Interrelationship among Employee Retention Strategies Adopted by Corporate Sector: An Empirical Study
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1 International Journal of Research in Management, Science & Technology (E-ISSN: ) Vol. 3, No. 2, April 25 Interrelationship among Retention Strategies Adopted by Corporate Sector: An Empirical Study Pavitra Yadav #, Shabnam Saxena *2 # Research Scholar, Haryana School of Business Guru Jambheshwar University of Science & Technology Hisar (Haryana), India pavitrayadav.yadav@gmail.com * Professor, Haryana School of Business Guru Jambheshwar University of Science & Technology Hisar (Haryana), India 2 shabnamsaxena@gmail.com Abstract-s are the assets of any organization and organization cannot afford losing its key performers. Thus, for retaining best employees, an organization has to design appropriate strategies. There are various retention strategies adopted by the firms. The present paper is an attempt to explore the interrelationship among the employee retention strategies and to identify the most prominent employee retention strategies adopted by corporate sector. For this purpose Primary data for the research is collected with the help of questionnaire. The sample of the study is employees from 3 companies in corporate sector. Descriptive statistics and correlation analysis have been performed to achieve the desired objective. On the basis of mean scores obtained maximum focus was given to training and development strategy. Pearson correlation result shows that Orientation strategy is found to be significantly and positively correlated with all other strategies at 5 % level of significance except for training and development strategy and employees idea and suggestion strategy. The rest of all the strategies are found to be positively and significantly correlated with each other except for training and development strategy Keywords- retention, Job hopping, Orientation, Communication effectiveness. I. INTRODUCTION Human resource management has been recognised as an important part of running any organization. In today s scenario employees are the backbone of an organization, thus it is necessary for an organization to retain its employees. s are the assets of any organization and organization cannot afford losing its key performers. Organization are made up of people where individuals come together to achieve common objectives. retention means a process in which employees are encouraged to remain in the organization or the ability to retain its employees. s are organizational assets who help in providing innovative, advantageous and creative solutions to organizational problems (kwenin,23).retaining the best employees would ensure achievements of company objectives, customer satisfaction and effective succession planning (Mello, 27). retention is beneficial for both employees as well as organization. Friedamann and Puck (2) observed that foreign firms in India currently facing two challenges in human resource management i.e. personnel recruitment and retention. Nowadays corporate sector is facing a lot of problem in retaining their employees. There is no dearth of opportunities which are looking for such employees. Hiring knowledgeable people for the job is essential for an employer, but retention is important than hiring. For retaining best employees, an organization has to design appropriate strategies. For this study, various employee retention strategies have assessed and tested. retention strategies go a long way in motivating the employees so that they stick to the organization for the maximum time and contribute effectively. There are five determinants such as support, work environment, rewards, career development opportunities and work life balance (Shekshnia, 994). If the organization is not able to retain its employees, it will not able to capitalise on human assets developed by the organization. II. REVIEW OF LITERATURE Sheridan(992) studied on organizational culture and employee retention and investigated the retention rates of 94 college graduates and found the variation in cultural values had significant effect on the rates at which the newly hired employees voluntarily terminated employment. The researcher investigated that retention varies significantly with organizational values. Khatri, Fern and Budhwar (2) revealed that organizational commitment, procedural justice and job hopping attitude were three main factors associated with turnover intention in Singapore companies and found that retail industry had the /Copyright 25, IJRMST, April 25 96`
2 International Journal of Research in Management, Science & Technology (E-ISSN: ) Vol. 3, No. 2, April 25 highest employee turnover in the service sector, there were significant variation across various industries and lastly concluded that employees with longer tenure may feel social pressure to switch their jobs and turnover was studied with three factors :demographic, controllable and uncontrollable. Punia and Sharma (28) highlighted the influence of organizational procurement practices on employee retention intentions on the basis of positions and personal variables of employees and also investigated that in current scenario the variables like induction programme, scientific job analysis and fair & skill based distribution of work assignment are the key factors in influencing the employees retention intentions in IT sector and organization in general. The corporate sector has to strengthen their induction programmes, during scientific job analysis before selecting the employees and resorting to fair and skill based work distribution practices. Sinha and Sinha (28) studied that retention and proper development of talent are the burgeoning problem, also analyze the causes of the high attrition rate of employees in the management institutes of UPTU and suggested ways to reduce the turnover rate of faculty lastly it was concluded that most of the employees leave their college because of organizational politics rather than salary package, inappropriate management, infrastructure and timings. Hassan, et.al (2) focused on employee retention as a challenge in leather industry of Pakistan which is facing the problem of retention and it was observed that mostly second line manager change their job s for high salaries offer, recognition, authority and also to seek more knowledge and also to get more competitive edge in terms of processing and lastly it was concluded that almost all factors or indicators that directly or indirectly influence employee retention are correlated. Akila (22) studied on employee retention among executives at BGR energy system and found that employee retention is mostly affected by career opportunities, work life balance, work environment, supervisor support. Zachariah and Roopa(22) investigated that there is no significant difference in the response among IT professionals of Indian IT and multinational companies and studied that for minimizing the attrition rate effective retention strategies are to be developed for organization so it was concluded that having a robust retention strategy will help the organization in attracting and retaining top talent. Organization should periodically conduct exit, engagement and culture surveys to understand the changing expectation of the critical workforce from time to time and taking all these inputs to have a holistic understanding of the factors influencing retention of employees.maluti, et.al (22)studied on impact of employee commitment on retention in state financial corporation in Kenya and found that there was no significant impact of employee commitment on employee retention. Sanda and Ntsiful (23) studied on dynamics of employee retention among SME S in a developing economy and found that firms HR practices have significantly negative impact on employee retention and concluded that best retention strategies need to be adopted which are flexible workplace practices, work family support policies as well as focussing on good reward management practices. Ahmad, et.al (23) investigated relationship between types of benefits and employee s retention. It was found that there was a positive relationship between leave, loan and retirement plan and found that among three benefits leave was dominant factor for influencing employee retention.kewenin(23) studied the relationship between work environment, career development opportunities and employee retention in Vodafone Ghana limited and found that work environment and career development opportunities had positive relationship with employee retention. The researcher used Pearson coefficient correlation to establish the relationship among the variables. III. OBJECTIVES The present study focuses on the following two objectives:. To investigate the interrelationship among the employee retention strategies adopted by the corporate sector. 2. To find the most prominent employee retention strategies adopted by the selected organization. IV. RESEARCH METHODOLOGY The Sample The sample consists of employees from three selected organizations in corporate sector. The respondents were contacted through personal contacts. The questionnaires were administered personally. The Instrument The study is based on primary and secondary data. Secondary data include review of existing literature on retention. The review of literature has helped in deciding the objective of the study. Primary data for the research is collected with the help of questionnaire to achieve the objective of the study.to collect all the necessary information from the selected respondents, standardised questionnaire is used which is /Copyright 25, IJRMST, April 25 97`
3 International Journal of Research in Management, Science & Technology (E-ISSN: ) Vol. 3, No. 2, April 25 constructed by Geroge p. Smith. Collected data has been analysed by using descriptive and inferential statistics. Descriptive statistics include percentage, mean and standard deviation whereas inferential statistics include Pearson correlation. Questionnaire contains 82 statements. All items were measured on likert scale ranging from 5(strongly agree) to (strongly disagree). Statistical Techniques SPSS for windows8. program was used to analyse the data obtained by the questionnaire survey. Reliability of the questionnaire was checked after that descriptive statistics was applied and then correlation was used to check the interrelationship among the employee retention strategies. V. RESULTS AND DISCUSSION This section discusses the results generated from the statistical tool (SPSS) used. This section shows important reliability statistics, descriptive statistics and correlation test results. Data analysis reveals a good acceptable range of reliability. Table shows the results of reliability statistics, table 2 shows descriptive statistics and table 3 shows correlation analysis among employee retention strategies. Table : Reliability Statistics Cronbach's Alpha N of Items Table shows the Reliability statistics of the questionnaire which has been checked through cronbach alpha. The reliability comes out to be.83 of 82 items were considered reliable and accepted. Table 2: Descriptive Statistics Communica tion Effectivenes s Training and developmen t Reward and Recognition and Benefit Idea and Suggestion Source: Survey data From the table no 2 it is evident that the maximum focus for employee retention strategies was given to training and development strategy followed by orientation strategy, employee ideas and suggestion strategy, communication effectiveness strategy, management strategy, employee and benefit strategy, employee ideas and suggestion strategy. Reward and recognition strategy has been considered as least adopted strategy by the organisations on the basis of perception of the employees and managers considered in the sample. The result of standard deviation shows that the variation in the responses toward employee idea and suggestion strategy is highest among all strategies whereas of management strategy is least. Retention Strategies N Mean obtain ed Mean maxim um Std. Deviati on Percent age Ra nk Managemen t Orientation /Copyright 25, IJRMST, April 25 98`
4 International Journal of Research in Management, Science & Technology (E-ISSN: ) Vol. 3, No. 2, April 25 Table 3: Correlation between Retention Strategies Retention Strategies Management Orientatio n Communic ation Effectivenes Training and Development Reward and Recognition and Benefit Idea and Suggestion Management s Orientation.36** (.) Communication.448** (.).233* (.2) Effectiveness Training and.5 (.35).34 (.84).7 (.248) Development Reward and.648** (.).273** (.6).334** (.).32 (.9) Recognition and.628** (.).34* (.).59** (.).95 (.5).586** (.) Benefit strategy Idea.25 (.3).2 (.229).485** (.).7 (.245).24* (.42).22* (.27) and Suggestion Values in the parenthesis show the p values. **. Correlation is significant at. level (2 tailed) *. Correlation is significant at.5 level (2 tailed) Source: Survey Data /Copyright 25, IJRMST, April 25 99`
5 International Journal of Research in Management, Science & Technology (E-ISSN: ) Vol. 3, No. 2, April 25 The results of table 3 depicts that management strategy is significantly correlated with all other strategy except for training and development strategy. The results also shows that reward and recognition strategy is highly correlated (r=.648**). Secondly orientation strategy is positively and highly correlated with management strategy(r=.36**) and it is correlated with all other strategies at % level of significance except communication strategy which is at 5%level of significance. The result shows that orientation strategy is not correlated with training and development strategy. Thirdly communication effectiveness strategy is correlated with all other strategy at% level of significance except training and development strategy. It can be said that employee benefit strategy is highly and positively correlated with communication effectiveness where (r=.59**). Fourthly training and development is not correlated significantly with all other strategies. Fifthly reward and recognition strategy is significantly correlated with all other strategy except training and development and highly correlated with management strategy. Sixthly employee and benefit strategy is significantly correlated with all other strategies except training and development strategy and management strategy is highly correlated with employee benefit strategy. idea and suggestion strategy is correlated at 5% level of significance. Lastly employee idea and suggestion strategy is significantly correlated with all other strategy except training and development and orientation strategy and highly correlated with communication effectiveness strategy. The overall results of the study shows that there is interrelationship among the employee retention strategies considered in the present study except training and development which is found to be significantly correlated with overall employee retention strategy. VI. CONCLUSION The purpose of the study was to investigate the interrelationship among employee retention strategies adopted by corporate sector. Review of literature provided a strong evidence of the relationship among employee relationship strategies. Empirical review showed that in order to do better work in organization in retaining employees they should understand and apply employee retention strategies to facilitate measures in keeping valuable employees.the study used a sample of respondents. The study found that orientation strategy is found to be significantly and positively correlated with all other strategies. From the mean obtained it is observed that main focus is to training and development strategy. So corporate sector should take steps to retain their best employees. REFERENCES [] Ahmad, R., Yei, E. T. P. & Bujang, S. (23) Relationship between type of benefit (leave, loan and retirement plan) and employee retention. International journal of education and research, (8), -4. [2] Akila, R. (22). A study on employee retention among executives at BGR energy system Ltd. Chennai. International Journal of marketing, financial services & management research, (9), 8-32 [3] Holtbrugge, D., Friedmann, C. B., & Puck, J. F. (2). Recruitment and retention in foreign firms in India: A resource based view. Special issue: Emerging Patterns of HRM in the New Indian Economic Environment, 49, [4] Hassan, M. et. al. (2). retention as a challenge in leather industry. Global journal of human social science, (), 8-4. [5] Khatri, N., Fern, C. H. & Budhwar, P. (2). Explaining employee turnover in an Asian context. Human resource management journal, (), [6] Kwenin, D.O. (23). Relationship between work environment, Career development opportunities and employee retention in Vodafone Ghana limited. Global journal of human resource management,(4), -9. [7] Maluti, L., warentho, T. & Shiundu, J. (22). Impact of employee commitment on Retention in financial corporation in Kenya. International journal of business and public Management, 2(2), [8] Mello, J. A. (27). Strategic Human Resource Management. 2 nd Edition, India: Cengage South Western. [9] Punia, B. K & Sharma, P. (28). s perspective on human resource procurement practices as a retention tool in Indian It sector. Vision the journal of business perspective, 2, [] Sanda, A., & Ntsiful,A. (23). Dynamics of employee retention among SMEs in developing economy.in: Proceedings of the International conference on Business Administration, Marketing and Economics, [] Sheridan, J., (992). Organizational Culture and Retention. The Academy of Management journal, 35(5), [2] Sinha, D. & Sinha, S. (28). Talent retention in academics: A case study on management institutes of Lucknow affiliated /Copyright 25, IJRMST, April 25 2`
6 International Journal of Research in Management, Science & Technology (E-ISSN: ) Vol. 3, No. 2, April 25 to U.P technical university, 8(), -9, Available at www. sherwoodindia.in on [3] Zachariah, M. & Roopa, T.N. (22). A study on employee retention factors influencing IT professionals of Indian IT companies in India. Interdisciplinary journal of contemporary research in business,4(7), /Copyright 25, IJRMST, April 25 2`
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