Furthermore, it is vital that these "champions" make sure that employee complaint resolution endeavors are successfully executed. In one study, companies with devoted and advanced "champions" had been twice as probable to account that their organizations had been doing better than they anticipated (Yu, 2001). This shows that with top management support as well as advanced and knowledgeable employees can assist in increasing the organizational performance. In light of the aforementioned facts, we have chosen our third variable as top management support and our third hypothesis is:
Hypothesis three: The stronger the top management support, the higher the employee retention rates.
Collection of variables and Measurement Unit
The first and the third variables will be collected by introducing four intervening variables. Intervening variables for the corporate culture included: (a) growth opportunity; (b) higher salary (c) Job Security (d) To Convert to Government; and (e) Relocating. Similarly, intervening variables for top management support included: (a) CSC Corporate Wide mgt; (b) Your business unit mgt; (c) Your immediate mgt; and (d) Benefits. Both these variables are binominal and offer participants an option of either yes, if they agree, or no, if they disagree.
The scale developed for the higher salary variable provided participants with four options, namely, (1) under 5%; (2) 5-10%; (3) 11-15%; and (4) Over 15%.
A Statistical Model
Data Gathering Procedure
A 3-question survey had been delivered on October 20, 2010 by the company Intranet to 20 current employees in the Human Resources Department at (company name). As mentioned above, the survey responses had been anonymous. The same survey had been uploaded to the internet and 15 past employees were asked to fill the survey.
Develop a model. Describe the statistical or quantitative technique(s) appropriate for your research. How will the model output answer your research questions? Why it this technique appropriate for the problem you have identified? The model should be solvable and realistic. The input data required for model development and solution must be available.
4. Analysis.
The quantitative analysis and solution, based on the model described in the Data Analysis
In statistics, regression analysis is used as a tool to measure the dependency between variables. Regression analysis will help in unravelling the casual impact of one variable on another variable. Since regression analysis is used to evaluate the significance of the relationship between variables, i.e. degree of confidence that the actual relationship (acquired from results) is close to the approximated relationship (hypotheses); this study will be able to explore the impact of corporate culture, higher salary and top management support on employee retention.
Data Analysis
Hypothesis Testing Of Regression B/W Corporate Culture and Employee Retention:
Statement:
Employee Retention is not dependent upon Corporate Behavior: (Regression Coeff. =0).
Employee Retention is dependent upon Corporate Behavior:: (Regression Coeff. 0).
Calculation:
Table 1.1
Level Of Significance:
= 0.05
Table 1.2
Test Statistics:
Tc = (b-?)/Sb follows employees t -- Distribution.
where b=Regression Coefficient & Sb=Standard error about Regression Coefficient
Table 1.3
Coefficients
Standard Error
t Stat
P-value
Intercept
-0.63338
0.885205
-0.71552
0.513835
N1
1.038003
0.02427
42.76956
1.79E-06
Table 1.4
Lower 95%
Upper 95%
Lower 95.0%
Upper 95.0%
-3.09111
1.82435
-3.09111
1.82435
0.970619
1.105386
0.970619
1.105386
Regression analysis of the relationship between Corporate Culture and Employee Retention was used to discern the relationship between the two. The result of the t-test of regression coefficient is 42.76956 and the P-value is 1.79E-06, which shows that a strong relationship exists between the 2 variables. The results of the t-test also revealed substantial difference in confidence interval of Regression Coefficient (0.970619 and 1.105386). A practical implication of this result is that the employee retention is dependent upon the corporate culture.
Hypothesis testing of higher salary and employee retention:
Statement:
Employee Retention is not dependent upon higher salary: (Regression Coeff. =0).
Employee Retention is not dependent upon salary: (Regression Coeff. 0).
Calculation:
Table 1.1
Level Of Significance:
= 0.05
Table 1.2
Test Statistics:
Tc = (b-?)/Sb follows Employees't -- Distribution.
where b=Regression Coefficient & Sb=Standard error about Regression Coefficient
Table 1.3
Coefficients
Standard Error
t Stat
P-value
Intercept
0.645224
0.845267
The result of the t-test of regression coefficient is 42.76956 and the P-value is 1.79E-06, which shows that a strong relationship exists between the two variables. The results of the t-test also revealed small difference in confidence interval of Regression Coefficient (0.898883 and 1.02369). A practical implication of this result is that employee retention is dependent upon higher salary.
Hypothesis Testing Of Regression B/W Top management Support and Employee Retention:
Statement:
Employee Retention is not dependent upon Top management Support: (Regression Coeff. =0).
Employee Retention is not dependent upon Top management Support: (Regression Coeff. 0).
Calculation:
Table 1.1
Level Of Significance:
= 0.05
Table 1.2
Test Statistics:
Tc = (b-?)/Sb follows Employees't -- Distribution.
where b=Regression Coefficient & Sb=Standard error about Regression Coefficient
Table 1.3
Coefficients
Standard Error
t Stat
P-value
Intercept
-3.14961
4.383029
-0.71859
0.512131
N63
1.188976
0.139773
8.506469
0.001048
Table 1.4
Lower 95%
Upper 95%
Lower 95.0%
Upper 95.0%
-15.3189
9.019657
-15.3189
9.019657
0.800903
1.57705
0.800903
1.57705
Regression analysis of the relationship between top management support and employee retention was used to discern the relationship between the two. The result of the t-test of regression coefficient is 8.506469 and the P-value is 0.001048, which show that a strong relationship exists between the two variables. The results of the t-test also revealed small difference in confidence interval of Regression Coefficient (0.800903 and 1.57705). A practical implication of this result is that employee retention is dependent upon top management support.
Discussion and Conclusion.
This study aimed to study the impact of corporate culture, top management support and higher salary on employee retention at (company name). The results of the study indicate that employee retention is dependent upon all three variables. One implication of the study is that (company name)'s top management needs to focus on creating a friendly culture that gives growth opportunities, promote merit in giving salary, offer more secure jobs, and create a friendly and supportive top, middle and lower management.
One method to implement the current solution is to organize a workshop where company and business unit heads are trained and informed about various strategies, tactics and the business processes that can promote stronger corporate culture, put forth a supportive top management role and increase salaries and benefits on merit. Future research on employee retention should focus on the role of top management support and its impact on employee retention. More specifically, what leadership style best suites the employees? How can business leadership promote a supportive culture that leads to employee retention?
References
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Salary Increase
Top management Support
CSC Corporate Wide management
Your business unit management
Your immediate management
Benefits
Corporate Culture
Growth Opportunity
Higher salary
Job security (contract issues)
To convert to gov't
Relocating
Employee Retention
