To have and to hold: modelling the drivers of employee turnover and skill retention in Australian organisations

This paper examines the determinants of employee turnover and long-term skill retention in Australian organisations. Three new perspectives are examined: the difference between short-run turnover and long-term retention; the role of different high performance work systems philosophies and human resource practices; and an examination of turnover for various groups of employees based on skill level. The results suggest that the role of learning within organisations is of fundamental importance in reducing short-run turnover and improving long-term skills retention. A series of training and human resource practices have also been found to be important for individual-specific skill categories, but general conclusions for all skill categories cannot be readily made. Finally, different drivers to short-term turnover maybe at play when retention is considered from a long-term strategic perspective.     

The effect of international staffing practices on subsidiary staff retention in multinational corporations

This paper contributes to the scarce body of research on employee turnover in multinational corporations' foreign subsidiaries and addresses some key issues related to dealing with turnover of local staff. Based on a literature review, I conceptualize locals' perceived career prospects and their organizational identification as key variables mediating the relationship between international staffing practices and local staff turnover. In a second step, the paper develops instruments that help international firms to retain their subsidiary staff. Specifically, I focus on how international staffing practices need to be configured to ensure employee retention and I derive moderating factors. My arguments are integrated into a framework for the effect of international staffing practices on subsidiary staff retention in multinational corporations.     

Strategies for adapting to high rates of employee turnover

For many organizations facing high rates of employee turnover, strategies for increasing employee retention may not be practical because employees leave for reasons beyond the control of management or the costs of reducing turnover exceed the benefits to be derived. In this situation managers need to consider strategies that can minimize or buffer the organization from the negative consequences that often follow from turnover. Strategies organizations can use to adapt to uncontrollably high employee turnover rates are presented in this article. In addition, suggestions are made for how managers should make choices among the alternative strategies.     

The impact of psychological ownership on employee retention in mergers and acquisitions

Research has demonstrated that turnover rates among employees and executives in the acquired firm are much higher during an M&A event. Recent empirical and review articles on M&A have also shown that employee retention/turnover can best be understood by looking at psychological attributes and perceptions of M&As, thus drawing significant attention to the psychological and ‘human’ side voids to theoretically exploit and enhance understanding of people-related problems in M&A endeavors. In this article, we develop a moderated mediation model and propose that acquired firm employees' psychological ownership is positively related to acquired firm employees' retention through the direct and mediating effects of employees' commitment and involvement in M&A. We also propose that the effect of acquired firm employees' psychological ownership on employees' commitment and involvement and, ultimately, acquired firm employees' retention is moderated by loss of acquired firm autonomy. We also discuss implications for theory and practice, as well as future research directions of such an employees' psychological ownership perspective on retention effects.     

Job demands–resources: a gender perspective on employee well-being and resilience in retail stores in China

Abstract

Organisational resilience can be promoted through human resource management (HRM) practices that enhance individual employees’ well-being and ability to cope with adversity. However, the extant literature tends to neglect the influence of gender on employee well-being and resilience. Shop floor employees in retail stores often undertake demanding roles, characterised by considerable pressure and low pay, and attendant high levels of employee turnover. Drawing on the job demands–resources model, by analysing data collected from 697 employees at foreign-invested retail stores in China, this paper found that workload and employee participation in decision-making had a similar impact on the well-being of both male and female employees. However, the impact of job security and emotional demands on employees differed by gender. This paper extends the job demands–resources model by articulating the influence of gender on employee well-being. Additionally, its empirical insights, drawn from an emerging economy context, enable a contribution to the literature on employee well-being and resilience. Relevant implications for HRM and resilience are discussed.     

All for one and one for all: A mechanism through which broad‐based employee stock ownership and employee‐perceived involvement practice create a productive workforce

Drawing on social identity theory, this research frames a multimediational model that delineates how broad‐based employee stock ownership (BESO) and employee‐perceived involvement practice in tandem yield a productive workforce at the organization level. In our theoretical model, we propose that social cohesion and voluntary turnover are collective attitudinal and behavioral outcomes resulting from the shared perception of we‐ness that employees experience through both participatory practices. Our path analysis of a multisource, time‐lagged dataset from 176 large U.S. companies revealed the sequential mediating roles of social cohesion and voluntary turnover between these organizational practices and labor productivity. Our theoretical claims and empirical evidence will contribute to a systematic understanding of how and why BESO and employee involvement leverage greater organizational productivity from employees.     

Can a workplace have an attitude problem? Workplace effects on employee attitudes and organizational performance

Using the employee opinion survey responses from several thousand employees working in 193 branches of a major U.S. bank, we consider whether there is a distinctive workplace component to employee attitudes despite the common set of corporate human resource management practices that cover all the branches. Several different empirical tests consistently point to the existence of a systematic branch-specific component to employee attitudes. “Branch effects” can also explain why a significant positive cross-sectional correlation between branch-level employee attitudes and branch sales performance is not observed in longitudinal fixed-effects sales models. The results of our empirical tests concerning the determinants of employee attitudes and the determinants of branch sales are consistent with an interpretation that workplace-specific factors lead to better outcomes for both employees and the bank, and that these factors are more likely to be some aspect of the branches' internal operations rather than some characteristic of the external market of the branch.     

How Does Relative Deprivation Influence Employee Intention to Leave a Merged Company? The Role of Organizational Identification

Recognizing the importance of postmerger integration from a human resource management perspective, this study explores the relationship between employee perceptions of relative deprivation during a merger and acquisition (M&A) process and their turnover intentions. Drawing on social identity theory, we investigate whether the relationship between relative deprivation and turnover intention can be mediated by employee organizational identification. The results, based on a two‐phase survey of 222 employees in a merged Korean company, show that egoistic relative deprivation, defined as people's feelings of deprivation due to their dissatisfaction with their position as an individual, predicts employee turnover intention. Moreover, employee identification with the postmerger organization was found to fully mediate the relationship between egoistic relative deprivation and turnover intention. The article concludes with theoretical contributions, practical implications, and future research directions. © 2014 Wiley Periodicals, Inc.     

The three Cs for cultivating organizational culture in a hybrid world

For years we have known that effective organizational culture is critical to ensuring revenue growth, employee retention, and even stock price acceleration. Yet, culture change is hard. Today, in the hybrid world, most employees still spend the majority of their time working within small work teams, but team members are often remote from one another. These employee interactions are essential to sharing and modeling the norms and behaviors necessary to cultivate the desired culture. Combining behavioral data with the use of organizational network analysis helps to overcome these limitations and provides a deeper understanding of the employee cultural experience—even in the hybrid context. In our research, we evaluated 10 attributes critical to an organization’s culture from more than 50,000 employees across three years. Using passive data, we also re-constructed the employee network based on primary interactions. Our research highlighted three critical cultural patterns that will help to more deeply evaluate culture in a hybrid context, but even more importantly,help target local solutions that can be quickly implemented. We call these the three“C’s” of cultivating culture. We show that organizational culture clusters in the employee network, is contagious among employees, and is contextually dependent.We discuss our key insights on the three C’s, concluding with practical applications for leaders applying these insights in their organization.     

Exploring the interpersonal determinants of job embeddedness and voluntary turnover: A conservation of resources perspective

This paper draws on a conservation of resources perspective to understand employee voluntary turnover. We conceptualise voluntary turnover as an outcome of resource loss, and we view job embeddedness as an indication of resource levels. On the basis of this conceptualisation, we propose that workplace ostracism and leader–member exchange (LMX) affect voluntary turnover via job embeddedness. We also propose an interaction effect of workplace ostracism and LMX: Workplace ostracism increases voluntary turnover by depleting job embeddedness only when people experience high‐quality LMX. Data from 352 employees in a Chinese software company obtained through a three‐wave survey support our model. Our findings illuminate the resource consequences of interpersonal interactions on job embeddedness and voluntary turnover, and we offer practical implications for employee retention.     

Emotional intelligence,job satisfaction,well‐being and engagement: explaining organisational commitment and turnover intentions in policing

This study examines the effect of emotional intelligence upon the job satisfaction, well‐being and engagement of police officers in explaining their organisational commitment and turnover intentions. Survey responses from 193 police officers in Australia were analysed using partial least squares path modelling. As predicted, emotional intelligence leads to job satisfaction and well‐being, with positive path relationships leading to employee engagement and organisational commitment, thereby affecting turnover intentions. Organisational commitment was found to partially mediate the causal relationship between employee engagement and turnover intentions. The findings of this research have important theoretical and practical implications for police officer retention.     

Employee development and voluntary turnover: testing the employability paradox

The employability paradox is a concern among employers. It states that development activities enhancing employees' employability also increase the risk for employee turnover. This study examined this paradox and probed the relationship between six development activities and voluntary turnover mediated by perceived employability. We tested both a turnover‐stimulating path via perceived external employability (i.e. perceived job alternatives with other employers) and a retention path via perceived internal employability (i.e. perceived job alternatives with the current employer) by using two‐wave longitudinal data from 588 employees. The results put the turnover risk into perspective: only upward job transition positively influenced turnover via perceived external employability. Also, the retention path via perceived internal employability was not supported: several development activities were positively related with perceived internal employability, but perceived internal employability did not influence turnover. We did, however, find a direct retention effect of skill utilisation. Overall, the results downplay the employability paradox.     

Employee perceptions of HR practices: A critical review and future directions

Abstract

Scholars are directing more attention to employee perceptions of human resources (HR) practices and have explored issues such as whether and how employees’ idiosyncratic or collective perceptions of HR practices shape employee outcomes. To further this area of research, we seek to determine what authors mean when they refer to “employee perceptions of HR practices”. We review 105 articles from leading human resource management journals and find that employee perceptions of HR practices is not a monolithic concept. Rather, following previous scholars, we identify three distinct components of employee perceptions of HR practices: the ‘what’, ‘how’, and ‘why’. We critically summarize extant literature on these three components of employee HR perception and propose future research directions, including enriching the theoretical foundations of HR communication, embracing cross-national contexts, and enhancing practical relevance.     

Employee bonding and turnover efficiency

This study explores how bonding contracts improve employee attraction and retention. These bonds are payment schemes tied to employment duration, such as the vesting of pensions and stock options. This study presents an employee turnover model in which only the worker knows their taste for their current job. This taste gives the current employer monopsonistic power, resulting in deadweight loss from excessive turnover. Bonding contracts serve as a commitment device for future wages and eliminate such deadweight loss, but only when the roles of bondholders and wage setters are separate. Firms that do this are more competitive to new hires. This model offers several empirical findings regarding a variety of common bonding practices.     

Looking beyond HRM practices in enhancing employee retention in BPOs: focus on employee–organisation value fit

This paper argues that the effectiveness of HRM practices in tackling employee retention can be enhanced by improving the compatibility between employee and organisational values. We test our hypothesis using structural equation modelling on a sample of 258 employees in business process outsourcing (BPO) firms in the Philippines. The results show that the fit between employee and organisation values positively and partially mediates the effects of HRM practices on employee retention. However, employee–organisation value clash in US-owned BPOs was found to have a negative effect on employee retention. Because employees are less likely to leave when they share similar values as their organisations, HRM practices can be used strategically to improve the employee–organisation value fit to improve retention. The implications of the findings for HR managers of BPOs in developing countries are fully discussed.     

Empowering leadership: leading people to be present through affective organizational commitment?*

Abstract

This study tested a mediation model in which empowering leadership was negatively related to three withdrawal behaviors: lateness, absenteeism, and turnover intention, with affective organizational commitment as a mediator. With 294 full‐time US employees, results from structural equation modeling indicated that empowering leader behaviors at one time were positively related to estimates of affective organizational commitment at a second time, which in turn was negatively related to absenteeism and turnover intention at a final time. Additionally, no significant direct effect was found between empowering leadership and withdrawal behaviors, further supporting the mediation model. However, neither empowering leadership nor affective commitment influenced followers' lateness. Empowering leadership, which provides employees with autonomy and developmental support, may have a favorable effect on employees' decisions to attend and stay in the organization, as well as their affective reaction to the organization in the form of psychological commitment. This study extended prior research models by examining a full range of withdrawal behaviors in relation to empowering leadership and showed that commitment may explain why empowering leader behaviors can affect employees' retention decisions.     

Employee involvement and group incentives in manufacturing companies: a multi-level analysis

The effects of employee involvement and group incentives on organisational commitment and turnover intention were examined using data from a survey of over 4,000 employees in 29 manufacturing companies. Using the mediated moderation model, we investigated the moderating role of capital intensity on the relationships between employee involvement and group incentives and these outcomes, and the mediating role of organisational commitment on the effects of employee involvement and group incentives on turnover intention. The findings revealed that employee involvement is more effective in capital-intensive companies than in labour-intensive companies, but group incentives are more effective in labour-intensive companies. The moderated effects on turnover intention were mediated through organisational commitment. Implications for company policies and future research are discussed.     

What are the determinants and managerial motivations for employee ownership in retirement pension plans?

Using the pension database obtained from Form 5500 from 2000 to 2014, we provide the first comprehensive analysis of the determinants of employee ownership in retirement pension plans. By investigating various motivations simultaneously using the horse racing method, we find that firms with higher idiosyncratic risk, weak governance, a greater marginal tax rate, and greater union intensity are more likely to offer employee ownership. This study provides valuable insights to investors that they should properly understand the impact of employee ownership on the firm and appropriately evaluate firms with employee ownership by taking into account diverse motives.     

心理契约视角下的离职模型研究

如何面对员工的流失,尤其是人才的流失,成为众多企业不得不考虑的一个战略问题。要解决人才流失的难题,关键在于抓住人才流失的原因进行对症下药。目前,已有许多文献对员工的离职原因进行了分析,并提出许多离职模型,分析各个变量之间的关系。本文从现有的研究成果出发,结合心理契约的相关理论,尝试从心理契约的角度完善离职模型。     

Using job embeddedness factors to explain voluntary turnover in four European countries

The aging of the European workforce coupled with existing deficits of skilled workers in vital sectors (e.g., information and communication technology) make the attraction and retention of skilled workers a critical strategic human resource management issue. The large-scale, multi-country study reported in this article investigates the causes of voluntary turnover. The study is based on a large European dataset that contains information about a wide variety of variables that have been shown to influence voluntary turnover. The results indicate that the traditional turnover model, where ease of movement and desirability of movement are regarded as important predictors of turnover, receives support. Importantly, the study also shows that a new theory of employee retention – job embeddedness – explains a significant amount of variance above and beyond the role of demographic and traditional variables. In sum, the evidence suggests that the turnover decision is not only about the individual's attitudes towards work or about the actual opportunities in the labour market, but also job embeddedness.