Unfolding Model of Turnover for Enhancing Employees’ Retention Rate: A Study from Auto Parts Manufacturing SME in Thailand
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Abstract
The employee turnover research to date has tended to focus on factors affecting employees ‘turnover decisions rather than how those decisions do unfold. Based on the unfolding model of turnover, the objectives of this study are to explore the proportions of turnover decision paths among 475 permanent employees working in SME auto part manufacturers and determine the effect of the demographic attribute of gender and job tenure on their turnover decision path. The result of nonparametric analysis showed that push path has the highest proportion of turnover decision, followed by pull and planned decision path respectively. Another important finding was that proportion of decision paths are different across job tenure. Specifically, employees whose job tenure is less than one year had the highest proportion of planned, push, and pull decision path in order. In contrast, those proportions are similar regardless of gender. The findings of this study highlight a number of potential human resource management practice must be taken by the SME manufacturers such as employee survey, exit survey, and recruitment of boomerang employees in response to labor shortage and turnover problem they are experiencing in aging society.
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