[Chaurasia *, 3(5), 2016] ISSN 2349-6193 Impact Factor (PIF): 2.243 IJESMR International Journal OF Engineering Sciences & Management Research http: // www.ijesmr.com © International Journal of Engineering Sciences & Management Research[65] A STUDY TO IDENTIFY THE FACTORS AFFECTING EMPLOYEE TURNOVER IN SMALL SCALE INDUSTRIES Rajdeep Chaurasia*, Dr. Devendra S. Verma * Department of Mechanical Engineering, IET DAVV, Indore, Madhya Pradesh, India Department of Mechanical Engineering, IET DAVV, Indore, Madhya Pradesh, India DOI: 10.5281/zenodo.51150 KEYWORDS: Job satisfaction, Commitment, Small scale industries, Indore. ABSTRACT Now-a-days small scale industries play a very vital role to develop the economy of the country. In this vital segment of Indian economy i.e. a developing country, these types of industries becomes more crucial although Employees and technology are the backbone of any organization that’s why in many studies most of the researchers pointed out the causes of employee turnover time to time with the help of various factors. This study looks in order to build-up efficient and healthy environment for work force and prepare them to commit with the organization with full of satisfaction. In this study it contains two vital areas that first one is Parameters that related with job satisfaction and second one is commitment of employees in small scale industries in Indore location particularly that either they are thinking about to leave the organization and if yes then why? For the purpose to collect data there are some factors that directly connected with Quality of wok life and give us a dozen different parameters regarding job satisfaction and secondary data collected from various journals, website, newspapers and research papers. In view of the large number of SSI in Indore district, a sampling method accepted. INTRODUCTION Employees and technology are the backbone of any organization. Employee turnover is the rate at which employee’s leaves a company and have to be replaced by a new or existing staff. Employee turnover is the rotation of workers around the labor market between firms, jobs and occupation and between the states of employment and unemployment (Abassi & Hollman, 2000) Employee turnover either voluntary or involuntary. Voluntary refers to termination on the will of employee’s hand and involuntary turnover refers that employees has no choice in the termination (Heneman, 1998). Boxell et al (2003), in New Zealand said that the view that motivation for job change is multidimensional and that no one factor will explain it. However over the time there are various factors comes out that really affect the turnover and help the Human Resource department to reduce the employee turnover and save a lot of money. Our developing country India has about 4.22 crore industries working in which around 60% industries are small scale industries and Their investment in plant is between 25 lack to 5 crore and contribute around 40% if total Indian economy that is comes from industries, Hence the SSI not only provide the employment but contribute a heavy amount of GDP in Indian economy. ABOUT INDORE DISTRICT OF MADHYA PRADESH As we all know about Madhya Pradesh is the Heart state of India and Indore is the Industry hub of MP also called Mini Bombay, having around 70% industries of MP is in Indore in which 90% are small scale industry situated in Indore only, So in this study we try to find out the most affecting parameter that related with employee turnover and increase the cost in SSI in Indore and where they are lagging behind. LITERATURE REVIEW A. JOB SATISFACTION JOB STRESS Bilau et al,[1] found that when employees voluntarily leaves the company then extra expense including recruiting, hiring and training cost introduced for a replacement employee and until the vacancy is filled , the extra burden comes on the existing employees due to excess workload on their shoulder, Hence additional turnover take place (Herman, 1997; Mcconnel 1999; Richardson, 1999)[10]. Laxminarayan’s [14] study found that job stress results an ample amount of job dissatisfaction, this further results the lack of commitment in the organization and job dissatisfaction results to quit [13].