Determinant Factors of Labor Turnover- A New Perspective

Abstract

Purpose: The study aims to develop a conceptual framework based on the existing labor turnover model and test it empirically.  The model tested how dissatisfaction with government rules and regulations, work environment, social environment, and shock to the system and demographic factors impact turnover. Design/Methodology/Approach: This is a cross-sectional study conducted based on data collected from 384 employees who have left the garment industry in Sri Lanka. Data were analyzed through Analysis of Variance (ANOVA) and Multiple Regression Analysis. Findings: The results indicate dissatisfaction with government rules and regulations, work environment, social environment, a shock to the system, age, service, and income significantly influence labor turnover.  Research Limitations/Implications:  The scope of this study did not cover factors that can affect employees' turnover, such as dissatisfaction with low performance, voice, and neglect of work, high absenteeism, and grievances.  Practical Implications: Policy-makers can use the tested model to determine the causes of the existing issue of labor turnover and intervene to formulate strategies/policies, devise solutions for the same.  Management intervention would be effective to help handle and minimize problems associated with the existing issue of labor turnover. Originality/Value: To date, previous studies are based on the existing employees' intention to quit. However, the present study considers employees who have already quit the industry; thus, the study fills the empirical gap in the area of research on labor turnover.