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Determinants of employee retention in the it sector: an empirical study on the impact of recognition, compensation, and work environment

Author

Listed:
  • Krishna Prakash Murugan

    (SRM Institute of Science & Technology, Research Scholar, Faculty of Management)

  • Jawahar Philimis

    (SRM Institute of Science & Technology, Assistant Professor, Faculty of Management)

Abstract

This study investigates the influence of recognition, compensation, and work environment, along with related factors, on employee retention in the Information Technology (IT) sector, particularly in Infosys. It will focus on giving practical suggestions to organizations to retain talented professionals in the face of competition in the industry. A structured questionnaire was used to administer to 200 IT professionals. Factor analysis was used to analyse data to determine latent constructs, reliability Cronbach’s alpha, Pearson correlation to determine relationships, and discriminant analysis to determine predictive power. Each of the recognition, competitive compensation, and supportive work environment showed a substantial positive correlation with the willingness of the employees to remain in the IT sector $$ \left( {p\;

Suggested Citation

  • Krishna Prakash Murugan & Jawahar Philimis, 2025. "Determinants of employee retention in the it sector: an empirical study on the impact of recognition, compensation, and work environment," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 72(2), pages 1-37, December.
    • Handle: RePEc:spr:inrvec:v:72:y:2025:i:2:d:10.1007_s12232-025-00507-9
    DOI: 10.1007/s12232-025-00507-9
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    JEL classification:

    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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