You Paid for the Skills, Now Keep Them: Tuition Reimbursement and Voluntary Turnover

Benson, George S.; Finegold, David; Mohrman, Susan Albers

doi:10.5465/20159584

Cited by 108 publications

(183 citation statements)

References 51 publications

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“…As a consequence, personnel turnover increases, because employees can easily be poached by other organizations (Green et al, 2000). Although most studies on training and personnel turnover do not distinguish between general and specific training, or merely focus on firm-specific training (Bishop, 1997), a few empirical studies provide some evidence for the human capital perspective, indicating that as a consequence of general training participation, workers' turnover increases (Bedeian et al, 1992;Benson et al, 2004;Sieben, 2007).…”

Section: Human Capital Perspective and Turnover Intentionsmentioning

confidence: 99%

“…Employee turnover causes high costs of recruiting and training new employees. Moreover, organizational forgetting (Darr et al, 1995) and a reduction of morale among remaining employees are common negative consequences of excessive turnover (Lee and Bruvold, 2003;Benson et al, 2004). Therefore, firms attempt to reduce this turnover by increasing employees' commitment to their firm, e.g.…”

Section: Social Exchange Perspective and Turnover Intentionsmentioning

confidence: 99%

“…The other perspective, however, puts forward that by investing in the development of employees, their turnover intentions decrease (Benson et al, 2004;Sieben, 2007). Several studies have found that HRD practices affect the behaviour and attitudes of employees (Guest, 2002;Edgar and Geare, 2005;Muse and Stamper, 2007).…”

Section: Introductionmentioning

confidence: 99%

“…For this reason, human capital theory assumes that firms will not pay for this training. However, several studies do show that firms usually also pay the training costs when their workers participate in general training (Benson et al, 2004).…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Does perceived support in employee development affect personnel turnover?

Koster¹,

Grip

Fouarge

2011

The International Journal of Human Resource Management

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This paper focuses on the question whether it is beneficial for firms to invest in the general skills of their workforce or that these training investments merely encourage personnel turnover. We examine two contrary theoretical perspectives on how investments in employee development are related to their turnover behaviour. Estimation results derived from a sample of 2,833 Dutch pharmacy assistants show that participation in general training does not induce the intention of assistants to quit, as predicted by human capital theory. We find that a firm's investments in general training, significantly contribute to the perceived support in employee development (PSED) among their workforce. Our results also show that PSED is negatively related to the intention of employees to quit the firm. This effect is to a large extent mediated by the job satisfaction of pharmacy assistants. Our findings support the importance of social exchange theory in explaining turnover behaviour as a consequence of personnel development practices. It should be noted, however, that PSED only diminishes the intention to quit for other occupations.

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Section: Human Capital Perspective and Turnover Intentionsmentioning

confidence: 99%

Section: Social Exchange Perspective and Turnover Intentionsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Does perceived support in employee development affect personnel turnover?

Koster¹,

Grip

Fouarge

2011

The International Journal of Human Resource Management

View full text Add to dashboard Cite

show abstract

“…This finding may help explain why previous researchers have not found a significant relationship between expatriates' internal career prospects and turnover intentions (Stahl et al, 2009;Van der Heijden et al, 2009): at least in the shortterm, it appears that the firm-specific learning associated with international assignments may compensate for a lack of perceived career prospects. Although research has examined "general" knowledge development (e.g., participation in tuition reimbursement programs) as predictors of turnover (Benson, Finegold, & Mohrman, 2004), we are not aware of research that has considered how developing firmspecific human capital relates to turnover or retention. Our findings suggest that career-related issues, in general, may play an important role in retention decisions especially for managerial and professional workers.…”

Section: Theoretical Implicationsmentioning

confidence: 99%

Why do international assignees stay? An organizational embeddedness perspective

2011

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We apply an organizational embeddedness perspective to examine international assignees' retention with the organization. Specifically, we hypothesize that assignees' social ties within and their perceived fit with the host unit positively relate to two sacrifices with leaving the organization: their firmspecific learning during the assignment and their perceived career prospects in the organization. Perceived career prospects is expected to predict subsequent retention, moderated by firm-specific learning. These hypotheses are tested using a sample of 143 inpatriates in ten German multinationals with retention measured two and four years later. We show that inpatriates' trusting ties with HQ staff and their fit with the HQ positively relates to their firm-specific learning and their perceived career prospects, and that the latter predicts their retention two and four years later. Perceived career prospects mediates the direct relationship between inpatriates' fit with the HQ and inpatriate retention, and the indirect relationship between inpatriates' trusting ties with HQ staff and their retention. Furthermore, inpatriates' firm-specific learning mitigates the effect of perceived career prospects on retention decisions two years later. We contribute to the organizational embeddedness, careers, and international business literatures by explaining when and how facets of organizational embeddedness relate to assignee retention.

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Tuition reimbursement, perceived organizational support, and turnover intention among graduate business school students

Pattie

Benson

Baruch

2006

Human Resource Dev Quarterly

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Recent research has shown that while tuition reimbursement is generally associated with employee retention, employees may be more inclined to switch jobs when they earn graduate degrees. This article investigates the relationship between employees currently receiving tuition reimbursement and intention to leave the organization. Analysis of survey data from 322 employed graduate students shows that receiving tuition reimbursement is positively related to perceived organizational support, which reduces turnover intention. However, employees working toward degrees unrelated to their current jobs express greater intention to leave the organization, which increases as they near graduation.

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You Paid for the Skills, Now Keep Them: Tuition Reimbursement and Voluntary Turnover

Cited by 108 publications

References 51 publications

Does perceived support in employee development affect personnel turnover?

Does perceived support in employee development affect personnel turnover?

Why do international assignees stay? An organizational embeddedness perspective

Tuition reimbursement, perceived organizational support, and turnover intention among graduate business school students

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