INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025
www.ijltemas.in Page 583
Employee Retention Management Analyzing Factors Influencing
Possible Employee Turnover in The Information and Technology Sector
DOI:
https://doi.org/10.51583/IJLTEMAS.2025.1411000053
Received: 18 November 2025; Accepted: 27 November 2025; Published: 08 December 2025
ABSTRACT
Talent retention is a huge challenge the Information Technology Enabled Service sector faces, and it is a
debatable issue. The attrition rate in the IT sector in India is 40-45 per cent. Observing the rate at which
multinational companies are setting up subsidiaries in India, there is a possibility of greater and heavier demand
for talent in multinational and domestic companies. This positive situation has suddenly increased the demand
for skilled and talented employees. Employee job mobility was frequent in the Information Technology sector.
Now, this trend is gradually spreading to other industries. Experts liken this to a virus because it signals that
employers should focus on retaining talented and skilled staff, considering the costs of recruitment, selection,
onboarding, training, and development. This shift has moved attention from simple personnel management to
strategic human resources management, especially in IT, where the workforce is the key resource. Today, the
main concern for human resources managers is keeping talented employees within the organization. This paper
offers a comprehensive overview of employee retention and examines the main factors that influence an
employee's likelihood of leaving the IT sector.
Keywords IT sector, Talent retention, Frequent change of jobs, Major concern.
INTRODUCTION
Attrition refers to the shrinkage of employees due to factors other than torching and other staff-accomplished
crises. In recent years, both employers and staff have drifted apart. The employer conveys that staff can leave
the company at any time, and staff understand they can be evacuated at any time by the employer. Whoever is
liable, the ruin of the workforce is inexorable. This loss of workforce due to logical reasons is called attrition.
Irrespective of the nature of the organization or the industry, attrition is the most common issue in today's
business world. Especially, software companies in India are facing the challenge of retaining talented employees.
Software companies are investing heavily in recruitment, training, and developing young, talented employees.
Despite providing numerous facilities and offering competitive pay packages, software companies are struggling
to retain talented employees. Thus, this situation has provided an opportunity to explore the various issues related
to the management of talented employees in software companies and to deliver practical results.
Formulation of the Problem
Software companies today are increasingly challenged by employee retention issues, with frequent job shifts
disrupting organizational stability and growth. Although various retention strategies are adopted, high attrition
persists, indicating a gap in understanding the factors that drive employees to leave. To strengthen knowledge
of retention management and its significance for organizational development, the present research paper focuses
on identifying and examining the factors responsible for the probable shift of employees in the software industry.
RESEARCH METHODOLOGY
Sample size
The sample comprises 480 employees working at junior, middle, and senior levels of management.
Dr. Manjunatha V, Prof. Gunashree B
Government First Grade College, Nanjangudu
Associate Professor, Department of Commerce, Maharani's Women's Commerce and Management
College, Mysuru District, Karnataka, India
1
2
1
2
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025
www.ijltemas.in Page 584
Method Of Collecting The Data
As stated earlier, the goal of the study is to examine factors responsible for a probable shift in employees in the
Software Industry. The data were collected using questionnaires. The questionnaires were delivered by
hand/email/web link to the respondents. A letter of approval to conduct the present study and a covering letter
describing the research were attached to the questionnaires. The study population comprises employees and
officials currently working in software companies in the State of Karnataka. At present, there are more than
2,500 software companies in Karnataka, of which 2,300 are in Bangalore alone, and the remaining are in Mysore,
Hubli, and Mangalore. In that, there are nearly 400 major software companies. For the study, 10 percent of the
major software companies were selected at random. From each selected software company, 15 to 20 respondents
were chosen to elicit responses. The response to employee retention management was collected through a
structured questionnaire on a five-point Likert scale. For data analysis and interpretation, the Kaiser-Meyer-
Olkin Measure of Sampling Adequacy, Bartlett's Test, and factor analysis techniques were used. Data processing
was done using the SPSS package.
RESULT ANALYSIS
To identify the factors responsible for the probable shift of an existing employee, based on collected primary
data, a factor analysis was conducted. Principal component analysis was used as the extraction method. The
Kaiser rule for the number of factors to extract was applied. Eight factors were extracted, viz., working
environment, working hours, motivation, recognition, equal treatment, work-life integration, and incentives and
rewards. The results of factor analysis are as follows.
Table 1 - KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
.623
Bartlett's Test of Sphericity
Approx. Chi-Square
265.908
df
28
Sig.
.000
Table 2 - Communalities
Factors responsible for the probable shift of an employee
Initial
Extraction
Working conditions
1.000
.544
Working hours
1.000
.235
Scope for career growth
1.000
.536
Motivation
1.000
.491
Recognition
1.000
.526
Equality treatment
1.000
.635
Work / Life Integration
1.000
.677
Incentives and Rewards
1.000
.651
Extraction Method: Principal Component Analysis.
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025
www.ijltemas.in Page 585
Table 3 - Total Variance Explained
Initial Eigenvalues
Extraction Sums of Squared Loadings
Total
% of Variance
Cumulative %
Total
% of
Variance
Cumulative %
1.878
23.469
23.469
1.878
23.469
23.469
1.331
16.643
40.112
1.331
16.643
40.112
1.086
13.577
53.689
1.086
13.577
53.689
.934
11.679
65.368
.789
9.860
75.228
.725
9.061
84.289
.657
8.216
92.505
.600
7.495
100.000
Extraction Method: Principal Component Analysis.
Table 4 - Component Matrix
Factors responsible for the probable shift of an existing employee
Component
1
2
3
Working Environment
.503
-
-
Working hours
.470
-
.119
Scope for career growth
.490
-
.402
Motivation
.604
.005
.355
Recognition
.724
.025
-
Equality treatment
.373
.700
-
Work / Life Integration
.363
.429
-
Incentives and Rewards
-
.571
.566
Factor Loadings
1.878
1.331
1.086
Total Variance
23.469
16.643
13.577
KMO
Alpha
0.623
Sig. value
.000**
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025
www.ijltemas.in Page 586
Extraction Method: Principal Component Analysis.
a. 3 components extracted.
Source: Primary data
Figure 1 Scree Plot
Tables 1, 2, 3, and 4 present the factor analysis results for the factors responsible for the probable shift of an
existing employee in software companies.
The KMO Coefficient (0.623) and the significant value (.000**) are highly important at the 99% confidence
level. Therefore, the subsequent factor analysis findings are highly reliable. The three components component
1, component 2, and component 3 - were extracted with respective factor loadings of 1.878, 1.331, and 1.086,
with a cumulative variance of 53.689 percent. Component 1 lists the first prioritized factors that are responsible
for the probable shift of an existing employee. Factors such as recognition, motivation, working environment,
scope for career growth, working hours, work-life integration, and equal treatment play a pivotal role in
determining an existing employee's decision to stay in the current company. Component 2 is set to be the second-
prioritized factor, which includes equality of treatment, incentives and rewards, and work/life integration.
Component 3 indicates that incentives and rewards, scope for career growth, motivation, and working hours are
the least prioritized factors in determining the stay of an existing employee with the current company. The scree
plot provides a concrete explanation for the significant factor loadings for components 1, 2, and 3.
CONCLUSION
From the above analysis, it is true that the work environment includes various factors such as hierarchies,
company culture, management styles, and human resources policies. Employees' feelings of fulfillment and
satisfaction can boost their overall happiness at work. Therefore, software companies should focus on improving
the work environment to increase employee satisfaction. Additionally, effectively leveraging a positive work
environment to enhance satisfaction and reduce turnover is considered crucial for building a high-performance
workforce.
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)
ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue XI, November 2025
www.ijltemas.in Page 587
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