A STUDY ON EMPLOYEE RETENTION STRATEGIES AND THEIR IMPACT ON ORGANIZATIONAL PERFORMANCE

Authors:

 Dr. P. SHALINI¹, Mr. Naveenkumar E²

¹Dr. P. Shalini, Professor, Master Of Business Administration & Panimalar Engineering College, Chennai -600123

²Mr. Naveenkumar E, Student, Master Of Business Administration & Panimalar Engineering College, Chennai -600123

Abstract - This study examines employee retention strategies and their impact on organizational performance by identifying key factors such as work environment, compensation, career development, and employee engagement. Data collected from 180 respondents across various age groups, experience levels, and job roles reveals that work environment is the most influential factor in retaining employees, followed by salary and benefits. The findings indicate that career development opportunities significantly influence retention, although a communication gap exists regarding advancement opportunities within the organization. Training and development programs are found to positively affect employee retention, highlighting the importance of continuous learning. Despite moderate satisfaction with existing retention strategies, overall satisfaction levels remain low for a considerable proportion of employees. Major challenges identified include compensation dissatisfaction, lack of recognition, and external job opportunities driven by high market competition. Statistical analysis shows mixed results, with some variables having no significant relationship, while others vary based on experience and age. The study concludes that organizations must adopt a balanced approach by improving work environment, enhancing career growth opportunities, ensuring fair compensation, and strengthening employee engagement to achieve better retention and improved organizational performance.

Key Words:  Employee Retention, Organizational Performance, Work Environment, Career Development