Research Journal of Applied Sciences, Engineering and Technology 4(21): 4438-4442, 2012
ISSN: 2040-7467
© Maxwell Scientific Organization, 2012
Submitted: May 01, 2012
Accepted: June 15, 2012
Published: November 01, 2012
Research on Turnover Intention and Countermeasure of Key Employees in
Xuzhou Coal Mining Groups
Gao Lehong and Dong Hongguang
School of Economics and Management, Anhui University of Science and Technology,
Huainan 232007, China
Abstract: In this study, we have a research of the turnover intention and countermeasure of key employees
in xuzhou coal mining groups. Linear Structural Equation model (LISREL) is used for the variable path
analysis and a job satisfaction research has been done to reveale which variable is affect the key employee
turnover entention significantly. Statistics show that the factors conversion cost, job satisfaction,
compensation, opportunity, dull work, the colleague support degree, friends support degree have a
significant influence on turnover intention of key employees. The staffs are dissatisfied with salary,
welfare, promotion, communication in enterprise. The employee, who work in administer department, with
high education background and no more than 5 year’s work experience and lower in administer level, no
more than 2000 yuan income, have a stronger turnover intention. According to the results of the survey,
the enterprise make a relevant management measures and achieved good effectiveness on prevent the key
employees from turnovering.
Keywords: Countermeasure of management, job satisfaction, key employee, LISREL, SPSS
staff. Price (1999) study the the special issue on
employee turnover. Spector (1997) study the job
satisfaction: application, assessment. Farh et al. (1998)
study the influence of relational demography and
guanxi: the Chinese case.
The famous principle of “80/20” on Management
Science indicated that the 80% profit of an enterprise is
mostly created by 20% of its staffs who are exactly
enterprise's key staffs. There is a state-owned coal
enterprise group which has taken the coal mining and
sale as its principal work, whose key staff turnovered
seriously in the recent 5 years; losing key staffs of more
than 700 people. These have made the famine of talent
in the enterprise’s some basic department. “The fault”
and “the flow blocks” appearing in the special talents
seriously influences the realization of the enterprise’s
goals. Therefore, it’s practically significant to
investigate the Job Satisfaction of the key staffs, to
analyze the reasons why the key staffs turnover and to
take the countermeasures to keep the key staff.
This study gives a research of the turnover
intention and countermeasure of key employees in
xuzhou coal mining groups. Linear Structural Equation
model (LISREL) is used for the variable path analysis
and a job satisfaction research has been done to reveale
which variable is affect the key employee turnover
entention significantly. Statistics show that the factors
conversion cost, job satisfaction, compensation,
INTRODUCTION
Xuzhou Coal Mining Group Co., Ltd. is
restructured from Xuzhou Mining Bureau and the
headquarters is located in Xuzhou, Jiangsu Province.
There are 6 corporate business units, 29 wholly-owned
(controlled) subsidiaries and 25 branches, its total assets
is 11.5 billion yuan and its annual output is around 15
million tons of coal. In the case of the gradual depletion
of resources in Xuzhou, Xuzhou Coal Mining
companies rely on strong human resources, occupy the
western region of China coal resources and implement
remote mining operation. At the same time, it actively
implements the diversification strategy and transformed
successfully.
By the end of 2010, the enterprise has 70,362
employees. Thirteen thousand and two hundred of them
are technical secondary school background or above,
accounting for 18.8% of the total employees. Ten
thousand four hundred and twenty two of them are
professional and technical personnel, accounting for
14.8% of the total employees. The number of cadres in
the enterprise is 11,344, including 11 leaders of the
Group level, 322 leaders of mine company level and
3479 leaders of section-level, 7285 ordinary cadres.
1.47 billion yuan has been to pay for labor cost the
employees per year in Xuzhou Coal Mining Group. Sun
(2003) have a research of the art of management for key
Corresponding Author: Gao Lehong, School of Economics and Management, Anhui University of Science and Technology,
Huainan 232007, China
4438
Res. J. Appl. Sci. Eng. Technol., 4(21): 4438-4442, 2012
opportunity, dull work, the colleague support degree,
friends support degree have a significant influence on
turnover intention of key employees. The staffs are
dissatisfied with salary, welfare, promotion,
communication in enterprise. The employee, who work
in administer department, with high education
background and no more than 5 year’s work
experience and lower in administer level, no more than
2000 yuan income, have a stronger turnover intention.
According to the results of the survey, the enterprise
make a relevant management measures and achieved
good effectiveness on prevent the key employees from
turnovering.
RESEARCH METHOD AND DESIGN
Research methods: First, we can qualitative analysis
key staff’s turnover intention through interviews with
the enterprise's leader, human resources managers and
key staffs; Second, design the model of key staffs
turnover intention combining previous research theory;
Third, find out which factor is the key factors in
influencing the turnover intention of key staffs; Finally
we can make targeted management measures to stay
enterprise key staffs.
Based on the theory of Price-Mueller’s (2000)
employee turnover model and IT enterprise employees
turnover model established by ZhangMian (Chinese),
with the actual of Xuzhou Coal Mining Group, we
build the turnover intention model of Xuzhou Coal
Mining Group enterprise.
Research design: To measure the turnover intention of
key staff, we use the measure scale found by Farh et al.
(1998) which was used in Hong Kong and to be thought
with high internal uniformity and retests realibility.
This measure scale including four projects: “I thought
frequently resigns from the present job”; “I will leave
×× the company in the next year and seek for a new
job”; “I plan to work for this company for a long time”;
“If I continue to stay in ×× the company, my prospect
cannot be good”. The reply uses the Likert’s five level
of measures criterion ,and the third project uses records
points reverse, the turnover intention scoring equal to
the average of the four project value and more high the
scores, more stronger the turnover intention.
The coal mining group company we researched
including 1830 key staffs. The guarantee investigation
accuracy, our research selected 500 key staffs as sample
to investigation. Considering the coal mines in
difference serce year and the key staffs stay in
difference management level, our investigation uses the
lamination and random sampling method.
Five hundred questionnaires distributed in this
investigation and 439 have been taken back and 88
questionnaires eliminated which answered in
unintegrity or unearnestly way, so we obtains 351
effective questionnaire, the effective returns-ratio is
70.2%. In 351 effective personnel, male 323, female 28;
Married 337, unmarried 14; 8 below 25 years old,
25 25-30 year old, 74 31-35 year old, 115 36-40 year
old, above 41 years old 129; people in research level
13, the university graduates 115 people, the vocational
school graduated 128, the high school (specialized
middle school) graduates 87, junior middle school and
below 8; high management level 2 people, management
level 18 people, branch level 175 people, common
cadre (chief technical people) 101, chief specialized in
doing level 55 people.
STATISTICAL DATA ANALYSING
Linear Structural Equation model (LISREL) is
used for the variable path analysis and SPSS 11.5 is
used for statistical analysis. As foundation, we do the
validity analysis first, then we do the realiablity
analysis, the measure scale’s alpha coefficient is 0.8069
and all the alpha coefficient of the depart measure are in
accepted scope and the results show that the measure
scale we used in research has a very good reliability.
Path analysis: Through the t test, we can conclude that
the factors with a significant influence on turnover
intention of key employees in Xuzhou Coal Mining
Group according to by large to small order are:
conversion cost, job satisfaction, compensation,
opportunity, dull work, the colleague support degree,
friends support degree. Among all of them, the dull
work and colleagues support degree are positive
correlation with the turnover intention, the rest of the
variables is negative correlation with the turnover
intention. The variable of conversion cost is the greatest
impact on turunover intention. Specific conditions such
as Table 1.
Correlation analysis: The Correlation statistical
analysis show that the relevant coefficient r is -0.659
between the job satisfaction and turnover intention of
key staffs and the significance level Sig = 0.000. The
correlation coefficient examination indicated that, there
is a remarkable correlational dependence between the
enterprise key staff's job satisfaction and turnover
intention. The relevant analysis conclusion has
confirmed the organization behavior theory of job
satisfaction and the turnover rates of key staffs.
4439 Res. J. Appl. Sci. Eng. Technol., 4(21): 4438-4442, 2012
Table 1: Influence coefficients of variables with turnover intention
Variable
Influence coefficients
Endogenous variable
Job satisfaction
-0.280
Organizational commitment
-0.057
Environment variable
Opportunity
0.123
Relatives responsibility
0.012
Conversion cost
-0.584
Individual variable
Work participation
-0.005
Positive motion
-0.051
Negative emotions
0.067
Relation
0.051
Structured variables
Work autonomy
-0.030
Fair distribution
0.015
Process fairness
-0.017
Workload
0.059
Compensation
0.120
Chances of promotion
-0.058
Dull work
0.106
Boss support degree
-0.043
Colleague support degree
0.124
Spouse support degree
-0.025
Friends support degree
-0.079
Inspection result
-4.215
-0.848
√
╳
1.962
0.255
-5.425
√
╳
√
-0.120
-1.385
1.678
1.558
╳
╳
╳
╳
-0.824
0.298
-0.255
1.472
-2.894
-0.865
2.437
-0.986
2.214
-0.785
-1.965
╳
╳
╳
╳
√
╳
√
╳
√
╳
√
70
Mean analysis: The mean analysis in whole scale
indicated that the mean of the key staff's job satisfaction
is 3.27, shown that the job satisfaction level of key staff
in our research company is low.
The level of job satisfaction in factor mean analysis
indicated that the key staffs are dissatisfied with salary
(average value is 2.07), welfare (average value is 2.27),
promotion (2.86) and communication (2.92), those four
aspects mean are all to be lower than 3.
The turnover intention analysis indicate that the
key staff in stability only has 33.3%, show a
symmetrical distribution tendency revolves around the
“not to be indefinite”, explained that the key staffs is
unstable in turnover intention, many key staffs stay on
the edge turnover. Specific conditions such as Fig. 1.
Difference significance analysis: This survey analysis
the variance of key staffs on job satisfaction and the
professional life quality with the factors of department,
sex, age, education background, post, length of service,
average income. Of seven areas to analyze the
differences of the core staff in all aspects of job
satisfaction and professional quality of life.
The non-parameter examination is used in analyzing the
difference significance analysis, Mann-Whitney U test
methods is used in gender analyzing and KruskalWallis test methods used in other factors analyzing.
Difference analysis on department indicated that
key staff who work in the management department in
t-value
60
Frequency
50
40
30
20
10
1. 2
1.
50 0 000 0
1.
1 .7
5 0 0 5 00 0
2 .0
2 .2
500 00 0
2.
2. 7
50 0 5 0 0 0
3 . 2 3 .0 0
5 00
00
3
3 .2
.
70 0 5 00 0
4 . 2 4 .0 0
00
50 0
4 .7 4 . 5 0
5 00
00
5 .0
00 0
0
Fig. 1: The key staffs turnover intention histogram
basic unit had a stronger turnover intention. Specific
conditions such as Fig. 2.
Difference analysis on diploma indicated that key
staff who have a higher diploma, are stronger in
turnover intention. Specific conditions such as Fig. 3.
Difference analysis on duty indicated that key staff who
have a lower duty, are stronger in turnover intention.
Specific conditions such as Fig. 4.
Difference analysis on work age indicated that key
staff who have lower work age, are stronger in turnover
intention Specific conditions such as Fig. 5.
4440 Res. J. Appl. Sci. Eng. Technol., 4(21): 4438-4442, 2012
3.4
Mean of turnover intention
3.2
3.1
3.0
2.9
2.8
3.1
3.0
2.9
2.8
2.7
Mean of turnover intention
21
yea -25
rs
Mo
re
26 tha
yea n
rs
3.2
3.6
3.4
3.2
3.0
2.8
2.6
3.0
2.8
2.6
2.4
2.2
2.4
Le
10 ss th
00
a
yu n
an
100
1 -1
yua 500
n
15
012
yu 00 0
an
20
01
-3
yu 000
an
30
014
yu 000
an
Mo
4 0 r e th
00
a
yua n
n
Mean of turnover intention
16
yea -20
rs
Le
s
5 y s th a n
ear
s
M
dep an a
ar g e
in tmen ment
bas t s
t
ic
u ni aff
t
S ta
com ff at
h ea p an the
d q y ’s
u ar
te r
Fig. 5: Mean of key staff’s turnover intention on different
work age
Fig. 2: Mean of key staff’s turnover intention on different
departments
Ma
st
or e r de
abo g re
ve e
Ju
sch nio r
oo h i g
ld
e gr h
ee
Se n
s c h i or
oo l hi g
d eg h
ree
Co
lla
ge
de g
r ee
Ba
che
lor
de g
ree
2.2
Fig. 6: Mean of key staff’s turnover intention on different
salary
Fig. 3: Mean of key staff’s turnover intention on different
diploma
3.4
Mean of turnover intention
11
yea -15
rs
2.6
Au
xi
sta liary
ff
W
pro orker
du
c t io a t th e
nl
in e
2.7
3.2
6-1
y ea 0
rs
Mean of turnover intentoin
3.3
Difference analysis on salary indicated that key
staff who have lower salary, are stronger in turnover
intention. Specific conditions such as Fig. 6.
3.2
COUNTERMEASURE ON KEEP
THE KEY STAFF
3.0
2.8
2.6
2.4
2.2
2.0
r
Wo
r ke
ca d
re
Ge
ner
al
De
p ar
lev tm en
el
t
ne
l ev
el
Mi
Bu
r
l ev eau
el
1.8
Fig. 4: Mean of key staff’s turnover intention on different
duty
Pay more attention to the staffs who have a stronger
turnover intention: First, looking from the department,
we should strengthen management to the key staff who
work in coal mine institution; Second, Looking from
the diploma that we should strengthen management to
key staff who had a higher diploma; Third, looking
from the duty that, we should strengthen management
to the key staffs who had a lower duty; Fourth, looking
from the work age, we should pay more attention to the
key staff whose work age below 5 year olds; and sixth,
looking from the salary, we should strengthen
management to the key staffs who had a lower salary.
4441 Res. J. Appl. Sci. Eng. Technol., 4(21): 4438-4442, 2012
Enhance the key staff’s exit barriers: First, Xuzhou
Coal Mining Group can use the enterprise annuity.
Begin with the trial implementation of Enterprise
Annuity method since 2004 on May 1 in China and
with the enterprise benefit turn good today, implement
enterprise pension system to keep key staff is feasible
and effective. Second, signing a high compensation
contracts, if the key employee turnover, he/she must be
Compensate high charges to company, high charges can
withdrawal some key staffs turnover intention; Third,
the enterprise can keep key staffs with feelings, if a key
employee trunover, he would lost a lots of friends, this
can be a exit barriers for some key staffs in deciding
leaves the enterprise.
Provides a competitive salary: The statistical analysis
indicated that, there are 73.5% key staff whose income
are lower than 1500 Yuan, there are 87.7% key staff
whose salary is lower than 2000 Yuan. It shows that the
key staff‘s salary level are too low, in order to keep the
key staffs we should provides a competitive salary to
key staff. Here “competitive” means the compensation
we provide must be competitive to our competitor and
make the key staff feel fair in company. The
compensation have competitiveness, requesting the
salary equal or a bit higher than local region income
level or the vocational average income level. To make
the key staff feel fair requests the key staff's salary must
be connected with their’ performance, individual skills.
Different performance have a different compensation
and different individual skills have a different
compensation.
Establishes a wide promotional programming for
the staff: To keep the key staff, we advice that the
company should establish a wide promotional
programming for key staff. Including administrative
line, the technical line and the skill line”. It not only
requests the enterprise to establish a perfect technical
rank and the management hierarchical system, but also
requests the enterprise put all the key staff in this
system by the reasonable standard, because the rank
connected with the salary. We must pay attention to
compensation comparable in identical kind of key staff,
but also we must pay attention to the compensation
comparable in transverse key staff in management
class, the technology class and the skill class. Only then
we can increase their promotion chance, enhance the key staff's loyalty, keeping the key staff from turnover.
Do well in communication with key staff: To keep the
key staff, we should pay more attention on internal
communication with key staff .the leader should
communication with the key staff in some kind of way
in manage decision, in production operations, in
developing stratagem drawing and everything involving
the benefit of the key staff. Only by this can it
strengthen the communication in company, promote the
company decision-making democratization, promote
the company management democratization, promote the
company supervise democratization and promote the
company developing well, reduce the turnover intention
and keep the key staff in our company.
CONCLUSION
In this study, we have a research of the turnover
intention and countermeasure of key employees in
xuzhou coal mining groups. Linear Structural Equation
model (LISREL) is used for the variable path analysis
and a job satisfaction research has been done to reveale
which variable is affect the key employee turnover
entention significantly. Statistics show that the factors
conversion cost, job satisfaction, compensation,
opportunity, dull work, the colleague support degree,
friends support degree have a significant influence on
turnover intention of key employees. The staffs are
dissatisfied with salary, welfare, promotion,
communication in enterprise. The employee, who work
in administer department ,with high education
background and no more than 5 year’s work
experience and lower in administer level, no more than
2000 yuan income, have a stronger turnover intention.
According to the results of the survey, the enterprise
make a relevant management measures and achieved
good effectiveness on prevent the key employees from
turnovering.
REFERENCES
Farh, J.L., A.S. Tsui and K.R. Xin, 1998. The influence
of relational demography and guanxi: The Chinese
case. Organisat. Sci., 9(2): 1-18.
Price, J.L., 1999. Introduction to the special issue on
employee turnover. Hum. Resour. Manage. Rev.,
9(4): 387-396.
Sun, J., 2003. The Art of Management for Key Staff.
Company Management Press, Beijing.
Spector, P.E., 1997. Job Satisfaction: Application,
Assessment, Causes and Consequences. Sage
Publications, Thousand Oaks, pp: 96, ISBN:
0761989234.
4442