Organizational Culture and Employee Retention

Organizational culture has emerged as one of the dominant themes in management research during the past decade. An empirical study examined whether particular cultural values help or hinder organizations in retaining their most productive employees. The retention rates of 904 college graduates hired...

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Bibliographic Details
Published in:Academy of Management journal 1992-12, Vol.35 (5), p.1036-1056
Main Author: Sheridan, John E
Format: Article
Language:English
Subjects:
Accounting firms
Audit departments
Behavior
Corporate culture
Cultural values
Culture
Employee retention
Employee turnover
Employees
Gender
Human resource management
Hypotheses
Influence
Investigations
Job enrichment
Job performance
Labor market
Marital status
Mathematical models
New employees
Organizations
Performance appraisal
Professionals
Questionnaires
Studies
Values
Variance analysis
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Summary:Organizational culture has emerged as one of the dominant themes in management research during the past decade. An empirical study examined whether particular cultural values help or hinder organizations in retaining their most productive employees. The retention rates of 904 college graduates hired in 6 public accounting firms over a 6-year period were analyzed. Three firms were characterized as having a culture that emphasized the interpersonal relationship values of team orientation and respect for people. Two other companies were characterized as having a culture that emphasized the work task values of detail and stability. Professionals hired in the companies that emphasized the interpersonal relationhip values stayed 14 months longer (45 months) than those hired in the firms emphasizing the work task values (31 months). This large difference in voluntary survival rates has important consequences for organizational effectiveness.
ISSN:0001-4273
1948-0989
DOI:10.5465/256539