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Does Perceived Support in Employee Development Affect Personnel Turnover?

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  • Koster Fleur
  • Grip Andries de
  • Fouarge Didier

    (METEOR)

Abstract

This paper focuses on the question whether it is beneficial for firms to invest in the general skills of their workforce or that these training investments merely encourage personnel turnover. We examine two contrary theoretical perspectives on how investments in employee development are related to their turnover behaviour. Estimation results derived from a sample of 2,833 Dutch pharmacy assistants show that participation in general training does not induce the intention of assistants to quit, as predicted by human capital theory. We find that a firm’s investments in general training, significantly contribute to the perceived support in employee development (PSED) among their workforce. Our results also show that PSED is negatively related to the intention of employees to quit the firm. This effect is to a large extent mediated by the job satisfaction of pharmacy assistants. Our findings support the importance of social exchange theory in explaining turnover behaviour as a consequence of personnel development practices. It should be noted, however, that PSED only diminishes the intention to quit for other occupations.

Suggested Citation

  • Koster Fleur & Grip Andries de & Fouarge Didier, 2009. "Does Perceived Support in Employee Development Affect Personnel Turnover?," Research Memorandum 048, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  • Handle: RePEc:unm:umamet:2009048
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    References listed on IDEAS

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    1. Francis Green & Alan Felstead & Ken Mayhew & Alan Pack, 2000. "The Impact of Training on Labour Mobility: Individual and Firm‐level Evidence from Britain," British Journal of Industrial Relations, London School of Economics, vol. 38(2), pages 261-275, June.
    2. Eric D. Darr & Linda Argote & Dennis Epple, 1995. "The Acquisition, Transfer, and Depreciation of Knowledge in Service Organizations: Productivity in Franchises," Management Science, INFORMS, vol. 41(11), pages 1750-1762, November.
    3. Grip Andries de & Sieben Inge & Stevens Fred, 2006. "Vocational Versus Communicative Competencies as Predictors of Job Satisfaction," ROA Research Memorandum 004, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    4. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 1-9.
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    Cited by:

    1. Emerson Wagner Mainardes & Alexandre Santos Cerqueira, 2016. "Measuring the Internal-Market Orientation in the Public Sector," Public Organization Review, Springer, vol. 16(2), pages 179-197, June.
    2. Ruud Gerards & Andries de Grip & Maaike Witlox, 2014. "'Employability-miles' and worker employability awareness," Applied Economics, Taylor & Francis Journals, vol. 46(9), pages 952-965, March.

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    labour economics ;

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