Why Do Employees Seek Alternative Employment and What Makes Them Stay: The Case of Indian IT Industry‪.‬

Introduction Today, more than ever, serious attention, resources, strategy and planning must be given to how to retain the good employees. If the company has good employees, it is worthwhile to do what's necessary to keep them. Once identified, good employees are too valuable to lose. Studies show that the cost of replacement and training of an employee ranges from 50 percent to 200 percent of his annual salary. Thus there is a significant economic impact when an organization looses any of its critical employees, especially given the knowledge that is lost with the departure of an employee. But a proficient manager knows the cost is really much greater. When a business looses employees it looses skills, experience and 'corporate memory'. The magnitude and nature of these loses is a critical management issue affecting productivity, profitability and product and service quality. For employees the high turnover can negatively affect employment relationships, morale and work place safety. 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. The competition is often keen, offering greener pastures with tempting incentives and the top talent has choices.