Sukesh R -- 15MBAP054 I year MBA Human Resource Management

SIGNIFICANCE OF ORGANISATIONAL COMMITMENT TOWARDS

EMPLOYEE RETENTION WITH REFERENCE TO IT INDUSTRY IN CHENNAI
Sukesh R 15MBAP054 I year MBA
Abstract
Human resources are the life-blood of any organization. Even though most of the organizations
are now a days, found to be technology driven, yet human resources are required to run the technology.
They are the most vital and dynamic resources of any organization. With all round development in each
and every area of the economy, there is stiff competition in the market. With this development and
competition, there are lots and lots of avenues and opportunities available in the hands of the human
resources. The biggest challenge that organizations are facing today is not only managing these resources
but also retaining them. Securing and retaining skilled employees plays an important role for any
organization, because employees knowledge and skills are central to companies ability to be
economically competitive. Besides, continuously satisfying the employees is another challenge that the
employers are facing today. Keeping into account the importance and sensitivity of the issue of retention
to any organization, the present study discuss the significance of organisational commitment and
employer branding towards employee retention with reference to IT industry in Chennai.
Keywords: human resources, technology driven, skilled employees, retention, employer branding,
organisational commitment.
Introduction of IT infrastructure plays a significant role. The
IT professionals have specialized skills and
There is a revolutionary change in the
hence their attrition adversely impact the
world of work that impacts on the individual,
competitive position of the organization and
work and society. The future of work suggests
finally affect the organizational success.
flexibility, boundary less communities and
Moreover the turnover of IT professionals
change in work as we know it today. As the
increases the turn over expenses which adversely
world of work changes from a worker-intensive,
increase the overheads of the organizations.
industrial society to an automated information
Many research studies have estimated that the
society, the workforce increasingly becomes
average cost of replacing talented IT workers is
more educated with higher professionalism and a
twice their annual salaries. Hence the IT
decrease in organisational loyalty. In addition,
organizations take a number of efforts to
high technology industries operate in volatile
decrease the turnover rate of the talented
markets and experience accelerating growth and
professionals.
rates of change. High technology employees are
educated, have a strong preference for Talented IT professionals always have
independence and hold a large portion of the high demand and hence have more chances to
organisations intellectual capital. Employers land on new jobs. Identifying the reasons for
struggle to retain their valuable high technology causing the turnover of the employees remains a
employees due to a general shortage of challenge for the management and researchers.
experienced candidates and aggressive
This study aims to identify the
recruitment tactics by others in the high
importance of the organisational commitment
technology arena.
and employer branding towards employee
In the current business world, most of the retention in Chennai based IT industry. Employer
activities of any organization are based on branding is taken as a key tool in this study.
Information Technology and hence the continuity

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Sukesh R -- 15MBAP054 I year MBA
Organisational Commitment
Organizational commitment is the
individual's psychological attachment to
the organization. The basis behind many of these
studies was to find ways to improve how
workers feel about their jobs so that these
workers would become more committed to their
organizations. Organizational commitment
predicts work variables such
as turnover, organizational citizenship behaviour,
and job performance. Some of the factors such as
role stress, empowerment, job insecurity
and employability, and distribution of leadership
have been shown to be connected to a worker's
sense of organizational commitment.
Organizational commitment can be
contrasted with other work-related attitudes, such
as job satisfaction, defined as an employee's
feelings about their job, and organizational
identification, defined as the degree to which an
employee experiences a 'sense of oneness' with
their organization.
Employer Branding
Employer brand is the term commonly
used to describe an organization's reputation as
an employer, as opposed to its more general
corporate brand reputation. Employer brand
management expands the scope of this brand
intervention beyond communication to
incorporate every aspect of the employment
experience, and the people management
processes and practices that shape the
perceptions of existing and prospective
employees. In other words, employer brand
management addresses the reality of the
employment experience and not simply its
presentation. By doing so it supports both
external recruitment of the right kind of talent
sought by an organisation to achieve its goals,
and the subsequent desire for effective employee
engagement and employee retention.
Objective of study
The objective of the study is to reveal the
importance of Employer branding in
Human Resource Management
organisational commitment towards employee
retention.
Hypotheses
H1: Level of organisational commitment has no
significant difference on Employee Brand (EB)
Score reference to number of years of working in
the same organisation.
H2: Level of organisational commitment has no
significant difference on Employee Brand (EB)
Score reference to present salary drawn from the
organization.
Methodology
This study is descriptive in nature. The
primary data was collected through structured
questionnaire. The questionnaire is distributed to
750 IT employees from 15 different companies
in Chennai. 50 employees taken as a sample
from each company. The collected data analysed
by using percentage analysis and ANOVA.
Analysis and Discussion
Table 1 shows the segregation of
collected datas of respondents based on Gender,
Age, Marital status, Educational qualification,
Total Experience, Experience in current
organisation, Salary.
The data represents that 60.67%
respondents are male and 39.33% are female.
The age group is categorised into five groups, in
that 30.80% of the respondents belongs to 26-
30age group.44.67% of respondents are married.
40.53% of the respondents are post graduates.
28% of respondents having 2 to 4 years of
working experience. 29.47% of respondents are
having work experience less than 2 years in the
current company. 32.40% respondents are
earning less than 40000 per month.
A major part of this study is the
experience and salary. These two factors are
playing a key role in this study to investigate the
employer branding strategy in organisational
commitment toward employee retention.
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Sukesh R -- 15MBAP054 I year MBA Human Resource Management

Commitment scoreFactorExperience Description Std. Deviation

Mean No. of Respondents Percentage
No. of Respondents
Low < 2years Male
35.9655 8.9344 455 58 60.67
Gender
2-4 years Female
54.2692 14.9956 295 52 39.33
4-6 Years Up to 25
41.2105 11.2870 208 19 27.73
6-8 Years 26-30
40.8276 7.1568 231 29 30.80
Age 8-10 Years 31-35
38.0000 0.0000 193 5 25.73
Above 10 Years 36-40
29.0000 0.0000 73 5 9.73
Total Above
42.916740 13.5188 45 168 6.00
Moderate < 2years Single
47.2900 12.3003 315 100 42.00
Marital Status 2-4 years Married
54.5581 17.2228 335 86 44.67
4-6 Years Separated
60.2593 9.1325 100 54 13.33
6-8 Years Graduate
58.4578 12.7416 189 83 25.20
8-10 Years Post Graduate
50.4000 11.8778 304 25 40.53
Educational Qualification
Above 10 Years Professional
54.9487 10.1513 187 39 24.93
Total Others
54.0827 13.8344 70 387 9.33
High < 2years Less than
52.0317 2 15.3958 115 63 15.33
2-4 years 2-4
55.9459 11.7022 210 37 28.00
4-6 94 12.53
Total Experience (years)4-6 Years 61.5000 9.19096 20
6-8 Years 6-8
56.1667 13.5750 119 30 15.87
8-10 Years 8-10
59.1250 10.5421 123 40 16.40
Above 10 Years Above
65.000010 0.00000 89 5 11.87
Total Less than 2
56.1692 13.1010 221 195 29.47
Total < 2years 2-4
45.6697 13.8988 175 221 23.33
Experience in present organisation 4-6 93 175 12.40
2-4 years 54.7657 15.4769
(years) 4-6 Years 6-8
56.6344 12.3453 142 93 18.93
6-8 Years 8-10
54.3732 13.8105 70 142 9.33
8-10 Years Above
54.500010 12.2518 49 70 6.53
Above 10 Years Below
53.326540000 12.6316 243 49 32.40
Total 40001-60000
55.1240 14.4601 198 750 26.40
Salary (Rs) 60001-80000 110 14.67
80001-100000 115 15.33
Above 100000 84 11.20
Table 1: Demographic profile of the respondents
noticed from the table that employee processing
low level organisational commitment has found
Testing of H1: Level of organisational
low EB mean score compared with the moderate
commitment has no significant difference on
and high level organisational commitments. I n
Employee Brand (EB) Score reference to
all the three category the respondents who are
number of years of working in the same
having less than 2 years experience are having
organisation.
less EB score. In moderate level commitments,
This section is testing the relation the respondents who are having experience
between the Employee branding score and the between 4-6 years are giving more importance to
experience in current company. employee branding. In high level commitments,
the respondents who are having experience
Table 2 shows the organisational commitment above 10 years are giving more importance to
score respective to the experience. It shows employee branding.
univariate analysis between the variables. It is
Table 2: Univariate commitment, Experience and EB Score

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Sukesh R -- 15MBAP054 I year MBA Human Resource Management

Table 3: organisational Commitment wise

Distribution of respondents
Number
Organisation
of
al %
responden
commitment
t
Low 168 22.4
Moderate 387 51.6
High 195 26.0
Total 750 100
Table 3 depicts that 51.6% of the
respondents having moderate level of
commitment with their organisation. 26% of the
respondents having high level commitment and
22.4% of the respondents are having low level
commitment with their organisation.
The employer branding score is varied
with each group. Those who are having high
level commitment states that the Employer
branding is more important for retention.
When considering the total from table 2,
the respondents those who are having the
experience between 4-6 years represents the
highest mean score of 56.6344. The univariate
ANOVA analysis among the subject effect shows
that F value is 5.626 and the p value is less than
0.05, hence the hypothesis H1 is rejected. The
level of importance towards employee branding
has significant difference with the level of
organisational commitment.
Testing of H2: Level of organisational
commitment has no significant difference on
Employee Brand (EB) Score reference to
present salary drawn from the organization.
In this section another dimension ie.,
salary is considered for the evaluation.

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Sukesh R -- 15MBAP054 I year MBA Human Resource Management

Table 4: Univariate Commitment, Salary and EB Score

Commitment Standard Number of
Salary(Rs) Mean
Score Deviation respondents
Below 40000 37.0735 13.7442 68
40000-60000 53.2115 11.4743 52
60000-80000 40.0000 3.68394 15
Low
80000-100000 46.2500 6.34014 20
Above 100000 30.5385 1.33012 13
Total 42.9167 13.5188 168
Below 40000 54.6019 16.0209 108
40000-60000 52.2000 12.2665 105
60000-80000 56.0571 12.3310 70
Moderate
80000-100000 56.4717 10.4892 53
Above 100000 51.6667 16.2956 51
Total 54.0827 13.8344 387
Below 40000 55.0149 13.0366 67
40000-60000 54.9512 15.0498 41
60000-80000 58.4000 15.0360 25
High
80000-100000 57.3571 8.40099 42
Above 100000 57.2500 15.1201 20
Total 56.1692 13.1010 195
Below 40000 49.8107 16.5972 243
40000-60000 53.0354 12.6749 198
60000-80000 54.4000 13.4813 110
Total
80000-100000 55.0174 9.93751 115
Above 100000 49.7262 16.9167 84
Total 52.1240 14.4601 750

In this scenario in low level commitment those
who are drawing salary between 40000-60000,
states that Employee branding is more important
than salary. In moderate level committed
employees those who are earning 80000-100000,
states that Employee branding is more important
than salary group. Univariate analysis is
performed to evaluate the significant difference
of EB score mean, organisational commitment
and present salary. The predicted F value is
6.659 and its p value is less than 0.05, which is
lesser than level of significance. Hence H2 is
rejected. That means employee branding score
has found significant difference on
organisational commitment and monthly salary
drawing by the respondents.
Conclusion
The study attempted to identify the
importance of employee branding and
organisational commitment for talent retention.
The results observed from the study is that the
employee who found low level commitment is
found that their expectation regarding employer
branding is also low. Those who are having high
level commitment found that their expectation
regarding employer branding is also high. It is
concluded that organisational commitment is a
key factor to retain the employees.

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