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Research Article Open Access

EFFECT OF TALENT MANAGEMENT PRACTICES AND ORGANISATIONAL PERFORMANCE ON EMPLOYEE RETENTION: EVIDENCE FROM INDIAN IT FIRMS

Abstract

Couple of years back, home-grown e-commerce player Snapdeal made a claim that India lacked talented programmers to meet their needs. This assertion reemphasized the importance of talented employees and their skills in the success of any organization. Understandably, a lot of research efforts have been made in last two decades to tackle issues related to employee retention. This study examined the role of talent management practices and organizational performance on employee retention in the Indian IT sector. Based on literature review, three leading hypotheses were formed. Primary data was collected from 33 IT firms, leading to a total of 68 responses. Based on statistical analysis using SPSS 21.0, correlations between the variables were studied. Additionally, regression was also performed between the dependent and independent constructs. The results revealed that significant relationship was found between talent management and employee retention. On the other hand, organizational performance, on its own, didn’t emerge as a driving factor for employee retention. However, along with talent management practices, organization performance was found to have significant effect on employee retention.

TAMANNA AGARWAL

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