A Study On Employee Retention Practices And Its Effectiveness In IT Sector



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A Study On Employee Retention Practices And Its Effectiveness In IT Sector Submitted in the partial fulfilment of the requirement for the degree of Masters of Philosophy By Neenu Antony (Roll No: 0930009) Under the guidance of Dr. Jeevananda.S. Assistant Professor Institute of Management Institute of Management Christ University. Bangalore

2009-2010 DECLARATION I Neenu Antony. Hereby declare that the dissertation entitled A study on employee retention practices and its effectiveness in IT sector Christ University in partial fulfilment of Masters of Philosophy in Management is a record of original and independent research work done by me during 2009-2010 under the guidance of Dr. Jeevananda.S. Department of Management, Christ University and it has not formed the basis for the award of any Degree/ Diploma/ Associate ship/ fellowship or other similar title to any candidate of any university. Date: Signature of candidate.

CERTIFICATE This is to certify that the dissertation entitled A study on employee retention practices and its effectiveness in IT sector submitted to Christ University in partial fulfilment of requirement for the award of the degree of Masters of Philosophy in Management is a record of original research work done by Ms. Neenu Antony during the period 2009-2010 of her study in department of management at Christ University, Bangalore, under my supervision and guidance and the dissertation has not formed the basis for the award of any Degree/ Diploma/ Associate Ship/ Fellowship or other similar title to any candidate of any university. Date: Signature of Guide Dr. Jeevananda.S.

APPROVAL OF DISSERTATION The dissertation entitled A study on employee retention practices and its effectiveness in IT sector by Ms. Neenu Antony is approved for the degree of Masters of Philosophy in Management. Examiners: 1. 2. 3. Chairman: (Seal) Date: Place:

ACKNOWLEDGEMENT During the period of the study, I received help from many people directly and indirectly. I am taking this opportunity to express my heart- felt gratitude to each and every one of them individually. I owe my sincere thanks to Rev.Fr.Thomas C Mathew, Principal Christ University for providing me with this opportunity. I express my gratitude to Dr. Jeevananda.S. My guide, faculty Institute of Management for his guidance and support. I express my sincere thanks to Fr. Thomas T.V, Director, Institute of Management, Dr. Harold Andrew Patrick, Christ University Institute of Management for their support throughout the entire programme.

I hereby express my deep gratitude to the employees of IT Sector for taking their time out in helping me to collect data through the questionnaire. NEENU ANTONY CONTENTS PARTICULARS PAGE NO: CHAPTER 1: INTRODUCTION 3 16 CHAPTER 2: REVIEW OF LITERATURE 18-26

CHAPTER 3: RESEARCH METHODOLOGY 28 38 CHAPTER 4: DATA COLLECTION & ANALYSIS 40 52 CHAPTER 5: FINDINGS, SUGGESTIONS, CONCLUSION AND SCOPE. 54 56 BIBLIOGRAPHY 58 59 ANNEXURE 61 64 TABLE CONTENTS TABLE PARTICULAR PAGE NO: Table 1.1 Top seven IT hubs in India 9 Table 1.2 India s IT Sector 10 Table 2.1 HR Challenges Table 19 20 Table 3.1 Gender frequency table 31 Table 3.2 Age frequency table 32 Table 3.3 Marital status frequency table 33 Table 3.4 Qualification frequency table 34 Table 3.5 Designation frequency table 35 Table 3.6 Experience in current position frequency table 36 Table 3.7 No: of organization worked frequency table 37 Table 4.1 Retention strategy availability 40 Table 4.2 Benefits availability 41

Table 4.3 Factor analysis 42 Table 4.4 Correlation table 48 Table 4.5 Multiple regression analysis 50 Table 4.6 Coefficient table 51 Table 4.7 Reliability table 52 Table 4.8 Cronbach alpha value 52 CHARTS CONTENTS CHART NO: PARTICULARS PAGE NO: Chart 3.1 Gender percentage 31 Chart 3.2 Age percentage 32 Chart 3.3 Marital status percentage 33 Chart 3.4 Qualification percentage 34 Chart 3.5 Designation percentage 35 Chart 3.6 Experience percentage 36 Chart 3.7 Organization worked percentage 37 Chart 4.1 Elements of retention strategy 40 Chart 4.2 Elements of benefits 41 Chart 4.3 Factor analysis graph 43 Chart 4.4 Factor 1 graph 43 Chart 4.5 Factor 2 graph 44 Chart 4.6 Factor 3 graph 44 Chart 4.7 Factor 4 graph 45 Chart 4.8 Factor 5 graph 45 Chart 4.9 Correlation recommend graph 49