Constructing factors related to worker retention

Abstract

PurposeThe purpose of this paper is to examine the effect of individual‐based, firm‐based, and market factors on job retention, basing its hypotheses on human capital theory and signaling models.Design/methodology/approachBy collecting secondary data on 180 employees who left their jobs at one firm and interviewing human resource managers and those who left for other jobs, factors determining the decision to stay with a firm for a certain period were investigated. Hierarchical regression analyses were performed to test hypothesized relationships.FindingsMarriage, gender, honored employee status, relative pay (both inter‐firm and intra‐firm wages), speed of promotion, and economic cycles had a significant impact on how long the employees retained their jobs, but education level and individual performance did not. Firm‐specific human capital, wages, and signaling effects were proved to affect job retention. Firm‐based factors had a significantly more pronounced impact on the ultimate decision than individual‐based factors.Research limitations/implicationsThis study examines worker mobility from the perspective of actual length of job retention, complementing existing streams of research based on intention to leave. Because a few unexamined psychological and sociological factors may confound the findings and because only examine one firm is examined, care should be used when generalizing the findings to other firms.Practical implicationsThe study provides evidence useful in the creation of human resource management practices aimed at retaining competent employees.Originality/valueThis study's research questions and methods are new to the line of turnover studies, making it a starting point for further lines of exploration.

The Mediating Effect of HRM Outcomes (employee retention) on the Relationship between HRM Practices and Organizational Performance

“…In the recent time, Bairi, Manohar & Kundu (2011) have acknowledged that employee retention has emerged as the focus point of many researches in the field of HRM, particularly as part of talent management programs in which many of the human resources practitioners have integrated into the program (Law, 2003;Gallagher et al 2006). On the contrary, Huang, Lin, & Chuang (2006) in their studies have observed that despite the emerging importance of employee retention, only few studies have examined the concept. Furthermore, Huang et al (2006) argued that most existing studies tend to focus more on turnover than on retention, itself.…”

“…On the contrary, Huang, Lin, & Chuang (2006) in their studies have observed that despite the emerging importance of employee retention, only few studies have examined the concept. Furthermore, Huang et al (2006) argued that most existing studies tend to focus more on turnover than on retention, itself.…”

Human resource practices, organizational commitment and intention to stay

“…Previos studies have identified age, gender, occupation and industry to correlate with organizational commitment and intention to stay (Huang et al, 2006;Pare and Tremblay, 2007;Taplin and Winterton, 2007). The four control variables were coded as follows: age (1 = 20-29 years, 2 = 30-39 years, 3 = 40-49 years, 4 = 50 years or older), gender (1 = male, 2 = female), occupation (1 = administrator, 2 = information technology technician, 3 = manager, 4 = librarian, 5 = faculty member, 6 = accountant, 7 = engineer, 8 = HR personnel, 9 = physician, 10 = researcher, 11 = nurse, 12 = veterinary personnel, 13 = navy officer, 14 = navy personnel), and industry (1 = university sector, 2 = health care sector, 3 = public sector, 4 = private sector).…”

Navy Career Sea Pay: Is it Still a Viable Compensating Wage Program? A Historical and Financial Analysis

“…These factors include future wages, marriage status, geographic location, age, education, race, and time at sea (Warner & Goldberg, 1984;Brown, 1985;Schiller et al, 1991;Rosen, 1992;Asch & Warner, 2001;Carrell & West, 2005;Huang et al, 2006). The likelihood of earning more money by leaving the military is a key determinant in any retention decision.…”