Formulating the Problem Statement
Employee retention is crucial for organizations to achieve maximum productivity, effectiveness, and success. The constant turnover of employees causes financial strain as the organization spends time and resources on recruiting, hiring, and training new individuals. Moreover, the continuous loss of experienced employees hampers the company’s productivity. Furthermore, morale within the company is affected as remaining employees are burdened with additional responsibilities while the organization strives to fill vacant positions.
In higher education, when key staff members leave, it can cause problems in multiple areas such as student learning and the appeal of the university to potential students. With the evolving nature of education and learning, strategies for retaining staff must adjust accordingly. This study seeks to explore the factors that lead employees to leave their jobs, which ultimately leads to low retention rates. By offering a brief background and analyzing a problem statement and purpose statement, this research will further delve into the findings from the literature review.
Background
Previous studies have offered various methodologies for organizations to achieve employee retention success. This study focuses on the reasons why higher education institutions experience low retention rates due to voluntary terminations influenced by different factors.
Previous studies by Jovanovic (1979), Compdata Surveys Consulting (2015), Erasmus, Grobler, and Niekerk (2015), Figueroa (2015), and Ellucian (2016) conducted investigations on various variables related to voluntary termination of employees in higher education institutions. These models examined factors such as compensation, recognition programs, and opportunities for advancement and their relationship to turnover rates in these institutions.
Problem Statement
The study will utilize a quantitative approach to investigate employee retention within a specific population of a higher education institution. The literature review highlighted that past studies examined staff and administrative faculty as distinct research groups, considering their job disparities as potential factors influencing voluntary job termination.
Since the reasons for low retention rates may differ depending on the job group, this study will focus on administrative staff and explore various reasons behind the high turnover rates in higher education institutions. Previous research studies have examined this issue using different models to identify any factors that may have a direct relationship or correlation with voluntary termination statistics.
Compdata Surveys Consulting (2015) conducted a study that revealed a consistent increase in turnover rates in institutes of higher education. The rates reported were between 12.5% and 12.8% during the period of 2014 through 2015. Similarly, in the studies conducted by Ellucian (2016), it was found that various factors such as limited advancement opportunities, absence of recognition programs, and insufficient compensation contributed to this consistent increase in turnover rate. The current study aims to focus on the relationship between employee retention rates and compensation, recognition programs, and advancement opportunities.
Summary
Employee retention is crucial for any organization to achieve maximum productivity, effectiveness, and success. Organizations with low employee retention rates may experience various negative consequences, including financial implications. When an organization struggles to retain employees, they incur continuous expenses in recruitment, interviews, and training. Additionally, the remaining employees might become frustrated due to increased workload caused by replacements, leading to reduced morale and higher turnover rates. Employee turnover can be attributed to factors such as inadequate compensation, limited career advancement opportunities, and a lack of recognition programs. This study focuses on the administrative staff in higher education institutions and aims to identify the underlying causes for their low retention rates.
References
- Compdata Surveys Consulting (2015). Turnover Rates in Higher Education and How Employers are Recruiting to Fill Openings. Compdata Surveys has the largest database of compensation and benefits information in the country.
- Ellucian. (2016). Study Makes the Case for Employee Engagement in Higher Education Institutions. Cornerstone OnDemand and Ellucian survey uncovers reasons behind employee disengagement in higher education institutions and how employee engagement programs can impact organizational success.
- Erasmus, B., Grobler, A., Niekerk, M. (2015).Employee Retention in a Higher Education Institution: An Organisational Development Perspective.
- Figueroa, O. (2015). The Influences Impacting Staff Turnover in Higher Education.
- Jovanovic, B., (1979), ‘Job matching and the theory of turnover’, Journal of Political Economy, 87, pp. 972-990.
