Constructing factors related to worker retention

TLDR

The study examines worker mobility by focusing on actual job retention length, extending prior research that has mainly considered intention to leave. The paper investigates how individual, firm, and market factors influence job retention, guided by human capital theory and signaling models. The study used secondary data from 180 former employees and interviews with HR managers, applying hierarchical regression to test the hypothesized relationships. Marriage, gender, honored status, relative pay, promotion speed, and economic cycles significantly affect job retention, while education and performance do not; firm‑based factors outweigh individual factors, and firm‑specific human capital, wages, and signaling effects drive retention. The results should be generalized cautiously due to potential unexamined psychological and sociological factors and the study’s focus on a single firm.

Abstract

Purpose The purpose of this paper is to examine the effect of individual‐based, firm‐based, and market factors on job retention, basing its hypotheses on human capital theory and signaling models. Design/methodology/approach By collecting secondary data on 180 employees who left their jobs at one firm and interviewing human resource managers and those who left for other jobs, factors determining the decision to stay with a firm for a certain period were investigated. Hierarchical regression analyses were performed to test hypothesized relationships. Findings Marriage, gender, honored employee status, relative pay (both inter‐firm and intra‐firm wages), speed of promotion, and economic cycles had a significant impact on how long the employees retained their jobs, but education level and individual performance did not. Firm‐specific human capital, wages, and signaling effects were proved to affect job retention. Firm‐based factors had a significantly more pronounced impact on the ultimate decision than individual‐based factors. Research limitations/implications This study examines worker mobility from the perspective of actual length of job retention, complementing existing streams of research based on intention to leave. Because a few unexamined psychological and sociological factors may confound the findings and because only examine one firm is examined, care should be used when generalizing the findings to other firms. Practical implications The study provides evidence useful in the creation of human resource management practices aimed at retaining competent employees. Originality/value This study's research questions and methods are new to the line of turnover studies, making it a starting point for further lines of exploration.