Factors relating to the retention of skilled employees in an information and communication technology (ICT) company

Abstract

The present study is an analysis of retaining skilled and talented employees. It examines staff turnover rate and retention strategies that companies could use in order for them to have good employee satisfaction. The reason for conducting this study is that many companies battle to retain skilled and talented employees as they do not know the reasons behind the employees leaving the organisation. The present study examines staff turnover rate and retention for a period of two years in one selected JCT Company in South Africa. In order to attain the objectives of the study, an initial literature review was undertaken on the general concept of retaining skilled and talented employees, staff turnover, the costs associated with staff turnover, the reasons for employees leaving an organisation and the reasons for employees choosing to remain with an organisation. A second tier of literature review was done on the impact of employee retention, as well as the responsibility for managing the retention of skilled and talented employees. This was done to serve as a basis for recommending an effective retention strategy for the ICT Company which had difficulties with high rates of staff turnover. In addition, the literature review was used to develop a questionnaire that had three (3) sections that looked at different reasons for high staff turnover. This questionnaire was administered to employees of the ICT Company. The data extracted from the questionnaire revealed that there is a high staff turnover rate in the company, for which there are three common reasons. The three are salaries, a desire to take on a new challenge and a lack of opportunity for advancement. A consideration of these reasons forms the foundation for recommending an effective retention strategy suitable to the ICT Company. The data collected could guide the organisation on implementing an improved system beneficial for all the employees in the future. Lastly, recommendations are given on an appropriate retention strategy that is appropriate for the selected ICT Company.