THE INFLUENCE OF HUMAN RESOURCE PRACTICES ON EMPLOYEE RETENTION IN THE INFORMATION TECHNOLOGY SECTOR

Abstract

Human resources are among an organization's most significant assets. Their importance to enterprises necessitates not only attracting skilled individuals but also retaining them over the long term. Skilled people are essential for the comprehensive growth and advancement of a firm. This study examines the Information Technology sector in India and delineates key human resource practices by reviewing the literature. It examines the HR practices that enhance employee retention within firms. Efficient HR procedures can reduce staff turnover and improve retention rates. These practices encompass health and safety measures, the working environment, welfare programs, training and development, compensation management, reward management, industrial relations, work-life balance, and fringe benefits. The investigation highlighted the need for employee retention strategies to enhance retention rates in IT firms. The research focused on a sample of 615 participants. A questionnaire was constructed for this analysis, drawing on prior studies and literature, to assess the identified HR practices associated with employee retention. Correlation and ANOVA tests were conducted using SPSS v20 to evaluate the data. The test results indicated a substantial influence of HR policies on the organization's staff retention rate. Training and development, remuneration, and work-life balance positively correlate with employee retention rates in the industry. This study assists management in formulating effective staff retention strategies to enhance retention rates.