Strategies Adopted For Employee Retention With Special Reference To Pharmafabrikon Private Limited - Madurai
Modern organizations are operating in an unprecedented highly competitive and turbulent business environment which is characterized by the globalization of business. In this Scenario people choose companies which have congenial atmosphere and prefer change if they don’t get desirable and it hinders the growth and success of the company. Hence retention is vital. The main objective of this study is about identifying the factors that leads to retention of employees in Pharmafabrikon private limited. Both primary and secondary data source were used, primary data were collected from 175 respondents through questionnaires selected using simple random sampling. A Descriptive research design has been applied in this study. SPSS software has been used to analyze the data. The findings of the study states that the factors such as training and development activities provided by the firm, morale of the company, appreciation for good work done by the employees, salary, supervisor cares for workers personal welfare, job security, implementation of due respect will increase employee retention. The Study helps to retain employees in Pharmafabrikon private limited.
Keywords – Employee retention, Factors influencing retention.
Employee Retention is defined as an organization’s ability to retain its employees. It can also be called as a process, in which the employees are motivated and encouraged to stay in an organization for a longer period of time for the sustainability of the organization. The ultimate aim of Employee Retention is to make both the stakeholders, i.e., employees and employer happier. It is more efficient to retain a quality employee than to recruit, train and orient a replacement employee of the same quality.
II. Review of Literature
Natalie Govaerts, Eva Kyndt, Filip Dochy and Herman Baert (2011), aimed to investigate some factors that have an inﬂuence on employee retention. Based on the literature and previous research, both employee and organisational factors are taken into account. The results show that when organisations want to retain their employees it is important to pay attention to the learning of employees. Letting people do more and learn more of what they are good at will encourage them to stay with the organisation. Results concerning the selected employee variables show that only age has a signiﬁcant relationship with retention. Regarding the intention to stay, there exists a positive relationship between age and retention.
R. Shanmugam, A. Anbu and K. Kalpana (2012), conducted a study with threefold objectives: first to identify the crucial factors of retention; next to attempt determining the extent to which these factors were affecting employee retention and finally a case study was analyzed in major IT Company for identifying the factors of retention. It was revealed that the human resources were not only the drivers and principal value-creators of the output of the industry but they were also the intellectual capital or the ‘infrastructure investment’. Moreover attracting, training, retaining and motivating employees were the critical success-determinants (Kiran Karnik, 2006). Author also revealed that factors related to compensation (Compensation related policies and non-financial benefits) issues have the highest effect on attrition.
R. Akila (2012), conducted a study about the opinion of executives on employee retention attributes at BGR Energy. The analysis on the collected data revealed that the employees have given highest weighting to comfortableness in working hours and are not satisfied with annual increments provided. Gender has significant relationship with work life balance. Correlation between job satisfaction and working condition leads to employee retention. The departments also have influence on it. The factors that had a greater influence on employee retention were career opportunities, work life balance and recognition at BGR Energy.
Chandranshu Sinha and Ruchi Sinha (2012), explored to identify the main factors of retention management strategies in two heavy engineering manufacturers based in India. The factor analysis of the component ‘retention management strategies’ led to the extraction of 3 factors each from both the organizations. The factors considered for the organizations were “competence & relationship oriented”, “scholastic & futuristic oriented”, “developmental & reward oriented”. The results indicated that these factors have substantial roles to play in making employees stay and how at middle managerial level different aspects were valued while deciding upon the retention strategies.
Munish, Rachna Agarwal (2017), conducted a study to analyze the critical factors which can affect the level of retention & engagement of employees. The findings of the study showed that factors like good training & development, compensation structures, autonomy, quality of work life, work polices and arrangements will lead the managers and management to a new dimension with holistic approach in the field of employee retention & engagement.
- A study on employee retention with special reference to Pharmafabrikon private limited- Madurai.
- To determine the factors that leads to retention of employees in Pharmafabrikon – Madurai.
IV. Research design
Descriptive research design is used in this research. The researcher used quantitative method for conducting the research. The study’s target population is the entire population in Pharmafabrikon private limited – Madurai. The total number of employees taken for the study were 308 respectively. The researcher used simple random sampling. Here the selection of items completely depends on chance or by probability. The sample size is 175.
V. data collection
Data’s for the study was mainly collected from both primary and secondary source. Primary source of data were collected from respondents of the study area. And secondary source of data was collected from past records of the company. The data were collected by using questionnaire which has been distributed personally by the researcher to employee of the companies. Closed-ended questionnaire has been used to collect primary data from the respondents. The questionnaire consists of Dichotomous, Scaling & Ranking Questions.
VI. data analysis and interpretation
Factor analysis – Total Variance
Extraction Sums of Squared Loadings
Rotation Sums of Squared Loadings
% of Variance
% of Variance
% of Variance
Extraction Method: Principal Component Analysis.
factor analysis – Rotated Component Matrix
The working environment is open and trustworthy
Good work done is appreciated
Morale in the company is high
Work life balance is supported by this company
Training and Development activities
Management supports for higher education
Performance based incentives
Employee suggestion and grievances are considered
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 7 iterations.
From table 1, it can be inferred that 3 factors were extracted. Also, we came to know that those 3 factors contribute about 62.87% of result. From table 2, the following 3 main factors were extracted:
Factor 1: The first main factor is the training and development activities provided by the firm.
Factor 2: The Second factor is the morale of the company.
Factor 3: The Third factor is the appreciation for good work done by the employees.
Garret ranking for factors importance to employees in workplace
Garret ranking for supervisor subordinate relationship
Supervisor helps in completing work
Supervisor cares for workers personal welfare
Supervisor consider other suggestions and opinions
Garret ranking for factors influencing employees to remain in company
Rewards & Recognition
Garret ranking for three R’s
From table 3, 4, 5 & 6 salary is important to employees in their workplace. Supervisor cares for workers personal welfare ranks 1st. Job security influence employees to remain in the company. Implementation of due respect will increase employee retention.
Organizations have to provide their employees with the best career advancement and opportunities, supervisor support, working environment, rewards, and recognition and should work on them. In this way, it will help the employees to put their best in the organization. As per the growth projections of the Indian pharmaceuticals sector, companies are required to retain their human resources. Retention of the employees reduces the turnover cost, increase productivity and condense brain drain of the particular industry.
- Akila R. (2012). A study On Employee Retention Among Executives At BGR Energy Systems Ltd, Chennai. International Journal of Marketing, Financial Services & Management Research, Vol.1, Iss. 9. 18 – 31.
- Chandranshu Sinha & Ruchi Sinha (2012). Factors Affecting Employee Retention: A Comparative Analysis of two Organizations from Heavy Engineering Industry. European Journal of Business and Management, Vol. 4, Iss. 3. 145 – 163.
- Munish & Rachna Agarwal (2017). Employee engagement & retention: A review of literature. International Journal of BRIC Business Research, Vol. 6, Iss. 1. 1 – 19.
- Natalie Govaerts, Eva Kyndt, Filip Dochy & Herman Baert (2011). Inﬂuence of learning and working climate on the retention of talented employees. Journal of Workplace Learning, Vol. 23, Iss. 1. 36 – 55.
- R. Shanmugam, A. Anbu & K. Kalpana (2012). An empirical study on retention of employees in it industries with special reference to Wipro technologies. Interrnational Journal of Management, Vol. 3, Iss. 2. 270 – 278.