Investigating the impact of training influence on employee retention in small and medium enterprises: a regression‐type classification and ranking believe simplex analysis on sparse data

Abstract

This study investigates the impact of available training alternatives (TAs) on employee retention in small and medium enterprises (SMEs). A noticeable problem with this research issue is that individual SMEs may utilize different combination of TAs. The considered survey questionnaire allowed respondent SME owners/managers the option to gauge the level of satisfaction of a TA or to indicate that they did not use it. It follows, therefore, that the survey‐based data set is sparse, in the sense that the ‘did not use’ option infers that a form of missing value is present (Likert‐scale‐based satisfaction value present if a TA was used). To facilitate an effective analysis of the considered sparse data set, because the missing values have meaning, the nascent regression‐type classification and ranking believe simplex (RCaRBS) technique is employed. As a development of the CaRBS technique, this technique is able to undertake multivariate regression‐type analysis on sparse data, without the need to manage the missing values in any way. Results are presented from the RCaRBS analyses relating to SME owner/managers' satisfactions with TAs and their impact on two employee retention facets, namely greater employee loyalty and, conversely, losing an employee to a competitor. Emphasis here is on the graphical elucidation of findings in regard to model fit and TA contribution. The pertinence of the study is the inclusiveness of the data considered (a novel approach to analysing sparse data), and the comparisons between these associated issues of TA satisfaction and employee retention.

An Integrated Framework on the Sustainability of SMEs

“…They develop diverse skills in order to solve the diverse problems that appear during the day-to-day operation of a small company, thus leading to the development of a multiskilled labour force, more useful to SMEs than a narrowly specialized staff [121]. In order to grow and perform, SMEs need skills, knowledge, and resources [122] and the employee is the most significant asset of an SME and a source of potential competitive advantage to any company [123].…”

Human resources development as an element of sustainable HRM – with the focus on production engineers

“…This is one of the myths about training courses ( McGrath, 2015 ). Independent research shows that training is an important factor in employee retention ( Khan, 2018 ; Beynon et al., 2015 ). Thus, the competencies of the future should be developed in the form of employee training, all the more so because – due to the current demographic changes –employees are remaining on the job market despite reaching the age of retirement ( Fox and O’Connor, 2015 ).…”

Relation of selected factors of further education in organizations development and profitability of organizations

“…They identified a significant relationship between external training and financial performance, however, only for large size companies. An interesting issue of the impact of training on employee retention was investigated by Beynon, Jones, Pickernell, and Packham (2015). A positive effect of education and training programmes on the productivity measured by business per employee at the selected Indian banks was found by Kaur (2016).…”