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Factors Affecting Employee Retention: Proposing an Original Conceptual Framework

Author

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  • Dimitrios Chatzoudes
  • Prodromos Chatzoglou

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.

Suggested Citation

  • Dimitrios Chatzoudes & Prodromos Chatzoglou, 2022. "Factors Affecting Employee Retention: Proposing an Original Conceptual Framework," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 49-76.
  • Handle: RePEc:ers:ijebaa:v:x:y:2022:i:1:p:49-76
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    References listed on IDEAS

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    1. Ayman Alhmoud & Husam Rjoub, 2020. "Does Generation Moderate the Effect of Total Rewards on Employee Retention? Evidence From Jordan," SAGE Open, , vol. 10(3), pages 21582440209, September.
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    Cited by:

    1. Moses Segbenya, 2023. "Promotion and Employee Retention in the Ghanaian Life Insurance Subsector: Ascertaining Relationship and Effect," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 73-90.

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      More about this item

      Keywords

      Employee Retention; HR Practices; Working conditions; Work Attitudes; Empirical study; Structural Equation Modeling (SEM).;
      All these keywords.

      JEL classification:

      • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
      • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
      • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy

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