Antecedents of Retention: A Conceptual Framework

Antecedents of Retention: A Conceptual Framework

This article summarizes evidence based empirical research findings and presents a structured conceptual framework for understanding factors affecting employee retention [1]. Here’s a detailed breakdown of the contents:

1. Conceptual Framework

The framework proposed in the study categorizes retention factors into three primary dimensions: Tangible Factors, Intangible Factors, and Strategic Factors.

• Tangible Factors refer to measurable aspects of the job that directly influence retention, such as salary, benefits, and job security. These factors provide immediate incentives for employees and are particularly important in ensuring basic job satisfaction.
• Intangible Factors involve elements that foster emotional attachment to the organization, including job satisfaction, support from supervisors, and the quality of interpersonal relationships at work. These factors contribute to the emotional well-being of employees and promote loyalty.
• Strategic Factors focus on the long-term aspects that shape an employee’s perception of their future within the organization. These include growth opportunities, training, and career development programs. The study posits that these factors are especially crucial for retaining high-potential employees who seek growth within the company.

This conceptual framework aims to give a comprehensive understanding of the multiple dimensions affecting retention, encouraging a holistic approach for organizations.

Summary of Previous Findings:

This table presents a comprehensive list of studies focused on various antecedents influencing employee retention across different sectors and regions, highlighting the diverse factors that can impact an employee's decision to stay within an organization.

Key Themes:

1.     Work Environment and Job Satisfaction: Multiple studies underscore the importance of a supportive work environment and job satisfaction as critical retention factors. For instance, Frye et al. (2020) and Kashyap & Verma (2019) emphasize job satisfaction, empowerment, and the importance of interpersonal relationships in influencing retention among Generation Y employees.

2.     Leadership and Managerial Support: Several studies, such as those by Book et al. (2019) and Ohunakin et al. (2019), highlight the role of leadership quality, including supportive supervisors and authentic leadership, in fostering loyalty and job satisfaction among employees. This implies that positive relationships with leaders and managers contribute significantly to retention.

3.     Corporate Social Responsibility (CSR) and Organizational Values: Employee perceptions of CSR and alignment with organizational values play a vital role in retention, especially in the hospitality and service sectors. Studies like Kim et al. (2020) and Dechawatanapaisal (2018) note that when employees feel aligned with the brand's mission and values, their commitment to the organization increases.

4.     Job Characteristics and Psychological Factors: Other studies, such as those by Jha (2019) and Vui-Yee & Paggy (2020), focus on job characteristics, psychological empowerment, and psychological safety as influential in retaining employees, especially in dynamic or high-stress sectors. These factors can help mitigate the risks of burnout and turnover by fostering a secure and engaging work environment.

5.     Development Opportunities and Organizational Commitment: Training, internal communication, and opportunities for professional growth are highlighted as retention drivers in studies by Fletcher et al. (2018) and Ikram et al. (2021). Employees who feel their professional development is supported are more likely to remain committed to the organization.

These findings suggest that retention strategies must be multi-faceted, addressing both tangible aspects (such as compensation and job security) and intangible ones (like leadership quality and workplace culture). For example, tangible factors like pay and benefits are often a baseline requirement, while intangible factors like supportive leadership and alignment with organizational values can enhance long-term retention by building emotional attachment and commitment.

Overall, this table emphasizes that employee retention is a complex, multi-dimensional issue, requiring organizations to address a combination of factors tailored to their workforce demographics and industry-specific challenges.

Conceptual Framework

 Summary of Key Research Findings:

This study proposes a conceptual framework designed to examine factors influencing employee retention, derived through an extensive literature review and focus group discussions. The framework categorizes factors into four main dimensions, each with multiple facets.

i. Human Resource (HR) Practices and Work Attitudes        

• Organizational Identification (related to HR Practices): HR practices such as fair remuneration and career growth foster employee identification with the organization’s values.

Measurement: Use employee surveys with questions on alignment with company values and pride in association with the organization. Examples include items from the Organizational Identification Questionnaire (OIQ). Tracking: Track quarterly through engagement surveys or pulse surveys. Benchmarking: Compare scores with industry norms or similar organizations. For example, Gallup offers benchmarks in employee identification and engagement scores across industries.

• Employee Engagement (related to HR Practices): A safe, empowering work environment and opportunities for skill development lead to higher engagement.

Measurement: Assess using engagement surveys like the Gallup Q12, which measures factors such as purpose alignment and emotional connection to work. Tracking: Monthly or quarterly pulse surveys can track fluctuations in engagement. Benchmarking: Compare engagement survey scores to industry standards using services like Qualtrics or Culture Amp.

• Employee Commitment (related to HR Practices): Training, mentorship, and rewards boost commitment by creating a satisfying work experience.

Measurement: Utilize Organizational Commitment Questionnaire (OCQ), which includes metrics on affective, continuance, and normative commitment. Tracking: Semi-annual surveys can monitor long-term trends in commitment levels. Benchmarking: Benchmark against national or industry averages through HR analytics platforms like Workday or SAP SuccessFactors.

• Job Satisfaction (related to HR Practices): Performance appraisals and confidence-building through empowerment lead to greater job satisfaction.

Measurement: Use surveys focusing on job role satisfaction, compensation, and recognition. The Job Satisfaction Survey (JSS) can be helpful. Tracking: Measure satisfaction bi-annually to capture fluctuations without survey fatigue. Benchmarking: Compare against industry standards using reports from SHRM or Willis Towers Watson, which regularly publish job satisfaction benchmarks.

 ii. Working Conditions and Work Attitudes        

• Organizational Identification (related to Working Conditions): A safe, collegial work environment enhances identification with organizational goals.

Measurement: Include questions in surveys on workplace safety, physical comfort, and social climate. Tracking: Track through annual environmental assessments and health/safety audits. Benchmarking: Use benchmarks from Occupational Safety and Health Administration (OSHA) for workplace safety standards and employee comfort metrics.

• Employee Engagement (related to Working Conditions): Positive work environments, including peer support, strengthen engagement.

Measurement: Assess through regular feedback on work environment, peer relationships, and work-life balance using tools like Workplace Satisfaction Surveys. Tracking: Conduct quarterly to track adjustments to the physical or social environment. Benchmarking: Reference national averages for employee engagement scores related to work conditions, available through studies by Gallup and Deloitte.

• Employee Commitment (related to Working Conditions): Pleasant and stress-free conditions, plus strong supervisor relationships, foster commitment.

Measurement: Use pulse surveys on supervisor relationships, work stress, and support from the company, as well as tools like Work Environment Index (WEI). Tracking: Monitor bi-annually to identify changes in commitment due to working conditions. Benchmarking: Compare survey results against industry averages or sector-specific studies in the Mercer Quality of Work Index.

• Job Satisfaction (related to Working Conditions): Quality relationships with supervisors and a comfortable work environment drive job satisfaction.

Measurement: Track satisfaction in job conditions through surveys or focus groups, targeting workplace quality, coworker relationships, and supervisory support. Tracking: Quarterly assessments can capture shifts, especially following policy or environmental changes. Benchmarking: Use comparison data from employee satisfaction surveys by organizations like Glassdoor or Indeed, which aggregate employee feedback on job satisfaction factors.

 iii. Mission and Orientation and Work Attitudes        

• Organizational Identification (related to Mission and Orientation): Employees are more likely to identify with the organization if they align with its mission.

Measurement: Assess alignment with mission and vision through structured questionnaires. Surveys should measure pride, purpose, and alignment with the company’s mission. Tracking: Conduct surveys semi-annually, especially following company-wide strategic changes. Benchmarking: Benchmark against competitors' employee alignment scores, available from Comparably and Gallup’s Mission and Purpose Index.

• Employee Engagement (related to Mission and Orientation): A clear connection to the organization’s mission boosts engagement.

Measurement: Use purpose alignment surveys that ask employees about their belief in the company’s mission and whether they see it reflected in their work. Tracking: Semi-annual or annual engagement surveys can gauge changes in mission alignment. Benchmarking: Compare data to industry benchmarks for mission alignment and engagement using Glassdoor or LinkedIn Talent Insights.

• Employee Commitment (related to Mission and Orientation): Employees who embrace the organization’s goals and ethics show stronger commitment.

Measurement: Utilize questions that probe commitment to organizational goals, values, and ethical standards. Tracking: Annual surveys focusing on strategic commitment to mission-related values. Benchmarking: Use Aon Hewitt or Gartner reports, which track commitment across industry and location to provide context.

• Job Satisfaction (related to Mission and Orientation): Engagement with the mission and internalized organizational values lead to higher job satisfaction.

Measurement: Measure with surveys asking if employees feel the mission and values align with their personal career goals. Tracking: Bi-annual surveys to assess fluctuations based on company changes. Benchmarking: Compare satisfaction with mission alignment to industry-specific results in Work Institute reports or Harvard Business Review articles.

 iv. Work Attitudes and Employee Retention        

• Organizational Identification (related to Work Attitudes & Retention): Strong identification with the organization encourages retention by tying self-identity to the company.

Measurement: Track with loyalty metrics in employee engagement surveys; questions can include employees' feelings about job stability and self-concept tied to the company. Tracking: Annually measure and observe through stay interviews. Benchmarking: Use industry averages for retention linked to identification, often available through Gallup or Mercer reports.

• Employee Engagement (related to Work Attitudes & Retention): Engaged employees are more inclined to stay due to increased satisfaction and commitment.

Measurement: Measure engagement’s impact on retention by tracking turnover rates alongside engagement scores. Tracking: Regularly monitor through retention reports and exit interviews. Benchmarking: Use benchmark data from Willis Towers Watson or Bureau of Labor Statistics for retention rates relative to engagement scores.

• Employee Commitment (related to Work Attitudes & Retention): Committed employees exhibit lower turnover intentions.

Measurement: Assess commitment's influence on retention with surveys measuring intent to stay and satisfaction with growth opportunities. Tracking: Track semi-annually with career development assessments. Benchmarking: Compare to industry commitment-retention rates using benchmarks from SHRM and LinkedIn Workforce Insights.

• Job Satisfaction (related to Work Attitudes & Retention): Job satisfaction, linked to comfortable work conditions and supportive relationships, reduces turnover.

Measurement: Measure through exit interview data and intent-to-stay questions in satisfaction surveys. Tracking: Track annually, ideally through turnover analysis aligned with satisfaction scores. Benchmarking: Refer to industry averages for job satisfaction-related retention, often found in Indeed and Glassdoor reviews or SHRM reports.

Each of these factors can be visualized in dashboards, monitored in real-time, and included in annual performance reviews for effective, ongoing tracking. Adopting a multi-source benchmark approach by cross-referencing Gallup, Mercer, Aon Hewitt, and other reputable HR analytics sources ensures that retention strategies remain competitive and relevant.

2. Methodology Overview

The study employed a quantitative approach, with data collected from employees across five European countries via a structured questionnaire translated into local languages. This survey investigates the relationship between the proposed factors and employee retention, using a Likert scale to assess the participants' attitudes and experiences.

3. Results

The study’s quantitative results reveal that job satisfaction and organizational commitment emerge as the most influential factors for retention. The authors found that tangible rewards, while important, were less effective in isolation for long-term retention when compared to factors like career advancement and supportive work environments. Notably, strategic factors (such as training and development) showed a high correlation with employee engagement and retention, particularly for younger and high-potential employees.

4. Implications for Practice

The findings have significant practical implications. The authors suggest that organizations seeking to improve retention should balance financial incentives with a strong emphasis on intangible and strategic retention factors. For instance, while competitive pay can attract talent, fostering a culture of professional growth and support tends to retain employees better in the long run. By implementing personalized career development and mentorship programs, organizations can encourage a sense of progress and belonging among employees, which can be more effective than focusing solely on salary adjustments.

5. Conclusion

The study concludes that a one-dimensional approach to employee retention is insufficient. Instead, organizations should adopt a multifaceted retention strategy that addresses all three types of factors within the proposed framework. By doing so, they can create an environment where employees feel both valued in the present (through tangible rewards) and optimistic about their future within the company (through strategic growth opportunities).

This comprehensive, structured approach to retention can help organizations tailor their HR strategies more effectively, leading to reduced turnover and a more committed workforce.

6. References

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• Book, L., Gatling, A., Kim, J. (2019). The effects of leadership satisfaction on employee engagement, loyalty, and retention in the hospitality industry. Journal of Human Resources in Hospitality and Tourism, 18(3), 368-393.
• Chatzoudes, D., & Chatzoglou, P. (2022). Factors Affecting Employee Retention: Proposing an Original Conceptual Framework. International Journal of Economics and Business Administration, 10(1), 49-76. [1]
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• Dechawatanapaisal, D. (2018). Employee retention: the effects of internal branding and brand attitudes in sales organizations. Personnel Review, 47(3), 675-693.
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