Determinants of Employee Retention- Using Factor Analysis

Abstract

The organization’s performance depends up on the performance of the skilled employees’. It is very essential for every organization to sustain the skilled employees with it. The present study explores factors explaining employee retention. The study is related to Lee Pharma, Aurobindo Pharma and Magene Life sciences of Hyderabad. The data is collected from 242 employees’. The sampling technique used is convenience sampling. The analysis is done using Factor analysis and Kruskal wallis test. The findings of the study showed that the employee retention was explained by five factors. The five factors extracted were relationship management, rewards and recognition, work environment, leadership practice and welfare facilities. Further these five factors were tested for the significant mean difference with the designation and service of the employees’. It was found that designation and experience levels of the employees’ were not significantly different with the five extracted factors. The employer should concentrate on improving the factors extracted to retain the employees’ in the organization.