Empirical Study


An empirical study on employee job retention in Indian IT industry: A case Study of Yash Technologies Pvt. Ltd.



Murty (2004) identifies three categories of employees. The first category of the employees are those who would need to be retained until further notice. The second category of the employees are those who are critical to the organisation in the short run. Finally, the third category of the employees are those who are easily replaceable.


Lockwood (2006, p. 2) defines retention as “the execution of incorporated strategies or systems designed to enhance workplace productivity by extending improved processes for attracting, developing, retaining, and utilizing people with the requisite skills and aptitude to meet up existing and future business needs”.


Murthy (2004) identifies three categories of employees, those who need to save indefinitely, and those essential to the organization short term and those that are easily replaceable. Following the identification of these recruitments, any organization can easily customize their strategy for retention to promote institutional loyalty of employees. Those who belong to the first class in was offered a lucrative compensation plan and plans that affect long-term positive. Those who are critical to the organization in the short term, there will be those whose bid will be lower in the short term or those who will be crucial for any project that requires completion in the short term (Murthy, 2004). The preservation of these critical skills will require proposals that shine in the short term. The third category of employees who are easily replaceable, are the least priority for conservation, they may be offered a voluntary organization.

It will be much more important in coming years to recognize the commitment of individuals in the organization and the need for organizations to create conditions under which they would be willing to host (Harris, 2000). The consequences of excessive turnover in organizations, it was found that gave rise to far reaching consequences, even to the extent that undermine efforts to achieve organizational goals (Abbasi and Hollman, 2000). Abbassi and Hollman (2000) also suggest that when an organization loses a critical employee, there is a negative impact on innovation and long delays in delivering services to customers, thus affecting the profitability of the organization. Haley (1998) studied the cost of labor to be 50 to 60 percent in the first year's salary of the employee and up to 100 percent for certain highly specialized positions qualified. Fitz-Enz (1997) showed that the combination of direct and indirect costs, total cost of employee turnover is a minimum payment of one year and profits, or a maximum of two years' salary and benefits. The organization must also bear the costs of preparing a new set of decrease in the loss of personnel. As the American Management Association, the cost of replacing staff is about 30 per cent of his annual salary. The direct costs of sales might include separation costs (including allowances, the cost of the exit interview, outplacement fees, etc.), and replacement costs (including costs of hiring, procurement costs, time spent in the investigation, induction or orientation and training costs, etc..) Indirect costs of losing an employee including lost productivity (due to loss of productive employees and reduce the productivity of new employees until they are fully trained) and new competitive pressures at the expense of performers lose High potential competitor, the company has lost sales and lost customers following the departure of experienced staff.

The first step towards the effective maintenance is the recognition that the movement of labor is governed not only the organization but also on the market. Rapidly changing markets require that organizations that are fast constantly updated with new talent. No company can protect its employees about the exciting opportunities opened their recruiters aggressive market (Murthy, 2004). Strategies for keeping any organization seeks to increase interest in work, which would lead to pleasure, which in turn leads to motivation. Job satisfaction is an important motivator for employee performance . It has been recognized relating to turnover and productivity of information professionals (Igbaria and Guimaraes, 1993). Blankertz and Robinson (1996) showed that employees with high job satisfaction are highly motivated and have little desire to leave their jobs. The productivity of staff motivation and retention of staff performance can be attributed to factors such as wages and competitive benefits, good working conditions, advancement and growth opportunities, etc. employee productivity can thus be classified depending on how these employees.

Understanding the various aspects of the work, which may increase the satisfaction, or at least reduce the discontent is the first step towards developing a strategy for retaining qualified staff. This enables organizations to determine what their employees do not like their work and working conditions. After identifying these areas, organizations can take to improve employee satisfaction in tandem with personnel problems, which in turn will have a direct impact on their level of motivation. Satisfaction and increase the likelihood that organizations are able to retain staff that staff will be happy to be less inclined to seek other employment.

In many large organizations, recruitment and human resource retention strategies revolve around creating a competitive compensation and benefits. However, small businesses to consider inviting the top talent is a lost cause for them, because they can not offer competitive compensation packages they offer big brother (Raj, 2004). Well known companies such as Top catches include this feature of the organization that their competitors can easily copy the most money (Brannick, 2001). Non-monetary policies are also widely used by companies to retain top talent. However, organizations need to develop an optimal mix of monetary and non monetary indicators in the conservation strategy, based on several factors including the nature of work, conditions of supply and demand for specific skill sets and solvency of the organization. In addition, as suggested by empirical research, the relationship between employees and their organization can be supported by a number of factors, including the scope of employment, objective, professional commitment, professional commitment and job satisfaction, leading to organizational commitment, which in turn is considered desirable trait, because it seems to lead to lower turnover and contributes to increased productivity.

IT organizations are required to take account of individual training needs of staff and their solutions through the creation of appropriate training opportunities for them (Kodwani and Kumar, 2004). Realizing that employees have certain career needs, organizations must not only chart the different careers in compliance with these requirements, but also to make these means are known to all employees. In addition, the promotion of routes within the organization must also be disclosed. The opening should be the hallmark of an effective organization in this area (Pattanayak, 2001). These internal factors of motivation can help organizations keep hold of their potential quality employees.


Hyper competitive business environment of India there intensification of the struggle for knowledge workers, the key to productivity is based on developing ways to engage the performers in key organization. This becomes more relevant in the Indian IT industry, which adopted a modern corporate culture, the rapid career growth, and opened a few jobs, so a steady growth of mobility among professionals in India. The trends of staff turnover, voluntary and involuntary, have identified the Indian IT organizations in the vital question of who it is. To fight against the turnover as a strategic interest in maintaining good strategy should provide a dual aspirations of employees and, simultaneously, increase their productivity.

The problem of retention has become even more pronounced in the Indian IT industry, in conjunction with the increased mobility of IT professionals in India. IT industry in India has always experienced a volatile and demand equation. New Horizons careers in industry, multiplied by the prospects of mobility for professionals from different companies and a growing number of these employees do not want to spend their careers with the same employer or occupation. Retention strategies for the performance of the industry under consideration, because of their great diversity. In this industry, the boom witnessed the Twin Force is tempting talent competitors on the one hand, and preservation of key professionals on the other. Finally, the restaurant industry has seen the lavish spending of IT companies in India to retain principal performers are replaced by intelligent costs and focus on creating a lasting relationship between employer and employees. Hence, the purpose of this research will be to bring to light the trendy measures to retain IT professionals in Indian IT industry . The purpose of the research is to examine the different strategies of retention of IT professionals in Yash Technologies Pvt. Ltd.


• Why do IT professionals switch jobs?
• What are the benefits offered by IT companies for retaining these employees?
• What criteria does an IT company apply to lay-off vis-a-vis retention of employees?


Competitive advantages of India, in comparison with other countries is the subject of transnational corporations for their operations background. To begin, the skilled labor abundant countries gives an advantage on the IT. About 100,000 engineers graduate from India every year. Many of these engineers work with the IT industry for troubleshooting and technical support (AT Kerney, 2007). India has the largest English-speaking talent in the world holders of an engineering degree, graduates in other disciplines, and doctoral students. Three fifths of the technical staff in India over four years experience (Panday and Bali, 2006, p. 20). Global Services Location Index (2007), quoted in AT Kerney Report (2007) argues that in the overall score of computing, dominated by developing countries of Asia, India followed by China, Malaysia, Thailand and Brazil. To obtain a final ranking at Kearney surveyed over 50 countries on various aspects related to offshore service providers, such as people skills, financial attractiveness and business environment. India supports a wide, albeit slightly shrinking, lead in China, confirming that the investigation into the heads and industrial visits found. While compensation costs in India rose due to the high rate of recent economic growth, these costs were borne by the escalation of a concomitant increase in skill supply and quality indicators of the Global Consultation . Although India ranks high overall, mainly because of less-skilled and technically superior pool of manpower, it suffers from two other parameters, the financial ratings of attractiveness and business environment. In terms of people skills India ranks second after the United States (the tier II cities) but ahead of China and Germany. As for the rating of the business environment, India is below 34. When it comes to the question of profitability, Vietnam, with a cost of telecommunications lowest in the world, tops the list while India ranks sixth. Meanwhile, McMillan (2006, p. 240) indicated that the United States accounted for 59 percent of total global investments in the Indian It , legal, logistics and customer segments. Finally, the Asia-Pacific should be 15 percent, the fastest growing areas, including personnel, technology, finance, accounting and procurement. While NASSCOM (2006) indicates that the IT sector accounted for 4.8 percent of GDP in 2006 and achieving the goal of $ 60 billion in exports in 2010. On the other hand, she said ICRA, employee Moody's Investors Service said that the Indian IT industry will benefit from the continued trend of outsourcing by global corporations of their business processes, services for the country developing, as well as domestic IT sector should reach 10 billion by 2006-2007, from 7.2 billion in 2005-2006, an increase of nearly 39 per cent (PTI, 2006 ). The report also stated that according to the growth of this sector, demand for labor is also expected to increase to approximately 1.4 million in 2010. The continued strong growth in the IT sector would require the industry to attract additional 0.5 million people for the duration of their data, "she said. Dispelling fears the reaction of outsourcing from developed countries, the study indicates that in the long term, outsourcing from developed countries may lead to the creation of new jobs in occupations that require skill levels, the rising real wages, and provide significant economic benefits.


According to the NASSCOM Strategic Review (2006), India to take full advantage of opportunities to support and disproportionate impact in the global division of space, it is necessary to focus on improving the advantage of the talent - to concentrate on the skills needed to take better advantage of the world's largest population of working in particular. According to Budhwar et al (2006), India is expected to achieve revenues of $ 148 billion in 2012, the industry requires the direct recruitment of over 3.7 million employees. Recruitment becomes a source of anxiety, attrition in this sector creates the problem of the involvement of employees in this sector. Although India has a lot of talent, not the industry is ready or not has the skills necessary to become useful for business. This means that even if there are many proposals at the primary level (voice process), there are huge gaps in the management of middle and senior management. This has led to increased poaching and depletion cases. Currently, the average decline experienced by this industry is around 30-35 percent (Phukan, 2007). Depletion is stabilized in the IT field, if it takes three or four years. For IT-center in the outskirts of Bangalore, it could be about 35-40 percent (Sen, 2007). Remarkably, the outcome of this research will help out Yash Technologies Pvt. Ltd to retain potential employees for exploiting the projected opportunities in Banglore based Indian IT industry.


Research Approach

The approach of a research is deductive and deductive (Saunders et al, 2005). Deductive approach originates from broad-spectrum ideas in the forms of theory, laws, and principles and based on them, a researcher develop definite hypotheses which can be tested for substantiating the broad-spectrum ideas. If the hypothesis is substantiated, he/she would like to articulate that the initial broad-spectrum idea was certainly truthful. Besides, inductive approach originates from explicit things such as observations of individual cases. Based on the accretion of such observation, a researcher would like to construct a broad-spectrum idea on that observation. Inductive approach is generally compared to what detectives are proceeding (Saunders et al, 2005). For this research, the researcher proposes to examine an individual case and develop a broad-spectrum idea. More clearly, the examination of individual case is studying employee job retention in Yash Technologies Pvt. Ltd, and further developing broad-spectrum idea is employee job retention in Indian IT industry.

Research Strategy

The specific research strategies are described as phenomenological, grounded theory and case study. A phenomenological research illuminates the meaning for quite a few individuals of their lived experiences of a notion of a phenomenon. Phenomenological research focuses on detailing what all participants have in common as they understand a phenomenon (Creswell, 2002). Besides, the intent of grounded theory research is to move away from narrative and to create or find out a theory, an abstract analytical proposal of a process, action or interaction. Participants in the research would all have experienced the process, and the development of the theory may assist enlighten practice or present a framework for further research (Creswell, 2002). Finally, case study research entails studying of an issue explored in the course of one or more cases within an enclosed system such as a setting, a context. In fact case study research is a strategy of examination, a methodology, or a comprehensive research strategy (Yin, 2003).For this research, the research strategy is proposed to be applied as case study research, where the purpose will be to studying issue in the form of employee retention in Indian IT industry, with one case of Yash Technologies Pvt. Ltd. As a case study research, empirical data will be collected exclusively from the selected case study company- Yash Technologies Pvt. Ltd.


Most often sampling techniques are described as random sampling and convenience sampling. In random sampling, every member of the population has an equivalent and acknowledged chance of being chosen. Besides in convenience sampling, the sample is chosen since they are convenient (Saunders et al, 2005). For this research, sample will be selected through random sampling technique, where the researcher will approach the professionals working in Yash Technologies Pvt. Ltd randomly. Therefore, every professional working in the company will equal chance to be chosen for the research.

Data Collection

For this research, data will be collected in both secondary and primary form. The collected secondary and primary data will be complementary to each other. Secondary data in this research will be exclusively in literature review form. The sources of secondary data will be books, journals and published reports regarding employee attrition and retention of employees in Indian IT industry.

Besides, primary data will be collected in this research through questionnaire. This is because this method of primary data collection in not only most common but convenient to be administered. The designed questionnaire will be given to the chosen professionals Yash Technologies Pvt. Ltd. The respondents will be small in number and will be decided later.

Data Analysis

For this research, data will be analysed using qualitative analysis method. The forms of qualitative data analysis are thematic and content analysis (Saunders et al, 2005). In this research, content data analysis method will be used. Using this method the researcher will systematically work in the course of each transcript assigning codes, which possibly will be numbers or words, to explicit characteristics within the text. The researcher will already have a list of categories or possibly will read all the way through each transcript and let the categories come out from the data.

Validity and Reliability

In spite of the various positives of a case study research, its reliability and validity remain under clod (Yin, 2003). Therefore, addressing and ensuring the validity and reliability of qualitative data in this research will be of vital importance to settle on the stability and quality of the data obtained approaching professionals in Yash Technologies Pvt. Ltd.

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