Organizational Commitment as a Determinant of Employee Retention in it Companies in South Tamil Nadu

Abstract

Employee retention has become an important human resource challenge in the information technology industry because skilled employees have greater mobility and access to alternative employment opportunities. Organizational commitment is considered an important psychological factor that influences an employee's willingness to remain with an organization. The present study examines the role of organizational commitment as a determinant of employee retention among employees working in IT companies in South Tamil Nadu. The study was conducted during June 2024. For the purpose of the study, primary data were assumed to have been collected from 150 employees working in selected IT companies located in major IT employment centres of South Tamil Nadu. A structured questionnaire based on a five-point Likert scale was used to measure affective, continuance and normative commitment and employee retention. Descriptive statistics, percentage analysis, chi-square test and factor analysis were employed for analysing the data. The assumed findings indicate that a considerable proportion of employees possess a high level of organizational commitment and retention intention. The chi-square analysis indicates a significant association between organizational commitment and employee retention intention. Factor analysis identifies four major dimensions influencing retention: emotional attachment and organizational identification, career and growth opportunities, rewards and work environment, and perceived organizational support and job security. The study concludes that strengthening organizational commitment through supportive HR practices, career development, recognition, fair rewards and employee involvement can contribute to improved employee retention in IT companies.