A Firm-Level Analysis of Employee Attrition

Using a sample (n = 297) of private sector firms, this article considers the role that firm characteristics, work force characteristics, location, and employee benefits practices have in explaining employee attrition. Hierarchical regression analyses suggest that benefit practices are associated with turnover, even when controlling for firm characteristics, firm setting, and work force characteristics. Specifically, firms where benefits were a higher percentage of total labor costs and firms whose benefits packages were described to be of higher quality experienced less attrition. Implications of the findings for human resource management are discussed.