Using the Buck HRM AuditTM, we surveyed the HRM practices of a sample of firms in Singapore. The results from stepwise regression indicated that firms that have formalized Job Analysis activities had the lowest level of employee turnover in general, and particularly, during a boom year. However, during a recession, firms that have formalized HR and Succession Planning had the lowest turnover rates. Implications of the results are explained in terms of goal setting theory. The importance of formalizing and setting work standards and activities for employees using a job analysis, as well as determination of human resource skill requirements and career paths through HR and succession planning, were able to reduce employee turnover due to the benefits of setting specific goals.

The Impact of Human Resource Management Practices on Employee Turnover

For Singapore firms to survive in a global economy in the new millennium, they need to design effective human resource management (HRM) practices that encourage the retention of high performing employees, particularly among skilled employees. This is beca

Since the effectiveness of a firm’s HRM practices has been found to affect employee turnover, employee turnover rates were used as dependent variables in this study. The respondents were asked to provide their company's employee turnover rates for 1995, 1996 and 1997. Turnover rate was measured as a continuous variable. Three dependent variables were used. The 1995 turnover rate represented the firm’s employee turnover rate in a boom year. The 1997 turnover rate represented the firm’s turnover rate in a recession year. The final dependent variable is the average turnover rate over the 3-year period between 1995 and 1997. The average turnover rate is obtained by taking the mean value of the firm’s turnover rates in 1995, 1996 and 1997.

· High recruitment costs, long cycle-time to fill jobs and the inability to attract qualified job applicants because the evaluation of recruitment sources and methods are absent;

In order for firms to be competitive, they must retain their competent and motivated employees. One important area that affects employees' intentions to leave, their levels of job satisfaction, and organizational commitment is the organization's HRM practices (Lee & Heard, 2000). For example, firms that do not select the right employees to begin with may not be able to keep these employees in the long run because of low employee morale arising from a poor job fit. Also, firms that do not socialize new employees into their jobs and/or the organization may not be able to cultivate from them, a sense of loyalty and commitment to the firm because of the lack of attachment demonstrated by the firm to the newcomers. Most obviously, firms that do not pay their employees equitably compared to what other firms are paying, may lose their employees because of the non-competitive compensation package.

Some topics in this essay:
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