The Holistic Model of Labour Retention: The Impact of Workplace Wellbeing Factors on Employee Retention
Abstract
:1. Introduction
2. Literature Review
2.1. Dimensions of Employee Wellbeing
2.1.1. Nature of Work
2.1.2. Coworkers
2.1.3. Supervision
2.1.4. Pay
2.1.5. Contingent Rewards
2.1.6. Benefits
2.1.7. Promotion
2.1.8. Operating Procedures
2.1.9. Communication
2.2. Dimensions of Employee Retention
2.2.1. Normative Commitment
2.2.2. Organizational Commitment
2.2.3. Turnover Intention
3. Materials and Methods
3.1. Sample and Data Collection
3.2. Measures
3.3. PLS-SEM
4. Conducting Research and Results
4.1. Measurement Model
Multicollinearity
4.2. Structural Model
5. Discussion
6. Conclusions
7. Limitations and Future Research Suggestions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
Appendix A
Dimension | Wording Direction | Scales | Loadings |
---|---|---|---|
Benefits | negative | I am not satisfied with the benefits I receive. | 0.796 |
positive | The benefits we receive are as good as most other organizations offer. | 0.820 | |
positive | The benefit package we have is equitable. | 0.890 | |
negative | There are benefits we do not have that we should have. | 0.616 | |
Promotion | negative | There is really too little chance for promotion in my job. | 0.752 |
positive | Those who do well on the job stand a fair chance of being promoted. | 0.859 | |
positive | People get ahead as fast here as they do in other places. | 0.736 | |
positive | I am satisfied with my chances for promotion. | 0.876 | |
Supervision | positive | My supervisor is quite competent in doing his/her job. | 0.815 |
negative | My supervisor is unfair to me. | 0.757 | |
negative | My supervisor shows too little interest in the feelings of subordinates. | 0.780 | |
positive | I like my supervisor. | 0.883 | |
Pay | positive | I feel I am being paid a fair amount for the work I do. | 0.868 |
negative | Raises are too few and far between. | 0.803 | |
negative | I feel unappreciated by the organization when I think about what they pay me. | 0.854 | |
positive | I feel satisfied with my chances for salary increases. | 0.874 | |
Contingent rewards | positive | When I do a good job, I receive the recognition for it that I should receive. | 0.797 |
negative | I do not feel that the work I do is appreciated. | 0.840 | |
negative | There are few rewards for those who work here. | 0.838 | |
negative | I don’t feel my efforts are rewarded the way they should be. | 0.872 | |
Communication | positive | Communications seem good within this organization. | 0.771 |
negative | The goals of this organization are not clear to me. | 0.784 | |
negative | I often feel that I do not know what is going on with the organization. | 0.839 | |
negative | Work assignments are often not fully explained. | 0.829 | |
Nature of work | negative | I sometimes feel my job is meaningless. | 0.661 |
positive | I like doing the things I do at work. | 0.864 | |
positive | I feel a sense of pride in doing my job. | 0.892 | |
positive | My job is enjoyable. | 0.887 | |
Coworkers | positive | I like the people I work with. | 0.963 |
negative | I find I have to work harder at my job than I should because of the incompetence of the people I work with. | deleted | |
positive | I enjoy my coworkers. | 0.967 | |
negative | There is too much bickering and fighting at work. | deleted | |
Operating procedures | negative | Many of our rules and procedures make doing a good job difficult. | deleted |
positive | My efforts to do a good job are seldom blocked by red tape. | deleted | |
negative | I have too much to do at work. | deleted | |
negative | I have too much paperwork. | deleted | |
Normative commitment | positive | I think that people these days move from company to company too often. | deleted |
negative | I do not believe that a person must always be loyal to his or her organization | 0.617 | |
negative | Jumping from organization to organization does not seem at all unethical to me | deleted | |
positive | One of the major reasons I continue to work for this organization is that I believe that loyalty is important and therefore feel a sense of moral obligation to remain | 0.782 | |
positive | If I got another offer for a better job elsewhere I would not feel it was right to leave my organization | 0.773 | |
positive | I was taught to believe in the value of remaining loyal to one organization | 0.813 | |
positive | Things were better in the days when people stayed with one organization for most of their careers | deleted | |
negative | I do not think that wanting to be a ‘company man’ or ‘company woman’ is sensible anymore | deleted | |
Organizational commitment | positive | I talk up this organization to others as a great organization to work for | 0.830 |
positive | I am proud that I am a part of this organization | 0.894 | |
positive | I would like to continue working at this organization by considering this organization as a workplace for life | 0.797 | |
positive | I am pleased to choose this organization as a workplace | 0.763 | |
positive | Even if the opportunity to choose work again is given to me, this organization will be considered a priority | 0.869 | |
positive | I accept this organization’s future and fate as mine | 0.789 | |
positive | I think this organization is the best workplace to me | 0.888 | |
Turnover intention | negative | I plan to stay in this company to develop my career for a long time | 0.802 |
positive | I may not have a good future if I stay with this organization | deleted | |
positive | I often think of quitting my present job | 0.866 | |
positive | I am seriously thinking about quitting my job | 0.908 | |
positive | I may leave this company and work for another company in the next year | 0.854 | |
positive | I am actively looking for other jobs | 0.798 | |
positive | As soon as I can find a better job, I’ll leave my workplace | 0.858 |
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Dimensions | Factors | Number of Items | Sources |
---|---|---|---|
Employee wellbeing | Pay, Promotion, Fringe benefits, Contingent rewards, Supervision, Coworkers, Operating procedures, Nature of work, Communication | 36 | Spector (1985); Park and Martinez (2022) |
Employee retention | Normative commitment | 8 | Allen and Meyer (1990); Kim et al. (2022) |
Organizational commitment | 7 | Kim et al. (2016) | |
Turnover intention | 7 | Sjöberg and Sverke (2000); Newman et al. (2011); Wayne et al. (1997) |
Constructs | Measurement Item | Loadings | AVE | α Value | CR |
---|---|---|---|---|---|
BENEFITS (Ben) | Ben1 | 0.796 | 0.619 | 0.790 | 0.865 |
Ben2 | 0.820 | ||||
Ben3 | 0.890 | ||||
Ben4 | 0.616 | ||||
PROMOTION (Pro) | Pro1 | 0.752 | 0.653 | 0.822 | 0.882 |
Pro2 | 0.859 | ||||
Pro3 | 0.736 | ||||
Pro4 | 0.876 | ||||
SUPERVISION (Sup) | Sup1 | 0.815 | 0.656 | 0.825 | 0.884 |
Sup2 | 0.757 | ||||
Sup3 | 0.780 | ||||
Sup4 | 0.883 | ||||
PAY (Pay) | Pay1 | 0.868 | 0.722 | 0.872 | 0.912 |
Pay2 | 0.803 | ||||
Pay3 | 0.854 | ||||
Pay4 | 0.874 | ||||
CONTINGENT REWARDS (Cr) | Cr1 | 0.797 | 0.701 | 0.857 | 0.903 |
Cr2 | 0.840 | ||||
Cr3 | 0.837 | ||||
Cr4 | 0.874 | ||||
COMMUNICATION (Com) | Com1 | 0.771 | 0.650 | 0.820 | 0.881 |
Com2 | 0.784 | ||||
Com3 | 0.839 | ||||
Com4 | 0.829 | ||||
NATURE OF WORK (Now) | Now1 | 0.661 | 0.691 | 0.846 | 0.898 |
Now2 | 0.864 | ||||
Now3 | 0.892 | ||||
Now4 | 0.887 | ||||
COWORKERS (Cow) | Cow1 | 0.963 | 0.931 | 0.926 | 0.964 |
Cow3 | 0.967 | ||||
NORMATIVE COMMITMENT (Nc) | Nc4 | 0.782 | 0.563 | 0.739 | 0.836 |
Nc5 | 0.773 | ||||
Nc6 | 0.813 | ||||
Nc8 | 0.617 | ||||
ORGANIZATIONAL COMMITMENT (Oc) | Oc1 | 0.830 | 0.696 | 0.927 | 0.941 |
Oc2 | 0.894 | ||||
Oc3 | 0.797 | ||||
Oc4 | 0.763 | ||||
Oc5 | 0.869 | ||||
Oc6 | 0.789 | ||||
Oc7 | 0.888 | ||||
TURNOVER INTENTION (Ti) | Ti1 | 0.802 | 0.650 | 0.922 | 0.939 |
Ti2 | 0.866 | ||||
Ti3 | 0.908 | ||||
Ti4 | 0.854 | ||||
Ti5 | 0.798 | ||||
Ti6 | 0.858 |
Constructs | Ben | Pro | Sup | Pay | Cr | Ti | Com | Now | Cow | Nc | Oc |
---|---|---|---|---|---|---|---|---|---|---|---|
Ben | 0.787 | ||||||||||
Pro | 0.415 | 0.808 | |||||||||
Sup | 0.279 | 0.400 | 0.810 | ||||||||
Pay | 0.622 | 0.532 | 0.377 | 0.850 | |||||||
Cr | 0.592 | 0.557 | 0.503 | 0.719 | 0.837 | ||||||
Ti | −0.338 | −0.457 | −0.440 | −0.456 | −0.555 | 0.849 | |||||
Com | 0.352 | 0.373 | 0.470 | 0.399 | 0.540 | −0.536 | 0.806 | ||||
Now | 0.203 | 0.325 | 0.350 | 0.311 | 0.343 | −0.566 | 0.439 | 0.831 | |||
Cow | 0.292 | 0.357 | 0.446 | 0.337 | 0.469 | −0.447 | 0.483 | 0.449 | 0.965 | ||
Nc | 0.169 | 0.251 | 0.202 | 0.241 | 0.290 | −0.487 | 0.239 | 0.378 | 0.223 | 0.750 | |
Oc | 0.407 | 0.454 | 0.408 | 0.474 | 0.541 | −0.738 | 0.553 | 0.687 | 0.543 | 0.556 | 0.834 |
Constructs | Ben | Pro | Sup | Pay | Cr | Ti | Com | Now | Cow | Nc | Oc |
---|---|---|---|---|---|---|---|---|---|---|---|
Ben | |||||||||||
Pro | 0.508 | ||||||||||
Sup | 0.337 | 0.474 | |||||||||
Pay | 0.741 | 0.620 | 0.443 | ||||||||
Cr | 0.712 | 0.654 | 0.595 | 0.826 | |||||||
Ti | 0.383 | 0.504 | 0.499 | 0.503 | 0.619 | ||||||
Com | 0.427 | 0.441 | 0.561 | 0.469 | 0.638 | 0.615 | |||||
Now | 0.242 | 0.382 | 0.414 | 0.364 | 0.404 | 0.638 | 0.534 | ||||
Cow | 0.336 | 0.402 | 0.501 | 0.375 | 0.527 | 0.480 | 0.543 | 0.506 | |||
Nc | 0.210 | 0.301 | 0.237 | 0.287 | 0.355 | 0.570 | 0.296 | 0.462 | 0.259 | ||
Oc | 0.463 | 0.507 | 0.455 | 0.524 | 0.605 | 0.783 | 0.625 | 0.768 | 0.588 | 0.659 |
Constructs | Ben | Pro | Sup | Pay | Cr | Ti | Com | Now | Cow | Op | Nc | Oc |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Ben | 1.565 | 1.288 | 1.252 | 1.290 | ||||||||
Pro | 1.146 | 1.474 | 1.405 | 1.388 | 1.219 | 1.386 | 1.146 | |||||
Sup | 1.248 | 1.473 | 1.477 | 1.371 | 1.000 | |||||||
Pay | ||||||||||||
Cr | 1.880 | 1.774 | 1.133 | |||||||||
Ti | ||||||||||||
Com | 1.544 | 1.750 | 1.388 | 1.533 | ||||||||
Now | 1.949 | 1.133 | 1.505 | |||||||||
Cow | 1.146 | 1.248 | 1.460 | 1.333 | 1.370 | 1.490 | 1.146 | |||||
Op | 1.462 | 1.198 | ||||||||||
Nc | 3.019 | |||||||||||
Oc | 1.565 | 1.288 | 1.252 | 1.290 |
Relationship between Latent Factors | Original Sample | Sample Mean | Standard Deviation | T Statistics | p Values |
---|---|---|---|---|---|
Benefits → Pay | 0.281 | 0.281 | 0.041 | 6.942 | 0.000 |
Benefits → Contingent rewards | 0.346 | 0.351 | 0.041 | 8.464 | 0.000 |
Benefits → Communication | 0.153 | 0.156 | 0.050 | 3.074 | 0.002 |
Benefits → Organizational commitment | 0.145 | 0.144 | 0.035 | 4.140 | 0.000 |
Promotion → Benefits | 0.356 | 0.357 | 0.050 | 7.074 | 0.000 |
Promotion → Pay | 0.157 | 0.153 | 0.039 | 4.005 | 0.000 |
Promotion → Contingent rewards | 0.232 | 0.228 | 0.045 | 5.187 | 0.000 |
Promotion → Communication | 0.104 | 0.104 | 0.048 | 2.138 | 0.033 |
Promotion → Nature of work | 0.131 | 0.130 | 0.047 | 2.783 | 0.006 |
Promotion → Organizational commitment | 0.082 | 0.083 | 0.037 | 2.208 | 0.028 |
Supervision → Promotion | 0.301 | 0.297 | 0.050 | 6.020 | 0.000 |
Supervision → Contingent rewards | 0.170 | 0.169 | 0.038 | 4.445 | 0.000 |
Supervision → Turnover intention | −0.077 | −0.076 | 0.039 | 1.981 | 0.048 |
Supervision → Communication | 0.257 | 0.257 | 0.052 | 4.998 | 0.000 |
Supervision → Coworkers | 0.446 | 0.447 | 0.044 | 10.179 | 0.000 |
Contingent rewards → Pay | 0.465 | 0.466 | 0.044 | 10.660 | 0.000 |
Contingent rewards → Turnover intention | −0.159 | −0.159 | 0.039 | 4.090 | 0.000 |
Contingent rewards → Normative commitment | 0.182 | 0.175 | 0.050 | 3.629 | 0.000 |
Communication → Contingent rewards | 0.196 | 0.199 | 0.039 | 5.034 | 0.000 |
Communication → Turnover intention | −0.107 | −0.109 | 0.046 | 2.320 | 0.021 |
Communication → Nature of work | 0.256 | 0.257 | 0.057 | 4.481 | 0.000 |
Communication → Organizational commitment | 0.158 | 0.156 | 0.039 | 4.063 | 0.000 |
Nature of work → Turnover intention | −0.100 | −0.096 | 0.050 | 2.027 | 0.043 |
Nature of work → Normative commitment | 0.316 | 0.321 | 0.044 | 7.198 | 0.000 |
Nature of work → Organizational commitment | 0.378 | 0.381 | 0.041 | 9.239 | 0.000 |
Coworkers → Benefits | 0.165 | 0.163 | 0.046 | 3.583 | 0.000 |
Coworkers → Promotion | 0.222 | 0.226 | 0.047 | 4.688 | 0.000 |
Coworkers → Contingent rewards | 0.114 | 0.111 | 0.040 | 2.836 | 0.005 |
Coworkers → Communication | 0.287 | 0.287 | 0.046 | 6.224 | 0.000 |
Coworkers → Nature of work | 0.279 | 0.277 | 0.060 | 4.652 | 0.000 |
Coworkers → Organizational commitment | 0.160 | 0.159 | 0.039 | 4.128 | 0.000 |
Normative commitment → Turnover intention | −0.127 | −0.130 | 0.040 | 3.166 | 0.002 |
Normative commitment → Organizational commitment | 0.294 | 0.294 | 0.035 | 8.488 | 0.000 |
Organizational commitment → Turnover intention | −0.421 | −0.422 | 0.057 | 7.410 | 0.000 |
Benefits → Pay | 0.281 | 0.281 | 0.041 | 6.942 | 0.000 |
Benefits → Contingent rewards | 0.346 | 0.351 | 0.041 | 8.464 | 0.000 |
Construct | R2 | Adj. R2 | Q2 | SRMR (sat. Model) | SRMR (est. Model) |
---|---|---|---|---|---|
Benefits | 0.196 | 0.192 | 0.117 | 0.062 | 0.063 |
Promotion | 0.200 | 0.196 | 0.127 | ||
Pay | 0.592 | 0.589 | 0.423 | ||
Contingent rewards | 0.579 | 0.574 | 0.398 | ||
Turnover intention | 0.609 | 0.603 | 0.425 | ||
Communication | 0.352 | 0.346 | 0.217 | ||
Nature of work | 0.280 | 0.275 | 0.190 | ||
Coworkers | 0.199 | 0.197 | 0.181 | ||
Normative commitment | 0.172 | 0.168 | 0.093 | ||
Organizational commitment | 0.694 | 0.689 | 0.478 |
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Gelencsér, M.; Szabó-Szentgróti, G.; Kőmüves, Z.S.; Hollósy-Vadász, G. The Holistic Model of Labour Retention: The Impact of Workplace Wellbeing Factors on Employee Retention. Adm. Sci. 2023, 13, 121. https://doi.org/10.3390/admsci13050121
Gelencsér M, Szabó-Szentgróti G, Kőmüves ZS, Hollósy-Vadász G. The Holistic Model of Labour Retention: The Impact of Workplace Wellbeing Factors on Employee Retention. Administrative Sciences. 2023; 13(5):121. https://doi.org/10.3390/admsci13050121
Chicago/Turabian StyleGelencsér, Martin, Gábor Szabó-Szentgróti, Zsolt Sándor Kőmüves, and Gábor Hollósy-Vadász. 2023. "The Holistic Model of Labour Retention: The Impact of Workplace Wellbeing Factors on Employee Retention" Administrative Sciences 13, no. 5: 121. https://doi.org/10.3390/admsci13050121
APA StyleGelencsér, M., Szabó-Szentgróti, G., Kőmüves, Z. S., & Hollósy-Vadász, G. (2023). The Holistic Model of Labour Retention: The Impact of Workplace Wellbeing Factors on Employee Retention. Administrative Sciences, 13(5), 121. https://doi.org/10.3390/admsci13050121