Factors such as a health spending account or a gym membership reimbursementrelatively small investments for the organizationare a way for employers to show they care about their employees' health and wellbeing. Chinyio, E., Suresh, S., and Salisu, J. How to Calculate Your Employee Absenteeism Rate - And Why - Gympass J. Manag. Psychol. doi: 10.1108/09564230910995107, Zhu, Y., Wittmann, X., and Peng, M. W. (2012). As an overarching HRM practice, it is often considered a broad collection of activities that refer to continual learning and developing general job and career-related skills (Boon et al., 2011). For instance, the work environment was positively related to employee retention among generation Y (Frye et al., 2020). Another study reported a negative link between the practices of perceived human resource management and turnover intention among SME employees (Reese et al., 2009). These leaders are highly concerned about real-time problems and establish new benchmarks, develop understanding, shape employees behaviours, and accomplish organisational objectives (Middleton et al., 2015; Tian et al., 2020; Iqbal et al., 2021a). Hospitals readiness to implement clinical governance. Hersey, P., and Blanchard, K. H. (1969). Technol. J. Hum. Psychol. J. Chinas manufacturing makes up two-thirds of SMEs (Zhu et al., 2012; Iqbal et al., 2021c; Xuecheng et al., 2022), where most operate in the northern region. Organ. Current findings confirmed the positive connection among the three dimensions of employee retention. Stud. Moreover, we examined the construct reliability based on Cronbachs alpha and composite reliability values. Training and development programmes deal with the employees skills and competencies, enabling them to positively respond to various challenges the organisations face (Rhee et al., 2014). But for goodness sake, dont waste another minute waiting to start creating one.. Generally, employees are easy to retain, provided they see a good match with their employer (Umamaheswari and Krishnan, 2016). However, previous findings focused on offering training programmes related to company-specific skills rather than general skills. (2018). Create simple approaches that teach managers how to shape meaningful conversations, asking how their people are progressing with their professional or personal aspirations. Adekanbi, A. Nurse Educ. Modes of theorizing in strategic human resource management: tests of universalistic, contingency, and configurational performance predictions. In China, SMEs are the driving force of its social and economic development (Hadj, 2020; Hui, 2021), though they are presently finding it hard to operate at their full efficiency. The isolation of working from home has fractured our sense of community. This form of leadership influences employees by altering their perceptions, views, ambitions, and moral standards (Bass and Avolio, 1996). Complementary variable-and person-centred approaches to the dimensionality of workaholism. In this study, the research framework is complex due to its prediction-oriented feature and the presence of independent variables, dependent variables, and moderators. To the best of the authors knowledge, there is no prior evidence concerning the studys integrated relationship of the continuous variables. Nurs. (2014). The upcoming research must then investigate the potential mechanisms of these relations. J. When others see you asking for help or appropriately acknowledging difficulties, it shows them its okay for them to do so. Ombanda, P. O. 23, 3555. Vincent S. Flowers. We want people to feel like everything they do matters not just to the organization, but to each other. J. Appl. 12, 138157. In May 2023, Frontiers adopted a new reporting platform to be Counter 5 compliant, in line with industry standards. Leadersh. We ensured the absence of missing values in the current dataset by marking mandatory against each measurement item in the online survey form. Dev. J. Zhang M. M. et al. Organ. Sci. Product. One company paid for coffee gift cards for employees to reach out across team boundaries and make connections with new colleagues, broadening their networks and helping them maintain a wider organizational perspective. If youre fortunate enough to be in that group, dont assume things cant shift. A specific type of leadership is required to tackle the distinct needs and current challenges of a particular environment. Hence, according to the SLT, a single leadership style is insufficient for every situation (Hersey and Blanchard, 1969). doi: 10.1177/2158244020969394, Iqbal, Q., Ahmad, N. H., and Li, Y. Rev. The top two reasons employees cited for leaving (or considering leaving) were that they didnt feel their work was valued by the organization (54%) or that they lacked a sense of belonging at work (51%). 34, 328337. Maintaining employment and improving health: a qualitative exploration of a job retention programme for employees with mental health conditions. 60, 5368. doi: 10.2307/2393203, Bass, B. M., and Avolio, B. J. Federal Register :: Certification of Signal Employees Sci. We trained department heads and managers on how to interpret those guidelines for their respective work, and then empowered them to use their discretion. Literature review Maintaining, Expanding, and Contracting the Organization, ed. These skills and competencies are vital for their managerial positions and professional growth (Schuler and Tarique, 2012; Ambrosius, 2018). One HR executive I spoke with shed light on the importance of both: In our organization, weve emphasized both purpose and belonging because they must go hand in hand. The first dimension, individualised consideration, is the extent to which leaders understand and prioritise the team members needs. Austral. Richards, B., OBrien, T., and Akroyd, D. (1994). doi: 10.1007/978-3-319-19890-3_43, Sow, M., Ntamon, A., and Osuoha, R. (2016). Some examples of work environment indicators include supervisor support (Stirpe and Zrraga-Oberty, 2017), physical working conditions (Richards et al., 1994), social worker support (Haggins, 2011), and helping behaviours during decision-making (Subramaniam and Mia, 2001). Nursephysician collaboration impacts job satisfaction and turnover among nurses: a hospital-based cross-sectional study in Beijing. You can measure the absenteeism rate (also known as absence rate or absence percentage) for individual employees, for specific departments, or for your whole organization. Bus. J. Nurs. Often employees are not content with their career path. One important factor that jumped out at me among the HR leaders I spoke with was that they all emphasized that their cultures of solidarity were established long before the pandemic struck. Social exchange in organizations: perceived organizational support, leadermember exchange, and employee reciprocity. We have also examined the model fit of hypothesized model based on two-index strategy recommended by Hu and Bentler (1999). The influence of human resource management practices on employee voluntary turnover rates in the Canadian non governmental sector. Manag. doi: 10.1108/LODJ-06-2020-0256, Iqbal, Q., Ahmad, N. H., Li, Z., and Li, Y. Int. Therefore, moderation hypotheses H4, H5, and H6 are rejected. Engaging your employees in times of uncertainty. Int. Person-organization fit, job satisfaction, and turnover intention: an empirical study in the Chinese public sector. Methods 2:292. doi: 10.1037/1082-989X.2.3.292, Deichmann, D., and Stam, D. (2015). Furthermore, the idea is considered a causal factor that promotes intentions to stay with the organisation because it is a pleasant psychological state. The current study examined an essential topic in organisational behaviour: what factors are vital to foster employee retention in SMEs? doi: 10.1108/IJSHE-04-2021-0162, Islam, M. A., Mendy, J., Haque, A. K. M. A., and Rahman, M. (2022). Yet, present statistical findings do not support the moderating effect of transformational leadership on the relationship of job satisfaction, working environment, and training and development with employee retention. Workplace Health Manag. [Epub ahead of print]. Sci. This analysis was related to the four items, namely intellectual stimulation, idealised influence, inspirational motivation, and individualised consideration. doi: 10.19154/njwls.v5i2.4793, Edgar, F., and Geare, A. (2020). The effect of its interaction terms with training and development, work environment, and job satisfaction were estimated. 7, 115. Studies have also indicated that retention is driven by several key factors, which ought to be managed congruently: organizational culture, communication, strategy, pay and benefits, flexible work schedule and career development systems (Logan, 2000). Others include employee retention (Lee, 2005), employee commitment (Ahmad et al., 2017), and employees intentions to stay (Chew and Chan, 2008). Ask specific and open-ended questions: Asking broad questions often leads to employees providing . The final dimension, idealised influence, encourages practical examples of a leader exhibiting innovative thinking, faith, pride, uprightness, interest, effective communication, and trust (Bass and Riggio, 2006). Int. 27, 832849. Similarly, the conditional effect of transformational leadership was analysed based on this relationship. Psychol. Bus. Decision Econ. HBR Learnings online leadership training helps you hone your skills with courses like Attracting and Cultivating Talent. The top two reasons employees cited for leaving (or considering leaving) were that they didn't feel their work was valued by the organization (54%) or that they lacked a sense of belonging at. The normality was assessed based on the skewness and kurtosis values, and in this study, the skewness values of all continuous variables extend from 1.307 to 1.531, which are within 3. Hatcher, L., and ORourke, N. (2013). Resour. Excellence 19, 557573. doi: 10.1080/14330237.2018.1454578, DeCarlo, L. T. (1997). The organization should set parameters for whats best for the business, and then allow local managers to use as much discretion as possible, engaging their teams in how best to meet the requirements of the business while also meeting the needs for flexibility on the team. doi: 10.22146/gamaijb.24020, Boon, C., Den Hartog, D. N., Boselie, P., and Paauwe, J. Multifactor leadership questionnaire. Rev. Resour. Ahmad, A., Bibi, P., and Majid, A. H. A. How does sustainable leadership influence sustainable performance? doi: 10.1080/09585192.2017.1416655, Rubel, M. R. B., Kee, D. M. H., and Rimi, N. N. (2021). (2012). Coyle-Shapiro, J. Product. They indicated that motivational factors included overall job satisfaction, employee professional development programs, mentoring programs, vocation, and supportive environment in the workplace. 23, 2634. According to the McKinsey research noted above, many employers are mistakenly assuming the primary motivations behind mass departures are employees desire for higher-paying jobs or greater work-life balance and flexibility. Equ. Manag. J. Behav. (PDF) Factors Affecting Employee Retention: Proposing an Original Knowledge retention and transfer: how libraries manage employees leaving and joining. In the context of employee retention, an environment must be structured where they feel empowered, valued, and connected to their employers (Ohunakin et al., 2019; Frye et al., 2020); thus, this leadership style is consistent with these requirements (Kim and Park, 2020). Sustainability 13:5002. doi: 10.3390/su13095002, Iqbal, Q., Ahmad, N. H., and Li, Z. doi: 10.4324/9780203838020, Fletcher, L., Alfes, K., and Robinson, D. (2018). Resour. (2005). Hum. In this study, the Cronbachs alpha value of this scale is 0.719. The correlation matrix exposed that no single correlation between continuous variables is greater than 0.90 (Bagozzi et al., 1991); thus, the current study is free from common method bias. Rev. The partial least squares approach to structural equation modeling. doi: 10.1108/PR-11-2018-0478, Yu, Q., Yen, D. A., Barnes, B. R., and Huang, Y.-A. Chinas Digital Economy: Opportunities and Risks. Frank, F. D., Finnegan, R. P., and Taylor, C. R. (2004). Res. doi: 10.1111/jocn.14263, Ping, Z. L., Fu, H. Y., Ye, Z. X., and Zhao, S. (2021). Study on Determining Factors of Employee Retention - Open Journal of SAGE Open 8:215824401881006. doi: 10.1177/2158244018810067, Khan, H. S., Siddiqui, S. H., Zhiqiang, M., Weijun, H., and Mingxing, L. (2021). Nurs. Employees are frustrated due to the ongoing condition of the company due to which they don't feel like working. Khalid, K., and Nawab, S. (2018). Haggins, R. (2011). And if youre not in that group, look deeper at why not. In other words, there is a 20% change in employee retention among SME employees in China for one unit change in job satisfaction, supporting hypothesis H3. J. H5: Transformational leadership significantly moderates the work environmentemployee intentions relationship. Then, let employees co-create the workplace experience. Acta Oeconomica Pragensia 18, 4967. B. J. Adv. These items comprise training and development (0.719), work environment (0.928), job satisfaction (0.921), employees retention (0.794), and individualised consideration (0.889). Supervisor support, training, information accessibility, and counselling lead to higher employee retention (Ooi et al., 2021) and higher employability (Matsuo, 2021). 15:471. doi: 10.2147/PRBM.S340326, Lin, C.-H. V., and Sun, J.-M. J. Pers. J. Psychol. doi: 10.1108/S1474-7979(2009)0000020014. Relat. Among these three variables, training and development have the highest positive effect on employee retention. Employee turnover and retention strategies: An empirical study of public sector organizations of Pakistan. All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. doi: 10.1037/a0015673, Rhee, J., Zhao, X., and Kim, C. (2014). Today 35, 580589. Nevertheless, the PLS-SEM does not require data normality; hence, non-normal distribution is not an issue. 10:210. doi: 10.5539/ass.v10n13p210, Rhoades, L., and Eisenberger, R. (2002). Given these points, the discussion above drives the development of hypothesis H2: H2: Work environment significantly and positively influences employee retention. London: Pearson. Leadersh. (2016). Gift cards for food-delivery apps, handwritten notes of appreciation or concern, and acknowledging moments like birthdays or anniversaries all send messages that you see people as more than workers. A structural equation model of a national survey of nursing faculty. Leveraging transformational and transactional leadership to cultivate the generation of organization-focused ideas. Hence, transformational leadership has become one of the most crucial roles in the organisational success of Chinas SMEs (Lin and Sun, 2018). Leadersh. Asian Soc. J. 14, 1230. Res. doi: 10.1037/0021-9010.81.3.219, Singh, S. K., Del Giudice, M., Chierici, R., and Graziano, D. (2020). PDF Factors Influencing Employee Retention; The Moderating Roles - HRMARS We adopted the 4-item scale from Delery and Dotys (1996) study to measure training and development. Human asset management, a challenge for service sector: an analysis from employee retention perspective. Finally, coach your managers on how to genuinely care for others. Educ. (2017). Past studies reported a positive impact of training and development on employee retention in Pakistans universities (Bibi et al., 2018) and Indian ceramic industries (Umamaheswari and Krishnan, 2014). Int. J. Manpower 29, 503522. It's Time to Reimagine Employee Retention - Harvard Business Review First, build a culture of solidarity. Work force retention: role of work environment, organization commitment, supervisor support and training & development in ceramic sanitary ware industries in India. Frontline employees high-performance work practices, trust in supervisor, job-embeddedness and turnover intentions in hospitality industry. 5, 5570. Market. Res. Q. (2016). Other studies supported the positive impact of the work environment on the employee turnover intention in Chinas health sector (Wan et al., 2018; Wu et al., 2020). And they did. J. (2015). 26, 204219. doi: 10.1504/IJPQM.2011.038685. J. doi: 10.1108/01437730510633728, Lewin, K., Lippitt, R., and White, R. K. (1939). Employee retention models and factors affecting employees retention in IT companies. the role of personal resources in the perceived organizational politics and job attitudes relationship. Entrepreneurial bricolage and online store performance in emerging economies. First, this study was conducted in the northern region of China, hence, increasing the generalisation in the context of China. Front. Int. 29, 27012728. Keywords: Human resources, employee retention, job satisfaction, literature. In the present study, hypothesized model was found fit based on comparative fit index (CFI) (0.96 > 0.95) and standardised root mean square residual (SRMR) (0.049 < 0.09) (Hu and Bentler, 1999), as compared to alternative models. In this case, individuals perceive content with their work (Fletcher et al., 2018). Finally, more than 50% of the participants (n = 153) acquired 510 years of working experience, while nine participants with more than 20 years of professional experience. Green innovation and environmental performance: the role of green transformational leadership and green human resource management. If your WFH policy offers minimal or no flexibility and your justification for requiring everyone to be back in the office is something vague like, Its better for our culture if people are physically together, expect people to resent and likely resist it. Int. The objective of the study is to examine the factors affecting employee retention in IT industry at Bangalore city. (2015). Low employee retention results in various issues, that is, increased training and recruitment cost, insufficiently skilled employees, and disruption to organisational operations (Ayuninnisa and Saptoto, 2015; Ping et al., 2021). Bus. (2016), who found it highly reliable (alpha = 0.870). 28, 136140. Eur. (2009). The relationship between perceived training opportunities, work motivation and employee outcomes. J. Eng. This study revealed that all indicator loadings are more significant than 0.50 and less than 0.944, which are deemed acceptable. J. Clin. Organ. In this case, we adopted a 3-item scale from Cammann et al.s (1979) study to measure job satisfaction. 40, 402420. Meanwhile, training and development reported a significant indirect impact on employee retention through ethical climate (Yamin, 2019) and employee engagement (Fletcher et al., 2018). Manag. doi: 10.15171/ijhpm.2014.111, Fishbein, M., and Ajzen, I. Rather than worrying that such personal interests might distract from work efforts, smart managers realize that by taking an interest in the whole employee, you ensure that they bring that same creativity and energy to their day jobs. Namex Int. Signal employees are also subject to regular and pre-employment random drug and alcohol testing. doi: 10.1108/VINE-06-2014-0042. A Probit regression model through the stepwise technique was used to analyse the collected data. Practitioners and academicians face extreme difficulty in collecting objective data from organisations. Manag. It consisted of weekly peer-mentoring sessions between people in adjacent functions that regularly worked together. Employees retention in Nigerias hospitality industry: the role of transformational leadership style and job satisfaction. Canterbury: Canterbury Christ Church University. Fam. A study among millennial employees in Bangladesh concluded a significant positive effect of green training and development on employee retention (Islam et al., 2022). 11, ENo. This research closely looked at the following broad factors: development opportunities, compensation, work-life balance, management/leadership, work environment, social support, autonomy, training and de-velopment. That said, employers who mishandle the design of workplace experiences may be asking for trouble. Before analysis, data screening must be conducted, which concerns missing values, outliers, data normality, and common method bias. doi: 10.1177/0018726714541162, Colson, T. L., and Satterfield, C. (2018). Tour. Meanwhile, a qualitative study among IT industry employees showed that employer branding vis--vis job satisfaction strongly determines employee retention (Tanwar and Prasad, 2016). A construct has acceptable reliability, provided its Cronbachs alpha or composite reliability value is greater than 0.70 (Sarstedt et al., 2019). (2020). doi: 10.1002/mde.3415. Psychol. They must also ensure sufficient resources to employees following the organisational goals. i CERTIFICATION We, the undersigned, certify that we have read and hereby recommend for acceptance by the Mzumbe University, a research entitled "Factors Affecting Employees Retention in Private Company: The Case of Exim Bank in Dar es Salaam", in partial fulfillment of the requirements for award of the Degree of Master of Human Resource Management at Dev. In my 15-year study of more than 3,200 leaders, when purpose was activated in actions, not just words, an organization was three times more likely to have people treat each other fairly and serve the greater good. 86, 4251. Mwita, K. M., and Tefurukwa, O. Bus. Thus, the current study offers strong empirical contributions to the field of training and development followed by the work environment. Leadersh. Delery and Doty (1996) have defined training and development as the degree to which organizations offer training to employees to foster their skills. Reciprocation of perceived organizational support. Using Multivariate Statistics. Others include employee retention (0.576), individualised consideration (0.706), idealised influence (0.712), inspirational motivation (0.669), intellectual stimulation (0.692), and transformational leadership (0.677) (see Table 1). Manage. (2018). 36, 421458. Bus. 1, 7192. A study of job satisfaction among non PhD faculty in universities. Kashyap and Verma (2019) explored the effect of the dimensions of employer branding (social, economic, etc.) Manage. The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest. Psychol. I wanted to find out if there were any common patterns that shed light on what it really takes to retain talent in such a volatile time. Resour. 51, 15871603. The employee retention triad in health care: exploring relationships amongst organisational justice, affective commitment and turnover intention. The current research offered several recommendations for practitioners and policymakers. Employees in China prefer leaders who exhibit transformational leadership attributes in the form of role models, non-use of abusive power, selflessness, and centring on employees well-being (Su et al., 2019). Bus. doi: 10.4324/9781410617095, Bibi, P., Ahmad, A., and Majid, A. H. A. Manag. doi: 10.1080/09585192.2011.538978, Boyatzis, R., Rochford, K., and Cavanagh, K. V. (2017). Life Stud. Hence, the theory is used to investigate the employees behaviour, enabling organisations to enforce certain HRM practices and igniting unique social exchange relationships. Electron. The role of leadership style on turnover intention. One of our employees, whose mom had recently lost a long battle with cancer, volunteered at a local hospice center, and advocated to our corporate philanthropy group to donate funds to upgrade the facility. Moreover, inspirational motivation provides necessary support to the employees, enabling them to pursue organisational goals. (2018). We employed FornellLarcker Criterion to examine the discriminant validity of the variables. Factors Affecting Employee's Retention: Integration of Situational Q. J. Hum. Health Policy Manag. Audit. 56, 326332. Here are the practical ways these organizations are involving their employees in creating a positive workplace experience: Its critical that any policy you put in place has a direct tie to the customers you serve. 71, 312355. Res. The AVE values of multiple items revealed values higher than 0.50, that is, training and development (0.541), work environment (0.823), and job satisfaction (0.864). Organ. Train. Leadership 8, 3248. Int. This concept facilitates the concept of adapting to varying circumstances and work environments (Hersey and Blanchard, 1969). J. Ind. My own research bears this out. 7, 161174. doi: 10.1108/JKM-10-2017-0453, Govaerts, N., Kyndt, E., Dochy, F., and Baert, H. (2011). We adopted measurement scales of four continuous variables in the current study. Work Occup. Pers. Other studies echoed the current studys results. 96, 155163. London: Psychology press. Ringle, C. M., Sarstedt, M., Mitchell, R., and Gudergan, S. P. (2020). Patterns of aggressive behavior in experimentally created social climates.. Al-Hamdan, Z., Manojlovich, M., and Tanima, B. 14, 82718298. Chinese SMEs may, therefore, plan their training and development programme more effectively based on their employees needs. Annu. Tour. The contingent role of transformational leadership was also analysed under the Situational Leadership Theory (SLT). 24, 561577. Organizational politics, transformational leadership and neglect in banking sector. Organisational support in the form of supervisor support, rewards, and favourable working conditions are vital to stimulating organisation-related outcomes, that is, reduced withdrawal behaviours and commitment (Rhoades and Eisenberger, 2002; Gillet et al., 2022). (2021b). Therefore, partial least squares-structural equation modelling (PLS-SEM) was selected following Hair et al. The current COVID-19 situation has seen employee retention emerge as the core problem for organisations across the globe (Karatepe and Olugbade, 2017; Yousaf et al., 2019). Maaitah, A. M. (2018). According to this theory, a person, who benefits from someone, feels obligated to repay that person through positive behaviours and devotion. doi: 10.1016/j.leaqua.2014.04.005. Service quality about health sector of UK and Pakistan: a Comparative Study. First, the literature is enriched by offering empirical support on the integrated understanding of the three dimensions and employee retention. Moreover, practitioners should work on the proper fund allocation to develop a positive work environment. Stop throwing money or superficial perks at the problem and start shifting your culture to one people are thrilled to work in instead of one they cant wait to leave.
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