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

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Presentation transcript:

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)  But, is retention of staff any more important now, than in the past?

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

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

Context (Cont’d)  Sustained shortage  Main constraint on business growth

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

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

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)

 Tett & Meyer (1993) Meta-Analysis - Turnover intentions (0.45) - Organisational commitment (-0.33) - Job satisfaction (-0.25) 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

 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 Recent Research

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

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

 RJP  POS  JS  Intentions to Remain Job Satisfaction Organisationa l Commitment Intentions to Remain Perceived Org Support Community Involvement Job involvemen t RJP A Model of Military Retention

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

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

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?