Human resources are of great importance for any organization. The success of every business depends upon the effectiveness of its workforce. Companies use different ways to improve the effectiveness of its employees. For example, training programs, employee empowerment, motivation, rewards and recognitions etc. Despite of investing so much in the employees, many companies face high employee turnover rates. A high rate of employee turnover can cost a company in the long run, more than they might realize.

Employee turnover occurs when employees leave their jobs voluntarily and must be replaced. (Price 1977, p.15) also defines turnover as “The ratio of the employees of an organisation who left in a particular period of time with the average number of employees in that organisation during the same period of time”. Michael Armstrong (2006) defines Employee Attrition as a normal flow of people out of an organization through retirement, career or job change, relocation, illness etc.

The main purpose of this research is to comprehensively analyse the employee turnover in one of the India’s largest IT company- INFOSYS. Infosys is Indian based multinational company, which provides business consulting, software engineering, information technology and outsourcing services. According to recent data, its market capitalization is $38.53 billion. (INFOSYS, 2017) Despite of high revenue, the company is facing high attrition levels. According to India Infoline News Service, “Infosys’ attrition rate has increased on a YoY basis, as in FY17, a total of 37,915 people left the company, which is higher in comparison to the previous year. While for the year ended March 2017, the consolidated attrition rate from the company was at 19.2% as compared to 18.7% for the year ended March 2016.” The forever increasing employee turnover rate is proving to be a costly and time-consuming affair for Infosys and a major obstacle in becoming one of the most successful IT company.

How to reduce employee turnover in Infosys?

What are the key factors that contribute to employee turnover?

·        Determine current levels of employee turnover rate in Infosys.

·        To identify the main causes of employee turnover in Infosys.

·        How to increase the satisfaction level of employees in order to develop and maintain long lasting relationships.

·        To eliminate the causes so as to reduce employee turnover and increase the possibilities of employee retention.

Subject area – Human Resource Management

Key theoretical framework – The department of human resource in any organization is responsible for selecting the right candidate for right job.  Training them, motivating them to increase the employee retention. This research will help the HRM department of Infosys to eliminate the causes leading to high employee turnover. The model below will be taken as the base for research question, where Employee turnover is the dependent variable and organizational factors, external factors, personal factors are independent variables.