Abstract
The increasingly competitive nature of commerce in an era of globalisation
necessitates that, in the current market conditions, businesses will be required to
retain skilled staff to ensure a competitive edge or even the survival of the businesses.
However, recent studies have shown that employee turnover has been regarded as a
key issue for both businesses and Human Resources (HR) professionals, and as a
result, is having a direct and indirect economic impact on the profitability, knowledgesharing,
and performance of various firms. Thus, this study aims to determine the most
effective retention strategies in reducing employee turnover for an Information
Technology (IT) consulting firm in Johannesburg, South Africa.
The study used a qualitative data collection technique through 15 semi-structured
interviews, allowing the researcher to gain an in-depth understanding of participants’
lived experiences to assist in addressing the research problem statement. The data
was analysed through an eight-step content analysis process to allow for subjective
interpretation to identify patterns and themes within the transcript and is representative
of hermeneutic analysis as the researcher is trying to interpret the meaning implied
behind the textual data. In terms of the study’s findings, three main themes emerged,
these being the importance of financial incentives, an absence of feedback
mechanisms, and the imperative nature of flexible working arrangements, which can
have a direct effect on employee turnover.
Therefore, this study has put forward several recommendations that a firm can adopt
to reduce employee turnover, such as the introduction of formal feedback
mechanisms, the use of online platforms to allow personalised compensation
packages, and a tiered system that can improve monetary incentives. If a business
can improve in these areas while reviewing retention as an ongoing and continuous
process requiring adaptation to the evolving preferences of employees, then a firm will
be able to reduce financial and operational burdens regarding high turnover rates.