Staff Turnover: Research and its Application to Business

John CaponHuman 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

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

Organisational

Commitment

Intentions to RemainPerceived

Org Support

Community Involvement

Job involvemen

t

RJP

A Model of Military Retention

Disposition JS and OC

Job Satisfaction

Organisational Commitment

Intentions to RemainPerceived

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?