A Study on Impacts of Reward and Recognition on Employee Retention at INFOSYS

Abstract

Employee retention has emerged as one of the most critical human resource challenges facing multinational information technology corporations. In an industry characterised by intense talent competition, high attrition rates, and significant knowledge capital embedded in experienced employees, the design and implementation of effective reward and recognition programmes constitute a key strategic lever for workforce stability. Infosys Limited, one of India's largest IT services companies, employs over 340,000 professionals globally and operates in an environment of persistent talent demand from domestic and international competitors. This study examines the impact of reward and recognition practices on employee retention at Infosys, focusing on how monetary rewards, non-monetary recognition, career advancement opportunities, and managerial appreciation behaviours influence employees' intention to remain with the organisation. A structured questionnaire was administered to 150 employees across technical and managerial grades. Data analysis employs percentage analysis, weighted average ranking, and chisquare tests. Findings reveal that career growth opportunity, performance-based monetary rewards, and managerial recognition are the top three retention drivers, while inadequate recognition and limited growth pathways are the leading disengagement factors. Recommendations include a structured recognition framework, transparent performance-linked compensation, and leadership development in appreciation practices.