Excellence 19, 557573. Q. (2005). The findings revealed a significant positive impact of training and development, work environment, and job satisfaction on employee retention. One of our employees, whose mom had recently lost a long battle with cancer, volunteered at a local hospice center, and advocated to our corporate philanthropy group to donate funds to upgrade the facility. Multidiscip. Schuler, R. S., and Tarique, I. Open J. Soc. And with more companies offering remote work opportunities that dont require people to relocate from homes and communities they cherish, poaching talent will be easier. Covella, G., McCarthy, V., Kaifi, B., and Cocoran, D. (2017). That said, employers who mishandle the design of workplace experiences may be asking for trouble. Stay interviews and exit interviews. doi: 10.5861/ijrsp.2015.1055, Bagozzi, R. P., Yi, Y., and Phillips, L. W. (1991). Psychol. Power Educ. 28, 831839. Here are the practical ways these organizations are involving their employees in creating a positive workplace experience: Its critical that any policy you put in place has a direct tie to the customers you serve. Accelerate your career with Harvard ManageMentor. These factors have substantial role to play in making employee stay i.e. The effects of pay satisfaction and affective commitment on turnover intention. Chinas manufacturing makes up two-thirds of SMEs (Zhu et al., 2012; Iqbal et al., 2021c; Xuecheng et al., 2022), where most operate in the northern region. doi: 10.1108/13665621111097245. doi: 10.1108/VINE-06-2014-0042. Manage. doi: 10.1108/IJSHE-04-2021-0162, Islam, M. A., Mendy, J., Haque, A. K. M. A., and Rahman, M. (2022). Despite the fact that several studies have been performed on this topic, little research has been conducted on examining the causes and leading factors of turnover as well, as advising some feasible approaches, which can be applied by bosses to ensure that employees will continue in their respective . Rev. A sample of the item is my leaders give me tasks with enthusiasm. A previous study (Ohunakin et al., 2019) indicates high reliability where Cronbachs alpha values of its four dimensions were between 0.88 and 0.92. The impact of job retention on continuous growth of engineering and informational technology SMEs in South Korea. The present study introduced the moderating effect of transformational leadership on the relationship of the three dimensions with employee retention. Organ. doi: 10.1002/joe.22089, Sarstedt, M., Hair, J. F., Cheah, J. H., Becker, J. M., and Ringle, C. M. (2019). Chin, W. W. (1998). Forecast. Third, a direct connection was found between the three dimensions with employee retention. Employee retention-prespective of employees. (2011). employee retention is one of the most critical issues facing organizational managers as result of Empirical evidence from selected ASEAN countries. Human asset management, a challenge for service sector: an analysis from employee retention perspective. J. Manpower 29, 503522. That kind of thing happens regularly here. 23, 2634. (2005). 14, 1230. Iqbal, Q. In the service industry, the aforementioned three dimensions are viewed as vital factors in promoting employee retention (Mohanty and Mohanty, 2016). The results supported this proposition, resulting in the acceptance of hypothesis H2, aligning with previous findings (Pek-Greer and Wallace, 2017; Frye et al., 2020; Wu et al., 2020). This idea elicits obligations within employees to repay the organisation (Koster et al., 2011). Meanwhile, job satisfaction is defined as the pleasurable emotional state emerging from the job appraisal as facilitating the accomplishment of ones job values (Locke, 1976; Zhang M. M. et al., 2016). salary, rewards and recognition, compensation, retirement benefits plan, promotion, involvement in decision making and in designing retention strategies. (2018). All of the HR executives cited purpose as fundamental to a culture that retains top talent. Training and development programmes deal with the employees skills and competencies, enabling them to positively respond to various challenges the organisations face (Rhee et al., 2014). Henseler, J., Ringle, C. M., and Sinkovics, R. R. (2009). (2012). SAGE Open 8:215824401881006. doi: 10.1177/2158244018810067, Khan, H. S., Siddiqui, S. H., Zhiqiang, M., Weijun, H., and Mingxing, L. (2021). Glob. Psychol. And if youre not in that group, look deeper at why not. Psychol. 109, 101110. Training and development is the degree to which training within the organisation is offered to the employees to foster their skills (Delery and Doty, 1996). doi: 10.1080/13602381.2018.1451124, Denton, D. K. (2011). doi: 10.1007/s10490-011-9263-7, Keywords: compensation, staff retention, working environment, job satisfaction, sustainable leadership, Citation: Xuecheng W, Iqbal Q and Saina B (2022) Factors Affecting Employees Retention: Integration of Situational Leadership With Social Exchange Theory. A survey is conducted within multiple sectors to collect data. Scholarsh. Before analysis, data screening must be conducted, which concerns missing values, outliers, data normality, and common method bias. 3, 233252. First, the literature is enriched by offering empirical support on the integrated understanding of the three dimensions and employee retention. This list can be extended to peer support, organisational culture, and work-life balance (Deshwal, 2015; Ombanda, 2015). How to specify, estimate, and validate higher-order constructs in PLS-SEM. One HR executive I spoke with shed light on the importance of both: In our organization, weve emphasized both purpose and belonging because they must go hand in hand. Role of support in workfamily interface among university faculty in India. Tour. Come and join us: how tech brands use source, message, and target audience strategies to attract employees. I recently spoke with six human resource executives from companies reporting that their organizations are not experiencing higher-than-normal attrition. Current findings confirmed the positive connection among the three dimensions of employee retention. Adm. Al-Hamdan, Z., Manojlovich, M., and Tanima, B. Educ. 6, 235254. 10, 269299. The concept is defined as a positive state where employees share their feelings about their job (Locke, 1976), ranging from moderate- to low-level satisfaction (Locke, 1976; Quigley et al., 2007). COMSATS University Islamabad, Sahiwal campus, Pakistan, Institute of Business Administration, University of the Punjab, Lahore, Pakistan. Lack of proper training and development programs hinders their career growth. The pandemic has created a greater appreciation for our shared humanity, offering endless opportunities to care for those who are struggling. doi: 10.22146/gamaijb.24020, Boon, C., Den Hartog, D. N., Boselie, P., and Paauwe, J. doi: 10.1108/LODJ-06-2020-0256, Iqbal, Q., Ahmad, N. H., Li, Z., and Li, Y. 38, 101109. Front. Statistically, 44% of the top management in organisations operating in China view this issue as a critical barrier to employee retention (Mashiah, 2021). The Michigan Organizational Assessment Questionnaire. Maintaining, Expanding, and Contracting the Organization, ed. 17, 186S206S. Reciprocation of perceived organizational support. Ahmad, A., Bibi, P., and Majid, A. H. A. Pers. Employee participation and employee retention in view of compensation. Eng. Manag. Organ. 1. Next, we applied Harmans single factor test and the correlation matrix procedure to examine the common method bias. Moreover, positive dispositions of employee growth can be achieved via motivation and modifying their skills or attitude toward organisational effectiveness (Gope et al., 2018; Yamin, 2019; Khan et al., 2021). Knowledge retention and transfer: how libraries manage employees leaving and joining. Reese, R. J., Usher, E. L., Bowman, D. C., Norsworthy, L. A., Halstead, J. L., Rowlands, S. R., et al. (1976). Among the many insightful perspectives shared, three practices appeared to be universal across these companies. Most employers are anxious about the mass exodus happening from todays workplaces. Accordingly, we collected data from 287 employees of SMEs in northern China by employing a convenience sampling approach, exhibiting a response rate of 57.40 percent. Meanwhile, the Mahalanobis distance test revealed that the P-value of 15 cases is less than 0.001, a clear indicator of multivariate outliers; therefore, the 15 responses were excluded from the dataset. Extended Internal Orientation and Its Effect on Employees Behaviour: Migrant Workers in Chinese Manufacturing Industry. Ombanda, P. O. Tour. J. Nurs. Second, this study augments the SET by examining the effect of training and development, work environment, and job satisfaction on employee retention. Moreover, the current descriptive analysis revealed that participants seek more idealised influence than other dimensions of transformational leadership in Chinese SMEs. Leadersh. Manag. Their skills become limited with time, and they lose interest in what they do. One company paid for coffee gift cards for employees to reach out across team boundaries and make connections with new colleagues, broadening their networks and helping them maintain a wider organizational perspective. Previous studies found that transformational leadership negatively impacts employees turnover intention (Maaitah, 2018) but positively affects their knowledge base (Fletcher et al., 2018). Employees in China prefer leaders who exhibit transformational leadership attributes in the form of role models, non-use of abusive power, selflessness, and centring on employees well-being (Su et al., 2019). Our corporate communications group did a video interview on the story so our 40,000 employees could feel good. J. Hum. Int. 3, 473485. Second, the insights on the conditional role of transformational leadership were elaborated in the context of SLT. J. SAGE Open 10, 116. Nursephysician collaboration impacts job satisfaction and turnover among nurses: a hospital-based cross-sectional study in Beijing. Sketching on the Social Exchange Theory (SET), the present study aims to investigate the direct relationship between training and development, work environment, and job satisfaction with employee retention. doi: 10.1037/a0015673, Rhee, J., Zhao, X., and Kim, C. (2014). Int. Asian Soc. Bus. Qual. Similarly, the composite reliability values of these variables are greater than 0.70 (see Table 1). 17, 445464. Manag. Washington, DC: International Monetary Fund. In Nigeria, a significant positive effect of various elements was found on employee retention in universities. Capital and migrant labour in a time of labour shortage in South China. J. Appl. Health Policy Manag. Sustainable leadership in frontier asia region: managerial discretion and environmental innovation. In reaching this determination with respect to signal employees, the Secretary cited a variety of factors. 10, 92104. J. Eng. The management should centre on developing the work environment, ensuring satisfied employees, establishing open communication, and fostering ideas while offering peer support. Sci. First, build a culture of solidarity. doi: 10.1108/JKM-10-2017-0453, Govaerts, N., Kyndt, E., Dochy, F., and Baert, H. (2011). Organ. Friedman, E., and Kuruvilla, S. (2015). Organ. 22, 24032418. 4, 6974. The last 18 months have sharply awakened our innate hunger for meaning and purpose. Supervisor support is critical to replenish employee physical and psychological resources to increase their retention probability (Kalliath and Kalliath, 2014). The role of leadership style on turnover intention. Workfamily conflict: coping strategies adopted by social workers. Psychol. We adopted measurement scales of four continuous variables in the current study. Job satisfaction concerns employees evaluations of their jobs based on perceptions by comparing their actual job outcomes with desired ones (Schleicher et al., 2011). Employee retention and employee engagement is one of the most challenging issues for human resource management. The upcoming research must then investigate the potential mechanisms of these relations. The project is to test and research the main factors that influence recruitment and retention with a focus on the company Sherwin-Williams. High employee turnover is an indicator that the company polices are not employee friendly and hence requires improvement . By understanding the reasons behind staff turnover, employers can devise initiatives that reduce turnover and increase employee retention. doi: 10.1108/00483480510612503, Eisenberger, R., Armeli, S., Rexwinkel, B., Lynch, P. D., and Rhoades, L. (2001). J. Embedding familiness in HRM practices to retain a new generation of migrant workers in China. Are high-performance work systems always a valuable retention tool? Furthermore, training is the fundamental source of competitive advantage and employee retention (Umamaheswari and Krishnan, 2016; Yamin, 2019). J. Hum. Rev. Offering Relevant Environmental Factors. In this case, we adopted a 3-item scale from Cammann et al.s (1979) study to measure job satisfaction. Relat. Manag. Jordanian nursing work environments, intent to stay, and job satisfaction. Raihan, J. M. H. (2012). Market. Moreover, shared vision is directly related to the employees engagement (Boyatzis et al., 2017) and continuous improvement (Fardazar et al., 2015; Iqbal and Piwowar-Sulej, 2022). Examining the black boxof human resource management in MNEs in China: exploring country of origin effects. doi: 10.1287/orsc.1060.0223. This study has enriched the literature on employee retention and the leadership arena. Kaur, R. (2017). Employee motivation and retention: issues and challenges in startup companies. London: Pearson. doi: 10.1002/mde.3415. 22, 7086. doi: 10.1177/0018726714541162, Colson, T. L., and Satterfield, C. (2018). Practitioners and academicians face extreme difficulty in collecting objective data from organisations. Employee retention is a process through which employees are influenced to stay with their organisations for a longer period (Hom and Griffeth, 1995). (2017). Int. J. Manag. J. Adv. Int. J. Hum. HBR Learnings online leadership training helps you hone your skills with courses like Attracting and Cultivating Talent. Multilevel impacts of transformational leadership on service quality: evidence from china. In the present study, hypothesized model was found fit based on comparative fit index (CFI) (0.96 > 0.95) and standardised root mean square residual (SRMR) (0.049 < 0.09) (Hu and Bentler, 1999), as compared to alternative models. doi: 10.1177/0730888413516473, Perreira, T. A., Berta, W., and Herbert, M. (2018). The underlying reasons are due to the leaders direct role in developing organisational climate rather than their immediate effect on job satisfaction. Res. International Journal of Scientific and Research Publications, Volume 7, Issue 5, May 2017 818 ISSN 2250-3153 www.ijsrp.org FACTORS INFLUENCING RETENTION OF HEALTH WORKERS IN THE PUBLIC HEALTH SECTOR IN KENYA: A CASE STUDY OF . 28, 111126. Workers' retention is a major issue that most organisations are faced with especially in the Sub-Saharan African work environment (Xuecheng et al., 2022;Zayed et al., 2022;Kundu & Gahlawat,. Moreover, univariate outliers and multivariate outliers were investigated through Z-score and the Mahalanobis distance test. Keep surveys to ten questions or less. Organisational support in the form of supervisor support, rewards, and favourable working conditions are vital to stimulating organisation-related outcomes, that is, reduced withdrawal behaviours and commitment (Rhoades and Eisenberger, 2002; Gillet et al., 2022). Manag. You must first know the wants, needs, and desires of each employee to help understand what environmental factors are most important to the culture of your company. Extant literature claims that employee retention is a significant challenge for SME employees in China. (2015). The current study reported a significant positive effect of job satisfaction on employee retention. We trained department heads and managers on how to interpret those guidelines for their respective work, and then empowered them to use their discretion. (2019). J. Res. Modes of theorizing in strategic human resource management: tests of universalistic, contingency, and configurational performance predictions. Hence, it is required to look into the factors that can contribute in the improvement of the employees. Bus. The contingent role of transformational leadership was also analysed under the Situational Leadership Theory (SLT). the factors that most influence employee satisfaction which directly affect job retention and employee turnover. In this case, the current work emphasises the three dimensions critical to enhancing employee retention within Chinas SMEs. doi: 10.4324/9781410617095, Bibi, P., Ahmad, A., and Majid, A. H. A. Glob. Franklin, TN: Work Institute, Mangi, R., Soomro, H., Ghumro, I., Abidi, A., and Jalbani, A. J. Manpower 32, 3447. doi: 10.1606/1044-3894.2015.96.21. Complementary variable-and person-centred approaches to the dimensionality of workaholism. Life Cities 74:93. 31, 16171643. doi: 10.1504/IJBIR.2021.119592. doi: 10.9790/487X-1420816, De Sousa Sabbagha, M., Ledimo, O., and Martins, N. (2018). Hadj, T. B. Int. 1, 8390. Chinese employees leadership preferences and the relationship with power distance orientation and core self-evaluation. Rather than worrying that such personal interests might distract from work efforts, smart managers realize that by taking an interest in the whole employee, you ensure that they bring that same creativity and energy to their day jobs. High commitment HR practices, the employment relationship and job performance: a test of a mediation model. Thoughts 6, 20502056. 18, 7188. Sci. Equ. (2010) confirmed that job satisfaction is a strong predictor of employee retention in Chinas health centres. Table 2 indicates that the square root of AVE of all variables is greater than their inter-constructs correlation values; hence, these variables exhibit acceptable discriminant validity. doi: 10.5038/2640-6489.5.2.1135, Gillet, N., Morin, A. J. S., Ndiaye, A., Colombat, P., Sandrin, E., and Fouquereau, E. (2022). Cammann, C., Fichman, M., Jenkins, D., and Klesh, J. In China, organisations face fierce pressure to retain employees due to the shortage of skilled and talented employees (Fu et al., 2020). Resour. Namex Int. Furthermore, this theory postulates that employees deliver their optimum performance upon achieving support and perceiving value from their employers (Eisenberger et al., 2001). (2008). J. Glob. Despite the importance of employee retention, we are in the aftermath of what has been coined the "Great Resignation". Dysvik, A., and Kuvaas, B. Bus. Specifically, in Chinas SMEs, policymakers, and managers must critically assess the leadership development programmes in their organisations. Canterbury: Canterbury Christ Church University. Generally, employees are easy to retain, provided they see a good match with their employer (Umamaheswari and Krishnan, 2016). Theyre tired. Sci. This is done using employees' feedback and various computational techniques. doi: 10.1111/jan.13528, Woodall, J., Southby, K., Trigwell, J., Lendzionowski, V., and Rategh, R. (2017). (1996). Stud. Resour. The current research established the conditional effect of transformational leadership on the job satisfaction-employee retention link. J. Electron. This repayment may derive in the form of increased loyalty, commitment, and stay for a long time (Settoon et al., 1996). Similarly, the conditional effect of transformational leadership was analysed based on this relationship. In this study, the mean values of training and development (M = 4.145), work environment (M = 4.334), job satisfaction (M = 4.322), and employees retention (M = 4.167) were found significant. 4:261. doi: 10.4236/jss.2016.45029, Koster, F., De Grip, A., and Fouarge, D. (2011). H6: Transformational leadership significantly moderates the job satisfactionemployee intentions relationship. Transformational leaders are viewed as role models and counsellors who encourage them to participate in organisational activities. (2018). doi: 10.2307/2393203, Bass, B. M., and Avolio, B. J. A Step-By-Step Approach to Using SAS for Factor Analysis and Structural Equation Modeling. Others include employee retention (0.576), individualised consideration (0.706), idealised influence (0.712), inspirational motivation (0.669), intellectual stimulation (0.692), and transformational leadership (0.677) (see Table 1). Zhang M. M. et al. 74, 13321341. Perceived organizational support: a review of the literature. Rev. The AVE values of multiple items revealed values higher than 0.50, that is, training and development (0.541), work environment (0.823), and job satisfaction (0.864). Chinas SMEs should design training and development programmes that parallel their employees career growth. Widespread conjecture about whats behind the Great Resignation ranges from people wanting more work flexibility and higher-paying jobs to simply being utterly exhausted from pandemic burnout. Responsible leadership and sustainable development in east asia economic group: application of social exchange theory. Clean. 22, 284290. (2016) similarly supported this positive relationship among Chinese employees working for multinational enterprises. Eur. A specific type of leadership is required to tackle the distinct needs and current challenges of a particular environment. Does perceived support in employee development affect personnel turnover? The author offers several ways to put those practices into action. Bus. Front. All that does is signal to your employees that their needs dont matter. Another said: This is a time to listen to your employees to understand their deeper needs. The structural model analysis revealed that training and development significantly influence employee retention (=0.824, < 0.05) (Table 3). The SET was applied in this study to propose the positive relationship of the three dimensions with employee retention. Manag. (2011). Res. While nearly 60% of employees in the McKinsey survey said they were unlikely to look for new jobs, it doesnt mean they wont start. They must also ensure sufficient resources to employees following the organisational goals. Transformational leadership is defined as those who have idealised influence, intellectual stimulation, inspirational motivation, and individualised consideration. Ooi, P. B., Jaafar, W. M. W., and Crosling, G. (2021). Leadersh. The isolation of working from home has fractured our sense of community. The top two reasons employees cited for leaving (or considering leaving) were that they didn't feel their work was valued by the organization (54%) or that they lacked a sense of belonging at. 49, 103110. Using sophisticated statistical modeling and machine learning techniques, predictive analytics can create risk-scoring models that . 68, 287304. Austral. Bus. China possesses approximately 770 million people in its workforce (Zhang and Chen, 2019), albeit maintaining the most significant global average turnover rate, that is, 18% (Friedman and Kuruvilla, 2015; Yu X. et al., 2019). doi: 10.1037/apl0000103, Hu, L., and Bentler, P. M. (1999). Rev. The effects of strategic compensation on teacher retention. the role of personal resources in the perceived organizational politics and job attitudes relationship. A. J. Nurs. However, no moderating effect of transformational leadership was indicated on their direct relationship. Adekanbi, A. Workplace Learn. Mwita, K. M., and Tefurukwa, O. 71, 116. J. Sustainability 9:1567. doi: 10.3390/su9091567, Kalliath, P., and Kalliath, T. (2014). A Correlational Study of Work Environment Factors and Organizational Commitment in Southern California Staff Nurses. M. D. Dunnette (Chicago, IL: Rand McNally), 12971343. The inclusive enterprise: vision and roadmap, in Proceedings of the International Conference on Web Engineering, (Cham: Springer), 621624. doi: 10.1037/0021-9010.81.3.219, Singh, S. K., Del Giudice, M., Chierici, R., and Graziano, D. (2020). Res. [Epub ahead of print]. Article 2: Al Mamun, C. A., & Hasan, M. N. (2017). Corporate social responsibilities, psychological contracts and employee turnover intention of SMEs in China. We want people to feel a shared sense of purpose as well as fulfillment in their own purpose. Copyright 2022 Xuecheng, Iqbal and Saina. Psychol. 23, 120. (2018). Furthermore, a gentle reminder was included during data collection to increase the number of responses. The data analysis purported the significant positive relations of training and development with employee retention among SME employees in China; therefore, supporting hypothesis H1. Factors Influencing Employee Retention; The Moderating Roles of Job Embeddedness in Ecommerce Logistic Industry International Journal of Academic Research in Business and Social Sciences Vol. The mediating role of ethical organisational climate between HRM practices and HR outcomes in public sector of Saudi Arabia. The current empirical findings confirm that all three factors such as training and development, job satisfaction, and the working environment significantly influence employee retention. Accordingly, three responses were removed in the univariate outlier because of the Z-score values greater than 3.29 (Tabachnick and Fidell, 2007). Dev. Job attitudes and work values, in APA Handbook of Industrial and Organizational Psychology, Vol. Managing organized insecurity: the consequences for care workers of deregulated working conditions in elderly care. Discover how to attract, hire, develop, and keep talented people who will grow and thrive throughout their employee journey. (2016). (2020). Settoon, R. P., Bennett, N., and Liden, R. C. (1996). J. Soc. If your WFH policy offers minimal or no flexibility and your justification for requiring everyone to be back in the office is something vague like, Its better for our culture if people are physically together, expect people to resent and likely resist it. Manag. Psychol. Conf. 12:739593. doi: 10.3389/fpsyg.2021.739593, Podsakoff, P. M., MacKenzie, S. B., and Podsakoff, N. P. (2012). J. The employee retention triad in health care: exploring relationships amongst organisational justice, affective commitment and turnover intention. In my 15-year study of more than 3,200 leaders, when purpose was activated in actions, not just words, an organization was three times more likely to have people treat each other fairly and serve the greater good. The technique revolves around the assessment of the measurement model and structural model, though it requires prior evaluation of the former measurement. Frank, F. D., Finnegan, R. P., and Taylor, C. R. (2004). J. Hum. Front. The HR executive from that company told me, Our initial intention was to make sure cross-functional collaboration remained strong despite remote work. 20, 113131. In essence, one unit change in training and development brings 82.40% variations in employee retention, and thus hypothesis H1 is supported. What we hadnt planned on was how much people would learn in the process, changing how people perform their own jobs, and opening lateral career paths we hadnt considered. Building on the unexpected success, they now offer job shadowing of higher-level jobs and training programs taught by those whove completed rotations. Institution-based barriers to innovation in SMEs in China. Transformational leadership with innovative behaviour. Prof. Psychol. (2021b). Psychol. Int. J. (2016). doi: 10.1080/09585192.2016.1262888. Afr. 12, 138157. Occupational stress and its outcomes: the role of work-social support in the hospitality industry. When I asked what practical things their organizations had done to manifest cultures of solidarity, they offered the following ideas: While many organizations are busy purpose washing to create the illusion of meaning, genuinely purposeful organizations embed solidarity right into management practices. 7, 161174. Leadersh. Online survey forms were structured to collect data, comprising six sections that measure various factors. Organisations are currently discussing varying strategies and practices to preserve their employees (Tanwar and Prasad, 2016; Bibi et al., 2018). A., Oludayo, O. The implications and limitations were finally expressed at the end of this manuscript. Organ. Front. For example, one item is We receive formal development training which increases our promotion chances within the organisation. Similarly, Bibi et al. This experience is supported by the social exchanges between the employee and the organisation, reinforcing their intentions to stay with the organisation (Koster et al., 2011).