Factors Affecting Employee Retention: A Comparative Analysis of two Organizations from Heavy Engineering Industry

Abstract

The study explores to identify the main factors of retention management strategies in organizations. The organizations taken into consideration are two heavy engineering manufacturers based in India. The data was collected from 100 employees holding middle managerial positions in the two organizations. The Cronbac's alpha of the questionnaire was found to be 0.823& Pearson correlation was 0.951 (p<0.001). The factor analysis of the component retention management strategies' led to the extraction of 3 factors each from both the organizations. The factors for EEPL* were competence & relationship oriented, scholastic & futuristic oriented and “developmental & reward oriented; while for MBPL*, the factor were relationship oriented, competence & scholastic oriented†and reward oriented. The results indicate that these factors have substantial roles to play in making employees stay and how at middle managerial level different aspects are valued while deciding upon the retention strategies in similar contexts (i.e. sector).

Keywords: Retention Strategies, Employee Retention, Retention Management