Keywords

Retention, Teamwork, Organization Reputation, Responsible Job, Working Benefit, Working Environment.

Introduction

It has been widely accepted that human is the variable resource of any organization that can be compared as “Glue” attaching every network and activities such as personnel cooperation, marketing, including IT and communication, etc. Human plan and control the operation in the organization to achieve the goal. An organization with knowledgeable staff gets a more competitive edge. However, an organization cannot be run just by only one capable person, it is necessary to recruit and screen qualified staff required by each department. The process of staff recruitment and retaining qualified staff is the responsibility of good human resource management (Mathis & Jackson, 2011).

From the previous studies, the staff turnover problem directly affects business success. The organization has to pay more importance to HR strategic value with an awareness of the disadvantages of losing qualified staff, in particular with the industrial business with a high number of workers. Thus, the organization has to find the measurement to handle with the labor situation and adapt itself to increase its competitive edge in the high competition. According to the statistics of workers’ voluntarily resigning from July 2015 to June 2015, the number increased dramatically.

Up till now, several organizations have been facing the problem of high staff turnover rate. In the future, this rate will be getting more seriously because young talent has more choices from the competitor companies on better working benefits, social welfare, etc. Additionally, the concept of being an entrepreneur makes the new-gen workers want to get more experiences from different companies. This becomes a big problem of the organization on the increasing course of recruitment, training, and skill development (Hernández et al., 2013).

Staff resigning has been a serious problem for the organization for a long time (Chen & Lien, 2011). When considering this problem, it can be seen as a challenging task for HR department management. Most reasons mentioned by the staff when resigning are the relationship between employers and staff, colleagues, fringe benefit satisfaction, working benefits, career development opportunities, and knowledge development and training (Mathis & Jackson, 2011). It is important to find the strategies in retaining staff to maintain the ability of business competitive edge. Personnel are a key for the organization in driving economy, society, and country development. Without effective management in HR, it is difficult to retain capable staff.

With the problems mentioned above, the researcher conducted research on guidelines to retain staff in the industrial business organizations by investigating management strategies of successful administrators.The results can be used to enhance the strength of the industrial business of the country.

HR Management

There are several concepts in HR management of the 21^st century affecting the management strategies of the organization. According to the survey in this field, it is found that the most challenging factor during the last decade are 3 factors, i.e. organization must try to keep capable staffs by rewarding, developing organizational culture to attract capable staffs, and planning to develop new generation to become management team in the future (Lussier & Hendon, 2016). If the management team can run an organization according to good HR management, there will be 2 advantages, i.e. staffs and business operation which are the direct benefit of the organization. This brings about other advantages such as better worker responsibility, good teamwork, better working benefit, as well as company reputation.

The Concept of Work Motivation

Work motivation is another important variable that every administrator should be aware of. An individual has his own needs and determination. Working motivation can create work satisfaction which is defined by Thipsukon (2013) as the good attitude and positive thinking that an individual reflects on his own work as a driving force for work efficiency, work dedication, high enthusiasm, good moral support, leading to work efficiency and effectiveness. The researcher proposes two variable theory by Herzberg (Herzberg et al., 1959) mentioning that 2 variables causing work satisfaction or dissatisfaction are: 1) motivation such as successful work, being acceptable, responsibility, and good career path. 2) The variable that can prevent dissatisfaction such as working benefit, the relationship between employers and employees, administration policy, working environment, safety and security, and relationship among colleagues.

The Concept of Responsible Job

Work design refers to workload management, responsibility, and other factors that cause effective work. There are 3 variables, i.e. work efficiency, work satisfaction, and health and mind of the staff. The manager takes the most important role in planning and designing work because he knows the work characteristics and staffs’ expectation, which creates an integration of both staffs’ expectations and their responsibility (Mathis & Jackson, 2011). There are 3 methods when designing a job appropriate for the staff behavior (Stevenson, 2012) expanding work scope to reduce work fatigue and increase staff interest, 2) job rotation can give the opportunity for staff to learn new skills, knowledge, and experience. 3) Adding job value by increasing staff responsibility to create self efficacy and career path development. This is congruent with the research by Arfat (2018) finding that job responsibility has a direct influence on staff’s attitude such as work satisfaction, good attitude, and job rotation reflecting on better organization binding.

The Concept of Working Environment

Nongchanok (2013) presented the concept of the working environment in 3 aspects, i.e. work support environment, controlled environment, and environment that encourages effective work. The concept is similar to the research by Suebsiri (2013) concluding 4 suitable working environment, i.e. a) physical environment such as light, temperature, and noise, b) mental environment such as boredom and fatigue, c) safety environment especially when working with machine or in dangerous situation, and d) working time environment such as shift work, flexible hour work, overtime work, holidays, leave, etc. This is in line with the research by Bibi, et al., (2016) finding that the working environment is a variable between the relationship of working benefit, safety, and staff retention in an organization.

The Concept of Teamwork

Successful teamwork in an organization consists of 2 factors, i.e. diversity of staff and creative working environment. This can be pursued by choosing a new and creative way of recruitment and problem-solving. This is congruent with the research by Anitha (2014) stating that important factors that affect staff’s operation are team relationships, colleagues, and organization binding.

The Concept of Organization Reputation

The organization reputation comes from a good image of the organization ad staff. The good image relates to fair benefit including management, payment, the logo of the products or services, reliability, capable staff, modern production process, and social responsibility. This is congruent with the research finding that the company’s image has a positive correlation with the intention of personnel application.

The Concept of Working Benefit

Staff benefit which is worth the organization is from staffing work results and joining the activities that support the company’s success. That is to say, staffs’ behavior reflects the work benefit as mentioned in the theory of expectation (Vroom, 1964; Milkovich et al., 2008) dividing 2 types of benefit, monetary benefit, and non monetary benefit. The former refers to basic salary, merit pay, motivating pay, and other incentives while the latter refers to a promotion, higher position offering, reward from achieving the company’s target, assigning the challenging task, job security, and learning opportunity. This is congruent with the work by Fang (2011) finding that motivation factors are good benefits, good social welfare, a good bonus system, the opportunity to express capability, and recognition. Among these, the most important motivation is a good payment to retain staff in the organization.

Objectives

The objective of this study is to develop the SEM model for the guidelines to retain staff in the industrial business organizations.

Hypothesis

There are 6 hypotheses in this study:

H₁: Working environment variable has a direct influence on responsible job variable.

The working environment that supports work operations such as clean, convenient, and safe environments results in work satisfaction and work efficiency. According to the study by Batchelor et al. (2014) mentioning that good work characteristics consists of work that requires several skills, work with uniqueness, important work, freedom at work, and feedback from the supervisor. These can create a good working environment and reduce work pressure resulting in the progress of the staff that can develop they to be work specialists and become entrepreneurs. According to the research by Ferreira, et al., (2017), the hotel staffs give importance to their jobs and the customers making a good impression with the customers and the staff feels of job embeddedness.

H₂: Working environment variable has a direct influence on the teamwork variable.

Satisfaction from work environment, working atmosphere, good attitude, a good relationship with supervisors and colleagues create good teamwork. This is congruent with the research by Han et al. (2016) stating that activities in the organization resulting in work efficiency, trust, and unity among the staff. This also reduces the controversy in the organization as stated by Bhattacharya & Roy (2017). Furthermore, a good working atmosphere in the organization causes higher teamwork efficiency especially when the supervisor gives freedom and allows staff to express their opinions.

H₃: Responsible job variable has a direct influence on the working benefit variable.

Systematic benefits and rewards provided to certain types of work can create motivation in skill development and effective work. The research by Behtoui & Neergaard (2012) studying social capital, status, and success in the workplace, working experience, and found that work characteristics have a direct influence on staff income status. The research by Osman (2013) found that work competencies and social support have a direct influence on work loyalty or work resigning.

H₄: Teamwork variable has a direct influence on the responsible job variable.

Putting the right man on the right job is necessary for the organization. However, only one staff cannot fulfill the organization’s target. According to the research by Wen Chung et al. (2012); the responsible job variable has a direct influence on the teamwork variable of an organization and organization binding. Also, the research by Ghadi et al. (2013) states that change leadership, organization binding, teamwork, the role of leader influence directly on the binding and teamwork in an organization.

H₅: Teamwork variable has a direct influence on the organization reputation variable.

Teamwork learning society, building awareness on the achievement of organization targets, organization pride, and employee engagement result in a good image of the organization. Based on the research by Chen & Lien (2011), the environmental ethics of the organization and organization trust influence teamwork of the staff in the organization creating work innovation and teamwork development. The research by Jeffrey (2018) stated that teamwork is an important variable to encourage and create innovation of the organization. The teamwork variable is an important aspect of teamwork strategic development of the organization to increase efficiency and organization reputation.

H₆: Working benefit variable has a direct influence on the organization reputation variable.

Suitable benefits, bonuses, and social welfare are part of HR management which results in company image, organization reputation, and binding in the organization which can attract qualified staff. Based on the research by M. Dolores et al. (2016), the flexibility of working benefit or compensation system can attract staff which is important for organization success and reputation. Ogwueleka & Maritz (2016) created the SEM model on the working benefit system revealing that the working benefit system has a direct influence on staff motivation resulting in increasing organization effectiveness and organization competitive edge.

Methodology

This research and development study integrated 3 components of mixed-method as follows.

1. The Qualitative method through an in depth interview. The sample in this study consists of 9 specialists selected by purposive sampling from the following groups, i.e. 3 business persons, 3 specialists from the government sector, and 3 academic persons. The results of the in depth interview were analyzed and group into 5 variables, i.e. working environment variable, responsible job variable, teamwork variable, working benefit variable, and organization reputation variable. The results were used to design a questionnaire with the IOC value between 0.60 to 1.00, the discrimination value between 0.303 to 0.890, and the reliability of 0.989.

2. The qualitative data developed questionnaires were used to collect data. The populations in this study were 141,247 industrial enterprises (Department of Industry, 2017). The sample size from the SEM analysis was 500 samples (Comrey and Lee, 1992) consisting of 250 medium and small enterprises and 250 big enterprises. The informants completed the 5 scale Likert type questionnaire of which the data were analyzed for descriptive statistics and developed the model by AMOS. The evaluating of the data model fit consisted of 4 variables, i.e. chi-square probability > 0.05, relative chi-square < 2, index of congruence > 0.90, and root mean square of error approximation < 0.08.

3. Qualitative data from the focus group. They were derived from 7 specialists who evaluated and entirely agree with the developed model.

Results

The results of the study on the guidelines to retain staff in the industrial business organizations shows in Table 1.

Table 1 Mean and SD of Guidelines to Retain Staffs in Industrial Business Organization Divided by Types of Business
Guidelines to retain staffs in industrial business organization divided by types of business	Small and medium business			Large business
		S .D .	Important level		S .D .	Important level
Overall	3.9 6	0.40	High	4. 20	0. 33	High
1. Working environment	4.00	0.41	High	4. 20	0. 40	High
2. Responsible job	4.0 2	0.4 3	High	4. 10	0.3 9	High
3. Teamwork	3.97	0.42	High	4.0 7	0. 38	High
4. Working benefit	3.9 0	0.53	High	4.0 4	0.42	High
5. Organization reputation	3.93	0. 50	High	4.0 3	0.3 9	High

1. The medium and small enterprises gave importance to the guidelines to retain staff in the industrial business organizations divided by types of business at a high level with a mean of 3.96. When considering each variable, it was found that the highest variable was on the responsible job (4.02) followed by the working environment (4.00), teamwork (3.97), organization reputation (3.93), and working benefit (3.90) respectively. While the large enterprises gave the importance of the guidelines to retain staff in the industrial business organizations divided by types of business with the mean of 4.20. When considering each variable, it was found that the highest variable was on the working environment (4.20) followed by a responsible job (4.10), teamwork (4.07), working benefit (4.04), and organization reputation (4.03) respectively.

2. When comparing the difference between the 2 groups with an independent t-test, there was a statistical significance level of 0.05 with the large enterprises paid more importance on the model than that of the small and medium enterprises.

3. The evaluation of the data model fit of the guidelines to retain staffs in industrial business organization divided by types of business showed that the chi-square probability was 0.00, the relative chi-square was 3.925, fit index was 0.462, and root mean square error of approximation was 0.077 which did not pass the criteria of the SEM.

So, the researcher adjusted and develop the model based on Arbuckle (2011) by deleting inappropriate variables one-by-one and then, recalculate the evaluation. The results after the adjustment showed that the chi-square probability was 0.082, the relative chi-square was 1.157, the fit index was 0.963, and the root mean square error of approximation was 0.018 passing the criteria of the model fitting with the empirical data as shown in Figure 1.

From Figure 1, the results of the readjusted model of the guidelines to retain staffs in industrial business organization divided by types of business to find the causal variables influencing the latent variables revealed that: Hypothesis 1: Working environment variable has direct influence on responsible job variable was at the statistical significance level of 0.001 with the factor loading =0.32. Hypothesis 2: The working environment variable has a direct influence on the teamwork variable was at the statistical significance level of 0.001 with the factor loading =0.76.

Hypothesis 3: Responsible job variable has a direct influence on the working benefit variable was at the statistical significance level of 0.001 with the factor loading = 0.85. Hypothesis 4: Teamwork variable has a direct influence on the responsible job variable was at the statistical significance level of 0.001 with the factor loading =0.66. Hypothesis 5: Teamwork variable has a direct influence on the organization reputation variable was at the statistical significance level of 0.001 with the factor loading = 0.61. Hypothesis 6: Working benefit variable has a direct influence on the organization reputation variable was at the statistical significance level of 0.001 with the factor loading =0.40. The statistics after the readjustment of the SEM model was shown in Figure 1 and summarized in Table 2.

Table 2 Statistical Analysis of Structural Equation Model for Guidelines to Retain Staffs in Industrial Business Organization in Standardized Estimate Mode
Variable	Estimate Regression Weight	Square Multiple Correlation (R2)	P-value
Working Environment
Responsible Job	0.32	0.85	***
Teamwork	0.76	0.58	***
Responsible Job
Working Benefit	0.85	0.72	***
Team Work
Responsible Job	0.66	0.85	***
Organization Reputation	0.61	0.90	***
Working Benefit
Organization Reputation	0.40	0.90	***
Working Environment
WE2	0.47	0.22
WE12	0.62	0.38	***
WE15	0.62	0.39	***
WE17	0.58	0.34	***
Responsible Job
RJ5	0.50	0.25
RJ7	0.59	0.35	***
RJ12	0.55	0.31	***
RJ19	0.55	0.31	***
Team Work
TW6	0.64	0.41
TW8	0.55	0.30	***
TW16	0.60	0.36	***
TW19	0.64	0.40	***
Working Benefit
WB3	0.59	0.34
WB11	0.60	0.36	***
WB19	0.53	0.29	***
WB20	0.64	0.42	***
Organization Reputation
OR4	0.61	0.37
OR7	0.39	0.15	***
OR12	0.51	0.26	***
OR20	0.52	0.27	***

Table 2 the statistics of the readjusted SEM model founded that the working environment variable consisted of 4 observable variables, i.e. safe and tidy working area (WE12) with the factor loading of 0.62, clear instruction of the use of working area (WE15) with the factor loading of 0.62, the announcement of 5S policy (WE17) with the loading factor of 0.58, and the personnel protective equipment (WE2) with the factor loading of 0.47.

Responsible job variable consisted of 4 observable variables, i.e. training employees for work replacement (RJ7) with the loading factor of 0.59, work independently under company regulations (RJ12) with the loading factor of 0.55, modern workload adjustment (RJ19) with the loading factor of 0.55, and clear work instruction (RJ5) with the loading factor of 0.50.

Teamwork variable consisted of 4 observable variables, i.e. freely opinion exchange (TW6) with the loading factor of 0.64, employing group dynamic activities to solve problem and continuously development (TW19) with the loading factor of 0.64, the growth and development of teamwork (TW16) with the loading factor of 0.60, and the management team provides the integrated skills for work improvement (TW8) with the loading factor of 0.55.

Working benefit variable consisted of 4 observable variables, i.e. social welfares for spouse, parents, and children (WB20) with the loading factor of 0.64, providing learning opportunity (WB11) with the loading factor of 0.60, provident fund (WB3) with the loading factor of 0.59, and the low cost lunch project (WB19) with the loading factor of 0.53.

Organization reputation variable consisted of 4 observable variables, i.e. the policy to support community and social responsibility activities (OR4) with the loading factor of 0.61, internal communication and clear vision (OR20) with the loading factor of 0.52, constructing alliances with stakeholders for cooperation interest (OR12) with the loading factor of 0.51, and inviting external specialists to give consultancy (OR7) with the loading factor of 0.39.

Discussion

The medium and small enterprises gave importance of the guidelines to retain staff in the industrial business organizations divided by types of business at a high level with a mean of 3.96. While the large enterprises gave the importance of the guidelines to retain staff in the industrial business organizations divided by types of business with the mean of 4.20. When considering into details, it was found that the medium and small enterprises gave the importance of the responsible job at 4.02 while the large enterprises gave importance to the work environment at 4.20. The 2 types of business showed the difference with the statistically significant level of 0.05. The large enterprises rated more importance on the model than that of the medium and small enterprises because the large enterprises have a lot of workers, so, the turnover rate will highly affect the business especially on the recruitment and training cost. Thus, large enterprises gave more importance to staff retention to increase the business competitive edge. This was in line with the work by Hernández et al. (2013) stating that the problem of enterprises was on recruitment cost and training cost including skill development which requires both time and money in management.

The most important variable in retaining staffs is the working environment which is consistent with the research by Anastasios & Chatzoglou (2019) finding that working environment and management support have the highest impact (direct and indirect) on the staff operation while the adjustment ability and internal motivation have direct impact on the staff operation and organization efficiency. The most important variable is overtime payment with a mean of 4.41 because good working benefits can attract staff. This is congruent with the work by Fang (2011) finding that motivation factors are good benefits, good social welfare, good bonus system, the opportunity to express capability, and recognition. Among these, the most important motivation is the good payment to retain staff in the organization.

The highest relationship of the variables in the SEM model was the 5S policy announcement (WE17) and the measurement in getting rid of pest (WE13) with the statistical significance level of 0.001 and correlation value of 0.434. This can be explained that the working environment influences directly on the work satisfaction of the staff. So, it is important that the management team must regularly develop a working environment. This supports the research by Tanyarat (2018) stating that the working environment of the organization must be clean, tidy, good ventilation, enough lighting, and safety in operation with accident precaution.

The responsible job variable has a direct influence on the working benefit variable with the highest loading factor of 0.85 and a statistical significance level of 0.001. Appropriate work assignment has a high relationship with working benefit. Socializing with colleagues, work life balance, learning of best practices can attract the staff with the organization. This is in line with the study by Osman (2013) stating that high proficient operation and social support will result in work embedded and loyalty with the organization.

Conclusion

Guidelines to retain staff in the industrial business organizations consist of 5 variables which are very important for both large enterprises and medium and small enterprises with the order as follows.

Working environment and happiness in working will create happy staff that are loyal to the organization and can sustainably payback to the organization. Good working atmosphere includes modern and good facilities, well decorated offices, safety and convenience for working.

Responsible job: The job description must be clear and suitable for the staff. This can increase interest, work value, and make the staffs realize their importance leading to organization binding. They tend to develop themselves and dedicate to themselves the organization.

Teamwork is necessary; so, the management team must create a working environment with a safe and happy atmosphere. The staff should have a good attitude on teamwork and share their opinions freely. The management team should encourage teamwork with ethics and good governance.

Organization reputation: The organization can be successful and accepted by both inside and outside the country through good image, clear identity such as logo, image, attitude, values, and trust to gain recognition and acceptance by external resulting in staffs’ pride to be a member of the organization as long as possible.

Working benefits and rewards should be at the same standard when compared with other organizations at the same size. Benefits management is an important strategy to attract qualified staff to stay with the organization.

Suggestions for Further Study

1. The results of this study should be applied to conduct an in depth study of each variable with the samples from the private and government sectors.

2. There should be a study on other variables that affect staff retention in both the private and government sectors.

3. There should be a study in a wider scope or higher number of companies for more varieties to increase research efficiency.

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