Employee turnover in Indian IT industry
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Published: Wed, 17 May 2017
Information Technology is a very fast growing industry in this world. In Indian information technology industry more then 4.5 million employees are working. These employees are working for BPO, KPO, Software and Hardware organisation. There are many national and international organisations are working in Indian IT industry. They hire employees for their organisations. Now days there are IT employees turnover ratio is very higher then other organisations.
This research study are try to examine
What personal factors are working behind this turnover?
Why employees change their job frequently?
Why employees feel insecurity in their job?
This study tries to find out employees and organisation relationship. There are many IT hub in India But Author choose Gujarat for his research because now days Gujarat is most developing state in India. Gujarat Government organised business summit and they invite business man from all over the world. In only one days there are more then $20000 Million MOU’s signs by different business group. So now days Gujarat is power full state in business and manpower.
Author used survey method in this research. Latest technology like computer, internet and telephones are main resources used as per now day’s need. This research are try to find out employees, organisation relationship and commitments what are the mains part in employee turnover.
In this world many different industries are working. All industry run’s on different aim and different purpose. Same information technology is a one of this industry. Now day’s IT industry is a fast growing industry in this word. There are many country and many employees working in this industry on national and international level. As a part of this word India also developing IT industry in their country.
India is world biggest Information Technology capitals in the world. Information Technology is very fast growing industry in the world. IT industries are providing significant number of employment in India. IT industries are biggest job creator in India. More then 4.5 million people are working directly or indirectly in this sector. IT business is a support of the Indian national economy. In 2010-11, annual revenues from IT-BPO sector is estimated to have grown over US$76 billion and its expected to increase to US$225 billion by 2020.(Wikipedia, IT in India). Bangalore, Chennai, Hyderabad, Pune, Mumbai, Kochi and Gujarat are main IT hub in India.
India started his first BPO and IT outsourcing services in 1980’s. Low cost workforce and English speaking power is a main attraction in India. This industry was growing with dot com boom and Y2K problems. Outsourcing to India is a direct cost saving in compare to other country. Employees wedges is the largest component for any outsourcing operation whether it human resource outsourcing, application maintenance, customer care or web development. In any projects there are junior, senior, high skilled and project management employees. In Indian Information Technology industry employees cost is cheaper then other country. Salaries’ in IT industry is comparable.
India has High Quality and low cost services and large skilled IT manpower workforce. This feather’s are magnetising to world to do a business with Indian IT industry. Due to this fetchers world attract to do a business and there has been steady grow in Indian IT industry and IT professionals. According to NASSCOM-McKinsey Report 2010 The offshore IT and BPO industries directly employee around 700,000 professionals and provide indirect employment to approximately 2.5 million workers. With the steady gains of females at both software companies prompting NASSCOM to believe that women’s involvement in IT services will climb a further 10% per cent by 2010″.
India is considered as a top outsourcing location in the world. Here people are know and speak English language very well. Second point is here manpower is cheaper then other country. India is a largest export sector for IT and IT related services. In BPO India is on top position.
Every year more and more IT professional are produced by Universities and colleges. They full fill the man power demand of IT industry. The recent global financial crisis was deeply affected to Indian IT industry. Due to financial crisis company reduce their staff, decrease wages or remove benefits from their payroll structures. This situation creates high level employees dissatisfaction and job changing scenario.
Every organisation and business aim is profit. Same like this every employees working for his profit. Business target is long term and all organisation’s profit but employees always think about only and only his profit. Employee want to get instant grow Or benefits in his job. So when employees got experience start a new job searching in his field. Some time employee not satisfied with his roll in organisation or management. Some psychological reasons play a big roll in employee job changing.
Background to the Problem/Issue:-
IT market is fast growing day by day in the world. Due to this scenario IT employees demand ratio increasing and it’s create new job in market. Many organisations are developing and expanding their business on national and international level. That mean new job openings are awaiting and job opportunity ratio increase for IT professional. Now days’ IT people got high package job very easily. After getting this job how many IT professional could do this same job for long time? No one knows the answer. New company offering attractive pay packages and people change their job. There are so many reasons behind employee job change.
This days IT employees turnover has been major issue in Indian IT industry. It has been noted IT professionals are frequently change their job in compare to other Industry’s employee. Therefore, this high turnover trend is found in IT industry. Because of turnover of highly skilled employees can be very expensive and disruptive for firms and its affected to their business. Losing highly skilled staff members may incur substantial costs connected with planning, advertising, recruiting, re-skilling and train a new staff. This process is time taking and expensive process. These process hidden costs are associated with difficulties completing projects and disruptions in team-based work environments. Information technology personnel demonstrate highly skilled professionals and called as knowledge worker (Reed, 1996; Frenkel & Korezgynski, 2002). So all employees who are working in IT and any other company’s they all are important for their organisation.
When new employees join the company then new employee is not aware with company’s other employees, management and work environment. Senior colleagues are spend some time and providing some training and information about company. Management and HR department fix their job profile and benefits. Old colleagues work some day with new employee and try to set in new work environment. Means company spent time and money behind the new employee to set them in organisation. This new employees spend some time in this organisation and leave the job. Company take a new employee and do this process again. Now days, this is a general scenario in IT industry. This situation deeply affected on company’s business and his work quality. Its break company’s process cycle and company’s not full fill his commitment to client on time. End of the day company loose his employees, business, client and his market reputation.
So one employee left from current job it disturbed to all company process. Company try to find out its synonyms but its take some time. In between that time there are chances of loose company’s time, business, commitment, profit and reputation. Only one employee left from job that is disturbed company process cycle. So all employee are important for every organisation.
Research Question and Objectives:-
Indian IT industry is very large and growing industries. Many employees are working in these industries on different places, post and level. Indian IT industry’s main and critical issue is experience and current employee is important for organisation. Company hire a new employee then they have to start from bottom with new employees. Company have to search & hire new employee, give a training and knowledge to new employee and its take time. After this process organisation don’t know How potential new employee for them? IT industry working on deadline and old employee replacement is time taking process. In between new and old employees process some time company miss the deadline. They not full fill the client requirement. These issues are affected on company reputation, business and cost. They create negative effect on client mind. So company is trying to pull old employees in his organisation and new company give a more offer to employees.
Some of the following reasons are play important role in employee job change. These reasons are founded by examination for employee turnover in Indian IT industry. Employee change their job for
Better compensation and Benefit
Poor relationship with Management
Chang in Work & Life
Switching to New Technology
Flexible Working hours
Employees change their job due to some of above and other reasons. Through examination and investigations its find out, there are relationship between the employee job satisfaction and organisation commitment as per previous research. Previous research shows this are the main reason behind the employee turnover in Indian IT industry.
All of the above reasons are common reason in employee job change. As per the study this are common reason in every industry. This study main research questions are
What personal factors are working behind this turnover?
Why employees change their job frequently?
Why employees feel insecurity in their job?
Is male and female employees job changing ratio are same?
Is employee age important in turnover?
These are the main research questions of this study. Author’s make a survey questionnaires on this questions and objective. Author also includes some questions related to this issue’s and they help in research.
Researchers have comprehensively studied on employee turnover attitudes. They give their efforts to develop and understanding of employee attitudes. Employee leave organisation with specific reason. In an attempt to clarify the relationships among various attitudinal antecedents of turnover, Tett and Meyer (1993) they perform meta-analysis on 178 samples from 138 studies. They work on the relationships between job satisfaction, turnover intention, organizational commitment and actual turnover (Tett and Meyer, 1993). In their research they state that organisational commitment and employee job satisfaction both objects are perform independently in employee turnover. In this both object employee job satisfaction is more effective then organisational commitment. Means as per Tett and Meyer research employees job satisfaction is a major part in their job.
Lee, Holtom, Mc Daniel, Hill and Mitchell (1999), also done a research on this topic. They strongly argue that only attitudinal findings are not sufficient to explain this issue. They do a more then 17 years research on this topic and suggests that many employee left current organisation without any specific reason. Hom, Caranikas-Walker, Prussi and Griffeth (1992) start a meta-analysis on employee turnover. As per them opinion only employee job satisfaction is not important but some times external economical issues or employment rate are also play important role in employee turnover. Generally as per current theory employee low job satisfaction is a major reason for leave organisation. But as per Lee et al (1999) there are new theories are needed to explain the different situation and reason. Some need to find out possible reason for which & why people leave the organisations.
The psychological viewpoint and goal is showing different object such as job dissatisfaction, employee demography and organisation not full fill their commitment are the main issue in employee turnover (e.g. Discenza & Gardner, 1992; Joseph & Ang, 2003). This research show important and insight reason for why IT employee leave their job and change organisation frequently. Recent organizational behaviour and psychological result show that actual reason behind employees turnover are salary package levels, Promotion, mobility, and skill demands and jobs availability (Hom & Kinicki, 2001; Trevor, 2001).
Psychological research’s show that employee turnover is individual factors. It is show that employee leave their job due to job dissatisfaction or employee work place or organisational commitment. This research has show why IT employees leave their current organisation.
Jing and Klein (1999), they reported that In fortune 500 firms IT employees job turnover ratio is 25 To 35%. Moreover, Human resource management have a facing a key issue of IT employee job change ratio (e.g. Niederman, Brancheau and Wetherbe, 1991). This research is same focus on attitudes leading to purpose to employee turnover finding as reported by Tett and Meyer (1993).
The study of “IT Retention: The social context of turnover among information technology professional Lee (2002)”. This study was focus on social support from employee’s colleagues and company’s management. If they give a support each other then company minimize employee turnover. That means social supports are also play a important role in employee turnover. If employee got this support then they neglect other object like job satisfaction, wedges or organisation commitment. So as per Lee, social support is a most important part in employee turnover.
This literature surveys are show a complete and clear scenarios of employee turnover. There are so many reasons or objects are working behind employee turnover. Some potential reasons are psychological reason, intra or individual approaching, career approaching or location approaching.
There are very few people done a research on employee turnover in Indian IT industry. Now days Indian IT industry market is highly growing and busy with employee. So, this study are try to give his efforts and reconsider employee turnover approach or prospective.
Method is a systematic and orderly approach to the data collection and analysis. We collect information or data from different types of work and method is organise data in a correct way and give a subject oriented result. There are many type research methods in used for business and management work. Following four methods are very popular in research. These methods are known as
On all above research method, Survey method is a suitable method for this study. Survey method is gave a data as per present situation. In survey people’s are give their oven views and what they think. Only this method is feasible to carry out a project at any level.
Survey method’s is useful when one person want to contact large numbers of people group to collect a data on the same issue with same questionnaires’ to all. In this study survey method is suitable because only one person is working on this project with same issue and same questionnaires with large number of people.
Design of Survey:-
The research questions are in simple webpage format so no one can confuse to fill survey. There are total three pages in one web link. First page is a welcome page. This page is give information regarding Author location, aim to survey and give information how to fill the survey and what the use of survey. Second web page is a questionnaires page. Total thirteen question in this page. All questions are regarding employee job and its experience about company. All are objective and they have to only tick on the answers. Last third page show thanking employees.
Author use one website to create survey questionnaires. This website allow to create survey questionnaires and give some important function which are help full to create survey. After the create questionnaires author create a web link. This web link sent to the company employees who are participating in survey. In other language the web link sent via E-Mail to those employees who are choose as a sample.
To getting correct answer understand questions are essential. If questions language is difficult to understand then this will affect to result. The come in significantly in negative manner. All questions are in simple and in English language. Questions are logical and easy to understand. This way the respondent means employees have share their issue, opinion and problems.
Sample is a most important part in every research. Research is related to IT employee turnover in India so author need to choose related sample. The investigation employee numbers are 50 for this research. All sample employees are from Gujarat. There are different organisation and different places chosen from Gujarat. INFOCITY is the IT hub of Gujarat. This place many companies and more employees are working in IT fields. The manpower was belongs from national and international places. All companies are working for National and International clients. In this place many employees working for BPO, KPO and IT related job.
Author chose following company who are dealing with IT, BPO & KPO job. This all companies have different department in IT sector.
Effective Tele Services Pvt. Ltd.
Creative Data Management Pvt. Ltd.
Just Dial Tele Service Pvt. Ltd.
Author was fix sample size 60. So every company was contributes 12 employees for this research. All above company are working for national and international clients. All employees are well educated. Author find national and international employees are working in this company. Employees are age above 18 and there are mixed age group employees. In this company author find male and female employees as well as different marital status employees. So as per research need this company full fill all criteria.
Survey normally indicates human respondents. Basic data are obtained by talking to people, by telephone, by face to face, by written questionnaires or by internet. Author used latest communication technology and invite people to participate in survey. Author study in London, UK and want opinion of people who are currently working in Indian IT organisation.
Types of Work /Gender
In this survey author used all of the above method. Author create questionnaires and create own survey link with help of internet and latest technology. Authors sent this link via E-mail who working in IT Company at India. Author also send a link trough a text message and call to people and fill the survey. Author puts link in Face book and Orkut and invite people to fill survey who are working in this IT Company. Author was reminded company’s employee to fill survey and got 100% result from this company’s employees.
Employee’s criteria for this survey are who working in IT department. They have a good English knowledge and education. They must 18 years old. Employees have a good knowledge is also one of the criteria.
Every research based on data collection. Data is important part in every research. In this thesis data collected through survey questionnaires. These questionnaires are related to this thesis purpose. Questionnaires were created as multiple choice questions and answers. These choice are represented a quantitative research methods. All questions are objective so it’s very easy to give answer.
Only research and research answer material are not sufficient to make a decision. There are some statistical and mathematical calculation are needed to make a correct decision.
Data analysis is a show the result of research. There are many types of data analysis.
Author is collect data from different organisation and different employees. So this data collect only for this research purpose. Correct and result oriented data is a main part of every research. For perfect result and accuracy author not give this data to any company where respondents employees working because if Author give this data to company then sometimes its affect to employees job. So author is give complete research and analysis report copy to this company.
Author aware about data protection policy and conform to Organisations who are participates in research. All data are stores in safe place and only use for this research. Data never given and used for other purpose.
“Employee’s turnover in Indian IT industry” research Generate new result about employee and organisation relationship. This survey will generate outputs on following topic.
Employees job satisfaction
Role organisation commitment in employees turnover
Employee job change intention
Important of relationship between employees and management
Important of Job security
Important of benefits
Felling safe in work environment
Time Scale and Resources:-
Every research has a time limit. Without time limit and deadline any works not give correct results. In this research author make a different task and give a time limit to every task. The below table are show the time limit of every work done by author in this research.
Time in Days
Reading about subject
Collect a information regarding problems
Design a Survey Questionnaires on Paper
Create a web link for survey & Testing
Contact to related company
Sent a web link to respondent
Remind and collect a data from respondent
Fix a method for calculation
Reading, collecting & drafting of data
Writing a Essay
Above table are show approximate time for each activity. Only author working on this research, so all activity done by only one person means author is responsible for all task. There is no other manpower utilised in this project.
Author used latest technology to doing every task. There are computer, internet, telephone call, printer, books and different online and off line resources used in research. So in this research technology is very help full.
For Example:- Author want to sent a questionnaires to all respondents. So author is created questionnaires by using laptop, internet and website. Author creates questionnaires through website and sent a web link through E-Mail to respondent.
So, Latest technologies are save time and work very fast. It’s save time and give accurate result within a time limit. So author used maximum latest technology as resources and finish research in time limit. Above table are show maximum time taken by each process.
Cost or Expenses:-
This research is doing by author for his study purpose and as part of dissertation. So there is no finance available for this research. Only one person means author working on this project so there are no more expenses on this research. Author’s using latest communication technology like Telephone, Books, Internet connection and computer for this research. All research work done by only one person.
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