The Impact of Employee Retention Strategies on Fast-Moving Consumer Goods Manufacturers in India: An Analysis using AMO Model and ANOVA

Abstract

Employee retention is crucial for companies in many industries, including FMCG. This study examines how employee retention methods affect work satisfaction and their complexity. This study uses the AMO model (abilities, motivation, and opportunity) to analyze employee retention and satisfaction. ANOVA is also used to assess the importance of different factors in employee retention. The study found five categories of factors: incidental, hygienic, secondary, primary, and vital. Incidental factors include employee participation, open communication, and continual training. Hygiene Factors include work-life balance, welfare, and incentives. Secondary variables can drive people, including rewards, teamwork, leadership, and positive work culture. A pleasant work environment, continuous performance feedback, and public recognition of accomplishments encourage employees. Competitive salary, career progression, job security, and promotion are crucial factors. The data shows that Secondary Motivational and Hygiene Factors affect employee retention the most. Rewards, teamwork, communication, and work-life balance are considerations. Incidental and Quintessential Factors also help retain employees, although Primary Motivational Factors do less. The study also explores how organization size affects employee retention. Large companies retain workers better than mid-sized ones. This may be because larger companies have more resources and better retention practices. Finally, this study shows the intricate relationship between employee motivation, satisfaction, and retention. It emphasizes the necessity of addressing cleanliness and primary and secondary motivators to encourage and satisfy employees. The findings can help FMCG and other companies improve staff retention.