News & Events

A Surefire Way Companies Risk Losing Their Employees

Companies can offer employees all the training they need, but if you don't have the resources to provide career advancement, the training is only going to heighten their skills, therefore, making them more attractive to other firms.

In a study published in the Journal of Applied Psychology, researchers surveyed 246 employee and supervisor pairs at a large manufacturing company about their loyalty to the firm and whether they believed there was sufficient future career opportunities there that met their goals.

The researchers found that despite participating in training programs, workers were only loyal to the company if they saw "attractive advancement opportunities." Otherwise, their "new skills made them more attractive to other firms."

The study says:

"We then propose that perceived career opportunity within the organization moderates the relationship between organizational support for development and employee performance and turnover. Specifically, development support positively related to job performance, but only when perceived career opportunity within the organization was high."

And it's not only about "promotions and raises," but "could be a lateral move or new assignments,” co-author Maria Kraimer, a University of Iowa associate professor, said in the study.

The researchers are from the University of Iowa, University of Illinois-Chicago, and Arizona State University.


Return to top of page