An Investigation of the factors that influence IT engineers’ job retention in global IT companies operating in Sri Lanka

Abstract

With the rapid growth of Sri Lanka's IT business, particularly in software development, digital marketing, IT consulting, and related industries, understanding the factors impacting employee retention has been crucial. While research on employee retention in the IT sector exists, there is a noticeable gap in the literature about the Sri Lankan IT sector, particularly the retention of global IT companies operating in Sri Lanka. The study aims to address the gap by investigating the factors that influence retention among IT engineers in global IT companies operating in Sri Lanka. The study defines retention as the dependent variable and financial benefits, career development opportunities, work environment, and work-life balance as independent variables. Data analysis includes descriptive analysis, correlation analysis, hypothesis testing, and regression analysis to determine the correlations between the factors and identify the degree of their impact on employee retention. The findings suggest, that there is a strong positive significant relationship between retention and financial advantages, career development opportunities, work-life balance, and work environment. Financial benefits was identified as the most influential factor in employee retention, followed by career advancement, work-life balance, and the workplace. Based on the findings, key retention strategies are recommended for organizations including (a) Competitive compensation packages, (b) Employee well-being programs, (c) Performance-based incentives, (d) Professional development investments, and (e) Recognition and rewards. The study highlights the potential for more research to examine other aspects of retention, including the influence of DEI (Diversity, Equity, and Inclusion) programs and organizational culture in the IT industry