new organization.
• To understand how likely, the employees are willing to stay associated with the
organizationif the concerns are addressed.
• To study HR strategies and policies on talent retention by other organization
• To come up with comprehensive solution to prevailing challenges on employee
retention
• To come up with effective HR strategies and policies on employee retention for
uniform application across the sector.
DATA NEED:
Data is vital in research since it makes data analysis much easier and more precise. It
is used to evaluate data in an easy manner, ensuring that nothing is overlooked that could aid
in the discovery of new information. Data is extremely important in today's environment.
Unlike in the past, technology has advanced to the point where it is now possible to acquire
relevant data. We needed data from both the employee and HR perspectives for this project.
The required information is presented in the form of questions, and the data is extracted from
the responses.

DATA COLLECTION:
Data collection is the procedure of collecting, analyzing, and evaluating proper insights
for research using established methodology. Then the hypothesis will be evaluated. Whatever
the subject of study, data collecting involves as the first and most significant phase.
Depending on the information required, different approaches of data gathering are used in
different disciplines. The goal of data collecting is to collect information-rich and accurate
data for statistical analysis so that data-driven research decisions may be made. Data can be
gathered in a variety of ways. We require two sorts of data for analysis: primary and
secondary data. The first comes from personal experience, and the second comes from
historical evidence. All the data for the organization can be gathered from internal or external
sources.

This is a process that deals with the storage of the important information about the
company, project etc. This is very important process as it will help in creating the database of
important information that can be utilized by business or projects for making strategies and
decisions based on the analyses. If we are making any mistakes in this process and not utilizing
best practices while data collection, then subsequently our analysis and strategies will fall off
the mark.

We have followed the best practices of data collection on best effort basis. We tried
doing it by asking right question which are most relevant to our project, we collected the data
from right candidates who have knowledge about topic or who are working in this domain.
To avoid the biasness in the data collection process we have collected our employees’ and
human resources’ data from various business units and organization. This will ensure that we
have collected data from variety departments and roles and not biased with any specific job
role or department but rather we endeavour was to cover the entire IT industry.
DATA COLLECTION METHODOLOGY:

A systematic procedure of obtaining observations or measurements is known as data

collection. Data collecting allows to get first-hand expertise and unique insights. Under
primary data gathering, we used a qualitative approach. In the form of a survey, a
questionnaire is produced collecting the essential data from employees and HR. The survey
technique is mostly used to focus on the target audience and provide information about their
preferences, choices, opinions, and comments. In addition, surveys are a quick and easy
approach to get information from a variety of sources. Currently, there are a variety of ways
to distribute the survey, including email, social media, and adverts. Survey dashboard gathers
data from many people to produce a clear image and statistics that save time and effort while
also revealing hidden insights for research. We are obtaining information from the research
article as part of secondary data collecting.
Consumer Data are of three types:

• First-party data: which is collected directly from users by your organization

• Second-party data: which is data shared by another organization about its customers
(or its first-party data)
• Third-party data: which is data that’s been aggregated and rented or sold by
organizations that don’t have a connection to your company or users.

Though there are use cases for second- and third-party data, first-party data is more valuable
because you receive the data about how your sample candidate behaves, thinks, feels, and
sees all from a trusted source.

Data Cycle
 Though there are several methodologies to collect data, we have chosen surveys,
interviews, social media monitoring as our data collection Methods.

• Surveys: Surveys are physical or digital questionnaires that gather both qualitative and
quantitative data from target audiences. They can be sent out physically or digitally,
surveys present the opportunity for distribution at scale. Surveys are inexpensive;
running a survey can cost nothing if you use a free tool. Digital data collection includes
various subcategories like website contact forms, contests/giveaways/ event sign-ups,
user profiles etc. In our project we have used the google forms which falls under
website forms to collect the primary data from employees and human resources or
top management.
We have published two google forms to collect the data from both the HR and
Employees about how, why and what they feel about the exit and retention policy.

HR survey: http://surl.li/bvwpx
Employee Survey: https://forms.gle/DkxfyTvZMoN4Vng99

• Interviews: Interviews are mainly consisted of talking to the target audience face-to-
face about the specific topic. Interviews tend to be one-on-one. We have done some
internal interviews to get a close view on the current scenario of some organizations.
As is the case with surveys, this collection method allows you to ask subjects anything
you want about their opinions, motivations, and feelings regarding your topic. It also
introduces the potential for bias. Aim to craft questions that don’t lead them in one
direction.
• Social Media Monitoring: Monitoring different company’s social media channels and
LinkedIn profiles are accessible ways to legally track data about audience’s interests
and motivations. Many social media platforms have analytics built in, but there are
also third-party social platforms that give more detailed, organized insights pulled
from multiple channels. We used data collected from social media to determine which
issues are most important for the employees or HRs.

Primary Data collection – Employee Survey

Employee Survey Employee Survey

Data.xlsx Report.docx
 Data Analysis Details

Employee Survey Data Details:

The survey is conducted within the IT industry and gathered information through
employees worked in the organization.
The dataset contains 24 variables and 34 records, the variables are described below.

Variables Type
Name Participant Identification - Unique
Participant Identification to confirm
Email ID he is from IT industry
Company Name Reference IT company
Gender Categorical data
The preference of employees to move for a new job
(new company) Categorical data
The satisfaction of employees towards current job Categorical data
The level of satisfaction obtained in quitting the existing
job Categorical data
There are rewards and recognition for your
achievements Categorical data
The appreciation for work from co-workers &
supervisors are essential Categorical data
Satisfaction gained from facilities provided by current
organization Categorical data
Do you think that employee retention helps the
development of organization? Categorical data
Does your company pay more attention to incentives Boolean data that has values Yes or
and perks offered to employee? no
Are you encouraged to participate in training to improve Boolean data that has values Yes or
your skills and Competencies? no
Do you get the recognition that you deserve for your Boolean data that has values Yes or
performance? no
What is your opinion regarding the workload? Categorical data
Would you like to plan your further career in this Boolean data that has values Yes or
organization? no
Have you ever suggested/will you suggest your Boolean data that has values Yes or
friends/relatives to join this organization? no
Do you think that the implementation of three Rs
(recognition, reward, respect) will increase employee Boolean data that has values Yes or
retention? no
Does your management come for and to support when
you are facing with critical situation? Categorical data
Work-life balance is supported by this organization Categorical data
Your training program is always linked with your career
development/growth Categorical data
Organization treating you in a respectful way Categorical data

pg. 1
 There are no barriers of communication while you are
communicating with your superior Categorical data
Do you agree that you are rewarded periodically for
your performance? Categorical data
Do you agree that employee retention is plays a vital
role in the result of productivity? Categorical data

Data Analysis:

Employers are investing so much effort into minimizing employee turnover, which is
defined as people leaving the firm and having to be replaced, since it has a negative impact
on the business, including a significant waste of time and money.
Attrition causes losses in all these areas:

• Overworked remaining employees: The surviving employees must assume responsibility

for the job that the departing employee was in charge of, resulting in dissatisfied employees
who are more likely to leave the organization.

• Lost experience and knowledge: The company no longer has access to all of the former
employee's experience and knowledge accumulated over the years.

• Recruiting costs: The Human Resources (HR) department spends both money and time on
the selection process to replace the employee.

• Training costs: In addition to any training courses that the new employee may require,
additional expenditures must be considered. This individual will need some time to
completely understand his or her task and will require assistance from co-workers, resulting
in a considerable loss in production.
Motivational Factors influence the employee retention

There are rewards and recognition for your

achievements
Does your company pay more attention to incentives and
Remuneration perks offered to employee?

Work-life balance is supported by this organization

Work life conflict What is your opinion regarding the workload?
Are you encouraged to participate in training to improve
your skills and Competencies?
Training and Your training program is always linked with your career
development development/growth
 The satisfaction of employees towards current job
Satisfaction gained from facilities provided by current
organization
Do you get the recognition that you deserve for your
performance?
Would you like to plan your further career in this
Job Satisfaction organization?
Do you think that employee retention helps the
Retention development of organization?
Does your management come for and to support when
you are facing with critical situation?
There are no barriers of communication while you are
Leadership communicating with your superior

Descriptive Analysis:
Survey data shows more employees on satisfied side. Also, the sample consists of both male and
female employees.

Table 1.2: Gender wise distribution of the sample

Analysis is performed by comparing different category of data in the survey and finding whether the
data falls on positive or negative side. Below graphs are interpreted with the data and positive, highly
satisfied, happy employees falls from 0-1, 2 being neutral and above 2 are on negative, dissatisfied
individuals in their current position or current company.

Graph 1.1: Shows that employees who are satisfied in the current job are highly motivated by their
superior appreciation and co-worker’s feedback.

Graph 1.1
Graph 1.2: Facilities provided in the organization plays a vital role and can be seen below.

Graph 1.2

Graph 1.3: Both increment and happy employees’ category are directly proportional. Even Employees
who are not satisfied with the company has got good bonus. This proves that high hike in market is not
the main reason for the people leaving organization

Graph 1.3
Graph 1.4: Company has to concentrate on the rewards, perks and hikes to employees especially who
are satisfied. Because this is the only area where happy employees are not happy.

Graph 1.4

Graph 1.5: Shows that management should take care of the team and their needs. Employees who
trust the management, will sure have a good opinion on the company. Retaining employees who
believes that he/she will be supported by the supervisors during critical issues tend to retain in the
same company and work productively.

Graph 1.5

Graph 1.6: Work life balance is the main key whereas all satisfied employees could have a balance life
and hence they continue to work with in the current job.
 Graph 1.6

Graph 1.7: Hence the last bar graph shows, it is good to retain the highly satisfied employees as they
would favor the retention policies and make use of it.

Graph 1.7

Other comparisons establish relationship between remunerations, leadership, and work-life conflict
below (Graph 2.1,2.2.2.3)
Graph 2.1

Graph 2.2

Graph 2.3

Factors Influencing the satisfaction level Percentage

Remuneration 56.55%
Work life conflict 65%
Training and development 74.25%
Job Satisfaction 72.35%
Leadership 74.30%
Table 1.3 – Results of the Employee survey details
Data reveals that satisfied employees are having concerns in one or other facilities provided by the
organization. Above table tells which factor needs to be concentrated for better retention of happy
employees. So, company should take actions on remuneration or hikes provided and at the same time
it should be flexible with employees work life balance. Both the factors together contribute better
changes for the employee to stay for long time.

Percentage

74.25% 72.35% 74.30%

65%
56.55%

Renumeration Work life conflict Training and Job Satisfaction Leadership

development

Graph 3.1

Top 6 Policies that help the Retention Programs in companies:

Source: Data is collected by having discussion with the colleagues who have been retained in the
previous years. Below policies are successful and 30% of employees has accepted the policies and have
taken the counteroffer from the current company
• Employee compensation is matched according to the offer released by other companies
• Employees are provided with Work from home permanently
• Providing the role in newer technologies
• Offering higher educational support from Company
• Promotions
• Giving company shares under stock policies if stayed longer periods

Other 20% of employees accepted the retention due to the personal demands on relocation, office
timings, transport facilities and increasing their medical allowance.

Result Details & Discussions w.r.t. Findings Vs Expectations/Objectives:

Primary Data Analysis:

EMPLOYEE SURVEY DETAILS:

From the data it is identified that, most of the people has chosen Career growth over
Salary. Even salary plays important role when employee shifts organization. But the main
reason is never salary, it is one of the factors that contribute to attrition. As majority of the
participants are from Capgemini India Pvt Ltd. The sample has fallen into restricted data and
most of the survey questions has positive outcome with more than 50% of people favoring
the organization. Among this, we found 8% of people who had already quit the job and in that
only half of them only were not happy with the facilities in the company. Data tells other half
we’re looking for some opportunity outside besides being satisfied within the same
organization.

By knowing employees’ interest and disinterest through feedback forms or survey, It

would be possible for the organization to predict and take measures to retain the needed
resources beforehand. Employees are willing to work in the same place if proper rewards and
recognition is provided periodically. Also, it’s good to show case future benefits for the critical
resources. This way, people will be encouraged to stay.

Survey also reveals, newly joined people tend to work and concentrate on their career
growth for the first 1-2 years, whereas people who worked beyond two years and having
more workloads are expecting performance bonuses and recognition from the management.
Other factors that majorly contribute for attrition is personal problems but as the reasons
cannot be categorized, Organization should keep an eye on the behaviour of employee and
improve interaction with his managers who can identify the solution for it internally.

HR SURVEY DETAILS:
According to the survey done on HR’s regarding the Employee Retention Program. On
an average the attrition rate for different companies was in between 12 to 15 %. And also,
there were several questions were posted in the survey regarding the retention programs,
And the questions were like Do you conduct exit and stay interviews for all the employees
who have resigned? For these questions we received most of the answers as yes. We also
asked regarding the employee retention policies in the company and the motivation
programs. Here most of the companies do have strong retention policies in-order to retain
the employees like Mentorship programs, Employee compensation, Wellness offerings,
Training and development, Internal job transfers and Offering the employee to pursue the
education further by providing different kinds of pilot programs with different national and
international universities. Apart from trainings and learnings they are also providing Physical
& Mental check-ups planned for Employee Well-being, monthly/quarterly Awards for the best
performers. We also posted some other questions and below are the findings from the survey.

1. Giving incentive to top rated employees yearly.

2. Company/project has strategies to retain employees leaving organization due to
"Lack of integration and goal setting".
3. Company/project has strategies to retain employees leaving organization due to bad
"Work atmosphere".
4. Company/project has strategies to retain employees leaving organization due to no
"Work life balance".
5. Company/project has strategies to retain employees leaving organization due to lack
of "Motivation and appreciation".
6. Company/project has strategies to retain employees leaving organization due to no
"Work from home".
7. Company/project has strategies to retain employees leaving organization due to
"Dissatisfaction with salary and perks".
 8. Company/project has strategies to retain employees leaving organization due to
"lack of transportation and talent".
9. Company/project has strategies to retain employees leaving organization due to
"Lack of work ethics".

Literature Review and Analysis:

As we have already discussed that employee turnover is a common phenomenon

however is retaining talent and star performers for maximum period is crucial for any
organization’s success story. Organizations in general invest a heavy sum in recruiting and
developing their employees and the employee turnover especially for top talent turnover is a
loss for any firm. As we have already discussed earlier that people leave the organization
because of various reasons and not just only because of monetary reasons. As this study is
about retaining the top talent despite being a high demand in market and in order to that we
have studied about and captured the primary data that suggest that in order to retain
employees there should be set of strategies formulated and practiced those deals with the
different reasons of attrition.

The awareness about the common misconception about the employee turnover is
very important because that paved the path for coming up with retention strategies that can
help the organization for retaining the talented and star performer and without knowing
these misconceptions it would be hard for organization and managers to deal with the
attrition issue. Some of the common misconceptions are ‘all turnover is the same and it’s all
bad’ however studies say there are different type of turnover and some of them are fictional
as opposed to the dysfunctional which causes the loss for organization and turnover costs
very based on the kind of turnover. ‘people quit because of pay’ is very famous misconception
however as per the studies pay level and pay satisfaction are relatively weak predictors in
attrition or turnover cause, instead turnover intention and job search comes in the strong
predictor of attrition along with the job satisfaction and organizational commitment are other
relatively strong predictors. Management, work design along with relationship with others
are also consistent predictors. The misconception that affects the most in not retaining the
talent within an organization is ‘there is nothing much managers can do to directly influence
attrition of employees’ as this misconception stops and demotivates managers and HRs to try
to retain the employee and come up with the appropriate strategies to retain them. The
studies shows that there are evidence-based human resource best practices that are
associated with attrition and turnover, and recruitment process, selection and socialization
practices during the onboarding affect the retention of and employees and managers can help
in retaining the talent by creating a healthy team culture and work environment and by
providing training, rewards and recognitions and supervisory practices. These are few of the
important out of many misconceptions which have been proven wrong by conducting
evidence-based studies and which are crucial to be aware of and avoid them for creating and
practicing different strategies that addresses the different reasons of attrition.
 Employee retention strategies are tactical and complex process that deals with
numerous aspects to ensure the best talents of the organization remain associated with it. It
is evident from the previous studies that replacing an employee cost heavily to an
organization, not only monetarily but also in other areas like loss of efforts, knowledge,
competency, reputation etc. It is said that an attrition of a mid-level manager costs an
organization 5 times to fill the vacuum. In addition to that, the efforts incurred for recruiting
the replacement adds up to the misery. So, what strategies fits well with the employer so that
the best of their talents remain associated with them for longer time is what we are going to
study here by critically analyzing the history of retention strategies and finally making a
conclusion on best possible ways to accomplish this.

Before going forward, we need to first understand certain critical points for the cause
of attrition and how it affects the organization. But we must also acknowledge that attrition
is good up to a certain level as it brings new ideas and remove stagnancy in the team. Setting
it aside, let’s see what the causes and its effects are:
a. Replacing a talent incurs huge cost in terms of money, efforts, knowledge and even
reputation
b. Job satisfaction is the major cause of attrition other than monetary aspects
c. Job stress and overwork is also one of the key aspects
d. Growth and compensation are the major reasons.

Reference:
Allen, D.G., P.C. Bryant, and J.M. Vardaman. “Retaining Talent: Replacing Misconceptions with
Evidence based Strategies.” Academy of Management Perspectives. May (2010): 48-63.
“Employee Retention Strategies: IT Industry” by Leena James and Lissy Mathew - SCMS Journal
of Indian Management, July - September 2012.
THE RETENTION STRATEGIES OF EMPLOYEES OF IT INDUSTRIES – J. Vijayakumar (2012)-
IJMRA-RSS1917