Quantitative Analysis of KPI of Various Industries in India for Employee Retention Using Microsoft Power BI

Employee retention is a critical concern for organizations worldwide, and India is no exception. In a country known for its diverse workforce and rapidly evolving business landscape, understanding the factors influencing employee retention is paramount for organizational success. This Research Paper aims to provide an in-depth analysis of the key retention factors affecting employees in India across different industries. It combines theoretical frameworks, empirical research, and practical insights to offer a holistic view of this crucial issue. Methodology: This analysis will provide a quantitative baseline for understanding the impact of KPIs on employee retention. For this, Microsoft Power BI, a data visualisation tool was used. The industries were then plotted against the Hertzberg’s Two factor Theory Model graph and categorized according to the quadrants of theory. Result: Various Macro Factors Like Personal Factors, Organisational Factors, Workplace Factors and their Micro – Factors were seen to affect the employees’ Retention for different industries. While India boasts a dynamic and diverse labour market, characterized by rapid economic growth, cultural variety, and evolving workplace expectations, it is also confronted with a pressing issue of employee retention. This research problem encompasses the complexities and nuances surrounding the retention of employees in the Indian context. It acknowledges that retention is a multifaceted issue influenced by various factors, including personal, workplace, and organizational elements. Researchers and organizations may explore specific aspects of this broad problem to develop focused research questions, hypotheses, and objectives.


Introduction
Employee retention in India has emerged as a critical concern for organizations across various industries.The dynamic and competitive nature of the Indian job market, combined with changing employee expectations, presents unique challenges.Organizations must navigate a landscape where skilled professionals are in high demand and where factors such as compensation, career development, work-life balance, and workplace culture play pivotal roles in retaining talent.In this context, understanding the nuances of employee retention becomes essential for organizations aiming to build a stable and motivated workforce.Moreover, as India continues to be a hub for global businesses, the • Email: editor@ijfmr.com

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Volume 6, Issue 1, January-February 2024 2 ability to retain talent has far-reaching implications for companies seeking to establish a strong foothold in this diverse and rapidly evolving market.Employee retention is not just a matter of business strategy; it is a reflection of an organization's commitment to its workforce and a fundamental driver of long-term success in the Indian context.The significance of employee retention in India, as in any country, is profound and multifaceted.Employee retention refers to an organization's ability to retain its employees over a period.In the Indian context, several factors make employee retention especially significant: • Talent Scarcity: India is home to a large and diverse workforce.However, there is fierce competition for top talent, especially in sectors such as technology, finance, and healthcare.High employee turnover can lead to a talent shortage, making it challenging for companies to find and retain skilled professionals.• High Training Costs: Training and onboarding new employees are costly and time-consuming process.Indian companies invest significant resources in training new hires.When employees leave shortly after joining, organizations face substantial financial losses.• Knowledge and Experience: Many Indian industries, such as IT and pharmaceuticals, require specialized knowledge and skills.Retaining experienced employees is crucial for maintaining institutional knowledge and expertise.Losing experienced staff can hinder a company's ability to innovate and compete effectively.• Cultural Diversity: India's workforce is culturally diverse, with various languages, religions, and traditions.Building a cohesive team that respects and understands this diversity takes time.High turnover can disrupt team dynamics and hinder collaboration.• Employee Loyalty: In India, loyalty to the organization is highly valued.Companies that prioritize employee retention tend to foster a culture of loyalty and commitment, which can positively impact productivity and organizational stability.• Cost Savings: It is often more cost-effective for organizations to retain existing employees than to recruit and train new ones.High turnover results in recruitment, training, and administrative costs, which can strain an organization's budget.• Reputation and Employer Branding: In the age of social media and online reviews, a company's reputation as an employer can significantly impact its ability to attract and retain talent.High turnover rates can damage an organization's reputation and make it less attractive to prospective employees.• Employee Engagement: Engaged employees are more likely to be productive, creative, and committed to their work.High turnover rates can disrupt employee morale and engagement, leading to decreased performance.• Regulatory Environment: India has various labour laws and regulations that affect employment practices.High turnover can lead to legal and compliance challenges, potentially resulting in fines or legal disputes.• Global Competition: Many Indian companies operate on a global scale, and retaining talent is crucial for remaining competitive in the international market.Losing talented employees to global competitors can be detrimental to a company's growth.• Long-Term Growth: For organizations with a long-term vision for growth and expansion, employee retention is essential.Stable teams that work together cohesively are more likely to contribute to sustained growth and success.
In summary, employee retention in India is not just a matter of reducing turnover; it's a strategic imperative.It impacts a company's ability to attract, develop, and retain top talent, manage costs, maintain a positive workplace culture, and achieve long-term growth and stability.Therefore, organizations operating in India should prioritize effective employee retention strategies to remain competitive and successful in this dynamic and diverse market.Using Machine Learning Approach," featured in the book "Machine Learning and Autonomous Systems," introduces a machine learning approach to predict employee retention models.The study focuses on personal features related to work in the ceramic manufacturing industry, employing metrics like F1 score, Accuracy, Precision, and Recall for model identification.7. Dash's 2019 book, "Employee Retention in a Globalised Economy: The Case of India," addresses the challenges and adversities of employee retention in the context of a globalized economy.The book highlights the shift from commodity-based to intellect-based practices in the market, offering insights into retention strategies to mitigate turnover rates.8. Ranga, Gahlawat, and Kundu's chapter in the 2014 book "Business Management: Current Research Issues," titled "Employee Retention Practices in India: A Study of Employees' Perceptions," emphasizes industry-specific employee retention practices.The study, based on nine variables analyzed through Principal Component Analysis, advocates for adaptable strategies grounded in organizational principles like Planning, Staffing, and Organizing for effective employee retention.Hypothesis: "There is a significant relationship between the utilization of industry-specific Key Performance Indicators (KPIs) and the level of employee retention in various sectors in India.It is hypothesized that the effective identification and implementation of KPIs tailored to each industry's unique characteristics will lead to improved employee retention rates."

Objectives of the Study
To identify and analyse the key factors influencing employee retention in India for various industries, it's important to consider a broad range of factors that may impact an employee's decision to stay with or leave an organization.

Methodology
To achieve the objectives, a mixed-methods research approach was employed, combining quantitative surveys and analysis.Data was collected from a diverse sample of industries, including but not limited to technology, healthcare, consulting, and banking, to ensure a comprehensive understanding of the subject matter.The survey with 18 questions was floated electronically and took response of 145 participants across various age groups and industries.
Each macro-Factor and Micro Factor had to be rated on a Likert scale of 1-5, 1 being of least importance and 5 being of highest importance.A cumulative Excel sheet was made and then the data set was further analysed in software like Microsoft Power BI. Taking into considerations the various micro factors the visual data analysis was done and an average rating of all industries was taken individually in the form of Stacked bar graphs.A pie-chart was made based on the rating given by the respondents for the Macro -Factors.The microfactors were further categorized as Hygiene Factors and Motivation factors based on Hertzberg's Two Factor Theory.These two factors were segregated industry-wise.Past Performance of Organisation Type of Engagement Industry wise average of all the micro factors with respect to Hygiene factors and Motivation factors were taken and plotted as per the Hertzberg's Two Factor Theory Model Graph.The average was calculated using the formula as below: -Average rating of Hygiene Factors/Motivation Factors for a particular industry= Sum of rating of micro-factors÷ (No. of respondents X No. of micro factors identified (Hygiene or Motivation)) Using a scatter plot on excel, Hygiene Factors were plotted on the X-Axis and Motivation Factors were plotted on the Y-Axis for each industry separately.Microsoft Power BI is a business analytics tool designed to facilitate data visualization and analysis.This tool enables users to connect to diverse data sources, perform data transformation and cleaning, and generate interactive dashboards and reports.Widely embraced by businesses of varying sizes, Power BI stands out for its user-friendly drag-and-drop interface, extensive feature set, and cloud-based accessibility, allowing users to retrieve data and reports from any location.Moreover, Power BI offers affordability with various pricing options and provides mobile apps for iOS and Android, ensuring convenient on-the-go access to data.Some key advantages of Microsoft Power BI include its intuitive interface, comprehensive feature set for data connectivity and analysis, cloud-based architecture, budget-friendly pricing, and mobile accessibility.Illustrative applications of Power BI encompass sales analysis for monitoring performance across regions, products, or sales teams; marketing analysis to gauge campaign effectiveness; customer analysis for insights into demographics and behavior; financial analysis to track revenue, expenses, and profits; operational analysis for enhancing efficiency; and human resource analysis to identify factors crucial for employee retention.The primary objective of this research is to identify and analyse the KPIs that are most relevant in various industries.Different sectors may prioritize distinct factors influencing employee retention, and this study seeks to uncover these industry-specific variations.The dominant age group that was found in the questionnaire irrespective of gender, type of engagement, type of employment, location and industry was in between 31-35 years.The most important micro factors in this sector are:

Detailed analysis of IT industry
• Leadership/ Management and Reputation of Organisation with an average rating of 4.17 • Freedom to use one's skill, job stability and leave policy have an average rating of 3.86 • Compensation structure takes in a third place at an average rating of 3.71

Analysis as per Hertzberg's Two Factor Theory
It was seen that, the average values for hygiene Factors and Motivation factors for each industry is as follows:   Few factors which were analysed and summarised from the Employee point of view are as follows: • The most common Micro factor in females was Reputation of the Organisation they are working in.
• The most common Micro factor in male were found to be the freedom to use one's skill and put it to use at the workplace.• The most important Macro-Factor all throughout the industries was the Personal Factors with an average 65.2% • The most prevalent industry in the survey was the IT industry, followed by Education and Banking.
• The least favoured micro-factor, i.e. the factor which mattered the least for the retention of employees was the Travelling to Overseas for work.

Summary for Hertzberg's Two Factor Theory Application based Study for various Industies
Based on the analysis done following are the findings pertaining to the Hertzberg Two factor theory: • Pharmaceutical Industry is rated highest in terms of both Hygiene and Motivation factors and thus is placed at best in the Hertzberg Two Factor theory model graph in comparison to other industries.• Consulting Industry follows pharmaceutical industry in terms of the rating on Hygiene and Motivation factors.As a recommendation, Consulting industry can work on improving motivation factors to boost employee engagement.This can be achieved by providing challenging projects, recognition, and opportunities for career advancement.

Figure 1 :
Figure 1:Average annual resignation rate for organizations across India in FY 2018, by sector (Source: Statista) Literature Review 1.In her 2017 paper, "Employee Retention Models and Factors Affecting Employees Retention in IT Companies," Kaur Raminder delves into the crucial elements influencing employee retention within

Figure 2 :
Figure 2: Demographic Profile of Participants

Figure 4 :
Figure 4: Average rating of attributes for Male participants

Figure 6 :Figure 7 :
Figure 6: Average rating of attributes for Female participants

Figure 8 :Figure 9 : 11 Figure 11 :Figure 12 :
Figure 8: Demographic details of IT industry People from the IT industry was the most dominant.A total of 40 people (13 male, 27 female) out of 145 took the questionnaire belonged to this industry.The most important Macro -Factor for retention of employees in the IT industry is the Personal Factors (72.5%)

Figure 13 :Figure 14 :Figure 15 :
Figure 13: Average rating on attributes for Education Industry (Total Population) Overall, the 3 most voted micro factor for the Education sector are as follows-• Reputation of Organisation with an average rating of 4.43, • Job stability (4.10), • Past performance of the organisation and Leave policy like Maternity leave, Paternity Leave (4.00)

Figure 17 :
Figure 17: Average rating on attributes for Banking industry (Total Population)

Figure 19 :Figure 25 :
Figure 19: Average rating on attributes for Banking industry for Male Participants

Figure 29 :
Figure 29: Average rating on attributes for pharmaceutical industry for Total Population

Figure 30 :Figure 33 :Figure 35 :
Figure 30: Average rating on attributes for pharmaceutical industry for Female Participants

Figure 37 :
Figure 37: Average rating on attributes for manufacturing industry for total participants

Figure 38 : 50 Figure 39 :Figure 41 :Figure 43 :
Figure 38: Average rating on attributes for manufacturing industry for Female participants

Figure 44 :
Figure 44: Macro factors responsible for retention

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Retail Industry is the least preferred industry as per the employees.It has lowest hygiene factor and motivation factor amongst other industries.The industry should Prioritize both hygiene and motivation factors to enhance employee satisfaction.Address issues related to job stability, reassurance, and well-being.Implement training programs to improve skill sets • Per inspection and analysis done on Figure1obtained through secondary research, it was observed that the annual resignation rate for IT, Banking and Retail industry was 14.6%, 17.8% and 18.5% respectively.The Hertzberg Two factor theory model graph plotted follows the same trend where it was determined that IT is placed higher with respect to Banking and Retail in terms of Employee retention because they IT industry has higher Hygiene and Motivation factors.•5.AppendixThe survey questionnaire floated for the primary research is attached below survey questionnaire.pdf 6. Acknowledgement I would like to express my heartfelt gratitude to everyone who supported and guided me throughout this project.Special thanks to my mentor, Mrs Rachita Singh, Faculty, Department of Human Resource Development, DSSC, Wellington, for her invaluable guidance and feedback.Thank you to all those who played a part in the completion of this project.Your guidance and support were truly appreciated.7.References1.Milkovich, G.M., & Newman, J.M., (2004) compensation, 8th edition, Irwin McGraw-Hill, Burr Ridge 2. Dr. V. Antony Joe Raja and R. Anbu Ranjith Kumar.A Study on Employee Retention in Education Sector in India.International Journal of Management, 7(3), 2016, pp.01-11.3. Beer, M and Walton, E (eds) (1989) Reward systems and the role of compensation.Harvard Business Review Book 4. Diane A (2001), The Employee Recruitment and Retention Handbook: Amacom Books 5. Carsen A.J., HR How To: Employee Retention, CCH Knowledge point.Publication (2005) Pg no.10 -12,17 6. Roger W. Griffeth and Peter W. Hom (2001).Retaining Valued Employees, Sage Publications, Inc., Thousand Oaks, CA. p. 2. 7. International Journal of Business Administration and Management.ISSN 2278-3660 Volume 7, Number 1 (2017), © Research India Publications 8. Gorde, Ulhas, Sangita, Dr, (2019) 'A study of Employee Retention' 9. Krishnaraj, R., Suresh, Latha (2015) 'A study on the importance of employee retention in pharmaceutical sector in India 10.Zacharia, Minu, T., N., Roopa, Dr, (2018)-'A study on Employee Retention factors influencing IT Professionals of Indian IT Companies and Multinational Companies in India"

Table 2 : Kaiser-Meyer-Olkin Measure of Sampling Adequacy
The Kaiser-Meyer-Olkin (KMO) Test assesses the suitability of your data for Factor Analysis by measuring sampling adequacy for individual variables and the overall model.It gauges the proportion of shared variance among variables.Lower proportions suggest greater compatibility with Factor Analysis.KMO values range from 0 to 1, and a general interpretation is as follows:• KMO values between 0.8 and 1 indicate adequate sampling.•KMOvalues below 0.6 signal inadequate sampling, requiring corrective measures.•KMO values approaching zero imply extensive partial correlations relative to total correlations, posing challenges for factor analysis due to widespread correlations.Bartlett's Test for Sphericity compares your correlation matrix with the identity matrix, examining redundancy between variables that could be summarized by factors.

Table 3 :
Industry-wise average rating of Hygiene and Motivation Factors