TURNOVER OF HIGH PERFORMING EMPLOYEES IN THE ELECTRONICS INDUSTRIES IN THAILAND

PRESENTED BY

SA-ARD BANCHIRDRIT

UNIVERSITY OF SOUTH AUSTRALIA, WEST CITY CAMPUS, ADELAIDE, SOUTH AUSTRALIA

APRIL 15, 2009

SIGNIFICANCES OF THE ISSUE

EMPLOYEE TURNOVER IMPACTS TO:-

• Costs• Productivity• Customer’s satisfaction• Employees morale

ELECTRONICS INDUSTRIES IN THAILAND PLAYED A MAJOR ROLE IN:-

• Economics• Employment • Human resource development

HIGH PERFORMING EMPLOYEES/ TALENTS:-

• High demand in the labour market• High value-added resources of organization• High risk to lost to competitors

TURNOVER SITUATION IN THAILAND:-

• Turnover rate has increased continuously• In 1980s was around 1-2 %- In 1990s reached to

10 + % In 2000s was at 13-15%

TURNOVER STUDIES IN THAILAND THE PART YEARS WERE:-

• All employees• No identified study on “high performer/talent

turnover-retention • Most studies were conducted outside of

Thailand PRIMARY QUESTIONS

• Why does high performing employee leave organization?

LITERATURE REVIEW

TURNOVER THEORIES/MODEL (1958-2000)

Motivation Theory (March & Simon 1958) Integrative Turnover Model (Hom & Griffeth 1995) Market-Driven Concept (Cappelli, 1999)

In brief key variables of employee turnover drawn from above three theories are:-

1. unfair treatment2. Job satisfaction3. Organizational commitment4. Labour market

RESEARCH QUESTIONS

1. Why do high performing employees leave organization?

2. What are top five factors influencing turnover of HPE?

3. How to retain HPE?

METHODOLOGY

This is a qualitative research. Case study of one major electronics manufacturer was investigated. Fifty high performers who left during 1999-

2003, were conducted telephone interview. Ten executives, five CEO/Managing directors and five HR Directors/Managers of five electronics

companies commended and verified obtained information from telephone interviews. Modified turnover model and Modified retention model were presented. Descriptive data analysis was used to explain the findings.

Actors 50 Higher Performers

Researcher 10 Executives

Activities Replies and Explains

RQ1

RQ2

RQ3

•analyze information

•Descriptive

analysis

•comment •confirm •on proposed model

Outcomes Information Proposed models

Modified models

FINDINGS

Why do high performing employees leave organization?

Findings were found as below:-

External Factors: Job opportunities

Job Related Factors: Challenging job

Organizational Factors: Policies/procedures (unfair), promotion, Compensation &

Benefits, Relationship, Training, Reward & Recognition

Personal Factors: Age, Sex, Education

What are top five factors influencing turnover of HPE?

Findings were found as below:-

1. External job opportunities2. Challenging job3. Promotion4. Compensation & Benefits5. Organizational policies/procedures

How to retain HPE?

Findings were found as below:-– Career development– Compensation & Benefits– Reward & Recognition– Effective communication

External Factor -External job opportunities

Job Related Factors -Challenging Job -Job Dissatisfaction

Organizational Related Factors -Policies/Procedures

Intention to leave Turnover

Demographic Factors -Age -Education -Sex

Modified Turnover Model of HPEs in the Electronics Industries in Thailand

Modified Retention Model

Career Development

Compensation

Challenging Job

Satisfaction

Effective communication

Stay

Arguments/Conclusions

1. Job opportunities are most powerful to turnover of HPEs (new finding)

2. Job satisfaction and organizational commitment are less influenced to turnover of HPEs (new finding)

3. Compensation and benefits, promotion, relationship, reward and recognition, training and development are common factors influenced turnover of all employees included HPEs ( as literatures)

4. Career development and Challenging job are most important variables in retaining HPEs (new finding)

5. Findings of this study are in line of literatures

Recommendation

• Quantitative research is recommended to conduct in the electronics industries to gather information and greater analyze data

• Retention strategy is also recommended to conduct in the electronics industries and other industries in Thailand in order to create benefits to all concerns

• Thai cultural context should be further investigated as “key variable” of turnover and retention studies due to some western scholars challenged that “loyalty already gone”!

Thank You …