Analysis of Factors Leading to Employee Retention in the Indian Context

Abstract

The purpose of this research is to weigh and compare different extrinsic and intrinsic means of motivation contributing to employee retention in an Indian firm. 500+ employees of leading Indian firms (Mahindra &Mahindra, IAMAI, and Saavn) were surveyed. 8 employee benefits affecting the retention of employees were identified and the employees were asked to rank these factors. Mean and variance for each factor was calculated and used to infer which factor is most important for each of the demographic classes. The report begins with a hypothesis that high salary is the only considerable motivation when it comes to staying at a given job or going for a new one. But, the results show that this is not the case always. Degree of involvement in the work was found to be the top motivator for people to stay in the company. The research thus gives statistical evidence suggesting which factors must be focused upon by companies to retain their employees. The report also explores how these factors are different for different demographics like male employees, female employees and how it also depends on the age of the employees.