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Does Perceived Support in Employee Development Affect Personnel Turnover?

Koster Fleur, Andries de Grip () and Didier Fouarge ()

No 8, ROA Research Memorandum from Maastricht University, Research Centre for Education and the Labour Market (ROA)

Abstract: Th is paper focuses on the question whether it is benefi cial for fi rms to invest inthe general skills of their workforce or that these training investments merelyencourage personnel turnover. We examine two contrary theoretical perspectives onhow investments in employee development are related to their turnover behaviour.Estimation results derived from a sample of 2,833 Dutch pharmacy assistants showthat participation in general training does not induce the intention of assistantsto quit, as predicted by human capital theory. We fi nd that a fi rm’s investmentsin general training, signifi cantly contribute to the perceived support in employeedevelopment (PSED) among their workforce. Our results also show that PSED isnegatively related to the intention of employees to quit the fi rm. Th is eff ect is to alarge extent mediated by the job satisfaction of pharmacy assistants. Our fi ndingssupport the importance of social exchange theory in explaining turnover behaviour asa consequence of personnel development practices. It should be noted, however, thatPSED only diminishes the intention to quit for other occupations.

Keywords: education, training and the labour market (search for similar items in EconPapers)
Date: 2009
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