CORPORATE PROCUREMENT PRACTICES AS A RETENTION

TOOL OF IT PERSONNEL: AN EMPLOYEES PERSPECTIVE

Dr. J.K.Tiwari

The biggest challenge facing human resource management today is

Employee Retention. The uncertainty of a changing economy,
increasing competition and the diversity in the workplace has
compelled the organisations to hold on to their top performers,
whatever the cost as it is very difficult for the recruiters to hire
professionals with the right skill set all over again. Thus the focus has
shifted from numbers to quality and from recruitment to retention.
Several organisational human resource management practices play a
dominant role in building employee commitment and loyalty. Out of the
plentiful practices, the procurement practice facilitates the entry of an
employee in the organisation. Hence keeping in view the significance
of this function the researchers have ventured to investigate the
influence of the procurement practices on employees retention
intentions in the Indian IT industry. The paper studies the influence of
organisational procurement practices on employee retention intentions
on basis of personal and positional variables of the employees. It also
examines the variations in the corporate perception on procurement
practices as a retention tool for IT Personnel.

INTRODUCTION
Organisations are made of people and function through people. It is
through the combined efforts of the people that material and monetary
resources are effectively utilized for the attainment of common objectives.
Without human efforts no organisation can achieve its goals. All the activities
of the organisation are initiated and completed by the persons who make up
the organisation. Therefore people are the most significant resource of any
organisation. This resource is called the human resource and it is the most
important factor of production. These are the human factors which refer to
a whole of inter-related, interdependent and interacting physiological,
psychological,

sociological and ethical components (Jucius; 1973). The

competitive business environment of the 21 st century reflects factors such as

aging and changing workforce in a high technology workplace that demands

and rewards ever increasing skill and increasing global competition in almost
every sector of the economy.

Thus human resources represent the

quantitative and qualitative measurement of the workforce required in an

organisation. Thus the effective management of these human factors is
required for the success of any organisation.
.
Human Resources Management is the management of these human
factors in the organisation. According to Milkovich and Boudreau (1997)
Human resource management is a series of integrated decisions that form
the employment relationship; their quality contributes to the ability of the
organisations and the employees to achieve their objective. Flippo (1984)
defines human resource management as the planning, organizing, directing
and controlling of the procurement, development, compensation, integration,
maintenance and separation of human resources to the end that individual,
organisational and social objectives are accomplished. Thus HRM refers to a
set of programs, functions and activities designed and carried out in order to
maximize both employee as well as organisational objectives. In response
new organisation forms such as virtual corporations, the virtual workplace
and the modular corporation are appearing. The new forms imply a
redistribution of power, greater participation by workers and more teamwork.
Firms

are

also

restructuring,

reengineering,

implementing

quality

improvement programs and building flexibility into work schedules in order to

support their competitive strategies. The challenge of attracting, retaining
and motivating people has never been greater. Thus human resource
management becomes all the more important in todays changing and
challenging environment.
The biggest challenge facing human resource management today is
Employee Retention. A company's employees have always been a key
asset but today, more and more companies are realizing that their people
are by far their most important asset. The reason being that in a world where
technologies, processes, and products are quickly duplicated by competitors,
and the pace of change and level of competition are constantly increasing,
people are the key to the most reliable sources of advantagebetter service,

increased responsiveness, stronger customer relationships, and the creativity

and innovation that keep a company one step ahead.
The workplace today witnesses the coexistence of employees from
various socio cultural backgrounds i.e. race, gender, colour, national origin,
economic status, ethnicity etc; with his/her own sets of needs, drives and
experience; making the corporate culture a complex and diverse one. The
progressive companies of the day look for diverse work force who can bring
and help in managing diverse talents, interests, ideologies and viewpoints
even in a continuously changing business environment. This change in the
nature of the workplace has brought up more-not-fewer retention issues. The
uncertainty of a changing economy, increasing competition and the diversity
in the workplace has compelled the organisations to hold on to their top
performers, whatever the cost as it is very difficult for the recruiters to hire
professionals with the right skill set all over again. Thus the focus has shifted
from numbers to quality and from recruitment to retention.
When employees with knowledge leave a company, the consequences
for the company go far beyond the substantial costs of recruiting and
integrating replacements and there is a significant economic impact when an
organisation loses any of its critical employees, especially given the
knowledge that is lost with the employees departure. Also, when a business
loses employees, it loses skills, experience and corporate memory. Another
reason for the organisations to try to retain their employees and curb
employee turnover is the costs attached with it. Fitz-enz (1997) stated that
the average company loses approximately $ 1 million with every 10
managerial and professional employees who leave the organisation. The
combined direct and indirect costs associated with one employee leaving the
organisation ranges from a minimum of one years pay and benefits. For
employees, the high turnover can negatively affect employment relationships,
morale and workplace safety. The magnitude and the nature of these loses is
a critical management issue, affecting productivity, profitability and product
and service quality
Another important cost incurred by the employers is the cost of hiring
and training new employees. The cost of replacing workers can be
considerable, and the specific workplace acquired skills and knowledge
people walk away with can take years to replace. When the departure of

employees brings projects to a halt and causes the loss of well-oiled

relationships between colleagues and customers and the disappearance of
knowledge gained through long experience, the after-effects for a company
are serious. With an extensive arsenal of retention management weapons,
companies are battling to secure the loyalty of their "strategically vital"
employees.
Several organisational human resource management practices play a
dominant role in building employee commitment and loyalty. They can not
only help to offset the negative impact of turnover, but also work pro-actively
to reduce turnover by providing learning and skill development opportunities
to employees. Out of the plentiful practices, the procurement practice comes
at the forefront and facilitates the entry of an employee in the organisation.
The procurement function in an organization is concerned with securing and
employing the right kind and proper number of people required for
accomplishing the organizational objectives. It consists of various activities
like job analysis, recruitment, selection, placement, induction and orientation.
Hence keeping in view the significance of this function the researchers have
endeavoured to explore the influence of the procurement practices on
employees retention intentions in the flourishing Indian IT industry.

REVIEW OF LITERATURE

The review of the HR literature seems to confirm that good retention is

about more than what a company does once an employee has been hired and
established within an organization. How companies recruit and how they
provide orientation in the first days on the job can be of crucial importance to
keeping workers over the long term. CIPD, (2005) in a report on Recruitment,
retention and turnover highlight that recruitment difficulties are especially
acute for specialist skills and required experience. The most current strategy
to address is recruiting people who have the potential to grow even if they
dont have the experience or skills. Failure to effectively recruit and orient
employees may impose significant separation and replacement costs down
the road. Where attrition is very high, the first priority most needed to work
on is employee retention, for the obvious reason that a lot less recruiting will
be required if better employee retention is done (Leder Sam, 1999).

Smith (2001) attributes 60 percent undesirable turnover to bad hiring

decisions on part of the employer. Bad hiring decisions may cover a number
of considerations, including overly hasty selection processes that fail to
ensure that the job candidate really has the adequate skills and qualifications
to do the job for which he /she is hired. Far too often hiring managers rush
through the hiring process due to being reactive rather than proactive when
filling

positions.

With

some

preplanning

in

the

hiring

process

and

implementation of sound strategies once people join your organization, you

will lower the cost of doing business by considerable amounts. In looking for
potential candidates companies must try more than the traditional employee
search. They must tap into their network of professional connections. With the
wrong choice morale with other employees can go down. With the right
choice it is just as likely to go up (Gage, 2005).
Job description should be well defined and people which fit that job
description must be hired. And a person should be hired for his potential and
skills (Pereira Brian, 2004). Good practice points in recruitment, selection and
retention, according to Agenda Consulting, (2005), focus on the following
aspects: Use of competency based interviews for recruitment, Conducting
staff surveys to find out why staff leave or stay, providing training to those
who conduct interviews, Being clear with employees on what they should
expect, and advertising jobs internally as a way to retain staff. According to
Newton Mark (2005), Businesses have to understand the needs and fit the
applicant to the job and not the job to the applicant. Management needs to
define exactly who the right people are in the company. This can be done
through job descriptions, jobs analysis etc. but it needs to be done. The first
expectation to determine when recruiting: Is the employee looking for longterm employment; if companies want to keep up with their competition, you
have to find the right people - and you have to understand how to find people
who will be loyal to your company. There are no short cuts in finding longterm, quality employees. In terms of recruitment, the companies should
therefore put an emphasis on not only evaluating formal qualifications, job
relevant technical ability, etc., but also more general types of qualifications
and descriptions on part of the recruit. It is equally important for the
individual job candidate to have a fair chance at deciding whether the
company is a good fit for him/her.

Meyer et al. (2003) have emphasized the importance of providing

realistic job previews to potential employees. These provides potential new
hires with more than just cursory glance at companys operations, providing
the candidate with enough information to make a decision about whether it is
the right workplace for him/her. MacHatton et al (1997) also highlight the
promise of the realistic job preview (RJP). Potential managers can make better
decisions about their fit with a potential employer, thereby improving their
career decision making and reducing the chances of earlier turnover.
Prospective employers get a better idea of management candidates skills
and fit than traditional interviews can give, thereby improving the selection
process.
Harris and Brannick (1999) cite the example of a number of companies
that simply relate the positives and negatives of the job and the organization
in objective non evaluative manner and let the candidates decide whether
this is an opportunity that she wants to pursue. In the long run, getting real
maximizes the fit between candidate and the organization. This is not to
downplay the importance of other traditional and non traditional recruitment
methods such as structured interviews, multiple and panel interviews, preemployment testing, biographical data analysis, simulations and work
samples; these are all potentially useful tools that appear in the HR literature
(Meyer et al, 2003).
Findings of a Report on a survey of chain and independent restaurants
in the USA designed to learn about current practices in selection and
retention of managerial personnel indicate that reference checks, structured
interviews and unstructured interviews are the most frequently-used and
effective selection procedures (MacHatton et al., 1997). Although some
management turnover is inevitable, improved selection can play a major role
in reducing turnover. Many Canadian firms, place great trust in candidates
referred to them by members of their own firm, and some even support this
process by awarding bonuses to employees who refer a candidate who
eventually gets hired by the company (Kaiser and Hawk, 2001).While less
formal in nature, employee referrals seem to accomplish both the objectives
just described. The employee who provides the referral is able to provide the
candidate with a realistic preview of what it is like to work in the company
based on personal experience and observation. Meanwhile, because they
usually know the person they refer reasonably well, and would be hesitant to

refer whose performance would reflect badly on them, employees can often
provide critical information that resumes, job applications and interviews
might not reveal.

Including ones employees in helping to evaluate

candidates may also be particularly effective with respect to retention in

workplaces where team based work is the norm (Meyer et al, 2003).
Haggerty Deb (2002) in his article spells out five steps to fire proof your
hiring process in order to successfully locate, hire and retain good employees.
He calls this as POSITIVIsm which he defines as: People, Organization and
Strategy Integrated Together in Vital Enterprise. Hacher (1997) in her article
provides advice on personnel screening and selection. By improving these
techniques, she contends, it is possible for mangers to make quality decisions
which will result in employees staying in the organization for longer periods of
time. In an informal poll, several internal audit executives were asked to share
their most successful strategies for finding and retaining the best workers.
Their tried-and-true tactics may help power up the staffing program. Pursue
Diversity: diversity is key to developing a dynamic team of effective auditors
who understand business, who can develop strong relationships with
management, and who know how to share internal control knowledge; Assess
Individual Values: looks not only for the best individuals with topnotch
credentials, but for those with "the right personality and attitude" for his
organization. This practice of matching the organization's values with those of
recruits proves profitable; Be The Best: good companies with good images will
have no problem attracting the more qualified workers; Equip for Success:
Making cutting-edge technology available to staff not only creates a desirable
work environment, but also demonstrates that the organization is serious
about helping its internal auditors succeed;

Let Go Of The Reins:

Empowerment continues to be an important element of successful staffing

(Figg Jonathan; 1999).
Industry leaders were asked to discuss powerful retention strategies
you can use right now. Some of the major views were: Staffing needs to move
through the interview-and-offer process quickly and thoroughly and needs to
be pro-active in seeking the passive job seeker by identifying creative ways to
source candidates. Regarding retention, corporations must strive to be the
employer of choice. To evaluate return on investment of recruitment products
and services, employer should consider various "hidden costs" that a good
recruitment tool can eliminate. Employee effectiveness must be factored into

any true cost-per-hire analysis. Further consideration must be paid to both the
residual effects of recruitment campaigns and the cost of marketing in
building company branding. There are numerous resources that make up the
recruiting process, and the right human-capital management system will
allow you to measure both your internal and external resources. The returnon-investment evaluation should be flexible. HR managers should seek the
following benefits to help gauge results: Efficiency and effectiveness; Time
saved to identify, recruit, and manage candidate flow ; screening; Branding:
leveraging your recruitment products to further market your company as an
ideal place to work ;The Internet has radically changed the way in which
employers attract viable candidates(Workforce, 2001). ASHP guidelines on
the recruitment, selection, and retention of pharmacy personnel (2003) are
intended to assist pharmacy managers in the recruitment, selection, and
retention of qualified employees. The pharmacy manager working in an
organized health care system will usually have to work with the systems
human resources department and within the framework of the specific
recruitment,

selection,

and

hiring

policies

of

the

organization.

Each

organizations experience with employee retention will depend on such

factors as the age of employees, the employees stages in life and career, the
organizational structure, the work environment, and the work itself. Retention
may compete with recruitment. For example, creating staff positions with
exclusively morning shifts may help retention but hurt recruitment, because
fewer candidates are interested in evening shifts. When competing issues
arise, pharmacy managers must balance them with the short- and long-term
departmental goals and the current demand for employment. On the basis of
the assessment of different factors, a retention plan should be developed. The
plan should be reviewed periodically as the needs of employees change;
employee surveys may help determine these. The following factors may be
considered in analyzing staff retention: Training period. Intent to stay.
Job satisfaction. Pay and benefits. Promotion opportunities. Job design.
Performance.
Adamsky, (2005) outlines 6 ways recruiters can support building a
better organization.1.Hiring better recruiters, because they are the gate of
the organization 2. Branding the organization: because employment branding
gaining and marketing a reputation for being a good employer allows to
more easily hiring the candidates. 3. Aggressively pursuing top talent and

attracting them to your organization. 4. Creating better employee referral

programs so that employees support HR. 5.Looking at talent as opposed to
workforce planning. 6. Investing in employees. The bottom line is that if a
company wants loyalty, it has to start giving some.
Finally, according to a study of worker attrition rates by Sirota Survey
Intelligence (2006) says that twice as many employees with less than two
years of service voluntarily leave an organization as do those with more than
two years of tenure. Employees with less than two years of service voluntarily
leave at an average rate of about 20 percent per year, while those with more
than two years tenure quit at an average rate of about 10 percent per year,
according to the study of nearly 47,000 employees. Therefore, providing a
good orientation training to the newly hired employee can not only help to
effectively integrate that person into the workplace but can also help to make
the new person feel welcome and provide him/her information about how to
cope with the demands of the workplace, and any possible problems that may
arise(Dibble,1999).These can be important elements of the socialization
process, and some companies spend two weeks or more on orientation,
during which they provide information about the company, its values,
structure, goals, objectives, clients, customers and history(Foundation for
Enterprise Development,1994).
According to Winninger Thom (2007)the biggest challenge in every
business, even more than finding good people, is once you get them, how to
keep them. If retention numbers are going to improve, you have to break
down the retaining cycle into 90 days, the first 6 months, the first year, and
then three years. The most important thing in those first 90 days is
orientation and training to create a functional capability that the new person
becomes comfortable with relative to the stress and challenges of their
position. Appreciation and attention is a huge factor during this critical period
as also to deliver what you promise. Another critical factor in retention in the
first 90 days is the "buddy system. i.e. pairing new hires with somebody who
appears to be of like kind and is in a leadership position. Another valuable
component is weekly feedback. A significant change in attitude is seen
among people who find out that they're really in a 90-day orientation
program. They're more diligent, more committed, seek to have their
questions answered, and approach the one-week reviews differently because

they know that this is building. Thus vertical integrated training or orientation
is suggested.

OBJECTIVES AND METHODOLOGY

Since employee retention is the call of the day and is fast emerging
area of research in human resource management there is no dearth of
published and unpublished literature on employee retention. The literature
available

was

reviewed

and

used

in

conceptualizing

the

concepts

differentiating the human resource practices. The study at hand primarily

focuses on the following research objectives:

To study the influence of organisational procurement practices on

employee retention intentions on basis of personal and positional
variables of the employees.

To examine the variations in the corporate perception on procurement

practices as a retention tool for IT Personnel.
The present study makes extensive use of primary data gathered form

one thousand IT personnel serving in different organisations with the help of a

well-structured questionnaire. The questionnaire includes the information on
different aspects of the research problem. To select the sample respondents,
random sampling technique has been followed. The collected data has been
analyzed by using statistical tools and techniques i.e. mean score, t-test and
F-test.
RESULTS AND DISCUSSION
As mentioned above the procurement function in an organization is
concerned with securing and employing the right kind and proper number of
people required for accomplishing the organizational objectives. It consists of
various

activities like job analysis,

recruitment,

selection, placement,

induction and orientation. The research instrument was used to collect data to
determine the influence of procurement practices in prolonging the stay of
the

employees

in

the

organisation.

To

facilitate

an

uncomplicated

comprehension of the results, the results obtained were tabulated on basis of

personal and positional demographic variables. The personal variables
embrace the respondents age, gender, marital status and academic
qualification while the positional variables comprise of the hierarchical

position, total work experience, experience in present position and experience

in present organisation of the respondents.
Procurement Practices across Personal Variables
The results attained on basis personal variables are given in the Table1. It can be seen that the scores obtained diverge between a high of mean
score 4.11 to a low of mean score 2.83, with the difference between the
highest and lowest score being 45.23 percent. It can be fathomed through the
results that the respondents regard An effective induction program soon after
the selection as the most effective procurement practice that have a say in
enhancing their intentions to stay in the organization for a longer period. An
effective induction program familiarizes the new employees with the
organizational climate and their fellow employees, which in turn helps them
to adjust better in the organization. Thus, perhaps the employees regard an
induction and orientation program as a valuable measure to employee
retention and this is probably why it has secured the highest score by the
respondents among the procurement practices. The respondents also go all
out for a scientific job analysis as a proficient employee retention strategy. A
systematic job analysis helps to obtain all pertinent facts about the job and
identifies the nature and level of human resources required to perform the job
effectively. When the employees are hired on basis of such analysis they are
better suited to the kind of work they are required to do in the organization,
thus enhancing their performance level as well as their job satisfaction
consecutively increasing their job engagement and thus retention. This is
seen through the data also where job analysis bags the second highest score.
The preference of the respondents for the job analysis is very closely followed
by an inclination towards a fair and skill based distribution of work
assignments which also gives them a chance to utilize their full calibre
subsequently increasing their job satisfaction and also performance. Thus
they regard it as a handy retention tool.
On the other hand, outsourcing of employees enjoyed the lowest
predilection of the respondents with regard to their contribution in employee
retention. This may be due to the fact that outsourcing does not nurture
employee engagement in the organization as the employees lack the feeling
of belongingness with the organization. The source of procurement was also
a very low scorer suggesting that the respondents attached very little

importance to this factor when it comes to prolonging their stay in the

organization. The respondents also did not attribute much importance to
psychological tests as the basis for selection, which is in contradiction to the
beliefs of the experts. This may be due to the inbuilt hesitation in the
employees and the reservations attached with such tests. Thus it can be
concluded

that

the

standpoint

of

the

respondents

about

the

other

procurement practices, in relation to their involvement in employee retention

varies between their highest opinion about the induction program to their
lowest opinion about the outsourcing of employees.
Procurement Practices across Positional Variables
When the view points of the respondents were considered in relation to
the procurement practices with respect to the positional variables of the
respondents it was seen that the results were quite similar as in case when
personal variables were considered, with only the slightest of difference. This
can be viewed in Table-2. Here, the mean scores obtained range from a
mean score of 4.14 to a mean score of 2.85. The difference between the
highest and the lowest score was seen to be 45.26 percent. In this case too
the respondents considered an effective induction program as the most
effective retention tool where procurement practices are considered. This
shows that a well organized orientation programs for newly hired employees
is valued by all the respondents irrespective of the demographic variables
since it helps familiarize and thus adjust them in the new found environment
of the organization. The next priority was given to the fair and skill based
distribution of work assignments which allows them to exploit their capability
to the fullest. This also leads to increased job satisfaction and thus prolonged
stay of the employees in the organization. This was followed by a preference
towards a scientific job analysis as a valuable measure to employee
retention.
Alternatively, the respondents attach lowest importance to the
outsourcing of employees as a retention tool. This means that the
respondents do not have a very favourable opinion about outsourcing as a
means to make the employees stay in the organization a longer one.
Psychological tests based selection is next in line as the lowest scorer. The
respondents have a lower opinion about psychological tests as an effective
method of selection as far as contributing to employee retention is

concerned. The respondents also had a poor penchant towards the source of
employee procurement, whether internal or external, has any positive
relationship with employee retention. In this case too the opinions of the
respondents vary between the highest score enjoyed by the induction
program and the lowest by the outsourcing of employees. The difference
between the high and low was that of 45.26 percent.
Perceptual Variations across Background Variables
In this case the views of the respondents were studied regarding the
Procurement Practices with respect to their part in employee retention. The
validity of the results obtained was also tested on the 0.01 and 0.05 levels
across different variables with the help of appropriate statistical tools.
It was observed from the Table-3 that when the mean scores of the
respondents were compared with regard to age; the most meaning to the role
of procurement practices in employee retention was appended by the
respondents of the age groups of 20-24 years and 30 years & above, where
the results were similar (mean score=3.52) and greater than the category of
25-29 years (mean score=3.46). The statistical significance was tested using
the F-test, and the results were found to be statistically significant on 0.05
levels. However, when the various age groups were compared with each
other using the Duncans mean test it was found that the relationship was
statistically significant between the age groups of 20-24 years and 25-29
years. The results also show that the mean scores of the males (mean
score=3.50) are greater than that of the females (mean score=3.49). This
means that the males among the sample analyzed are of the view that
procurement practices have an association with their retention, more than the
females. Further, the t-test revealed that the relationship among the males
and females of the sample were statistically not significant. Similarly when
the mean score of the respondents was compared with regard to their marital
status it was seen that the mean score of the married respondents (mean
score=3.51) was greater than that of the unmarried respondents (mean
score=3.48), with regard to the procurement practices. But the relationship
between them was statistically insignificant as revealed by the t-test. Thus
the married professionals consider procurement practices to be important for
employee retention more than the unmarried respondents. In case of
academic qualification, relating to procurement practices, it was seen that the

mean scores were highest for the PG & above respondents (mean
score=3.49), and only slightly greater than the engineering graduates.
Although the scores of the non engineering graduates were the lowest among
the respondents they were also only a bit less than the engineering
graduates.
When positional variables were analyzed in relation to the association
of procurement

practices with employee retention intentions, it was

witnessed that in case of position of the respondent in the organization

highest mean scores were that of the team members (mean score=3.58) and
the lowest were that of the team leaders (mean score=3.43). F-test revealed
that the relationship between the various categories was significant on the
0.01 level and this relationship was significant among the team members and
the project heads as well as among the team members and the team leaders.
The consideration of the total work experience of the respondents showed
that the mean scores of the respondents with an experience of more than 4
years was the highest (mean score=3.54), with the other two categories
revealing

similar

results.

The

results

also

proved

to

be

statistically

insignificant when compared using F-test. Among the two categories of

experience in present position higher mean scores were seen in case of
respondents with 3 years or more of experience in present position(mean
score=3.52), as regards to procurement practices. Although the relationship
among the two categories was found to be statistically insignificant, this was
revealed by the t-test. In the instance of the variable experience in present
organization highest mean scores were found in the category of one year
(mean score=3.53), followed by 3 years & above, with the category of 2 years
close behind. But the application of F-test on the results revealed that there
was no statistically significant relationship among the three categories of
respondents in this variable.

CONCLUSION
The globalization of business is forcing the manager to grapple with
complex issues of employee retention as they seek to gain or sustain a
competitive advantage. In an effort to retain their precious employees the
organisations are trying to device effective retention strategies and in order
to do that it would pay to know that what actually motivates them to stay
with the organisation for longer periods. The above discussion brings out the

influence of procurement practices on employee retention and it can be said

that regardless of the demographic variables the respondents attach highest
significance to the induction program and lowest significance to the
outsourcing of employees among all the procurement practices pertaining to
their contribution in employee retention. The results also brings out the
significant variations in corporate perception in case of age and the position
of the respondents, however no significant variations have emerged in rest of
the background variables.

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Table-1: Procurement Practices across Personal Variables

Demographic Variables

Age

Gender

Factors

Marital
Status
m
um

Academic
Qualification
n.eg e.g.
pg

Grand
Mean

The source of employee procurement, whether internal or external, has a

positive relationship with employee retention
Outsourcing of employees increases their chances of longer working with the
organization.
A non-discriminating procurement policy increases the retention intentions of
the employees.
The prevailing selection practice i.e. written test & interview is adequate
enough to encourage a longer stay of employees
Psychological tests based selections ensures a comparatively longer stay of
selected employees.
Scientific job analysis is must for retaining the employees for a longer period.

3.02

3.07

2.97

2.88

3.30

3.13

2.93

2.53

3.44

2.67

2.99

2.93

2.72

2.95

2.83

2.86

2.93

2.75

2.68

3.05

2.63

2.83

3.25

3.14

3.15

3.25

3.06

3.23

3.14

3.24

3.24

3.11

3.18

3.16

3.06

3.10

3.00

3.31

3.29

2.92

3.68

3.08

3.00

3.16

3.03

2.99

2.86

2.97

3.01

3.00

2.97

3.71

3.01

2.79

3.03

3.99

3.89

4.04

4.04

3.81

3.90

4.01

3.71

3.82

4.17

3.94

An effective induction program soon after the selection augments the

employees commitment with the organization.
A fair and skill based distribution of work assignments can act as a much
stronger retention tool.
Employees tend to stay longer where their work gives them a feeling of
personal accomplishment.
The process of identifying candidates to fill open position has a positive
relationship with their stay in the organization.
Hiring of freshers increases the chances of their longer stay in the
organization.
Service agreement bond enhances the retention intentions of employees
beyond the agreement period.
The prevailing selection practice if replaced by technical interview and
employee referral may act as a superior tool for employee retention.

4.17

4.03

4.27

4.13

4.12

4.09

4.16

3.75

4.02

4.33

4.11

3.85

3.98

4.07

3.96

3.91

3.83

4.06

3.61

4.04

3.91

3.92

3.79

3.87

4.07

3.87

3.87

3.78

3.97

3.47

3.99

3.82

3.85

3.68

3.63

3.68

3.70

3.57

3.64

3.67

3.43

3.68

3.68

3.64

3.72

3.55

3.58

3.70

3.47

3.71

3.53

3.48

3.54

3.74

3.60

3.75

3.64

3.65

3.67

3.71

3.76

3.62

4.03

3.38

3.97

3.72

3.44

3.38

3.43

3.45

3.34

3.37

3.46

3.95

3.12

3.63

3.46

Note: - 1=20-24 year;, 2=25-29 year;, 3= 30 years and above; M= male; F= female; m= Married; um=Unmarried; n.eg.= Non
Engineering graduates & below; e.g. = Engineering graduates; pg= PG & above

Table-2: Procurement Practices across Positional Variables

Demographic Variables

Position

Total Work Exp.

Factors
p. h. t. l.
t.m. a
The source of employee procurement, whether internal or external, has 2.79 2.89 3.30 3.08
a positive relationship with employee retention
Outsourcing of employees increases their chances of longer working 2.84 2.80 2.90 2.79
with the organization.
A non-discriminating procurement policy increases the retention 3.00 3.16 3.29 3.25
intentions of the employees.
The prevailing selection practice i.e. written test & interview is 2.95 3.08 3.20 3.02
adequate enough to encourage a longer stay of employees
Psychological tests based selections ensures a comparatively longer 2.88 2.89 3.14 2.95
stay of selected employees.
Scientific job analysis is must for retaining the employees for a longer 4.02 3.85 4.05 3.90
period.
An effective induction program soon after the selection augments the 4.26 4.10 4.10 4.08
employees commitment with the organization.
A fair and skill based distribution of work assignments can act as a 3.84 3.84 4.15 3.98
much stronger retention tool.
Employees tend to stay longer where their work gives them a feeling 3.85 3.74 4.04 3.86
of personal accomplishment.
The process of identifying candidates to fill open position has a 3.62 3.49 3.87 3.67
positive relationship with their stay in the organization.
Hiring of freshers increases the chances of their longer stay in the 3.60 3.66 3.58 3.61
organization.
Service agreement bond enhances the retention intentions of 3.87 3.79 3.49 3.66
employees beyond the agreement period.
The prevailing selection practice if replaced by technical interview and 3.34 3.39 3.48 3.44
employee referral may act as a superior tool for employee retention.
Note: - p. h= Project Head; t.l. = Team Leader; t.m. = Team Member; a= up to 2
to 2 years; Y= 3 years and above; x=1 year; y=2 years; z=3 years & above.

b
3.00

c
3.06

Exp. In
Present
Position
X
Y
3.05 3.00

Exp. In Present
Organization

Grand
Mean

x
3.05

y
3.06

z
2.91

3.08

2.85

2.90

2.80

2.92

2.94

2.81

2.82

2.85

3.16

3.19

3.15

3.24

3.28

3.15

3.19

3.19

3.11

3.20

3.10

3.12

3.21

3.04

3.18

3.11

3.00

2.99

2.98

3.00

3.02

2.96

3.03

2.98

3.93

4.10

3.00

4.02

4.00

3.93

3.99

3.89

4.12

4.18

4.10

4.16

4.18

4.10

4.14

4.14

3.93

3.95

3.96

3.92

3.94

3.98

3.85

3.94

3.85

3.96

3.84

3.92

3.84

3.91

3.79

3.87

3.64

3.69

3.66

3.65

3.63

3.66

3.68

3.66

3.61

3.66

3.58

3.69

3.65

3.59

3.68

3.63

3.70

3.70

3.66

3.73

3.69

3.66

3.77

3.70

3.38

3.47

3.42

3.40

3.48

3.38

3.43

3.44

years; b=3 4 years; c= more than 4 years; X= up

Table-3: Perceptual Variations

Indicator
Variables
Age
Gender
Marital Status
Academic
Qualification
Position in the
Organization
Total Work
Experience
Experience In Present
Position
Experience in the
Present
Organization

20-24yrs
25-29 yrs
30 yrs & above
Male
Female
married
unmarried
Non engineering Grads.

Mean
3.52
3.46
3.52
3.50
3.49
3.51
3.48
3.48

Engineering Grads.
PG & above
Project Head
Team Leader
Team Member
up to 2 yrs.
3 4 yrs.
More than 4 yrs.
up to 2 years
3 years & above
1 year
2 years
3 years & above

3.49
3.50
3.45
3.43
3.58
3.48
3.48
3.54
3.48
3.52
3.53
3.48
3.50

* Significant at .05 level

** Significant at .01 level

Procurement Practice
S.D.
Significance Level
0.39
F-value =3.57*
0.37
0.38
0.39
t-value =0.39
0.37
0.39
t-value =1.45
0.36
0.28
F-value =0.05
0.38
0.40
0.39
0.41
0.32
0.37
0.38
0.38
0.38
0.39
0.40
0.36
0.41

F-value = 17.90**

F-value =1.89
t-value=1.77
F-value =1.44