Employee Retention Model for the IT/ITES Sector: Embed your Employees through C.A.R.E and Retain them

Abstract

Purpose
The purpose of this research was to test whether employees’ perceptions of an organization’s human resource management (HRM) 
practices impact their job embeddedness and, in turn, employee retention in information technology and its related industry (IT/
ITES)
Materials and Methods
The current study used job embeddedness, a relatively new construct, to investigate its mediation effect on the relationship between 
employee retention and six areas of human resource practices: compensation, training and development, performance appraisal, 
growth opportunities, supervisor support, and job security, focusing on the IT/ITES industry. A survey questionnaire was administered to IT/ITES employees in India during the coronavirus disease-2019 (COVID-19) pandemic, leveraging technology, social 
media platforms, and the researcher’s connections in the industry. Correlation analysis, regression analysis, and the PROCESS 
method were used for data analysis.
Results
The study found that job security, growth opportunities, performance appraisal, and supervisor support strongly influenced job 
embeddedness, while compensation, training, and development had a moderate but significant impact. Growth opportunities and 
supervisory support were crucial in enmeshing employees and influencing their intention to stay. Compensation is vital, as employees who are not appropriately compensated after training are more likely to switch jobs. Organizations must focus on monetary 
benefits, ensure competitive compensation packages, and link training and development to enhanced performance appraisals and 
growth opportunities. Job embeddedness mediated the relationship between HRM practices and employee retention, implying 
that these practices may not significantly impact retention unless they create fit, links, and sacrifices that embed employees in the 
organization.
Conclusion
The dimensions of HRM practices that impact job embeddedness were identified as competitive pay, avenues for growth opportunities, relationships with managers, and employment stability, summarized by the acronym Competitive Pay, Avenues for Growth 
and Appraisal, Relationship with Managers, Employment Stability (C.A.R.E)