טכניון מכון טכנולוגי לישראל
הטכניון מכון טכנולוגי לישראל - בית הספר ללימודי מוסמכים  
M.Sc Thesis
M.Sc StudentShaked Liat
SubjectEmployee Turnover in Hi-Tech Organizations: The Impact
of Social Rewards
DepartmentDepartment of Industrial Engineering and Management
Supervisor Professor Alan Kirschenbaum


Abstract

The aim of this research is to examine employee turnover. We hypothesis that social incentives provided to employees are a central factor determining their organizational turnover decisions. In addition to this, the research examines the influence of more traditional explanatory variables such as perception of fairness, job satisfaction, organizational commitment, performance level, grounds for leaving, advantage of new opportunities, and demographic factors.


The research was conducted in a large Hi-Tech type organization. The collection of the   data took place through a distribution of questionnaires to a representative sample of the employees.112 out of the total 225 questionnaires disseminated were returned.  In an attempt to characterize the type of incentives an organization chooses to select when rewarding its staff, we employed a  Rotated Varimax Component Matrix factor analysis. The results showed three basic types of incentives:  environmental, material and social incentives. A logistic regression model was used to examine the research hypotheses and to analyze the data.


From the logistic regression analysis it emerges that greater use of social incentives reduce employees' turnover. In the same way the study found a positive influence of tenure on the rate of turnover. Finally it was also found that employees with higher education are more inclined to leave the organization. No clear support was found between the other variables and employees' turnover. The major conclusion suggests that social rewards have an impact on turnover decisions and that they should be included in explanatory models of turnover.