August 10, 2025Open Access

The Role of Organizational Culture in Employee Retention: A Study of Service Sector Organizations of Chhattisgarh

Key Points

A strong positive correlation exists between organizational culture and employee retention, indicating a significant influence on staff commitment.
Learning culture was identified as the most important predictor for retention, showing the necessity for development opportunities within organizations.
Assessments utilized a mixed-methods approach to explore cultural dimensions, illustrating the multifaceted nature of employee retention.
Practical insights from the research highlight the importance of inclusive, adaptive cultures in reducing turnover intent across diverse service environments.

Abstract

This study investigates the influence of organizational culture on employee retention within the service sector of Chhattisgarh, India. By employing a mixed-methods approach, the research examines the impact of cultural dimensions such as learning opportunities, leadership trust, inclusivity, and cultural fit. Quantitative results reveal a strong positive correlation (r = 0.76) between overall organizational culture and employee retention, with learning culture (r = 0.79, β = 0.29) identified as the most significant predictor. Leadership trust (r = 0.74), inclusivity (r = 0.71), and cultural fit (r = 0.68) also demonstrated notable influence on employee commitment and satisfaction. The study’s findings emphasize that a development-oriented, inclusive, and adaptive culture significantly enhances retention and reduces turnover intent. The research offers practical insights for HR professionals to implement culture-driven retention strategies, particularly in diverse and evolving service environments such as banking, IT, and hospitality. Keywords: Organizational Culture, Employee Retention, Inclusivity, Leadership Trust, Learning Culture, Chhattisgarh, Service Sector, HRM Strategies

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