Equity shares are increasingly utilized by companies to retain talent
and align employee interests with organizational goals. Large-cap
stocks, due to their stability and growth potential, offer a unique context
for evaluating this retention strategy. Despite their widespread use, the
effectiveness of equity shares offerings in retaining employees at large-
cap companies remains underexplored. Understanding the impact of
such equity incentives on employee retention and the associated
financial metrics is crucial for optimizing retention strategies. This
study employs an Analysis of Variance (ANOVA) to examine the
impact of different equity share offerings on employee retention across
several large-cap firms. Data were collected from 100 companies, with
employee retention rates and equity share allocations analyzed over a
five-year period. ANOVA was used to assess whether variations in
equity share offerings significantly affect retention rates. The ANOVA
results indicate that equity share offerings have a statistically
significant impact on employee retention (F(3, 96) = 4.67, p < 0.01).
Companies offering higher equity shares showed an average retention
rate of 87%, compared to 73% for lower equity share offerings. The
findings suggest that more substantial equity incentives are associated
with improved employee retention.
Anil Kumar Yadav
Rajasthan Technical University, India
Equity Shares, Employee Retention, Large-Cap Stocks, ANOVA, Retention Strategies
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| Published By :
ICTACT
Published In :
ICTACT Journal on Management Studies
( Volume: 10 , Issue: 3 , Pages: 1742 - 1745 )
Date of Publication :
August 2024
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29
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