A Study on Employee Retention with Special Reference to Software Companies

N.Srinivas Kumar


Employee turnover occurs for many reasons but when employees leave their jobs and must be replaced due to the fact that the business is perennial. Replacing exiting employees is costly to organizations and destructive to service delivery. It is therefore imperative for management to reduce, to the minimum, the frequency at which employees, particularly those that are crucial to its operations leave. Retention is a voluntary move by an organization to create an environment which engages employees for long term. In this study it was studied whether the employee tenure depends on certain socio-economic characteristics like gender, age and marital status. The purpose of the study is to know the various reasons that lead to consistent and sustained employment in business organizations. A survey with 197 respondents working in software companies was done to collect data. Common factor analysis through reliability analysis and chi-square analysis was performed on collected data. The results are surprisingly insightful as the results are significant. 


employee retention, employee turnover, employee satisfaction, employee perceptions.

Full Text:



Allen, D.G. (2008). Retaining Talent. Retrieved from http://www.shrm.org/about/foundation/research/documents/retaining%20talent-%20final.pdf.

Gillingham A (2008). Skills and clientele vanish. Sunday Times, 28 September. p. 17.

Revelle W Zinbarg R (2009). "Coefficients Alpha, Beta, Omega, and the glb: Comments on Sijtsma".Psychometrika 74 (1): 145–154. doi:10.1007/s11336-008-9102-z.

Kaplan, R.M., & Saccuzzo, D.P. (2010).Psychological Testing: Principles, Applications, and Issues. (8th ed.). Belmont, CA: Wadsworth, Cengage Learning.

Cronbach LJ (1951). "Coefficient alpha and the internal structure of tests". Psychometrika 16 (): 297–334. doi:10.1007/bf02310555.

Cortina, J.M. (1993). "What is coefficient alpha? An examination of theory and applications". Journal of Applied Psychology 78: 98–104. doi:10.1037/0021-9010.78.1.98.

Green SB Lissitz RW Mulaik SA (1977). "Limitations of coefficient alpha as an index of test unidimensionality". Educational and Psychological Measurement 37: 827–838.doi:10.1177/001316447703700403.

Revelle W (1979). "Hierarchical cluster analysis and the internal structure of tests". Multivariate Behavioral Research 14: 57–74.doi:10.1207/s15327906mbr1401_4.

Schmitt N (1996). "Uses and abuses of coefficient alpha". Psychological Assessment 8: 350–353.doi:10.1037/1040-3590.8.4.350.

Zinbarg R Yovel I Revelle W McDonald R (2006). "Estimating generalizability to a universe of indicators that all have an attribute in common: A comparison of estimators for alpha". Applied Psychological Measurement 30: 121–144.doi:10.1177/0146621605278814.


  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.