A Study on Developing Strategies for Employee Retention in IT Industries with Special Reference to Mumbai

Effective Employee Retention is a systematic effort by employees to create and foster an environment that have policies and practices in place that address their diverse needs. A strong retention strategy becomes a powerful recruitment tool .It is known fact that retaining best employees ensures customer satisfaction, increased product sales, satisfied colleagues and reporting staff. Various estimates suggest that losing a middle manager in most organizations cost up to five times of his salary. According to American Society of Training and Development, organizations that invested the most in training had higher gross margins and income per employees. The cost of replacing an employee who leaves has been estimated by various studies to be between 70 and 200% of that workers annual salary. This study tries to elaborate the various strategies and come to an outcome to retain the employees on the basis of findings.