Evaluating the Factors Affecting the Employee Retention Strategy in Pharmaceutical Companies

Abstract

The employee retention is being an emerging concept in the branches of Human Resource Management (HRM). The employee retention concept seems to be expensive and it is not globally adopted by all the pharmaceutical companies. The companies need to be aware of the value of efficient employees and their contribution to the economic growth of the companies. The primary aim of the management should be the employee retention which will enable the companies to reap benefits on the long run. As per various government and association medical representatives’ reports, the employee attrition rates in the pharmaceutical companies are high when compared to various sectors. This will create high level of mismatch between employee demand and supply for the medical representatives. The objective of the research study is to identify the various factors that are influencing the employee retention and also examine the various inter-relationships that exists among those factors. An empirical study is performed to collect the data from the 128 medical representatives in Salem, Tamilnadu, India through self-administered questionnaires method. Convenient sampling technique is adopted. The research performs a quantitative analysis using the SPSS version 23 software package and also determine percentage analysis as well as factor analysis. Structural equation modelling are used to analyse factors such as Monetary Rewards, Work Pressure and Performance and other Perquisites which influences employee retention of pharmaceutical companies. The outcome of the study reveals that there exists a high level of inter-relationship among these factors which have significant impact on the employee retention.