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Abstract
In today’s dynamic business environment organization are competing with each other to increase their share in market. Human Resource is a vital to achieve a competitive edge. Potential employees always lead organization to success. Hence employee retention has become a crucial function in human resource management. This paper focuses on the factors affecting and influencing employee retention in IT Organizations. Changing technology, organizational goals and objectives, globalization, economic conditions, trade practices affect the employee and employer relations. Changing equations between employee and employer are due to changes in business environment. These changes directly and indirectly affect the organization culture and employee retention.