<p>This study investigates the influence of recognition, compensation, and work environment, along with related factors, on employee retention in the Information Technology (IT) sector, particularly in Infosys. It will focus on giving practical suggestions to organizations to retain talented professionals in the face of competition in the industry. A structured questionnaire was used to administer to 200 IT professionals. Factor analysis was used to analyse data to determine latent constructs, reliability Cronbach’s alpha, Pearson correlation to determine relationships, and discriminant analysis to determine predictive power. Each of the recognition, competitive compensation, and supportive work environment showed a substantial positive correlation with the willingness of the employees to remain in the IT sector <InlineEquation ID="IEq1"> <EquationSource Format="TEX">\( \left( {p\; &lt; \;0.05} \right) \)</EquationSource> </InlineEquation>. Discriminant analysis supported these elements a predictive of retention more than when these factors are considered in isolation, and work environment proved to be the most discriminating factor. IT organizations adopt unified HR practices with a combination of formal recognition programmes, market-competitive pay, and flexible working arrangements to counter turnover. The original contribution of the study is the empirical validation of retention drivers in the specific sector, which is a significant gap in the literature because it quantitatively measures the overall effect of retention drivers in the innovation-driven labor market in the IT industry. Most of these interventions are evidence-based, and when companies focus on them, they will be able to increase talent stability, decrease their recruitment expenses, and maintain their competitive advantage.</p>

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Determinants of employee retention in the it sector: an empirical study on the impact of recognition, compensation, and work environment

  • Krishna Prakash Murugan,
  • Jawahar Philimis

摘要

This study investigates the influence of recognition, compensation, and work environment, along with related factors, on employee retention in the Information Technology (IT) sector, particularly in Infosys. It will focus on giving practical suggestions to organizations to retain talented professionals in the face of competition in the industry. A structured questionnaire was used to administer to 200 IT professionals. Factor analysis was used to analyse data to determine latent constructs, reliability Cronbach’s alpha, Pearson correlation to determine relationships, and discriminant analysis to determine predictive power. Each of the recognition, competitive compensation, and supportive work environment showed a substantial positive correlation with the willingness of the employees to remain in the IT sector \( \left( {p\; < \;0.05} \right) \) . Discriminant analysis supported these elements a predictive of retention more than when these factors are considered in isolation, and work environment proved to be the most discriminating factor. IT organizations adopt unified HR practices with a combination of formal recognition programmes, market-competitive pay, and flexible working arrangements to counter turnover. The original contribution of the study is the empirical validation of retention drivers in the specific sector, which is a significant gap in the literature because it quantitatively measures the overall effect of retention drivers in the innovation-driven labor market in the IT industry. Most of these interventions are evidence-based, and when companies focus on them, they will be able to increase talent stability, decrease their recruitment expenses, and maintain their competitive advantage.