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Constructing factors related to worker retention

Author

Listed:
  • Ing‐Chung Huang
  • Hao‐Chieh Lin
  • Chih‐Hsun Chuang

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.

Suggested Citation

  • Ing‐Chung Huang & Hao‐Chieh Lin & Chih‐Hsun Chuang, 2006. "Constructing factors related to worker retention," International Journal of Manpower, Emerald Group Publishing Limited, vol. 27(5), pages 491-508, July.
  • Handle: RePEc:eme:ijmpps:01437720610683976
    DOI: 10.1108/01437720610683976
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    Citations

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    Cited by:

    1. Benson, Alan & Lepage, Louis-Pierre, 2023. "Learning to Discriminate on the Job," Working Paper Series 10/2023, Stockholm University, Swedish Institute for Social Research.
    2. Inocencia M. Martínez-León & Isabel Olmedo-Cifuentes & Gary Davies, 2023. "The Virtuous Circle of Internal Corporate Reputation and Financial Performance," Corporate Reputation Review, Palgrave Macmillan, vol. 26(2), pages 97-110, May.
    3. Abbas Mohammed Hussein & Majeed Hameed Taher & Luma Majid Hameed, 2021. "Employees Retention Strategy and its Impact on Organizational Memory: An Exploratory Research for the opinion of Faculty Members at Private Colleges on Baghdad," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 10, January.

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