Analysing Theoretical Models for Predicting Employee Attrition: A Comparative Study in the FMCG Sector

Abstract

Employee attrition—the voluntary or involuntary departure of employees—causes business problems. Increasing attrition can hurt productivity, knowledge retention, and financial performance. This study compares the Herzberg Theory, Employee Equity Model, Expectancy Theory, and Job Embeddedness Theory to discover the best turnover predictor in FMCG. 53 FMCG workers completed a questionnaire survey for the study. The participants' opinions on the company, career objectives, employment engagement, and happiness were valuable. The survey data was analyzed using descriptive statistics, normality testing, and correlation analyses to determine which theoretical model better described FMCG turnover. Career problems were a fundamental cause of employee turnover. Many respondents seek more challenging and career-focused workplace positions. Many workers felt their jobs offered neither intellectual challenge nor professional progress. Attrition concerns increased due to a heavy workload and project deadlines. Most workers were satisfied with their salaries and non-cash benefits, suggesting that financial incentives did not drive attrition. Employees were proud of their company and communicated well with management. Comparing theoretical models, the Herzberg Theory, which prioritizes career growth and job happiness, predicted FMCG turnover the greatest. Model of Employee Equity and Expectations The Job Embeddedness Theory helped explain attrition dynamics but did not match attrition patterns. FMCG and other knowledge-intensive companies can use our findings to reduce personnel churn. Career development, job enrichment, and intellectually stimulating workplaces can boost employee retention.