Constructing factors related to worker retention Ing-Chung Huang Department of Asia-Pacific Industrial and Business Management, National University of Kaohsiung, Taiwan, Republic of China Hao-Chieh Lin Department of Labor Relations, National Chung Cheng University, Min-Hsiung Chia-Yi County, Taiwan, Republic of China, and Chih-Hsun Chuang Department of Accounting Information, Da-Yeh University, Chang-Hua, Taiwan, Republic of China Abstract Purpose – The purpose of this paper is to examine the effect of individual-based, firm-based, and market factors on job retention, basing its hypotheses on human capital theory and signaling models. Design/methodology/approach – By collecting secondary data on 180 employees who left their jobs at one firm and interviewing human resource managers and those who left for other jobs, factors determining the decision to stay with a firm for a certain period were investigated. Hierarchical regression analyses were performed to test hypothesized relationships. Findings – Marriage, gender, honored employee status, relative pay (both inter-firm and intra-firm wages), speed of promotion, and economic cycles had a significant impact on how long the employees retained their jobs, but education level and individual performance did not. Firm-specific human capital, wages, and signaling effects were proved to affect job retention. Firm-based factors had a significantly more pronounced impact on the ultimate decision than individual-based factors. Research limitations/implications – This study examines worker mobility from the perspective of actual length of job retention, complementing existing streams of research based on intention to leave. Because a few unexamined psychological and sociological factors may confound the findings and because only examine one firm is examined, care should be used when generalizing the findings to other firms. Practical implications – The study provides evidence useful in the creation of human resource management practices aimed at retaining competent employees. Originality/value – This study’s research questions and methods are new to the line of turnover studies, making it a starting point for further lines of exploration. Keywords Retention, Labour mobility, Employee turnover, Human capital Paper type Research paper Introduction Because of downsizing (Hirsch, 1987; Cameron et al., 1993) and hiring contingent workers (Pfeffer and Baron, 1988; Pfeffer, 1994), long-term organizational commitments are largely disappearing (Rousseau, 1996; Rousseau and Libuser, The current issue and full text archive of this journal is available at www.emeraldinsight.com/0143-7720.htm An earlier version of this article was presented at the Career Division of the Academy of Management 2003 Annual Meeting, Seattle (August 1-6, 2003). The authors would like to thank Ming-Jer Chen, Mary Summers, and Chih-Ting Shih for their insightful comments on an earlier draft of this paper. Constructing factors related to worker retention 491 Received 12 December 2003 Revised 10 May 2005 Accepted 26 November 2005 International Journal of Manpower Vol. 27 No. 5, 2006 pp. 491-508 q Emerald Group Publishing Limited 0143-7720 DOI 10.1108/01437720610683976