Master Thesis
Level: master’s program Perceived Work-related Factors and Turnover Intention - A Case Study of a South Korean Construction Company
Author: Jinseok Yang and Philip Wittenberg
Supervisor: Lenka Klimplova
Examiner: Tao Yang
Subject/main field of study: Master’s thesis in Business Administration/ Strategic HRM
Course code: FÖ 3027
Credits: 15
Date of examination: June 13th, 2016
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Purpose – Employee turnover entails considerable costs and is a major problem for the
construction industry. By creating an extensive framework, this study aims to examine
whether perceived work-related factors affect turnover intention in South Korean
construction companies.
Research design – The paper is based on the results of a questionnaire of 136 employees
that was conducted and provided by a Korean construction company. Research
hypotheses were tested via correlation analyses. The most influencing work-related
factors, as well as differences among job levels, were determined by multiple regression
analyses.
Findings – Communication, immediate leaders, organizational commitment, and
organizational pride substantially affect turnover intentions. All of these factors can be
considered as relational factors. The most influencing factors differ among job levels.
Discussion/practical implications – Immediate leaders should be aware of their role in
retaining employees and enhance communication, organizational commitment and pride.
This study shows how the importance of certain variables differs for groups of employees.
Theoretical implications/limitations– This study is based on a sample of employees from
a Korean construction company. Therefore, the generalizability of the findings has to be
tested. Future research should test the proposed framework with other factors or resources.
Originality/value – This study shed light on the turnover subject in the South Korean
construction industry. It shows that different factors can influence turnover intention
among job levels. A framework was created, which is based on 16 work-related factors
including organizational factors, HRM practices and job attitudes.
Keywords Employee turnover, Turnover intention, Work-related factors, Job level,
Construction, South Korea, Organizational pride, Organizational commitment,
Communication, Immediate leader
Paper type – Master thesis
Contents
1. INTRODUCTION ........................................................................................................................... 1
2. CONCEPTUAL FRAMEWORK .................................................................................................... 5
2.1 Theoretical background .............................................................................................................. 5
2.1.1 Social Exchange Theory ...................................................................................................... 5
2.1.2 Turnover and turnover intention .......................................................................................... 5
2.1.3 Job level and turnover reasons ............................................................................................. 6
2.2 Creating the framework: Work-related factors influencing turnover intention ......................... 7
2.2.1 Organizational factors .......................................................................................................... 8
2.2.2 HRM practices ................................................................................................................... 14
2.2.3 Job attitudes ....................................................................................................................... 19
3. RESEARCH DESIGN ................................................................................................................... 25
3.1 Research strategy ...................................................................................................................... 25
3.2 Data collection .......................................................................................................................... 27
3.3 Data description ........................................................................................................................ 28
3.4 Data analysis methods .............................................................................................................. 29
3.5 Data quality, limitations and ethical considerations ................................................................. 30
4. FINDINGS ..................................................................................................................................... 32
4.1 General description................................................................................................................... 32
4.2 Correlation analysis .................................................................................................................. 34
4.3 Multiple regression analysis ..................................................................................................... 35
5. DISCUSSION & PRACTICAL IMPLICATIONS........................................................................ 41
6. CONCLUSION .............................................................................................................................. 45
References .......................................................................................................................................... 47
Appendix ............................................................................................................................................ 62
1
1. INTRODUCTION
Employee turnover continues to be a serious problem for organizations even though it has
been researched for more than 60 years (March & Simon, 1958; Nawaz & Pangil, 2016). Turnover
is defined as the individual movement across the membership boundary of an organization (Price,
2001). It is closely related to the loss of competitive advantages. According to the resource-based
view (RBV), competitive advantages originate from strategic resources which are scarce and
difficult to imitate and transfer (Wernerfelt, 1984; Grant, 1991; Amit & Schoemaker, 1993).
Numerous scholars have pointed out that human resources are one of the strategic resources which
lead companies to competitive advantages. For example, Boxall and Purcell (2011) contended that
the special quality of human resources can lead companies to a sustainable market leadership
position. Additionally, they argued that competitive advantages based on human resources are
superior and hard to copy by competitors (Boxall & Purcell, 2011). McWilliams, Van Fleet and
Wright (2001) also asserted that a highly skilled and motivated workforce has great potential to
create a source of sustainable competitive advantages. The assurance that human capital is
strategically important to a firm’s viability and success implies how crucial it is to prevent high
skilled employees from leaving organizations.
Not only is turnover closely related to the loss of firms’ competitive advantages, it can also
cause monetary and non-monetary costs for the firm. Monetary costs arise through the hiring
process of new employees (Haider, Rasli, Akhtar, Yusoff, Malik & Aamir, 2015), such as
advertising, screening, verifying credentials, interviewing and the training of new employees (Nair,
2009). Additional costs are caused through time and administration necessary for exit interviews
(Korsakienė, Stankevičienė, Šimelytė & Talačkienė, 2014). Non-monetary costs occur in form of
the loss of specific knowledge, know-how, skills (Yamamoto, 2011; Mitchell, Holtom & Lee, 2001),
customers and contacts, productivity (Shaw & Dewald, 2011) and social capital (Sutherland &
Jordaan, 2004). In the future, these lost attributes are likely to be transferred to competing
organizations, enabling them to gain competitive advantages (Ramlall, 2003). Overall, it can be
concluded that the loss of employees can negatively impact the competitive advantages of a firm
(Shaw, Gupta & Delery, 2005) and cause relevant costs (Haider et al., 2015; Yamamoto, 2011).
Thus, it can be maintained that understanding employees’ turnover behavior is crucial for an
organization’s viability.
Various turnover determinants have been revealed since March and Simon’s (1958) study,
which is one of the earliest turnover studies. Porter and Steers (1973) identified several work-
related and personal factors as crucial determinants of turnover. For example, they mentioned
2
extrinsic rewards and advancement opportunities as work-related factors and family responsibilities
as a personal factor. However, Baysinger and Mobley (1983) criticized the previous turnover
studies which focused on personal factors. They suggest that turnover studies should focus on
factors that can be influenced by HR managers (human resources managers) and organizations.
Based on this point of view and in order to suggest practical implications for organizations, the
scope of this study is limited to work-related factors such as organizational communication,
performance appraisal, and organizational trust. Since the reasons to leave an organization may
differ according to job levels (Hausknecht, Rodda & Howard, 2009), the present research will
highlight differences in turnover behavior of both managerial and non-managerial employees. The
fact that job level differences have not been extensively studied in the literature (Hausknecht et al.,
2009), further motivates this intention.
Turnover is a relevant topic for organizations all over the world. According to Khatri,
Budhwar, and Chong (2010), most organizations in Asian countries such as Malaysia, Singapore,
Hong Kong, Taiwan and South Korea have been facing the same turnover problems as Western
countries. South Korea in particular, has gone through dramatic changes in economic and business
environment since the Asian financial crisis in 1997. Since the crisis, the South Korean labor
market has experienced massive layoffs in many organizations (Lee, 1998). Following the request
of the International Monetary Fund (IMF), South Korea's economy was opened to foreign
investment capital in order to receive a financial package to revive its economy (Kim, Lee & Lee,
2013). Furthermore, South Korean firms adapted ‘Western Human Resource Management (HRM)’
models, following the trend of other Asian Pacific regions (Rowley, 1997). Based on these models,
the previously established seniority system that had guaranteed long-term employment was replaced
by a more flexible and performance-oriented system (Rowley & Bae, 2002). This process of change
affected the employee perception of employment contracts. Employees realized that an employment
contract could be broken at any time by the employer as well as by the employee (Kim et al., 2013).
It also became apparent that the adoption of ‘Western HRM’ does not necessarily mean that these
HR practices yield the same outcomes as in Western countries. Benson and Rowley (2003) stated
that unique cultural characteristics are regarded as a crucial component in restraining the
convergence of HRM practices. Accordingly, significant cultural differences between western
countries and South Korea resulted in the incomplete integration of HRM practices (Kim et al.,
2013). The development that initiated from the Asian financial crisis and the mentioned cultural
differences make it necessary to conduct further research on factors influencing turnover intention
of South Korean employees.
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The need for research is especially necessary in the South Korean construction industry
since the sector has one of the highest voluntary employee turnover rates (Appendix 1). According
to the statistical data from the Ministry of Labor in South Korea (2016), the average voluntary
turnover rate between 2011 and 2015 was 2.1% in South Korea. The average rate in the
construction industry during the same period was 3.6%. It had the third highest rate, compared with
17 other industries in South Korea. Only two industries, namely accommodation and food services
(5.2%) and business facilities management and business support services (3.9%), had higher
turnover rates during this period (Employment Labor Statistics Korea, 2016). Another reason for
studying employee turnover in the construction sector is the fact that human capital is the most
important source to successfully accomplish projects. Tupenaite, Kanapeckiene and Naimaviciene
(2008) claimed that tacit knowledge is an essential determinant of successful performance and a
competitive edge in the construction industry. Tacit knowledge refers to the inexpressible
knowledge that people acquire. It is difficult to codify and has both subjective and personal
characteristics (Hislop, 2005). Thus, it can be argued that retaining skilled and knowledgeable
employees is a critical factor in the construction industry. It is therefore valuable to conduct
research in this particular sector. While turnover studies in South Korea have been conducted in
other industries, such as nursing (Moon & Han, 2011), hospital (Sung, Seo & Kim, 2012), nonprofit
(Kang, Huh, Cho & Auh, 2014) and IT (Chang, 2008), to our knowledge, no such research has been
carried out in the construction sector. Hence, the study aims to examine whether perceived work-
related factors affect turnover intention in South Korean construction companies. To fulfill this aim
the two research objectives are formulated. The first objective is to examine the relationship
between work-related factors and turnover intention among job levels. The second is the
determination of the most influencing work-related factors among job levels. To reach these
objectives, a case study of a South Korean construction company will be conducted.
This study will contribute to both literature and practitioners. On the one hand, it will enrich
the empirical sources of the specific topic of turnover in the South Korean construction industry. On
the other hand, it may offer help to management and HR managers in the South Korean
construction industry, to understand their employees’ turnover intentions better. It might finally
help organizations reduce turnover rates. In order to achieve the aim, this paper is structured as
follows. First, based on a literature review, the relevant theoretical background will be introduced.
Moreover, the framework for this study will be illustrated in the chapter conceptual framework. The
research design chapter will cover research strategy, data collection, data analysis methods and data
quality and limitations. The results of the analyses are presented in the next chapter. In the
following chapter, the discussion regarding the result of analyses, as well as practical implications
4
will be presented. Finally, the paper will conclude with a summary of the study, with theoretical
implications and suggestions for further research.
5
2. CONCEPTUAL FRAMEWORK
In this chapter the conceptual framework of this study, as well as relevant theoretical background is
presented.
2.1 Theoretical background
2.1.1 Social Exchange Theory
This study is based on the fundamental concepts of social exchange theory. Social exchange
theory implies an ‘exchange’ process between two parties, that is mutually contingent, and mutually
rewarding (Emerson, 1976). According to this theory, various social exchange relationships exist
between members of an organization (Cropanzano & Mitchell, 2005). Numerous studies (Gilhs,
2008; Ko, 2005; Rice, 2009; Schakett, 2009; Swift, 2007) adopted this theory to explain the
relationship between employees behavior and a diversity of organizational aspects. According to
Wayne, Shore and Liden (1997), high level of social exchange can contribute to building a sense of
attachment and commitment towards the organization.
Furthermore, when employees have a positive perception of a social exchange relationship
with their employers, they are less likely to leave their organizations (Nawaz & Pangil, 2016). For
instance, Abubakar, Chauhan and Kura (2015) indicated that employees have a tendency to stay at
their current job when they are satisfied with the salary, performance appraisal, training and
development and career growth in their organizations. In addition, the greater employees
satisfaction with organizational support, the more likely they will feel a responsibility to reward
their organization (Eisenberger, Huntington, Hutchinson & Sowa, 1986; Eisenberger, Stinglhamber,
Vandenberghe, Sucharski & Rhoades, 2002). One way to do this is by remaining in and staying
loyal towards the organization. Thus, social exchange theory suggests that organizations and
managers can provide organizational support to achieve desirable attitudes and behaviors from
employees, for example, low turnover intention (Gould-Williams, 2007; Gould-Williams & Davies,
2005; Spencer, Buyens & Taylor, 2012).
2.1.2 Turnover and turnover intention
Turnover describes the rotation of employees around the labor market; between jobs, firms
and between the states of unemployment and employment (Abbasi & Hollman, 2000). Various
different factors that cause employees to quit are mentioned in the literature, including a decrease in
6
satisfaction with the organization, compensation, organizational communication, and a declining of
reputation (Doh, Smith, Stumpf & Tymon, 2011; Cotton & Tuttle, 1986).
The causes for turnover can be involuntary or voluntary. Involuntary turnover reflects the
decision of an employer to terminate the employment contract of an employee (Shaw, Delery,
Jenkins & Gupta, 1998). Additionally, uncontrollable reasons like injury, sickness and death can
also cause involuntary turnover. Voluntary employee turnover explains that individual perception of
employees can actually result in turnover (Javed, Khan, Yasir, Aamir & Ahmed, 2014). Voluntary
employee turnover can be influenced by the following factors: the perception of work quality
(Jackofsky & Peters, 1983), and job satisfaction (Law, 1995).
Turnover is closely related to turnover intention, as the actual turnover behavior depends on
the individual’s intention to leave the company. It is defined as a cognitive process by which one
considers resigning from work (Mobley, Griffeth, Hand, & Meglino, 1979). In other words, it is an
employee’s unexpressed plan to quit work within a certain time period (Lambert & Hogan, 2009).
Various researchers found that turnover intention is the most immediate determinant of actual
turnover behavior (Bluedorn, 1982; Igbaria & Greenhaus, 1992; Mobley et al., 1979). This present
research assigns turnover intention as a dependent variable and examines the influence of work-
related factors on this intention.
2.1.3 Job level and turnover reasons
Steel, Griffeth and Hom (2002) indicated that organizations should tailor their retention
strategies to specific employee groups rather than adopting identical strategies to all employees.
Within an organization employees can be divided into groups according to their job level. It is
therefore suggested, to examine the factors that motivate employees to stay in their organization at
different job levels (Griffeth & Hom, 2001). Hausknecht et al. (2009) revealed that the reasons to
stay in organizations among job levels vary based on different psychological contracts. The
psychological contract refers to individual's perceptions and beliefs about the terms and conditions
of a mutual exchange agreement between that body and another party (Rousseau, 1989). According
to Hausknecht et al. (2009), employees at different job levels have distinctive psychological
contracts with organizations, such as transactional and relational contracts. The findings of the
study indicated that employees in high job positions are generally more likely to have relational
reasons, such as promotion opportunities, organizational commitment, and organizational pride to
stay at their present organization. Contrarily, employees at lower job positions have transactional
reasons including compensation and flexible working hours, to stay at their current employer.
7
Accordingly, it can be assumed that the most impacting work-related factors might not be identical
for managerial and non-managerial level employees.
2.2 Creating the framework: Work-related factors influencing turnover
intention
Various authors (Ø gaard, 2006; Muchinsky & Morrow, 1980; Branham, 2005) conducted
research to evaluate the influence of work-related factors on turnover intention. By examining
turnover literature, it was observed that the work-related factors included in previous studies can be
classified into following categories: organizational factors, HRM practices, and job attitudes.
However, previous studies seem not to include various factors from all three categories (Appendix
2). A need for future research in this field has been also expressed by a number of authors (Juhdi,
Pa'wan & Hansaram, 2013; Abubakar, Chauhan & Kura, 2014; Cotton & Tuttle, 1986; Nawaz &
Pangil, 2016). In order to create an extensive view of turnover intention in an organization, the
framework for this study will include factors from all three categories. The work-related factors
were chosen based on a review of turnover studies and meta-analyses of turnover. Most frequently
used work-related factors were compiled and aligned with the data used for the study. However, in
order to make this study feasible, the number of chosen work-related factors is limited to 16.
Employees’ perception of the 16 factors will be measured and these perceptions will be
assigned as the independent variables. Perception is a process by which individuals interpret and
organize their impressions in order to give meaning to their environment (Robbins & Judge, 2014).
What an individual perceives, however, can be significantly different from objective reality. The
employee perception provides an important view of the organization through the eyes of employees
(Klaur, 2015). It is therefore a kind of discreet feedback that can be utilized for meeting and
understanding employee needs (Klaur, 2015). To measure the employee perception is important for
the study because employees’ behavior, in this particular case, their turnover behavior, is based on
their personal perception (Robbins & Judge, 2014). In the following part the factors chosen for this
study, which are assigned to each of the three categories, will be explained. Based on the literature
review, the South Korean context was also considered to formulate hypotheses. The hypotheses will
test the relationship between the employee perception of each factor and turnover intention.
8
2.2.1 Organizational factors
The organizational factors include: goals and direction, immediate leader, communication,
company’s reputation, culture towards risk taking and collaboration.
Goals and direction
Strategic planning is the organizational process of defining its goals or direction, and
making decisions on allocating its resources to achieve them (Business Dictionary- strategic
planning, 2016). Empirical evidence suggests that the establishment of clearly defined
organizational objectives and goals decrease employee turnover intention and increase job
productivity (Moncarz, Zhao & Kay, 2009). Furthermore, organizations with effective and well-
communicated mission and goals were found to experience lower turnover rates (Moncarz et al.,
2009). In order to ensure that the defined objectives are achieved, individual employee’s efforts
should be linked to the organizational goals (Lee & Conrad, 2009). Not only does this help reach
goals and objectives, it also increases employee job satisfaction (Ostroff, 1992). To conclude,
clearly established organizational goals that are understood by employees and are linked to their
individual efforts do not only increase the overall job satisfaction, but also influence the turnover
intention. Therefore, the framework of this paper includes questions that intend to evaluate whether
or not the employees understand the company's vision and business goals. Additionally, they are
asked if their individual goals are linked to the goals of the team and the company. Lastly, the
employee perception of their department’s mission and goals is evaluated. According to a recent
report by the Korean Chamber of Commerce and Industry (KCCI) and McKinsey (2016),
employees and management in South Korean companies had significantly different perceptions of
the goals and the directions of their companies. Employees had a low perception of goals and
directions while management perceived them as high, communicating these within the organization.
Based on the social exchange theory, it can be assumed that the low perception of South Korean
employees regarding goals and directions leads to increase turnover intention. Accordingly, the
following hypotheses are formulated. It is expected that a high perception of goals and direction
will decrease the intention to leave and vice versa.
H1a: The perception of goals and direction has a negative relationship with turnover intention among the
employees of South Korean construction companies.
H1b: The perception of goals and direction has a negative relationship with turnover intention among non-
managerial employees of South Korean construction companies.
9
H1c: The perception of goals and direction has a negative relationship with turnover intention among
managerial employees of South Korean construction companies.
Immediate leader
An effective organizational leadership can help prioritize aims for employees and can
provide guidance toward achieving the overall corporate goals (Business Dictionary –
organizational leadership, 2016). It has been observed that dissatisfaction with immediate leaders is
a contributor to turnover (Christmas, 2008). An early review of turnover studies by Cotton and
Tuttle (1986), indicated that the satisfaction with supervision or the immediate leader was utilized
as an independent variable in several studies. Furthermore, various studies examined factors that
influence the employee’s satisfaction with their supervisors. Sušanj and Jakopec (2012) stated that
fairness is one important factor which increases employees’ satisfaction with their immediate leader.
This means, for example, that immediate leaders evaluate employees’ performance consistently,
rationally and objectively. Trust and satisfaction can further be increased if employees are pleased
with their leader’s communication. More precisely, when leadership listens to what team members
say and reflect opinions into decision making (Podsakoff, MacKenzie, Moorman & Fetter 1990).
Folkman (2010) further revealed that consistent behavior of immediate leaders is a crucial factor
that influences employee satisfaction, commitment and trust towards immediate leaders. To sum up,
satisfaction with immediate leadership has a direct impact on employee’s turnover intention.
Fairness, transparency and satisfying communication affect the employee’s satisfaction with
leadership, and are therefore analyzed in this study. Since the relationship with supervisors has been
verified as a negative determinant of turnover intention in previous research in South Korea and
China (Kim, Lee & Lee, 2013; Kim, 2015), a similar result can be expected in South Korean
construction companies. Accordingly, the following hypotheses are formulated. It is expected that a
high perception of immediate leader will decrease the intention to leave and vice versa.
H2a: The perception of immediate leader has a negative relationship with turnover intention among the
employees of South Korean construction companies.
H2b: The perception of immediate leader has a negative relationship with turnover intention among non-
managerial employees of South Korean construction companies.
H2c: The perception of immediate leader has a negative relationship with turnover intention among
managerial employees of South Korean construction companies.
10
Communication
Organizational communication can be referred to as communication among different
hierarchic levels, as well as communication between employees in the organization (Turkalj &
Fosić, 2009). Studies have shown that communication is an important determinant that significantly
influences turnover intention of both management and non-management personnel (Moncarz et al.,
2009). It is not only important that the management is able to clearly communicate with their
employees (downward communication), but also relevant that employees can easily deliver
messages to their leaders (upward communication) (Turkalj & Fosić, 2009). Additionally, easy
communication within and between teams or departments (sideward communication) also increases
the perceived satisfaction of communication (Turkalj & Fosić, 2009). In summary, communication
that has been proven to be an important influencer for turnover consists of downward-, upward- and
sideward communication. The satisfaction of employees regarding these three communication
forms will be measured within this research. The satisfaction of employees regarding these three
communication forms will be measured within this research. South Korean companies, compared to
other global companies, have an underdeveloped organizational communication (Korea Chamber of
Commerce & Industry, 2016). This is represented by one-way communication from top to bottom.
Based on the social exchange theory, it can be assumed that the low perception of South Korean
employees concerning communication in organizations leads to an increase in turnover intention.
Accordingly, the following hypotheses are formulated. It is expected that a high perception of
communication will decrease the intention to leave and vice versa.
H3a: The perception of communication has a negative relationship with turnover intention among the
employees of South Korean construction companies.
H3b: The perception of communication has a negative relationship with turnover intention among non-
managerial employees of South Korean construction companies.
H3c: The perception of communication has a negative relationship with turnover intention among
managerial employees of South Korean construction companies.
Company’s reputation
Organizational prestige is known as a potentially important turnover factor (Muchinsky &
Morrow, 1980). Reputation is closely linked to the prestige of an organization (Fombrun & Shanley,
1990). Organizational reputation reflects the effort by organizations to retain and attract high skilled
employees (Branham, 2005). Accordingly, it is important to communicate and emphasize the
11
competitiveness of organizations to current and potential employees (Branham, 2005). In order to
be known as competitive, organizations need to adapt to changing market conditions, especially in
the era of globalization, new technologies and high transparency (Reeves & Deimer, 2011).
Employees therefore are asked about their perception regarding the competitiveness of their
organization as well as its ability to adapt to a changing environment. Finally, it is evaluated
whether they generally believe the organization is a good place to work for. Previous research in
South Korea (Kwon & Rupp, 2013) presented negative relations between a company’s reputation
and turnover intention, especially among high performers in organizations. An identical correlation
can be expected in South Korean construction companies. Accordingly, the following hypotheses
are formulated. It is expected that a high perception of company’s reputation will decrease the
intention to leave and vice versa.
H4a: The perception of company’s reputation has a negative relationship with turnover intention among the
employees of South Korean construction companies.
H4b: The perception of company’s reputation has a negative relationship with turnover intention among
non-managerial employees of South Korean construction companies.
H4c: The perception of company’s reputation has a negative relationship with turnover intention among
managerial employees of South Korean construction companies.
Culture towards change and risk-taking
Organizational culture that can be defined as “a complex set of values, beliefs, assumptions,
and symbols that define the way in which a firm conducts its business” (Barney, 1986, p. 657), can
be a source of sustained competitive advantages (Barney, 1986). It further has a significant
influence on the retention of management or non-management personnel (Moncarz et al., 2009). A
change-oriented culture (development, initiative, creativity, openness) is positively related to
employee satisfaction and retention (Meyer & Topolnytsky, 1990). An organization with strong
change-related values is expected to implement HRM practices that encourage creativity and
innovation. Further, it is likely to have a very flexible structure, reward practices for risk-taking and
decentralized decision making (Meyer & Topolnytsky, 1990). To identify whether a change-
oriented culture is embedded in the researched organization, the employees are asked if change is
initiated, decision making is decentralized and risk-taking is rewarded. According to previous
research in South Korea (Park & Kim, 2009), a culture that encourages employees to take risks and
initiate innovations reduces turnover intention. This result can be expected in South Korean
construction companies. Accordingly, the following hypotheses are formulated. It is expected that a
12
high perception of culture towards change and risk-taking will decrease the intention to leave and
vice versa.
H5a: The perception of culture towards change and risk-taking has a negative relationship with turnover
intention among the employees of South Korean construction companies.
H5b: The perception of culture towards change and risk-taking has a negative relationship with turnover
intention among non-managerial employees of South Korean construction companies.
H5c: The perception of culture towards change and risk-taking has a negative relationship with turnover
intention among managerial employees of South Korean construction companies.
Collaboration
Collaboration can be defined as an arrangement in which two or more parties (which may or
may not have had any previous relationship) work collectively towards a common goal (Business
Dictionary – Collaboration, 2016). Internal collaboration focuses on cooperation within an
organization (Hillebrand & Biemans, 2003). Pinkerton (2005) conducted a study which related poor
internal collaboration to turnover in the nursing sector. Furthermore, Christmas (2008) observed
that dissatisfaction with management and departmental relationships are contributors to turnover.
The employee perception concerning collaboration in teams and with other departments thus is
evaluated. Additionally, the perceived effectiveness of sharing information and ideas within the
organization is examined. Since the strong negative correlation between collaboration and turnover
intention has been previously verified in research in South Korea (Park & Kim, 2009), the identical
result can be expected in South Korean construction companies. Accordingly, the following
hypotheses are formulated. It is expected that a high perception of collaboration will decrease the
intention to leave and vice versa.
H6a: The perception of collaboration has a negative relationship with turnover intention among the
employees of South Korean construction companies.
H6b: The perception collaboration has a negative relationship with turnover intention among non-
managerial employees of South Korean construction companies.
H6c: The perception of collaboration has a negative relationship with turnover intention among managerial
employees of South Korean construction companies.
13
To sum up, a high perception of the six chosen organizational factors is expected to decrease
the turnover intention of employees. Thus, a negative relationship between the organizational
factors and turnover intention is anticipated. The relationship between the organizational factors and
turnover intention are illustrated in Figure 1.
Figure1: The negative relationship of organizational factors and turnover intention
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2.2.2 HRM practices
The HRM practices include the factors performance appraisal, compensation, promotion, hiring,
training and career development and job design.
Performance appraisal
Performance appraisal refers to a series of managerial activities including identifying,
monitoring, evaluating, recording and developing the employees’ performance (Swanepoel,
Erasmus, van Wyk & Schenk, 2000). It has a significant role in enhancing employees’ contribution
and commitment towards the organization (Armstrong-Stassen & Schlosser, 2010). If employees
are dissatisfied with the performance appraisal, this can negatively affect their attitudes towards
their work and productivity, and finally it will affect turnover intention. Ahmad and Lemba (2010)
stated that performance appraisals that are biased and allow sanctions could increase employee’s
turnover intention. Thus, it is important to evaluate the employees’ performance objectively and
fairly based on their actual achievement, to prevent employees from being dissatisfied or leaving
the organization. A number of relevant studies are in accordance with this assertion (Kee & Aafaqi,
2000; Whiting & Kline, 2007; Guchait & Cho, 2010). A well-designed linkage between
performance appraisal and compensation can align employees with the long-term goals of the
company and facilitate retention of employees (Delery and Doty, 1996). In addition, Wright (2004)
stated that employees are more satisfied when the appraisal process is easy to understand, well
prepared and planned. To measure the satisfaction of the performance appraisal, the framework of
this research will include three questions regarding performance-based evaluation, linkage between
performance appraisal and compensation, and simplicity of the process. Performance appraisal is
one of HRM practices which, in previous research in East and Southeast Asian countries including
South Korea, shows a negative relationship with turnover intention (Yalabik, Chen, Lawler & Kim,
2008). In addition, the researched company also adopted Western HRM practices, as did other
Korean companies. Based on the result of performance appraisal, compensation and promotion are
implemented in the company. Thus, it can be assumed that performance appraisal has a negative
relationship with turnover intention. Accordingly, the following hypotheses are formulated. It is
expected that a high perception of performance appraisal will decrease the intention to leave and
vice versa.
15
H7a: The perception of performance appraisal has a negative relationship with turnover intention among
the employees of South Korean construction companies.
H7b: The perception of performance appraisal has a negative relationship with turnover intention among
non-managerial employees of South Korean construction companies.
H7c: The perception of performance appraisal has a negative relationship with turnover intention among
managerial employees of South Korean construction companies.
Compensation
Compensation is another crucial factor in HR practices that it is closely related to turnover
intention. A number of empirical findings proved that compensation plays a key role regarding
turnover intention and retention (Lawler & Rhode, 1976; Chew & Chan, 2008). According to Chan
and Kuok (2011), more than 90% of firms acknowledge that salary is a dominant reason for
employees’ turnover in the hospitality and tourism industry in Macau. Dissatisfaction with salary
leads to employees moving to another company for better financial gains (Chan & Kuok, 2011).
Hence the implication that organizations need to offer competitive compensation packages to
reduce turnover intention. In addition, employees expect that their skills, experience and knowledge
are appropriately reflected in a compensation system (Long, Perumal & Ajagbe, 2012). Hence, the
framework of this research includes questions regarding the employees’ satisfaction with their
compensation, considering the cost of living, the labor market pay level, and their performance.
Since previous research in South Korea verifies that compensation has a negative relationship with
turnover intention (Choi, Jeong & Kim, 2015), the identical result can be expected in South Korean
construction companies. Accordingly, the following hypotheses are formulated. It is expected that a
high perception of compensation will decrease the intention to leave and vice versa.
H8a: The perception of compensation has a negative relationship with turnover intention among the
employees of South Korean construction companies.
H8b: The perception of compensation has a negative relationship with turnover intention among non-
managerial employees of South Korean construction companies.
H8c: The perception of compensation has a negative relationship with turnover intention among managerial
employees of South Korean construction companies.
16
Promotion
According to Cotton and Tuttle’s (1986) meta-analysis and review, 16 studies revealed that
promotional opportunity is correlated to employee turnover. Recent studies still consider promotion
as a determinant of employee turnover. Lack of advancement opportunity was one of the most
influencing turnover factors (Korsakienė et al., 2014). Cafaro (2001) also stated that promotion and
work design are the major reasons for employees’ deciding to join, remain or leave a company.
Concerning promotion, fairness is a critical point for employee satisfaction (Parker, Nouri & Hayes,
2011). A strong link between job performance and promotions leads to a high perception of justice
and satisfaction of employees (Parker et al., 2011). Studies revealed that transparent promotion
criteria are another crucial factor of employees’ perceived fairness (McEnrue 1989; Saal & Moore,
1993; Pearce, Branyiczki & Bakacsi, 1994; Kaplan & Ferris, 2001). Being able to communicate
during the promotion process contributes to employee satisfaction (Lind, Tyler & Huo, 1997;
Folger & Cropanzano, 1998). Hence, linkage to job performance, transparency of the criteria, and
appropriate feedback are chosen as criteria for the measurement of employees’ perception regarding
promotion. Since, based on previous research in South Korea (Korea Institute of Local Finance,
2014), promotion is claimed to have a negative relationship with turnover intention, this result can
also be expected in South Korean construction companies. Accordingly, the following hypotheses
are formulated. It is expected that a high perception of promotion will decrease the intention to
leave and vice versa.
H9a: The perception of promotion has a negative relationship with turnover intention among the employees
of South Korean construction companies.
H9b: The perception of promotion has a negative relationship with turnover intention among non-
managerial employees of South Korean construction companies.
H9c: The perception of promotion has a negative relationship with turnover intention among managerial
employees of South Korean construction companies.
Hiring
Hiring can be a starting point for retaining qualified people. Selective hiring procedures
result in increasing the retention of talented people and reducing employee turnover (Huselid, 1995;
Huselid & Becker, 1999). Moncarz et al., (2009) stated that pre-employment tests are one of the
methods that can be applied for selecting qualified employees during the hiring procedure. In
addition, the employees who passed pre-employment tests, such as skill-based-tests, will most
17
likely have high organizational commitment (Cho, Woods, Jang & Erdem, 2006). Accordingly, the
framework includes questions measuring the degree as to how employees perceive their company’s
hiring procedures. The questions will in particular emphasize the validity and suitability of the
hiring practice. Previous research in East and Southeast Asian countries including South Korea
(Yalabik, Chen, Lawler & Kim, 2008) shows that hiring has a negative relationship with turnover
intention. This result can also be expected in South Korean construction companies. Accordingly,
the following hypotheses are formulated. It is expected that a high perception of hiring will
decrease the intention to leave and vice versa.
H10a: The perception of hiring has a negative relationship with turnover intention among the employees of
South Korean construction companies.
H10b: The perception of hiring has a negative relationship with turnover intention among non-managerial
employees of South Korean construction companies.
H10c: The perception of hiring has a negative relationship with turnover intention among managerial
employees of South Korean construction companies.
Training and career development
Training practices contribute to a high-skilled workforce and reduce turnover (Huselid,
1995). Through training, companies can ensure a high quality of performance and, at the same time,
employees are able to acquire new skills and knowledge, being able to work more effectively (Long,
Perumal & Ajagbe, 2012). Walsh and Taylor (2007) stated that a lack of opportunity for
professional growth and development was a major turnover factor, besides dissatisfaction with
compensation. The questions in the framework are therefore related to opportunities and
organizational support for training and career development. Kim (2015) contended that South
Korean companies need to provide employees with opportunities for training and career
development to reduce turnover intention. Based on this argument, the following hypotheses are
formulated. It is expected that a high perception of training and career development will decrease
the intention to leave and vice versa.
H11a: The perception of training and career development has a negative relationship with turnover
intention among the employees of South Korean construction companies.
H11b: The perception of training and career development has a negative relationship with turnover
intention among non-managerial employees of South Korean construction companies.
18
H11c: The perception of training and career development has a negative relationship with turnover intention
among managerial employees of South Korean construction companies.
Job design
Previous studies found that employees who perceive their work as meaningful and
interesting are most likely to remain in their organization (Walsh & Taylor, 2007; Samuel &
Chipunza, 2009). How much discretion employees have in their work is a critical aspect of turnover
behavior. A job which allows independent work and leeway of freedom increases the employees’
intention to stay in a company (Kinnear & Sutherland, 2000). The discretion of planning and
autonomously executing tasks play a major role in increasing employee retention (Korsakienė et al.,
2014). The efficient allocation of work in a team is another influencer of employee turnover.
According to the study of De Pierro (2003), the three top reasons for the high turnover rate among
267 New Jersey special education administrators was workload. Another study indicated heavy
workload as one of the critical factors influencing turnover intention (Chan & Morrison, 2000).
Therefore, it can be assumed that efficient work allocation affects turnover intention by contributing
to the solution of the workload problem. Thus, the research includes questions regarding
meaningful and interesting work, job discretion and job allocation in order to measure the employee
perception of their job design. The negative correlation between employees’ satisfaction of their job
design and turnover intention was verified in previous research in South Korea (Park & Kim, 2009).
An identical result can be expected in South Korean construction companies. Accordingly, the
following hypotheses are formulated. It is expected that a high perception of job design will
decrease the intention to leave and vice versa.
H12a: The perception of job design has a negative relationship with turnover intention among the employees
of South Korean construction companies.
H12b: The perception of job design has a negative relationship with turnover intention among non-
managerial employees of South Korean construction companies.
H12c: The perception of job design has a negative relationship with turnover intention among managerial
employees of South Korean construction companies.
To sum up, a high perception of the six chosen HRM practices is expected to decrease the
turnover intention of employees. Thus, a negative relationship between the HRM practices and
turnover intention is anticipated. The relationship between the HRM practices and turnover
intention are illustrated in Figure 2.
19
Figure 2: The negative relationship of HRM practices and turnover intention
2.2.3 Job attitudes
Job attitudes include organizational pride, organizational commitment, trust and job involvement.
Organizational pride
Various studies have found that the concept of organizational pride essentially influences
turnover intention (Gouthier & Rhein, 2011; Helm, 2012; Hodson, 1998; Kraemer & Gouthier,
2014). Organizational pride is related to organizational performances, such as providing a positive
and encouraging work environment (Kraemer & Gouthier, 2014). In order to establish
organizational pride, a high identification between employees and organization is required
(Kraemer & Gouthier, 2014). The projection of the company’s image on the public can be a source
20
of pride to the employee. The way the company is seen and recognized in the external environment
will establish solidarity and commitment within the organization (Alvesson, 1992). In addition,
organizational pride implies that employees gladly recommend this organization's products or
services to friends and family (Truss, Alfes, Delbridge, Shantz & Soane, 2013). To sum up, how
employees perceive organizational pride essentially influences their turnover intention. In order to
measure the employee perception, they are asked if they are proud of the company's name, if they
are proud to work in the company and if they would recommend this organization's products or
services to friends and family. In a recent study in South Korea (Kim, 2015), the negative
correlation between organizational pride and turnover intention was verified. Thus an identical
result can be expected in South Korean construction companies. Accordingly, the following
hypotheses are formulated. It is expected that a high perception of organizational pride will
decrease the intention to leave and vice versa.
H13a: The perception of organizational pride has a negative relationship with turnover intention among the
employees of South Korean construction companies.
H13b: The perception of organizational pride has a negative relationship with turnover intention among
non-managerial employees of South Korean construction companies.
H13c: The perception of organizational pride has a negative relationship with turnover intention among
managerial employees of South Korean construction companies.
Organizational commitment
Organizational commitment, along with job satisfaction, represents one of the most widely
studied antecedents of turnover (Griffeth, 2000). It can be defined as the employee’s identification
with and involvement in an organization (Mobley et al., 1979). Mobley et al., (1979) suggested that
committed employees are expected to stay with their organization because they are willing to
undertake efforts on their company’s behalf and believe in the goals and values. Organizational
commitment is affected by the perception of care and support by organizations (Eisenberger et al.,
1986). When such favorable supportive treatment is observed, employees feel obliged to repay the
organization with extra effort and loyalty (Eisenberger, Armeli, Rexwinkel, Lynch & Rhoades,
2001). Cultures that support values of teamwork and respect individual members enhance loyalty
with and commitment towards all employees in the organization (Kerr & Slocum, 1987). In order to
evaluate the organizational commitment of the employees, they are asked if they feel a sense of
responsibility for the company's future, if they can identify with the company’s success and if they
would stay in this company even when offered employment elsewhere. Previous research in South
21
Korea (Moon & Han, 2011) shows that organizational commitment is a determinant of turnover
intention. This result can be expected in South Korean construction companies. Accordingly, the
following hypotheses are formulated. It is expected that a high perception of organizational
commitment will decrease the intention to leave and vice versa.
H14a: The perception of organizational commitment has a negative relationship with turnover intention
among the employees of South Korean construction companies.
H14b: The perception of organizational commitment has a negative relationship with turnover intention
among non-managerial employees of South Korean construction companies.
H14c: The perception of organizational commitment has a negative relationship with turnover intention
among managerial employees of South Korean construction companies.
Trust
Trust refers to “one party's willingness to be vulnerable to another party based on the belief
that the latter party is competent, open, concerned and reliable” (Mishra, 1996. p. 265). Casta (2003)
demonstrated that trust plays a main role for the social relations between individuals and
organization. The social bounds based on trust are likely to increase an employee’s intention to stay
in a long-term relationship with the organization (Barrick & Zimmerman, 2009). Trust towards
management has often been examined in literature, because it strongly affects employees’
performances (Balkan, Serin & Soran, 2014). Employees are motivated for high performance when
they trust and respect the leader (Reychav, Sharkie, 2010). In contrast, employees who distrust their
leaders tend to feel worried, which results in low job satisfaction (Knoll & Gill, 2011). Further
studies contend that positive internal relations lead to high retention rates (Hausknecht et al., 2009;
Ulrich, Lavandero, Hart, Woods, Leggett & Taylor, 2006; Christmas, 2008). The questions
therefore aim to measure perceived trust in management, supervisors and colleagues in the
organization. Trust within organizations was proven to have a negative correlation with turnover
intention in previous research in South Korea (Lee, Kim, Kim, Kwon & Cho, 2013). The identical
result can be expected in South Korean construction companies. Accordingly, the following
hypotheses are formulated. It is expected that a high perception of trust will decrease the intention
to leave and vice versa.
H15a: The perception of trust has a negative relationship with turnover intention among the employees of
South Korean construction companies.
22
H15b: The perception of trust has a negative relationship with turnover intention among non-managerial
employees of South Korean construction companies.
H15c: The perception of trust has a negative relationship with turnover intention among managerial
employees of South Korean construction companies.
Job involvement
Various studies showed evidence that involved employees are inclined to be motivated and
proud in their work. Moreover, the employees have a sense of individual fulfilment and they
experience the same given worktime as relatively shorter than others do (Biggs, Brough & Barbour
2014; Ryan & Deci 2001; Saks 2006). The employees can experience the feeling of mastery
through individual accomplishment and this empowers them to confront challenges (Carlson,
Kacmar, Wayne & Grzywacz, 2006). The empowerment of workers helps organizations avoid a
lack of competent employees by reducing turnover (Laschinger & Finegan, 2005). Furthermore,
research has proved that engaged workers are less likely to seek alternative employment (Maslach,
Schaufeli & Leiter, 2001; Schaufeli, 2004; Timms & Brough, 2013). The questions therefore try to
measure the extent of the employees’ proactive attitude to their job. The negative correlation
between job involvement and turnover intention was verified in previous research in South Korea
(Lee & Shin, 2005). The identical result can be expected in South Korean construction companies.
Accordingly, the following hypotheses are formulated. It is expected that a high perception of job
involvement will decrease the intention to leave and vice versa.
H16a: The perception of job involvement has a negative relationship with turnover intention among the
employees of South Korean construction companies.
H16b: The perception of job involvement has a negative relationship with turnover intention among non-
managerial employees of South Korean construction companies.
H16c: The perception of job involvement has a negative relationship with turnover intention among
managerial employees of South Korean construction companies.
To sum up, a high perception of the four chosen job attitudes is expected to decrease the
turnover intention of employees. Thus, a negative relationship between the job attitudes and
turnover intention is anticipated. The relationship between the job attitudes and turnover intention
are illustrated in Figure 3.
23
Figure 3: The negative relationship of job attitudes and turnover intention
To conclude, three categories namely organizational factors, HRM practices and job
attitudes were included to the study in order to gain a broad view of the organization. Between four
to six work-related factors that influence turnover intention were assigned to each category.
Employee perception of each factor is expected to have a negative relationship with turnover
intention. Accordingly, sixteen hypotheses (each consisting of one for the employees, one for
managerial employees and one for non-managerial employees of a Korean construction company)
were formulated. In order to conduct our analyses, turnover intention is defined as the dependent
variable and the 16 work-related factors as independent variables. In addition, the non-managerial
and managerial groups will be analyzed separately to examine differences between two groups.
Based on the above mentioned, the conceptual framework of the research and the Hypotheses are
formulated as below. The sixteen chosen work-related factors and their negative relationships to
turnover intention are illustrated in Figure 4.
24
Figure 4: The negative relationship of all work-related factors and turnover intention
25
3. RESEARCH DESIGN
In this chapter the research design of this study is presented, discussing the research strategy,
methods of data collection and analyses, as well as the issues concerning the data quality.
3.1 Research strategy
The purpose of this research is to examine whether perceived work-related factors affect
turnover intention in South Korean construction companies. In order to fulfil this aim, the study is
designed as quantitative research. One way to distinguish quantitative and qualitative research is to
differentiate between numeric data (e.g. numbers) and non-numeric data (e.g. words) (Saunders,
Lewis & Thornhill, 2012). Accordingly, quantitative research is commonly used as a synonym for
data analysis procedures (e.g. statistics) that generate and utilize numerical data or data collection
techniques such as questionnaires. Since this research is based on secondary data which is numeric
and in form of questionnaires, quantitative research is a suitable approach. However, the study also
contains some qualitative attributes because it is based on the perception and opinions of employees
(Saunders et al., 2012).
Quantitative research is usually associated with a deductive approach (Saunders et al., 2012).
This approach consists of building a hypothesis from existing theory that can be accepted or
rejected (Gronvius & Lernborg, 2009). The framework and hypotheses were in the previous chapter.
In the framework, employees’ turnover intention is utilized as dependent variable and perceived
work-related factors as independent variables. In addition, job level is used as a control variable to
examine differences between the non-managerial and managerial employees.
The case study strategy is employed to conduct the research. The case strategy allows us to
take a closer look at the organization analyzed. Hamel, Dufour and Fortin (1993, p. 34) emphasized
the descriptive nature of the case study method when they describe it as “the in-depth study of one
particular case”. However, this study does not intend to focus on a holistic reflection of the
researched organization. Instead, it explores the potential relationships between different variables
in the specific case of a South Korean construction company.
The researched company is a construction company which belongs to the top 10
conglomerates in South Korea (KFTC, 2016). As the data utilized for this study includes sensitive
information, the company required anonymity and is therefore not named. The group in which the
researched company is included consists of 69 companies to this day. Accordingly, the group’s
business area is significantly broad, from the energy to the retail sector as well as the construction
26
industry. Considering the financial outcome and the number of its employees, the company is of a
medium size compared to other companies in the group. However, all of them have similar HRM
policies and practices, so that employees can experience comparable working conditions and
benefits. As all of the 69 companies belonging to the group operate under similar circumstances, the
results of this study do not only reflect upon the situation of the researched company, but on the
situation of all companies in the group. Bloomberg reported that the sales volume of the Top 10
conglomerates in South Korea reached up to 84 percent of South Korea’s GDP (Gross domestic
product) in 2012 (The CEO daily, 2016). This not only influenced economics, but also significantly
affected South Korean society. The influence of the major conglomerates was even perceived as
being stronger than that of governmental organizations such as prosecutors and Constitutional
Courts (EAI, 2016).
According to the law in South Korea, the construction business is divided into two
categories, namely comprehensive construction and specialized construction (National Law
Information Center, 2016). The former refers to construction work, including exhaustive activities
such as planning, managing and controlling a project. More specifically, comprehensive
construction companies are in charge of the execution of entire projects. Specialized construction
indicates the construction work which involves a specific area of a construction project. Operators
of this category are usually specialists in the specific area such as electricity and piping. The
researched company has been operating their business in various specialized areas, which lets them
stand out compared to its competitors. Operators of specialized construction generally conduct their
business in only one or two specialized construction areas. However, the researched company has
been operating in multiple specialized construction areas such as communication infrastructure,
plant facilities, electric machinery, and information technologies for more than 40 years. It achieved
a sales’ volume of approximately 650,000,000 USD in 2014 and 423 employees were in the
company at the time the questionnaire was conducted. The company is specialized in a variety of
areas, maintaining a good reputation and a proving to be strong corporate brand. Nonetheless, it
experienced a fluctuation of employees towards comprehensive construction companies who
offered the employees more favorable conditions. In addition, as mentioned earlier, tacit knowledge
is crucial for the success of construction projects. If the company consistently loses employees with
core competency in construction fields, such as site managers and cost controllers, it will strongly
influence the outcome of the company. Further, it can negatively influence the company’s
reputation in the long term perspective. It might appear to be a bad place to work, if a lot of
employees quit their jobs. Under these circumstances, the turnover issue can be crucial for the
short-term and long-term success of the company. Thus, diagnosing the issues of this phenomena
and finding solutions are vital for the company.
27
3.2 Data collection
To achieve the aim of this study, standardized data needs to be collected measuring
employees’ turnover intention and their perception of work-related factors. Standardized data is
collected in a common format that enhances the comparison progress (IBM, 2014). As both the
employee perception towards work-related factors and their turnover intention are based on the
individual’s interpretation, the data can be categorized as opinion-based information. In addition,
factual information is required since the results are controlled for job levels.
Secondary data was utilized in this study. Data that has already been collected for another
purpose is referred to as secondary data (Saunders, 2012). This data can be further analyzed to
provide different or additional knowledge. The main advantages of using secondary data is that
resources, in particular money and time can be saved (Saunders, 2012). Additionally, it enables the
access to large amounts of data and coverage of a broad scope of individuals (Vartanian, 2010).
Using secondary data as a main source in this study offers the advantage to conduct the research in
a limited time period include a high number of variables, measured in numbers.
The data of the research is based on an anonymous questionnaire conducted by a South
Korean construction company. According to Saunders et al., (2012), a questionnaire is an
appropriate method to examine the relationship between different variables. Questionnaires are
essential instruments of data collection (Kratina, Zamfirescu, Trepanier, & Marques, 2015) as they
allow the collection of standardized data from a large amount of respondents, which is suitable for
statistical analysis (Denscombe, 2010). Furthermore, questionnaires are regarded as cost effective
and time efficient and they allow the collection of standardized data (Denscombe, 2010). Therefore,
the large amount of standardized data from the form of questionnaire is suitable to achieve the aim
and the objectives of this study. Due to the fact that one of the researchers had previously been
employed at the organization, the data from the questionnaires was provided, allowing authors to
conduct this research. Through the study, the company expects the authors to provide a new
perspective by conducting an in-depth analysis focusing on turnover. This kind of study is highly
appreciated, as it may enable the company to increase their competitiveness. According to Hinkin,
Holtom and Klag (2007), academic research that is conducted in cooperation with organizations that
actively participate with the researchers, will most probably result in meaningful outcomes. This is
based on the expectation that the involvement of the participating organization forms the foundation
of knowledge and trust that will facilitate the research (Baruch & Holtom, 2008). Therefore, it is
expected that the present research can have aforementioned positive effects since it is based on
cooperation with the researched organization which conducted the questionnaire.
28
3.3 Data description
The questionnaire was conducted from January to March in 2012 by the researched
company. Originally the questionnaire was designed and conducted to measure general satisfaction
of employees towards the company. It consisted of 18 categories, such as performance evaluation,
organizational culture and work process. Each category had between 4 to 21 questions assigned to
evaluate the employee satisfaction. In addition, questions were asked regarding overall satisfaction,
employees’ motivation, and turnover intention. Although the data represents the circumstance of the
company from four years ago, it is still considered as meaningful because no significant changes of
vision, mission, core values, policies and HRM practices in the company have taken place.
The questionnaire was posted on the company’s intranet, allowing all 423 employees to
access and answer it. The respondents were allowed to fill out the questionnaire during their
working time in order to increase the response rate. Additionally, all employees were asked via
email to fill out the questionnaire as soon as it was released. Periodically, team leaders and
managers were encouraged to inform their team members to fill out the questionnaire. Anonymity
was guaranteed in order to get honest and insightful feedback that employees might not be
comfortable mentioning otherwise (Wright, 2005). The only personal information collected was job
level (manager or non-manager) and age. The questionnaire did not include gender, as just 10 out of
the 423 employees are female employees. Questions were formulated in Korean which is the
corporate language in the participating organization.
The research population for this study is defined as all employees of the company at the time
the survey was conducted. The research can be referred to as total investigation, since the survey
was accessible to each of the 423 employees. Saunders et al. (2012) contended that it is an
advantage to collect data from the entire population. Among the entire population, 234 employees
(55%) were managers and 189 non-managers (45%). The questionnaire was filled out by 150
employees, which constitutes the response rate of 35.7%. However, as respondents’ personal
information was missing in 14 questionnaires, they were excluded from the research. The final
response rate was therefore adjusted to 32.3% (136 respondents). The distribution of the job level
was as following: 79 managers (58%), 57 non-managers (42%). This corresponds with the
distribution of the population and increases the reliability of the data.
The age of the total sample of respondents ranged from 28 to 53 years, with the mean of
39.96 years (standard deviation 6.28). Out of the total sample 57 respondents (41.91%) are
employed at a non-manager level. Their age ranges from 28 to 52 years, with the mean of 36.23
years (standard deviation 6.61). The other 79 respondents (58.09%) are employed at a manager
29
level. The managers’ age ranges from 33 to 53 years, with the mean of 42.65 years (standard
deviation 4.40). The samples’ job level distribution is in line with the distribution within the entire
organization in which 45% of the employees are employed at the non-manager level and 55% at the
manager level. With an average age of 42.65 years, employees at the manager level are
approximately six year older than employees at the non-manager level. The respondents’ age and
job level is represented in Table 1.
Obs Percent Age
Mean Std. Dev. Min. Max
Total sample 136 100 39.96 6.28 28 53
Non-manager 57 41.91 36.23 6.61 28 52
Manager 79 58.09 42.65 4.40 33 53
Table 1: Age and Job level
To measure the employee perception towards the 16 work-related factors, three questions
were extracted from the original questionnaire for each factor. Answers to the questions were given
on a five point Likert scale: (1) “strongly disagree”, (2) “disagree”, (3) “neither agree nor disagree”,
(4) “agree”, (5) “strongly agree”. The Likert scale, in which the respondent is asked how strongly
he/she agrees or disagrees with a comment or statement, is very common for rating questions
(Saunders et al., 2012). The turnover intention of employees was measured by the question “How
high is your intention to leave the company (in percentage)?”. As mentioned before, the intentions
to leave are related to the actual turnover and are regarded as its strongest predictor. Answers were
given on a five-point scale in percentage: (1) “0%”, (2) “25%”, (3) “50%”, (4) “75%”, (5) “100%”.
3.4 Data analysis methods
The analyses methods employed in this study are those of correlation and multiple
regression. A correlation analysis is suitable because it quantifies the strength of the linear
relationship between two numerical variables (Saunders et al., 2012). Through the analysis, the
relationship between turnover intention and each work-related factor will be examined. The results
of it will allow testing the hypotheses and achieving the first objective of this research. Within this
study, the relationship is defined according to the values of the correlation coefficient by Hair,
Black, Babin, Anderson and Tatham (2006), and ranges between perfect negative to perfect positive
(see Appendix 3). In order to determine the most influencing factors of turnover intention in two
30
different job levels, the study will employ the multiple regression analysis. The employees’
intention to leave the employer is selected the dependent variable and the perception regarding the
work-related factors are the independent variables. As the data was measured in a non-natural
metric (Likert scale), it is unclear whether a one-unit change is "large" or "small" according to the
scale (Menard, 2004). However, using a standardized coefficient instead of an unstandardized
ensures that the amount of change in the independent variable should be adequate to produce
significant change in the dependent variable (Menard, 2004). Furthermore, standardized coefficients
are beneficial when comparing the relative influence of different independent variables (Menard,
2004). Therefore, standardized coefficients are used in order to determine the most influencing
factors of turnover intention. The data from the questionnaires is inserted into Excel and the mean
of the answers for three questions, which are assigned to each independent variable, is calculated.
The value is regarded as the perception of each factor. The data is transferred to STATA in order to
conduct the analyses. In addition, descriptive statistics in the form of mean, standard deviation and
Cronbach’s alpha will be utilized to describe the distribution of the data (Denscombe, 2010).
3.5 Data quality, limitations and ethical considerations
The success of a questionnaire is evaluated in terms of the quality of the collected data, and
depends to a great extent on how well the questionnaire was designed (Gronvius & Lernborg, 2009).
In a well-designed questionnaire the content of the questions is clear. A pilot test was conducted in
the HR department of the company to ensure the validity of the questionnaire (Saunders et al.,
2012). Eight members in the department, who participated in the test, detected ambiguity as well as
minor errors, and thereby the content and clarity of the questions could be improved. Although the
original questionnaire contained more than 200 questions, 136 respondents fully answered all
questions and the overall response rate was relatively high (32.3%). Reasons for this might be that
the company conducted the questionnaire, encouraged their employees to fill it out during their
working time and made it easily accessible (Baruch & Holtom, 2008). The relatively high response
rate and completion of the questionnaire led to high quality data and validity of research. Validity
reflects the accuracy of the data that is the precision of the measurements (Denscombe, 2010). The
questions in the questionnaire are related to the formulated hypothesis. The indicators used to
measure the employees’ perception of each factor have concrete theoretical support and also relate
to the hypothesis. Thus, the purpose of this research is strongly linked to the hypothesis.
Additionally, the high response rate increases the possibility that data is evenly distributed and
reliable, reliability meaning consistency and stability of the results (Denscombe, 2010). A
Cronbach’s alpha of 0.9 and above indicates a high degree of internal consistency (Connelly, 2011).
31
As all 16 factors have a Cronbach’s alpha of 0.9 and above, the samples’ responses are internally
consistent. It is thus to be expected that the data can provide in-depth explanations regarding the
topic of this paper.
The following additional limitations in the research need to be acknowledged. First, this
study is based on a questionnaire that was developed and conducted by the researched organization.
Thus, no influence could be made on the design of the questionnaire. It could actually have been
useful to include additional questions. Second, the data from the questionnaire is self-reported and
therefore subjective. This implies the possibility of common method variance (Chen, Huang &
Hsiao, 2010). Conducting research within a single company as well as following the case study
strategy can influence the potential of generalizing the results (Saunders et al., 2012). As the
researched company represents a typical case, implications for practitioners and researchers can be
derived, even though the case study strategy allows no statistical generalization. Using data
collected within one organization allows for better control and could improve the validity of the
research (Fu, 2009). A large number of respondents from a single organization are likely to fully
represent a specific context (Gold & Arvind Malhotra, 2001). A study based on a small number of
respondents from multiple organizations might have the contrary result. Certain limitations might
also occur when using secondary data. The data variables might not be suitable for the research, the
quality of the data cannot really be controlled and the data may have been collected several years in
the past (Saunders, 2012). The data utilized for this research was originally collected to measure
employees’ general satisfaction within the organization. As the turnover intention was also part of
the research, a large proportion of the original questionnaire proved suitable for this study. Based on
previously mentioned reasons, such as the high response rate and the pilot test that was conducted,
the quality of the data is regarded as sufficient to reach the aim of this study. The fact that the data
was collected in 2012 could be regarded as a limitation; however no major differences should be
expected in a new collection of data. (Reason e.g. the situation of the employees has not changed
since 2012.)
As the results of the questionnaires include sensitive information regarding the researched
company and its employees, it is critical to assure these ethical considerations (Saunders et al.,
2012). The anonymity of respondents was guaranteed when the questionnaire was conducted by the
company. As requested by the firm, the name of the company is not revealed in this paper. In
addition, it is guaranteed that all information provided by the company is used for the purpose of
this study only, the authors being the sole persons dealing with it.
32
4. FINDINGS
In this chapter the findings of this study are presented, by describing the data and conducting
correlation and regression analyses.
4.1 General description
The turnover intention was measured on a scale from 1 to 5 (1=0%, 2=25%, 3=50%, 4=75%,
5=100%). Overall, the distribution of results for the turnover intention of the two job levels show
similar tendencies, especially when comparing the response for the scale of 50%, 75% and 100%.
The 25% scale was selected by the majority of both groups. Remarkably, no respondents chose the
scale 5 which represents a turnover intention of 100%. The biggest difference between the groups
was observed at the 0% scale. The proportion of managerial employees’ responses (24.05%) for this
scale was approximately 5% higher compared to that of non-managerial employees (19.30%).
Notably, the non-managerial level had an approximately 3% higher proportion of responses at the
25% scale of turnover intention. To sum up, 77.94% (N=106) out of the total sample considered the
possibility of turnover, whereas 22.06% respondents (N=30) did not intend to leave the company
Overall, it was observed that the proportion of non-managerial employees who had the intention to
leave the company is 4.75% higher than that of managerial employees. The turnover intention of the
respondents is represented in Table 2.
Turnover Intetion Total sample Non-manager Manager
Freq. Percent Freq. Percent Freq. Percent
0% 30 22.06 11 19.30 19 24.05
25% 69 50.74 30 52.63 39 49.37
50% 21 15.44 9 15.79 12 15.19
75% 16 11.76 7 12.28 9 11.39
100% - - - - - -
Total 136 100 57 100 79 100
Table 2: Turnover Intention
The mean represents the respondents’ perception of the factors. It represents the average
responses of three questions assigned to each factor. The higher the score, the higher the perception.
The results of the total sample indicate that the three factors with the highest rating are
33
organizational commitment (Mean = 3.98, SD = 0.55), organizational pride (Mean = 3.72, SD =
0.73) and job involvement (Mean = 3.71, SD = 0.42). The three factors that the non-managerial
employees rate the highest are organizational commitment (Mean = 3.82, SD = 0.59),
organizational pride (Mean = 3.58, SD = 0.72) and goals and direction (Mean = 3.50, SD = 0.51).
Managerial employees rate organizational commitment (Mean = 4.10, SD = 0.50), organizational
pride (Mean = 3.82, SD = 0.73) and goals and direction (Mean = 3.78, SD = 0.49) the highest. Both
job levels highly rate the same three factors, however when observing the results of the total sample,
it is noticed that job involvement is rated higher than goals and direction. However, the mean of
goals and direction (Mean = 3.66, SD = 0.51) was the fourth highest of the total sample. Thus, the
perception of both job levels and of the total sample all show the same tendencies. On the other
hand, in all groups, three HRM practices, namely performance appraisal, compensation and
promotion were perceived to be considerably low, as was communication. In other words,
employees of the company are not satisfied with some HRM practices such as performance
appraisal, compensation and promotion, as well as communication. These results are represented in
Table 3.
Table 3: Cronbach’s alpha, mean and SD for total, non-managerial and managerial employees
Work-related factors Alpha Total sample Non-manager Manager
Mean SD Mean SD Mean SD
Org.
factors
Goals and direction 0.90 3.66 0.51 3.50 0.51 3.78 0.49
Immediate leader 0.91 3.29 0.83 3.39 0.76 3.22 0.87
Communication 0.90 2.79 0.68 2.76 0.63 2.81 0.73
Company's reputation 0.90 3.26 0.69 3.09 0.74 3.38 0.66
Culture towards risk taking 0.90 3.21 0.49 3.15 0.53 3.25 0.44
Collaboration 0.90 3.44 0.53 3.30 0.51 3.54 0.52
HRM
practices
Performance appraisal 0.91 2.88 0.63 2.84 0.67 2.90 0.60
Compensation 0.91 2.80 0.67 2.68 0.65 2.89 0.68
Promotion 0.90 2.75 0.62 2.68 0.68 2.80 0.57
Hiring 0.91 3.32 0.08 3.30 0.08 3.22 0.07
Training and career development 0.91 3.57 0.64 3.46 0.66 3.64 0.62
Job design 0.90 3.33 0.57 3.21 0.50 3.41 0.60
Job
attitude
Organizational pride 0.90 3.72 0.73 3.58 0.72 3.82 0.73
Organizational commitment 0.90 3.98 0.55 3.82 0.58 4.10 0.50
Trust 0.90 3.34 0.61 3.29 0.58 3.39 0.56
Job involvement 0.91 3.71 0.42 3.29 0.67 3.74 0.43
34
4.2 Correlation analysis
Inter-correlations between the variables are presented in Appendix 5 (total sample),
Appendix 6 (non-manager) and Appendix 7 (manager). Negative correlations indicate that
employees with a higher perception of the factors tend to show less intention to leave the
organization than those with lower perceptions. Within the total sample, all factors are negatively
correlated to turnover intention with statistical significance (p ≤ 0.05), with the exception of hiring.
Even though hiring shows a negative coefficient, it is not statistically significant. Thus, 15 out of 16
work-related factors, among the total sample, were proved to have a negative correlation to turnover
intention. These results therefore provide support for hypothesis 1a, 2a, 3a, 4a, 5a, 6a, 7a, 8a, 9a,
11a, 12a, 13a, 14a, 15a and 16a. Differences were observed within the non-manager analysis. Here,
hiring, as well as training and career development have no statistically relevant correlation to
turnover intention. Thus, 14 out of 16 work-related factors among the non-manager sample proved
to have a negative correlation to turnover intention. Therefore, hypothesis 1b, 2b, 3b, 4b, 5b, 6b, 7b,
8b, 9b, 12b, 13b, 14b, 15b and 16b can be supported. Within the managerial employees all factors
are negatively correlated to turnover intention. However, the factors goals and direction,
performance appraisal, compensation, hiring, training and career development have no significant
correlation. Thus, 11 out of 16 work-related factors have a negative correlation to turnover intention
and the hypothesis 2c, 3c, 4c, 5c, 6c, 9c, 12c, 13c, 14c, 15c and 16c can be supported. As illustrated
in table 4, among the manager group the fewest factors proved to be negatively correlated to
turnover intention.
Within the total sample the largest correlations with turnover intention emerged for
communication (-0.55), company’s reputation (-0.53) and organizational pride (-0.50). The largest
correlations with turnover within the analysis of non-managerial employees were company’s
reputation (-0.75), organizational pride (-0.72) and goals and direction (-0.58). Lastly, the analysis
of the managerial employees’ results indicate that the largest correlations with turnover intention
were communication (-0.54), immediate leader (-0.50) and job design (-0.48). Thus, differences
among the results can be observed. Apart from the two results of the non-managerial employees
concerning company’s reputation (-0.75) and organizational pride (-0.72), which are strongly
negatively correlated to turnover intention, the other mentioned factors have a moderate negative
correlation (see Appendix 3).
35
Work-related factors Total sample
(a) Non-manager
(b) Manager
(c)
Organizational
factors
H1 Goals and direction X
H2 Immediate leader
H3 Communication
H4 Company's reputation
H5 Culture towards risk taking
H6 Collaboration
HRM
practices
H7 Performance appraisal X
H8 Compensation X
H9 Promotion
H10 Hiring X X X
H11 Training and career development X X
H12 Job design
Job attitudes
H13 Organizational pride
H14 Organizational commitment
H15 Trust
H16 Job involvement
Table 4: Negative relationships of work-related factors ( = supported; X = not supported)
4.3 Multiple regression analysis
The inter-correlations between the independent variables ranged from +0.03 to +0.72 (total
sample), -0.06 to +0.78 (non-managerial level) and -0.03 to +0.67 (managerial level). Strong inter-
correlations indicate multicollinearity among the independent variables (Asher, 1983). The results
of multicollinearity can be that the coefficient estimates are less reliable and more difficult to
interpret (Alin, 2010). Further, the statistical power of the analysis can be reduced and the
coefficients can switch signs, making it more difficult to specify the correct model (Basics of best
subsets regression, 2016). Multicollinearity can be detected if the Pearson correlation coefficient
exceeds 0.7 (Collis & Hussey, 2009). If the absolute value of Pearson correlation is 0.7±0.1,
multicollinearity is likely to exist (Lin, 2007). As shown in the correlation analysis tables
(Appendix 5, 6, 7), various independent variables are strongly correlated with the Pearson
correlation coefficient exceeding 0.6 or 0.7. Thus, the existence of multicollinearity is assumed.
Another, approach to measure multicollinearity, is to analyze the variance inflation factor (VIF) of
the independent factors (Cranley & Surles, 2002). The results of this analysis are provided in Table
5. The VIF varies from 1.09 to 3.34 (total sample), 1.66 to 5.46 (non-manager) and 1.11 to 3.38
36
(manager). According to the literature, there is no agreement on a formal criterion for VIF cutoff
values. Suggestions in literature are 3.33 (Diamantopoulos & Siguaw, 2006) and 5 or 10 (Craney &
Surles, 2002). This research employed the lowest criteria among them, namely 3.33, since
significant correlations among independent variables were observed by the conduction the
correlation analyses above. Accordingly, as all three analyzed groups show at least one VIF value
exceeding 3.33, multicollinearity problems need to be solved in order to reduce its negative effects.
VIF
Variable Total sample Non-manager Manager
Goals and direction 2.63 3.40 2.27
Immediate leader 1.71 1.66 2.13
Communication 2.42 2.89 2.61
Company's reputation 2.82 4.63 2.64
Culture towards risk taking 2.61 3.86 2.35
Collaboration 1.83 2.22 2.06
Performance appraisal 1.75 2.65 1.72
Compensation 1.59 1.70 1.86
Promotion 2.32 2.91 2.50
Hiring 1.09 1.29 1.11
Training and career development 1.55 2.01 1.91
Job design 2.49 2.13 3.25
Organizational pride 3.34 5.46 3.38
Organizational commitment 2.63 3.88 2.28
Trust 2.73 4.52 2.59
Job involvement 2.18 2.22 2.88
Table 5: VIF (variance inflation factor)
In order to reduce these negative effects, best subsets regression is conducted. This is an
analysis that identifies the best suited regression models by selecting the smallest subsets that fulfill
certain statistical criteria (King, 2003). The benefit of using a subset of variables instead of a
complete set is that the subset model could actually estimate the regression coefficients with smaller
variance than the full model using all predictors (Basics of best subsets regression, 2016). The
results of the best subset regression are provided in Table 6. The adjusted R-squared shows a range
from 0.30 to 0.44 and the Bayesian information criterion (BIC) from 302.99 to 350.75. The BIC is a
criterion for model selection among a finite set of models (Niezrecki, 2015). The BIC can be useful
37
to assess model selection uncertainty and to evaluate parameter importance (Anderson & Burnham,
2002). When choosing from several models, the one with the lowest BIC is preferred (Niezrecki,
2015).
Numbers of
factors
Total sample Non manager Manager
Adj R2
BIC Adj R2 BIC Adj R
2 BIC
1 0.30 319.01 0.55 110.17 0.29 190.26
2 0.38 306.87 0.59 108.05 0.33 188.21
3 0.41 302.99 0.63 105.27 0.35 190.25
4 0.43 303.61 0.64 105.97 0.37 191.10
5 0.43 306.32 0.65 107.26 0.38 193.10
6 0.43 309.44 0.66 109.04 0.39 194.65
7 0.44 312.32 0.67 111.04 0.40 196.86
8 0.44 315.47 0.67 113.64 0.40 200.07
9 0.44 319.01 0.67 116.47 0.39 204.21
10 0.44 323.10 0.67 119.17 0.38 208.45
11 0.44 327.56 0.66 122.72 0.37 212.71
12 0.44 331.86 0.66 126.10 0.37 216.95
13 0.43 336.32 0.65 130.09 0.36 221.26
14 0.43 340.94 0.64 134.12 0.35 225.56
15 0.42 345.84 0.64 138.14 0.34 229.88
16 0.42 350.75 0.63 142.18 0.33 234.21
Table 6: Best subset regression
Accordingly, for the total sample the third model, that contained the three factors immediate
leader, organizational pride and communication was chosen for the most suitable regression model
for our analysis. The results of this analysis are provided in Table 7. The variance explained by the
regression model was 41% (Adj R-squared). This result shows no significant differences compared
to the Adj R-squared (42%) of the regression model including all 16 factors (see Table 6). Even
though the factors included into the regression were reduced from 16 to 3, this model has almost the
same explanatory power and reduced multicollinearity. The three variables significantly predicted
turnover intention of employees (p-value ≤ 0.05). Based on the beta score of the model,
organizational pride (-0.339) is the most influencing factor of turnover intention. The second one is
immediate leader (-0.265), followed by communication (-0.258). In order to confirm reduced
multicollinearity of this regression, VIF values are recomputed and provided in the Table. The
38
highest detected value VIF is 1.73 which is lower than the adopted VIF cutoff value. Notably,
higher turnover intentions were predicted with negative perceptions of immediate leader,
organizational pride and communication, and vice versa.
Table 7: Multiple regression of total sample
For the non-manager sample, according to Table 6, the third model which contained the
three factors immediate leader, organizational pride and company’s reputation was chosen for our
analysis. The results of this analysis are provided in Table 8. The variance explained by the
regression model was 63% (Adj R-squared). This result shows no differences compared to the Adj
R-squared (63%) of the regression model including all 16 factors (see Table 6). The three variables
significantly predicted turnover intention of non-managerial employees (p-value ≤ 0.05). With a
beta score of -0.431, company's reputation was the most influencing factor of turnover intention,
followed by organizational pride (beta score = -0.357) and immediate leader (beta score = -0.215).
The highest detected VIF value is 1.76 which is lower than the adopted VIF cutoff value. Hence,
low perceptions of company’s reputation, organizational pride and immediate leaders are strongly
associated with higher turnover intention of the employees.
Number of obs = 136
R-squared = 0.42
Adj R-squared = 0.41
Turnover Intention Coef. Std. Err. T P> |t| Beta VIF
Immediate leader -0.290 0.084 -3.46 0.001 -0.265 1.34
Organizational pride -0.423 0.095 -4.45 0.000 -0.339 1.34
Communication -0.342 0.115 -2.97 0.004 -0.258 1.73
_cons 5.651 0.372 15.18 0.000
39
Table 8: Multiple regression of non-managerial employees
For the manager sample, according to Table 6, the most suitable regression model for our
analysis contained the two factors communication and immediate leader. The results of this analysis
are presented in Table 9. The variance explained by the regression model was 33% (Adj R-squared),
which is similar to the Adj R-squared (33%) of the regression model including all 16 factors (see
Table 6). The two variables significantly predicted turnover intention of managerial employees (p-
value ≤ 0.05). With a beta score of -0.381, communication is the most influencing factor of
turnover intention, followed by immediate leader (beta score = -0.286). Both VIF values are 1.49
which is lower than the adopted VIF cutoff value. Thus, low perceptions of communication and
immediate leader are strongly associated with higher turnover intention of the employees.
Table 9: Multiple regression of managerial employees
Number of obs = 79
R-squared = 0.35
Adj R-squared = 0.33
Turnover Intention Coef. Std. Err. t P> |t| Beta VIF
Immediate leader -0.254 0.098 -2.60 0.012 -0.215 1.15
Organizational pride -0.449 0.164 -2.74 0.008 -0.357 1.58
Company's reputation -0.522 0.159 -3.27 0.002 -0.431 1.76
_cons 6.293 0.472 13.34 0.000
Number of obs = 57
R-squared = 0.65
Adj R-squared = 0.63
Turnover Intention Coef. Std. Err. T P> |t| Beta VIF
Communication -0.481 0.142 -3.38 0.001 -0.381 1.49
Immediate leader -0.301 0.119 -2.54 0.013 -0.286 1.49
_cons 4.459 0.371 12.02 0.000
40
The comparison of the results (Table 10) shows that immediate leaders are included in all
three analyses. Organizational pride is the most influencing factor in the total sample. However, it
is ranked second in the non-manager sample. It is not included in the model for the manager sample.
Company's reputation is only included in the non-managerial employees’ model. Communication
can be found in the results of the managerial employees and in those of the total sample. Therefore,
the result provides evidence to support previous study’s findings mentioned in the literature review
chapter, namely that there are differences in the most influencing factors of turnover intention
among job levels. Furthermore, in relation to the beta value, the factor which has the higher
absolute value has stronger influence. For instance, among the managerial employees in the
company, communication is 1.33 times (0.381/ 0.286) strongly influence to turnover intention.
Total sample Non-manager Manager
Factors Beta Factors Beta Factors Beta
Organizational pride -0.339 Company’s reputation -0.431 Communication -0.381
Immediate leader -0.265 Organizational pride -0.357 Immediate leader -0.286
Communication -0.258 Immediate leader -0.215
Table 10: Standardized coefficients (beta scores) of the most influencing factors
41
5. DISCUSSION & PRACTICAL IMPLICATIONS
This study contributes to the expanding literature on employee turnover intention by
developing and testing an extensive framework among a sample of 136 employees in the South
Korean construction industry. The above mentioned findings make it necessary to reflect upon the
following five aspects. To start off with, most of the work-related factors (total sample = 15, non-
manager = 14, manager = 11) are negatively related to turnover intention, with statistical
significance (p ≤ 0.05). As all statistically relevant factors have a negative correlation to turnover
intention, these findings are in line with the literature and the expectations that a low perception of
these factors increases employee turnover intention. However, as some factors showed no statistical
significance, this study cannot verify the relationship between these factors and turnover intention.
Overall, these results meet the expectations and verify most of the hypotheses which were based on
the social exchange theory. The positive perception of the work-related factors, in other words, the
positive perception of a social exchange relationship between employees and their employers leads
to a lower turnover intention.
Secondly, according to the correlation analysis, the factors that show no statistical
significant correlation to turnover intention belong to HRM practices, except for goals and
directions. As indicated by overall low correlations, the company’s HRM policies and practices did
not substantially influence turnover intention. In addition, no HRM practice was determined as the
most influencing factor of turnover intention. Employees might consider HRM practices as
subordinate components of the company. Although they had a relatively low perception of HRM
practices, especially performance appraisal, compensation and promotion, it did not seem to
increase their turnover intention. As indicated in the literature (Benson & Rowley, 2003; Kim et al.,
2013), unique cultural characteristics of South Korea may restrain the convergence of HRM
practices and result in the incomplete integration of HRM practices in the company. This can be one
of the reasons which caused the result. While the employees have a relatively low perception of
HRM practices, they have a comparably high perception of organizational pride and organizational
commitment. As shown in Table 3, organizational pride and organizational commitment, which are
both related to loyalty, had the highest means among all three sample groups. For example,
employees showed a high perception for the statements: “I am proud of my company’s name.”
(Organizational pride), “I feel a sense of responsibility for the company's future.” (Organizational
commitment). Organizational pride in particular was one the most influencing factors of turnover
intention among the total and non-managerial employees. The employees tend to identify
themselves strongly with the company and feel proud to work for it. A strong loyalty among South
42
Korean employees, compared to western employees, is widely acknowledged in literature, and can
influence the results (Kirk, 1994; Ungson, Steers & Park, 1997; Franke, 2000). In addition, people
in a collectivist culture which encourages strong bonds among social members (Hui & Triandis,
1986), tend to highly consider each other’s opinions and views (Park & Jun, 2002). Since South
Korea is regarded as one of the countries which have collectivist culture (Park & Jun, 2002), this
can be the reason why company’s reputation belongs to the most influencing factors of turnover
intention in the company. These results might be related to the fact that the researched company is
part of a well-known business conglomerate in South Korea. As stated earlier, business
conglomerates in South Korea have long influenced the society. The strong influence and awareness
of the company brand might make the employees sense loyalty and identify themselves with the
company even though they are not satisfied with other factors (e.g. HR practices) to an extent.
Thirdly, this research revealed that the work-related factors which influence turnover
intention the most differ among job levels. This is in line with the findings of the previous study by
Hauknecht et al. (2009), namely that there are differences in the most influencing factors of
turnover intention among job levels. However, in a certain aspect, the results were not in line with
this study. Hauknecht et al. (2009) explained the differences among job levels based on a
psychological contract. Employees in lower positions tended to stay because of transactional
reasons, such as compensation and flexible working hours. Those in higher positions tended to be
more concerned about the relational reasons, such as organizational commitment and pride. In the
present study, it was observed that the most influencing factors of both levels (non-manager and
manager) are organizational pride, immediate leader, communication and company’s reputation. All
of these are closely associated with relational reasons, not transactional reasons. It can be assumed
that the Asian cultural context affected these results. As mentioned earlier in this paper, the
employment in South Korea used to be based on close and trustful relationships between the
employees and the employer, as well as long-lasting employment. Even though companies have
adopted western HRM practices and experienced significant changes in its labor market since 1997,
it can be pointed out that relationship between employees and employers remains a crucial factor.
Thus, it can be assumed that this contextual background led to the findings that there are no
differences regarding psychological contracts among the two different job levels.
Fourth, immediate leader was one of the most influencing factors in all three sample groups.
The importance of immediate leaders has been indicated in a number of previous studies (Liden,
Bauer & Erdogan, 2004; Truss, 2001). They are generally associated with the role of an interpreter
of policies and representative of an organization (Boxall & Purcell, 2011). Furthermore, employees’
perceptions of the company’s culture and its practices can be significantly influenced by their
43
immediate leaders (Boxall & Purcell, 2011). It can thus be assumed that these important roles of
immediate leaders influence the result, namely that the employees of both job levels indicated that
their leaders are one of the most influencing factors of turnover intention. Furthermore, in the South
Korean context, the relationship with immediate leaders has more meaning than in the Western
context. For South Korean employees, good relationships with their immediate leaders are a critical
criterion of career success (Yoon & Lim, 1999). It can be the reason that immediate leaders were
determined as the most influencing factors in all three samples in the company.
Lastly, the results of the total and of the managers’ sample indicate the importance of
communication in terms of turnover behavior. As shown in Table 3, communication is the second
lowest factor in all three sample groups. It indicated the employees are poorly satisfied with
organizational communication in the company. This finding is in line with a recent report by the
Korea Chamber of Commerce and Industry (KCCI) and McKinsey (2016). It was revealed that
South Korean companies, compared to other global companies, have an underdeveloped
organizational communication. The report indicated that problems such as inefficient meetings, too
frequent reporting and one-way work order from top to bottom resulted in chronic overtime work. It
can thus be implied that inefficient and ineffective communication can be a major obstacle in
retaining employees, not only in this particular company, but in any other in South Korea.
The following practical implications can be drawn from the results. Firstly, managers need
to tailor possible retention strategies to each group of employees. This is based on the fact that the
factors affecting turnover intention can differ among job levels. By listening to and understanding
the voices of employees from different job levels, managers are able to design adjusted retention
strategies for each groups. Not only does this help increasing employees’ overall satisfaction, but
also retaining employees. Secondly, organizations can allocate resources effectively by considering
the beta values of the influencing factors of turnover intention. For example, the company can
manage the turnover intention of managerial employees 1.33 times more effectively by controlling
communication (0.381) than by controlling immediate leaders (0.286) as long as the costs of
allocated resources are same. Thirdly, international companies that operate their business in foreign
culture contexts should be aware of cultural differences since they can influence turnover intention.
The most influencing factors are expected to differ according to the cultural context a company
operates in. Especially, international companies operating in South Korea should consider the
importance of relational factors, instead of relying solely on HRM practices to reduce turnover.
Next, organizations need to support the immediate leaders in accomplishing their crucial roles
successfully. This is especially important, because the leaders can influence the perception of
employees directly, while delivering companies’ strategies and policies (Boxall & Purcell, 2011;
44
Liden et al., 2004). Relationships with their immediate leaders can be a major criterion for career
success in South Korea (Yoon & Lim, 1999). Lastly, companies could analyze their communication
procedures and policies in order to restructure them to allow efficient work. Thus, by supporting
immediate leaders and by enhancing effective communication, employee turnover might be reduced,
and competitive advantages maintained.
45
6. CONCLUSION
Although turnover studies have been conducted for several decades, the fact that the loss of
employees causes relevant costs and can lead to the loss of competitive advantages stresses the
importance of studying the subject. Based on the problem that turnover studies have not been
conducted in the South Korean construction sector, this study intends to shed light on this field. In
order to do this, a framework was created that allowed the analysis of the perception of employees
towards work-related factors. Through conducting this analysis, the relationship between these
factors and turnover intention was evaluated. Most of the work-related factors are negatively related
to turnover intention with statistical significance. Thus, most of the Hypotheses were accepted.
Additionally, the first objective, namely to examine the relationship between work-related factors
and turnover intention among job levels has been fulfilled. However, as the factors are highly
correlated to each other, suitable models that explain the case appropriately with reduced
multicollinearity had to be created. The findings of the analysis indicate that the most influencing
factors of turnover intention differ between the job levels. The non-managers’ turnover intention is
significantly influenced by the factors company’s reputation, organizational pride and immediate
leader. On the other hand, the most influencing factors for the managers are communication and
immediate leader. The reason that immediate leader was included in both job levels could be related
to the important roles of the leaders in the organization. As the most influencing work-related
factors among job levels have been determined, the second objective was achieved. By fulfilling the
objectives, the aim of this research ‘how perceived work-related factors affect turnover intention in
South Korean construction companies’ is accomplished. Although different factors were determined
between the job levels, all the determined factors can be associated with relationship rather than
transactional issues. Overall, HRM practices were not among the most influencing factors against
the expectations based on previous western turnover studies. Surprisingly, a large amount of
turnover studies solely include HRM practices as influencing factors of turnover intention. This
might be appropriate in the western context, where HRM practices such as compensation and
promotion are regarded as more crucial.
This study can contribute the following theoretical implications. To begin with, when
conducting similar research, it is recommended to include a wide range of factors. This allows the
narrowing down of factors during the analyzing process and thus increases the probability of
determining all relevant factors. The results of this study support the use of an extensive framework,
as the most influencing factors can be assigned to the categories organizational factors and job
attitudes rather than in HRM practices. If this research had only included HRM practices, the
present findings could not have been revealed. This shows the importance of including factors from
46
a range of categories. Secondly, in order to examine whether perceived work-related factors affect
employee turnover intention, the research design of this study can be replicated.
By using the framework, future researchers can reveal the relationships between work-
related factors and turnover intention, and also identify the most influencing factors. Furthermore, a
suitable regression model can be found to explain the turnover intention of employees. Lastly, this
study shed light on the turnover subject in the South Korean context. It revealed that relational
factors play a crucial role in reducing turnover intention even though western HRM practices have
been adopted by various South Korean companies. In addition, as only few studies in construction
industry on turnover intention exist, this study enriches the literature by providing empirical and
meaningful outcomes.
Based on the limitations of this study, the following recommendations for future research
are presented. First, this study focuses on differences among the job levels; manager and non-
manager. Future studies should include a higher variety of job levels or groups of employees to
identify further differences regarding turnover intention. Second, a limitation was the fact that the
present study was conducted in only one construction organization located in South Korea. To
validate the findings of this study and increase the credibility of any conclusions drawn from it,
research in different countries, industries, and a number of organizations is required. Third, this
study is based on secondary data in the form of questionnaires that were developed and conducted
by the researched organization. The limitation of not being able to actively participate in the design
of the questionnaires should be avoided when conducting future research. This will allow the
inclusion of an increased number of turnover influencers and questions measuring the perception of
employees towards them. Upcoming studies could, for example, include turnover influencers
beyond work-related factors. Lastly, as the questionnaire was conducted in the year 2012, future
researchers are recommended to conduct further studies of turnover intention in South Korea, to
validate the results of this study and reflect upon the present situation.
Human resources are the core of each company. Reducing turnover is an obvious aim and is
necessary to remain competitive. In each company, it is crucial to achieve the highest possible level
of job satisfaction among the employees. Through the results of this research, one important step
towards these goals has been taken.
47
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62
Appendix
Appendix 1: Voluntary turnover rates in Korean Industries
Industry 2011 2012 2013 2014 2015 Average
(‘11-’15)
Total 2,2 2,1 2,1 2,3 2,1 2,1
Mining and quarrying 2,1 1,4 1,5 1,7 1,8 1,7
Manufacturing 2,2 1,9 1,9 2,1 2,0 2,0
Electricity gas steam and water supply 0,3 0,2 0,3 0,2 0,1 0,2
Sewerage waste management materials recovery
and remediation activities 1,6 1,4 1,6 1,5 1,4 1,5
Construction 3,5 4,2 3,8 3,8 2,6 3,6
Wholesale and retail trade 2,4 2,0 2,2 2,4 2,2 2,2
Transportation 1,7 1,6 1,5 1,6 1,6 1,6
Accommodation and food service activities 5,2 5,2 4,6 5,5 5,4 5,2
Information and communications 1,6 1,6 1,5 1,7 1,7 1,6
Financial and insurance activities 0,5 0,5 0,5 0,5 0,4 0,5
Real estate activities and renting and leasing 2,0 1,3 1,3 1,5 1,6 1,5
Professional scientific and technical activities 1,7 1,5 1,6 1,5 1,5 1,5
Business facilities management and business
support services 3,5 3,5 3,8 4,1 3,9 3,8
Public administration and defense; compulsory
social security 0,5 0,4 0,4 0,4 0,3 0,4
Education 1,0 0,8 0,9 0,9 0,8 0,9
Human health and social work activities 2,2 1,9 1,9 2,0 2,1 2,0
Arts sports and recreation related services 2,6 2,8 2,7 2,8 2,5 2,7
Membership organizations repair and other
personal services 1,9 1,9 2,1 3,0 2,4 2,3
Appendix 1: Voluntary turnover-rates of Korean industries (Monthly Labor Statistics Survey 2016)
63
Appendix 2: Overview of work-related factors included in previous studies
Categories Article
● Organizational factors ● Galit (2013)
● Griffin, Hogan & Lambert (2013)
● Korsakienė et al. (2014)
● HRM practices
● Abubakar et al. (2014)
● Chan and Kuok (2011)
● Cheng & Waldenberger (2013)
● Haider et al. (2015)
● Judhi et al. (2013)
● Long et al. (2012)
● Nawaz & Pangil (2016)
● Watty-Benjamin & Udechukwu (2014)
● Job attitudes ● Javed et al. (2014)
● A'yuninnisa & Saptoto (2015)
● Lambert, Griffin, Hogan & Kelley (2014)
Appendix 2: Categories included to turnover-studies
Appendix 3: The values of the correlation coefficient
Appendix 3: The values of the correlation coefficient (Hair et al. 2006)
64
Appendix 4: Questions for measuring the employee perception of work-related factors
1. Organizational factors
Factors Question
Goals & direction
Q1: I fully understand the company's vision and business goals.
Q2: The missions and goals of our department are clearly established.
Q3: My goals are closely linked to the goals of the team and the company.
Immediate leader
Q4: My immediate leader is evaluating performance fair and rationally.
Q5: My immediate leader is listening to team members’ voice and reflects opinions into
decision making.
Q6: My immediate leader is acting and behaving consistently and not biased.
Communication
Q7: Top to bottom communication is efficient.
Q8: Bottom to top communication is efficient.
Q9: Communication between teams and departments is efficient.
Company’s reputation
Q10: Our company has competitive advantages compared to its competitors.
Q11: Our company proactively responds to changing conditions in the business
environment.
Q12: Our company is known as a good work place.
Culture towards
change & risk taking
Q13: I recognize myself as an initiator of change.
Q14: Decentralized decision making is implemented through empowerment.
Q15: Our company appropriately rewards me when risk are taking during work and the
job is completed successfully.
Collaboration
Q16: Collaboration between team members is efficiently implemented.
Q17: Efficient collaboration with other departments and divisions is in place.
Q18: Information & ideas are easy to share within the organization.
65
2. HRM practices
Practices Question
Performance appraisal
Q19: The performance appraisal in this company is easy to understand.
Q20: The performance appraisal is well designed to reflect individual’s performance.
Q21: The outcome of the performance appraisals is clearly linked to compensation.
Compensation
Q22: My current compensation in relation to my work performance is satisfying.
Q23: My current compensation is appropriate compared with the labor market and the
living costs.
Q24: My compensation rate is adjusted corresponding based on changes in the labor
market and living costs.
Promotion
Q25: Promotion is implemented based on high competencies and performance.
Q26: The criteria for promotion are transparent.
Q27: Appropriate feedback is provided to the employees who were not promoted.
Hiring
Q28: Suitable skilled employees are hired for the right positions.
Q29: Our company has appropriate standards and procedures in order to hire qualified
employees.
Q30: The hiring interviews are appropriate to screen for qualified employees.
Training & Career
development
Q31: Our company provides sufficient opportunities for job related education.
Q32: Our company supports obtaining professional certificates.
Q33: My career develops naturally by doing my job.
Job design
Q34: A considerable degree of independence and discretion is guaranteed during my
work.
Q35: The work of our team is properly distributed to individuals.
Q36: I find my job interesting and meaningful.
66
3. Job attitudes
Factors Question
Organizational pride
Q37: I am proud of my company’s name.
Q38: I'm proud to work in my company.
Q39: I speak highly about the company to friends and family
Organizational
commitment
Q40: I feel a sense of responsibility for the company's future.
Q41: The company's success makes me happy. Bad news let me feel sorry.
Q42: Provided the conditions are the same, I would stay in this company even though I
could move to another employer.
Trust
Q43: I highly trust in decision making and improvement efforts of the management.
Q44: A highly level of trust exists between managerial and non-managerial employees.
Q45: A highly level of trust exists between colleagues.
Job involvement
Q46: I am always giving my best for my work.
Q47: I voluntary and ambiguously fulfill all tasks.
Q48: I have a high willingness of taking additional work for the company’s
development.
67
Appendix 5: Correlation (total sample)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10
)(1
1)
(12
)(1
3)
(14
)(1
5)
(16
)(1
7)
(1)
Tur
nove
r In
tent
ion
1.0
0
(2)
Go
als
and
direc
tion
-0.3
6*
1.0
0
(3)
Imm
edia
te le
ader
-0.4
3*
0.2
5*
1.0
0
(4)
Co
mm
unic
atio
n-0
.55*
0.5
2*
0.4
9*
1.0
0
(5)
Co
mp
any'
s re
put
atio
n-0
.53*
0.5
7*
0.2
5*
0.5
3*
1.0
0
(6)
Cul
ture
to
war
ds
risk
tak
ing
-0.4
6*
0.5
3*
0.3
3*
0.6
3*
0.5
4*
1.0
0
(7)
Co
llab
ora
tion
-0.3
7*
0.5
6*
0.2
6*
0.4
2*
0.4
1*
0.4
9*
1.0
0
(8)
Per
form
ance
ap
pra
isal
-0.2
3*
0.3
7*
0.1
9*
0.3
6*
0.3
2*
0.5
0*
0.3
3*
1.0
0
(9)
Co
mp
ensa
tion
-0.2
3*
0.3
3*
0.1
30.3
0*
0.3
5*
0.3
7*
0.3
1*
0.4
3*
1.0
0
(10
) P
rom
otio
n-0
.31*
0.5
0*
0.2
0*
0.4
9*
0.5
3*
0.5
8*
0.3
1*
0.5
0*
0.5
3*
1.0
0
(11
) H
irin
g-0
.04
0.1
8*
0.1
00.1
10.1
40.1
60.0
90.0
70.0
30.0
61.0
0
(12
) T
rain
ing
and
car
eer
dev
elo
pm
ent
-0.1
8*
0.4
4*
0.1
60.3
4*
0.3
6*
0.3
5*
0.4
4*
0.4
3*
0.3
2*
0.2
9*
0.0
81.0
0
(13
) Jo
b d
esig
n-0
.46*
0.5
5*
0.4
9*
0.5
5*
0.5
4*
0.4
5*
0.5
2*
0.3
8*
0.3
1*
0.3
9*
0.1
8*
0.4
5*
1.0
0
(14
) O
rgan
izat
iona
l prid
e-0
.50*
0.5
9*
0.1
20.4
8*
0.6
9*
0.4
6*
0.4
3*
0.2
8*
0.3
2*
0.5
3*
0.1
00.3
7*
0.4
9*
1.0
0
(15
) O
rgan
izat
iona
l co
mm
itmen
t-0
.42*
0.6
0*
0.1
10.3
9*
0.6
1*
0.4
3*
0.4
1*
0.2
9*
0.2
0*
0.3
7*
0.1
8*
0.3
7*
0.4
9*
0.7
2*
1.0
0
(16
) T
rust
-0.4
7*
0.5
9*
0.3
8*
0.6
2*
0.6
7*
0.6
2*
0.4
6*
0.3
9*
0.3
8*
0.5
2*
0.1
9*
0.3
6*
0.4
5*
0.5
5*
0.5
2*
1.0
0
(17
) Jo
b in
volv
emen
t-0
.36*
0.5
9*
0.4
0*
0.5
3*
0.4
2*
0.5
2*
0.4
0*
0.2
1*
0.1
60.3
7*
0.0
80.3
5*
0.5
2*
0.5
2*
0.4
1*
0.5
0*
1.0
0
68
Appendix 6: Correlation (non-manager)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(1)
Tur
nove
r In
tent
ion
1.0
0
(2)
Goal
s an
d d
irec
tion
-0.5
8*
1.0
0
(3)
Imm
edia
te le
ader
-0.3
3*
0.2
11.0
0
(4)
Com
mun
icat
ion
-0.5
6*
0.6
0*
0.3
5*
1.0
0
(5)
Com
pan
y's
reput
atio
n-0
.75*
0.6
6*
0.1
80.6
7*
1.0
0
(6)
Cul
ture
tow
ards
risk
tak
ing
-0.4
6*
0.5
4*
0.2
10.6
9*
0.6
3*
1.0
0
(7)
Colla
bora
tion
-0.4
6*
0.5
0*
0.1
30.3
7*
0.4
5*
0.5
2*
1.0
0
(8)
Per
form
ance
appra
isal
-0.3
1*
0.4
1*
0.1
70.5
1*
0.4
6*
0.6
2*
0.4
0*
1.0
0
(9)
Com
pen
satio
n-0
.27*
0.2
40.0
90.2
10.2
40.2
9*
0.2
7*
0.4
8*
1.0
0
(10)
Pro
motio
n-0
.39*
0.5
2*
0.1
70.5
7*
0.5
8*
0.6
1*
0.1
90.4
8*
0.4
4*
1.0
0
(11)
Hirin
g0.0
20.2
10.1
50.1
00.1
10.1
80.1
20.1
7-0
.00
0.0
51.0
0
(12)
Tra
inin
g an
d c
aree
r dev
elopm
ent
-0.2
10.4
0*
0.1
00.2
00.2
8*
0.1
80.4
0*
0.5
2*
0.4
0*
0.2
10.0
11.0
0
(13)
Job d
esig
n-0
.45*
0.5
5*
0.4
3*
0.4
0*
0.5
2*
0.4
1*
0.3
2*
0.3
8*
0.1
60.3
5*
0.3
1*
0.3
6*
1.0
0
(14)
Org
aniz
atio
nal p
ride
-0.7
2*
0.6
0*
0.1
10.5
1*
0.7
8*
0.4
1*
0.3
2*
0.2
10.0
90.4
9*
0.0
50.1
70.4
1*
1.0
0
(15)
Org
aniz
atio
nal c
om
mitm
ent
-0.5
7*
0.6
5*
0.0
40.4
7*
0.6
6*
0.4
5*
0.4
1*
0.3
5*
0.1
80.4
2*
0.2
40.3
0*
0.4
5*
0.7
8*
1.0
0
(16)
Tru
st-0
.56*
0.7
4*
0.2
9*
0.6
9*
0.7
1*
0.6
9*
0.5
5*
0.5
5*
0.3
2*
0.6
5*
0.2
10.3
8*
0.4
7*
0.5
8*
0.6
5*
1.0
0
(17)
Job in
volv
emen
t-0
.36*
0.5
4*
0.3
7*
0.4
8*
0.4
3*
0.4
4*
0.1
20.1
7-0
.06
0.3
8*
0.1
80.0
20.4
0*
0.5
1*
0.3
9*
0.4
6*
1.0
0
69
Appendix 7: Correlation (manager)
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(1)
Tur
nove
r In
tent
ion
1.0
0
(2)
Goal
s an
d d
irec
tion
-0.2
11.0
0
(3)
Imm
edia
te le
ader
-0.5
0*
0.3
4*
1.0
0
(4)
Com
mun
icat
ion
-0.5
4*
0.4
9*
0.5
7*
1.0
0
(5)
Com
pan
y's
reput
atio
n-0
.35*
0.4
5*
0.3
5*
0.4
5*
1.0
0
(6)
Cul
ture
tow
ards
risk
tak
ing
-0.4
7*
0.5
2*
0.4
4*
0.6
1*
0.4
4*
1.0
0
(7)
Colla
bora
tion
-0.3
0*
0.5
5*
0.3
9*
0.4
5*
0.3
2*
0.4
5*
1.0
0
(8)
Per
form
ance
appra
isal
-0.1
60.3
4*
0.2
10.2
5*
0.1
70.3
8*
0.2
7*
1.0
0
(9)
Com
pen
satio
n-0
.20
0.3
5*
0.1
70.3
5*
0.4
1*
0.4
1*
0.3
0*
0.4
0*
1.0
0
(10)
Pro
motio
n-0
.24*
0.4
8*
0.2
4*
0.4
4*
0.4
7*
0.5
5*
0.4
0*
0.5
2*
0.6
0*
1.0
0
(11)
Hirin
g-0
.07
0.1
10.0
90.1
10.1
40.1
30.0
3-0
.03
0.0
20.0
61.0
0
(12)
Tra
inin
g an
d c
aree
r dev
elopm
ent
-0.1
60.4
4*
0.2
3*
0.4
3*
0.4
0*
0.4
9*
0.4
4*
0.3
5*
0.2
3*
0.3
6*
0.1
21.0
0
(13)
Job d
esig
n-0
.48*
0.5
2*
0.5
6*
0.6
3*
0.5
5*
0.4
8*
0.6
1*
0.3
8*
0.3
6*
0.4
2*
0.0
60.4
8*
1.0
0
(14)
Org
aniz
atio
nal p
ride
-0.3
4*
0.5
6*
0.1
50.4
7*
0.6
0*
0.5
0*
0.4
7*
0.3
2*
0.4
4*
0.5
6*
0.1
0.5
0*
0.5
1*
1.0
0
(15)
Org
aniz
atio
nal c
om
mitm
ent
-0.3
0*
0.5
1*
0.2
3*
0.3
4*
0.5
1*
0.3
9*
0.3
5*
0.2
3*
0.1
60.3
1*
0.0
70.3
8*
0.4
9*
0.6
7*
1.0
0
(16)
Tru
st-0
.39*
0.4
7*
0.4
7*
0.5
8*
0.6
2*
0.5
3*
0.3
8*
0.2
4*
0.4
2*
0.3
9*
0.1
60.3
4*
0.4
4*
0.5
2*
0.3
8*
1.0
0
(17)
Job in
volv
emen
t-0
.35*
0.6
3*
0.4
3*
0.5
5*
0.4
1*
0.5
8*
0.5
7*
0.2
4*
0.2
8*
0.3
6*
-0.0
10.5
8*
0.5
8*
0.5
2*
0.4
2*
0.5
4*
1.0
0
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