Targeted employee retention : reasons for considering leaving a South African financial services institution

Abstract

In today’s volatile and unpredictable economic environment, the retention of human capital, one of any organisation’s most valuable resources, has become critically important. The focus of employee retention has gradually moved away from blanket retention strategies to targeted retention strategies designed to address turnover in specified employee groups or categories that are of exceptional value to the organisation. This study examined the retention dynamics of employees in a large financial services institution in South Africa. The study’s aim was to investigate employees’ intention to leave, and their reasons for considering leaving the company, while testing whether these factors differ according to employees’ biographical characteristics, including gender, population group, management status, and the type of work they perform, thereby conducting targeted analysis of employee retention needs. For the purposes of the present study, quantitative survey data from a secondary source were used. The data used were collected during 2011 as part of an employee satisfaction survey in a large organisation within the financial services industry. A quantitative research approach was followed to attain the research objectives of this study. The results shed light on the most prominent antecedents of employee turnover in the organisation under study, while also identifying the antecedents that contribute only to a small degree to labour turnover. Differences between biographical groups were significant, confirming that turnover intention and reasons for considering leaving the company differ according to employees’ gender, population group, management status, and the type of work they perform. Effective targeted retention strategies are expected to reduce employee turnover, and help organisations to retain a knowledgeable and productive workforce. The results of the study can aid especially human resource practitioners in developing tailor-made retention strategies that address the needs of targeted employee groups.