FACTORS INFLUENCING EMPLOYEE RETENTION AT ABC IT COMPANY IN COLOMBO

Abstract

Retention of employees has been a substantial research subject from early twentieth century. Continuing prosperity of organizations largely relies on the retention of their best employees because, employees are the key asset of any organization. As we are in a competitive world, it is essential that organizations know their ways to keep employees retained for a longer period within the organization and invest time and money in their development. While companies struggling everywhere to combat turnover issues to retain their employees, turnover rate in IT industry is also at a higher level. According to surveys, software developers were the most required specialists in 2021 and turnover for developers are still alarmingly high. This research is based on finding the factors that impact employee retention at ABC IT Company because, even though the ABC Company has focused on employee retention, their turnover rate has been increasing subsequently for last three years, recording a turnover rate of 13% in this year. This study empirically evaluated four independent variables which include Leadership Style, Work-life Balance, Compensation and Benefits, Training and Opportunity for Growth and their impact on the dependent variable employee retention at ABC IT Company. The researcher used a mixed methodology and in order to gather data a questionnaire was prepared and administered among 55 permanent employees and 48 responses were received as the research needed. The researcher argued that the factors such as leadership style, work-life balance, compensation and benefits and training and opportunity for growth were related to the employee retention of the Company. After the data collection, analysis was conducted using IBM SPSS software and specific analysis techniques were used to analyze each element of the questionnaire, starting from validity and reliability testing of the questions, descriptive statistics, normality test, linearity test, correlation coefficient and regression analysis respectively. Both regression and correlation coefficient analysis were used to measure the impact and the relationship between independent and dependent variables which assisted the researcher in developing recommendations and concluding this research that detailed in chapter five of the study.