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Staff Turnover Research for Business Success

Discover the latest research on staff turnover and its impact on business success. Find strategies to retain valuable employees in today's competitive market. Learn about the key predictors of staff retention and how to mitigate turnover costs.

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Staff Turnover Research for Business Success

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  1. Staff Turnover: Research and its Application to Business John Capon Human Resource Advisor Hadlee Kippenberger & Partners

  2. Context • Major organisational phenomena • Turnover costs 1.5 to 2.5 times annual salary (Cascio, 1991) • But, is retention of staff any more important now, than in the past?

  3. Context (Cont’d) • Tight Labour Market conditions -High demand -Low availability -Increasing wage and salary costs

  4. Context (Cont’d) • Organisations simply cannot find enough staff with the right skills (QSBO, Issue 171)

  5. Context (Cont’d) • Sustained shortage • Main constraint on business growth

  6. Context (Cont’d) • Shortages are most pronounced in the South Island • Expected to continue throughout 2004

  7. Retaining Staff • Wage and salary “band-aid”? • More innovative methods to identify retention drivers? - Climate surveys - Turnover research

  8. Recent Research • Griffeth, Hom & Gaertner (2000) Meta-Analysis of the antecedents of turnover - Intentions to leave (0.39) - Organisational commitment (-0.23) - Job satisfaction (-0.19) - Met expectations (-0.18) - Promotional opportunities (-0.16)

  9. Recent Research • Tett & Meyer (1993) Meta-Analysis - Turnover intentions (0.45) - Organisational commitment (-0.33) - Job satisfaction (-0.25)

  10. Recent Research • Conducted in conjunction with NZ Army Field Psych Service and HR Executive • Postal survey of 273 currently enlisted personnel (37% response rate, n=100) • 169-item questionnaire, consisting of robust, empirically derived scales

  11. Recent Research • Significant correlates with intentions to remain in the NZ Army - Organisational commitment (0.43) - Job satisfaction (0.34) - Job involvement (0.24) - Perceived organisational support (0.29) - Organisational citizenship behaviours (0.25) - Community identification (0.20) • No significant relationship between WFC and intentions to remain

  12. Job Satisfaction Intentions to Remain Organisational Commitment A Model of Military Retention • Leading Predictors of Intentions to Remain - Organisational Commitment (ß=.354, p<.001) - Job Satisfaction (ß=.218, p=.031)

  13. Community Identification Job Satisfaction Perceived Org Support Intentions to Remain Organisational Commitment Job involvement A Model of Military Retention • Community Involvement  JS  Intentions to Remain • Job Involvement  OC  Intentions to Remain • POS  OC and JS  Intentions to Remain

  14. Community Involvement RJP Job Satisfaction Intentions to Remain Perceived Org Support Organisational Commitment Job involvement A Model of Military Retention • RJP  POS  JS  Intentions to Remain

  15. Community Involvement RJP Job Satisfaction Intentions to Remain Perceived Org Support Disposition Organisational Commitment Job involvement A Model of Military Retention • Disposition  JS and OC

  16. Conclusions • OC and JS leading predictors of intentions to remain • These two fully mediate relationship between intentions to remain and - Community Identification - POS - Job Involvement - Disposition • RJP  POS  JS  intentions to remain - Conveyed honesty + RJP

  17. Application to Business • Limited Generalisability – but some interesting points to consider - Job satisfaction and organisational commitment - Importance of “community” - conveyed honesty and concern • Highlights the usefulness of climate surveys - Tool for identifying innovative methods for retaining staff • Prediction of turnover propensity pre-hire?

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