EXAMINING THE IMPACT OF HUMAN RESOURCE MANAGEMENT PRACTICES ON EMPLOYEES' TURNOVER INTENTION

ABSTRACTIt is important for human resource (HR) managers to overcome employees' turnover intention. Issues encountered may be in the areas of shrinking pool of entry-level workers, individual differences, use of temporary workers, productivity and competitiveness, retirement benefits and skills development. Therefore, this paper discusses extensively on the impact of human resource practices that can alter the negative effect on the organization due to high employees' turnover. The population sample of this study was drawn from among the grounds security officers and supervisors of a Singapore based security company (Company ABC) for the purpose of this study to test for compensation and benefits, training, career development, performance management and employee relations. Analysis of findings are presented and conclusions and recommendations drawn for professionals and decision makers in the industry.Keywords: Turnover Intention; Career Development; Employee Relations; Performance Management; Compensation.1. INTRODUCTIONTurnover is defined as the "individual movement across the membership boundary of an Organization" (Price, 2001; Thwala et al., 2012). Interestingly unlike actual turnover, turnover intent is not explicit. Intentions are a statement about a specific behaviour of interest (Berndt, 1981). Studies have shown that turnover is one of the most researched phenomena in organizational behaviour (Price, 2001). The broad range of turnover studies is indicative of the significance and complexity of the issue. The phenomenon attracts interest due to its psychological dimension, its organizational significance, and its economic dimension. Thus it is imperative for HRM managers to understand that there are several factors inherent to counter staff intentions or turnover. One theory specifies that employees' decision to resign is influenced by two factors: their "perceived ease of movement", which refers to the assessment of perceived alternatives or opportunity and "perceived desirability of movement", which is influenced for instance by job satisfaction (Morrell et al., 2004; Abdullah et al., 2012). This describes how balance is struck both for the organization and its employees in terms of inducements, such as pay, and contributions, such as work, which ensures continued organizational efficiency. In general, when inducements are increased by the company, this will lower the tendency of the worker to leave and vice versa (Morrell et al., 2004). At the same time, managers should also be aware that of the question whether the decision to leave could have been prevented by the organization. This is important for the planning of interventions. It would be realistic to manage this turnover as unavoidable rather than spend on theorized preventive measures, such as increasing pay. These losses of employees can also be described as "necessary causalities" (Morrell et al., 2004). The impact of Human Resource Mismanagement can have a profound negative effect on the Organization. The expectancy theory predicts that one's level of motivation depends on the attractiveness of the rewards sought and the probability of obtaining these rewards can hold sway in any current organization management's objective to achieve high productivity and competitive edge in the 'market place'. Employees desire compensation system that they perceive as being fair and commensurate with their skills and expectations. Pay therefore is a major consideration in an organization because it provides employees with a tangible reward for their services as well as source of recognition and livelihood (Howard, 1993; Thwala et al., 2012; Abdullah et al., 2012). 2. LITERATURE REVIEW2.1. Relationship between HRM Practices and Turnover IntentionIt is important for HRM to overcome employees' turnover intention. Issues encountered may be in the areas of shrinking pool of entry-level workers, individual differences, use of temporary workers, productivity and competitiveness, retirement benefits and skills development (Kotter, 1995). …