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Study on Determining Factors of Employee Retention



Employees are the most valuable assets of an organization. Their significance to organizations calls for not only the need to attract the best talents but also the necessity to retain them for a long term. This paper focuses on reviewing the findings of previous studies conducted by various researchers with the aim to identify determinants factors of employee retention. This research closely looked at the following broad factors: development opportunities, compensation, work-life balance, management/leadership, work environment, social support, autonomy, training and development. The study reached the conclusion that further investigations need to be conducted regarding employee retention to better comprehend this complex field of human resource management.
Open Journal of Social Sciences, 2016, 4, 261-268
Published Online May 2016 in SciRes.
How to cite this paper: Kossivi, B., Xu, M. and Kalgora, B. (2016) Study on Determining Factors of Employee Retention.
Open Journal of Social Sciences, 4, 261-268.
Study on Determining Factors of
Employee Retention
Bodjrenou Kossivi1, Ming Xu1, Bomboma Kalgora2
1Glorious Sun School of Business and Management, Donghua University, Shanghai, China
2School of Economics and Management, Shanghai Maritime University, Shanghai, China
Received 24 March 2016; accepted 27 May 2016; published 30 May 2016
Copyright © 2016 by authors and Scientific Research Publishing Inc.
This work is licensed under the Creative Commons Attribution International License (CC BY).
Employees are the most valuable assets of an organization. Their significance to organizations
calls for not only the need to attract the best talents but also the necessity to retain them for a long
term. This paper focuses on reviewing the findings of previous studies conducted by various re-
searchers with the aim to identify determinants factors of employee retention. This research
closely looked at the following broad factors: development opportunities, compensation, work-life
balance, management/leadership, work environment, social support, autonomy, training and de-
velopment. The study reached the conclusion that further investigations need to be conducted re-
garding employee retention to better comprehend this complex field of human resource manage-
Human Resource, Employee Retention, Determining Factors
1. Introduction
Employees have been important resources to any organization. Based on their critical character, they can be
termed the life-blood of an organization. Advancement in technology has caused most organizations to be more
and more technology driven. However, this situation does not reduce the value of employees in an organization
because technology requires human resources to operate. With issues such as globalization, competition is be-
coming keener and keener in most industries. This situation also affects the job market in the sense that organi-
zation demand in human resources to remain competition in their respective industries is higher. To remain more
competitive, organizations need therefore not to only attract the best talents but also to retain them on the job for
a long term. The toughest challenge that organizations encounter nowadays is not only how to manage the
B. Kossivi et al.
people but also how to keep them on the job as long as possible and how to maintain them vigorous and ambi-
tious. This study focuses on employee retention.
Employee retention is concerned with keeping or encouraging employees to remain in an organization for a
maximum period of time [1]. Mita (2014) defined employee retention as “a technique adopted by businesses to
maintain an effective workforce and at the same time meet operational requirements” [2]. Bidisha (2013) de-
scribed it as “a process in which the employees are encouraged to remain with the organization for the maxi-
mum period of time or until the completion of the project” [1]. According to Workforce Planning for Wisconsin
State Government (2015), employee retention is “a systematic effort to create and foster an environment that
encourages employees to remain employed by having policies and practices in place that address their diverse
needs” [3].
The objective of this literature review study is to analyze researches previous carried out in the field of em-
ployee retention to identify determining factors that are commonly identified by various researchers as the basis
of their decision to stay in the organization.
In the course of this research which is descriptive in nature, secondary source has been used. The types of
secondary data used are research journals and books. Many researchers approached employee retention using a
group of individual factors such as employee motivation [4], job satisfaction [1], and organizational culture [5].
However, the study analyzed retention on the basis of individual factors basis.
2. Determinants of Employee Retention
2.1. Overview
Back in the 1990s, Fitz-enz (1990) observed that employee commitment and retention is not determined by a
single issue but by a cluster of factors [6]. In previous researches a number of factors associated with employee
retention have been identified. Factors that are commonly cited are developmental opportunities and quality su-
pervision, job stress and colleague stress [7]; compensation and appreciation of work done, provision of chal-
lenging work, promotion and development chances, attractive atmosphere within the organization, relationships
with colleagues, work-life balance, communication [8] and supervision [9].
According to Ghapanchi and Aurum (2011) retention factors include remuneration and benefits, training op-
portunities, fair and equal treatment, organizational culture [10]. While Allen and Shanock (2013) stressed on
relationship with colleague socialization [11], Andrews and Wan (2009) emphasized on management style and
leadership to increase an organization retention capability [12]. A group of researchers led by Loan-Clarke
(2010) noted autonomy, work-schedule flexibility and social support help organization to keep their employees
for a longer period of time [13]. Christeen (2014) identified eight retention factors: management, conducive en-
vironment, social support and development opportunities, autonomy, compensation, crafted workload, and
work-life balance [14]. Our analysis of individual factors is mainly based on the work Christeen. In our opinion,
the “crafted-sculpted workload” falls under management and leadership because it is the responsibility of man-
agement to allocate work according to the abilities of the job holder and few studies identified it as a determin-
ing factor. However, “training and development” was added on the basis of the papers we studied.
2.2. Development Opportunities
Professional development is not a least retention cause. Hiltrop (1999) related perceived careers success and or-
ganization ability to make employees stay in their jobs [15]. Personal and professional growth is a determining
factor of retention and promotion opportunities increases employee commitment to stay [16]. Rolfe (2005) dis-
covered a direct correlation between job resignation and issues related to career development [17]. Arnold
(2005), Herman (2005) also observed direct relationship between development opportunities and retention [18]
[19]. Prince (2005) also identified promotion and opportunities for growth as a significant reason for which em-
ployees decide to leave or stay in an organization and went further by identifying influential factors pertaining to
career growth opportunities, which are: advancement plans, internal promotion and accurate career previews
[20]. Retention is high where continued learning is not encouraged [21]. Daniels and his research colleagues as-
serted that promotion positively influences retention [22]. In organizations where the proper training is given to
employees, retention rates are high [23]. Tymon and his co-researcher, and Pitts and his research team linked
perceived career success and retention [24] [25]. Cardy and Lengnick-Hall (2011) on the one hand and Kroon
B. Kossivi et al.
and Freese (2013) on the other hand discovered that developmental opportunities can positively increase an em-
ployee’s commitment to stay in an organization [26] [27].
2.3. Compensation
The relation between pay and retention has been the subject of many studies. Researchers are not unanimous
about the impact of pay on retention. For some, satisfaction with pay strongly correlates with the employee de-
cision to stay in the organization. For others, pay does not have a direct influence on retention. In 1997 Trevor
and his research team established that rise in pay increases retention capabilities of organizations [28]. Davies,
Taylor, Savery (2001) are of the same viewpoint and observed that organizations, particularly those in the ac-
commodation industry in Western Australia, do not make use of salary and benefits policies to increase retention
[29]. Lambert, Lynne and Barton also reached the same conclusion in a latter research they conducted [30].
Transparency of pay decisions have been cited as a booster of retention [16] [31]. Gardner, Van Dyne, and
Pierce (2004) did not see pay as only a motivator but also a retention technique [32]. Hytter (2007) reached the
conclusion that there is correlation between retention and reward [33]. Milkovich & Newman (2004) were more
specific. They viewed monetary pay among all kinds of compensation as the most relevant factor in maintain
employee [34]. Performance related pay has been identified as retention facilitator [35]. In 2006, team of re-
searchers led by Tremblay also observed that performance related-pay is a retention facilitator [36]. According
to Hausknecht, Rodda and Howard (2009) extrinsic rewards (amount of pay and other benefits) are contributors
of employee retention [37]. Pitts, Marvel and Fernandez (2011) observed that compensation is predictor of em-
ployee turnover [25]. Moncraz, Zhao and Kay (2009) were specific about the category of the workforce that re-
ward affects most. They noted that pay reduces turnover and increases commitment among managers [23].
Shields & Ward (2001), Gifford, Zammuto and Goodman (2002), and Hayes et al. (2006) noted that reward
on its own does not constitute an important retention factor. Improved compensation can only increase retention
capability in a short-term. For organizations to be more efficient in their attempt to make more employees stay
in the organization for a long period improved compensation should be coupled with quality of work life which
this group of researchers identified as a long-term factor [38]-[40]. Ellenbecker (2004) demonstrated that wage
rates, especially among nurses, only have remote impact on retention [41].
2.4. Work-Life Balance
Work-life balance is becoming gradually more central for employees and tends to affect employees’ decision to
stay in organization. Nowadays employees long for flexible work schedules which allow them to take care of
both their personal and professional life [41]. The balance between personal and professional lives is determined
by the amount of sacrifice the individual is ready to make at the expense of other areas of life. Loan-Clarke, Ar-
nold, Coombs, Hartley, and Bosley (2010) observed that a job that gives the holder the possibility to fulfill
his/her family responsibilities increases employee retention [13]. Some employees first focus on the professional
career and subsequently devote more time to other areas of their lives which was named the phenomenon of
“downshifting” [42]. Kyndt, Dochy, Michielsen, and Moeyaert (2009) laid emphasis on the significance of a
healthy balance” [43]. As far as relationship between retention and work-life balance is concerned, Lener,
Roehrs, and Piccone (2006) are of the view that employers should implement a “harmonious” balance to im-
prove retention [44]. Osman (2013) found that offering emotional support to employees through work-life bal-
ance reduces their intention to quit their job [45]. Mita, Aarti & Ravneeta (2014) observed a direct relation be-
tween employees’ decision to stay and work-life balance [2].
2.5. Management/Leadership
Various studies noted that the way people are managed and the leadership style have direct influence on an or-
ganization ability to maintain its workforce. Eisenberger, Fasolo, Davis-LaMastro (1990) argued that the way
employees view an organization is particularly dependent on their relationship with their supervisor [46]. Mc
Neese-Smith (1995) found that the attitude of a hospital manager increase employee commitment to the organi-
zation [47]. The research of Kaye and Jordan-Evans (2002) laid emphasis on the fact a manager should be “a
good boss” to impact retention positively [48]. Duffield and O’Brien-Pallas (2003) were more specific in the
way leadership and retention correlate and viewed participative leadership style as a contributing factor of
B. Kossivi et al.
employee retention [49]. Kroon and Freese (2013) are also of the view that participative leadership style plays a
significant role in employee retention [27]. Andrews and Wan (2009) were less specific about the particular
style of leadership that positively impacts the capability of an organization to make its employees stay. However,
they noted that management plays a determinant role in employee retention and established that there is a direct
correlation between employee retention and manager behavior. The impact of management on employee reten-
tion can be viewed from two perspectives: leadership style and management support [14]. Involvement of em-
ployee in decision making motivates them to stay in an organization [36]. Noah (2008) observed that participa-
tion in decision-making process makes employees feel they are part of the organization and this increases loyal-
ty and retention [50].
As far as support is concerned, Eisenberger, Stinglhamber, Vandenberghe, Sucharski and Rhoades (2002),
and Paillé (2013) observed that management support is even more important than the organizational one [51]
[52]. According to Ellett, Ellis, Westbrook and Dews (2007) “supportive, quality supervision” and “leadership
that values employees” has a positive impact on retention [53]. Joo (2010) mentioned the fact of being super-
vised in a supportive manner is a contributor to retention [54]. Tymon, Stumpf, and Smith (2011) as well as
Mignonac and Richebé (2013) identified supportive supervision from managers as a contributing factor to em-
ployee retention [24] [55]. Other researchers who observe the same relationship between perceived management
support and retention [9] [16] [25] [56].
2.6. Work Environment
A conducive work environment appears to be an essential factor in employee retention. Spence, Leiter, Day, and
Gilin (2009) gathered evidence supporting the fact that favorable working environment contributes to employee
retention [57]. A conducive environment can be defined as a flexible atmosphere where working experience is
enjoyable, resources are adequately provided. In their respective studies, Alexander, Lichtenstein, Oh and Ull-
man (1998) then Wood and his research team (2013) reached the conclusion that availability of resource can be
a determinant factor in retention [58] [59]. For Ellett,Ellis, Westbrook and Dews (2007) and subsequently
Loan-Clarke and his colleagues (2010), flexibility plays an important role, particularly in the retention of health
workers [13] [53]. For workplace to be a conducive factor of retention it should be enjoyable [16]. The research
of Moncarz and his co-researchers (2009) emphasized that the importance of a fun working environment and
flexibility [23]. It appears that contributing factors of conducive working environment are flexibility, a fun
workplace and availability of resources.
2.7. Social Support
Social support basically relates to the degree of satisfactory relationship with colleagues or fellow employees.
Relationship with co-workers appears to be determinant factor of retention. Alexander and his research team
(1998) and Tai, Bame and Robinson (1998) identified support from co-workers as a contributing factor of reten-
tion [58] [60]. Wells and Thelen (2002) established a direct correlation between good human resource practices
and the ability to gain employees commit and to increase the chances of retaining them [61]. Miller, Erickson
and Yust (2001) noted commitment can be gained by improving feeling of belongingness [62]. Jasper (2007)
carried out a research that revealed that manager-employee relationship is the second most frequent reason why
jobs are quit [63]. Satisfaction with relationship with colleagues or fellow employees was identified as retention
factor [25]. Ramlall (2003) emphasized the fact that identifying and catering for employees’ individual needs
provides a favorable work environment that increases their commitment [64].
2.8. Autonomy
Autonomy “can be seen to be characterized by the ability to choose how to do one’s work; having influence over
one’s work; and flexibility in workload decisions” [14]. Prior to the year 2000, Alexander, Lichtenstein, and
Ullman (1998); Tai, Bame, and Robinson (1998); Boyle, Bott, Hansen, Woods, and Tauntan (1999) related em-
ployee retention to autonomy [58] [60] [65]. Subsequently Ellenbecker (2004); Hart (2005); Tremblay, O’Brien-
Pallas, Viens, Brabant and Gelinas (2006) observed that autonomy on the job is a determinant factor of job sa-
tisfaction and thus to retention [36] [41] [66]. Kooker, Shoultz, and Codier (2007), Andrews and Wan (2009)
identified autonomy as an influential factor of job retention [12] [67]. Spence, Leiter, Day and Gilin (2009) also
B. Kossivi et al.
observed that autonomy on the job influences employee decision to stay in the organization [57].
Ellenbecker (2004) established that there is job strain or lack or control over one’s job contributes to job dis-
satisfaction which in turn impact negatively retention. Autonomy and control work activities leads to job satis-
faction which positively influence retention [46]. Spence Leiter, Day and Gilin (2009) also linked autonomy and
retention through job satisfaction. They observed that autonomy is predictor of job satisfaction [57].
2.9. Training and Development
Messmer (2000) viewed that a key factor to employee retention is training and development [68]. Deery (2008)
observed that on the job training increases retention and commitment [69]. Leidner (2013) is also of the view
that employee loyalty is improved through training and development [70].
3. Conclusion
The need for organizations to retain their talents is crucial for their ability to remain in business depends on it.
Although this study attempted to bring forth all the factors related to employee retention, this complex area of
human resource needs further investigations. Some factors such as organization culture, training and develop-
ment, autonomy are less explored than supervision and leadership for instance. The workforce of an organiza-
tion can be classified into three categories: directors, managers and employees. Existing researches did not lay
enough emphasis on the category of employees, the sector of the economy and the type of businesses that are
particularly affected by one factor or the other, though some studies did. For further investigations to better
equip organizations with knowledge necessary to improve their retention capability are needed.
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... Moreover, Bank Negara Malaysia (2018) stated that job separations in the financial services sector increased significantly from 6,284 positions in 4 th quarter of 2016 to 6,417 positions in 4 th quarter of 2017. Generally, the employee turnover is determined by a cluster of factors (Kossivi, Xu, & Kalgora, 2016). Hofhuis, van der Zee, and Otten (2014) mentioned that the strong dissatisfaction over one or more job aspects will cause the employees' decision to leave their current job, for example, poor employee relations, poor working environment and conditions, mitigating compensation and benefits packages, as well as reducing career development opportunities of employees (Kossivi et al., 2016;Leblebici, 2012;Samgnanakkan, 2016). ...
... Generally, the employee turnover is determined by a cluster of factors (Kossivi, Xu, & Kalgora, 2016). Hofhuis, van der Zee, and Otten (2014) mentioned that the strong dissatisfaction over one or more job aspects will cause the employees' decision to leave their current job, for example, poor employee relations, poor working environment and conditions, mitigating compensation and benefits packages, as well as reducing career development opportunities of employees (Kossivi et al., 2016;Leblebici, 2012;Samgnanakkan, 2016). Consequently, the low job satisfaction will increase the employee turnover intention. ...
The aim of this study is to identify the determinants of turnover intention among bank employees in Kuala Lumpur. Specifically, the objective of this study is to assess the relationships between employee relations, working environment and conditions, compensation and benefit packages, career advancement opportunities and turnover intention. A total of 150 questionnaires were distributed among bank employees in the Masjid Jamek area and the researchers successfully collected 120 questionnaires from the respective respondents. All the data was analyzed using Statistical Package for Social Science (SPSS) 23.0 version. Two types of data analysis were used — descriptive analysis and inferential analysis. Descriptive analysis was used to study the respondent demographic information such as age, gender, education level, length of services, and monthly income level. Meanwhile, the inferential analysis was used to examine the relationships between employee relations, working environment and conditions, compensation and benefit packages, career advancement opportunities and turnover intention. The results show that the relationship between turnover intention and employee relations is weak. However, working environment and conditions, compensation and benefit packages, and career advancement opportunities are moderately correlated to turnover intention among bank employees. Based on a multiple regression analysis, working environment and conditions, and compensation and benefit packages have negative and significant relationship with turnover intention.
... In 2019, the proportion of millennial employees working in the tourism sector reached 60 percent of the total employees recorded at the Bali Province Social and Man-power Office. As a labor-intensive business entity, the hospitality industry experiences fairly high employee turnover (Kossivi et al., 2016;Matthews et al., 2018;Suleiman AlBattat & Mat Som, 2013;Xu et al., 2018). This even happens in start-up companies, which are believed to be companies whose work environment is sought after by millennials. ...
This research aims to explore the work-life balance of millennial hoteliers in the Sarbagita area (Denpasar, Badung, Gianyar, and Tabanan) and its role as a mediator in the relationship between authentic leadership and turnover intention. To answer the objectives of this study, multiple linear regression analysis techniques with the assistance of the SPSS version 28 program were applied. Data collection techniques were carried out by distributing questionnaires to 100 millennial employees and validated through interviews with the general managers of five-star hotels. The main finding of the current study was that work-life balance was not proven to mediate the effect of authentic leadership on the intention of turnover of the millennial hotelier. This study recommends that hotel management elaborates on a clear, transparent, directed, and structured work-life balance program for millennial employees who will dominate the workforce in the Society 5.0 era. The results of this study contribute practically to the decision-making of five-star hotel management in the Sarbagita area to retain the best talent of the millennial generation, which emphasizes the quality of human resources. Keywords: Work-Life Balance, Authentic Leadership, Turnover Intention, Hotel
... On the other hand, Kossivi et al. (2016), through various studies on retention factors, highlighted some factors such as development opportunity, work-life balance, compensation, management leadership style, work environment, autonomy, training and development and social support. ...
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As a result of the complexity and multiplicity of definitions of the concept of human resource churning, to guide this entire research, the cost resulting from replacements was taken as a premise. Although churning is related to turnover, there are differences, turnover has as its focus the turnover of workers and churning is also related to the same approach, but this concept has as its focus the costs associated with the replacements of workers derived from voluntary departures, i.e., churning is only related to the costs of hiring from replacements. Despite the complexity and multiplicity of definitions of the concept of churning, to guide the present research, we chose to adopt as our premise the costs resulting from the voluntary exits of workers, that is, the relationship between resulting costs associated with employee substitutions. The present investigation intended to identify the causes of churning through the identification of its main dimensions. This theoretical research resorted to the following methodology: a literature review and an empirical study review that approached the subject of the churning of human resources. The resulting outcome enabled us to identify how these dimensions had an influence on the management of human resources regarding the mitigation of the occurrence of churning and the application of strategic measures to retain workers. In this regard, we have identified as main dimensions the work environment; leadership; recognition; schedule flexibility; wage; career progression, responsibility, and retention of human resources.
... Therefore, the use of separate procedures for internal mobility and linking it with the organization's strategy is conducive to better use of the potential and retention of employees. The need to keep employees with high potential improves the organization's ability to survive and develop (Kossivi, Xu & Kalgora, 2016). It is important that they are also well-thought-out decisions that will be compatible with the strategic planning of the organization. ...
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Background The importance of intraorganizational mobility of employees (IME) is one of the challenges currently faced by modern organizations, especially in the face of a changing and unpredictable environment. This situation requires organizations to re-code and re-focus on building an employee-friendly environment. One element of this environment may be IME, which, if included in the organization's strategy, gives it an opportunity to use and enhance the potential of its employees. Research aims The aim of this paper is to present the relationship between intraorganizational mobility and the intraorganizational mobility strategy of modern organizations. The article also includes a search for answers about the organization of such a strategy in terms of its scope for planning and evaluation. It was assumed that a strategic approach to the use of intraorganizational mobility is linked to the nature of the organization and the existence of such procedures. Methodology This study is empirical in nature. The research was conducted in 2020 in 401 Polish organizations (medium and large). The research method included a diagnostic survey using an on-line questionnaire. Persons holding the position of HR Specialist or HR Manager in a given organization were directly responsible for completing the questionnaires. Findings The results revealed that only one-third of the organizations surveyed have a strategy in place for intraorganizational mobility. Those organizations that have procedures in place embedded in a strategy are far more likely to make such decisions in a planned manner. Furthermore, it was found that having a strategic approach to intraorganizational mobility is not related to the nature of the organization. Originality This article makes a significant contribution to the area of research on the importance of internal employee mobility in an organization and its relation to the organization's strategy.
... ER is defined as an organization's ability to motivate and retain employees in a fixed period (Bidisha & Mukulesh, 2013;Kossivi et al., 2016) since they are the most critical factors for an organization's achievement (Roopavathi & Kishore, 2020). According to Torrington et al. (2020), ER also demonstrates the outcomes of EE, and the employee turnover index indirectly measures it. ...
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Retailing is one of the critical stages in supply chain operations, in which human resources and employee retention play a decisive role as in any organization. Based on motivation theories for employee retention (ER), this study examines the integrated indirect effects of organizational and personal motivators on ER through employee engagement (EE) in the retail industry. Furthermore, it assesses how psychological ownership (PO) directly affects ER and moderates the effect of ER on EE of full-time employees in the Vietnamese context as empirical evidence. The combination of a qualitative methodology (in-depth interviews with retail experts) and a quantitative methodology (a survey conducted with 571 full-time retail employees) is deployed. PLS-SEM with SmartPLS is utilized for data analysis and hypothesis testing. The study findings demonstrate that the integrated roles of organizational and personal motivators significantly affect ER through EE in retail companies. Interestingly, the study discovered that PO has a significant positive influence on ER, but a higher PO can reduce the relationship between EE and ER. Practically, the study highlights the implication that organizational motivators may not be sufficient to retain employees, since the intention of employees to remain or quit also depends on personal factors. It also suggests that in the working environment with a solid relationship between EE and ER, PO can lead to negative employee behaviour, such as bias, misconduct, and disengagement, which may harm the company.
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The inability to attract, attain and retain talented employees that perform effectively which in turn intensifies service delivery challenges across City Councils in Zimbabwe has remained a main challenge facing Masvingo City Council. This study examined the management practices that can be employed by the City Council to improve on employee retention. The study adopted a quantitative research approach using questionnaires administered to a total of 67 professionals at the City Council. Responses were captured and analysed using SPSS. Statistical tests were used to test 5 hypotheses which were formulated for the various sections of the study. Findings indicated that management practices have an impact on employee retention at the Council level. It was further revealed that there is a strong relationship between the implementation of talent management and retention strategies at Masvingo City Council. The study recommended that the City Council should provide employees with opportunities to empower them, promotion and growth opportunities, sufficient training, and development, revised and improved personnel policies, and incentives for outstanding performance.
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The main objective of the present study is to investigate the effects of transformational leadership on Counterproductive Work Behaviours (CWBs) and talent management, by considering the moderating role of management level among employees. The statistical sample of this research includes 321 middle and top level employees of Rasht municipality. A questionnaire is used to collect required data. The overall results of SEM, hierarchical regression (HR) using SPSS (version 25) and LISREL (version 8.8) indicated that transformational leadership has a negative effect on CWBs, as well as a positive effect on talent management. However, the impact of talent management on CWBs of workforce was not supported. Finally, the moderating effect of management level on the relationship between transformational leadership and CWBs was confirmed. Thus, leadership styles, especially transformational leadership, have an undeniable impact on the development of organisations, by enabling them to achieve their goals via talent management and prevention of employees' destructive behaviours.
The aim of this study is to investigate the relationship between extrinsic and intrinsic reward on retention among Gen Y employees in Malaysian manufacturing companies. The data was collected from 113 respondents worked in manufacturing companies located in Seri Kembangan, Selangor using questionnaires. Multiple regression analysis was conducted to test the hypotheses. The results showed both extrinsic and intrinsic reward are the factors influencing retaining Gen Y in manufacturing companies. The discussion on the analysis, limitation of the study, recommendation for future research and conclusion were discussed at the end of this study. In a nutshell, it was proven extrinsic reward and intrinsic reward has contributed to the retention of Gen Y employees.
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This paper focused on the assessment of governance risks and its effects to employee retention of service-based businesses in Laguna, Philippines. The study exclusively adopted the governance risks from LaConte’s Strategic Risks Model and Job Embeddedness’ Theory for employee retention. Descriptive research and purposive sampling were employed with 360 retrieved questionnaires. The questionnaire used in this study were subjected to reliability testing with acceptable to good internal consistency. Data were evaluated using statistical tools of frequency, rank, mean, weighted mean and ANOVA. The highest governance risks experienced by business owners during the pandemic in relation to planning is the suspended implementation of goals and objectives while in terms of monitoring and control, unpreparedness on future risks was ranked first. Management support to the professional needs of its employees is significant for reduced turnover of employee retention. Moreover, for the employee productivity, involvement of the employees to the business planning got the highest mean. Planning, and monitoring and control have strong significant difference when grouped according to service sector while under employee retention, reduced turnover is significantly different when grouped according to profile factor. However, the employee productivity showed only strong significant difference in service sector. The study suggested that LGUs may develop a program for governance management and employee empowerment program to aid the recovery programs for service-based businesses.
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In recent years the British National Health Service (NHS) has experienced an acute shortage of qualified nurses. This has placed issues of recruitment and retention in the profession high on the political agenda. In this paper, we investigate the determinants of job satisfaction for nurses and establish the importance of job satisfaction in determining nurses' intentions to quit the NHS. We find that nurses who report overall dissatisfaction with their jobs have a 65% higher probability of intending to quit than those reporting to be satisfied. However, dissatisfaction with promotion and training opportunities are found to have a stronger impact than workload or pay. Recent policies, which focus heavily on improving the pay of all NHS nurses, will have only limited success unless they are accompanied by improved promotion and training opportunities. Better retention will, in turn, lead to reduced workload.
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Purpose – The purpose of this paper is to investigate why professional workers actually remain in their organisations. Design/methodology/approach – The design of the study was cross-sectional. A number of factors important for the retention of professional workers were identified from the literature. A 19 item “retention scale” was developed based on the identified retention factors and their characteristics. It was proposed that the retention factors could be divided into two levels: organisational and job. The retention scale was completed by 138 workers form the UK site of a multinational Marketing company. The reliability of the scale was assessed using Cronbach’s α and was found to be 0.80. Findings – Factor analysis supported the division of the retention factors into organisational and job levels with a two factor structure in which organisational levels loaded strongly on component 1 and job level items loaded strongly on component 2. Scores on these two subscales predicted individual workers’ intention to remain within their organisation using both MANOVA and logistic regression analysis. Research limitations/implications – This is a preliminary look at factors important for the retention of professional workers and as such has several limitations. A more comprehensive review of the literature on retention is required and further testing of the model is required with a larger sample size. Links with the literature on the psychological contract also need to be more fully explored. Practical implications – This research has practical implications for practitioners due to the importance of retaining top talent for increased competitive advantage. The factors that have been found here to be important for retaining professional workers have also been observed in high performing companies. Social implications – The retirement of the baby boomer generation means that there has to be a greater emphasis on retaining key employees in organisations to mitigate the loss of key skills and competences. Originality/value – Most previous studies and many HR managers concerned with the retention of professional and other workers tend to concentrate on those aspects of the job or of the organisation that make them leave. This study is concerned with why people stay with their employers.
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Purpose – Workers have different motives to be employed at specialist contract work agencies, such as career development aspirations, or a desire for freedom and independence. The purpose of this paper is to study how these different motives relate to the appreciation of HR practices applied by agencies and consequently to employee retention at the agency. Design/methodology/approach – Data were collected in a contract work agency for financial professionals. Management was interviewed about the HR practices used for employee retention. In addition, 291 agency employees filled out a questionnaire about their motives to be employed at the agency, their appreciation of the HR practices of the contract agency and their turnover intentions. Findings – Regression analysis showed that career development motivation was related to retention at the agency, but that this relation became weaker when tenure with the agency increased. HR practices (like training, supervisory support, career development support, information sharing and employee participation) proved to be related to lower turnover intentions of flex workers with a career development motivation. For flex workers with a freedom motivation the HR practices had no relationship with retention. Research limitations/implications – Data collection in one agency may limit generalization. Additional research needs to zoom in on alternative HR retention practices that align with freedom motivation. Originality/value – Specialist contract work agencies typically experience difficulties with employee retention. Agencies may retain their workers if they apply HR practices that are aligned with the motivation of people engaging in contract work.
Turnover rates for hospital nurses have been increasing in recent years, which is partially a result of increasing pressure on nurses from higher productivity expectations in a managed care environment. Improving nurse retention is a difficult challenge to managers since the bureaucratic cultural norm of hospitals, with its hierarchical structures, rules, and regulations, and heavy emphasis on measurement of outcomes and costs, may not be the culture most conducive to enhancing nurses' job satisfaction and commitment. Accordingly, this study investigates the relationships between unit organizational culture and several important job-related variables for nurse retention in the labor and delivery units of seven hospitals. Data analysis shows that unit organizational culture does affect nurses' quality of work life factors and that human relations cultural values are positively related to organizational commitment, job involvement, empowerment, and job satisfaction, and negatively related to intent to turnover. These findings suggest that although increasing recruitment of nurses and improved compensation and benefits strategies may offset hospital nurse shortages in the short term, improving quality of work life may be a more practical and long-term approach to improving hospital nurse retention.
Human resources are the life-blood of any organization. Even though most of the organizations are now a days, found to be technology driven, yet human resources are required to run the technology. They are the most vital and dynamic resources of any organization. With all round development in each and every area of the economy, there is stiff competition in the market. With this development and competition, there are lots and lots of avenues and opportunities available in the hands of the human resources. The biggest challenge that organizations are facing today is not only managing these resources but also retaining them. Securing and retaining skilled employees plays an important role for any organization, because employees' knowledge and skills are central to companies' ability to be economically competitive. Besides, continuously satisfying the employees is another challenge that the employers are facing today. Keeping into account the importance and sensitivity of the issue of retention to any organization, the present study tries to review the various available literature and research work on employee retention and the factors affecting employee retention and job satisfaction among the employees.
Research indicates that the total cost of employee turnover is about 150% of an employee's salary. Because of this high cost of turnover, the organization that is the focus of this article sought to understand their employee's turnover intentions and the reasons for the potential turnover. Through a series of surveys, observations, and interviews, it was determined that the location of the company and its compensation package were the most common factors in remaining with the company and that compensation and lack of challenge and opportunity were the most common factors in contemplating leaving the organization. The purpose of this study was to determine the factors that most significantly influence employees' decisions to remain employed at a particular organization and possible reasons for choosing to leave. In addition, the study sought to describe the importance of retaining critical employees and developing strategies to enhance employee retention practices. The importance of this issue is demonstrated by the finding that 86% of employers experience difficulty attracting new employees and 58% experience difficulty retaining their employees (Hale, 1998). The results of the current study can be used by organizations to develop policies, practices, and strategies that would enable higher levels of employee retention and create greater efficiencies in meeting strategic business objectives.
Appearance of disinterestedness is a social norm that has long been recognised by social scientists as essential to the development of social exchange relationships. Despite the predominance of social exchange theory within the field of management, management scholars have so far largely overlooked the role of this norm in their models. This study aims to fill this gap by investigating how employees' attribution of disinterested organisational support (i.e. support perceived by employees as not resulting from an underlying calculation) is related to employee retention. The hypotheses were tested in a longitudinal study of 151 management‐level employees. Results showed that perceptions of disinterested support decrease employee voluntary turnover through enhancing perceptions of organisational support and organisational commitment, and lessening turnover intention.
Purpose ‐ The purpose of this paper is to propose and test a research model that examines whether job embeddedness mediates the effects of high-performance work practices and work social support on turnover intentions. Design/methodology/approach ‐ Based on data gathered from 174 full-time frontline employees in the four- and five-star hotels, with a time lag of two weeks in Iran, the relationships were tested using LISREL 8.30 through structural equation modeling. Findings ‐ Results suggest that job embeddedness fully mediates the effects of high-performance work practices and work social support on turnover intentions. Specifically, frontline employees with high-performance work practices and work social support are more embedded in their jobs, and therefore, are unlikely to display intentions to leave the organization. Research limitations/implications ‐ Testing hope as a moderator of the effects of high-performance work practices and work social support on job embeddedness in future studies would add to the existing knowledge base. The time lag used in this study provides limited support for causal inferences. Therefore, future studies should use a longer time lag than it was done in this study. Originality/value ‐ The present study adds to the current literature by investigating the antecedents of job embeddedness. This study also adds to the current knowledge base by examining job embeddedness as a mediator of the effects of high-performance work practices and work social support on turnover intentions through data collected in the hotel industry in Iran, a developing non-Western country.