Predicting voluntary turnover in employees using demographic characteristics: A South African case study
- Authors: Schlechter, Anton F. , Syce, Chantal , Bussin, Mark
- Date: 2016
- Subjects: Employee retention - South Africa , Labor turnover , Job satisfaction
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/226707 , uj:22928 , Citation: Schlechter, A.F., Syce, C. & Bussin, M. 2016. Predicting voluntary turnover in employees using demographic characteristics: A South African case study. Acta Commercii 16(1):1-10. DOI: http://dx.doi.org/10.4102/ac.v16i1.274. , ISSN: 1684-1999 (Online) , ISSN: 2413-1903 (Print)
- Description: Abstract: Employee turnover presents arguably the biggest threat to business sustainability and is a dynamic challenge faced by businesses globally. In South Africa, organisations compete to attract and retain skilled employees in an environment characterised by a burgeoning skills deficit. Turnover risk management is becoming an important strategy to ensure organisational stability and promote the effective retention of employees. The purpose of this research was to contribute to the practice of turnover risk management by proposing an approach and constructing a model to predict employee turnover based on demographic characteristics readily available in a human resource information system. Design: An exploratory research design was employed. Secondary quantitative data were extracted from an existing human resources database and analysed. Data obtained for 2592 employees in a general insurance company based in South Africa and Namibia formed the basis for the analysis. Logistic regression analysis was employed to predict employee turnover using various demographic characteristics available within the database. A likelihood ratio test was used to build a predictive model and the Akaike information criterion and Schwarz criterion were used to test how much value each variable added to the model and if its inclusion was warranted. The model was tested by conducting statistical tests of the significance of the coefficients. Deviance and Pearson goodness-of-fit statistics as well as the R-square test of significance were used. The overall goodness-of-fit of the model was also tested using the Hosmer and Lemeshow goodness-of-fit test. Findings: The current findings provide partial support for a predictive model explaining employee turnover. The model tested 14 demographic variables and the following five variables were found to have statistically significant predictive value: age, years of service, cost centre, performance score and the interaction between number of dependants and years of service. It is proposed that these five demographic variables be used as a model to help identify employees at risk of turnover or termed as flight risks. Practical implications: Gaining an understanding of the factors that influence employee voluntary turnover can be instrumental in sustaining workforce stability. The proposed model could help human resources professionals identify employees at risk of turnover using data that are readily available to them. This will further enable the use of targeted interventions to prevent turnover before it happens. Decreased levels of turnover will result in cost saving, enhanced talent management and greater competitive advantage.
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Total rewards that retain : A study of demographic preferences
- Authors: Pregnolato, Monica , Bussin, Mark H. R. , Schlechter, Anton F.
- Date: 2017
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/226368 , uj:22886 , Citation: Pregnolato, M., Bussin, M.H.R. & Schlechter, A.F. 2017. Total rewards that retain : A study of demographic preferences. SA Journal of Human Resource Management, 15(1):1-10. DOI: https://doi.org/10.4102/sajhrm.v15.804. , ISSN: 2071-078X (Online) , ISSN: 1683-7584 (Print)
- Description: Abstract: Changing workplace demographics and a dearth of employees with scarce skills have forced employers to better understand the various factors that retain talented employees. Research purpose: In this empirical study, the reward preferences and ideal combination of total reward elements (based on an estimation of their relative importance) that retain employees from various demographic groups, including employees of different race, gender and age groups, were investigated. Motivation for study: Organisations are competing for talented employees and to benefit from the value these individuals add, it is required of them to stay at the respective businesses. Previous studies have indicated that employees who are offered a reward package that is aligned to their personal preferences are prone to stay longer at the organisation and to be more engaged at work. However, new and novel ways need to be found to identify the reward preferences of employees. Research design, approach and method: A quantitative approach and descriptive research design was employed to estimate the individual reward preferences and identify an ideal mix of total reward elements that retain different cohorts of employees. Three questionnaires were distributed, including a Remuneration Managers Questionnaire (n = 7), a Remuneration Preference Questionnaire (n = 368) and a Choice-based Conjoint Task Questionnaire (n = 368). The latter two questionnaires were distributed as an online questionnaire to South African businesses and consisted of eight choice-based conjoint tasks, as well as a field survey. Main findings: The results of the choice-based conjoint analysis revealed that all respondents considered financial rewards (Benefits, Performance and Recognition, Remuneration, Career, in that order) as relatively speaking, the most important components in their total rewards package that would lead to their retention. For most demographic groups, the remaining three places (i.e. ranked) were Career Advancement, Learning and Work–life balance. Work–life balance was found to be relatively more important for Generation Y than career advancement. For those employees with only a matric qualification and those in non-managerial positions, access to learning opportunities were the least important in their retention. Practical/managerial implications: Human Resource managers and line managers should note that reward elements should be chosen and offered as total reward packages in such a way as to best be able to attract, engage and retain talented employees. Contribution/value-add: The findings of the present study adds value in a sense that it assists organisations in creating customised reward packages that best suit the needs of both employees and them as employers. Providing a more ideal or preferential combination of reward elements can, by increasing retention and engagement, provide a competitive advantage for organisations.
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