Interplay of human capital development and related behavioural factors as panacea for turnover intentions

Abstract

Orientation: Retaining staff remains a daunting task for organisations, more so for millennials. They are significantly less satisfied in their jobs and are more likely to have perceptions that may negatively impact job satisfaction, commitment, engagement and turnover intentions (TIs).

Research purpose: The aim of this study is twofold: firstly, it explores the effect of human capital development (HCD) on staff retention, and secondly, it examines the intervening function of job satisfaction, commitment and loyalty on the correlation between HCD and staff retention.

Motivation for the study: Human capital development culture is related to a myriad of organisational behaviours impacting TIs.

Research approach/design and method: A quantitative and cross-sectional research approach was adopted, employing an online survey with 210 respondents. SMART PLS 4 was used for analysis while structural equation modelling (SEM) was employed to gauge the structural correlations between the factors.

Main findings: Firstly, structural equation modelling results revealed that HCD has a positive but small as well as non-significant impact on staff retention. Secondly, the mediation inquiry revealed that job satisfaction and commitment intervene in the correlation between HCD and staff retention or TI, except for loyalty.

Practical/managerial implications: The pursuit of an HCD culture aligned to organisational goals is a necessary remedy to not only advance sustainable efficiencies and success but also enhance staff retention.

Contribution/value-add: This empirical research evidence provides a much broader perspective on the role of HCD on the nexus between multiple organisational behaviours related to TIs. Entrenching HCD culture in HR policies and practices could result in desired organisational outcomes.