The effect of fairness of performance appraisal and career growth on turnover intention

Abstract

Success of an organization is generally based on the efficiency of its human resource. Organizations consider their employees as an important tool for survival in this globalized era. Hence, retaining the best employees is of high concern for most organizations and this issue has become a significant focus of attention for many researchers. For this reason, there is the necessity to investigate the factors which influence the employee turnover intention behavior in the organization, specifically, to determine the effect of human resource development factors (such as salary, training and development, fairness of performance appraisal and career growth including remuneration, growth, promotion speed, professional ability development and career goal progress), on turnover intention. A cross sectional, survey data study was undertaken to analyze the relationships in a sample of 150 full-time faculty members employed in different private universities of Pakistan. Partial Least Square based path modeling was applied to test the hypothesized relationship among the study variables. The findings of this paper revealed that salary and fairness of performance appraisal have a significant negative relationship with turnover intention except training & development. Besides, it was found that out of four dimensions of career growth, only two dimensions, namely promotion speed and remuneration growth, have strong influence on turnover intention. The findings of this paper would be discussed in light of certain limitations. First, in this study researchers decided to include the factors which are related to turnover intention. Secondly, this study has been taken only in one country (Pakistan) therefore, the result may not be applicable in another Asian countries. The study may contribute to the body of knowledge on both human resource and career management. Based on the findings, a number of practical recommendations for organizations, leaders and employees have been provided to guide them to retain employees successfully.

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