The Study of Impacts of Employee Retention on Indian it Industry

Abstract

Information technology is not just one of the fastest growing industries in India but it also plays a
major role in driving the nation’s economy onto a positive growth curve and has highly contributed in
changing India’s image from a sluggish developing economy to a global leader in technology on
which many countries can rely for world class technology solutions. With a highly competitive market
and a big requirement of IT professional it becomes very important for an organization to retain their
best talent to main the sustainability and productivity of the organization. It is not only important to
have the best and the most talented employees but it is equally necessary to be able to retain them for
long period of time. Employee Retention is one of the key challenges faced by IT Organizations in
India. It has been observed that there is a great demand for skilled IT professionals within India and
abroad. The IT Organizations in today’s context cannot afford to lose their critical workforce due to
uncertainty of changing economy, increasing competition and scarcity of skilled workforce as this
would in turn affect their bottom lines drastically. This created the need for designing effective
retention strategies. The growth and success of any organization depends on its employees. When an
employee leaves, it takes approximately eight weeks for this position to be replaced and in the
meantime, productivity suffers. The purpose of this paper is to review the findings of research papers
of various authors to derive and understand the various factors that affect the employee retention and
different employee retention strategies that are adopted by organizations to retain its employees.

Keywords: Employee retention, IT Industry, Retention Factors.