Employee retention practices of automobile industries in India

Abstract

The Indian Economy has witnessed a tremendous improvement over last two decades The Indian Government has permitted to enter Multinational Corporations in India with which the opportunities for professionals have arisen A project on skill development was launched by the Government of India and the European Union in New Delhi on 23 May 2012 The main objective of forming this project is to develop a relevant curriculum and also to provide possible employment streams so that there will be no unemployment problem and all the labour force will be utilized As such the automotive industry of India is one of the largest in the world and of the fastest growing business sector The compound annual growth rate of Indian automobile Industry from 1951 till 1991 was 14 70 and it was growing rapidly after economic liberalization and globalization s as a result Industry has seen a rising attrition ratio in almost any form of Business Therefore retention of the existing employees is both important in terms of economy and performance of human resources This study empirically examines the relationship between employee retention practices and factors that influence the employee to remain in the Automobile Industries in India Employee retention refers to policies and practices companies use to prevent valuable employees from leaving their jobs Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the given project newline