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Staff Turnover: Research and its Application to Business

Staff Turnover: Research and its Application to Business. John Capon Human Resource Advisor Hadlee Kippenberger & Partners. Context. Major organisational phenomena Turnover costs 1.5 to 2.5 times annual salary (Cascio, 1991)

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Staff Turnover: Research and its Application to Business

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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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