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The Effect of Training and Career Development on Employees Retention-A Study on the Telecommunication Organizations in Yemen

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The Journal of Social Sciences Research
ISSN(e): 2411-9458, ISSN(p): 2413-6670
Special Issue. 2, pp: 420-430, 2018
URL: https://arpgweb.com/journal/journal/7/special_issue
DOI: https://doi.org/10.32861/jssr.spi2.420.430
Academic Research Publishing
Group
*Corresponding Author
420
Original Research Open Access
The Effect of Training and Career Development on Employees Retention A
Study on the Telecommunication Organizations in Yemen
Hamed Al-sharafi*
Graduate School of Business Universiti Kebangsaan Malaysia Bangi, Selangor, Malaysia
Mohd Ezani Mat Hassan
Graduate School of Business Universiti Kebangsaan Malaysia Bangi, Selangor, Malaysia
Syed Shah Alam
Graduate School of Business Universiti Kebangsaan Malaysia Bangi, Selangor, Malaysia
Abstract
Employees retention represents one of the main keys to organizational productivity, performance, competitive
advantage and success. Therefore, organizations look for ways to improve their employees’ satisfaction and
retention. Organizations worldwide have been realizing the importance of this issue. However, many organizations -
specifically in Arabic context - still failing in retaining their employees, especially the most talented and qualified
ones. Although many studies have been done to investigate the effect of human resources practices on employees’
satisfaction and retention, many of these studies show the impact of the monetary part of it such as compensation.
The purpose of this paper is to investigate effects of non-monetary practices, training and career development on
employees’ retention in organizations within the telecommunication sector in Yemen. Moreover, current study seeks
to investigate the mediating role of that job satisfaction in the training, career development, and employees’ retention
relationship. Using a sample of 100 non-managerial employees in the four Yemeni telecommunication organizations,
results indicated that training has a positive impact on the employees’ satisfaction and retention. In fact, results show
the importance of training in enhancing employees’ satisfaction as well as improving their retention rate in the
telecommunication sector in Yemen. Surprisingly, results showed that career development has no relationship with
employees’ satisfaction or retention. Results also found that Job satisfaction mediates the relationship between
training and employees’ retention in the Yemeni telecommunication sector.
Keywords: Training; Career development; Retention; Job satisfaction; Telecommunication; Yemen.
CC BY: Creative Commons Attribution License 4.0
1. Introduction
Human capital is the most valuable asset to any organization. This asset is the primary tool for organizational
competitive advantage, success, and growth (Kaye and Jordan-evans, 2000). In today business world, organizations
are forced to operate within an environment full of hyper-change and competition. These factors forced the
organizations to give more attention to their employees, working on keeping them satisfied and engaged. Also, the
shortfall of qualified and talented employees put additional pressure on the organizations to work effectively on
retaining their employees. Therefore, attracting, satisfying and retaining qualified and talented employees become
increasingly important. In fact, organizations’ ability to satisfy and retain their qualified employees is crucial for
future survival, performance, and profitability.
Scholars and practitioners have shown an increasing interest in determining the main organizational factors that
enhance the employees’ retention; many studies were done to explore and identify these factors (De Vos and
Meganck, 2009; George, 2015; Steel et al., 2002). In fact, studies showed that retention is a complex subject and
there is no single formula for organizations to achieve employees’ retention. Based on these studies, employees’
decision to stay is driven by different main factors. These factors included leadership, the leaders’ way that embraces
empowerment, respect, recognition, and communication (Al-sharafi and Rajiani, 2013; Letchmiah and Thomas,
2017) human resources practices (Sun et al., 2007; Yamamoto, 2013; Yang et al., 2012) work environment, where
the employees experience a positive relationship with their co-workers (Letchmiah and Thomas, 2017; Valentine et
al., 2011); and work-life balance, where the employee can get an adequate time off, work support and flexible work
time.(Deery and Jago, 2015; O’Neill et al., 2009) organizational culture, the shared values, beliefs, and behaviors of
the employees (Anitha and Begum, 2016; Kontoghiorghes, 2016).
Human resources practices have received increased attention to their impact on employees’ decision whether to
leave or stay, many empirical studies have been done to investigate the correlation between human resources
practices and employees’ retention (Kaye and Jordan-evans, 2000). According to these studies, employees’ retention
has become a major challenge facing human resources departments in all organizations. Huselid (1995) in one of the
main studies that investigated the effect of human resources practices on employees’ outcomes, turnover, and
productivity. He concluded that practices such as hiring, rewards, and incentives, fair performance appraisal system,
training, and development have a significant impact on employees’ turnover and productivity. Another research was
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done by Hay group and studied about 300 organizations to define the major practices out of 50 suggested retention
practices. Results showed the most important factors are recognition, career growth, and development, fair
compensation system, work anatomy, challenging activities, meaningful work, good management(Kaye and Jordan-
evans, 2000).
Chew and Chan (2008) studied the influence of human resource practices on employees’ loyalty and retention.
These practices were recognition, employee-organization fit, effective compensation system, challenging tasks,
training and career development. They concluded that recognition, person-organization fit, compensation, and
challenging work has a positive effect on employees’ commitment. Similarly, recognition, person-organization fit,
compensation, and training and career development were significantly related to employees’ retention. However,
results showed that employees’ commitment not affected by providing training and career development
opportunities, also challenging work has no significant relationship to employees’ retention.
In their study, Renaud et al. (2015) defined and tested 28 human resources practices, these practices combined
in five major factors or practices: incentive compensation, innovative peripherals, training and development,
respectful work environment, and Work-life balance. Results showed that four out of these five practices (incentive
compensation, innovative peripherals, training and development, respectful work environment) are positively related
to employees’ retention. Surprisingly, results show that employees ’retention is not significantly affected by work-
life balance practice. In conclusion, many studies demonstrate that employees’ retention can be achieved by effective
implementation of human resources practices such as performance appraisals, recognition, compensation, training
and development, and promotion opportunities Al-Emadi et al. (2015).
Job satisfaction is a keystone in order to explain employee turnover and retention issue. Many studies have been
done to understand the relationship between job satisfaction and retention (Amah, 2009; Ashton, 2017; Huang S. et
al., 2017) According to these studies, retention usually is linked to job satisfaction; unsatisfied employees are more
likely to search for a new employer which at the end lead to the turnover decision. Thus, organizations need to keep
their employees satisfied. Mitchell T. et al. (2001a) state that the key to employees’ retention is to keep them
satisfied. Studies have also demonstrated that employee satisfaction and engagement are significantly correlated with
organization outcomes Harter et al. (2002). Organizations can improve employees’ satisfaction by providing a
positive work environment, fair compensation system, supportive supervision, rewards/recognition, skills
development and organizational communication.
In this regard, organizations should design their human resource practice and implement them to enhance
satisfaction and commitment among their employees. Organizations should take steps to ensure that their practices
have positive effects on the employees. Satisfied employees can perform in a better way, which at the end will lead
to satisfied customers. Satisfied employees also would enhance the ability of organizations to achieve their goals.
Moreover, Satisfied employees are more motivated, engaged and productive which at the end lead to improving
organizations competitiveness and success, (Garrido et al., 2005). Amah (2009) suggests that human resources
department should establish and implement practice and policies that help employees to balance their work-related
and non-work-related activities and duties in order to enhance their overall life satisfaction, not only job satisfaction.
According to LunaArocas and Camps (2008), a majority of the researchers that study the impact of human
resources practices on employees’ retention have focused on remuneration practices. In fact, focusing only on
compensation and financial incentives could be a serious mistake if organizations plan to develop commitment
strategies that enhance employees’ retention; Thus, more studies are required to empirically demonstrate the effect of
human resources practices and employees’ retention and employees’ retention. The current study focuses on two
non-remuneration practices (training and career development) and their effect on employees’ retention.
I addition, and for the purpose of the current study, it is relevant to mention that although there have been
previous studies on the effect of human resource practices in general and training and career development practices
in specific in employees’ retention, a few of these studies have been done in an Arabic context. Moreover, there is a
noticeable lack of empirical studies on the Yemeni organizations in term of the factors and practices that may help to
reduce employees’ turnover and at the same time enhancing the retention rate among Yemeni employees.
2. Literature Review
2.1. Employee Retention
The importance of this topic comes from the vital role of qualified and committed employees in organizational
survival. Organizations without this type of employees will not be able to survive and compete. Moreover, the cost
of replacing these employees. this cost could be tangible as the cost of recruiting and selection, training (Mitchell T.
R. et al., 2001b) or it could be intangible represented by reducing other employees’ productivity performance, and
moral (Guthrie, 2001; Ilmakunnas et al., 2005; Longenecker and Scazzero, 2003). Studies on the cost of replacing
an employee confirmed that replacement of each employee cost 70-200 percent of his annual salary (Kaye and
Jordan-evans, 2000). Similarly, (Longenecker and Scazzero, 2003) stated that replacing IT employee costs about 1 to
2.5 times their annual salary. in conclusion, retaining existing employees is always a much better investment than the
cost of recruiting of new ones(Mitchell T. R. et al., 2001b). In response to this critical issue, organizations engaged
in establishing and implementing policies, strategies and tactics in order to reduce the employees’ turnover and
motivate them to stay in their current organizations.
Based on this, retention can be defined as an employee’s decision to stay or continue working in their present
organizations as a result of efforts made by organizations to encourage their staying (Cotton and Tuttle, 1986).
Similarly, (Frank et al., 2004) View retention as the efforts organizations made to keep its desirable employees and
thereby reach company objectives. It is a systematic effort made by organizations to build a supportive and positive
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environment that encourages current employees to stay at their present organizations (Kumar and Mathimaran,
2017).
According to Sinha and Sinha (2012), it is essential for leaders to recognize the factors that help in satisfying
and retaining the qualified employees. By reviewing the literature on the turnover and retention matter, leaders will
find that researchers have identified several factors that have a significant influence on employees’ decision to stay.
Letchmiah and Thomas (2017), confirmed the positive and significant role of management and organizational
culture, training and career developmental, meaningful work and work environment on employees’ retention. George
(2015), divided retention factors into two levels: organisational and job. Organizational factors include:
management, helpful work environment, social support and career development; job factors include: compensation,
autonomy, work-life balance, and workload. He founded that all factors related positively to employees’ retention.
Results also showed that organizational factors have a greater impact on employees’ retention than job factors do.
2.2. Training
In today’s world, where the life cycle of technology and products become shorter and shorter, update
employees’ knowledge and skill become more critical for both organizations and employees(Presbitero et al., 2016).
In this regard, employees expected to learn new skills and knowledge to improve themselves and the work they do. It
is important to them to feel that they are learning, growing and remaining competitive comparing to their industry
peers. Thus, organizations that provide continuous training and skills upgrading programs can maintain their
competitive advantage and at the same time are more likely to satisfy and retain their valuable employees. In
addition, organizations also benefit from these training programs in term of increasing organizational competitive
advantage, effectiveness, and profitability(Aragón-Sánchez et al., 2003).
The definition of training is a systematic approach to acquire new knowledge or skills in order to improve
employees and organizational effectiveness and growth (Aguinis and Kraiger, 2008; Steel et al., 2002). It is
providing employees with the needed knowledge and skills to do the tasks they required to do in the right
way(Costen and Salazar, 2011). Others defined it as the availability of the learning materials, courses, and seminars
for employees and helping them to benefit from these materials(Georgellis and Lange, 2007).
The positive relationship between training and employees’ retention has been found in many studies. One
empirical study done on 457 European small and medium organization to assess the effects of training on
organizational effectiveness and profitability, results showed that there is a significant relationship between training
and both effectiveness and profitability(Aragón-Sánchez et al., 2003). George (2015) conducted a study to
investigate why professional workers retain in their organizations. He concluded that training and development
among other factors are strongly related to employees’ retention. A recent study by (Huang W.-R. and Su, 2016)
carried out to study the influence of job training satisfaction on employees’ intention to leave. They also examined
the mediating role of job satisfaction in the mentioned relationship. Results confirmed the relationship between job
training satisfaction and turnover intention was negative. Results also indicated that job satisfaction mediated the
examined relationship.
Hypothesis 1 training practice has a positive relationship with employees’ retention.
2.3. Career Development
Career development is about providing opportunities for employees to grow personally and professionally
(Horwitz et al., 2003). It means that employees are able to be promoted and go to higher levels within their
organizations. Career development considered as one of the human resource practices that help in retention
management issue. Many studies mentioned it as one of the main retention strategies(George, 2015). Studies have
shown that a lack of career development opportunities within an organization leads to high employee
turnover(Presbitero et al., 2016). In contrast, organizations that implement career development programs are more
likely to have a high level of commitment and retention among their employees. In fact, De Vos and Meganck
(2009) in his study argues that career development opportunities among other unpopular factors such as job content
and work-life balance have a higher impact on employees’ retention than compensation, performance appraisal and
communication. Similarly, (Hausknecht et al., 2009) confirms that among all factors studied to assess their
relationship to employees’ retention (job satisfaction, career development opportunities, organizational commitment
and organizational reputation), career development is the most related to employees’ retention decision.Horwitz et
al. (2003) confirmed the idea by saying that the most popular retention factors are not always the most effective
ones; many variables can play roles in this idea such as the type of industry the organization operating in, the type of
organization either local or multinational among other factors.
In their study, Chen et al. (2004) conducted in Taiwan to examine the career needs and also to assess the gap
between these needs with the provided career development program in one of research and development department.
Results concluded that employees have a high intention to leave if the gap between these needs and the available
career development program is high. Based on their result, career development is the main contributor to employees’
job satisfaction. Another study carried out by Costen and Salazar (2011) examined the impact of training and
development on employee job satisfaction and retention. Results reported that training and development
opportunities are significantly and positively related to employees’ satisfaction, loyalty, and retention.
Hypothesis 2 career development practice has a positive relationship with employees’ retention.
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2.4. Job Satisfaction
For a long time, job satisfaction was one of the topics that get researchers as well as organizations leaders
attention and interests. Based on the literature, one of the job satisfaction detentions is referred to the positive
feelings that employees have about their job and organization. Whereas, job dissatisfaction is negative feeling
towards the job and organization(Armstrong, 2006; Bibi et al., 2013).
Several studies have examined the relationship between training and job satisfaction (Aguinis and Kraiger,
2008; Costen and Salazar, 2011). According to these studies, training is one of the main influencers on employees’
job satisfaction. In other words, organizations that engage their employees with training programs are enhancing the
employee’s emotional attachment to the organization, which will lead them to remain in their organization(Costen
and Salazar, 2011). In addition, organizations that focus on giving their employees more training and learning
programs have a higher level of productivity, performance, customer satisfaction and retention(Harel and Tzafrir,
1999).
Hypothesis 3 training practice has a positive relationship with employees’ satisfaction.
In the same way, many studies have confirmed the positive relationship between career development
opportunities, and job satisfaction(Costen and Salazar, 2011). Employees’ perceptions of growth and advancement
will enhance their satisfaction feeling and behaviours. According to Chen et al. (2004), high job satisfaction is
correlated by meeting the employees’ expectation regarding career development programs provided by their
organization.
Hypothesis 4career development practice has a positive relationship with employees’ satisfaction.
On the other hand, many studies have been done to assess the influence of satisfaction on employees’ retention
(Ashton, 2017; Harter et al., 2002; Huang S. et al., 2017; Kontoghiorghes, 2016). Results extracted from these
studies confirmed that job satisfaction is a predictor of employees’ turnover or retention. In other words, satisfied
employees have mostly retained employees whereas unsatisfied ones are more likely to search for a new
organization. Although many researchers studied the relationship between these two subjects, Amah (2009) has a
suggestion for a better understanding of this relationship. He suggested studying more variables including situational
variables expected to have an impact on turnover or retention and to consider various forms of the relationship
involving these factors or variables
.
In conclusion, providing training programs and development opportunities means more satisfied employees, and
as a result of this satisfaction, organizations are more likely to retain their desirable and qualified employees.
Hypothesis 5 Job satisfaction has a positive relationship with employees’ retention.
2.5. Job Satisfaction as a Mediator
It is noticeable that job satisfaction used as a mediator in many relationships related to employees’ behaviours
and outcomes such as absenteeism, commitment, turnover, productivity and performance. In this regard, many
studies have examined the mediating effect of job satisfaction on the relationship between different personal and
organizational variables and employees’ turnover or retention(Huang W.-R. and Su, 2016). The results of these
studies have indicated the significant positive effect of job satisfaction on the mentioned relationships.
(Bayarçelik and Findikli, 2016) Showed that job satisfaction mediates the relationship between perceived
organizational justice and turnover intention. (Al-sharafi and Rajiani, 2013) found that job satisfaction is mediating
the relationship between leadership practices and talented employees’ turnover. Job satisfaction also found to
mediate the relationship between job training satisfaction and turnover intention(Huang W.-R. and Su, 2016). Job
satisfaction also mediates the relationship between career development and employees’ turnover (Chen et al., 2004).
Thus, in line with the previous research, the current study examines the mediating role of job satisfaction related
to both training and career development, and employees’ retention.
Hypothesis 6: Job satisfaction mediates the relationship between training and employees’ retention.
Hypothesis 7: Job satisfaction mediates the relationship between career development and employees’ retention.
3. Methodology
The current study has two objectives: examine the effect of training and career development on employees’
retention in Yemeni telecommunication organizations, and to what level job satisfaction mediate this relationship in
the mentioned organizations.
Based on the literature above, this study develops a conceptual framework as shown in Figure 1. The framework
examines the influence of training and career development on employees’ retention with job satisfaction as a
mediator.
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Figure-1. Conceptual Framework
3.1. The Study Setting
Yemen is an Arabian country located in the Middle East. The population is 30 million citizens in 21
governorates. The Arabic language is the official language. The telecommunications industry in Yemen is one of
highest growing industries. Four organizations are operating in this industry in Yemen; one of them is a public
organization, Yemen Mobile. The other three are private organizations: Sabafon, MTN and Y telecom.
3.2. Sample
The population of the current study is the non-managerial employees in the four organizations operating in the
telecommunications industry in Yemen; the sample was 100 of them. Out of the distributed questionnaires, 94
questionnaires were retrieved; only 91 of them were useful for purposes of the study.
3.3. Procedure
A questionnaire was used as the main tool for collecting data from the mentioned four organizations. The
questionnaire was developed based on the literature of related subjects. The questionnaire distributed randomly to
the respondents, they have been informed about the main objectives of this study in order to gain their full attention
and cooperation and to ensure the would fill the questionnaire accurately.
3.4. Measures
The questionnaire was made up of two main parts. A first section designed to collect the respondents’ details
such as age, gender, level of education, working experience, and how long has been working in his current company.
The second section has contained the items of the independent variable (training, and career development), the
dependent variable (retention), and the mediator (job satisfaction).
3.5. Training
Training variable measured by five items developed by Rogg and his colleagues to measure the availability of
training programs from the employees’ perceptions(Rogg et al., 2001). Items ranged from 1 to 5; 1 for ‘strongly
disagree’, and 5 = ‘strongly agree.
3.6. Career Development
For the purpose of this study, five items developed by Price (2001) used to assess employees’ perception about
career development opportunities provided by their current employers. Similar to training variable, the five-point
Likert scale used to measure this variable and ranged from 1 to 5.
3.7. Job Satisfaction
Minnesota satisfaction questionnaire (MSQ) was the instrument that used to measure respondents’ satisfaction.
The reason behind using MSQ is because it measures employees’ intrinsic, extrinsic, and general job satisfaction
perceptions. The current study used the short form of this model 20 items - to measure respondents satisfaction.
The five-point Likert scale used to measure this variable and ranged from 1= ‘very dissatisfied’ to 5= ‘very
satisfied’.
3.8. Employees Retention
Same as career development variable, the items of this variable were also taken from intent to stay model
developed by Price (2001) to measure employees’ retention (Price, 2001). It consists of four items. This model has
been used in many studies to measure employees’ intention to stay within their current organization(Cox et al.,
2010).
Training
H1 (+)
Job satisfaction
Employees’
Retention
Career Development
H2(+)
H3(+)
H4(+)
H6,7 (+)
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4. Results and Findings
Descriptive statistical methods have been used to describe the demographic profile of the non-managerial
employee respondents, see Table 1. From the table 1, Most of the respondents were male (81%), and only 19% were
females. 13% of the respondents were less than 25 years old, and 40% of them were within the age of 25-35 years,
while 29% of them were from 35-45 years of age and 18% of the respondents were more than 45 years old.
Table-1. Respondents’ Profile
Contents frequency percentage
Contents frequency percentage
Gender
Male 74 81%
Female 17 19%
Age
Less than 25 years 12 13%
25-35 years 36 40%
35-45 years 26 29%
More than 45 17 18%
Level of education
High School 03 3%
Diploma 15 16%
Degree 64 71%
Master, PhD 09 10%
Years of expertise:
Less than 2 years 19 21%
2-5 years 29 32%
5-10 years 27 30%
More than 10 years 16 17%
Most of the respondents have a moderate level of formal education, about 3% have high school level of
education, while 16% have a diploma and 71% of them have bachelor's degree, 8% master and 2 % PhD; this could
be because the entire respondents are in non-managerial positions. Finally, there were 21% of respondents had less
than two years of working experience, while 32% of them had from 2-5 years of working experience, 30% had from
5-10 years of working experience, and only 17% of them had from more than ten years of working experience.
4.1. Measurement Model
In order to examine the properties of the measurement scales, confirmatory factor analysis was conducted to
assess reliability, convergent validity and discriminant validity (see table 2).
Table-2. Summary of measurement model
Variables
Items
Loading
Cronbach's
Alpha
CR
Average Variance
Extracted (AVE)
Training
T1
0.814
0.880
0.916
0.732
T3
0.869
T4
0.923
T5
0.811
0.876
0.914
0.727
Career Development
C1
0.896
C3
0.793
C4
0.881
C5
0.837
0.930
0.940
0.610
Job Satisfaction
JS10
0.780
JS13
0.866
JS14
0.800
JS15
0.813
JS16
0.731
JS17
0.829
JS19
0.728
JS20
0.741
JS7
0.739
JS9
0.773
Employee Retention
R1
0.830
0.875
0.922
0.797
R2
0.958
R3
0.887
4.1.1. Convergent Validity
Reliability of the measurement scales refers to the extent to which variables consistently measure the same
construct. It can be measured by using Cronbach’s reliability test and average variance extracted (AVE) (table 2).
All composite reliabilities and all Cronbach’s α should exceed 0.7, and all AVE’s should be greater than 0.5.
Table 2 showed that the coefficient alphas for all variables. Based on the result, all of them are reliable α > 0.70.
The Cronbach’s α for Training variable is .880; the coefficient alphas for career development is 0.876; While the
Cronbach’s alpha for Job satisfaction and employees’ retention are .930 and .875 respectively.
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4.1.2. Discriminant Validity
Discriminant validity is to assess if the items measure distinct concepts. In this part of the analysis, we compare
the square root of AVE with the correlations between constructs. For the items to be valid, the square root of AVE
should be higher than the correlations between constructs. As shown in table 3, all AVE square roots are higher than
the correlation values. Based on table 2 and 3, it can be said that the measurement model was considered satisfactory
Table-3. Discriminant Validity
Career
Development
Employee Retention
Job Satisfaction
Training
Career Development
0.853
Employee Retention
0.170
0.893
Job Satisfaction
0.249
0.791
0.781
Training
0.290
0.454
0.474
0.855
4.2. Structural Model
Structural Model is used to test hypothesises and examine the causal relationships among constructs. In
particular, by looking at R2 and the path coefficients, we can conclude whether the relationship between constructs
are established and the hypothesises are supported or not. Tables 4, 5 and Figure 2 show the results of the structural
model from the PLS output.
For the first hypothesis, results showed a positive and significant relationship between training and employees
retention (T = 1.877, p = 0.031< .05); hence, Hypothesis 1 was supported. Thus, focusing on training and providing
more training programs means more commitment and retention among employees. For the effect of career
development on employeesretention, result was not significant (T = 0.712, p = 0.477); hence, Hypothesis 2 was
rejected. Based on this result, employees’ decision to stay or leave is not affected by the availability or non-
availability of the career development opportunities.
The third hypothesis examines the effect of training on job satisfaction; the result was positive and significant
(T=3.993, p = 0.000); which means that hypothesis 3 was supported. This finding implies that training programs
associated with job satisfaction. In other words, organizations can enhance employees’ job satisfaction by
implementing training programs that improve employees’ skills and capabilities. However, results indicated that
Hypothesis 4 was rejected (T = 0.122, p = 0.206), career development has nothing to do with employees’ job
satisfaction. Finally, results showed a positive and significant relationship between job satisfaction and employees
retention (T = 20.066, p = 0.000); hence, Hypothesis 5 was supported. Thus, satisfied employees have more loyalty
and commitment, and they are more likely to stay within their current organizations.
Table-4. Path coefficient
Variables
Hypothesis
Path coefficient
T value
P Values
Result
Training -> Employee Retention
H1
0.412
1.877
0.031
Supported
Career Development -> Employee
Retention
H2
-0.050
0.712
0.477
Rejected
Training -> Job Satisfaction
H3
0.439
3.993
0.000
Supported
Career Development -> Job Satisfaction
H4
0.122
1.265
0.206
Rejected
Job Satisfaction -> Employee Retention
H5
0.750
20.066
0.000
Supported
Table-5. R Square
R Square
R Square Adjusted
Employee Retention
0.636
0.624
Job Satisfaction
0.238
0.221
4.3. Testing for Mediation
To assess the mediating effect of job satisfaction on the relationship between training and employees’ retention,
a test of the direct and indirect effect of training on retention has been done. The findings show that the indirect
effect of training on retention is 0.332 with a significance of 0.000. Therefore, the indirect effect of training on
retention is significant. hence, Hypothesis 6 was supported. On the other hand, the indirect effect of career
development on retention is not significant 0.096; which means rejecting Hypothesis 7 (see table 6).
Based on the results, job satisfaction mediates the relationship between training and employees’ retention.
However, job satisfaction does not mediate the relationship between career development and employees’ retention.
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Table-6. Total Indirect Effects
Original
Sample
(O)
Sample
Mean (M)
Standard Deviation
(STDEV)
T Statistics
(|O/STDEV|)
P Values
Career Development -> Employee
Retention
0.092
0.105
0.070
1.306
0.096
Career Development -> Job
Satisfaction
Job Satisfaction -> Employee
Retention
Training -> Employee Retention
0.332
0.326
0.085
3.918
0.000
Training -> Job Satisfaction
Figure-2. The structural model
5. Discussion and Conclusion
This study examines the effect of training and career development on employees’ retention in the presence of
job satisfaction as a mediator. The findings showed that the training influences employees’ retention; It also
indicated that training enhances employees’ satisfaction as well. Results also revealed that job satisfaction has a
strong impact on employees’ retention and turnover. On the other hand, the findings showed career development
affect neither job satisfaction nor retention.
In general, the current study partially supports previous studies. Results confirmed the role of training in
enhancing employees’ job satisfaction and retention. Moreover, the results confirmed the significant role of job
satisfaction in mediating the relationship between training and employees’ retention. However, the results do not
support most of the previous studies that confirm the effect of career development on employees’ job satisfaction
and retention.
In consistent with previous studies, the results of this current study stressed the importance of training in
keeping and retaining the qualified employees.Costen and Salazar (2011) indicated that employees who perceived
the availability of training programs are more likely to stay with their organizations. Similarly, Renaud et al. (2015)
concluded that training and development has a positive influence on employees retention. Based on all mentioned
studies, organizations that provide training programs are more likely to keep and retain its employees.
The findings also stressed the role of training on employees’ job satisfaction. The current result is similar to a
study by Costen and Salazar (2011) which confirmed the significant impact of provided training programs on
employees’ job satisfaction. Similarly, Ashton (2017) study revealed that training improves job satisfaction among
employees and customers as well. This result could be explained as that training programs reduce employees stress
and mistakes as well, increase employees’ confidence which at the end leads to higher level of satisfaction. In order
to leverage these findings, Yemeni organizations should focus more on providing helpful training programs to
promote employees’ skills, satisfaction and loyalty.
In term of career development, the findings indicated that career development does not affect employees’ job
satisfaction and their staying decision. This result contradicted many of the previous studies (Chen et al., 2004;
George, 2015; Yamamoto, 2013). However, this result is consistent with Chew and Chan (2008) study that revealed
The Journal of Social Sciences Research
428
that career development is not significantly related to organizational commitment and employees’ decision to stay.
According to the mentioned study, the reason behind this result could be the mismatch between the provided career
development and employee personal growth plan.
The findings of this study confirmed the relationship between job satisfaction and retention. The results are in
alignment with the previous studies (Ashton, 2017; Huang S. et al., 2017; Kontoghiorghes, 2016) which found that
job satisfaction was a major predictor of employees’ turnover and retention. Unsatisfied employees usually leave
their current organization. Thus, Yemeni organizations should identify the main factors that enhance employees’
satisfaction and implement them. By doing so, organizations can ensure retaining employees and reducing turnover
rates.
The result also showed that hypothesis 6 was supported. Based on the statistical result, there is a mediation
relationship of job satisfaction between training and employees’ retention. In other words, it seems that job
satisfaction plays a key role in governing the relationship between training and employees’ retention, which means
that providing and implementing valuable training programs will enhance employees’ job satisfaction which will
promote employees’ loyalty and commitment and keep them within their current organizations. This finding
supports the results of previous studies that confirmed the role of job satisfaction in explaining the role of training on
employees’ turnover and retention (Huang W.-R. and Su, 2016).
In addition to the significant theoretical contributions described above, it is important to stress that the findings
of this study have major practical implications as well. In particular, the study findings suggest that organizations
might need to invest in training programs to enhance employees’ job satisfaction which at the end leads to reduce the
turnover rates among employees. The study results also suggest - based on the strong positive effect of job
satisfaction on retention - that organizations need to identify the factors and variables that have a great impact on
employees’ job satisfaction and implement them in their organizations to increase employees’ job satisfaction. By
doing so, organizations will get a highly loyal and committed employees which leads to high level of productivity
and performance.
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Human resources management (HRM) practices are hotel management tools that contribute to organizational success. The purpose of this study was to evaluate how soft HRM practices in the Thai hotel industry affect job satisfaction and job retention. This study focuses on soft HRM practices, which draws on theories of commitment and motivation. Soft HRM refers to human relations between staff and the hotel organization. A quantitative approach was employed using multiple regression technique with a stepwise method for data analysis. It was found that employee satisfaction is not fostered by increasing remuneration, but is more related to the quality of working life, good leadership style, regular training, employment security, the hotel's brand image, and employees' personal traits, a most important aspect. The findings from this study provide a comprehensive framework for both academic and managerial responses to resolve the labor and skill shortage crises. Equally important is the extrinsic and intrinsic motivation and personal attitude theory that underpins employee job satisfaction in this study.
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The competition to retain key employees is intense. Top-level executives and HR departments spend large amounts of time, effort, and money trying to figure out how to keep their people from leaving. This article describes some new research and its implications for managing turnover and retention. These ideas challenge the conventional wisdom that dissatisfied people leave and money makes them stay. People often leave for reasons unrelated to their jobs. In many cases, unexpected events or shocks are the cause. Employees also often stay because of attachments and their sense of fit, both on the job and in their community. We discuss these ideas and make recommendations for integrating them into a comprehensive retention plan.
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Purpose – The purpose of this paper is to examine the relationship among job training satisfaction (JTS), job satisfaction (JS) and turnover intention (TI) and moreover, the role of JS in the relationship between the JTS and TI. Design/methodology/approach – A survey was used in this study for a sample size of 115. The principal component analysis was carried out to examine the factors in JTS and JS. The regression and mediation analyses were applied to assess the relationship among the JTS, JS and TI. Findings – A significantly negative relationship between JTS and TI was found and mediated by JS. The paper also suggests that JS is positively related to JTS but is negatively related to TI, which is in accordance with what have been reported in the earlier studies. Practical implications – This study reinforced the significance of job training in human resource management practices. The employees’ satisfaction with job training that would lead to higher JS and lower TIs was emphasized. Therefore, it becomes important for HRD professionals to consider both the delivery of the training to the employees and the employees’ satisfaction with the training approach when designing the training program. Originality/value – While many different variables have been studied in the relationship with TI, the JTS is rarely discussed. This paper attempts to examine the relationship among JTS, JS and TI with addition of new insights.
Purpose – This paper aims to examine the themes of talent management, work-life balance (WLB) and retention strategies in the hospitality industry. The study was undertaken through an analysis of the key themes in the most recent literature. The paper uses a framework incorporating organisational and industry attributes, personal employee dimensions, work-life conflict and organisational strategies and examines these in relation to whether job satisfaction, organisational commitment and employee retention improve. Design/methodology/approach – The paper uses employee turnover literature to underpin a discussion of successful talent management. Using a key word search in both the hospitality literature and more mainstream management research, it divides the literature into four themes, namely, employee attitudes, personal employee dimensions, WLB and organisational strategies for employee retention. Findings – The key findings emerging from this examination of the literature show that WLB appears to have become one of the key variables when addressing issues of employee management and retention. In the recent literature, the link between employee attitudes, such as job satisfaction and organisational commitment, personal dimensions, such as stress and alcohol abuse, and WLB have become closer and intertwined. These links assist in gaining more focussed strategies to assist in retaining talented staff. Research limitations/implications – The meta-analysis of relevant literature provides an understanding of recent thinking in the area of WLB, talent management and the retention of talented staff. The article reframes the key issues in light of changes in the work environment and presents a new framework for future research and industry application. Practical implications – Given that WLB has become such an important factor, it is critical that managers regularly monitor the levels of WLB being experienced by staff. As staff are not always aware of WLB being a problem until it is too late, managers will need to find appropriate methods for assessing the presence of problems in this area. Social implications – The development of WLB strategies within the hospitality industry will assist in providing a healthier lifestyle for employees. This will then positively impact on family and social relationships. Originality/value – The meta-analysis of relevant literature provides an understanding of recent thinking in the area of WLB, talent management and the retention of talented staff. The article reframes the key issues in light of changes in the work environment and presents a new framework for future research and industry application.
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Purpose – The purpose of this paper is to explore HR managers' and employees' views on the factors affecting employee retention using the perspective of the psychological contract. Design/methodology/approach – Two studies were conducted. First, a sample of HR managers gave their view on the factors affecting employee retention and turnover and described their retention practices. Second, a large sample of employees reported on the importance attached to five types of employer inducements commonly regarded as retention factors, on their evaluation of these inducements and on their loyalty. Regression analysis was used to examine the impact of the delivery of employer inducements on retention. Findings – The HR managers survey indicates that retention practices focus more on the factors believed to cause employee turnover (career opportunities and financial rewards) than on those believed to affect employee retention (social atmosphere, job content, work‐life balance). The focus on career opportunities is supported by the employee survey. The delivery of career opportunities had the strongest impact on employee loyalty while the impact of the delivery of financial rewards was much smaller. Research limitations/implications – It is useful to distinguish between different content dimensions of the psychological contract when studying its impact on employee outcomes. The psychological contract provides a relevant framework for studying employee retention. Practical implications – This paper offers HR professionals' insights into the effectiveness of retention practices. Originality/value – The paper shows how the psychological contract can be applied in retention management and examines impact of different content dimensions of the psychological contract on employee outcomes.
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Purpose – The purpose of this paper is to answer the following two questions: What are the HRM practices that have a significant impact on employees’ functional retention?, and Does the impact of these HRM practices on functional retention differ based on the employee’s status as an expert or a non-expert? Our theoretical foundation rests on human capital theory and social exchange theory. Design/methodology/approach – This study uses longitudinal data that come from multiple surveys conducted on new employees within a Canadian subsidiary of an international information technology (IT) firm. Findings – Results show that four out of five HRM practices under study have a significant and positive impact on functional retention of employees regardless of their expert status: satisfaction with a respectful and stimulating work environment, satisfaction with training and development, satisfaction with innovative benefits and satisfaction with incentive compensation significantly increase functional retention of employees. Functional retention was found to be higher for experts than for their non-expert counterparts. Last, results show that expert/non-expert status play a moderating role between HRM practices and functional retention. Originality/value – In short, this study offers five main contributions to the literature: first, it focuses on retention rather than turnover; second, it goes further by examining functional retention as the dependant variable; third, it distinguishes between two categories of employees: experts and non-experts; fourth, it extends the limited literature on IT workers, HRM practices and retention; and fifth, it is based on longitudinal data whereas the overwhelming majority of published studies have been based on cross-sectional data.