Governance and employee retention: An industry risk and outlook during pandemic

Elaine Joy C. Apat

Volume 3 Issue 3, September 2022

Abstract

This paper focused on the assessment of governance risks and its effects to employee retention of service-based businesses in Laguna, Philippines. The study exclusively adopted the governance risks from LaConte’s Strategic Risks Model and Job Embeddedness’ Theory for employee retention. Descriptive research and purposive sampling were employed with 360 retrieved questionnaires. The questionnaire used in this study were subjected to reliability testing with acceptable to good internal consistency. Data were evaluated using statistical tools of frequency, rank, mean, weighted mean and ANOVA. The highest governance risks experienced by business owners during the pandemic in relation to planning is the suspended implementation of goals and objectives while in terms of monitoring and control, unpreparedness on future risks was ranked first. Management support to the professional needs of its employees is significant for reduced turnover of employee retention. Moreover, for the employee productivity, involvement of the employees to the business planning got the highest mean. Planning, and monitoring and control have strong significant difference when grouped according to service sector while under employee retention, reduced turnover is significantly different when grouped according to profile factor. However, the employee productivity showed only strong significant difference in service sector. The study suggested that LGUs may develop a program for governance management and employee empowerment program to aid the recovery programs for service-based businesses.

Keywords

Author information & Contribution

Disclosure statement

Funding

Institutional Review Board Statement

AI Declaration

Notes

Acknowledgement

References

Bartik, A.W., Betrand, M., Cullen, Z., Glaezer, E., Luca, M., & Stanton, C., (2020). The impact of COVID-19 on small business outcomes and expectations. PNAS, vol. 117 no. 30, 17656–7666.

Bidisha, L. D and Mukulesh, B. (2013) Employee Retention: A Review of Literature. Journal of Business and Management, 14, 8-16.

Darbi, W. (2012). Of Mission and Vision Statements and Their Potential Impact on Employee Behavior and Attitudes: The Case of A Public But Profit-Oriented Tertiary Institution. International Journal of Business & Social Science. 3. 95-109.

Engidaw, A.E. Small businesses and their challenges during COVID-19 pandemic in developing countries: in the case of Ethiopia. J Innov Entrep 11, 1 (2022). DOI: https://doi.org/10.1186/s13731-021-00191-3

Filatotchev, I. R. Ireland, D. & Stahl,G. (2021). Contextualizing Management Research: An Open Systems Perspective. Journal of Management Studies.10.1111/joms.12754

Hamdan, A. (2020). Involvement of Low Level Employees in Organization Strategy Planning and Implementation. Open Journal of Business and Management, 8(05), 2337.

Kakanda, M. M., & Salim, B. (2017). Corporate governance, risk management disclosure, and firm performance: A theoretical and empirical review perspective. Asian Economic and Financial Review, 7(9), 836-845.

Khalifa, A. S. (2011). Three Fs for the mission statement: what’s next. Journal of Strategy and Management. Vol. 4 No. 1, pp. 25-43. https://doi.org/10.1108/17554251111110104

Kopaneva, I., & Sias, P. M. (2015). Lost in Translation: Employee and Organizational Constructions of Mission and Vision. Management Communication Quarterly, 29(3), 358–384. https://doi.org/10.1177/0893318915581648

Kossivi B, Xu, M, Kalgora. B. (2015), “Study on Determining Factors of Employee Retention”, Open Journal of Social Sciences, 4, 261-268

Koys, D. J. (2001). The effects of employee satisfaction, organizational citizenship behavior, and turnover on organizational effectiveness: A unit‐level, longitudinal study. Personnel psychology, 54(1), 101-114.

Mita, M., Aarti K. and Ravneeta, D. (2014). Study on Employee Retention and Commitment. International Journal of Advance Research in Computer Science and Management Studies, 2, 154-164.

N Goani, J. (2016). Employee Turnover and Productivity Among Small Business Entities in Nigeria. Independent Journal of Management and Production. Vol. 7, Issue 4, 1063-1082. DOI:10.14807/ijmp.v7i4.466

Naujokaitiene, J., Tereseviciene, M., & Zydziunaite, V. (2015). Organizational Support for Employee Engagement in Technology-Enhanced Learning. SAGE Open. https://doi.org/10.1177/2158244015607585\

Paulsen, E. (2021) Why Employee Retention is Important. https://www.quantumworkplace.com/

Shin, Y., Hur, W. M., Park, K., & Hwang, H. (2020). How Managers’ Job Crafting Reduces Turnover Intention: The Mediating Roles of Role Ambiguity and Emotional Exhaustion. International journal of environmental research and public health, 17(11), 3972. https://doi.org/10.3390/ijerph17113972

Sonmez Cakir, F., & Adiguzel, Z. (2020). Analysis of Leader Effectiveness in Organization and Knowledge Sharing Behavior on Employees and Organization. SAGE Open. https://doi.org/10.1177/2158244020914634

Tampubolon, D. (2014). Pengaruh kepuasan kerja dan komitmen organisasi terhadap intensi keluar di PT. Citra Lestari Anugrah. UGM.

Wen B, Zhou X, Hu Y, & Zhang X. (2020). Role Stress and Turnover Intention of Front-Line Hotel Employees: The Roles of Burnout and Service Climate. Front Psychol. 2020 Jan 30;11:36. doi: 10.3389/fpsyg.2020.00036. PMID: 32082216; PMCID: PMC7002360.

Wheelen, T. L., & Hunger, J. D. (2012). Strategic management and business policy: concepts and cases.

Zimmermann, K. F., Karabulut, G., Bilgin, M. H., & Doker, A. C. (2020). Inter‐country distancing, globalisation and the coronavirus pandemic. The World Economy, 43(6), 1484-1498.

Cite this article:

Apat, E.C. (2022). Governance and employee retention: An industry risk and outlook during pandemic. International Journal of Academe and Industry Research, 3(3), 87-104. https://doi.org/10.53378/352921