Employee retention in a higher education institution: an organisational development perspective

Abstract

Talent retention and employee turnover are major concerns for higher education institutions (HEIs) because they are losing highly qualified staff to the private sector and to other HEIs that are able to offer better rewards and benefits. The turnover of talented staff is therefore a major concern for the institution under investigation. The retention and voluntary turnover decisions among a workforce of 4 651 employees was thus investigated. A quantitative cross-sectional study was conducted by means of the objective analysis of organisational data in combination with the structured questionnaire (organisational climate survey). Descriptive and inferential statistics were applied to analyse the data across demographic groups, including age, employment category (academic as well as professional and support), etc. The results indicated that the institution’s turnover rate was acceptable (4.34%) and that dysfunctional turnover was marginal because employees with belowstandard performance ratings had voluntarily resigned. Positive correlations and significant beta (b) values were reported between Organisational citizenship,

Leadership, My manager and Compensation and the employees’ intent to stay in or to leave the organisation. These organisational climate factors were found to explain approximately 30 per cent of the variance in the employees’ intent to stay in or to leave the organisation. The article recommends that a talent retention tool be developed. In addition, it contributes to the literature on retention and turnover of high-performing employees, as it underscores the importance of measuring employee turnover.