Analyzing the Role of Retention Measures in the Determination of Voluntary Turnover Intentions of Software Professionals in India

Abstract

Background/Objectives: Job Hopping is the current trend in the IT industry. Employers frame several retention measures to retain their valuable resources. In spite of all efforts made by employers, voluntary turnover of employees continues at an alarming rate. The purpose of this study was to understand the role that retention measures by means of better salary, better benefits etc exhibit on voluntary exit of employees from the software companies’. It also aims to verify the relationship between antecedent factors of retention and voluntary turnover intent. Methods/Statistical Analysis: A Pilot Study with 50 respondents was conducted to understand the feasibility of the research. Later the study was done with a larger group of respondents. Well-structured questionnaires were circulated to 983 respondents. 961 returned the questionnaire. 14 were rejected on account of inadequate data. Thus, the sample size chosen for the study was 947. The validity, reliability and analysis of data was analyzed using Statistical Package for Social Sciences (SPSS v 21.0) Respondents were asked to give their opinions on the various statements on the questionnaire that was based on Likert type. Responses to the statements measuring the independent variables were submitted to a Factor Analysis. Exploratory factor analysis was done independently for the various factors of retention. Multiple regression analysis was conducted to identify the role that Retention measures exhibit on voluntary turnover in Software industry. Findings: Major findings of the study include: Positive significant correlation was observed between Pay and Retention (r = 0.534) and training and development and Retention (r = 0.303), which is significant. Significant correlation was also observed between Leadership and Retention (r = 0.495), which is positive. Applications: This research has thrown considerable light on the role that is played by the various retention measures in determining the voluntary turnover intentions of Software professionals. Previous researches have studied both employee retention as well as attrition separately. But no significant studies were made that brought out the impact of the retention measures in determining voluntary turnover intentions.