Content area
Full Text
ABSTRACT
Employee retention and commitment apparently has become an important strategic aspect for any organization. While it is not only important to employ the best and the most talented employees, it is equally necessary to be able to retain them for long term mutual benefits. This study explores to identify the factors impacting employee retention in organizations. The organizations taken into consideration are select service sector companies based in Hyderabad. The study empirically examines the influence of organizational climate and job satisfaction on employee retention. The data collected from 95 employees was analyzed for reliability (Cronbach, 1950) and found to be quite consistent. The data was then subjected to bivariate analysis to measure the statistical association and statistical significance between these variables. The results establish that the organizational climate is associated with job satisfaction and employee retention.
Key words: Organizational climate, employee retention, job satisfaction
Introduction
Studies pertaining to HR management in India reveal a variety of factors that affect employees' attitude towards their job, including their perception of job environment or the psychological climate. In today's highly competitive and global environment, retention of good employees is considered to be one of the most important aspects. From a managerial perspective, retention of employees is more important today than ever before. Employee retention issues are emerging as the most critical workforce management challenges of the immediate future. Researchers have shown that, in future, successful organizations would be those which adapt their organizational behavior to the realities of the current work environment, where longevity and success depend upon innovation, creativity and flexibility. Critical analysis of workforce trends points to an impending shortage of highly-skilled employees who possess the requisite knowledge and ability to perform at high levels, meaning that organizations failing to retain high performers will be left with an understaffed, less qualified workforce that ultimately hinders their ability to remain competitive. In such a context it becomes necessary to investigate the variables that are related to an individual's perception of his/her immediate work atmosphere based on his/her every day experiences. Hence, it is worth examining factors like organizational climate and job satisfaction as primary antecedents of employee retention. This research seeks to empirically examine the same.
Literature Review
1.1Organizational climate
Forehand and Gilmer (1964) define...