Factor Affecting Employee Turnover and Sound Retention Strategies in Business Organization

FACTOR AFFECTING EMPLOYEE TURNOVER AND
SOUND RETENTION STRATEGIES IN BUSINESS

ORGANIZATION
DISSERTATION ON
Submitted to the Uttaranchal University in partial fulfillment of the requirements for the
award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
DIKSHA BISHT
(Enrollment No.: UU1919000027)
Under the Guidance of
DR. BABITA RAWAT

(Associate Professor)
(BATCH : 2019-21)
UTTARANCHAL INSTITUTE OF MANAGEMENT
UTTARANCHAL UNIVERSITY, DEHRADUN

Faculty of Management and Business Studies
Uttaranchal University
Dehradun
CANDIDATE’S DECLARATION
I, DIKSHA BISHT here by declare that the Dissertation, entitled “FACTOR AFFECTING
EMPLOYEE TURNOVER AND SOUND RETENTION STRATEGIES IN BUSINESS
ORGANIZATION ”, submitted to the Uttaranchal University, Dehradun in partial
fulfillment of the requirements for the award of the Degree of Master of Business
Administration is a record of original research work under gone by me under the supervision
and guidance of Dr. Babita Rawat Faculty of Management and Business Studies,
Uttaranchal University ,and it has not formed the basis for the award of any
Degree/Fellowship or other similar title to any candidate of any University/Institution.
Date:
This is to certify that the statement made by the candidate is true to the best of my
knowledge and belief.
Signature of Guide
Date: Dr. Babita Rawat
Countersigned
Dean
ii
ACKNOWLEDGEMENT
It is indeed a great pleasure to express my thanks & gratitude to all those people who helped me
during my dissertation. This project would not have been materialized without the help from my
quarters.
I am thankful to Dr. Babita Rawat, faculty management at Uttaranchal University, Dehradun for his
gratitude during my Dissertation and giving me full co-operation and also valuable information and
guidance, without which it would not be possible for me to complete the manuscript.
I express a deep sense of gratitude to respected faculty member and my class mates for their valuable
contribution and suggestions. Their guidance suggestion & expertise have been a source of inspiration
& were very helpful to me during my Dissertation.
iii
ABSTRACT
“Employee turnover” as an expression is broadly used in business organization. Despite the

fact that several studies have been performed on this topic, little research has been conducted
on examining the causes and leading factors of turnover as well, as advising some feasible
approaches, which can be applied by bosses to ensure that employees will continue in their
respective organizations to enhance organizational effectiveness and productivity. The main
purpose of this study is to determine the reasons and key factors in the perspectives of the
relevant literature and identify to the intention of employee turnover. This dissertation also
suggests various possible strategies on how to minimize the turnover and retain employees in
the organizations. Hence, the dissertation has proposed a conceptual framework that shows
the major variables in explaining the phenomenon of employee turnover and addressing
sound retention strategies to handle these issues.
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CONTENTS
TITLE PAGE NO.

Title Page --
Candidate Declaration (i)
Acknowledgement (ii)
Table of Contents (iii)
Chapter 1: INTRODUCTION 1
Chapter 2: REVIEW OF LITERATURE 15
Chapter 3: RESEARCH METHODOLOGY 21
Chapter 4: DATA ANALYSIS & INTERPRETATION 25
Chapter 5: FINDINGS,SUGGESTIONS & CONCLUSION 52
BIBLIOGRAPHY 56
Annexure: 63
(a) Questionnaire (if any)
(b) Any other relevant Information/Documents
v
CHAPTER 1
i
INTRODUCTION
1
CHAPTER 1 i
INTRODUCTION
In the period of globalization, it has been respected to be a major question to manage

representative turnover for any business association. State representative turnover as a
significant issue, especially in the space of human asset the executives. To satisfy the
fundamental necessities and give a decent work space, great compensation and different
advantages in a financial methodology is very complex and difficult to an association. Each
business wants to build the usefulness and diminish turnover, consequently prompting be
beneficial. Representative turnover management is a commitment to accomplish authoritative
objectives successfully. Be that as it may, high turnover would acquire pulverization to the
business the type of both immediate and circuitous expenses. Direct expenses are alluded to
expenses like costs on enlistment, determination, direction, workshop and preparing for the
new representatives. Roundabout expenses are demonstrated to spending on instruction,
consolidated self-assurance, weight on the current specialist and the breakdown of social
capital. In addition, high representative turnover will put in danger on arriving at the
authoritative objective. To battle the difficulties in the vicious business world, the executives
has considered worker turnover as a significant concern and started a few measures to hold
them in the associations.
Nonetheless, because of the less consideration, top administration doesn't focus on this
significant issue. They are maybe minimal equipped for understanding the circumstances
about how worker turnover detrimentally affects the efficiency of the association. Thusly, it
is more important to direct the examination on worker turnover to help business associations
by distinguishing their issues, investigating the data and suggesting potential arrangements in
ongoing time. The reason for this examination, thusly, is to discover the different causes and
compelling components of worker turnover in business association. This investigation
likewise investigates some strong maintenance techniques on how an association can hold
representatives and limit the pace of turnover. In light of past investigations, this exploration
has been performed broadly and universally to reveal an assortment of variables in
connection with representative turnover influencing the business for their usefulness.
As per Saunders et al. (2007), "A reasonable structure demonstrates how the scientist sees the
idea associated with an investigation, particularly the relationship among ideas". It can
2
manage research by giving a representation of hypothetical develops and factors of interest.
Planning an applied model starts with leading a careful audit of the writing. Peerreviewed
diary articles, books/monographs, meeting papers, proposals/theses and other important
references have examined for leading this examination. In this manner, scientists have
fostered an applied system dependent on the causes and affecting elements of worker
turnover, just as strong maintenance techniques for limiting representative turnover.
In this consistently changing climate that isn't just influencing the association yet additionally
the representatives working in it, Human Resources Management has an imperative task to
carry out in dealing with the association assets and how workers are treated in the association
(Hassan et al., 2011). Workers are a significant resource for each organization, business and
association. Indeed, the accomplishment of each organization or business is totally subject to
the adequacy of its labor force (Samuel and Chipunza, 2009). A business may put a ton of
assets into its center tasks and exercises, however without an exceptionally viable human
asset, accomplishment over the long haul can't be accomplished (Ton and Huckman, 2008).
The fascination and maintenance of excellent workers is more significant today than any
other time. A quantities of patterns (globalization, expansion in information work, speeding
up pace of innovative headway) make it crucial that organizations obtain and hold human
resources. In HR setting, turnover can be seen as the rate at which a business gains and loses
workers or how long representatives will in general remain in a specific association. Turnover
is estimated for singular organizations and for their industry as entire (Turner, 2010)
There are a few different ways through which an organization or business may improve the
adequacy of their representatives. This can be through occasional preparing programs, steady
inspiration in the working environment, representative strengthening, advancement and extra
projects among others (Samuel and Chipunza, 2009). These systems and exercises frequently
require an organization to spend an altogether enormous measure of assets, to guarantee that
its representatives are content with their positions and work ideally to accomplish the put out
authoritative objectives and targets (Glebbeek and Bax, 2004). Nonetheless, even with the
previously mentioned endeavors, organizations actually face the steady danger of high
worker turnover rates and in this manner low representative consistency standards. These two
factors incredibly repress the accomplishment of organizations and organizations as they
deny them of their most valued resources, the workers (Ongori, 2007). Representative
turnover fundamentally implies the level of workers who inside a specific timeframe select to
3
leave the organization or business for different organizations. This powers the organization to
supplant them with new representatives at an extra expense (Tracey and Hinkin, 2008).
Numerous researchers characterized that turnover goal is the absolute best indicator of
turnover and as a vital component in examination representative conduct, and be the last
advance before the worker willful as well (Lee and Bruvold, 2003). Notwithstanding, Van
Dick et al. (2004) characterized that a representative's aim to leave is anything but a real
turnover. But at the same time it's dismissed that turnover goal is the best indicator of genuine
turnover, it imply that worker has aim to remain with associations which have a constructive
outcome to intentional turnover (Griffeth et al., 2000). At long last, turnover expectations
have validated of worker turnover to be hearty acknowledge from the greater part of
researchers (Lee and Bruvold, 2003). Along these lines, what the definition about
representative turnover goal is. A few scientists characterized that worker turnover
expectation resembles a period – burning-through measure from considering stopping, goal to
look through a new position and goal to stop or remain (Jacqueline and Milton, 2007).
Furthermore, representative turnover goal is likewise characterized as "people's own assessed
likelihood (emotional) that they are forever leaving the association eventually soon"
(Matthias and Miriam, 2011)
"Representative turnover alludes to the extent of workers who leave an association over a set
period (frequently on a year-on-year premise), communicated as a level of all out labor force
numbers" (CIPD, 2014). Armstrong (2012) characterizes workers turnover as the pace of
individuals leaving an association he affirm that turnover can be problematic and exorbitant
to the association. (Griffeth and Hom 2001) anyway characterize turnover across three
measurements Voluntary, Involuntary and Dysfunction turnover. Deliberate turnover is
started by worker while compulsory is started by the association because of a representative's
horrible showing or association rebuilding. Brokenness turnover then again can be unsafe to
the association, when elite or workers who are difficult to supplant leave the association. A
low pace of worker turnover is unavoidable in any event, when administration conditions are
practically amazing in light of the fact that a few representatives need to resign, move onto
another association, or leave for different reasons like medical affliction, demise, and
individual reasons among others (Allen et al., 2010). This degree of turnover is, nonetheless,
not antagonistic to the association. A high turnover rate, then again, impacts adversely on
both the workers and the businesses. For example, high turnover of representatives can cause
the pool of section level workers to recoil, power the utilization of impermanent workers,
4
sway contrarily on efficiency and intensity, and block abilities advancement (Long et al.,
2012).
Representative maintenance is the "exertion by a business to maintain attractive laborers in

control to meet the business targets" by keeping the perfect individuals on the right positions
(Frank et al., 2004; Hassan et al., 2011). CIPD (2014) characterize "maintenance as the
degree to which a business holds its representatives and might be estimated as the extent of
workers with a predetermined length of administration (ordinarily one year or more)
communicated as a level of generally labor force numbers" Retention is significant for an
association as it guarantees that the association keeps hold of its best representatives,
subsequently guaranteeing high usefulness. Gberevbie (2010) contended that if suitable
worker maintenance procedures are received and executed by associations, representatives
will certainly remain and work for the effective accomplishment of authoritative objectives
Sut and Chad (2011) showed that worker turnover is reason for monetary misfortunes of
association. It decreases enormously the work effectiveness. Additionally, Barak et al. (2001)
recommended that worker turnover is dread and expensive, it decreases hierarchical viability
and representative efficiency to a limited degree, and administrator should burn through more
effort and material to foster another ability to supplant the workers who forget about.
Consequently worker turnover is worth directors to focus on undetectable weight. As per
Wright and Bonett (2007), their outcomes showed that representative turnover can be isolated
to compulsory or willful. Willful turnover happens when a representative needs to leave and
at last chooses to leave association with assortment causes. It is likely the worker
acknowledged a position which has a superior treatment whether physical or profound with
an alternate organization.
Walker (2001) “identified seven factors that can enhance employee retention: compensation
i i i i i i i i i i i
and appreciation of the performed work, provision of challenging work, chances to be

i i i i i i i i i i i i i
promoted and to learn, invitational atmosphere within the organization, positive relations
with colleagues, a healthy balance between the professional and personal life, and good
communications”. Das and Baruah (2013) suggested that if these factors exist in an
organization the tendency of employee leaving the organization is reduced. “Work

environment, training and development, leadership and employee retention, promotion and
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opportunity for growth, compensation and rewards, participation in decision making, work
life balance and Job satisfaction. Kehr (2004) suggested that together all this might be taken
i i i i i i i i i i i i i i i
5
as inviting employee engagement. If the above factors are present in an organization it will
not only help to attract new employees into the organization but will also lead to the retention
i i i i i i i i i i i i i i i i i
of existing employees in the organization (Das and Baruah, 2013).

i i i i i i i i i
Causes and influencing factors i i i i
Turnover, in essence, results from job dissatisfaction for individual employee in the work
place. However, being dissatisfied in a work is not the only reason of leaving the company.
i i i i i i i i i i i i i i i i
When employees possess skills that are in demand, they are likely to be tempted by a high
salary, more benefits or better potential for career development. Consequently, it is

i i i i i i i i i i i i
sometimes necessary to understand and identify the difference between employees who are
unsatisfied, leaving the job and those who quit for other reasons. There is a variety of causes
and influential factors that result in employees’ turnover of an organization.

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Managerial factors. i i
High employee turnover is caused by the instability in the management of an organization.

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Employees are more inclined to stay and work when the organization is stable and
friendlyworking environment (Bergmann and Scarpello, 2001). The obligation of a i i i i i i i i i i
quantitative approach to managing the employees has led to disillusionment of employee and
so it directs to turnover. Because of this, managers should not apply the quantitative
approach in supervising their employees (Dress and Shaw, 2001). Approving a cost oriented
approach to labor costs increases employee turnover (Liu, Liu and Li, 2006). If managers
take steps to cut the labor turnover, it is essential to avoid all these approaches (Dobbs,
2001). Organizations could eventually reduce in size turnover unless organization has
performed as wellbalanced communication system between managers and workers (Griffeth

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and Hom, 2001).

i i
Zhang (2016) has quoted that “The participation degree of company or department decision
also positively influences the level of job satisfaction, in turn, directly or indirectly affect
turnover intention”. Employees feel satisfied about their work and stay longer in their
positions to get them involved in the organizational decision making process. For this reason,
workers should understand concerning issues that influence working environment (Khatri et
al, 2001). One argument put forward is that a high turnover of labor possibly implies poor
staffing and selection policy, poor supervisory system, weak grievance procedure and lack of
motivation. All these issues can result in high labor turnover in the sense where there have
6
been no appropriate managerial guidelines on personnel issues and, thus, employees decide
to leave the job (Lambert et al., 2001).

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Working environment i
If working environment is low-grade due to lack of all the basic facilities such as proper
lighting, working in a space with some natural light, ventilation, air conditioning system,
open space, restroom, lavatory, furniture, safety equipment while discharging hazardous
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duties, drinking water and refreshment, workers will not be capable of facing up the
difficulty for a long time (Singh, 2008). Besides, a bad boss creates an adverse working
environment, thereby leading the employees to leave the job. i i i i i i i i
Pay
According to Shaw et al (1998), “Pay is something given in exchange for services rendered i i i i i i i i i i i i i i i
in an organization”. It has played a significant role in retaining and rewarding high quality
human resources. To be more precise, one of the critical factors of employee turnover is
lower salary. When employees’ receive lower salary and insufficient financial rewards, they
tend to stay no longer with the organization (Lavob, 1997). It is often said that job
dissatisfaction is the major cause of poor pay scale procedure, leading employees to leave the i i i i i i i i i i i i i i i
job. A good illustration of this is that a new employee may guess why the person next to him
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gets a high salary for what is supposed to be the similar job (Dobbs, 2001). A common
opinion is that good pay can be a strong determinant of job satisfaction that leads to achieve
higher productivity in the organization. i i i i
Fringe benefit i
A fringe benefit is a meandering incentive contracted to an employee or a group of

employees as a part of executive membership, which has an effect on performance and i i i i i i i i i i i i i i
employee retention (Alexander et al., 1994). It can be argued that benefit scheduling is a
critical section of human resource planning process on account of huge expenditures and
financial resources approved for the future (Weiss and Cropanzano, 1996). At the managerial
level, a fringe benefit is critical to attract, retain and motivate the employees who may
continue to work for organizational success. One reason for this is that fringe benefits play an
important role to persuade individual’s interest to work with an organization. In fact,

numerous organizations provide fringe benefits, incentives and recognize employee’s i i i i i i i i i
performance, directing a device of motivation (Lee and Mitchell, 1994) i i i i i i i i i
7
Career promotion i
In wide terms, reward program demonstrates the broad theory of compensation strategy
which is described as the “deliberate utilization of the pay systems as an essential integrating
mechanism through which the efforts of various subunits or individuals are directed towards i i i i i i i i i i i i i
the achievement of an organization’s strategic objectives” (Labov, 1997). The best way of
promoting and motivating employees would be a combination of pay, promotion, bonus and i i i i i i i i i i i i i
other kinds of rewards to achieve organizational performance (Ting, 1997). The reason
behind is that lack of promotion and ordinary work responsibilities considerably can lead to
the intention of turnover (House et al, 1996). To an extent, employees consider leaving the
organization due to the ineffective performance assessment and perceptions of job unfairness i i i i i i i i i i i i
(Weiss and Cropanzano, 1996). By implementing “job enrichment” programs, organization

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would be capable of retain employee and to provide the opportunities for better career
development (Magner et al., 1996). i i i i
Job fit i
i According to Campion (1991), Selection process is related to the fit between the candidate i i i i i i i i i i i i i i
and the job. O’Reilly et al (1991) argued that job satisfaction levels will go up if there is a
good fit between qualities of the applicants and the job. Therefore, it is imperative to have a
good fit between what the candidate wishes for and what the organization requires.
Organizations will increase the productivity if they recruit the suitable employees and take i i i i i i i i i i i i i
necessary measures to increase job satisfaction. On the other hand, turnover will not be
minimized until employees are not satisfied with the job. As a result, management needs to i i i i i i i i i i i i i i i
deal with the pressing issue of employee’s turnover and job satisfaction. Thompson et al.
(2006) state that “A happy worker is a productive worker”.

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Clear job expectation i i
If organizations cannot fulfill the highest capacity of personal job demand, employees may
have a feeling of job dissatisfaction that result in turnover intention. One of the major causes
of employee’s turnover is that employees depart the organization, while newly hired
employees do not get their job expectations. Secondly, some employees are rather unlikely toi i i i i i i i i i i i i i
be in a situation to tolerate few managers or supervisors and, hence, they come to a decision
leaving their positions (Makhubu, 2006). As a consequence, it is more imperative for an

8
organization to understand employee’s job anticipation and, side by side, take necessary i i i i i i i i i i i i
steps to fulfill their needs.

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Perceived alternative employment opportunity i i i
Employees leave the organization if there is a possibility to get an alternative work (Luthans,
1995). However, it can be argued that this is an unmanageable issue, depending on the
external environmental factors, such as job availability and the rate of unemployment. A
study conducted by Carsten and Spector (1987) found considerable relationship between job
availability and voluntary turnover. To be more precise, perceived alternative opportunity i i i i i i i i i i i
may also be exaggerated by the market condition and educational background (Jacob, 1998).
We observe this when personnel with higher educational background is more qualified and
experienced so that they can perceive alternative job opportunity (Cotton and Tuttle, 1986). i i i i i i i i i i i i i
In other words, higher educated employees have more chance of upgrading their positions in
comparison with less educated employees and are likely to consider their qualification as a i i i i i i i i i i i i i i
competitive advantage. i
Influence of co-workers i i
In 2002, a study carried out by Martin and Martin (2003) of 477 workers in 15 companies
investigates the reasons why employees are intended to quit the job. One of their major i i i i i i i i i i i i i i i
findings is that “co-workers intentions have a major significant impact on all destination
options – the more positive the perception of their co-workers desire to leave, the more
employees themselves wanted to leave”. In fact, job change acts as a form of social pressure
or rationalization on employees while co-workers intend to leave their positions.

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4. Sound strategies to minimize employee turnover

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i It is uncompromisingly indispensable to stay put the potential employees in the organization.

Managers need to arrange training and learning program how to focus on key employee
satisfiers and dissatisfiers so that they can make a well balanced job design and control
system to retain employees in the organizations (Staw et al., 1986). One of the major causes
of job dissatisfaction is poor income, which may result in employees leaving the
organization. Therefore, it is more essential to build up a sound retention plans and have a i i i i i i i i i i i i i i i i
good relationship between managers and workers in any organization.

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9
Recruiting suitable employees i i
According to Hulin et al. (1985), staffing is designed at providing a pool of latent human
resources from which business organization can select the suitable employees on the basis of
job condition. Hence, if the organizations try to minimize the rate of employee turnover, it is
required to ensure that the suitable applicants have considered for recruitment and selection
in the job. Re- cruitment is the process of attracting the potential candidates so that they will
possibly contribute to the organization (Steel and Ovalle, 1984). It becomes noticeable that
sound strategies are needed to draw an attention to the employees and motivate them to stay
put in the organization. However, organizations should have the ability to identify the right,
qualified and experienced employees and thus, this will lead to achieve the business goals.
What this means is, businesses would have letdown or diminutive growth unless they recruit
skilled workforce (Schervish, 1983)

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Retaining valuable employees i i
Mobley (1982) describes that it is the responsibility of an organization to retain the potential
employees because they will probably contribute the firm to reach the destination. The
immediate cause of this, retaining the best employees for an employer could have a
competitive advantage as compared to others. HR management should take steps for an

appropriate employee assessment so that the most suitable candidates are employed.
According to Mobley (1982), “The quality of an organization’s people is always an essential

ingredient of successful strategy execution – knowledgeable, engaged employees are a

company’s best source of creative ideas for the nuts-and-bolts operating improvements that
lead to operating excellence”. Firms may employ next to kin of applicants as the best way to
motivate and retain the top talent. Despite the fact of family reasons, this approach will
minimize the family reasons to quit the organization, particularly, in the technical work.
Effective leadership i
It is fairly likely that employees will not stay in their jobs due to the lack of support from
managers (Mobley, 1977). Many researchers are of the view that poor supervision is one of
the leading factors of employee turnover and, hence, it is vital for an organization to coach its
managers in order to improve their organizational and leadership skills (Porter and Steers,
1973). It comes to appear that employees do not have to be friends with their boss, but they
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10
need to have a good relationship with their respective boss. However, one argument put
forward by management experts is that boss needs to provide direction and feedback, spend
time in one-to-one meetings, and work with them cooperatively.

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HR managers often develop new ideas to improve employee retention, but HR experts
believe that one of the most important retention tools is being a leader instead of a manager,
so they suggest that a manager needs to push towards the potential of employees and
appreciate them in terms of their performance. It would be also a responsibility of an

effective leader to take care genuinely about their concerns and provide tools for personal
and professional development (Guion and Gottier, 1965). An employee reports to undermine
the employee’s engagement, confidence, and commitment to have a toxic relationship with
the individual. A bad boss is one of the reasons why employees quit their job. A good
illustration for this is that boss keeps update information that employees need to succeed. He
or she cannot perform his job or accomplish his goals without their help. So, manager shares
a critical interdependence with employees. If manager rarely supports them to complete the
tasks successfully, they cannot perform well in their assigned responsibilities. In fact,
employees will not progress without the information, perspective, experience, and support of
manager (Maertz and Griffeth, 2004). Based on a recent study, it can be argued that the
direct and indirect effect of managerial support on turnover cognition represent inconsistency
of the reason of manager on turnover intention (Campbell and Allen, 2007).

Training and development i i
Management should initiate to create an environment, where key information has been freely i i i i i i i i i i i i i
communicated. Employees have the opportunities to be well-informed and insightful for i i i i i i i i i i i
further career development, as well as variety form of training program will rationally be
foremost to an organization. Therefore, this will result in retaining the employees and have a
positive impact on organizational productivity (Singh, 2008).

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Training and development affects jobs satisfaction and organization commitment which in
turn affect staff retention, an organization that provides inadequate training increases staff
turnover and threatened quality standards and profits (Pousston, 2008). Previous research by
Govaerts et al. (2011) has shown that learning and development is an important retention
strategy establishing and supporting learning and working organization is beneficial to the
organization. Training of new employees ensures that they are comfortable in their new work i i i i i i i i i i i i i i
environment and reduces the chances of the employees getting frustrated in their new i i i i i i i i i i i i i
11
position (Lashley and Best, 2002). Research by Costen and Salazar (2011) shows that
employees who feel they have the chance to develop new skills through training and
development in the workplace are more satisfied with their jobs and are, as a result, more i i i i i i i i i i i i i i i i
likely to remain loyal to an organization. Garg and Rastongi (2006) on the other hand,
suggested that in today’s competitive environment feedback from employees is very

important for the organization and the more knowledgeable an employee becomes the better
for them to perform to meet the global challenges of the market place. Dhār (2015) stated
that training of employees also improves the output of the employees leading to higher
quality services which improves the value of the employees to the organization thereby
improving the desire of the organization to keep hold of them in the long term. (Handy cited
in Das and Baruah, 2013) mentioned that

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Indentifying the economic problem i i i
Generally, employees are most likely to generate the turnover intention due to a variety of
economic reasons (Steers and Mowday, 1981). If we provide evidence, Ford’s car plants
have experienced a significant number of employee’s turnover frequently reaching rates as

high as 300 to 400 percent per year. When the company enables to realize and identify the
problem, a decision has approved to increase the basic wages doubled from 2.50 dollars to
5.00 dollars per day and, by doing so, the rate of labor turnover has radically reduced
(Muchinsky and Tuttle, 1979). i i i
Job satisfaction
i
The job content and autonomy are the two major job related motivational factors that lead to
an increase of employees job satisfaction. Once employees realize that they are authorized to
take part in the decision-making process, they could be motivated and desire to do their best
for the organization. Shahzad et al. (2008) state that “Turnover studies primarily have
established that satisfaction with supervision promotes job retention without necessarily
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identifying specific behaviors by supervisors that commit employees to the company”.

Experts have identified some factors that are likely to make employees satisfied at work such
as good pay, friendly working environment, cooperative colleagues, career counseling and
opportunities for training and development (Sherman and Snell, 1998). It is also noted that i i i i i i i i i i i i i i
“employees desire managers who realize and treat them fairly” (Dailey and Kirk, 1992).
Unless managers are fair, logical and caring to their employees, it is fairly likely that they
will not be happy about their jobs.

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12
A study by Kara et al. (2012) outlines four main factors that determine the level of job satisfaction
for employees within the hospitality industry. These are working conditions or environment,
personal fulfillment, management conditions, and using ability in the job. Hanaysha et al., (2012) on
the other hand suggested that job satisfaction of employees often includes elements such as: the
job itself, the relationship with the supervisor and co-workers, management beliefs, future
opportunity, work environment, and compensation. Good relations i i i i i i
with co-workers and ideal working conditions are the most positive work aspects associated with
job satisfaction, while unfair payment is the most negative aspect (Pelit et al., 2011). A positive
correlation has also been found between organizational commitment and job satisfaction, while
work-life balance has also been cited as an important influence on job satisfaction (Silva, 2006;
Zhao et al., 2011). According to Zhao et al. (2011) when work interferes with family or family
interferes with work, the result is the same, which is less job satisfaction. In general, employees
with limited work-life conflict tend to transfer positive aspects from their personal life to the
workplace (Qu and Zhao, 2012). Job characteristics and level of interaction also impact on job
satisfaction (Ozturk et al., 2014) as do a higher family dependence on the wages from the job and
working part-time, which increase job satisfaction (Santa et al., 2014). Perceived injustices at the
workplace, low salaries, and poor working conditions also cause dissatisfaction with one’s job
(AlBattat and Som, 2013). i i i
Unionization
One of the major advantages of labor unions for organizations is that they lead to less
employee’s turnover. It is quite probable that employees will not leave their jobs as
frequently if they are the members of labor union. One cause for this is that they have to pay
dues to be a part of the union, and they typically do not want to lose their position in the
i i i i i i i i i i i i i i i i i i i i
organization. Labor unions are organizations in which employees bond together to create a i i i i i i i i i i i i i
collective voice for negotiations with employers. Previous studies suggest that labor union
may be capable to provide safe and better working environment by the negotiations between
labor and management, resulting in lower turnover (Ferguson, 1986). Another benefit is that
labor union by their effective working can improve employee satisfaction. While employees
deal with unions, they are likely to be more satisfied, as they have a voice to speak to the
employer and get higher wages on average and fringe benefits packages. Therefore, labor
unions help in reducing the rate of labour turnover and developing systematic grievance
settlement procedures leading to harmonious industrial relations. Trade unions can, thus,
13
contribute to the improvements in level of production, productivity and discipline, thereby
improving quality of worklife (Martin and Martin, 2003). i i i i i i i
Organizational culture i
A well-developed organizational culture is one of the factors that influence the employees to
stay put in the organization. If employees are not being contented with the culture, work
environment, organizational structure, the probability is that they will quit the job (Mowday
et al., 1982). It is often said that organizations are able to attract and motivate employees by
practicing the best organizational culture. Thus, it may lead them to continue work in the
organizations.
Balancing work and family life i i i i
There can be avoided various retention problems if the organization finds a solution to help
employees to effectively control their commitment at home and at work (Tser Yieth et al.,
2004). It is also probable that parents are supposed to take responsibilities, while this comes
up to the caring for the family. If we take an example, parents may help to bring back
children from school. The study also suggests that flexible working hour can lead to deal
with a better work-life balance and, by doing so, can counteract job stress (Boxall and
Purcell, 2003). Hence, managers should be provided the flexible working hour opportunities
for their employees.

i i
Career Development i i
“Career development involves creating opportunity for promotion within an organization by

providing opportunity for training and skills development that allows employees to improve
their employability in the market” (Meyer and Smith, cited in Das and Baruah, 2013). Career
development ensures that an employee is successful in their career resulting in career

satisfaction. The performance of employees is likely to be better when they perceive the
opportunities for career development within their organization or industry is high (Das and
Baruah, 2013). Additionally, organizational support for career development has been
i i i i i i i i i i
associated with a reduction in voluntary exit by employees as they are likely to perceive
career development opportunities within the organization as high (Kraimer et al., 2011).
Talented employees are required to maintain a competitive advantages and employees want
career growth to develop and rise on the career ladder. Such methods include advancement
plans, internal promotion and accurate career previews at the time of hiring (Prince, 2005).
14
CHAPTER 2 i
REVIEW OF LITERATURE
i i
15
CHAPTER 2 i
REVIEW OF LITERATURE i i
Employee turnover is delineated to a situation in which employees depart the organization

for several reasons, and thus, negatively affect the organization in terms of overall
expenditure and the abilities to distribute the minimum required services (Yankeelov et. al.,
2008). When employees leave the organization, this may not only impact on organization but
also on workforce itself. Due to its depressing impact, employee turnover has been
considerable topic for scholars, academics and managers. i i i i i i
The reasons for individual turnover intention are age, gender, marriage, education levels and
years of working in the organization (Liu and Wang, 2006). Previous studies found that the
rate of female employee turnover is higher, as compared to male employees. It can be

associated with women duty that women need to give birth and take care of the family.
Therefore, this is a pressing issue that needs to be dealt with urgently. Though employees
work in units or positions for a long period, they feel tired and tend to leave the jobs.
According to Ma et al. (2003), “Employees with young, inexperienced and high education
level tend to have low level of satisfaction about jobs and careers, and have lower
commitment to the organization, these negative attitudes are associated with turnoveri i i i i i i i i i i
intention”. One of the key factors of turnover intention is Individual aptitude. When
individuals have strong ability, or individuals are not core competent at their job and cannot
progress them completely in the organization, they are prone to turnover intention (Chen and
Li, 1998). For employees aged over 30, individual responsibility is also a factor to consider
them leaving the organization. We can study this when the more responsibility (such as
workers are the single father or mother, or their income is the main source, etc.) persons bear
in the family, the lesser the possibility of their turnover (Zhang and Zhang, 2003)). In short,
all these individual factors directly influence the turnover intention, or indirectly affect on
them through the rule of other variables

i i i i i i
Interpersonal relationship amid the different departments has a significant impact on i i i i i i i i i i i
employee turnover intention. When an organization or a department have intricate

interpersonal relationship, there are many sections or small groups, it may be complicated for
employees to deal with the relationship with coworkers and managers, or the workers are to
16
spend a lot of energy to have relationships within the organization or the department, they are
rather likely to leave the job (Zhang, 2016).

i i i i i i i
Training and learning opportunities will also have considerable effects on employees staying
in the organization. If the company does not provide them the opportunity to learn, they
cannot improve their skills and abilities. In other words, employees are most unlikely to get
self-realization so that they cannot continue to grow in the company. As a result, employees i i i i i i i i i i i i i i i
may tend to quit the job (Liu et al, 2006).

i i i i i i i i i
Pearce and Mawson (2009) have described contradictory effect regarding the low rate of
training in the organization, leading to poor job performance and higher rate of employee
turnover. On the other hand, some organizations, which provide appropriate training program
for their employees’ learning and skill development, achieve the high ratio of success and
helping to minimize the level of employee turnover. Therefore, employees might have
greater commitment to their job and full encouragement to stay in the organization (Amos et
al., 2008).
i
However, one of the significant effects of turnover is to increase cost due to recruiting and
training new employees. It costs businesses money to call for interview and hire candidates.
Besides, it is a costly process that skilled workers rarely spend the time and contribute in
income-generating activities, because they provide training to new workers. In other words, i i i i i i i i i i i i
experienced workers are responsible for training new employees so that they are less able to i i i i i i i i i i i i i i i
concentrate on their normal job duties. In a small business, the owner himself might have to i i i i i i i i i i i i i i i i
train new employees. In addition, the combined effect of the negatives can result from high
turnover, leading a firm to generate less profit. Anything that leads to increase costs or
reduce productivity, income will tend to reduce profit. Evidence for this is provided by the
Harvard Business School, when businesses experience higher turnover, they will get lower
profit margins (Zeynep and Robert, 2008). It often takes months or years for a new business
to achieve profitability due to increase of unexpected costs as high turnover and needs to
start new venture to make a profit.

i i i i i i
Thirty nine cases regard as job satisfactions have been assessed in the past fifty years and it
was discovered that all but four studies demonstrated negative relationship (Firth et al.,
2007). By contrast, Simon and Kristian (2007) opine that job satisfaction is one of the
predictors of turnover intention. In the perspectives of Western research, several studies have
found that jobrelated factors are the key determinants of job satisfaction, organizational
17
commitment and turnover intentions among employees. (Boxall et al., 2003, Malhotra et al.,
2007; Meyer and Smith, 2000). A different study illustrates that both lower job satisfaction
level and organizational commitment are associated with the higher rate of turnover (Zhao
and Zhou, 2008). However, Zuber (2001) states that “turnover may matter more in
organizations where jobs are not standardized and procedures do not exist for transmitting i i i i i i i i i i i i i
knowledge to new members” i i i
Employees possibly exit the organization due to economic reasons. Michal et al. (2001) have
used the economic model to predict labor turnover in the market. Some socio-economic
factors such as economic development level, condition of labor market, employment

structure, i job i opportunities, i property i enterprise, i transport i and i communication, i
accommodation, education and medical facilities, living cost, quality of life and so on all i i i i i i i i i i i i i i
have an influence on the intention of employee turnover (Huang and Huang, 2006).
Economic growth, short supply of organization personnel, better employment opportunities

i i i i i i i i i i
increase will lead to turnover intention. The nature of organization affects the intention of
employee turnover. Members of staff in state-owned organizations have the highest level of
turnover intention, the next is workers in private organizations, and the final is staff in
foreign funded organizations. Generally, these three types of business organization have the
higher rate of turnover intention, more than the average. To a certain extent, transportation,
shelter, schooling and health care facilities are negatively interrelated to the employee
turnover. Under the circumstance of high expenditure of living, in order to make a living, the
likelihood of employee turnover will reduce. Employees are likely to choose to quit the
current job for getting the chance of high-paid job in pursuit of a better quality of life (Zhao
et al., 2003).
i i
Experts also have opined that overall corporate culture of an organization affects the
employee turnover. However, the most important issue here is the trust in and respect for the
management team. If organizations appreciate employees, treat them with respect, and
provide compensation, benefits, and perks that demon strate respect and caring, they will stay
in the organization. In other words, employees appreciate a workplace in which

communication is transparent, management is accessible, executives are approachable and i i i i i i i i i i
respected, and direction is clear and understood (Huselid, 1995). In addition, a lack of
recognition is one of the significant factors that may contribute to turnover. Organizations
must provide a lot of genuine appreciation and recognition as icing on the cake for employee
retention. Otherwise, there is a probability that employees tend to leave

i i i i i i i i i i
18
Apart from the debate of employee’s turnover, many researchers have attributed the theories
of employees’ retention as an important topic of inquiry. Employee retention is an effort by a

business to maintain a working environment, which supports current workforce in remaining

with the company. Retaining skilled employees would be a serious concern for organizations
in the face of ever increasing high rate of employee turnover at national and global level
(Samuel and Chipunza, 2009). Literature has overwhelmingly proved that valuable
i i i i i i i i i i
workforce or functional workforce retention can play a significant role for the survival of an
organization. As a result, this could have adverse effect on productivity and profitability
(Bogdanowicz and Bailey, 2002). i i i
Many experts agree that employees’ retention policies are aimed at addressing the various
needs of employees to enhance their job satisfaction and reduce the substantial costs
involved in hiring and training new staff. It is essential for an organization to maintain
corporate strategic advantage by retaining the hardworking and talented employees. Hence,
managers must understand the difference between a valuable employees and an employee
who does not contribute much to the organization so that they can design appropriate
strategies to retain the potential employees. These strategies may range from lucrative
rewarding packages to involving employees in every sphere of the functioning of the

organization (Mak and Sockel, 2001). i i i i
Previous empirical studies have observed that factors such as competitive salary, friendly
working environment, good interpersonal relationships and job security are the key
motivational variables that can lead to retain them in the organizations (Samuel and
Chipunza, 2009; Kinnear and Sutherland, 2000; Maertz and Griffeth, 2004). Two factor
theory propounded by Herzberg et al. (1959) is an important theory that explains what
satisfies or dissatisfies employees and, hence, serves as an important framework for

employee retention. i
Voluntary and involuntary turnover. i i i i
While employees quit the job from an organization, it is stated as voluntary turnover (Noe et
al., 2006). It is set off the decision of the employee. Another definition is furnished by Egan
et al. (2004), indicating “An instance of voluntary turnover, or a quit, reflects an employee’s
decision to leave an organization, whereas an example of involuntary turnover, or a

discharge, reflects an employer’s decision to terminate the employment relationship”.

i i i i i i i i i i
Voluntary turnover can be affected by not having job satisfaction, job stress, as well as due to
19
getting a better job at another organization, a conflict with a manager, or personal matter
such as staying home and giving enough time to the family member (Manu and Shay, 2004).
It is, therefore, essential to reflect on attractions such as alternatives whilst appearing to

voluntary turnover. Nevertheless, voluntary turnover can be foreseen and, in turn, be

managed. Chiu and Francesco (2003) define involuntary turnover as “… an instance of

involuntary turnover, or a discharge” that “reflects an employer’s decision to terminate the

employment relationship”. Involuntary turnover includes retirement, death and dismissal.

i i i i i i i i i
Employee turnover is regarded as involuntary when leaving the job to take care of seriously
sick family member or to accompany a spouse to remote area. Therefore, employees have no
control over and decide to quit the job (Martin and Martin, 2003).
Avoidable and unavoidable turnover. i i i i
Avoidable turnover has been described as the one organization can prevent through
recruiting, assessing and motivating employees more efficiently and effectively (Luecke,
i i i i i i i i i i
2002). So any business organization requires verifying whether voluntary turnover has been
dealt with properly. Such confirmation is also needed, because this will lead to take the
necessary initiatives to enhance the employee retention. The phenomenon of turnover is

psychosomatic, managerial and expensive (Weisberg and Kirschenbaum, 2002). There is i i i i i i i i i i
currently no conventional model to understand the route of turnover as a whole. A variety of

factoring is applied to evaluate the causes of employee turnover. It contains personal

factoring, job content factors, working environment and external factoring. Chiu et al. (2002)
have stated that “Unavoidable turnover results from life decisions that extend beyond an
employer’s control, such as a decision to move to a new area or a job transfer for a spouse”.
However, almost eighty percent of turnover is due to recruiting mistakes, several of these
mistakes can be avoided. Organizations have a need of taking certain measures while
selecting and evaluating potential employees.

i i i i
20
CHAPTER 3 i
RESEARCH METHODOLOGY
i
21
CHAPTER 3 i
RESEARCH METHODOLOGY i
In common parlance, research is the systematic gathering, recording and analyzing of data
about problems relating to the marketing of goods and services.” Research Methodology is a
way to systematically solve the research problem. Research methodology constitute of

research method. For this project the steps which are taken are as follows:
OBJECTIVE OF THE STUDY i i i
 To study factor affecting employee turnover and sound retention strategies in

business organization i
RESEARCH HYPOTHESIS i
Hypothesis 1: i
H0= There is no significant impact of employee turnover on retention strategies.

H1= There is a significant impact of knowledge management on organizational learning.

Research Design i
Descriptive & Exploratory research is selected for this study. Descriptive research enables to
determine the answer to various questions formulated with prior knowledge of the situation
or the problems under study. The study will be conducted through the use of Questionnaire
method & Opinion survey method.

i i i i i i
Exploratory Research:- i
The objective of exploratory research is to gather preliminary information that will help
define problems and suggest hypothesis.

i i i i
22
Data Collection Method i i
Both primary as well as secondary data was used to analyse the problem under consideration.
Secondary data was collected from various sources like books, journals & research paper
web sites and other relevant source. The primary data was collected through various
respondents by using questionnaire. A structured questionnaire was designed covering all i i i i i i i i i i i i
the dimension of the problems under study. The questionnaire will be piloted on
approximately 100 respondents. i i
Sample Size: i
120 respondents will be selected to study the problem under study.

Tools and Techniques to be used: i i i i i i
1. The data collected is tabulated and analyzed in SPSS.

i i i i i i i i i
2. Study is conducted with help of Table, Graphical representation & interpretation with each
graphs & charts. i i
DATA ANALYSIS i
Raw primary data is collected with the help of a questionnaire. The raw data is then tabulated
and then analyzed with the help of appropriate techniques and tools. . Analysis conducted is
interpreted after that. Conclusions is finally drawn based on that. Data analysis and the
interpretation of data were a combination of the literature reviewed and the outcomes of the i i i i i i i i i i i i i i i
study. This stage was strengthened by the qualitative methods used, to discover results of the
study. i
The Statistics Package for Social Science software (SPSS) was used in the analysis of the
survey. Inferential and descriptive statistical tools are employed to quantify and estimate the
collected data, and to study their basic patterns. Following data analysis techniques will be
used to analyze the data:

i i i i
23
MEAN:
It is a central tendency measure representing the arithmetic average of a set of observations.

The study uses mean to describe the sample. More specifically, it is possible to get a broad
picture of the sample by considering the mean score of each of the variable.
REGRESSION ANALYSIS: i
Regression analysisis a technique for determining the statistical relationship between two or
more variables where a change in a dependent variable is associated with, and depends on, a
change in one or more independent variables .Here the researcher made an attempt to know
the linear relationship between Work life balance and employee productivity.
i i i i i i i i i
LIMITATIONS OF THE STUDY i i i i
 The time period for carrying out the research was short as a result of which many facts have
been left unexplored. i i
 The sample was taken on the basis of convenience; therefore the shortcomings of the
convenience sampling may also be present in this study. i i i i i i i i
 There were some inherent limitations as far as collection of data is concerned. The
respondent’s response may be biased in favour of their centers. i i i i i i i i i
24
CHAPTER 4
DATA ANALYSIS & INTERPRETATION
25
gender
Valid Cumulative
Frequency Percent Percent Percent
Valid male 47 39.2 39.2 39.2
female 73 60.8 60.8 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e. 61% are Female.
26
age
Frequenc Valid Cumulative

y Percent Percent Percent
Valid 20-25yrs 67 55.8 55.8 55.8
25-30yrs 31 25.8 25.8 81.7
30-35yrs 4 3.3 3.3 85.0
35-40yrs 16 13.3 13.3 98.3
above40yrs 2 1.7 1.7 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e. 56% age is in between 20-25 years.
27
education

Valid under graduate 2 1.7 1.7 1.7
graduate 27 22.5 22.5 24.2
post graduate 91 75.8 75.8 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e. 75.8% are post graduate .
28
occupation
Valid Cumulative
Valid service 6 5.0 5.0 5.0
business 30 25.0 25.0 30.0
farmer 2 1.7 1.7 31.7
student 82 68.3 68.3 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e. 68% are students.
29
income
Valid Cumulative
Valid less than 5000 66 55.0 55.0 55.0
5000-10000 30 25.0 25.0 80.0
15000-20000 10 8.3 8.3 88.3
20000-25000 2 1.7 1.7 90.0
above 25000 12 10.0 10.0 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e. 55% income is less than 5000.
30
The training imparted to me is sufficient to carry out my job effectively
and efficiently.

Valid strongly
73 60.8 60.8 60.8
disagree
disagree 25 20.8 20.8 81.7
neutral 16 13.3 13.3 95.0
agree 4 3.3 3.3 98.3
strongly agree 2 1.7 1.7 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e. 61 % are strongly disagree that the training
imparted to them is not sufficient to carry out their job effectively and efficiently
31
I have sufficient opportunities for professional growth and
development.

Valid strongly
22 18.3 18.3 18.3
disagree
disagree 98 81.7 81.7 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e. 82 % are disagree that they don’t have
sufficient opportunities for professional growth and development.
32
My pay is in accordance with my job responsibilities.

Valid strongly
10 8.3 8.3 8.3
disagree
neutral 81 67.5 67.5 75.8
agree 29 24.2 24.2 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e. 67.5 % are neutral that their pay is in
accordance with their job responsibilities.
33
I am getting sufficient allowances suitable to my nature of work.

Valid strongly
38 31.7 31.7 31.7
disagree
disagree 25 20.8 20.8 52.5
neutral 14 11.7 11.7 64.2
agree 28 23.3 23.3 87.5
strongly agree 15 12.5 12.5 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e.32 % are strongly disagree that they are not
getting sufficient allowances suitable to the nature of work
34
The reward system in the company is transparent and motivates me
to perform better.

Valid disagree 47 39.2 39.2 39.2
neutral 14 11.7 11.7 50.8
agree 6 5.0 5.0 55.8
strongly
53 44.2 44.2 100.0
agree
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e.44 % are strongly agree that reward system in the
company is transparent and motivates them to perform better
35
Adequate recognition is provided to me for my contribution in the organization.
Cumulative
Frequency Percent Valid Percent Percent
Valid strongly disagree 2 1.7 1.7 1.7
disagree 22 18.3 18.3 20.0
neutral 22 18.3 18.3 38.3
agree 16 13.3 13.3 51.7
strongly agree 58 48.3 48.3 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e. 48% are strongly agree that Adequate
recognition is provided to them for their contribution in the organization
36
I understand how my performance on the job is evaluated

Valid strongly
16 13.3 13.3 13.3
disagree
disagree 22 18.3 18.3 31.7
neutral 4 3.3 3.3 35.0
agree 64 53.3 53.3 88.3
strongly agree 14 11.7 11.7 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e. 53% are agree that they understand how their
performance on the job is evaluated
37
The performance appraisal system within the organization is fair.

Valid strongly
10 8.3 8.3 8.3
disagree
disagree 12 10.0 10.0 18.3
neutral 58 48.3 48.3 66.7
agree 24 20.0 20.0 86.7
strongly agree 16 13.3 13.3 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e. 48% are neutral that the performance appraisal
system within the organization is fair
38
The welfare measures provided by the organization make my work life better and help
in raising my standard of living.
Cumulative
Frequency Percent Valid Percent Percent
neutral 57 47.5 47.5 64.2
agree 12 10.0 10.0 74.2
strongly agree 31 25.8 25.8 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e. 48% are neutral that The welfare measures
provided by the organization make them work life better and help in raising their standard of
living
39
The welfare measures increases my productivity and interest in my job
with a feeling of involvement and participation.

Valid strongly
2 1.7 1.7 1.7
disagree
neutral 18 15.0 15.0 16.7
agree 67 55.8 55.8 72.5
strongly agree 33 27.5 27.5 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e. 56% are agree that the welfare measures
increases their productivity and interest in their job with a feeling of involvement and
participation
40
The organization provides sufficient medical facilities to its employees.

Valid strongly
20 16.7 16.7 16.7
disagree
disagree 22 18.3 18.3 35.0
neutral 19 15.8 15.8 50.8
agree 6 5.0 5.0 55.8
strongly agree 53 44.2 44.2 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e. 44% are strongly agree that organization
provides sufficient medical facilities to its employees
41
The medical facilities for the employees are a strong reason for my
stay within the organization.

neutral 17 14.2 14.2 49.2
agree 20 16.7 16.7 65.8
strongly
41 34.2 34.2 100.0
agree
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e.35% are strongly agree that the medical facilities
for the employees are a strong reason for their stay within the organization.
42
I am satisfied with the nature of job given to me.

Valid strongly
20 16.7 16.7 16.7
disagree
disagree 39 32.5 32.5 49.2
neutral 14 11.7 11.7 60.8
agree 28 23.3 23.3 84.2
strongly agree 19 15.8 15.8 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e.33 % are dissatisfied with the nature of job given
to them.
43
The job rotation policy makes my work interesting and challenging.

Valid strongly
6 5.0 5.0 5.0
disagree
disagree 24 20.0 20.0 25.0
neutral 23 19.2 19.2 44.2
agree 18 15.0 15.0 59.2
strongly agree 49 40.8 40.8 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e.41% are strongly agree that the job rotation
policy makes their work interesting and challenging
44
The incentives provided by the organization motivate me to perform
better

Valid strongly
14 11.7 11.7 11.7
disagree
disagree 29 24.2 24.2 35.8
neutral 6 5.0 5.0 40.8
agree 50 41.7 41.7 82.5
strongly agree 21 17.5 17.5 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e.42% are strongly agree that the incentives
provided by the organization motivate them to perform better.
45
The incentives are always in line with the job responsibilities given to
me.

Valid strongly
12 10.0 10.0 10.0
disagree
disagree 20 16.7 16.7 26.7
neutral 44 36.7 36.7 63.3
agree 26 21.7 21.7 85.0
strongly agree 18 15.0 15.0 100.0
Total 120 100.0 100.0
Interpretation: Most of the respondents i.e.37% are neutral that the incentives are always
in line with the job responsibilities given to them.
46
Descriptive Statistics
Std.
Mean Deviation N
The training imparted to me is sufficient to
1.64 .951 120
carry out my job effectively and efficiently.
I have sufficient opportunities for
1.82 .389 120
professional growth and development.
My pay is in accordance with my job
3.08 .758 120
responsibilities.
I am getting sufficient allowances suitable
2.64 1.448 120
to my nature of work.
The reward system in the company is
transparent and motivates me to perform 3.54 1.390 120
better.
Adequate recognition is provided to me for
3.88 1.245 120
my contribution in the organization.
I understand how my performance on the
3.32 1.277 120
job is evaluated
The performance appraisal system within
3.20 1.066 120
the organization is fair.
The welfare measures provided by the
organization make my work life better and 3.45 1.052 120
help in raising my standard of living.
The welfare measures increases my
productivity and interest in my job with a 4.08 .758 120
feeling of involvement and participation.
The organization provides sufficient
3.42 1.586 120
medical facilities to its employees.
The medical facilities for the employees are
a strong reason for my stay within the 3.50 1.283 120
organization.
I am satisfied with the nature of job given
2.89 1.365 120
to me.
47
The job rotation policy makes my work
3.67 1.324 120
interesting and challenging.
The incentives provided by the organization
3.29 1.325 120
motivate me to perform better
The incentives are always in line with the
3.15 1.171 120
job responsibilities given to me.
Model Summaryb
Adjusted R Std. Error of the
Model R R Square Square Estimate
1 .975a .951 .944 .113
a. Predictors: (Constant) Employee Turnover
b. Dependent Variable: Pay and Allowance, Rewards, Medical,
Incentives
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 25.673 16 1.605 125.310 .000b
Residual 1.319 103 .013
Total 26.992 119
b. Dependent Variable: Pay and Allowance, Rewards, Medical, Incentives
48
Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 5.673 .158 35.797 .000
The training imparted to me is
sufficient to carry out my job -.211 .022 -.420 -9.644 .000
effectively and efficiently.
I have sufficient opportunities for
-
professional growth and -.881 .076 -.719 .000
11.573
development.
My pay is in accordance with my job
.564 .057 .897 9.842 .000
responsibilities.
I am getting sufficient allowances
.195 .031 .594 6.296 .000
suitable to my nature of work.
The reward system in the company is
transparent and motivates me to .105 .027 .308 3.977 .000
perform better.
Adequate recognition is provided to
me for my contribution in the -.078 .022 -.204 -3.574 .001
organization.
I understand how my performance on
.005 .028 .012 .159 .874
the job is evaluated
The performance appraisal system
-.058 .026 -.130 -2.218 .029
within the organization is fair.
The welfare measures provided by
the organization make my work life -
-.707 .038 -1.562 .000
better and help in raising my standard 18.593
of living.
49
The welfare measures increases my
productivity and interest in my job
-.246 .036 -.392 -6.754 .000
with a feeling of involvement and
participation.
The organization provides sufficient
.117 .033 .388 3.560 .001
medical facilities to its employees.
The medical facilities for the
employees are a strong reason for my -.251 .027 -.677 -9.153 .000
stay within the organization.
I am satisfied with the nature of job
.293 .033 .838 8.814 .000
given to me.
The job rotation policy makes my
-.035 .010 -.097 -3.454 .001
work interesting and challenging.
The incentives provided by the
organization motivate me to perform .013 .011 .036 1.179 .241
better
The incentives are always in line with
.009 .011 .023 .824 .412
the job responsibilities given to me.
50
Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
Predicted Value 1.29 3.15 2.74 .464 120
Std. Predicted Value -3.118 .871 .000 1.000 120
Standard Error of Predicted
.030 .079 .041 .011 120
Value
Adjusted Predicted Value 1.47 3.27 2.74 .461 120
Residual -.293 .442 .000 .105 120
Std. Residual -2.591 3.904 .000 .930 120
Stud. Residual -3.290 4.377 -.006 1.060 120
Deleted Residual -.473 .555 -.002 .138 120
Stud. Deleted Residual -3.461 4.827 .003 1.115 120
Mahal. Distance 7.206 57.533 15.867 11.073 120
Cook's Distance .000 .390 .022 .068 120
Centered Leverage Value .061 .483 .133 .093 120
51
CHAPTER 5
FINDING & CONCLUSION
52
FINDINGS
 Most of the respondents i.e. 61% are Female.
 Most of the respondents i.e. 56% age is in between 20-25 years.
 Most of the respondents i.e. 75.8% are post graduate .
 Most of the respondents i.e. 68% are students.
 Most of the respondents i.e. 55% income is less than 5000.
 Most of the respondents i.e. 61 % are strongly disagree that the training imparted to
them is not sufficient to carry out their job effectively and efficiently
 Most of the respondents i.e. 82 % are disagree that they don’t have sufficient
opportunities for professional growth and development.
 Most of the respondents i.e. 67.5 % are neutral that their pay is in accordance with
their job responsibilities.
 Most of the respondents i.e.32 % are strongly disagree that they are not getting
sufficient allowances suitable to the nature of work
 Most of the respondents i.e.44 % are strongly agree that reward system in the
company is transparent and motivates them to perform better
 Most of the respondents i.e. 48% are strongly agree that Adequate recognition is
provided to them for their contribution in the organization
 Most of the respondents i.e. 53% are agree that they understand how their
performance on the job is evaluated
 Most of the respondents i.e. 48% are neutral that the performance appraisal system
within the organization is fair
 Most of the respondents i.e. 48% are neutral that The welfare measures provided by
the organization make them work life better and help in raising their standard of living
 Most of the respondents i.e. 56% are agree that the welfare measures increases their
productivity and interest in their job with a feeling of involvement and participation
 Most of the respondents i.e. 44% are strongly agree that organization provides
sufficient medical facilities to its employees
 Most of the respondents i.e.35% are strongly agree that the medical facilities for the
employees are a strong reason for their stay within the organization.
 Most of the respondents i.e.33 % are dissatisfied with the nature of job given to them.
53
 Most of the respondents i.e.41% are strongly agree that the job rotation policy makes
their work interesting and challenging
 Most of the respondents i.e.42% are strongly agree that the incentives provided by the
organization motivate them to perform better.
 Most of the respondents i.e.37% are neutral that the incentives are always in line with
the job responsibilities given to them.
54
CONCLUSION
Management should instigate further programs to understand why employees quit the
organization and identify the issues that attract and retain them in the organizations. Job
satisfaction is the key determinant of turnover intention. Hence, if the above sound strategies
are applied, there is a possibility that business organizations continue to exist in a vibrant
environment by taking into account their workforce as a vital resource. Many experts are of
the view that employees are the staying power of any organization so organizations
necessitate taking initiative to implement the employees’ motivation process, thereby

i i i i i i i i i i
enhancing the overall employees’ performance by providing quality products and offering
excellent services. It is also required to realize the employee turnover intent. Around fifteen
percent of the workforce intends to leave, which are likely to result in actual turnover if
mitigating strategies are not put in place. It is less expensive to retain the employees than to
recruit, train and place new ones. Therefore, every organization will have necessary measures
to fill employee vacancies and need to develop robust retention strategies to prevent further
employees leaving. As a consequence, the intent of this paper in discovering the factors and
narrating them to the study is to present a general viewpoint of what the organization
necessitates to identify and anticipate, as well as what are the diverse streets available for
future reflection to deal with major issues relating to employee turnover

i i i i i i i i i i
55
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i i i i
62
QUESTIONNAIRE
Q.1) Gender – i i i □ Male i i □ Female.

i
Q.2) Age – i i i □ 20-25 yrs. i i i □ 25-30 yrs.

i i i □ 30-35 yrs.
i i i
□ 35-40 yrs. i i □ Above 40 yrs.

i i i
Q.3) Education – i i i □ Under Graduatei i i □ Graduate

i i □ Post Graduate
i i
Q.4) Income – (in Rs.) □ less than 5000

i i i i i i i i i □ 5000-10000
i i □ 10000-15000
i
□ 15000-20000 i i □ 20000-25000
i i □ above 25000
i i
B.) Please tick your level of agreement with the following statements:
i i i i i i i i i i
i i i i i i i i i i i i i i i i i i i i i i i i i i i Strategies Strongly Agree Neutral Disagree Strongly
Agree Disagree
1. TRAINING AND DEVELOPMENT

i i i i
i.) The training imparted to me is sufficient to

i i i i i i i i i
carry out my job effectively and efficiently.

i i i i i i
ii.) i I i have i sufficient i opportunities i for i
professional growth and development. i i i
2. PAY AND ALLOWANCES

i i i i
i.) My pay is in accordance with my job

i i i i i i i i i
responsibilities.
ii.) I am getting sufficient allowances suitable

i i i i i i i
to my nature of work.
i i i i
i 3. REWARD AND RECOGNITION

i i i
i.) The reward system in the company is

i i i i i i i i
transparent and motivates me to perform better. i i i i i i
63
ii.) Adequate recognition is provided to me for
i i i i i i i i
my contribution in the organization.

i i i i
i 4. PERFORMANCE APPRAISAL
i i i i i i i
i i i i i i SYSTEM
i.) I understand how my performance on the job

i i i i i i i i i
is evaluated.
i
ii.) The performance appraisal system within

i i i i i i
the organization is fair.i i i
i 5. WELFARE MEASURES
i i i
i.) The welfare measures provided by the

i i i i i i i
organization make my work life better and help i i i i i i i i
in raising my standard of living.

i i i i i i i
ii.)The i welfare i measures i increases i my i
productivity and interest in my job with a i i i i i i i i
feeling of involvement and participation.

i i i i
i 6. MEDICAL FACILITIES
i i i
i.) The organization provides sufficient medical

i i i i i i
facilities to its employees. i i i
ii.) The medical facilities for the employees are

i i i i i i i i
a strong reason for my stay within the

i i i i i i i i
organization.
7. JOB DESCRIPTION
i i i
i.) I am satisfied with the nature of job given to

me.
ii.) The job rotation policy makes my work

i i i i i i i i
interesting and challenging. i i i
i 8. INCENTIVES i i
64
i.) The incentives provided by the organization
i i i i i i i
motivate me to perform better.

i i i i i
ii.) The incentives are always in line with the

i i i i i i i i i
job responsibilities given to me.

i i i i
65

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FACTOR AFFECTING EMPLOYEE TURNOVER AND

SOUND RETENTION STRATEGIES IN BUSINESS

MASTER OF BUSINESS ADMINISTRATION

Under the Guidance of

DR. BABITA RAWAT

UTTARANCHAL UNIVERSITY, DEHRADUN

“Employee turnover” as an expression is broadly used in business organization. Despite the

TITLE PAGE NO.

In the period of globalization, it has been respected to be a major question to manage

Representative maintenance is the "exertion by a business to maintain attractive laborers in

and appreciation of the performed work, provision of challenging work, chances to be

organization the tendency of employee leaving the organization is reduced. “Work

of existing employees in the organization (Das and Baruah, 2013).

Causes and influencing factors i i i i

salary, more benefits or better potential for career development. Consequently, it is

and influential factors that result in employees’ turnover of an organization.

High employee turnover is caused by the instability in the management of an organization.

friendlyworking environment (Bergmann and Scarpello, 2001). The obligation of a i i i i i i i i i i

performed as wellbalanced communication system between managers and workers (Griffeth

and Hom, 2001).

to leave the job (Lambert et al., 2001).

environment, thereby leading the employees to leave the job. i i i i i i i i

higher productivity in the organization. i i i i

A fringe benefit is a meandering incentive contracted to an employee or a group of

employees as a part of executive membership, which has an effect on performance and i i i i i i i i i i i i i i

important role to persuade individual’s interest to work with an organization. In fact,

numerous organizations provide fringe benefits, incentives and recognize employee’s i i i i i i i i i

performance, directing a device of motivation (Lee and Mitchell, 1994) i i i i i i i i i

(Weiss and Cropanzano, 1996). By implementing “job enrichment” programs, organization

development (Magner et al., 1996). i i i i

(2006) state that “A happy worker is a productive worker”.

Clear job expectation i i

leaving their positions (Makhubu, 2006). As a consequence, it is more imperative for an

steps to fulfill their needs.

Perceived alternative employment opportunity i i i

availability and voluntary turnover. To be more precise, perceived alternative opportunity i i i i i i i i i i i

or rationalization on employees while co-workers intend to leave their positions.

4. Sound strategies to minimize employee turnover

i It is uncompromisingly indispensable to stay put the potential employees in the organization.

good relationship between managers and workers in any organization.

skilled workforce (Schervish, 1983)

Retaining valuable employees i i

competitive advantage as compared to others. HR management should take steps for an

According to Mobley (1982), “The quality of an organization’s people is always an essential

ingredient of successful strategy execution – knowledgeable, engaged employees are a

time in one-to-one meetings, and work with them cooperatively.

appreciate them in terms of their performance. It would be also a responsibility of an

of the reason of manager on turnover intention (Campbell and Allen, 2007).

Training and development i i

communicated. Employees have the opportunities to be well-informed and insightful for i i i i i i i i i i i

positive impact on organizational productivity (Singh, 2008).

suggested that in today’s competitive environment feedback from employees is very

in Das and Baruah, 2013) mentioned that

Indentifying the economic problem i i i

have experienced a significant number of employee’s turnover frequently reaching rates as

(Muchinsky and Tuttle, 1979). i i i

identifying specific behaviors by supervisors that commit employees to the company”.

will not be happy about their jobs.