SOLUTION: Rutgers State University of New Jersey Employee Turnover Hypothesis Recommendations

Analysis Plan
Dependent Variable: Employee turnover (Intention to stay)
Independent Variables:
· participating in counselling & psychotherapy (mental health)
supervisor support (supervisor support)
Job strain/Overstress (job-strain)
pay (pay-sat)
H1: More participation in counselling & psychotherapy will be negatively related to employee
H2: Higher supervisor support scores will be negatively related to employee turnover.
H3: Overstress will be positively related to employee turnover.
H4: Paying satisfaction will be negatively related to employee turnover.
Executive Summary
The group report aims to generate data and content that will be used in the decisionmaking process by the Board of Taylor Recruitment Group with regards to Human Resources.
The report analysed data from 1791 employees using regression analysis as well as correlation.
The data analysed is aimed at looking at the variables that result in high employee turnover and
thus, find solutions that counter the variables and make recommendations that enable the
organization to have a higher retention rate. The Background will focus on the issue of high
employee turnover and how it affects an organization through the loss of talent, as well as
preventing the establishment of a positive workplace environment. The literature review will
focus on the various factors that lead to high job satisfaction rates ranging from benefits such as
higher pay, wider health benefits and more money into pensions while also exploring the link
between job satisfaction and supervisor support, overtime and mental health. The paper will also
focus on analysing the available data through quantitative methods such as one-way ANOVA,
correlation and t-tests with the aim of establishing the relationship between various variables.
The paper will also focus on presenting the data results with the aim of explaining the findings,
the possible reasons why some deviations exist and the limitations of the data. The paper will
also extensively review the findings and make recommendations based on the data findings.
Background/ Introduction
Employee turnover is a major problem for companies in most sectors of the economy, but
most especially in labour intensive sectors like hospitality as well as capital intensive ones like
Information technology. In Australia, the problem is most acute in large cities where the cost of
living is high and also rural areas where manual jobs are often shunned(Van Gramberg et al,
2020). The employee turnover rate can be defined as the number of people who leave accompany
after working there in a given period of time. This is often calculated with the time period often
being one year. In many instances, most employees leave due to having a low job satisfaction
rate. Job satisfaction is a broad term, and can encompass a wide variety of concepts. However, it
can be measured in terms of organizational commitment, productivity and absenteeism (Haque,
Fernando & Caputi, 2019). Job satisfaction is often strongly linked to the type of work
environment found in a particular organization. Work environments where stress levels are high,
either due to a high workload, or frequent assessments that can lead to tension in the workplace.
A toxic workplace where employees are treated poorly, underpaid or seem to be dead-end in
terms of career progression can also experience a high rate of employee turnover. On the other
hand, workplaces where employees are treated with respect, where the pay is above the average
for the sector and a wide variety of benefits are on offer, the employee turnover is likely to be
Literature Review
The new generation of workers is mainly from the Millennial and Generation Z cohorts.
Many of the workers from this demographic have a different view of the workplace, whereby,
there is a strong emphasis on the work-life balance (Bahar et al, 2020). As such, their view of the
workplace is different from earlier generations. As such, pay, while still being important, is not
the only factor that employees now look at when deciding whether to stay with an employer in
the long term. Many employees increasingly prioritize whether the workplace is a place where
the environment is conducive, allows them to be productive, as well as allowing them to grow
As mentioned earlier, while labour intensive industries like hospitality and manufacturing
tend to have a high employee turnover, overall, small businesses are often more likely to lose
workers as compared to large companies. Small companies with few employees are often not in a
financial position to provide a wide variety of benefits beyond the ones mandated by the
government(Bahar et al, 2020). On the other hand, large profitable companies are often in a
position to provide a wide variety of benefits to their workers. As such, large companies are
often at a considerable advantage, especially over small start-up companies as they are able to
have a lower employee turnover as well as are able to retain talent. The benefits that large
companies have include expanded health benefits that cover mental healthcare. While Australia
covers mental health to some degree under Medicare, out of pocket payments are a requirement
for more comprehensive mental healthcare. At the same time, access is not evenly distributed
across the country(Gardinier et al, 2020). As such, employers that can cover this cost through
expanded health benefits.
Employee performance reviews are an important aspect of human resource management.
It allows the company to review the performance of employees and to provide feedback on
whether organizational goals are being met. While being an essential process, performance
reviews re often a tense and sometimes conflicting period for employees and in many instances,
they are often done between every quarter, to every year (Podgorodnichenko et al, 2020). As
such, a balance is struck between the employees and the organization. However, frequent
assessments, such as monthly assessments can easily lead to constant tension in the workplace,
as the impression that emerges is that the company is pressuring its workers. This can easily
create a toxic workplace where employees are constantly being reviewed for small mistakes and
being micromanaged.
Team work is an essential part of the workplace as it allows workers to collaborate and
cooperate. In many instances, teamwork enhances productivity and leads to workers learning
from each other. As such, team work can in itself help in retaining workers if it is been done in a
manner that motivates the workers (Xerri, Farr-Wharton & Brunetto, 2020). If team support and
team rewards are provided, the there is a strong likelihood that the employees are more likely to
stay with the company as they will feel valued by the company. Such team-work activities also
lead to positive work engagement and thus, leads to easier achievement of organizational goals.
The provision of training is also a crucial tool for lowering employee turnover. Training
provides for opportunities for career progression. As such, when training opportunities are
available, employees ae able to learn new skills that allow them to expand on their job functions,
as well as be able to adapt to new roles that are emerging in the business environment (O’Shea &
Alonso, 2020). As such, although training programs are often quite expensive, they also provide
a lot of benefits to organizations and help in reducing employee turnover.
Data Analysis
A survey was used and data was collected from 1791 workers across all of the
departments. The dependent variables that were looked at included, age, average pay, bonus pay,
burnout exhaustion, company tenure, education, gender, job strain, leadership, personal leave,
unplanned leave, mental health, online training annual performance, past performance,
supervisor support, team resources, team rewards, training days, wellbeing and work
engagement. The independent variable used was intention to stay, which is often a strong
indicator for the level of employee turnover that the company might experience.
H1: Employees participating in counselling & psychotherapy will reduce turnover. This was
measured using intention to stay and mental health.
H2: higher supervisor support scores will be negatively
related to employee turnover. This was measured using intention to stay and supervisor support .
H3: Overstress will be positively related to employee turnover. This was measured using jobstrain, intention to stay, and job satisfaction. (Job-strain& job-satisfaction).
H4: Paying satisfaction will be negatively related to employee turnover.
In this case, we will use correlation in comparing the data obtained. Correl was used when
comparing the intention to stay with the other variables
From the data, the first hypothesis has been validated as there is a positive correlation between
employee intention to stay and mental health. The second hypothesis however, was nulled as the
data indicates that there is a positive, rather than negative correlation between supervisor support
and the employees intention to stay. The third hypothesis is also validated as there is a positive
correlation between employee intention to stay and training days. The fourth hypothesis is
partially validated as there is a positive correlation between job satisfaction and the employee’s
intention to stay, but a negative correlation between the employees intention to stay and the job

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