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Article
Publication date: 27 February 2007

Steven Balsam, Richard Gifford and Sungsoo Kim

The objective of this research is to examine the effect of a broad‐based option program on voluntary employee turnover.

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Abstract

Purpose

The objective of this research is to examine the effect of a broad‐based option program on voluntary employee turnover.

Design/methodology/approach

The paper examines the effect of a broad‐based stock option program in a Fortune 100 company during the 1990s and uses logistical analysis.

Findings

Employee turnover is an issue due to the costs involved in recruiting and training replacements. Voluntary turnover can be reduced if a cost can be imposed on the departing employee. This cost need not be an explicit cost, but can take the form of a benefit forgone when the employee departs. Along these lines, stock option grants to employees, if properly structured, have the ability to reduce voluntary employee turnover. The paper finds that voluntary turnover is lower during the periods in which the option cannot be exercised, i.e. the vesting period. This effect is strongest for employees approaching retirement, but also holds for employees leaving the company for other reasons.

Originality/value

The finding that unvested options reduce or delay voluntary turnover, which while intuitive, has not to the author's knowledge been shown previously, and is important for those involved in the compensation plan design process.

Details

Review of Accounting and Finance, vol. 6 no. 1
Type: Research Article
ISSN: 1475-7702

Keywords

Book part
Publication date: 30 September 2021

Minna Paunova and Blagoy Blagoev

This chapter examines some of the demographic and socioeconomic factors, as well as cultural and institutional traditions, that help explain turnover and retention in Bulgaria…

Abstract

This chapter examines some of the demographic and socioeconomic factors, as well as cultural and institutional traditions, that help explain turnover and retention in Bulgaria. The case of Bulgaria illustrates that extant theories of turnover and retention may not be well suited to account for macroeconomic and large-scale social processes spurred by globalization. The focus here is on collective turnover at the organizational and particularly at upper levels of analysis (e.g., industry, region), and the authors emphasize four factors that they believe jointly contribute to the high levels of turnover in the country, namely (1) globalization processes affecting the country’s demography (i.e., mass international migration), (2) the economy (i.e., global labor arbitrage), (3) institutions (i.e., patchwork capitalism), and (4) culture (i.e., shifting generational values). To further scholarly progress, management scholars need to be more attentive to turnover – and its determinants – for larger collectives, that is, at levels above the unit and organizational. The authors provide concrete suggestions on how the case of Bulgaria opens up some avenues for future research on turnover and retention.

Details

Global Talent Retention: Understanding Employee Turnover Around the World
Type: Book
ISBN: 978-1-83909-293-0

Keywords

Abstract

Details

Panel Data Econometrics Theoretical Contributions and Empirical Applications
Type: Book
ISBN: 978-1-84950-836-0

Article
Publication date: 21 April 2023

Kai Zhang and Na Yang

This paper aims to construct a new turnover theory to explain and predict employee voluntary turnover in a more in-depth and comprehensive way.

Abstract

Purpose

This paper aims to construct a new turnover theory to explain and predict employee voluntary turnover in a more in-depth and comprehensive way.

Design/methodology/approach

Based on the literature review and theoretical analysis, this paper constructs a new turnover theory called the psychological goal system driving theory of employee turnover.

Findings

The psychological goal system driving theory of employee turnover advocates that there are psychological goals in the individual psychological world that point to the future and seek self-realization, and that there is a synergistic or competitive relationship among different psychological goals, and thus forming a psychological goal system and the dominant goals (including single goal or goal group) that exist in it; the individual’s dominant goals are the source of motivation, which initiate and organize the individual’s cognition and behavior; when the dominant psychological goals are difficult to achieve or destroyed in the original organization, they will produce continuous negative emotions and drive the individual to choose new and suitable job opportunities to realize themselves. Therefore, the dominant psychological goal is the organizer and driver of the employee turnover behavior, and when they are threatened, they will drive individuals to actively terminate the employment relationship with the current organization to better promote or protect their own realization process and sustainable growth.

Originality/value

This paper constructs a new turnover theory based on the self-organization goal system theory of motivation and personality.

Details

Nankai Business Review International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 20 December 2022

Wisanupong Potipiroon and Orisa Chumphong

This research aims to examine the impact of authoritarian leadership on firm-level voluntary turnover among small and medium-sized enterprises (SMEs) in Thailand and asks whether…

Abstract

Purpose

This research aims to examine the impact of authoritarian leadership on firm-level voluntary turnover among small and medium-sized enterprises (SMEs) in Thailand and asks whether benevolent leadership can mitigate the adverse impact of authoritarian leadership.

Design/methodology/approach

A total of 110 owner-managers of SMEs and 951 employees in Thailand were invited to participate in the study. Tobit regression was used for analyzing aggregated data (i.e. employees' assessment of owner-managers' leadership styles) and firm-level voluntary turnover data provided by SME owner-managers.

Findings

The results showed that authoritarian leadership was positively related to voluntary turnover, whereas benevolent leadership was negatively related to voluntary turnover. Furthermore, the relationship between authoritarian leadership and voluntary turnover was moderated by benevolent leadership, such that the highest levels of voluntary turnover rates were observed among firms with high-authoritarian and low-benevolent leaders. In contrast, firms with high-authoritarian and high-benevolent leaders were not necessarily associated with high turnover rates. These results were observed for both the voluntary turnover rates of full-time and part-time employees and the weighted voluntary turnover rate.

Practical implications

These findings suggest that owner-managers of SMEs should take a balanced leadership approach to managing their employees, acting as paternalistic leaders who tread a fine line between being “strict and cold” and being “strict and warm.” They can achieve this by showing care and genuine concern for employees when enacting authority.

Originality/value

While past research has shed important light on the additive and joint effects of authoritarian and benevolent leadership styles on individual-level outcomes, this study contributes to this body of work by being among the first to show that these effects are also isomorphic at the organizational level of analysis.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 12 August 2022

Huong Le, Joohan Lee, Ingrid Nielsen and Thi Lan Anh Nguyen

This paper examines the factors that influence the work attitudes of employees and the conditional effects of family support on the job demand–turnover intention relationship.

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Abstract

Purpose

This paper examines the factors that influence the work attitudes of employees and the conditional effects of family support on the job demand–turnover intention relationship.

Design/methodology/approach

The authors used a sample of 231 employees working in the manufacturing industry in Vietnam to test the conceptual model.

Findings

Drawing upon the job demands-resources (JD-R) model and job embeddedness theory, the authors found that employees' psychological capital and family support influenced turnover intentions through enhancing their job satisfaction. The authors also found that the influence of job demands on turnover intentions was altered when employees had higher levels of family support.

Originality/value

This study provides important insights for human resource managers regarding what may influence employees' job satisfaction and turnover intentions. The findings advance turnover literature by highlighting the important roles of both internal resources (psychological capital) and external resources (family support) in influencing employee turnover intentions in Vietnam.

Details

Personnel Review, vol. 52 no. 9
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 3 February 2023

Naval Garg, Manju Mahipalan and Nidhi Sharma

The study examined the relationship between workplace toxicity and turnover intentions among Indian healthcare employees. It also explored the role of gratitude as a moderator in…

Abstract

Purpose

The study examined the relationship between workplace toxicity and turnover intentions among Indian healthcare employees. It also explored the role of gratitude as a moderator in the workplace toxicity–turnover intentions relationship.

Design/methodology/approach

The study is based on a cross-sectional research design. The sample comprises 315 employees from the Indian healthcare sector. Approximately, 400 employees are approached both through email and office visits. Responses were received from 336 participants, and 21 incomplete questionnaires were discarded. The relationships between four variables of workplace toxicity and turnover intentions are examined using correlation and hierarchical regression. The moderation effect of gratitude is studied using the PROCESS macro in SPSS 21.

Findings

The results revealed that workplace toxicity could explain 45.8% variations in employees' turnover intentions. It also reported significant negative regression coefficients between all four dimensions of workplace toxicity and turnover intentions. It suggested that toxic health organizations may promote turnover intentions among healthcare employees. Also, findings recommended a significant moderating effect of gratitude amid the relationships of four dimensions of workplace toxicity and turnover intentions.

Practical implications

Hospital administrators must ensure that health professionals have the necessary support to remain effective in the field by providing a conducive working environment emerging from sound human resource practices that promote respect, collegial relationships, teamwork and collaboration. The present research demonstrates gratitude as one such factor that could act as a catalyst within the workplace. Practitioners could achieve a healthy work environment by developing complementary relief measures that build organizational capacities and improve its culture while sponsoring programs for individual employees that instill positivity through awareness of gratitude in everyday life.

Originality/value

This study offered a comprehensive understanding of workplace toxicity by investigating its four dimensions. Also, it is one of the pioneer studies that evaluate the role of gratitude in restricting workplace toxicity-induced turnover intentions.

Details

Journal of Health Organization and Management, vol. 37 no. 2
Type: Research Article
ISSN: 1477-7266

Keywords

Article
Publication date: 10 September 2020

Okechukwu Ethelbert Amah and Kabiru Oyetuunde

Employee turnover has been established as a major cause of the abysmal performance of SMEs in Nigeria. Hence, the study explored the role of servant leadership and the work…

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Abstract

Purpose

Employee turnover has been established as a major cause of the abysmal performance of SMEs in Nigeria. Hence, the study explored the role of servant leadership and the work climate created by the leader in the reduction of employee turnover in SMEs.

Design/methodology/approach

The study involved 1,000 participants drawn from 200 SMEs in the city of Lagos. Cross-sectional data was acquired through questionnaire designed in such a way as to minimise common method variance.

Findings

Results indicate that servant leadership reduced employee turnover, and that employee voice and the career growth dimensions partially mediated this relationship. The study variables explained 59% of the variance in employee turnover.

Practical implications

The paper highlights that SMEs leaders who adopt servant leadership behaviour can reduce employee turnover directly and through the positive work environment they create. SMEs leaders must not only be servant leaders but must ensure that the entire organisation is managed by servant leaders. They achieve this through recruitment and promotion process.

Originality/value

Past studies in Nigeria were in the area of government intervention and the effects of turnover on the productivity of SMEs. This appears to be the only paper that studied the effects of leadership on employee turnover in SMEs in Nigeria. This study advances research by studying the effect of servant leadership and the work environment created by leaders on employee turnover. Thus, the study advances past studies by suggesting possible ways to reduce employee turnover and enhancing the needed productivity of SMEs in Nigeria.

Details

Journal of Small Business and Enterprise Development, vol. 27 no. 6
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 3 August 2010

Anders Dysvik and Bård Kuvaas

Mastery goals and intrinsic motivation have separately been found to predict employee turnover and turnover intention, respectively. The purpose of the present study was to…

15710

Abstract

Purpose

Mastery goals and intrinsic motivation have separately been found to predict employee turnover and turnover intention, respectively. The purpose of the present study was to examine their relative and combined influence on turnover intention in terms of a direct model and a moderated model.

Design/methodology/approach

A cross‐sectional survey was conducted among employees representing more than 400 organizations from a wide range of industrial sectors. The theoretical or subject scope of the paper was to integrate motivational antecedents for employee turnover.

Findings

When assessed jointly, intrinsic motivation was the strongest predictor of turnover intention. Mastery‐approach goals were positively related to turnover intention, but this relationship was moderated by intrinsic motivation. The relationship between mastery‐approach goals and turnover intention was only positive for employees low in intrinsic motivation.

Research limitations/implications

The two most important limitations are the cross‐sectional nature of the study and the reliance on self‐reported questionnaire data. Consequently, experimental and/or longitudinal studies are needed to examine causality issues.

Practical implications

The results suggest that intrinsic motivation holds a salient role for predicting turnover intention. For managers and organizations, then, emphasis should be placed on facilitating work environments supportive of intrinsic motivation in order to maintain employees' turnover intention at low levels.

Originality/value

The most interesting finding is that intrinsic motivation held a substantially stronger relationship with turnover intention than that of mastery‐approach goals. In addition, support for the buffering role of intrinsic motivation was found, as mastery‐approach goals were unrelated to turnover intention when intrinsic motivation was high.

Details

Personnel Review, vol. 39 no. 5
Type: Research Article
ISSN: 0048-3486

Keywords

Article
Publication date: 20 May 2020

Amit Datta

This study aims to identify the underlying dimensions of hospitality organizational climate and then measure the influence of it on employee turnover tendency.

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Abstract

Purpose

This study aims to identify the underlying dimensions of hospitality organizational climate and then measure the influence of it on employee turnover tendency.

Design/methodology/approach

Data were obtained from 504 employees across 18 upscale hotels in India. Factor analysis was adopted to identify the organizational climate dimensions and its influence on turnover tendency was measured by SEM. One-way ANOVA tested the hypothesis related to the perceived differences among the employees regarding turnover intention.

Findings

Result supports the hypothesized relationship between the constructs that the identified organizational climate structure have strong inverse relationship with employee turnover tendency and its dimension “leaders facilitation and support” was found to influence turnover intention the most, followed by “cohesion, clarity and objectivity of system,” “esprit of profession, organization and workgroup” and “job challenge, variety and feedback.” Results also determined differences among the hotel employees of different job levels and gender regarding turnover tendency.

Practical implications

Study reveals that employee turnover tendency is predominantly influenced by the identified factors of organizational climate and more among the male frontline employees and attrition reduces with age and position. This knowledge will help the hotel's management in designing strategic HRM to control attrition.

Originality/value

This study is the first to establish an organizational climate measure of hotel industry in India and opens scope for future research. It also draws attention to the relationship of organizational climate with turnover tendency.

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