FACTORS AFFECTING EMPLOYEE RETENTION AMONG IT SECTOR WORKERS IN SRI LANKA

Abstract

The Information Technology (IT) sector in Sri Lanka has been growing rapidly in recent years. However, employee retention in this sector has become a significant concern. The high turnover rate in the IT sector can lead to a lack of experienced workers, increased recruitment and training costs, and thereby a decrease in productivity. This research scrutinizes the factors that impact employee retention in Sri Lanka's IT sector. The study centers on three independent variables: selection and recruitment, employee motivation, and training and development, aiming to discern their collective influence on the dependent variable of employee retention. Employing a deductive research approach, the study forges a theoretical framework grounded in existing theories and supported by relevant literature. This quantitative research study disseminated a structured questionnaire among 384 IT sector employees in Sri Lanka under the simple random sampling method. The findings revealed that employee retention is significantly influenced by selection and recruitment, employee motivation, and training and development. Based on the findings, the study emphasized the requirement of developing strategic interventions that foster enhanced retention practices by strengthening selection and recruitment practices, employee motivation, and training and development, propelling the growth and vitality of the IT sector's workforce.