Who stays with you? Factors predicting employees' intention to stay

Abstract Purpose – The study was conducted with the aim of discovering the factors which maximally discriminate between those employees who intend to leave the organization and those who intend to stay with the organization. The primary motive was to find those factors which are strong predictors of intention to stay, so that employees who intend quitting are identified in advance, and remedial measures are taken to retain them, especially if they are key performers. Design/methodology/approach – A questionnaire covering several aspects relating to employee retention was designed and distributed amongst a sample of 100 employees chosen through incidental sampling. Data thus collected was subjected to factor analysis, which yielded seven factors: Goal Clarity, Autonomy, Employee Engagement, Affective Commitment, Organizational Culture, Compensation and Benefits, and Normative Commitment. Discriminant analysis was done on these factors to identify the best predictors of employees' intention to leave or stay, by creating a discriminant function. Findings – Results showed that Affective Commitment, Normative Commitment and Goal Clarity were the best predictors of employees' intention to stay or leave the organization. Originality/value – Increasing employee turnover rates have necessitated the formulation and implementation of a robust retention strategy to effectively reduce employee turnover. By building a decision rule and a cut‐off score to classify an employee into one of the two groups – "intend to leave" or "intend to stay" – an organization would be able to invest its resources in the right employees.