8/21/2007
Employee Retention -- Study Shows Company Size Does Matter
by Sarah Hays, Graduate Assistant, UALR Lead Center
In a recent study funded by the Small Business Administration’s Office of Advocacy, researchers explored the relationship between employee turnover and compensation as it relates to firm size.
Based on data from the Bureau of Labor Statistics’ National Longitudinal Survey of Youth (NLSY), this study sought to determine if “employee turnover differences between small and large firms are the result of differences in wages and benefits or of some form of self-selection where employees of small businesses are simply more prone to high turnover rates than those in larger firms.”
This research suggests that larger firms that provide employee benefits improve employee retention significantly. Additionally, the study shows that employee earnings in larger firms, particularly for manufacturing and service occupations are higher than those in smaller establishments. Essentially, all other factors being equal, employees of larger firms have longer job tenures that those who work for small businesses.
A full copy of the report is available at http://www.sba.gov/advo/research/rs308tot.pdf and the research summary can be found at http://www.sba.gov/advo/research/rs308.pdf.
Recent | 2007 | 2006 | 2005 | 2004 | 2003
Subscribe right now to our FREE
bi-monthly E-News service!
You will receive articles two full weeks before they appear on the Arkansas SBDC web site!
