Factors Affecting Employee Retention: Proposing an Original Conceptual Framework

Dimitrios Chatzoudes, Prodromos Chatzoglou
International Journal of Economics and Business Administration, Volume X, Issue 1, 49-76, 2022
DOI: 10.35808/ijeba/748

Abstract:

Purpose: The purpose of the present empirical study is to examine the factors that have an impact on the turnover intention of European employees, with an emphasis on the mediating role of working conditions. Design/Methodology/Approach: This study follows a quantitative approach. An original conceptual framework (research model) has been developed and empirically tested, using primary data collected from employees in five different European countries. Findings: The study, among others, underlines the huge impact of employee commitment and job satisfaction on increasing the intention of employees to stay in the same company, while it also highlights the mechanism that impacts employee retention. Practical Implications: The study suggests that companies should built supportive working relationships, good organizational climate, and develop supportive HR practices. Retention can be indirectly influenced by focusing on the overall conditions of the workplace (e.g., work environment, supervisor support) and on HR initiatives (e.g., career opportunities). Originality/value: The proposed conceptual framework synthesizes the finding of numerous previous studies, offering a holistic approach that can enhance the understanding about the issue of employee retention. It categorizes the antecedents of retention in three dimensions; tangible, intangible and strategic. Finally, the present study collects empirical data from five European countries, an approach rarely adopted in the existing literature.


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