The Impact of Human Resource Management Practices on Employee Turnover.
Using the Buck HRM AuditTM, we surveyed the HRM practices of a sample of firms in Singapore. The results from stepwise regression indicated that firms that have formalized Job Analysis activities had the lowest level of employee turnover in general, and particularly, during a boom year. However, during a recession, firms that have formalized HR and Succession Planning had the lowest turnover rates. Implications of the results are explained in terms of goal setting theory. The importance of formalizing and setting work standards and activities for employees using a job analysis, as well as determination of human resource skill requirements and career paths through HR and succession planning, were able to reduce employee turnover due to the benefits of setting specific goals.
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The Impact of Human Resource Management Practices on Employee Turnover.
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Introduction.
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For Singapore firms to survive in a global economy in the new millennium, they need to design effective human resource management (HRM) practices that encourage the retention of high performing employees, particularly among skilled employees. This is because there is a global shortage of skilled employees and firms will need to have competitive practices to retain them. Past research have linked various human resource management practices to employee turnover. For example, realistic job previews, selection procedures, socialization programs, promotion opportunities, and compensation practices were found to affect employee turnover. .
The purpose of this study assesses which HRM practices have a greater marginal impact on employee turnover during different economic cycles. It is predicted that under different economic cycles, different HRM practices have differential impact on employee turnover. Typically, in an economic recession, employees are less willing to quit their jobs because there are fewer employment options available.