What HR managers do versus what employees value

Abstract

PurposeThe purpose of this paper is to explore HR managers' and employees' views on the factors affecting employee retention using the perspective of the psychological contract.Design/methodology/approachTwo studies were conducted. First, a sample of HR managers gave their view on the factors affecting employee retention and turnover and described their retention practices. Second, a large sample of employees reported on the importance attached to five types of employer inducements commonly regarded as retention factors, on their evaluation of these inducements and on their loyalty. Regression analysis was used to examine the impact of the delivery of employer inducements on retention.FindingsThe HR managers survey indicates that retention practices focus more on the factors believed to cause employee turnover (career opportunities and financial rewards) than on those believed to affect employee retention (social atmosphere, job content, work‐life balance). The focus on career opportunities is supported by the employee survey. The delivery of career opportunities had the strongest impact on employee loyalty while the impact of the delivery of financial rewards was much smaller.Research limitations/implicationsIt is useful to distinguish between different content dimensions of the psychological contract when studying its impact on employee outcomes. The psychological contract provides a relevant framework for studying employee retention.Practical implicationsThis paper offers HR professionals' insights into the effectiveness of retention practices.Originality/valueThe paper shows how the psychological contract can be applied in retention management and examines impact of different content dimensions of the psychological contract on employee outcomes.

Factors Driving Turnover and Retention of Information Technology Professionals

“…The second research question aims to predict what factors drive turnover of IT professionals. The research questions are grounded on the insights provided by De Vos and Meganck (2009), calling for the need to relate retention factors to employee views on their importance. Finally, we are going to investigate if significant differences among various job positions exist.…”

An exploratory study of governance in the intra‐firm human resources supply chain

“…First, at the generic level of all employees, the HR function is responsible for encouraging compliant employee attitudes and behaviors (De Vos & Meganck, 2009). The second level at which this applies to HR is within its own function: ensuring that the structure of the department is appropriately governed to prevent the organization from being open to unforeseen risk (Ulrich & Beatty, 2001).…”

Factors Influencing Employee Retention: A Karachi Based Comparative Study on IT and Banking Industry

“…Nyanjom (2013) cited that an average company faces a loss of around $100,000 every time a professional of managerial employee leaves it, making turnover extremely costly for it (Torrington & Taylor, 2009) HR managers are compelled to attract and retain competent employees with certain competencies that are crucial for the survival of the organization. De Vos and Meganck (2008) stated that these employees more focus on establishing their own career path rather than being loyal to the organization, thus they are more difficult to retain. Some of the researchers in the field of business management and specially HR, debate that for effective retention management, creating the finest portfolio of HR practices is not only essential, but also managing employees' perceptions regarding their organization's promises for returning them for their loyalty and commitment is important.…”