Employee Retention: Causal Analysis for Non-Profit Organizations in Thailand

Abstract

The purpose of this study is to explore the factors affecting employee’s intent to stay to work for non-profit organizations. The studied employed documentary research and survey research methods. The data was collected from 453 full-time employees who work in non-profit organizations. Majority of employees work in non-profit organizations for about 4-6 years. Main income of the organizations that the data was collected were from donation, others, government and fundraising activities in order of the most to the least. The studied variables of human resource practices were opportunities for learning, relationship with colleagues and supervisors, participation, job stress, and mission attachment. They were found to relate with employee engagement and intent to stay. Employee engagement was studied to be the mediated variable to intent to stay, and intent to stay as the dependent variables. The causal model showed that opportunities for learning, relationship with colleagues and supervisors, participation, job stress, mission attachment, and employee engagement had direct effect to intent to stay. Opportunities for learning, relationship with colleagues and supervisors, participation, and job stress had indirect effect to intent to stay through employee engagement. Most variables had a positive relationship with total effect, while job stress had a negative effect. These relationships suggested an organization to manage effectively in terms of job assignment and support. Organizations should assign their employees jobs and tasks that are suitable for them. They should also enhance their employees’ skills and knowledge by job performance and other training. Moreover, the feedback is also important. It enhances the employees’ engagement as well as perception of being importance in the organization. These practices were recommended in order to increase the employees’ intent to stay. While doing the research, it was found that non-profit organizations are privately manage accordingly to its mission and that are the reasons that lead an organization to administrate in certain way. Future research hence can focus on types of non-profit organizations in Thailand. These different types of organizations can also be further studied extensively in terms of factors affecting employees’ intent to stay.