Factors Affecting Professional Employee Retention

Abstract

A study is conducted to evaluate factors affecting retention of professional employees in firms practicing in civil geotechnical and environmental engineering. The study is based on a literature review and questionnaires completed by technical staff, senior managers, and human resources managers from sample firms across the United States. The study shows that the two most important variables influencing turnover are: (a) Opportunity and challenge; and (b) management attention to employees through feedback, interest in employee affairs, recognition of good work, delegation, and provision of opportunity to influence decisions and policies. Direct financial returns (salary and profit‐sharing benefits), while important to employees, are of a lesser impact than the aforementioned two variables. The study also identifies other variables with lesser importance: working conditions, geographic location, performance review, bonuses, organizational structural clarification, insurance, stock options, and others. The study also shows that employees who come to the firm on their own initiative or through a reference by a fellow employee are likely to stay longer.