Employee Retention in SMES (Amall, Medium Enterprices) in ShangDong, China

Feng, Xue (2016) Employee Retention in SMES (Amall, Medium Enterprices) in ShangDong, China. Masters thesis, INTI International University.

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Abstract

Small and medium-size enterprise (SMEs) of China play an important role in employment and economic development, it not only promote the economic vitality, and also create works and improve people’s lives (Shi, 2013). However, SMEs have a high employee turnover rate, therefore, the purpose of this study is to determine the factors that influence the employee retention, and the relationship between Dependent Variable (employee retention) and Independent Variable (pay and reward, training, career development), along with the mediating effect of employee engagement. The literature review on employee retention was made to determine within which theoretical frameworks it is relevant to discuss the issue of employee retention, and it stated that retention can be influenced in the sphere of performance appraisals, training and promotion opportunities, rewards and etc based on HRM theory. Based on convenience sampling, the sample size 384 was choose to collect information by distributing 512 online questionnaire according to Krejcie and Morgan’s (1970) guideline, and use the SPSS to analyse the data. The findings indicated that the pay and reward, training, career development have positive relationship with employee retention, while, employee engagement is also having influence on the retention in SMEs in Shangdong, China.

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