Abstract
Employee Retention is considered to be a major concern any industry where the employee turnover rate tends to be higher. When it comes to the Information Technology (IT) industry (where in Sri Lanka or at global level), there is a visible trend in the employee turnover when compared to the other industries. More specifically, the employee turnover of IT industry employ has been identified as a crucial issue in the Asian context including Sri Lanka. The main purpose of this paper is to identify the impact of some selected employee retention factors on employees’ intention to stay within the IT companies of the Colombo Suburbs, Sri Lanka. A model was designed and the hypotheses were empirically tested from data collected through a survey. Correlation and multiple regression analysis were carried out to test the association and the degree of impact of the selected employee retention factors on Employees’ intention to stay. The analysis results indicated that all the three independent variables (Employee Career Progression, Organizational Culture, and Flexible Working Hours) are positively associated with the dependent variable. The findings of this research also indicate that, career progression and flexible working hours has a high degree of impact on employees’ intention to stay where the organizational culture has only a negligible impact on the employees’ intention to stay. The research results will have implications for any IT organization operating within the Colombo Suburbs. This research also opens up new opportunities for academicians in studying cross-linkages among the various key factors identified by the study.
Highlights
Effective employee retention is a systematic effort made by employers to create and foster an environment that encourages employees to remain employed in the current organization
The majority of the respondents around 44.95% were between the age category of 27- 30 years and the minority of 4.89% were within the age category of 37- 40 years. 35.5% of the total sample were between the age category of 31- 33 years and only 14.6% of the total sample were between 34- 36 years of age
The results showed that as the, employee career progression followed by flexible work hours and organizational culture respectively which is supported by diminishing B values for each variable
Summary
Effective employee retention is a systematic effort made by employers to create and foster an environment that encourages employees to remain employed in the current organization. The outburst of the concept of employee turnover which is known as the lack of employee’s intention to stay, has created a new perspective for the companies especially in the IT industry to search for new and better ways to retain their best talent without letting them go into the hands of the rivals. Sri Lanka’s ICT workforce has grown by 42,019 employees since the last project of 82,854 in 2014 to reach 124,873 in 2018. This implies 50.7 % growth during the period concerned at Compound Annual Growth Rate (CAGR) of 10.8% (LBO, 2019). The IT industry employee turnover rate from 2013 to 2018 is at 23%(Florentine, 2019)
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