Predictive variables of the firm’s employee turnover

Abstract

The study focuses on a manufacturing firm’s employee turnover problem. It has two main objectives: (1) to analyze and assess the firm’s employees’ situation, and (2) to make a proposal for improvement on the firm’s turnover problem. Based on employees’ information and a literature survey, four influencing factors were identified (job enrichment, perceived equity, burnout, and job satisfaction) as determinants of an employee’s intentions to leave the firm or stay with it. On the assumption that intention to leave is an excellent predictor of turnover, four hypotheses were developed. Hypotheses testing offered insights into how much of the variance in intention to leave can be explained by the independent variables. Certainly, perceived justice and burnout have an influence on intention to leave through job satisfaction’s mediation. There was no relationship between job enrichment and job satisfaction, and neither was between job enrichment and intention to leave, when on both cases job satisfaction was controlled for. The paper ends with a discussion on the study’s scope and limitations and provides a few suggestions that can be valuable to the firm.