The purpose of the study is to identify and analyse the influence of motivational factors on the employee retention and it effectiveness of the Information Technology companies. Based on various literature reviews the study identified Salary, Work Environment and Job Autonomy as the Motivational Factors for employee retention. The data for the study had been collected from 100 employees working in different Information Technology companies situated in Chennai city. Using Chi-Square analysis it was found that the motivational factors revealed some statistically significant difference in relation to the personal profile of the employees. Employee’s choices of motivation factors may differ according to their culture, position in the organization and other personal profile.

KEY WORDS: Motivation, Motivational Factors, retention, performance level.